IGO Interactive Annual Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 Notes to the consolidated financial statements 30 June 2020 (continued) 28 Parent entity financial information (a) Summary financial information The following information relates to the parent entity, IGO Limited, at 30 June. 2020 $'000 2019 $'000 Balance sheet Current assets 583,089 432,362 Non-current assets 1,552,565 1,550,426 Total assets 2,135,654 1,982,788 Current liabilities 86,725 80,620 Non-current liabilities 88,307 98,663 Total liabilities 175,032 179,283 Net assets 1,960,622 1,803,505 (1,960,622) (1,803,505) Equity Contributed equity 1,897,126 1,895,855 Reserves Hedging reserve 44 136 Share-based payments reserve 18,645 15,427 Retained earnings/(accumulated losses) 44,807 (107,913) Total equity 1,960,622 1,803,505 2020 $'000 2019 $'000 Profit for the year 235,432 85,055 Other comprehensive income for the period (92) (329) Total comprehensive income for the year 235,340 84,726 (b) Guarantees entered into by the parent entity The parent entity has no unsecured guarantees in respect of finance leases of subsidiaries (2019: $nil). There are cross guarantees given by IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd as described in note 29. No deficiencies of assets exist in any of these companies. (c) Contingent liabilities of the parent entity The parent entity did not have any contingent liabilities as at 30 June 2020 or 30 June 2019. (d) Contractual commitments for the acquisition of property, plant or equipment The parent entity did not have any outstanding contractual commitments for the acquisition of property, plant and equipment at 30 June 2020 or 30 June 2019. IGO Limited 50 Notes to the consolidated financial statements 30 June 2020 (continued) 29 Deed of cross guarantee IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd are parties to a deed of cross guarantee under which each company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and directors' report under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (as amended) issued by the Australian Securities and Investments Commission. Independence Long Pty Ltd was also a party to the deed of cross guarantee until its divestment on 31 May 2019. (a) Consolidated statement of profit or loss and other comprehensive income and summary of movements in consolidated retained earnings The above companies represent a 'closed group' for the purposes of the Legislative Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by IGO Limited, they also represent the 'extended closed group'. Set out below is a consolidated statement of profit or loss and other comprehensive income and a summary of movements in consolidated retained earnings for the year ended 30 June 2020 of the closed group consisting of IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd. The results of Independence Long Pty Ltd are included until the date of its divestment on 31 May 2019. Consolidated statement of profit or loss and other comprehensive income 2020 $'000 2019 $'000 Revenue from continuing operations 888,930 784,509 Other income 3,492 8,377 Mining, development and processing costs (249,486) (262,851) Employee benefits expense (62,511) (52,205) Share-based payments expense (4,489) (3,123) Fair value movement of financial investments 32,812 (5,796) Depreciation and amortisation expense (223,905) (204,531) Exploration and growth expense (40,319) (30,441) Royalty expense (35,075) (30,506) Shipping and wharfage expense (17,624) (18,340) Borrowing and finance costs (5,072) (6,237) Impairment and forgiveness of loans to subsidiaries (20,425) (21,168) Other expenses (14,463) (11,264) Profit before income tax 251,865 146,424 Income tax expense (79,741) (52,794) Profit after income tax for the period 172,124 93,630 Other comprehensive income Items that may be reclassified to profit or loss Effective portion of changes in fair value of cash flow hedges, net of tax (95) (1,054) Other comprehensive loss for the period, net of tax (95) (1,054) Total comprehensive income for the period 172,029 92,576 Summary of movements in consolidated retained earnings/(accumulated losses) 2020 $'000 2019 $'000 Accumulated losses at the beginning of the financial year (7,327) (77,338) Profit for the year 172,124 93,630 Dividends paid (82,712) (23,619) Retained earnings/(accumulated losses) at the end of the financial year 82,085 (7,327) 122 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 123