IGO Interactive Annual Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 Other comprehensive loss for the period, net of tax (95) (1,054) Total comprehensive income for the period 173,259 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 173,354 93,630 Dividends paid (82,712) (23,619) Retained earnings/(accumulated losses) at the end of the financial year 83,315 (7,327) (b) Consolidated balance sheet Set out below is a consolidated balance sheet as at 30 June 2020 of the closed group consisting of IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd. IGO Limited 58 Notes to the consolidated financial statements 30 June 2020 (continued) 29 Deed of cross guarantee (continued) (a) lidated statement of profit or loss and other comprehensive income (continued) 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 173,259 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 173,354 93,630 Dividends paid (82,712) (23,619) Retained earnings/(accumulated losses) at the end of the financial year 83,315 (7,327) (b) Consolidated balance sheet Set out below is a consolidated balance sheet as at 30 June 2020 of the closed group consisting of IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd. IGO Limited 58 Notes to the consolidated financial statements 30 June 2020 (continued) 29 Deed of cross guarantee (continued) (b) Consolidated bal ce sheet (con inued) 2020 $'000 2019 $'000 ASSETS Current assets Cash and cas equivalents 502,842 346,451 Trade receivables 65,857 45,486 Inventories 26,304 25,889 Financial assets at fair value through profit or loss 105,065 26,732 Derivative financial instruments 64 484 Total current assets 700,132 445,042 Non-current assets eceivables 4 14,998 Property, plant and equipment 28,657 23,088 Right-of-use assets 28,386 - Mine properties 960,352 1,116,014 Exploration and evaluati n expenditure 36,338 36,338 Deferred tax assets 111,113 172,694 Derivative financial instruments 284 - Investments in controlled entities 35,195 35,195 Investments in joint ventures 429,706 384,364 Total non-current assets 1,630,035 1,782,691 TOTAL ASSETS 2,330,167 2,227,733 LIABILITIES Current liabilities Trade and other payables 92,407 96,891 Borrowings 56,937 56,226 Lease liabilities 4,869 - Provisions 7,058 5,180 Total current liabilities 161,271 158,297 Non-current liabilities Borrowings - 28,363 Lease liabilities 24,033 - Provisions 40,273 39,018 Deferred tax liabilities 106,490 97,761 Total non-current liabilities 170,796 165,142 TOTAL LIABILITIES 332,067 323,439 NET ASSETS 1,998,100 1,904,294 EQUITY Contributed equity 1,897,126 1,895,855 Reserves 18,889 15,766 Retained earnings/(accumulated losses) 82,085 (7,327) TOTAL EQUITY 1,998,100 1,904,294 IGO Limited 59 Notes to the consolidated financial statements 30 June 2020 (continued) 30 Remuneration of auditors During the year the following fees were paid or payable for services provided by the auditor of the parent entity, IGO Limited, and its related practices: 2020 $ 2019 $ Amounts received or due and receivable by BDO Audit (WA) Pty Ltd for: Audit and review of financial statements 177,500 168,500 Other assurance services 8,000 8,000 185,500 176,500 Amounts received or due and receivable by an associate of the auditor of the Group for: Tax services 5,000 5,000 Corporate advisory services 18,000 - Other compliance and advisory services 12,500 7,000 35,500 12,000 Total services provided by BDO 221,000 188,500 31 Summary of significant accounting policies (a) New and amended standards and interpretations adopted by the Group A number of new or amended standards became applicable for the current reporting period resulting in a change to the Group's accounting policies. Adjustments were made as a result of adopting the following standard: • AASB 16 Leases The impact of the adoption of this standard and the new accounting policies are disclosed below. The Group has not elected to early adopt any new standards or amendments during the current financial year. (i) AASB 16 Leases The Group has adopted AASB 16 Leases with effect from 1 July 2019 using the modified retrospective approach, but has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 July 2019. The new accounting policies are disclosed in note 14. Adjustments recognised on adoption of AASB 16 On adoption of AASB 16, the Group recognised lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of AASB 117 Leases . These liabilities were measured at the present value of remaining lease payments, discounted using an arm's length asset finance facility borrowing rate as of 1 July 2019. The weighted average incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 4.3%. IGO Limited 60 124 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 125