IGO Interactive Annual Report 2020

Tropicana Operation GOLD IGO 30% (ANGLOGOLD ASHANTI 70% AND OPERATOR) Location 330km northeast of Kalgoorlie, Western Australia Product Gold (Au) Mining Open pit mining utilising Macmahon as primary contractor, from four contiguous open pits, Tropicana, Boston Shaker, Havana and Havana South. The Boston Shaker Underground Mine is expected to produce first gold during the September 2020 quarter. Processing Conventional crushing, grinding and CIL (carbon-in- leach) recovery. Sales Gold dore is delivered to Perth Mint. Golds sales are via forward sales contracts with IGO’s banking partners and spot price sales to the Perth Mint. FY20 Production 463,118oz (100% basis) 141,169oz (IGO 30% share) FY20 Cash Costs and All-in Sustaining Costs A$806/oz A$1,171/oz Resources 1 7.02Moz Au (100%) Reserves 1 3.03Moz Au (100%) Estimated Mine Life Approximately 7 years at current throughput rates based on reserves. Growth Potential Production from the Boston Shaker Underground Mine will improve the production profile and extend mine life. Resource extensions below the Tropicana, Havana and Havana South open pits provide the potential for additional future underground operations. 1 See Resources and Reserves section on pages 28 to 30 of this report. The Tropicana Operation is located on the western edge of the Great Victoria Desert, with the Wongatha and Spinifex people recognised as the Traditional Owners and custodians. Tropicana is operated as a Joint Venture between IGO with 30% ownership and AngloGold Ashanti Australia (AGAA), who are the operators and holders of the remaining 70%. IGO first identified and secured the Tropicana tenements in 2001 and, following the formation of the Joint Venture with AGAA, the Tropicana discovery was made in 2005. Additional discoveries were made at Havana in 2006 and Boston Shaker in 2010, which was the catalyst for the completion of a Bankable Feasibility Study and development approval in 2010. Mining commenced in 2012 and first gold was produced in September 2013. Since then, over three million ounces have been mined via open pit from the Tropicana Operation. In the September 2020 quarter, gold production will commence from the first underground development beneath the Boston Shaker open pit. FY20 PRODUCTION Gold production for FY20 was 463,118oz Au (100% basis), in line with guidance, with IGO’s share of gold sold (30% basis) being 141,169oz Au. Tropicana has demonstrated consistent performance since production began in 2013, with a track record of high margin production, ongoing value optimisation, and outstanding safety. MINING During FY20, a total of 10.6Mt of ore and 81.7Mt of waste material was mined at Tropicana from a combination of the Boston Shaker, Tropicana, Havana and Havana South open pits. Pit cut-backs at Havana and Boston Shaker were progressed during the year, as was development of the Boston Shaker Underground Mine. PROCESSING The Tropicana processing plant milled a total of 8.7Mt of ore during FY20, at an average grade of 1.84g/t Au. This higher throughput rate, as compared to FY19, was implemented to offset lower head grade milled during the year as the operation transitions from open pit to underground. Average gold recoveries for the year were 90.1%, an improvement on the FY19 result of 89.4%. BOSTON SHAKER UNDERGROUND MINE Development of the Boston Shaker Underground Mine commenced in May 2019 following the successful completion of a Feasibility Study. During FY20, development has progressed on time and on budget, with strong collaboration with the lead underground mining contractor, Macmahon Holdings. Commissioning commenced in late FY20, with commercial production remaining on track to commence during the September 2020 quarter. Mining from the Boston Shaker Underground Mine is targeted at approximately 1.1Mtpa at an estimated grade of 3.5g/t Au, delivering circa 100,000 ounces of gold per annum over a current mine life of seven years. This underground material will displace lower grade open pit material resulting in an improved production profile and extend the overall mine life at Tropicana. With the underground now readying for commercial production levels, the Joint Venture partners have commenced studies into the viability of additional underground mines at Tropicana, beneath the current Tropicana, Havana and Havana South pits. TROPICANA EXPLORATION The Tropicana mine sits on a broader 2,600km 2 tenement package which remains relatively underexplored. During FY20, the Joint Venture partners significantly increased the focus on unlocking regional brownfields discovery through various deep diamond and RC drill programs. Brownfields drilling activity was mainly focused on resource definition at the existing Havana open pit. This drilling returned strong results which has derisked the resource and will allow the Joint Venture partners to progress toward a decision to develop an underground mine at Havana. Regional exploration programs were also successful, with encouraging results from targets including Voodoo Child, New Zebra, Springbok and Paradise, which will be followed up in FY21. Looking ahead, the Joint Venture partners intend to continue focusing on greenfield and brownfields discovery, with a total $9M budget (100% basis) for FY21. AT A GLANCE Tropicana Joint Venture partners AGAA and IGO celebrated a major milestone during March 2020, with the mine pouring its three millionth ounce of gold. First gold from Tropicana was produced in September 2013 and since then, IGO and AGAA have worked together to optimise productivity, reduce costs and importantly, keep people safe. The three million ounce production milestone is an outstanding achievement given construction of Tropicana was approved in 2010 on the basis of an initial 3.3 million ounce ore reserve and 5.01 million ounce mineral resource. At 31 December 2019, Tropicana gold reserves were 3.03 million ounces, while resources were 7.02 million ounces. While a planned celebration to mark the three million ounce milestone had to be cancelled due to COVID-19, AGAA’s Senior Vice President, Mike Erickson, commented that the milestone was testament to the quality of the mine, the management and people. “When you consider the mine was originally based on a reserve of 3.3Moz and still has 3.03Moz ahead of it, as well as underground production starting in the second half of 2020, Tropicana really has been a tremendous success,” he said. IGO’s Managing Director and CEO, Peter Bradford, added “Tropicana is an outstanding asset which continues to deliver highmargin gold production and strong cash flows to IGO. With the Boston Shaker UndergroundMine set to produce first gold in the September quarter of 2020, and further opportunities for growth ahead, the future at Tropicana is bright.” CASE STUDY: TROPICANA ACHIEVES THREE MILLION OUNCE MILESTONE Gold pour at Tropicana Gold Mine. 22 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 23