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) Financial Performance This section of the notes includes segment information and provides further information on key line items relevant to financial performance that the Directors consider most relevant, including accounting policies, key judgements and estimates relevant to understanding these items. 1 Segment information (a) Identification of reportable segments Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions. The Group operates predominantly in only one geographic segment (Australia). During the year, the following segments were in operation: The Nova Operation, the Tropicana Operation and Growth, which comprises Regional Exploration Activities and Project Evaluation. The Long Operation was placed in care and maintenance in June 2018 and subsequently sold effective 31 May 2019. The Nova Operation produces nickel and copper concentrates. Revenue is derived primarily from the sale of these concentrates containing nickel, copper and cobalt to multiple customers. The General Manager of the Nova Operation is responsible for the budgets and expenditure of the Operation. The Nova Operation and exploration properties are owned by the Group's wholly owned subsidiary IGO Nova Pty Ltd. The Tropicana Operation represents the Group’s 30% joint venture interest in the Tropicana Gold Mine. AngloGold Ashanti Australia Limited (AngloGold Ashanti) is the manager of the Operation and holds the remaining 70% interest. Programs and budgets are provided by AngloGold Ashanti and are considered for approval by the Company's Board. The Group’s General Manager - Exploration is responsible for budgets and expenditure relating to the Group’s regional exploration, scoping studies and feasibility studies, and the Head of Corporate Development is responsible for budgets and expenditure relating to new business development. The Growth division does not normally derive any income. Should a project generated by the Growth division commence generating income or lead to the construction or acquisition of a mining operation, that operation would then be disaggregated from the Growth division and become reportable in a separate segment. IGO Limited 9 Notes to the consolidated financial statements 30 June 2020 (continued) 1 Segment information (continued) (b) Segment results Year ended 30 June 2020 Nova Operation Tropicana Operation Long Operation Growth Total $'000 $'000 $'000 $'000 $'000 Nickel revenue 452,628 - - - 452,628 Gold revenue - 288,670 - - 288,670 Copper revenue 102,619 - - - 102,619 Silver revenue 1,240 1,408 - - 2,648 Cobalt revenue 18,727 - - - 18,727 Shipping and insurance service revenue 4,925 - - - 4,925 Other revenue 13,135 - - - 13,135 Total segment revenue 593,274 290,078 - - 883,352 Segment operating profit/(loss) before income tax 182,173 101,371 - (75,228) 208,316 SPACE Total segment assets 1,181,867 357,643 - 95,426 1,634,936 SPACE Total segment liabilities 92,862 57,785 - 2,940 153,587 SPACE Acquisition of property, plant and equipment 6,913 7,390 - - 14,303 SPACE Depreciation and amortisation 168,086 72,434 - 18 240,538 Impairment of assets - - - 1,018 1,018 SPACE Other non-cash expenses 522 347 - - 869 Year ended 30 June 2019 Nova Operation Tropicana Operation Long Operation Growth Total $'000 $'000 $'000 $'000 $'000 Nickel revenue 389,105 - - - 389,105 Gold revenue - 277,429 - - 277,429 Copper revenue 96,781 - - - 96,781 Cobalt revenue 27,218 - - - 27,218 Silver revenue 953 1,051 - - 2,004 Shipping and insurance service revenue 5,336 - - - 5,336 Other revenue (17,502) - (1,189) 3 (18,688) Total segment revenue 501,891 278,480 (1,189) 3 779,185 Segment net operating profit/(loss) before income tax 95,365 97,627 (1,400) (59,148) 132,444 SPACE Total segment assets 1,193,096 314,990 - 95,551 1,603,637 SPACE Total segment liabilities 66,996 41,491 - 2,107 110,594 SPACE Acquisition of property, plant and equipment 11,315 2,531 125 - 13,971 SPACE Depreciation and amortisation 160,456 74,731 681 44 235,912 SPACE Other non-cash expenses 956 401 59 - 1,416 IGO Limited 10 80 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 81