Notes to the consolidated financial statements 30 June 2022 (continued) Working Capital and Provisions This section of the notes provides further information about the Group's working capital and provisions, including accounting policies and key judgements and estimates relevant to understanding these items. 7 Cash and cash equivalents 2022 $M 2021 $M Cash at bank and in hand 367.1 528.5 367.1 528.5 All cash balances are available for use by the Group. The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 22. (a) Reconciliation of profit after income tax to net cash inflow from operating activities 2022 $M 2021 $M Profit for the year 330.9 548.7 Adjustments for: Depreciation and amortisation 175.6 227.3 Impairment of exploration and evaluation expenditure 3.0 - Fair value of movement of financial investments (11.4) (10.0) Non-cash employee benefits expense - share-based payments 6.3 4.9 Gain on disposal of joint venture - (556.8) Share of profits of associates (176.7) - Dividends received from associates 70.7 - Net exchange differences - (0.5) Amortisation of borrowing expenses 0.1 0.2 Amortisation of lease incentive - (0.1) Foreign exchange (gains)/losses on cash balances (0.7) (4.1) Change in fair value measurement of receivables - (0.5) Change in operating assets and liabilities: Decrease/(increase) in trade receivables 25.9 (29.2) (Increase)/decrease in inventories (0.3) 9.1 Decrease in deferred tax assets 4.2 94.0 (Increase) in other operating receivables and prepayments (12.3) (2.2) (Increase) in derivative financial instruments (31.3) - Increase in trade and other payables 39.6 24.4 (Decrease)/increase in income taxes payable (97.0) 172.0 Increase/(decrease) in deferred tax liabilities 26.4 (34.0) Increase in other provisions 4.1 2.9 Net cash inflow from operating activities 357.1 446.1 (b) Non-cash investing and financing activities During the current year, the Group recognised additions of right-of-use assets totalling $20.0 million (2021: $1.0 million). Notes to the consolidated financial statements 30 June 2022 (continued) 7 Cash and cash equivalents (continued) (c) Net debt reconciliation This section sets out a summary of net cash/(debt) for each of the years presented. Net (debt)/cash 2022 $M 2021 $M Cash and cash equivalents 367.1 528.5 Borrowings (900.0) - Lease liabilities (57.4) (25.0) Net (debt)/cash (590.3) 503.5 The table below sets out the movements in interest-bearing liabilities to cash flows arising from financing activities for each of the years presented. Liabilities from financing activities Borrowings $M Leases $M Total $M Interest-bearing liabilities as at 1 July 2020 57.1 39.8 96.9 Net drawdown/(repayment) of borrowings (57.1) - (57.1) Repayment of lease liabilities - (6.2) (6.2) Total changes from financing activities (57.1) (6.2) (63.3) New leases - 1.0 1.0 Disposal of joint venture - (9.6) (9.6) Other changes Interest expense 0.2 1.5 1.7 Interest payments (presented as operating cash flows) (0.3) (1.5) (1.8) Other non-cash movements* 0.1 - 0.1 Interest-bearing liabilities as at 30 June 2021 - 25.0 25.0 Net drawdown/(repayment) of borrowings 900.0 - 900.0 Repayment of lease liabilities - (4.4) (4.4) Total changes from financing activities 900.0 (4.4) 895.6 New leases - 20.0 20.0 Acquisition of subsidiary - 16.8 16.8 Other changes Interest expense 0.9 0.9 1.8 Interest payments (presented as operating cash flows) - (0.9) (0.9) Other non-cash movements* (0.9) - (0.9) Interest-bearing liabilities as at 30 June 2022 900.0 57.4 957.4 * Other non-cash movements include accrued interest expense which will be presented as operating cash flows in the consolidated statement of cash flows when paid. Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 104 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 105
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