Notes to the consolidated financial statements 30 June 2022 (continued) 24 Discontinued operation In the previous financial year, the Company divested its 30% interest in the Tropicana Gold Mine (Tropicana) to Regis Resources Limited. The sale was completed with effect on 31 May 2021 and Tropicana is reported as a discontinued operation in the prior period. Financial information in the prior period relating to the discontinued operation for the period to the date of disposal is set out below. (a) Financial performance and cash flow information The financial performance and cash flow information presented for the prior period are for the 11 months ended 31 May 2021 (2021 column). 2021 $M Revenue 243.3 Mining, development and processing costs (96.7) Employee benefits expense (15.3) Depreciation and amortisation expense (51.7) Exploration and evaluation expense (2.8) Royalty expense (6.9) Borrowing and finance costs (0.7) Other expenses (1.9) Profit before income tax 67.3 Income tax expense (20.2) Profit after income tax of discontinued operation 47.1 Gain on sale of the joint venture after income tax (see (b) below) 384.8 Profit from discontinued operation 431.9 2021 $M Net cash inflow from operating activities 139.7 Net cash inflow/(outflow) from investing activities (includes a net cash inflow of $862.3 million from the sale of the joint venture) 788.6 Net cash outflow from financing activities (1.3) Net increase in cash generated by the joint venture 927.0 (b) Details of the sale of the joint venture 2021 $M Cash consideration received or receivable 888.6 Costs of sale paid or payable (28.8) Total net disposal consideration 859.8 Carrying amount of net assets sold (303.0) Gain on sale before income tax 556.8 Income tax expense on gain (172.0) Gain on sale after income tax 384.8 Notes to the consolidated financial statements 30 June 2022 (continued) 25 Interests in subsidiaries (a) Significant investments in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of IGO Limited and the subsidiaries listed in the following table: Name of entity Note Country of incorporation Equity holding 2022 % 2021 % IGO Lithium Holdings Pty Ltd Australia 100.0 100.0 IGO Nova Holdings Pty Ltd (a) Australia 100.0 100.0 IGO Nova Pty Ltd (a) Australia 100.0 100.0 IGO Nickel Holdings Pty Ltd (a),(b) Australia 100.0 100.0 Western Areas Limited (a) Australia 100.0 - Western Areas Nickel Pty Ltd Australia 100.0 - Australian Nickel Investments Pty Ltd (a) Australia 100.0 - BioHeap Ltd (a) Australia 100.0 - Western Platinum NL (a) Australia 100.0 - IGO Newsearch Pty Ltd Australia 100.0 100.0 IGO Copper Holdings Pty Ltd Australia 100.0 - IGO Cobar Pty Ltd Australia 100.0 - IGO Stockman Parent Pty Ltd Australia 100.0 100.0 IGO Stockman Project Pty Ltd Australia 100.0 100.0 IGO Windward Pty Ltd Australia 100.0 100.0 Flinders Prospecting Pty Ltd Australia 100.0 100.0 IGO Canada Holdings B.C. Ltd (c) Canada 100.0 - (a) These subsidiaries have been granted relief from the necessity to prepare full general purpose financial reports in accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 issued by the Australian Securities and Investments Commission. For further information refer to note 32. (b) IGO Europe Pty Ltd changed its name to IGO Nickel Holdings Pty Ltd during the year. (c) IGO Canada Holdings B.C. Ltd was incorporated on 6 June 2022. (b) Principles of consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entities. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 138 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 139
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