Operating and Financial Overview FY22 represented another outstanding operating and financial result for IGO, one characterised by strong commodity prices and operational consistency across IGO’s Nickel and Lithium businesses. Record sales revenue at Nova led to record earnings at the Operation, and IGO’s investment in the Australian lithium assets of TLEA delivered its first annual profit contribution to the Group. The acquisition of Western Areas on 20 June 2022 bolsters IGO’s nickel asset portfolio, providing a platform for further growth and returns to IGO shareholders over the next decade. A key financial indicator monitored by the Group’s Board and management is underlying EBITDA (a non-IFRS measure calculated as profit before tax adjusted for finance costs, interest income, gains/losses on sale of investments and subsidiaries, acquisition and transaction costs, foreign exchange and hedging gains/losses attributable to acquisitions, impairment charges and depreciation and amortisation). Revenue from continuing operations, comprising primarily Nova, increased 34% year-on-year as a result of consistent metal production and a significant growth in average nickel, copper and cobalt prices. Nova’s record sales capped a robust FY22 operating performance where the operation delivered on FY22 production guidance and beat cash costs guidance, an outstanding result given the industrywide cost pressures. This strong performance culminated in full year EBITDA of $631.2 million at Nova, a 45% increase over the prior period. IGO’s lithium business also performed strongly in its first full year contribution to Group earnings, with net profit from TLEA of $176.7 million for FY22. This pleasing result is due to IGO’s 24.99% economic interest in the Greenbushes Operation, which on a 100% basis delivered $1,348.5 million in EBITDA and $890 million in Net Profit After Tax. Greenbushes’ FY22 spodumene production and unit Cost of Goods Sold (excluding royalties) were both within guidance at 1,134,580t and $238/t respectively. The results from the Kwinana Refinery are also included within IGO’s reported net profit from TLEA. A total of $41.2 million in EBITDA losses was recorded, primarily as a result of expected commissioning activities at the Kwinana Refinery which progressed positively, with the first production of battery grade lithium hydroxide achieved in May 2022. Collectively, the consistent operating performance and strong metal prices helped deliver a record underlying EBITDA for the fourth year running of $716.9 million, a 51% increase on the prior year. The following chart depicts the key contributions to IGO’s FY22 underlying EBITDA relative to the previous financial year, which includes the discontinued operations of the Tropicana divested on 31 May 2021. FY22 $717M FY21 $475M Underlying EBITDA $M 0 400 100 500 600 700 300 200 (100) Share-based payments expense (non-cash) (5) (6) TLEA Operation 177 Corporate and other expenses (25) (28) Exploration and evaluation expense (64) (68) Nova Operation 436 631 Investment revaluation 11 10 Tropicana Operation 122 Underlying EBITDA to NPAT for FY22 $M Underlying EBITDA Net finance costs Depreciation & amortisation Acquisition & transaction costs Impairment of E&E Income tax expense Net profit after tax 0 700 200 100 600 500 400 300 800 717 331 (4) (176) (71) (3) (133) NPATVariance FY22 vs FY21 $M Share-based payments NPAT FY21 Volume variance Price variance TLEA NPAT FY22 Costs of production Corporate expenses Exploration & evaluation MTM movement of investments Exploration & Evaluation impairment Acquisition costs Gain on sale of Assets Net finance costs Income tax expense NPAT FY22 0 200 1,200 600 800 1,000 400 Tropicana NPAT 549 254 177 1 (9) (1) (6) (3) (22) (37) 20 331 (385) (47) (93) (67) 20 —IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022— 21
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