Continued focus on optimisation Nickel Business Overview IGO is a leading independent producer of nickel concentrate products and owns and operates a portfolio of projects spanning production, development, feasibility and exploration assets, all substantially located in Western Australia. Following the acquisition of Western Areas in June 2022, IGO’s key nickel production assets include the Nova Operation and Forrestania Operation, both underground mining and processing operations which have long histories of successful operating and financial performance. The Cosmos Project is an underground development project which is forecast to produce first nickel concentrate in mid-2023. In addition, as part of our strategy to connect with end users via vertical integration, IGO is assessing the opportunity to develop a downstream nickel processing operation to produce battery grade nickel sulphate for the lithium-ion battery industry. Nova Operation Nova is a 100% IGO owned and operated underground nickel mine and processing operation located 140km by road east northeast of Norseman in the Great Western Woodlands of Western Australia. Commercial operations at Nova began in 2017 and since then, the operation has generated over $2 billion in revenue and over $1 billion in free cash flow, while also establishing a reputation as an outstanding place to work. Nova recorded another safe and successful year of operational performance in FY22. Total Recordable Injury Frequency Rate (TRIFR) at 30 June 2022 was 19.9, representing a slight increase from 17.6 reported at the start of FY22. However, of note, overall injury severity decreased and lead indicators have all improved. We acknowledge we have continued to experience injury and harm to our people and the entire IGO team remains focused on ongoing enhancement of safety processes, procedures and training. FY22 also saw a marked increase in penetration of COVID-19 in the Western Australian community following the removal of most of the travel restrictions put in place at the start of the pandemic in 2020. Pleasingly, while we did experience several cases on site, IGO’s strong risk and infection management systems enabled Nova to avoid material disruptions to operations as a result of COVID-19. The Nova process plant milled 1,673kt of ore at an average nickel and copper grade of 1.85% and 0.75% respectively. The high milling throughput reflected a high mining rate and good overall mill availability for the year. Production of nickel, copper and cobalt at Nova was in line with guidance at 26,675t of nickel, 11,483t of copper and 982t of cobalt, respectively. Nickel cash costs per payable pound, which comprises the costs of producing and selling nickel concentrates from the mine site, and includes credit adjustments for copper and cobalt production, were better than guidance at $1.95 per payable pound of nickel, with cash costs benefiting from sustained high by‑product pricing over the course of FY22. Annual sales revenue at Nova increased 35% to $900.6 million, with steady metal production aided by strong base metal prices. Nova’s operating profit before tax was $456.8M, representing a 74% increase on the prior year. Over the page is a summary of the key physical and financial information relating to the Nova Operation. A critical enabler of the strong performance at Nova was IGO’s enduring focus on culture and the engagement of our people. As a result of our ongoing commitment to culturing programs, engagement levels of the Nova team improved year-on-year, with our Engagement Survey also demonstrating high levels of pride in working for IGO and a Nickel Business Outlook In FY23, IGO will execute several key work programs to enhance our nickel business. The expansion of our nickel portfolio to include Cosmos and Forrestania provides IGO a unique opportunity to leverage operational synergies across the business, improving productivity and financial performance. In addition, each project has several key work programs planned for FY23. At a Glance Leading Western Australian nickel producer with a portfolio of production, development and exploration assets Strong focus on industry-leading sustainability practices Accelerating progress of feasibility study into downstream nickel sulphate processing FY23 Group Nickel Production expected to be: 34,500 to 39,500t1 (FY22: 26,675t) FY23 Group Nickel Production Cost Guidance: $4.10 to $4.70/lb2 (FY22: $1.95/lb) 1. FY23 group nickel production guidance includes expected production from the Forrestania Operation which was not part of IGO’s portfolio in FY22 2. FY23 group nickel production cost guidance reflects production costs from Nova and Forrestania. FY22 cost performance reflects the Nova Operation only. IGO ANNUAL REPORT 2022— 25
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