strong alignment with our corporate purpose and values. Sustainability is at the core of the Nova operating philosophy. Where possible, our team seek to minimise the impact of our operations on the environment and our local communities. Renewable energy generation and storage at site is a critical step toward achieving our low-emission targets, and in January 2022, IGO announced the expansion of the existing Nova Solar Farm and an investment in a 10MWh battery storage system. The combined solar and battery storage system, delivered in conjunction with our power partner Zenith Energy, will enable Nova to run 100% on renewable energy in an ‘engines-off’ mode for nine consecutive hours over summer and spring – one of the first times a Western Australian mine site has had this capability. This expansion project is expected to reduce Nova’s carbon equivalent emissions by 24% versus FY21 levels and displace approximately four million litres of diesel per annum, an outstanding achievement. As part of our Nova growth strategy, IGO has been seeking opportunities to extend mine life through exploration and the development of resources in close proximity to the Nova infrastructure. In July 2021, IGO and entities controlled by the Creasy Group, agreed to a transaction whereby IGO acquired the Silver Knight Project, a nickel‑copper‑cobalt sulphide discovery made by the Creasy Group in 2015, which is located just 35km northeast of Nova. The acquisition of Silver Knight provides IGO with the opportunity to develop an open-pit mining operation which will provide supplementary ore feed to Nova and thereby extend Nova’s current mine life. A Feasibility Study is currently being prepared, and pending Board approval, IGO expects first ore to Nova from Silver Knight in 2025. In addition to the defined resource at Silver Knight, the tenements acquired from the Creasy Group contain several high-priority exploration targets which our team is prioritising as part of our broader exploration program on the Fraser Range Project. Nova Operation (100%) FY22 FY21 Total revenue $M 900.6 668.8 Segment operating profit before tax $M 456.8 262.9 Total segment assets $M 974.0 1,086.4 Total segment liabilities $M 108.8 100.3 Ore mined tonnes 1,644,752 1,593,975 Ore milled tonnes 1,673,168 1,602,443 Nickel grade % 1.85 2.06 Copper grade % 0.75 0.87 Cobalt grade % 0.07 0.08 Metal in concentrate Nickel tonnes 26,675 29,002 Copper tonnes 11,483 13,022 Cobalt tonnes 982 1,084 Metal payable - in concentrate produced Nickel tonnes 21,281 22,711 Copper tonnes 10,620 12,026 Cobalt tonnes 417 461 Nickel cash costs and royalties* $/lb total Ni metal payable 1.95 1.85 Nickel All-in Sustaining Costs** $/lb total Ni metal payable 2.33 2.16 * Includes credits for copper and cobalt ** Includes cash costs, royalties and sustaining capex. Nova FY23 Outlook At Nova, our focus will be on continued optimisation, particularly in the areas of metallurgical recovery and sustainability. Key workstreams include: • increasing renewable energy generation and storage capacity through the construction of a new 10MW solar farm • continuing electric light vehicle and underground equipment trials • upgrading the water treatment plant to increase water yield and subsequently reduce the overall requirement of bore water; and • ongoing focus on improving nickel recoveries. Cosmos Project The Cosmos Project, 100% owned and operated by IGO, is located 30km north of Leinster in Western Australia in one of Australia’s premier nickel belts. Nickel was first discovered at Cosmos in 1997 and has been previously mined via both open pit and underground methods. Case Study: Ngadju Employment Traineeship Program In late 2021, we launched our new IGO Ngadju Employment Traineeship Program which aims to increase the employment opportunities for the Traditional Owners connected to the land where the Nova Operation is located. Our desired outcomes include: • improving engagement and higher program completion rates • exposure to a variety of mining systems and processes; and • improving employment opportunities – trainees ready for general employment. The program introduced six trainees who came to IGO with a vast range of work and life experiences. Despite their diverse background, what all trainees have in common is a keen interest to work in the mining industry and to make a difference. To ensure the success of the program, we reviewed what had not worked well in the past. We identified that we were selecting trainees and placing them into roles they knew little about, or were not interested in, with little flexibility to change. We re-thought our approach to the program and put an emphasis on collaborating with key stakeholders on how to best set the program up to achieve the desired outcomes for trainees, including understanding what the candidates were interested in. This resulted in the trainees choosing their areas of interest and ranking these in importance. We then decided to introduce regular rotations during their first year of the program in order to give the trainees opportunities to work in a variety of roles and gain exposure to areas of mining they may not ordinarily have had if they were confined to one role. The current rotations occur every four to six months, and again is done in collaboration with what the trainee wants, as well as with our operational needs. We are now hearing that the trainees are starting to really understand what areas of the business they enjoy working in and where they can see a long-term career. During the second year of the program, trainees will select a role that most interests them where they will complete a 12 month rotation. This may be one of the rotations they have previously completed or a new role they want to gain exposure in. IGO’s primary focus at Cosmos is the development of the Odysseus underground mine, which is expected to deliver approximately 20,000t nickel per annum over a mine life of 10+ years. In addition, there is significant potential to extend the production profile through assessment of the large low-grade resource at Mt Goode, which IGO is assessing as a potential future production source. Cosmos FY23 Outlook IGO is in the process of implementing an optimisation strategy and plan for the project. This will involve expanding the scope of the project along with de-risking some elements of what was originally planned. These changes include: • coupling completion of the shaft with that of the processing plant • completion of additional underground mining development to create multiple working areas to enable higher production rates in the initial stages of the life of mine • expansion of the processing plant construction scope to increase the nameplate capacity from the originally envisaged 0.75Mtpa to 1.1Mpta; and • strengthening of site infrastructure. Forrestania Operation The Forrestania Operation, 100% owned and operated by IGO, is located 400km east of Perth, Western Australia and includes two underground mines, Flying Fox and Spotted Quoll, and the Cosmic Boy processing facility. Production from Forrestania commenced in 2006 and the operation has successfully produced high quality nickel concentrates which have been sold under offtake to customers including BHP Nickel West and Jinchuan. Forrestania is a mature asset, with an expected remaining mine life of four years. Forrestania FY23 Outlook The focus at Forrestania will be to optimise production and processing capacity while maintaining safe and efficient production. Key work streams include: • completion of a strategic review of all exploration potential at Forrestania • review and re-negotiation of concentrate offtakes • completion of studies to make a financial investment decision on the development of New Morning; and • integration of group-wide contracts to drive synergies across all operations. Nickel Sulphate Downstream Feasibility Study IGO has commenced a Feasibility Study to assess opportunities for downstream processing of nickel concentrates to produce battery grade nickel sulphate within Australia. In partnership with Wyloo Metals Pty Ltd, this assessment process is expected to be completed in 2024, at which point the two parties will decide whether to proceed with an investment. 26 —IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022— 27
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