Notes to the consolidated financial statements 30 June 2022 (continued) Financial Performance This section of the notes includes segment information and provides further information on key line items relevant to financial performance that the Directors consider most relevant, including accounting policies, and key judgements and estimates relevant to understanding these items. 1 Segment information (a) Identification of reportable segments Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions. The Group operates predominantly in only one geographic segment (Australia). During the year, the following segments were in operation: the Nickel Business, Lithium Business, and Growth, which comprises Regional Exploration Activities and Project Evaluation. The Tropicana Operation was sold effective 31 May 2021. The Nickel Business comprises the Nova Operation and the Forrestania Operation, both underground mining and processing operations, and the Cosmos Project, which is an underground development project. The Forrestania Operation and Cosmos Project were acquired during the year as part of the Group's transaction to acquire Western Areas Limited, which completed on 20 June 2022. The Nova Operation comprises the Nova underground nickel mine and processing operation which produces nickel and copper concentrates. Revenue is derived primarily from the sale of these concentrates containing nickel, copper and cobalt to multiple customers. The General Manager of the Nova Operation is responsible for the budgets and expenditure of the Operation. The Forrestania Operation comprises the Flying Fox and Spotted Quoll underground mines, and the Cosmic Boy processing facility. Nickel concentrate is produced, and revenue is derived primarily from the sale of these concentrates containing nickel to multiple customers. The General Manager of the Forrestania Operation is responsible for the budgets and expenditure of the Operation. The Cosmos Project comprises the development of the Odysseus underground mine focused on the production of nickel concentrate. The General Manager of the Cosmos Project is responsible for the budgets and expenditure of the Project. The Lithium Business represents the Group's 49% share in the Lithium joint venture, Tianqi Lithium Energy Australia Pty Ltd (TLEA), with Tianqi Lithium Corporation. The existing assets of TLEA include the Greenbushes Lithium Mine and the Kwinana Lithium Hydroxide refinery located in Western Australia, to which the Group holds an indirect interest of 24.99% and 49%, respectively. The transaction completed on 30 June 2021 and the investment is equity accounted by the Group. The Tropicana Operation represented the Group's 30% joint venture interest in the Tropicana Gold Mine. AngloGold Ashanti Australia Limited (AngloGold Ashanti) were the manager of the Operation and held the remaining 70% interest. The Tropicana Operation was sold effective 31 May 2021. The Group’s General Manager - Exploration is responsible for budgets and expenditure relating to the Group’s regional exploration, scoping studies and feasibility studies, and the Head of Corporate Development is responsible for budgets and expenditure relating to new business development. The Growth division does not normally derive any income. Should a project generated by the Growth division commence generating income or lead to the construction or acquisition of a mining operation, that operation would then be disaggregated from the Growth division and become reportable in a separate segment. FINANCIAL PERFORMANCE 93 1 Segment information 93 2 Revenue 96 3 Other income 97 4 Expenses and losses 98 5 Income tax 98 6 Earnings per share 102 WORKING CAPITAL AND PROVISIONS 104 7 Cash and cash equivalents 104 8 Trade and other receivables 106 9 Inventories 107 10 Financial assets 107 11 Trade and other payables 108 12 Provisions 109 INVESTED CAPITAL 111 13 Property, plant and equipment 111 14 Leases 113 15 Mine properties 115 16 Exploration and evaluation 117 CAPITAL STRUCTURE AND FINANCING ACTIVITIES 119 17 Borrowings 119 18 Contributed equity 121 19 Reserves and retained earnings 122 20 Dividends paid and proposed 125 RISK 126 21 Derivatives 126 22 Financial risk management 128 GROUP STRUCTURE 136 23 Business combination 136 24 Discontinued operation 138 25 Interests in subsidiaries 139 26 Interests in associates 140 OTHER INFORMATION 143 27 Commitments and contingencies 143 28 Events occurring after the reporting period 143 29 Share-based payments 143 30 Related party transactions 148 31 Parent entity financial information 149 32 Deed of cross guarantee 150 33 Remuneration of auditors 152 34 Summary of significant accounting policies 152 CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 92 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 93
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