INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2018

FY18 FINANCIAL PERFORMANCE • Revenue and other income from Operations of $781 million. • Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA*) of $339 million. • Net profit after tax for FY18 was $53 million, compared to $17 million in the previous financial year. • Underlying free cashfow from operating activities for IGO was $138 million. • At the end of the financial year, the Company had cash totaling $139 million and marketable securities of $24 million (FY17: $36 million and $15 million, respectively). • Total fully franked dividends paid during FY18 were $11.7 million. The total amount the Company has returned to shareholders since incorporation in 2002 is in excess of $176 million by way of a combination of $166.2 million fully franked dividends and a $9.7 million share buyback in 2009. • The Company repaid $57 million of debt, and net debt was reduced from $164 million at the start of FY18 to $4 million. As at 30 June 2018, IGO has cancelled it’s $200 million revolving credit facility, and renegotiated more favourable terms on our debt facilities. * Underlying EBITDA is a non‑IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, finance cost, interest income, asset impairments, gain on sale of subsidiary, depreciation and amortisation. Decent work and economic growth FY18 was the first full year of commercial production at our Nova Operation, producing 22,258t of nickel, 9,545t of copper and 740t of cobalt, slightly below guidance. Tropicana Operation made guidance, producing a total of 467,139oz of gold (140,142oz being IGO’s share), milling 7,781Mt of ore at an average gold grade of 2.11g/t. The Long Operation achieved guidance, generating 5,855t of nickel in ore, prior to being placed in care and maintenance. The Jaguar Operation produced 1,695t of copper in concentrate and 26,159t of zinc in concentrate, up to its divestment on 31 May 2018. OPERATING PERFORMANCE CUSTOMERS In FY18, IGO’s key customers were: • Perth Mint and financial institutions comprising ANZ, CBA and NAB. These collectively bought gold produced from the Tropicana Operation. • BHP Billiton Nickel West Pty Ltd (BHP) bought nickel ore produced from the Long Operation. • Trafigura Pte Ltd (Trafigura) bought both zinc and copper concentrate produced from the Jaguar Operation. • Trafigura also bought copper concentrate produced from the Nova Operation. • Both BHP and Glencore International AG bought nickel concentrate produced from the Nova Operation. IGO SUSTAINABILITY REPORT 2018— 89