IGO SUSTAINABILITY REPORT 2022— 93 Our Financial Contributions IGO is proud to contribute to a clean energy future. Success in delivering our business strategy enables us to share the benefits our business creates and help sustain local and regional economies. Our financial contributions provide our stakeholders with the confidence that we are sharing value through taxes, royalties and employment and procurement opportunities, in addition to building communities by investing in education and training. In FY22, IGO continued to build on its strategy to be a globally relevant business 100% focused on clean energy products after completing the successful acquisition of Western Areas. This complements the FY21 investment in our lithium joint venture with Tianqi. This has resulted in IGO being uniquely positioned with worldclass upstream and downstream assets exposed to nickel, copper, cobalt and lithium. It is this suite of metals which IGO believes will benefit most from the rapid acceleration of demand for EVs, stationary storage and renewable energy. Our commitment to sustainable development extends through our value chain — from exploration to the way we operate to extract and process the metals we mine, and to the way our products are used by our customers to deliver a green energy future. IGO’s Modern Slavery Statement and Human Rights Policy ensures IGO is being transparent about the products we supply to market and the ethical ways they have been produced. More information on these can be found on pages 89 and 90. We are also committed to maximising our business value through the adoption of innovative thinking and collaboration with others. We will continue to invest in organisational capability and technology to optimise the implementation of our strategy, and our commitment to being a sustainable business. FY22 Financial Summary FY22 was another strong financial performance for IGO, with Group underlying EBITDA increasing by 51% year-on-year to $717M. This result was driven by record sales at the Nova Operation of $901M and the first years’ profit contribution from TLEA of $177M. An inaugural dividend from TLEA of $71M was also received in June 2022, contributing to Group underlying free cash flow of $312M for FY22. Nova delivered on FY22 production guidance, while nickel cash costs of $1.95/lb were better than guided, reinforcing Nova’s position as one of the lowest-cost nickel operations globally. At the Greenbushes Operation, spodumene production and cash costs were both within guidance, while commissioning of Australia’s first fully integrated Lithium Hydroxide Plant at Kwinana continued positively ahead of commercial production expected in FY23. IGO completed the $1,262M acquisition of Western Areas in June 2022, strengthening its nickel portfolio with the addition of the Forrestania Operation and Cosmos Project in Western Australia. The Cosmos Project is currently under construction and expected to commence nickel production mid 2023. IGO ended the year with cash on the balance sheet of $367M following the acquisition of Western Areas, which was funded by existing cash reserves and a $900M new debt facility, fully drawn at 30 June 2022. Further information about our FY22 financial performance is detailed in the 2022 Annual Report. At a Glance $8.0M Total spend on Aboriginal owned or managed businesses in FY22 ↑ 29% vs FY21 73% of our suppliers of goods and services are located locally or within Western Australia Payments to suppliers for goods and services in FY22 $287.4M Ethical, responsible, transparent
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