IGO Interactive Annual Report 2019

DIRECTORS’ REPORT 30 JUNE 2019 LETTER FROM CHAIR OF PEOPLE & PERFORMANCE COMMITTEE DEAR SHAREHOLDER On behalf of the People & Performance Committee, I am pleased to share with you our FY19 Remuneration Report. Over the past year, we have experienced increasing competition for talent as the resource sector’s activities have increased. However, we believe that our strong Company culture and Purpose will be the key to ensuring we have access to and can retain the talented people needed to deliver our strategy. Underpinning this is IGO’s Total Rewards Philosophy, which is in its third year since implementation. It ensures that the Company’s remuneration approach is focused and holistic, considering not only salary but also addressing work/life balance and opportunity for personal development. SHORT-TERM INCENTIVE FOR FY19 This has been a year of consolidation and achievement for IGO across every aspect of the business. Our exploration program has gone from strength to strength with the continued expansion of the Company’s activities in the Fraser Range, the successful completion of a number of additional joint venture agreements and a record number of drill rigs in the field. We have delivered strong performance at Nova and Tropicana and have successfully divested the Long Operation. A key element motivating this performance is the set of demanding Short-Term Incentive targets established by the Board and Leadership team each year. For FY19 these included: 1. Health, Safety and Environmental (HS&E) – delivering sustained, improved HS&E performance across all facets of the business. This metric goes directly to efficiently and effectively managing the risks inherent in all of the Company’s operations. 2. People and Culture – improvement across a suite of objectives that create a motivated and highly-engaged workforce. This includes specific targets for shaping culture and improving engagement along with increasing diversity and building inclusion. 3. Growth – delivering a suite of strategic growth initiatives that support the Company’s overall strategy along with reserves growth – growing the Company’s reserves base (excluding Tropicana) net of depletion due to mining is a relevant measure, given the significant tonnes extracted from Nova. 4. Production and financial – delivering strong capital expenditure, operating expenditure and production performance from the Company’s operated assets. Details on how the above KPIs were delivered can be found in the Remuneration Report. EXECUTIVE REMUNERATION AND REWARD REVIEW In FY19 we have conducted an expanded review on the fixed and “at risk” remuneration structures of the Executive Leadership Team in preparation for the next three-year cycle of the IGO Total Remuneration Philosophy. Our goal was to ensure that firstly, IGO remains an employer of choice in a competitive talent market; secondly, that executive remuneration remains closely linked to a common effort that drives our achievement of strategic objectives; and thirdly, that the alignment of remuneration with the interests of shareholders is maximised. The structure to achieve this is outlined in this report. I trust that shareholders will find the 2019 Remuneration Report clearly explains our current remuneration philosophy and executive outcomes for the period and welcome your feedback in our endeavour to provide ongoing clarity and transparency. KEITH SPENCE CHAIR – PEOPLE & PERFORMANCE COMMITTEE 44 — IGO ANNUAL REPORT 2019