2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 15 Mine properties Mine properties in development $'000 Mine properties in production $'000 Deferred stripping $'000 Total mine properties $'000 Year ended 30 June 2021 Cost - 1,448,282 - 1,448,282 Accumulated amortisation - (644,179) - (644,179) Net book amount - 804,103 - 804,103 Movements Carrying amount at beginning of the period 19,022 1,095,914 44,685 1,159,621 Additions 3,463 20,106 56,079 79,648 Transfers from exploration and evaluation expenditure - 2,949 - 2,949 Transfers to property, plant and equipment (13,458) - - (13,458) Transfers from mine properties under construction (9,027) 9,027 - - Amortisation expense - (189,140) (18,816) (207,956) Disposal of joint venture - (134,753) (81,948) (216,701) Closing net book amount - 804,103 - 804,103 Year ended 30 June 2020 Cost 19,022 1,742,936 235,855 1,997,813 Accumulated amortisation - (647,022) (191,170) (838,192) Net book amount 19,022 1,095,914 44,685 1,159,621 Movements Carrying amount at beginning of the period 4,271 1,255,493 51,612 1,311,376 Additions 12,491 22,815 37,825 73,131 Transfers from exploration and evaluation expenditure 2,260 - - 2,260 Amortisation expense - (182,394) (44,752) (227,146) Closing net book amount 19,022 1,095,914 44,685 1,159,621 (a) Recognition and measurement (i) Mine properties in development Mine properties in development represent the expenditure incurred when technical feasibility and commercial viability of extracting a mineral resource have been demonstrated, and includes the costs incurred up until such time as the asset is capable of being operated in a manner intended by management. These costs are not amortised but the carrying value is assessed for impairment whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. (ii) Mine properties in production Mine properties in production represent the accumulation of all acquisition, exploration, evaluation and development expenditure incurred by or on behalf of the Group in relation to areas of interest in which mining of the mineral resource has commenced. When further development expenditure is incurred in respect of a mine property after the commencement of production, such expenditure is carried forward as part of the cost of that mine property only when substantial future economic benefits are established, otherwise such expenditure is classified as part of the cost of production. IGO Limited 31 Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 101