2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 19 Reserves and retained earnings (continued) (b) Retained earnings Movements in retained earnings were as follows: Notes 2021 $'000 2020 $'000 Balance at beginning of financial year 9,809 (62,572) Net profit for the period 548,661 155,093 Dividends paid during the period 20 (29,540) (82,712) Transfer to distributable profits reserve 19(a) (483,171) - Balance at end of financial year 45,759 9,809 20 Dividends paid and proposed (a) Ordinary shares 2021 $'000 2020 $'000 Final dividend for the year ended 30 June 2020 of 5 cents (2019: 8 cents) per fully paid share 29,540 47,264 Interim dividend for the year ended 30 June 2021 of nil cents (2020: 6 cents) per fully paid share - 35,448 Total dividends paid during the financial year 29,540 82,712 (b) Dividends not recognised at the end of the reporting period 2021 $'000 2020 $'000 In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 10 cents per fully paid ordinary share, fully franked (2020: 5 cents per fully paid ordinary share, unfranked). The aggregate amount of the proposed dividend expected to be paid on 23 September 2021 out of the distributable profits reserve at 30 June 2021 not recognised as a liability at year end, is: 75,727 29,540 (c) Franked dividends The final dividends recommended after 30 June 2021 will be fully franked out of existing franking credits, or out of franking credits arising from the payment of income tax in the year ending 30 June 2022. 2021 $'000 2020 $'000 Franking credits available for subsequent reporting periods based on a tax rate of 30.0% (2020 - 30.0%) 140,006 322 The above amounts are calculated from the balance of the franking account as at the end of the reporting period, adjusted for franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and dividends after the end of the year. (d) Recognition and measurement Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period. A provision for dividends is not recognised as a liability unless the dividends are declared, determined or publicly recommended on or before the reporting date. Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 109