2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) Group structure This section of the notes provides information which will help users understand how the group structure affects the financial position and performance of the Group. 23 Discontinued operation On 13 April 2021, the Company announced that it had entered into a binding agreement with Regis Resources Limited (Regis) for the sale of the Company's 30% interest in the Tropicana Gold Mine (Tropicana). The sale was completed with effect from 31 May 2021 and Tropicana is reported in the current period as a discontinued operation. Financial information relating to the discontinued operation for the period to the date of disposal is set out below. (a) Financial performance and cash flow information The financial performance and cash flow information presented are for the 11 months ended 31 May 2021 (2021 column) and the year ended 30 June 2020. 2021 $'000 2020 $'000 Revenue 243,257 290,078 Mining, development and processing costs (96,706) (89,570) Employee benefits expense (15,298) (15,725) Depreciation and amortisation expense (51,715) (72,434) Exploration and evaluation expense (2,835) (3,089) Royalty expense (6,851) (8,150) Borrowing and finance costs (653) (837) Other expenses (1,935) (1,991) Profit before income tax 67,264 98,282 Income tax expense (20,188) (29,496) Profit after income tax of discontinued operation 47,076 68,786 Gain on sale of the joint venture after income tax (see (b) below) 384,819 - Profit from discontinued operation 431,895 68,786 2021 $'000 2020 $'000 Net cash inflow from operating activities 139,683 149,863 Net cash inflow/(outflow) from investing activities (2021 includes a net inflow of $862,349,000 from the sale of the joint venture) 788,558 (70,652) Net cash (outflow) from financing activities (1,249) (1,243) Net increase in cash generated by the joint venture 926,992 77,968 (b) Details of the sale of the joint venture 2021 $'000 2020 $'000 Cash consideration received or receivable 888,579 - Costs of sale paid or payable (28,810) - Total net disposal consideration 859,769 - Carrying amount of net assets sold (302,946) - Gain on sale before income tax 556,823 - Income tax expense on gain (172,004) - Gain on sale after income tax 384,819 - Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 119