2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) Other information This section of the notes includes other information that must be disclosed to comply with the accounting standards and other pronouncements, but are not considered critical in understanding the financial performance or position of the Group. 26 Commitments and contingencies (a) Capital commitments Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: 2021 $'000 2020 $'000 Corporate office fitout 4,800 - Mine properties in development - 4,125 4,800 4,125 (b) Leasing Commitments 2021 $'000 2020 $'000 Finance lease commitments Future minimum lease payments under lease contracts with the present value of net minimum lease payments are as follows: Within one year 5,309 7,706 Later than one year but not later than five years 21,506 27,862 Later than five years 833 9,485 Total minimum lease payments 27,648 45,053 Future finance charges (2,600) (5,268) Present value of minimum lease payments 25,048 39,785 Current 4,421 6,235 Non-current 20,627 33,550 Total included in lease liabilities 25,048 39,785 (c) Contingencies The Group had guarantees outstanding at 30 June 2021 totalling $1,522,000 (2020: $1,211,000) which have been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at the various mine sites. 27 Events occurring after the reporting period On 27 July 2021, the Company announced that it had entered into a binding agreement with entities owned and controlled by Mark Creasy (Creasy Group) to i) acquire 100% of the Silver Knight nickel-copper-cobalt sulphide deposit (Silver Knight), and ii) form a JV with Creasy Group (IGO 65%: Creasy Group 35%) over a portfolio of exploration tenements around Silver Knight, for a total cash consideration of $45,000,000 (Transaction). Documentation for the Transaction is expected to be completed by 30 September 2021, with completion of the Transaction occurring within five business days thereafter. IGO Limited 55 Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 123