2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 27 Events occurring after the reporting period (continued) The impact of the COVID-19 pandemic is ongoing and, while it has had limited impact on the Group up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation continues to develop and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. On 31 August 2021, the Company announced a final fully franked dividend of 10 cents per share, to be paid on 23 September 2021. Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years, other than as stated elsewhere in the financial report. 28 Share-based payments The Group provides benefits to employees (including executive directors) of the Group through share-based incentives. Information relating to these schemes is set out below. (a) Employee Incentive Plan The IGO Limited Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting of the Company in November 2016. The EIP incorporates both broad based equity participation for eligible employees, as well as key executive incentive schemes designed to provide long-term incentives to senior management (including executive directors) to deliver long-term shareholder returns. The EIP comprised the following schemes during the current financial year: • Long-term incentive (LTI) - performance rights; • Short-term incentive (STI) - service rights; • Employee share ownership award; and • Employee salary sacrifice share plan. LTI - Performance Rights Under the LTI scheme, participants are granted performance rights which will only vest if certain performance conditions are met and the employees are still employed by the Group at the end of the vesting period. Participation in the LTI scheme is at the Board’s discretion and no individual has a contractual right to participate in the scheme or to receive any guaranteed benefits. Equity settled awards outstanding Set out below are summaries of performance rights granted under the LTI scheme: 2021 2020 Number of share rights Weighted average fair value at grant date Number of share rights Weighted average fair value at grant date Outstanding at the beginning of the year 2,690,866 3.20 2,369,141 2.54 Rights issued during the year 934,917 2.87 819,577 4.62 Rights vested during the year (819,643) 2.52 - - Rights lapsed during the year (103,943) 3.64 (495,826) 2.39 Rights cancelled during the year (142,156) 2.52 (2,026) 2.29 Outstanding at the end of the year 2,560,041 3.31 2,690,866 3.20 The share-based payments expense relating to performance rights included in profit or loss for the year totalled $2,727,688 (2020: $2,695,027). IGO Limited 49 Notes to The Consolidated Financial Statements 30 June 2021 124 — IGO ANNUAL REPORT 2021