2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 28 Share-based payments (continued) Fair value of performance rights granted The fair value of the share rights granted during the year ended 30 June 2021 are determined using a trinomial tree which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with the following inputs: Fair value inputs CEO Senior management Other employees Grant date 18 November 2020 2 October 2020 2 October 2020 Vesting date 1 July 2023 1 July 2023 1 July 2023 Share price at grant date 4.88 4.07 4.07 Fair value estimate at grant date 3.43 2.74 2.74 Expected share price volatility (%) 40 40 40 Expected dividend yield (%) 1.43 1.72 1.72 Expected risk-free rate (%) 0.11 0.18 0.18 Vesting conditions of performance rights granted Vesting of the performance rights granted to executive directors, executives and other employees during the year is based on four equally weighted performance hurdles as follows: • Relative total shareholder return (TSR); • Absolute TSR; • Reserve growth per share; and • EBITDA average margin. Relative TSR The relative TSR scorecard for the three year measurement period will be determined based on a percentile ranking of the Company's TSR results relative to the TSR of each of the companies in the comparator group over the same three year measurement period. The comparator group is a peer group comprised of members of the S&P ASX 300 Metals and Mining Index, as well as several mining companies listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). The Board has discretion to adjust the peer group from time to time in its absolute discretion. The vesting schedule for the 25% of the performance rights subject to relative TSR testing is as follows: Relative TSR performance Level of vesting Less than 50th percentile Zero Between 50th and 75th percentile 50% plus pro-rata straight line percentage between 50% and 100% 75th percentile or better 100% Absolute TSR The absolute TSR scorecard for the three year measurement period will be determined based on an increase in absolute TSR of the Company over the three year measurement period. The vesting schedule for the 25% of the performance rights subject to absolute TSR testing is as follows: Absolute TSR performance Level of vesting 10% per annum return 33% Above 10% per annum and below 20% per annum return Straight line pro-rata between 33% and 100% Above 20% per annum return 100% IGO Limited 50 Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 125