2021 Annual Report

Directors’ Report — Remuneration report 30 June 2021 DEAR SHAREHOLDER On behalf of the People & Performance Committee, I am pleased to share with you our FY21 Remuneration Report. The FY21 year has been an outstanding year for IGO with our people driving the achievement of significant value for our shareholders and the communities in which we live and work. Executive Remuneration and Reward Over the past year, we have experienced a significant increase in the demand for talent across the business, with the labour market continuing to reflect the effects of the COVID-19 pandemic on employee mobility and availability. To combat this, the Board has focused on the safety, engagement and retention of our people in this competitive talent market. Retaining key talent is vital to maintaining and achieving business development outcomes and we are proud of the continued engagement, contributions and loyalty of our people. To that end, the Board remains focused on providing Executive key management personnel (KMP) with fixed remuneration that is competitive and recognises the value that their skills, experience and expertise deliver to IGO, balanced with an appropriate level of variable reward to incentivise the achievement of key strategic initiatives. The Board believes that this balanced approach ensures that the Company: • Attracts and retains key talent through a balance of support and challenge for each individual; and • Remains an employer of choice. Each year the Board takes care to ensure that Executive KMP remuneration is an appropriate combination of cash and equity, such that over time Executive KMP are aligned with the long-term interests of shareholders through their personal shareholding in IGO. Short-Term Incentive (STI) The Board and the Leadership team review and update the Company’s strategic and culturing plan annually. As part of this planning process, the Board sets and monitors a series of demanding performance targets to drive the achievement of the annual business plan and the longer term strategic plan throughout the year. In FY21, these performance targets drove the achievement of the following combination of financial and non-financial focused successes: • the improvement of our safety performance across the business through the completion of a significant body of work at an organisational and business unit level; • the transformational transaction with Tianqi Lithium Corporation (Tianqi) to form a new joint venture (JV) to acquire 49% of its Australian lithium assets (Lithium JV), reshaping the IGO portfolio to solely focus on clean energy resources, and important to growing longer term shareholder value; • the divestment of the Tropicana Joint Venture; • improved gender diversity to 27% (up from 25% in FY20) with a significant improvement in our results at the Nova Operation across all disciplines; • no significant environmental or community incidents; • continued to build on strong relationships with Traditional Owners and clear paths to alignment of interests in our exploration portfolio; • the furthering of programs of work in the Fraser Range and other exploration programs that are key to delivering future discoveries; • delivery of operational metrics, with consistent production performance that is a key enabler to funding the achievement of the Company’s strategic plan; and • strong financial performance to underpin the funding of future growth initiatives designed to grow shareholder value. A detailed description of the Key Performance Indicators (KPIs) that determined the payment of STIs, the performance achieved and the resulting STI payments can be found in our Remuneration Report in the following pages. Letter from Chair of People & Performance Committee 48 —IGO ANNUAL REPORT 2021