2021 Annual Report

Board Discretion - STI Payment Award FY21 was an outstanding year across the business, with the Company delivering better production and costs than guidance at Nova, resulting in record performance across all key financial metrics for the Company. This outcome was delivered despite the continued challenges presented by COVID-19 to the business and, once again, would not have been possible without the commitment and energy of our people. In recognition of these efforts by employees, the Board approved a discretionary award via the STI program for all employees who demonstrated support for the Company’s values and behaviours by way of an uplift in STI payments for FY21. For further details on this see page 55 and 56. FY21 Discretionary Bonus The transaction with Tianqi to form the new Lithium JV was announced on 9 December 2020, following a nine month negotiation and due diligence period which involved the collaboration of many people across the business. The transaction was completed on 30 June 2021. The current and future significance of this transaction cannot be underrated for IGO and its shareholders. This transaction was completed by the IGO team in tandem with the body of work required to also complete the divestment of the Tropicana JV on 31 May 2021 to Regis Resources Limited. Strong shareholder support since the announcements, and a significant lift in the IGO share price, is evidence of market support for IGO’s strategy to align its focus to those metals critical to enabling clean energy and the long-term value that the global societal shift to clean energy will deliver. In addition to the upwards discretion applied via the STI program, the Board also approved an additional payment, in the form of a cash bonus, to those individuals who contributed to the delivery of the transformational Tropicana and Tianqi transactions, and the debt and equity funding. The total additional cost of this award was $2,000,000. Awards made to Executive KMP are outlined in section 3 and shown separately as a Discretionary Bonus. Long-Term Incentives (LTI) No changes were made to the LTI plan for FY21. The performance period for the 2017 Series Performance Rights ended on 30 June 2020 with vesting of 85.22% of this award for IGO employees in July 2020. Planned Remuneration Changes for FY22 In a competitive market, the Board has confidence that the IGO Reward Framework provides employees with an appropriate mix of fixed and variable reward to focus Executive KMP on achieving the short and long-term interests of shareholders. As such, the suite of changes for FY22 are minimal and are discussed in Section 5 of this Report. The main points are: • An increase in the CEO and Executive KMP total fixed remuneration (TFR) in line with market benchmarking to ensure the TFR for Executive KMP remains competitive with the comparator and broader industry groups for similar roles; • No changes are planned to the quantum or delivery mechanisms of the STI for the CEO or Executive KMP; • No changes are planned to the quantum of LTI grants for the CEO or Executive KMP, however the Board approved a number of changes to the LTI performance measures to acknowledge the changes in the business associated with the Lithium JV and to better drive and assess long-term progress on key strategic drivers i.e. Decarbonisation and People and Culture. These changes will be outlined more fully in the FY22 Remuneration Report; and • An increase in base Board fees and also Committee chair fees in line with market benchmarking. Each year we try to improve our reporting transparency and clarity for shareholders and I trust that our shareholders will find the 2021 Remuneration Report clearly explains our current remuneration philosophy and executive outcomes for the period. I welcome your feedback in FY22 in our endeavour to continuously improve all that we do. DEBRA BAKKER CHAIR – PEOPLE & PERFORMANCE COMMITTEE IGO ANNUAL REPORT 2021— 49