2021 Annual Report

IGO LTIP OUTLINE FOR FY21 An outline of the key elements of the Company’s Long-Term Incentive Program (LTIP), as it relates to the Company’s Executive KMP, is provided below: LTIP Opportunity The LTIP opportunity is determined by the Executive KMP’s role and reward grade within the business and is awarded by the offer of a number of performance rights based on a percentage of TFR. The LTIP opportunity for each individual Executive KMP is outlined on page 63. Performance Rights Hurdles For performance rights issued in FY21, there are four equally weighted (25%) performance hurdles utilising the following measures: 1. Relative TSR 2. Absolute TSR 3. Reserve growth per share; and 4. EBITDA average margin. Vesting of Performance Rights Vesting of the performance rights granted to Executive KMP is based on a continuous service condition and performance conditions as detailed below. Service Conditions for Performance Rights Performance rights are subject to a service condition. This condition is met if the Executive KMP’s employment with IGO is continuous for three years commencing on or around the grant date and is aimed at the retention of key personnel and to promote long-term stability in shareholder returns. Performance Conditions for Performance Rights Relative TSR The TSR scorecard for the three year measurement period is determined based on a percentile ranking of the Company’s TSR results relative to the TSR of each of the companies in the peer group over the same three year measurement period. The Board considers that relative TSR is an appropriate performance hurdle because it ensures that a proportion of each participant’s remuneration is linked to the return received by shareholders from holding shares in a company in the peer group for the same period. Absolute TSR The increase in the Company’s absolute TSR will be measured over the three year measurement period. The Board considers that absolute TSR is an appropriate performance hurdle because it ensures Executive KMP performance is rewarded when a year-on-year improvement in shareholder value is achieved. Reserve growth per share Reserve growth per share is defined as ore reserve growth in excess of depletion over the three year measurement period. The Board considers that reserve growth per share is an appropriate performance hurdle to align senior leaders of the business on the achievement of programs of work that achieve the Company’s strategic initiatives for brownfields/ greenfields opportunities and value accretive M&A opportunities important to growing shareholder value. EBITDA Average Margin EBITDA average margin is defined as a measure of the Company’s EBITDA as a percentage of its revenue averaged over the measurement period. The Board considers that EBITDA average margin is an appropriate performance hurdle to align senior leaders on ensuring the sustained operating profitability of the business over time and transparency for shareholders on the Company’s performance in comparison to the IGO peer group. IGO ANNUAL REPORT 2021— 57