2021 Annual Report

CFO Report Record Financial Performance FY21 has been another highly successful and transformative year for IGO and I am delighted to provide a summary of our key financial results. The year was characterised by two significant transactions involving the divestment of our interest in Tropicana and our investment into the new lithium focused joint venture. Importantly, operational performance from both Nova and Tropicana also remained strong throughout FY21, delivering excellent margins and free cash flow to IGO. In FY21, IGO set new records across key financial measures. Group revenue of A$915M was 3% higher than the FY20 result, with higher metals prices more than offsetting marginally lower year-on-year production volumes. Group underlying free cash flow of A$363M was 17% higher than the FY20 result, while net profit after tax of A$549M was significantly higher than FY20 due to the gain booked on the successful divestment of our 30% stake in the Tropicana Gold Mine to Regis Resources of A$385M. Profit after tax excluding the gain on Tropicana was A$164M. The robust financial results reflect the consistently strong operational performance over FY21. Production from Nova exceeded guidance (29,002t nickel, 13,022t copper, 1,084t cobalt) at cash costs of A$1.85/lb nickel (payable). Strong prevailing copper and cobalt prices, particularly during the second half of FY21, positively impacted cash cost performance and resulted in a downward revision of cash cost guidance in the March 2021 Quarterly Report. Cash cost guidance was adjusted to A$1.80 – A$2.10/lb nickel (payable) from earlier guidance of A$2.40 – A$2.80/lb nickel (payable), and it was pleasing to finish FY21 at the lower end of this new guidance range. This outstanding cash cost performance led to Nova generating a record A$393M of free cash flow over FY21, with full year EBITDA and free cash flow margins of 65% and 59% respectively. Production from Tropicana, prior to our divestment on 31 May 2021, was 364,751oz (100% basis) at an all-in sustaining cost of A$1,720/oz. Free cash flow generation from Tropicana over this same period was A$68M equating to a free cash flow margin of 28%. From a cash perspective, FY21 saw significant movements in Group cash as we completed the two transformational transactions. Significant cash inflows included A$862M attributable to the Tropicana divestment (net of costs), and the equity raising conducted to support the lithium transaction netted an additional A$749M contribution from shareholders. The Tropicana divestment and equity raise delivered a combined A$1,611M to IGO, which enabled us to settle the lithium transaction consideration of A$1,855M without the need to draw on new debt facilities. This was an outstanding achievement for IGO and positions the business with A$529M net cash at 30 June 2021. As a result of the then pending lithium transaction and associated recent equity raise, the Board did not declare an interim dividend during FY21. However, IGO maintains its commitment to deliver returns to shareholders via dividends and has declared a payment of 10 cents per share, fully franked, for its FY21 final dividend. In line with this commitment, IGO’s shareholder returns policy has been modified to target returns of 15 to 25 percent of underlying free cash flow when liquidity is less than A$500M, and when liquidity is in excess of A$500M, further discretion will be applied to return a greater proportion of cash to shareholders. The policy remains at the discretion of the Board. Scott Steinkrug Chief Financial Officer Fraser Range, Western Australia 6 — IGO ANNUAL REPORT 2021