24 / 164
24 Independence Group NL
Dear Shareholders
The 2015 financial year has been
an active and potentially “company
making” year for IGO with operations at
Long, Tropicana and Jaguar providing
significant cash flows and the Company
announcing its first material transaction
since 2011.
As I mentioned in my letter to
shareholders last year, your Board
appointed Peter Bradford as Managing
Director and CEO in March 2014.
Since joining IGO, Peter and the re-
structured management team have
taken substantial steps to develop
strategies to grow shareholder value
in a meaningful and sustainable way
and to continue to build a market
leading diversified resources group.
The implementation of these initiatives
culminated in the announcement in
May of this year of the agreement
to acquire Sirius Resources NL
which includes the world class Nova
project located in Western Australia.
This transaction was completed in
September and has the potential
to deliver substantial value for
shareholders over the medium to long
term. The Board is also very optimistic
regarding the potential generation of
additional value from the Nova project
and from the exploration upside within
the combined regional land holdings.
To continue to build a sustainable
business and recognising the finite
nature of the geological resources we
extract, IGO will continue to identify
opportunities for investment in
exploration and advanced projects both
in Australia, which is our primary focus,
and overseas. As I have mentioned in
the past, in the light of the social and
legislative risks associated with some
countries, any overseas opportunity
will be rigorously assessed against
IGO’s investment criteria prior to
consideration.
The Company’s production and cost
performance during the year was
highly commendable. Metal production
and unit cost forecast guidance was
achieved or bettered at all operations.
FY 2015 was the first full year of
production from the Tropicana gold
project and combined with strong
performances from Long and Jaguar
resulted in record revenues, record
net cash flow and net profit after tax
of $77million. IGO’s profit and cash
flow performance, negligible debt
and strong financial position at year
end enabled an increase in dividends
in FY2015 following the considerable
capital investment made in the
Tropicana gold project in the first half
of FY2014.
IGO will continue to
investigate opportunities
both in Australia and
overseas.
CHAIRMAN’S REVIEW
$77
million
Net Profit After Tax