IGO SUSTAINABILITY REPORT 2020

IGO is proud to be a growing member of the Australian mining industry. Success in delivering our business strategy enables us to share the benefits our business creates and help sustain local and regional economies. It provides our stakeholders with the confidence that we are sharing value through taxes, royalties, employment and procurement opportunities, in addition to building communities by investing in education and training. Our commitment to sustainable development extends through our value chain — from exploration to the way we operate to extract and process the metals we mine, and to the way our products are used by our customers to deliver a green energy future. Our supply chain practices are becoming important to our stakeholders, with some seeking greater transparency about the products we supply to market and the ethical ways they have been produced. We are also committed to maximising our business value through the adoption of innovative thinking and collaboration with others. We will continue to invest in organisational capability and technology to optimise the implementation of our strategy, and our commitment to being Proactively Green. HIGHLIGHTS FY20 ($ MILLION) FY19 ($ MILLION) Total revenue and other income 892 793 Underlying EBITDA 1 460 341 Profit after tax 155 76 Net cash flow from operating activities 398 372 Underlying free cash flow 1 311 278 Total assets 2,293 2,190 Cash 510 348 Marketable securities 108 28 Total liabilities 367 341 Shareholders’ equity 1,926 1,849 Net tangible assets per share ($ per share) $3.26 $3.13 Dividends per share paid – fully franked (cents) 14.0 4.0 1 See Glossary for definition 9% FY19 $4.45M payments to Ngadju in FY20, up from $4.08M in FY19 94.9% of our suppliers of goods and services are located locally or within Western Australia 22% FY19 $55.64M payments in salaries and wages in FY20, up from $45.72M in FY19 $36.35M tax, state royalties and other government payments, up from $29.67M in FY19 AT A GLANCE 23% FY19 FY20 FINANCIAL SUMMARY IGO achieved record revenue and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) during the 2020 financial year. The successful delivery of the third year of commercial production at the Nova Operation exceeded production guidance, and the continuing strong performance from the Tropicana Operation comfortably met production guidance. The performance of our two core assets generated underlying free cash flow of $311M and net profit after tax of $155M. Our key financial highlights are summarised below. Further information about our FY20 financial performance are detailed on page 101 of this report and in the 2020 Annual Report. OUR ECONOMIC CONTRIBUTIONS We support economic development in the communities in which we operate by seeking to invest first locally, then regionally within Western Australia, then nationally and finally internationally. IGO’s economic contributions can be measured by the dividends we pay, salaries and other employment benefits we provide to our employees, the money we spend on contractors and consultants, taxes and royalties paid, and payments made through our Corporate Giving activities. Our direct economic impact is largely centred in Western Australia. Where possible, we buy goods and services locally. At the Nova Operation, the highest value contracts are for underground mining services, fuel, drilling services, haulage, binding agents for backfill and catering services. In FY20, our direct economic contribution comprised of: • $179.75M in payments to employees in salaries and wages, payables to governments in taxes and royalties, returns to shareholders, non- government payments and Corporate Giving contributions; • $262.90M of payments to suppliers for goods and services; and • $93.62M reinvested into business growth, such as mine properties and exploration assets. During the year we released our Tax Transparency Report for the FY19 period, including detail on our approach to tax strategy and governance, effective tax rates and tax contribution summaries. The report adopts the Australian Government Voluntary Tax Transparency Code guidelines, as required for large- and medium- sized businesses to publicly disclose tax information. As of FY20, IGO is categorised as a large-sized business as a result of aggregated turnover of greater than $500M. Our FY20 Tax Transparency Report will be published in November 2020 and made available on our website. The broad economic impacts of IGO’s activities associated with the Nova Operation continue to be significant and in line with those detailed in the 2019 social impact assessment work. Projects like the Nova Operation make a significant contribution to improved regional infrastructure, business diversification and regional development and can be a catalyst that supports new businesses to the benefit of third-party users. With a value of production in 2017—18 of $766M, the total flow-on effect of the Nova Operation through the Western Australian economy was $1.99B. We anticipate updating this figure as part of the next social and economic impact assessment. WORKING WITH OUR SUPPLY CHAIN Our supply chain partners are crucial to IGO’s success. In accordance with our Code of Conduct, we seek to engage like-minded suppliers and business partners who are committed to operating in a safe, lawful and competitive manner. We build mutually beneficial relationships with suppliers and customers to help deliver quality products desired by end users that are made safely, ethically, sustainably and reliably. IGO’s General Governance Statement Principle outlines our supply chain strategy around maintaining the highest standard of ethical behaviour in business dealings. The IGO supply chain strategy, together with our Contractor Management and Procurement Standard, guide our approach to the engagement of suppliers and contractors. We focus on sourcing individuals and organisations with shared values to IGO. We invest time to research the most suitable supplier or contractor for the required activity, complete risk assessments, and consider macro- economic factors that may impact goods and services. All contractors and suppliers are expected to work in accordance with our Code of Conduct and standards, which cover business ethics and integrity, environmental standards, human rights, working conditions and occupational health and safety aspects. New and existing contractors and suppliers are required to align with IGO’s health, safety, environment and community management plans. COVID-19 response We acknowledge the significant impact COVID-19 has had on our contractors and suppliers. In response, we have introduced new payment term measures to assist our small and medium suppliers and businesses during the pandemic. These include: • acceleration of payments to small and medium business; and • payment within seven days of request, to aid those in financial distress. We will continue to support our valued small and medium-sized businesses during this challenging time. Product stewardship and ethical supply chains Responsible product stewards seek to positively influence environmental and social impacts of their products through the value chain and the product lifecycle. Having oversight of our supply chain and product end use is crucial to our reputation and our ability to market products. We believe that companies maximise their value to society when they produce materials responsibly and engage downstream to promote their beneficial use. While originally the major focus of product stewardship was complying with regulation, today proactive companies are putting emphasis on how their products affect the key social and environmental challenges like climate change and modern slavery. In parallel, conscious consumers, are increasingly choosing ‘responsible’ brands and products where product stewardship has been effectively managed. IGO SUSTAINABILITY REPORT 2020— 87 86 — IGO SUSTAINABILITY REPORT 2020 OPTIMISING BUSINESS VALUE