IGO LIMITED — Interim / Quarterly Report 2014

Feb 26, 2014

INDEPENDENCE GROUP NL ABN 46 092 786 304

APPENDIX 4D

HALF-YEAR REPORT

HALF-YEAR INFORMATION – 1 JULY 2013 TO 31 DECEMBER 2013 LODGED WITH THE ASX UNDER LISTING RULE 4.2A

Key Information – Results for Announcement to the Market

	$’000	% Increase/(Decrease) from Previous Corresponding Period
Revenue from ordinaryactivities	166,710	36.5%
Profit after tax attributable to members	21,492	30.3%
Net profit attributable to members	21,492	30.3%

The previous corresponding period is the half-year ended 31 December 2012.

	2013	2012
Basic earnings per share (cents)	9.21	7.08
Diluted earnings per share (cents)	9.14	7.05
Net tangible assets per share (cents)	287.18	278.94

The major factors contributing to the above variances are as follows:

• The Tropicana Gold Mine came into production in the December 2013 quarter with first pour occurring late September 2013. The mine contributed $6.5 million in profit before tax compared to $1.0 million loss before tax in the prior period while the mine was in the development and construction phase.

• The Jaguar Operation’s profit before tax for the period increased by $18.8 million to $24.6 million as a result of significantly improved zinc, copper and silver production and improved cash costs.

• The Long Nickel Operation’s profit before tax fell by $12.3 million due to 21.4% lower realised nickel prices and a lack of $10.5 million hedging gains which were available in the prior half-year. Offsetting these were 17.3% lower cash costs per payable pound.

Further details are available in the Review of Operations section of the Directors’ Report.

Interim Dividend

The Company paid a final 2012/13 fully franked dividend of 1 cent per share in September 2013.

The Company will pay a fully franked interim dividend of 3 cents per share on 28 March 2014. The record date of the dividend will be 12 March 2014.

Other matters

The Company did not gain or lose control over any entity during the period.

The accounts have been reviewed by BDO Audit (WA) Pty Ltd and they are not subject to dispute or qualification.

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INDEPENDENCE GROUP NL ABN 46 092 786 304

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

CONTENTS	PAGE
Directors’ Report ……………………………………………………………………..	3
Auditor’s Independence Declaration …………………………………………........	6
Consolidated Statement of Profit or Loss and Other Comprehensive Income …	7
Consolidated Balance Sheet ………………………………………………………..	8
Consolidated Statement of Cash Flows ……………………………………………	9
Consolidated Statement of Changes in Equity ……………………………………	10
Notes to the Financial Statements ………………………………………………….	11
Directors’ Declaration ………………………………………………………………..	20
Independent Auditor’s Review Report to the Members …………………………..	21

The interim financial statements do not include all the notes of the type normally included in the annual financial statements. Accordingly, this report is to be read in conjunction with the annual financial statements for the year ended 30 June 2013 and any public announcements made by Independence Group NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Report

Your directors present their report on the consolidated entity consisting of Independence Group NL and the entities it controlled at the end of, or during, the half-year ended 31 December 2013.

Directors

The following persons were directors of Independence Group NL during the whole of the interim period and up to the date of this report unless otherwise noted:

Peter Bilbe (Chairman) Geoffrey Clifford (Non-executive Director) Rod Marston (Non-executive Director) Kelly Ross (Non-executive Director)

Christopher Bonwick was Managing Director from the beginning of the half-year until his resignation on 15 November 2013.

Review of Operations

A summary of consolidated revenues and results for the half-year by significant industry segment is set out below:

Long Nickel Operation Jaguar/Bentley Copper and Zinc Operation Tropicana Gold Project Feasibility and Regional Exploration Activities Unallocated revenue Unallocated revenue less unallocated expenses Profit before income tax Income tax expense Profit after income tax Net profit attributable to members of Independence Group NL	Segment revenues 2013 2012 $’000 $’000 55,799 69,104 77,951 50,764 32,780 - 16 4 164 2,274	Segment results 2013 2012 $’000 $’000 14,087 26,374 24,600 5,795 6,522 (1,033) (4,662) (2,647) - -
	166,710 122,146	40,547 28,489 (9,035) (4,948)
		31,512 23,541 (10,020) (7,043)
		21,492 16,498
		21,492 16,498

Comments on the operations and the results of those operations are set out below:

a) Long Nickel Operation

Segment revenue and results of the Long Nickel Operation were down 19% and 46% respectively, primarily impacted by a combination of 21.4% lower realised A$ nickel prices and $10,457,000 hedging gains of the prior period not available in the current half-year. Offsetting these were 17.3% lower C1 cash costs and royalties per payable pound nickel. Refer below for key production and financial statistics.

	December 2013	December 2012
Long Nickel Operation			Variance
Ore mined (t)	137,634	142,483	-3.4%
Grade mined (%)	4.16	3.93	5.9%
Contained nickel metal (t)	5,729	5,598	2.3%
Payable nickel metal (t)	3,449	3,379	2.1%
Nickel C1 cash costs & royalties (A$ per pound)	3.59	4.34	-17.3%
Realised A$ nickel price (A$ per pound)	7.12	9.06	-21.4%

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Report

Review of Operations (continued)

b) Jaguar/Bentley Copper and Zinc Operation

The Jaguar/Bentley Operation continued to improve significantly over the previous corresponding half-year. The segment’s results rose to $24,600,000 compared to $5,795,000 in the prior period. Segment revenues increased by 54% to $77,951,000. The result is primarily due to significantly improved production statistics; primarily higher copper, zinc and silver grades and payable metal, notwithstanding similar realised or lower realised prices for base metals and silver. The table below outlines key production and financial statistics.

Jaguar Operation	December 2013	December 2012	Variance
Ore mined (t)	210,266	231,401	-9.1%
Zinc grade (%)	10.28	8.93	15.1%
Copper grade (%)	1.94	1.51	28.5%
Silver grade (g/t)	132	128	3.1%
Gold grade (g/t)	0.48	0.25	92.0%
Contained zinc metal (t)	19,573	15,630	25.3%
Contained copper metal (t)	3,741	2,567	45.7%
Payable zinc metal (t)	16,299	12,985	25.5%
Payable copper metal (t)	3,598	2,463	46.1%
Payable silver metal (oz)	544,792	456,649	19.3%
Payable gold metal (oz)	1,958	1,136	72.4%
Zinc C1 cash costs & royalties (A$ per pound)	0.34	0.51	-33.3%
Realised A$ zinc price (A$ per pound)	0.96	0.94	2.1%
Realised A$ copper price (A$ per pound)	3.56	3.62	-1.6%

c) Tropicana Gold Project

This division consists of the Group’s interest in the Tropicana Joint Venture. The interest, which is held 30% by the Company and 70% by AngloGold Ashanti Australia Limited, comprises the Tropicana Gold Mine (“Tropicana”) which is a joint operation between the Company and AngloGold Ashanti as manager of the operation, and brownfields and regional exploration activities over a project area in excess of 10,300 square kilometres.

Commissioning of Tropicana commenced during the half-year. A maiden gold pour occurred in late September 2013 and total 100% attributable gold poured for the December 2013 half-year was 95,050 ounces.

The segment derived revenue totalling $32,780,000 which includes a reversal of unrealised hedge gains recorded at 30 June 2013 of $1,232,000 in relation to the mark-to-market of zero cost gold collar options. The Company’s attributable share of gold production for the period was 28,515 ounces. 24,740 ounces were refined and sold at half-year end. Cash costs per ounce produced were $612. The Company has also adopted a recommendation from the World Gold Council to report an All-in Sustaining Costs metric (“AISC”). AISC per ounce sold was $687. AISC comprise in addition to cash costs; capitalised sustaining deferred waste stripping costs, sustaining exploration costs, joint venture management fees, sustaining capital ($nil for the period) and non-cash rehabilitation costs.

The Company’s total gold production over the first 3 years is estimated to average between 141,000 - 147,000 ounces per annum with cash costs estimated to be in the range A$590 - 630 per ounce of gold. Forecast mine life is in excess of 10 years.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Report

Review of Operations (continued)

• d) Feasibility and Regional Exploration Activities

The feasibility and regional exploration activities reflected in this segment relate to exploration expenditure, feasibility studies and scoping studies incurred on projects excluding Tropicana and the Long Nickel Operation.

Regional exploration was initiated on the new Lake MacKay Project in the Northern Territory where surface geochemistry recently identified 65 gold anomalies for follow-up testing. A number of new greenfields joint venture agreements have been commenced including the Darlot JV north of the Jaguar Operations and the Bryah Basin JV west of DeGrussa, both of which are prospective for Volcanogenic Massive Sulphide style base metals, and also the Rebecca JV east of Kalgoorlie which is prospective for Kambalda style Ni-Cu mineralisation.

Substantial progress has been made on a Feasibility Study on the Stockman zinc-copper-silver-gold project (100% IGO). Submission of a draft Environmental Effects Statement (EES) to the Victorian government was made just prior to the end of 2013. After extensive consultation, within government and throughout the community, the Company believes all key issues have been adequately addressed and full permitting should be achieved around mid-2014. In parallel with the permitting tasks, work recommenced late in 2013 to examine optimisation opportunities with a view to concluding that work simultaneously with permitting in mid-2014.

The Karlawinda Gold Project (100% IGO) continues to be an active exploration area with significant potential for the Company.

Events subsequent to balance date

On 26 February 2014, the Company announced that an interim dividend would be paid on 28 March 2014. The dividend is 3 cents per share and will be fully franked.

Other than the above, there has been no other transaction or event of a material and unusual nature likely, in the opinion of the Directors, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future reporting periods.

Auditor independence declaration

The Auditor’s Independence Declaration on page 6 required under section 307C of the Corporations Act 2001 forms part of the Director’s Report for the six months ended 31 December 2013.

Rounding of amounts to nearest thousand dollars

The Company is of a kind referred to in Class Order 98/100 issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial statements. Amounts in the directors’ report and financial statements have been rounded off to the nearest thousand dollars in accordance with that Class Order.

This report is made in accordance with a resolution of the Directors.

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P R Bilbe Chairman Perth 26 February 2014

5

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF INDEPENDENCE GROUP NL

As lead auditor for the review of Independence Group NL for the half-year ended 31 December 2013, I declare that to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Independence Group NL and the entities it controlled during the period.

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BRAD MCVEIGH Director

Perth, 26 February 2014

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2013

Notes Revenue from continuing operations Other income Mining and processing costs Employee benefits expense Share-based payments expense Fair value adjustment of listed investments Depreciation and amortisation expenses Exploration costs expensed Impairment of exploration and evaluation expenditure Rehabilitation and restoration borrowing costs Ore tolling expense Royalty expense Shipping and wharfage costs Net losses on fair value financial liabilities Borrowing and finance costs Other expenses Profit before income tax expense Income tax expense Profit for the period Other comprehensive income Items that will be reclassified to profit or loss Effective portion of changes in fair value of cash flow hedges, net of tax Other comprehensive loss for the period, net of tax Total comprehensive income for the period Profit attributable to the members of Independence Group NL Total comprehensive income for the period attributable to the members of Independence Group NL Earnings per share for profit attributable to the ordinary equity holders of the Company Basic earnings per share Diluted earnings per share	31 December 31 December 2013 2012 $’000 $’000 166,710 122,146 - 804 (44,709) (34,803) (29,905) (27,097) (1,636) (1,034) 633 (367) (25,469) (11,613) (2,135) (975) (4,350) (2,581) (310) (134) (6,109) (5,628) (6,092) (4,207) (8,910) (5,893) - (665) (1,881) (768) (4,325) (3,644)
	31,512 23,541 (10,020) (7,043)
	21,492 16,498 (1,424) (7,067)
	(1,424) (7,067)
	20,068 9,431
	21,492 16,498
	20,068 9,431
	Cents Cents 9.21 7.08 9.14 7.05

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Balance Sheet As at 31 December 2013

Notes Current assets Cash and cash equivalents Trade and other receivables Inventories Financial assets Derivative financial instruments 7 Total current assets Non-current assets Other receivables Property, plant and equipment 3 Mine properties 4 Exploration and evaluation expenditure 5 Deferred tax assets Intangible assets 6 Derivative financial instruments 7 Total non-current assets Total assets Current liabilities Trade and other payables Borrowings Derivative financial instruments 7 Provisions Total current liabilities Non-current liabilities Borrowings Provisions Deferred tax liabilities Total non-current liabilities Total liabilities Net assets Equity Contributed equity 8 Reserves 9 Accumulated losses 9 Total equity	31 December 30 June 2013 2013 $‘000 $‘000 45,828 27,215 25,341 24,159 39,673 22,760 1,800 1,092 7,768 6,946
	120,410 82,172
	84 604 52,221 36,278 359,801 349,115 210,393 199,392 162,594 152,261 41 179 - 1,981
	785,134 739,810
	905,544 821,982
	50,944 53,599 4,865 6,030 2,710 1,910 2,348 2,446
	60,867 63,985
	56,794 11,524 24,019 21,724 95,024 75,280
	175,837 108,528
	236,704 172,513
	668,840 649,469
	735,060 734,007 13,491 14,332 (79,711) (98,870)
	668,840 649,469

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Cash Flows For the half-year ended 31 December 2013

Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest and other costs of finance paid Exploration expenditure Receipts from other operating activities Net cash provided by operating activities Cash flows from investing activities Interest received Dividends received Payments for purchase of listed and unlisted investments Proceeds from the sale of property, plant and equipment and other investments Payments for property, plant and equipment Payments for development expenditure Payments for exploration and evaluation expenditure Net cash used in investing activities Cash flows from financing activities Proceeds from borrowings Costs associated with borrowings Repayment of finance lease liabilities Repayment of borrowings Payment of dividends Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	31 December 2013 31 December 2012 $‘000 $‘000 164,732 139,978 (105,386) (99,915)
	59,346 40,063 (361) (759) (2,135) (1,131) 100 7
	56,950 38,180
	296 2,775 5 - (75) (50) - 1,255 (5,580) (3,611) (51,151) (95,929) (22,112) (20,434)
	(78,617) (115,994)
	47,000 - (1,041) - (3,346) (6,590) - (3,832) (2,333) (2,329)
	40,280 (12,751)
	18,613 (90,565) 27,215 192,678
	45,828 102,113

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Changes in Equity For the half-year ended 31 December 2013

At 1 July 2012 Profit for the period Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax Total comprehensive income (loss) for the period Transactions with owners in their capacity as owners Transaction cost on shares issued, net of tax Dividends paid Share-based payments At 31 December 2012 At 1 July 2013 Profit for the period Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax Total comprehensive income (loss) for the period Transactions with owners in their capacity as owners Issue of shares – Employee Performance Rights Plan Dividends paid Share-based payments expense At 31 December 2013	Contributed Equity Accumulated Losses Share- Based Payments Reserve Hedging Reserve Acquisition Reserve $’000 $’000 $’000 $’000 $’000 734,007 (112,500) 4,919 12,557 3,142 - 16,498 - - - - - - (7,067) -	Total Equity $’000 642,125 16,498 (7,067)
	- 16,498 - (7,067) - (338) - - - - - (2,329) - - - - - 1,034 - -	9,431 (338) (2,329) 1,034
	733,669 (98,331) 5,953 5,490 3,142	649,923
	734,007 (98,870) 8,793 2,397 3,142 - 21,492 - - - - - - (1,424) -	649,469 21,492 (1,424)
	- 21,492 - (1,424) - 1,053 - (1,053) - - - (2,333) - - - - - 1,636 - -	20,068 - (2,333) 1,636
	735,060 (79,711) 9,376 973 3,142	668,840

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 1. Basis of preparation of half-year financial statements

This general purpose financial report for the half-year reporting period ended 31 December 2013 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This half-year financial report does not include all the notes of the type normally included in an annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. Accordingly, this half-year financial report is to be read in conjunction with the annual financial report for the year ended 30 June 2013 and any public announcements made by Independence Group NL during the halfyear reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The same accounting policies and methods of computation have generally been followed in these half-year financial statements as compared with the most recent annual financial statements, except as follows:

Changes in accounting policies

The following amended Standards have been adopted from 1 July 2013. Adoption of these Standards did not have any effect on the financial position or performance of the Group.

• Principles of consolidation – new standards AASB 10 Consolidated Financial Statements and AASB 11 Joint Arrangements

AASB 10 was issued in August 2011 and replaces the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements and in Interpretation 112 Consolidation – Special Purpose Entities. Under the new principles, the Group controls an entity when the group is exposed to, or has rights to, variable returns from its involvements with the entity and has the ability to affect those returns through its power over the entity.

The Group has reviewed its investments in other entities to assess whether the consolidation conclusion in relation to these entities is different under AASB 10 than under AASB 127. No differences were found and therefore no adjustments to any of the carrying amounts in the financial statements are required as a result of the adoption of AASB 10.

Under AASB 11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has, rather than the legal structure of the joint arrangement. Independence Group NL has assessed the nature of its joint arrangement and determined it to be a joint operation.

The accounting for the Group’s joint operations has not changed as a result of the adoption of AASB 11. The Group continues to recognise its direct right to the, and its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate headings.

• Accounting for employee benefits – revised AASB 119 Employee Benefits

The changes to this standard did not have any impact on the Group.

Comparatives have been reclassified to be consistent with the current year presentation. The reclassification does not have an impact on the results presented.

Impact of standards issued but not effective

From 1 July 2014, the Group is required to adopt Standards and Interpretations mandatory for annual periods beginning on or after 1 January 2014. The Group has reviewed the impact of these Standards and Interpretations and are continuing to assess whether they will have a significant effect on the financial position or performance of the Group.

The Company has not elected to early adopt any new standards or amendments.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 2. Segment information

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions. The Group operates predominantly in only one geographic segment (ie. Australia) and has identified four operating segments, being the Long Nickel Operation which is disclosed under the Nickel Mining segment, the Jaguar/Bentley Operation which is disclosed under the Copper and Zinc Mining segment, the Tropicana Gold Project, and other regional exploration, scoping studies and feasibility which are disclosed under Feasibility and Regional Exploration Activities.

The Long Nickel Operation produces primarily nickel, together with copper, from which its revenue is derived. All revenue derived by the Long Nickel Operation is received from one customer, being BHP Billiton Nickel West Pty Ltd. The Registered Manager of the Long Nickel Operation is responsible for the budgets and expenditure of the operation, which includes exploration activities on the mine’s tenure. The Long Nickel Operation and exploration properties are owned by the Group’s subsidiary Lightning Nickel Pty Ltd.

The Jaguar/Bentley Operation primarily produces copper and zinc concentrate. Revenue is derived from a number of different customers. The Registered Manager of the Jaguar/Bentley Operation is responsible for the budgets and expenditure of the operation, responsibility for ore concentrate sales rests with corporate management. The Jaguar/Bentley Operation and exploration properties are owned by the Group’s wholly owned subsidiary Jabiru Metals Limited.

The Tropicana Gold Project represents the Group’s 30% joint venture interest in the Tropicana Joint Venture. AngloGold Ashanti Australia is the manager of the project and holds the remaining 70% interest. Programs and budgets are provided by AngloGold Ashanti Australia Limited and are considered for approval by the Independence Group NL Board. The project comprises regional and brownfields exploration tenements covering in excess of 10,300 square kilometres, and the Tropicana gold mine which had its maiden gold pour in late September 2013. The Project is allocated its own segment.

The Group’s Exploration Manager and its Development Manager are responsible for budgets and expenditure relating to the Group’s regional exploration, scoping studies and feasibility studies. The Feasibility and regional exploration division does not normally derive any income. Should a project generated by the Feasibility and regional exploration division commence generating income or lead to the construction or acquisition of a mining operation, that operation would then be disaggregated from Feasibility and regional exploration and become reportable as a separate segment.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 2. Segment information (continued)

Half-year ended 31 December 2013 Sales to external customers Other revenue Total segment revenue Segment net operating profit (loss) before income tax Segment assets Segment liabilities	Nickel Mining Copper and Zinc Mining Tropicana Gold Project Feasibility and Regional Exploration Activities Total $’000 $’000 $’000 $’000 $’000 55,721 77,931 32,780 - 166,432 78 20 - 16 114
	55,799 77,951 32,780 16 166,546
	14,087 24,600 6,522 (4,662) 40,547
	104,416 90,998 413,139 182,610 791,163
	20,138 36,192 26,336 28,904 111,570

Half-year ended 31 December 2012 Sales to external customers Other revenue Total segment revenue Segment net operating profit (loss) before income tax Segment assets Segment liabilities	Nickel Mining Copper and Zinc Mining Tropicana Gold Project Feasibility and Regional Exploration Activities Total $’000 $’000 $’000 $’000 $’000 68,828 50,734 - - 119,562 276 30 - 4 310
	69,104 50,764 - 4 119,872
	26,374 5,795 (1,033) (2,647) 28,489
	143,573 109,268 256,020 163,234 672,095
	20,884 38,656 21,717 58,719 139,976

(i) A reconciliation of reportable segment revenue to total revenue is as follows:

Total segment revenue Interest revenue on corporate cash balances and other unallocated revenue Total revenue	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 166,546 119,872 164 2,274
	166,710 122,146

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 2. Segment information (continued)

(ii) A reconciliation of reportable segment profit (loss) to operating profit before income tax is as follows:

Total profit for reportable segments Interest revenue on corporate cash balances and other unallocated revenue Unrealised gains (losses) on financial assets Share-based payment expense Net losses on silver loan financing Depreciation and amortisation expense on corporate assets Borrowing and finance costs Other corporate costs and unallocated other income Profit before income tax from continuing operations

Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 40,547 28,489 164 2,274 633 (367) (1,636) (1,034) - (665) (520) (510) (1,510) - (6,166) (4,646)

31,512 23,541

(iii) A reconciliation of reportable segment assets to total assets is as follows:

Total assets for reportable segments Intersegment eliminations Unallocated assets Deferred tax assets Financial assets Cash and receivables held by the parent entity Office and general plant and equipment Total assets per the balance sheet	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 791,163 672,095 (66,138) (62,288) 162,594 150,702 1,751 2,737 13,385 47,816 2,789 2,781
	905,544 813,843

(iv) A reconciliation of reportable segment liabilities to total liabilities is as follows:

Total liabilities for reportable segments Intersegment eliminations Unallocated liabilities Deferred tax liabilities Corporate creditors and accruals Provision for employee entitlements Financial liabilities at fair value through profit or loss Bank loans Total liabilities per the balance sheet	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 111,570 139,976 (40,040) (65,189) 95,024 72,889 14,114 12,812 1,078 1,101 - 2,331 54,958 -
	236,704 163,920

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 3. Property, plant and equipment

Note 3. Property, plant and equipment
Property, plant and equipment Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows: Property, plant and equipment Carrying amount at beginning of the period Additions Depreciation expense Disposals Transfers from mine properties in development Carrying amount at end of the period	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 52,221 35,355
	36,278 37,173 6,303 4,875 (7,525) (6,689) (50) (4) 17,215 -
	52,221 35,355

Note 4. Mine properties

Note 4. Mine properties
Mine properties in development (a) Mine properties in production (b) Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows: (a) Mine properties in development Carrying amount at beginning of the period Additions Transfers to mine properties in production Transfers from exploration and evaluation Transfers to property, plant and equipment Borrowing costs capitalised Depreciation expense capitalised Carrying amount at end of the period (b) Mine properties in production Carrying amount at beginning of the period Additions Transfer from exploration and evaluation Transfer from mine properties in development Amortisation expense Transfers to inventories Carrying amount at end of the period	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 - 188,422 359,801 82,344
	359,801 270,766
	258,778 59,609 28,479 96,393 (271,095) - 336 32,420 (17,215) - 544 - 173 -
	- 188,422
	90,337 63,665 20,771 21,736 5,215 1,849 271,095 - (18,097) (4,906) (9,520) -
	359,801 82,344

* Transfers relate to commissioning and commencement of production of gold at the Tropicana Gold Mine during the half-year.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 5. Exploration and evaluation expenditure

Note 5. Exploration and evaluation expenditure
Exploration and evaluation expenditure Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows: Exploration and evaluation expenditure Carrying amount at beginning of the period Additions Transfer to mine properties in production Transfer to mine properties in development Disposals Impairment charge Carrying amount at end of the period	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 210,393 186,314
	199,392 203,371 20,902 20,000 (5,215) (1,849) (336) (32,420) - (207) (4,350) (2,581)
	210,393 186,314

An assessment is performed quarterly on the carrying value of capitalised exploration and evaluation. This assessment resulted in an impairment of exploration and evaluation to the profit or loss of $4,350,000 (2012: $2,581,000) during the period.

Note 6. Intangible assets

Intangible assets Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows: Intangible assets Carrying amount at beginning of the period Amortisation expense Carrying amount at end of the period	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 41 317
	179 454 (138) (137)
	41 317

Note 7. Derivative financial instruments

Current assets Commodity hedging contracts – at fair value through profit or loss Commodity hedging contracts – cash flow hedges Current liabilities Commodity hedging contracts – cash flow hedges Foreign currency hedging contracts – at fair value through profit or loss Foreign currency hedging contracts – cash flow hedges Non-current assets Commodity hedging contracts – cash flow hedges	Consolidated 31 December 2013 $’000 30 June 2013 $’000 2,144 - 5,624 6,946
	7,768 6,946
	283 - 845 - 1,582 1,910
	2,710 1,910
	- 1,981
	- 1,981

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 8. Contributed equity

Fully paid issued capital (a) Movements in shares on issue

	Consolidated	Consolidated
31	December	31 December
	2013	2012
	$‘000	$‘000
	735,060	733,669

(a) Movements in shares on issue
Balance at 1 July Issued during the year: - shares issued under the Employee Performance Rights Plan - transaction costs, net of tax Balance at 31 December	Half-year Half-year 2013 2013 2012 2012 No. of shares $’000 No. of shares $’000 232,882,535 734,007 232,882,535 734,007 441,370 1,053 - - - - - (338)
	233,323,905 735,060 232,882,535 733,669

Note 9. Reserves and retained earnings

Note 9. Reserves and retained earnings
(a) Reserves Share-based payments reserve Hedging reserve Acquisition reserve (b) Accumulated losses A reconciliation of accumulated losses for the half-year is as follows: Balance at the beginning of the half-year Net profit for the half-year Dividends paid Balance at the end of the half-year	Consolidated 31 December 2013 30 June 2013 $‘000 $‘000 9,376 8,793 973 2,397 3,142 3,142
	13,491 14,332
	Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 (98,870) (112,500) 21,492 16,498 (2,333) (2,329)
	(79,711) (98,331)

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 10. Fair value measurement of financial instruments

a) Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

• (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

• (b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and

• (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value at 31 December 2013 and 30 June 2013 on a recurring basis:

At 31 December 2013 Financial assets Derivative instruments Commodity hedging contracts Listed and unlisted investments Financial liabilities Derivative instruments Commodity hedging contracts Foreign exchange hedging contracts At 30 June 2013 Financial assets Derivative instruments Commodity hedging contracts Listed investments Financial liabilities Derivative instruments Foreign exchange hedging contracts	Level 1 Level 2 Level 3 $000 $000 $000 - 7,768 - 1,750 - 50	Total $000 7,768 1,800
	1,750 7,768 50	9,568
	- 283 - - 2,427 -	283 2,427
	- 2,710 -	2,710
	Level 1 Level 2 Level 3 $000 $000 $000 - 8,927 - 1,042 - 50	Total $000 8,927 1,092
	1,042 8,927 50	10,019
	- 1,910 -	1,910
	- 1,910 -	1,910

The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 31 December 2013 and did not transfer any fair value amounts between the fair value hierarchy levels during the half-year ended 31 December 2013.

b) Valuation techniques used to derive level 2 and level 3 fair values

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:

• The use of quoted market prices or dealer quotes for similar instruments.

• The fair value of commodity and forward foreign exchange contracts is determined using forward commodity and exchange rates at the balance sheet date.

• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.

All of the resulting fair value estimates are included in level 2 except for unlisted equity securities which are included in level 3.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the half-year ended 31 December 2013

Note 10. Fair value measurement of financial instruments (continued)

c) Fair value of other financial instruments

The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. These instruments had the following fair value at 31 December 2013.

At 31 December 2013 Current assets Cash and cash equivalents Current liabilities Lease liabilities Non-current liabilities Bank loans Lease liabilities Note 11. Dividends paid and proposed (a) Dividends paid Final dividend for the year ended 30 June 2013 of 1 cent (2012: 1 cent) per fully paid share Total dividends paid during the half-year (b) Unrecognised amounts In addition to the above dividends, since half-year end the Directors have recommended the payment of an interim dividend of 3 cents (2012: 1 cent) per fully paid share, fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 28 March 2014, but not recognised as a liability at half-year end is:	Carrying Amount Fair Value $000 $000 45,828 45,828 45,828 45,828 4,865 5,209 4,865 5,209 54,958 57,000 1,836 1,893 56,794 58,893 Consolidated 31 December 2013 31 December 2012 $‘000 $‘000 2,333 2,329
	2,333 2,329
	7,000 2,329

Note 12. Contingent assets and liabilities

(a) Contingent assets

There have been no material changes in contingent assets since the last annual reporting date.

(b) Contingent liabilities

Guarantees relating to environmental and rehabilitation bonds have increased to $15,756,000 (30 June 2013: $15,249,000). There have been no other changes in contingent liabilities since the last annual reporting date.

Note 13. Events subsequent to balance date

On 26 February 2014, the Company announced a fully franked interim dividend of 3 cents per share to be paid on 28 March 2014 (refer note 11 for details).

Other than the above, there has been no transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial periods.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Declaration

The Directors of the Company declare that:

• (a) The financial report and notes of Independence Group NL for the half-year ended 31 December 2013 are in accordance with the Corporations Act 2001 , including:

• (i) Giving a true and fair view of the financial position as at 31 December 2013 and the performance for the half-year ended on that date of the consolidated entity; and

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

• (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

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P R Bilbe Chairman

Perth

26 February 2014

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Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Independence Group NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Independence Group NL, which comprises the consolidated balance sheet as at 31 December 2013, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Independence Group NL, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Independence Group NL, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Independence Group NL is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001

BDO Audit (WA) Pty Ltd

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Brad McVeigh Director

Perth, 26 February 2014

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