IGO LIMITED — Interim / Quarterly Report 2016

Feb 16, 2016

17/02/2016

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FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 AND APPENDIX 4D

Independence Group NL (IGO or the Company) reports its results for the half-year ended 31 December 2015 (H1 FY2016).

Key Points

• Revenue of $220.2 million (H1 FY2015: $274.3 million), down 20% due to a combination of lower product sales and lower realised base metal prices during the period.

• Loss after tax of $78.0 million includes the Sirius acquisition and integration costs totalling $66.9 million (H1 FY2015: Profit $49.5 million). Results include the impairment of the carrying value of exploration assets by $35.5 million due to lower forecast base metal prices.

• Operating cashflows of $48.9 million (H1 FY2015: $113.9 million), reduced by 57%.

• The Directors have not recommended an interim dividend, with the Company opting to retain cash to support future growth investments.

• Ongoing improvement programs continued to improve cost structures across all operations.

• The December 2015 quarter saw production and cash costs at Tropicana and Long fall within guidance range and the trend is expected to continue in the March quarter.

• The Company completed the acquisition and integration of Sirius Resources NL (Sirius) during the half-year.

• The Nova Project Optimisation Study was completed during the half-year, significantly enhancing the Project value. The Nova Project remains on schedule and on budget.

Financial Summary

HALF-YEAR ENDED 31 DECEMBER	2015	2014	INC/(DEC)
Total Revenue	$220.2M	$274.3M	(20%)
Underlying EBITDA1	$69.6M	$121.4M	(43%)
(Loss) Profit After Tax	($78.0M)	$49.5M	n/a
Net Cash Flow From Operating Activities	$48.9M	$113.9M	(57%)
Cash Outflow From Investing Activities	$293.6 M	$38.7M	(659%)

1 Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, finance costs, interest income, asset impairments, depreciation and amortisation.

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HALF-YEAR ENDED 31 DECEMBER	2015	2014	INC/(DEC)
Net Cash Flows from Financing Activities	$181.4M	($38.9M)	566%
Interim Dividend – fully franked	-	6 cents	n/a
	Dec 2015	June 2015
Total Assets	$1,858.0M	$820.2M	126%
Cash	$58.9M	$121.3M	(51%)
Total Liabilities	$422.4M	$154.7M	173%
Shareholders’ Equity	$1,435.6M	$665.5M	116%
Net tangible assets per share	$3.72	$2.78	34%

Operational Summary

• Tropicana [IGO 30%]: IGO’s attributable gold production from Tropicana for H1 FY2016 was 75,584oz Au (H1 FY2015: 77,248oz Au) at a cash cost[2] of $625/oz Au (H1 FY2015: $549/oz Au).

• Long [IGO 100%]: Production for H1 FY2016 was 4,508 tonnes of contained nickel metal (H1 FY2015: 5,123t) at a cash cost[2] of $3.97/Ib Ni (H1 FY2015: $4.00/Ib Ni).

• Jaguar [IGO 100%]: H1 FY2016 production was 20,721 tonnes of contained zinc metal (H1 FY2015: 25,373t) and 2,876 tonnes of contained copper metal (H1 FY2015: 4,807t) at a cash cost[2] of $0.67/Ib Zn (H1 FY2015: $0.23/Ib Zn).

Results for the Half-Year Ended 31 December 2015

Revenue from continuing operations for H1 FY2016 decreased by 20% to $220.2 million (H1 FY2015: $274.3 million). Lower revenues were attributed to a number of factors:

• Gold ounces sold were 4% lower but this was offset by higher average realised gold prices which increased during the period by $152 per ounce (or 11%).

• Realised base metal prices (period on period) for nickel, copper and zinc were 32%, 23% and 18% lower respectively.

• Payable zinc sold was 27% lower than the December 2014 half year result, though payable zinc produced was only 19% lower (the December 2014 half year included sales of stocks produced in the June 2014 half year).

• Payable copper sold was 27% lower.

• Payable nickel sold was 12% lower, however a larger impact on the revenue result was pricedriven, with realised nickel prices achieved for the December 2015 half year being 33% lower at $5.49/lb.

Profit after tax was impacted by the Sirius acquisition and integration costs of $66.9 million, as well as the after tax impairment expense of the Stockman Project located in Victoria, of $22.8 million.

2 Cash costs are reported inclusive of royalties and after by-product credits on per unit of payable metal.

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Nova Project Update

The Nova Project remains on schedule and on budget. Construction at the Nova Project was 68% complete as at 31 January 2016, with first concentrate production forecast for December 2016. As at 31 December 2015 a further $260 million of capital investment remains outstanding to complete the Project. The Project Optimisation Study, released in December 2015, delivered a 36% increase in project NPV.

Cash Flow Statement

Net cash flow from operating activities was $48.9 million (H1 FY2015: $113.9 million). The decrease in operating cash flow primarily reflects lower revenue during the half-year. Cash outflows from operations increased marginally by 2%. Cash flow from operating activities also included $12.3 million in acquisition and integration costs related to the Sirius acquisiton.

Cash used in investing activities was $293.6 million (H1 FY2015: $38.7 million), with the increase relating primarily to the acquisition of Sirius during the period. Cash consideration of $250.3 million was paid to Sirius shareholders, offset by cash balances acquired on acquisition of $48.2 million, resulting in a net cash outflow of $202.1 million. Capitalised development expenditure was higher for the period at $75.3 million (H1 FY2015: $23.6 million), with $58.5 million of the increase attributable to expenditure on the development of the Nova Project.

Net cash inflows from financing activities were $181.4 million (H1 FY2015: cash outflows of $38.9 million) and included debt drawdown of $200.0 million to partially fund the payment of the Acquisition Scheme for Sirius shareholders. This drawdown was offset by the payment of the FY2015 Final Dividend of $12.8 million.

Balance Sheet

Cash and cash equivalents at 31 December 2015 totalled $58.9 million (30 June 2015: $121.3 million), a net decrease of $62.4 million for H1 FY2016. At 31 December 2015, the Company had drawn $200.0 million from its $550 million syndicated facility agreement.

Interim Dividend

The Company will not be paying an interim dividend for the current period.

The Underlying Profit After Tax (before abnormal items) for the first half was $13.5 million which, in accord with the Company’s stated dividend policy, would have delivered an interim dividend of 1 cent per share.

However, given lower base metals prices and the ongoing investments in growth to bring the Nova Project into production and to expand operations and extend mine life at Tropicana, management have recommended, and the Board has agreed that no interim dividend will be paid.

FY2016 Guidance

FY2016 production and cash cost guidance for Tropicana, Long and Jaguar remains unchanged, as follows:

MINING OPERATION	UNITS	H1 FY2016 ACTUAL	FULL YEAR FY2016 GUIDANCE - RANGE
Tropicana (IGO 30%)
Gold (100% basis)	ounces	251,945	430,000 to 470,000

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MINING OPERATION	UNITS	H1 FY2016 ACTUAL	FULL YEAR FY2016 GUIDANCE - RANGE
Gold(IGO’s 30% share)	ounces	75,584	129,000 to 141,000
Cash cost2	$/oz Au	$625	$640 to $710
All-in SustainingCosts3	$/oz Au	$801	$820 to $910
Long
Nickel (contained metal)	tonnes	4,508	8,500 to 9,000
Cash cost2	$/Ib Ni	$3.97	$3.50 to $4.00
Jaguar
Zinc in concentrate	tonnes	20,721	35,000 to 40,000
Copper in concentrate	tonnes	2,876	7,500 to 8,500
Cash cost2	$/Ib Zn	$0.67	$0.40 to $0.60

For further information contact:

Peter Bradford Managing Director Independence Group NL Telephone: 08 9238 8300

Joanne McDonald Company Secretary Independence Group NL

3 The Company uses the World Gold Council (WGC) for the All-in Sustaining Costs metric. See WGC’s website for details.

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Independence Group NL ABN 46 092 786 304

Interim report for the half-year ended 31 December 2015

ABN 46 092 786 304 Independence Group NL Interim report - 31 December 2015

Contents

Contents
	Page
Directors' report	1
Interim financial statements
Consolidated statement of profit or loss and other comprehensive income	6
Consolidated balance sheet	7
Consolidated statement of changes in equity	8
Consolidated statement of cash flows	9
Notes to the consolidated financial statements	10
Directors' declaration	21
Independent auditor's review report to the members	22

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2015 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 .

Independence Group NL

Independence Group NL Directors' report 31 December 2015

Directors' report

Your Directors present their report on the consolidated entity (also referred to hereafter as the Group) consisting of Independence Group NL (also referred to hereafter as the Company or IGO) and the entities it controlled at the end of, or during, the half-year ended ended 31 December 2015.

Directors

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

Peter Bilbe Peter Bradford Peter Buck Geoffrey Clifford Keith Spence Mark Bennett Neil Warburton

Mark Bennett and Neil Warburton were appointed as Non-executive Directors on 12 October 2015 and continue in office at the date of this report.

Review of operations

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

Tropicana Operation Long Operation Jaguar Operation New business and regional exploration activities Unallocated revenue Unallocated revenue less unallocated expenses (Loss) profit before income tax Income tax benefit (expense) (Loss) profit after income tax Net (loss) profit attributable to members of Independence Group NL	Segment revenues Segment results 2015 $'000 2014 $'000 2015 $'000 2014 $'000	Segment revenues Segment results 2015 $'000 2014 $'000 2015 $'000 2014 $'000
	119,491 109,762 33,828 56,971 65,821 107,304 17 9 997 214	41,631 37,496 (1,734) 17,803 1,430 37,829 (47,890) (15,412) - -
	220,154 274,260	(6,563) 77,716 ) (78,535) (7,969)
	- (9,259 220,154 265,001 - - 220,154 265,001 220,154 265,001
		(85,098) 69,747 7,090 (20,225)
		(78,008) 49,522
		(78,008) 49,522

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

Tropicana Operation

This division consists of the Group’s interest in the Tropicana Gold Mine which is held 30% by the Company and 70% by AngloGold Ashanti Australia Limited (AngloGold Ashanti).

Revenue derived by the segment increased by 9% to $119.5 million. The average A$ gold price achieved increased by $170 per ounce or 12% compared to the previous period whilst gold sold to our account decreased by 3,328 ounces or 4%. Cash costs per ounce produced were $625 or 14% higher. Cash costs comprise the costs of producing gold at the mine site and include credit adjustments for waste stripping costs and inventory build and draw costs. All-in Sustaining Costs (AISC) per ounce sold was steady at $801. In addition to cash costs, AISC includes capitalised sustaining deferred waste stripping costs, sustaining exploration costs, sustaining capital and non-cash rehabilitation accretion costs.

During the period, there has been a steady effort to increase processing plant throughput. Annualised throughput continued to trend higher with an annualised rate of 6.5Mtpa being achieved in the December quarter (September quarter: 6.2Mtpa and June quarter: 5.7Mtpa).

The table below outlines key production and financial statistics.

Independence Group NL

1

Independence Group NL Directors' report 31 December 2015 (continued)

Review of operations (continued)

Tropicana Operation (continued)

Tropicana Operation (continued)	Tropicana Operation (continued)	Tropicana Operation (continued)	Tropicana Operation (continued)
Tropicana Operation December 2015 December 2014 Variance (%)
Gold ore mined (>0.6g/t Au) (‘000 wmt)	4,370	5,375	-18.7
Gold ore mined (>0.4 and <0.6g/t Au) (‘000 wmt)	582	831	-30.0
Waste mined (‘000 wmt)	23,799	22,141	7.5
Gold grade mined (>0.6g/t Au) (g/t)	2.16	2.17	-0.5
Ore milled (‘000 wmt)	3,182	2,849	11.7
Gold grade milled (g/t)	2.76	3.10	-11.0
Metallurgical recovery (%)	89.7	90.2	-0.6
Gold produced (ounces)	251,945	257,494	-2.2
Gold refined and sold (IGO 30% share) (ounces)	76,055	79,383	-4.2
Cash costs (A$ per ounce produced)	625	549	13.8
All-in Sustaining Costs (AISC) (A$ per ounce sold)**	801	791	1.3
Realised A$ goldprice(A$ per ounce sold)	1,547	1,377	12.3

**All-in Sustaining Costs (AISC) is a measure derived by the World Gold Council. On 27 June 2013, the Council released a publication outlining definitions of both cash costs and AISC.

Long Operation

Segment revenue and segment results were subdued relative to the previous period. Average nickel prices realised decreased by 33% during the half-year and payable nickel tonnes were reduced by 12% following a significant restructuring that was implemented at the mine during the half-year in response to the weakness in nickel prices. This action was taken in order to ensure that the mine remains profitable and sustainable in the future. A decision was made to focus on longhole stoping, supported by twin boom jumbo development. Other mining methods and activities, including mechanised cut and fill, air-leg mining and single boom jumbo were discontinued with effect from 9 September 2015. Subsequently, in January 2016, exploration at the Long Operation was discontinued.

Refer below for key production and financial statistics.

Refer below for key production and financial statistics.	Refer below for key production and financial statistics.	Refer below for key production and financial statistics.	Refer below for key production and financial statistics.
Long Operation December 2015 December 2014 Variance (%)
Ore mined (t)	123,682	124,196	-0.4
Grade mined (%)	3.64	4.12	-11.6
Contained nickel metal (t)	4,508	5,123	-12.0
Payable nickel metal (t)	2,716	3,097	-12.3
Nickel C1 cash costs & royalties (A$ per payable pound)	3.97	4.00	-0.8
Realised A$nickelprice(A$ perpound)	5.49	8.15	32.6

Jaguar Operation

The Jaguar Operation continued to deliver improved mining and milling production rates. Ore milled of 256,160 tonnes during the half-year comprised an increase quarter on quarter within the half-year such that the December 2015 quarter annualised to a Company record throughput of 530,000 tonnes. Segment revenue, however, decreased by 39% to $65.8 million whilst the segment result was $1.4 million. The result was primarily revenue related with 8% lower average copper and zinc prices achieved during the half-year relative to the previous corresponding period. Zinc C1 costs and royalties were 0.67 per payable pound against 0.23 for the previous period. This was due to payable zinc, copper and silver being lower by 19%, 40% and 40% respectively, primarily due to lower feed grades for all metals processed during the period.

The following table outlines key production and financial statistics.

Independence Group NL

2

Independence Group NL Directors' report 31 December 2015 (continued)

Review of operations (continued)

Jaguar Operation (continued)

Jaguar Operation (continued)	Jaguar Operation (continued)	Jaguar Operation (continued)	Jaguar Operation (continued)
Jaguar Operation December 2015 December 2014 Variance (%)
Ore mined (t)	253,709	250,334	1.4
Ore milled (t)	256,160	254,371	0.7
Zinc grade (%)	9.14	11.52	-20.7
Copper grade (%)	1.35	2.16	-37.5
Silver grade (g/t)	122	179	-31.8
Gold grade (g/t)	0.74	0.70	5.7
Contained zinc metal (t)	20,721	25,373	-18.3
Contained copper metal (t)	2,876	4,807	-40.2
Payable zinc metal (t)	17,191	21,203	-18.9
Payable copper metal (t)	2,766	4,618	-40.1
Payable silver metal (oz)	491,218	818,151	-40.0
Payable gold metal (oz)	2,179	2,373	-8.2
Zinc C1 cash costs & royalties (A$ per payable pound)	0.67	0.23	191.3
Realised A$ zinc price (A$ per pound)	1.05	1.14	-7.9
Realised A$ copper price (A$ per pound)	3.15	3.41	-7.6
Realised A$silverprice(A$ per ounce)	18.44	19.34	-4.6

Nova Project

IGO completed the acquisition of Sirius Resources NL (Sirius) during the period. Sirius was an ASX listed minerals exploration and development company with a key focus on the development of the Nova Project, located east of Norseman in Western Australia.

On 25 May 2015, Sirius announced two separate but inter-conditional schemes of arrangement, being the Acquisition Scheme, whereby the Company would acquire all of the shares in Sirius, and the Demerger Scheme, under which Sirius would create a new listed company, S2 Resources Limited. Following the approval of the Schemes on 12 September 2015, the scheme participants received 0.66 new shares in IGO and $0.52 cash per Sirius ordinary share. The transaction was completed on 22 September 2015, resulting in cash consideration paid for the acquisition of Sirius of $250,585,000 plus the issue of 275,842,684 shares in IGO.

Suspension of trading of Sirius was in effect on close of business 10 September 2015. Implementation of the Schemes occurred on 22 September 2015 and integration of Sirius into the Group was completed during the December 2015 quarter. During this quarter, the Company also completed an optimisation study to bankable feasibility level which demonstrated a significant enhancement of the project value.

New Business and Regional Exploration Activities

The feasibility and regional exploration activities reflected in this segment relate to exploration expenditure, feasibility and evaluation studies and scoping studies incurred on the Group’s exploration prospects. Greenfields exploration activities during the half-year focused on:

• The Lake Mackay Project, specifically the Du Faur Project area, which is a Joint Venture with ABM Resources NL (ABM). The work program executed during the half-year has identified several multi-element soil anomalies. This has been followed up with a first-stage reconnaissance aircore drill program (94 holes for 3,216m). Significant drill intersections were returned from this program at the Bumblebee Prospect as released to the ASX on 6 October 2015 by ABM.

• Bryah Basin Joint Venture with Alchemy Resources Limited which included five RC holes and three RC/Diamond tails on the Neptune Prospect completed during the period. Drilling intersected multiple mineralised horizons with copper and/or gold anomalism.

• Salt Creek Joint Venture with AngloGold Ashanti, which comprises of a series of tenements on the eastern flank of the Tropicana Joint Venture. A combination of exploration techniques including soil geochemistry, MLEM, gravity and aircore drilling has been completed. A number of encouraging prospects have been developed with elevated Ni-Cu results.

Independence Group NL

3

Independence Group NL Directors' report 31 December 2015 (continued)

Matters subsequent to the end of the financial year

There has been no 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.

Rounding of amounts

The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the directors' report. Amounts in the directors' report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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

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Peter Bradford Managing Director

Perth, Western Australia 16 February 2016

Independence Group NL

4

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au

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DECLARATION OF INDEPENDENCE BY IAN SKELTON TO THE DIRECTORS OF INDEPENDENCE GROUP NL

As lead auditor for the review of Independence Group NL for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. 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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Ian Skelton

Director

BDO Audit (WA) Pty Ltd

Perth, 16 February 2016

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. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees

Independence Group NL

5

Independence Group NL Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2015

		31 December	31 December
	Notes	2015	2014
		$'000	$'000
Revenue		220,154	274,260
Other income		2,429	118
Mining, development and processing costs		(74,207)	(76,196)
Employee benefits expense		(35,401)	(31,776)
Share-based payments expense		(282)	(1,353)
Fair value movement of financial investments		(1,906)	158
Depreciation and amortisation expense		(52,783)	(48,286)
Exploration costs expensed		(11,753)	(12,876)
Impairment of exploration and evaluation expenditure	5	(35,518)	(2,133)
Rehabilitation and restoration borrowing expense		(231)	(308)
Royalty expense		(6,827)	(8,597)
Ore tolling expense		(5,915)	(5,839)
Shipping and wharfage costs		(8,832)	(11,779)
Borrowing and finance costs		(1,683)	(1,396)
Acquisition and other integration costs	14	(66,924)	-
Other expenses		(5,419)	(4,250)
(Loss) profit before income tax		(85,098)	69,747
Income tax benefit(expense)		7,090	(20,225)
(Loss) profit for the period		(78,008)	49,522
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		-	2,659
Exchange differences on translation of foreign operations		(18)	(2)
Other comprehensive income for the period, net of tax		(18)	2,657
Total comprehensive (loss) income for the period		(78,026)	52,179
(Loss) profit for the period attributable to members of Independence Group
NL		(78,008)	49,522
Total comprehensive (loss) income for the period attributable to the members
of Independence Group NL		(78,026)	52,179
		Cents	Cents
(Loss) earnings per share for (loss) profit attributable to the ordinary
equity holders of the Company:
Basic (loss) earnings per share		(20.24)	21.14
Diluted(loss)earningsper share		(20.24)	20.96

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Independence Group NL

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Independence Group NL Consolidated balance sheet As at 31 December 2015

		31 December	30 June
	Notes	2015	2015
		$'000	$'000
ASSETS
Current assets
Cash and cash equivalents		58,929	121,296
Trade and other receivables		28,996	22,086
Inventories		33,724	40,298
Financial assets at fair value through profit or loss		13,669	15,574
Derivative financial instruments	6	-	4,981
Total current assets		135,318	204,235
Non-current assets
Receivables		19	18
Inventories		36,648	24,979
Property, plant and equipment	3	49,793	47,244
Mine properties	4	1,327,925	303,300
Exploration and evaluation expenditure	5	107,534	109,930
Deferred tax assets		200,723	130,517
Total non-current assets		1,722,642	615,988
TOTAL ASSETS		1,857,960	820,223
LIABILITIES
Current liabilities
Trade and other payables		113,545	45,091
Borrowings	7	82	510
Derivative financial instruments	6	147	2,384
Provisions		2,246	2,659
Total current liabilities		116,020	50,644
Non-current liabilities
Borrowings	7	194,471	-
Derivative financial instruments	6	-	717
Deferred tax liabilities		70,157	73,980
Provisions		41,718	29,387
Total non-current liabilities		306,346	104,084
TOTAL LIABILITIES		422,366	154,728
NET ASSETS		1,435,594	665,495
EQUITY
Contributed equity	8	1,601,458	737,324
Reserves	9(a)	12,950	16,191
Accumulated losses	9(b)	(178,814)	(88,020)
TOTAL EQUITY		1,435,594	665,495

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

Independence Group NL

7

Independence Group NL Consolidated statement of changes in equity For the half-year ended 31 December 2015

						Foreign
				Share-		currency
	Contributed	Accumulated	Hedging	based	Acquisition	translation	Total
	equity	losses	reserve	payments	reserve	reserve	equity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
At 1 July 2014	735,060	(139,031)	(2,038)	12,372	3,142	-	609,505
Profit for the period	-	49,522	-	-	-	-	49,522
Other comprehensive income
Effective portion of changes
in fair value of cash flow
hedges, net of tax	-	-	2,659	-	-	-	2,659
Currency translation
differences - currentperiod	-	-	-	-	-	(2)	(2)
Total comprehensive
income for the period	-	49,522	2,659	-	-	(2)	52,179
Transactions with
owners in their capacity
as owners:
Dividends paid	-	(11,713)	-	-	-	-	(11,713)
Share-based payments
expense	-	-	-	1,353	-	-	1,353
Issue of shares - Employee
Performance Rights Plan	2,264	-	-	(2,264)	-	-	-
Balance at 31 December
2014	737,324	(101,222)	621	11,461	3,142	(2)	651,324
At 1 July 2015	737,324	(88,020)	-	13,057	3,142	(8)	665,495
Profit for the period	-	(78,008)	-	-	-	-	(78,008)
Other comprehensive income
Currency translation
differences - currentperiod	-	-	-	-	-	(18)	(18)
Total comprehensive
income for the period	-	(78,008)	-	-	-	(18)	(78,026)
Transactions with
owners in their capacity
as owners:
Dividends paid	-	(12,786)	-	-	-	-	(12,786)
Share-based payments
expense	-	-	-	282	-	-	282
Issue of shares - Employee
Performance Rights Plan	3,505	-	-	(3,505)	-	-	-
Shares issued on acquisition
of subsidiary	860,629	-	-	-	-	-	860,629
Balance at 31 December
2015	1,601,458	(178,814)	-	9,834	3,142	**(26) **	1,435,594

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Independence Group NL

8

Independence Group NL Consolidated statement of cash flows For the half-year ended 31 December 2015

		31 December	31 December
	Notes	2015	2014
		$'000	$'000
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax)		236,480	274,316
Payments to suppliers and employees (inclusive ofgoods and services tax)		(175,249)	(145,969)
		61,231	128,347
Receipts from other operating activities		137	56
Interest and other costs of finance paid		(1,225)	(910)
Interest received		1,202	381
Payments for exploration expenditure		(12,462)	(13,946)
Net cash inflow from operating activities		48,883	113,928
Cash flows from investing activities
Payments for acquisition of subsidiary, net of cash acquired	14	(202,052)	-
Payments for property, plant and equipment		(6,966)	(7,543)
Proceeds from sale of property, plant and equipment and other investments		984	115
Payments for development expenditure		(75,313)	(23,560)
Payments for capitalised exploration and evaluation expenditure		(10,213)	(7,685)
Net cash (outflow) from investing activities		(293,560)	(38,673)
Cash flows from financing activities
Proceeds from borrowings	7	200,000	-
Repayment of borrowings		-	(25,000)
Finance lease payments		(428)	(2,181)
Payment of dividends	11	(12,786)	(11,713)
Transaction costs associated with borrowings		(5,346)	-
Net cash inflow (outflow) from financing activities		181,440	(38,894)
Net (decrease) increase in cash and cash equivalents		(63,237)	36,361
Cash and cash equivalents at the beginning of the half-year		121,296	56,972
Effects of exchange rate changes on cash and cash equivalents		870	-
Cash and cash equivalents at the end of the half-year		58,929	93,333

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Independence Group NL

9

Independence Group NL Notes to the consolidated financial statements 31 December 2015

1 Basis of preparation of half-year report

This condensed consolidated interim report for the half-year reporting period ended 31 December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This condensed consolidated interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2015 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 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

(a) New and amended standards adopted by the Group

A number of new or amended standards became applicable for the current reporting period, however, the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. There may be some changes to the disclosures in the 30 June 2016 annual report as a consequence of these amendments.

(b) Impact of standards issued but not yet applied by the entity

From 1 July 2016, the Group is required to adopt Standards and Interpretations mandatory for annual periods beginning on or after 1 January 2015. 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 Group has not elected to early adopt any new standards or amendments.

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 in predominantly only one geographic segment (ie. Australia) and has identified the following operating segments, being the Tropicana Operation, the Long Operation, the Jaguar Operation, the Nova Project and other regional exploration, scoping studies, feasibility and new business development which are disclosed under New business and regional exploration activities.

The Tropicana Operation represents the Group’s 30% joint venture interest in the Tropicana Gold Mine. AngloGold Ashanti Australia Limited (AngloGold Ashanti) is the manager of the project and holds the remaining 70% interest. Programs and budgets are provided by AngloGold Ashanti and are considered for approval by the Company's Board.

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

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

The Nova Project was acquired by the Company following the acquisition of Sirius Resources NL in September 2015. The Nova Project comprises the construction and development of the Nova Project, located east of Norseman in Western Australia.

The Group’s General Manager, New Business is responsible for budgets and expenditure relating to the Group’s regional exploration, scoping studies, feasibility studies and new business development. The new business and regional exploration division does not normally derive any income. Should a project generated by the new business 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 new business and regional exploration and become reportable as a separate segment.

Independence Group NL

10

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

2 Segment information (continued)

(b) Segment results

(b) Segment results
					New
					business
					and
					regional
	Tropicana	Long	Jaguar	Nova	exploration
	Operation	Operation	Operation	Project	activities	Total
	$'000	$'000	$'000	$'000	$'000	$'000
Half-year ended 31 December 2015
Revenue from external customers	119,491	33,739	65,669	-	-	218,899
Other revenue	-	89	152	-	17	258
Total segment revenue	119,491	33,828	65,821	-	17	219,157
Segment net operating profit (loss) before
income tax	41,631	(1,734)	1,430	-	(47,890)	(6,563)
	-$943,936.00-$137,483.00-$209,673.00-$1,593,601.00 -$101,180.00-$2,985,873.00
Half-year ended 31 December 2014
Revenue from external customers	109,762	56,734	107,275	-	-	273,771
Other revenue	-	237	29	-	9	275
Total segment revenue	109,762	56,971	107,304	-	9	274,046
Segment net operating profit (loss) before
income tax	37,496	17,803	37,829	-	(15,412)	77,716
	-$824,077.00-$203,500.00-$304,076.00$0.00				-$130,935.00-$1,462,588.00
Total segment assets
31 December 2015	747,042	74,805	119,761	1,049,811	111,467	2,102,886
30 June 2015	645,071	92,546	134,569	-	112,424	984,610
SPACE
Total segment liabilities
31 December 2015	35,772	30,584	22,661	543,790	37,586	670,393
30 June 2015	31,748	36,180	24,374	-	33,914	126,216

(c) Segment revenue

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

A reconciliation of reportable segment revenue to total revenue is as follows:
	31 December	31 December
	2015	2014
	$'000	$'000
Revenue from external customers	219,157	274,046
Interest revenue on corporate cash balances and other unallocated revenue	997	214
Total revenue	220,154	274,260

Independence Group NL

11

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

2 Segment information (continued)

(d) Segment net profit (loss) before income tax

A reconciliation of reportable segment net profit before income tax to net profit before income tax is as follows:

	31 December	31 December
	2015	2014
	$'000	$'000
Segment net operating (loss) profit before income tax	(6,563)	77,716
Interest revenue on corporate cash balances and other unallocated revenue	997	214
Unrealised gains (losses) on financial assets	(1,906)	158
Share-based payments expense	(282)	(1,353)
Depreciation and amortisation expense on corporate assets	(631)	(400)
Other corporate costs and unallocated other income	(8,118)	(5,310)
Borrowing and finance costs	(1,671)	(1,278)
Acquisition and other integration costs	(66,924)	-
(Loss) profit before income tax from continuing operations	(85,098)	69,747

(e) Segment assets

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

	31 December	30 June
	2015	2015
	$'000	$'000
Total segment assets	2,102,886	984,610
Intersegment eliminations	(494,923)	(389,508)
Unallocated assets:
Deferred tax assets	200,723	130,517
Listed equity securities	13,669	15,524
Cash and receivables held by the parent entity	31,123	75,812
Office andgeneralplant and equipment	4,482	3,268
Total assets as per the consolidated balance sheet	1,857,960	820,223

(f) Segment liabilities

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

	31 December	30 June
	2015	2015
	$'000	$'000
Total segment liabilities	670,393	126,216
Intersegment eliminations	(576,630)	(55,005)
Unallocated liabilities:
Deferred tax liabilities	70,157	73,980
Creditors and accruals	62,558	8,225
Provision for employee entitlements	1,417	1,312
Bank loans	194,471	-
Total liabilities as per the consolidated balance sheet	422,366	154,728

Independence Group NL

12

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

3 Property, plant and equipment

3 Property, plant and equipment
	31	December	31	December
		2015		2014
		$'000		$'000
Property, plant and equipment		49,793		46,690

Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows:

	31 December	31 December
	2015	2014
	$'000	$'000
Property, plant and equipment
Carrying amount at beginning of period	47,244	47,230
Additions	5,556	7,665
Assets acquired on acquisition of subsidiary	3,432	-
Transfers from mine properties in production	1,702	-
Disposals	(20)	-
Depreciation expense	(8,121)	(8,205)
	49,793	46,690

4 Mine properties

	31 December	31 December
	2015	2014
	$'000	$'000
Mine properties in development	1,038,540	-
Mineproperties inproduction	289,385	318,825
	1,327,925	318,825
Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows:
	31 December	31 December
	2015	2014
	$'000	$'000
Mine properties in development
Carrying amount at beginning of the period	-	-
Additions	56,143	-
Assets acquired on acquisition of subsidiary	979,509	-
Borrowing costs capitalised	2,596	-
Depreciation expense capitalised	292	-
Carryingamount at end of theperiod	1,038,540	-
Mine properties in production
Carrying amount at beginning of the period	303,300	329,279
Additions	22,528	23,325
Transfers from exploration and evaluation expenditure	10,213	6,353
Transfers to property, plant and equipment	(1,702)	-
Amortisation expense	(44,954)	(40,132)
Carryingamount at end of theperiod	289,385	318,825

Independence Group NL

13

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

5 Exploration and evaluation expenditure

			31	December	31	December
				2015		2014
				$'000		$'000
Exploration	and evaluation	costs		107,534		110,782

Reconciliations of the carrying amounts at the beginning and end of the half-year are as follows:

Reconciliations of the carrying amounts at the beginning and end of	the half-year are as follows:
	31 December	31 December
	2015	2014
	$'000	$'000
Carrying amount at beginning of financial year	109,930	111,583
Additions	10,213	7,685
Assets acquired on acquisition of subsidiary	34,100	-
Transfers to mine properties in production	(10,213)	(6,353)
Impairment charge	(35,518)	(2,133)
Disposal of tenements	(978)	-
Carryingamount at end of theperiod	107,534	110,782

Impairment of exploration and evaluation expenditure

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. Management regularly evaluates the recoverability of exploration and evaluation assets. The Group has impaired the following capitalised exploration and evaluation costs during the reporting period:

evaluation costs during the reporting period:
	31 December	31 December
	2015	2014
	$'000	$'000
Stockman exploration and feasibility costs	32,533	-
Jaguar regional exploration costs	2,985	-
	35,518	-

6 Derivative financial instruments

6 Derivative financial instruments
	31 December	30 June
	2015	2015
	$'000	$'000
Current assets
Commodityhedging contracts - held for trading	-	4,981
	-	4,981
Current liabilities
Commodity hedging contracts - cash flow hedges	147	762
Foreign currencycontracts - held for trading	-	1,622
	147	2,384
Non-current liabilities
Commodityhedging contracts - cash flow hedges	-	717
	-	717

Independence Group NL

14

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

7 Borrowings

7 Borrowings
	31 December	30 June
	2015	2015
	$'000	$'000
Current
Secured
Lease liabilities	82	510
Total secured current borrowings	82	510
Non-current
Secured
Bank loans	194,471	-
Total secured non-current borrowings	194,471	-

(a) Corporate loan facility

In July 2015, the Company entered into a syndicated facility agreement (Facility Agreement) with National Australia Bank Limited, Australia and New Zealand Banking Group Limited and Commonwealth Bank of Australia Limited for a $550,000,000 unsecured committed term finance facility. The Facility Agreement comprises:

• A five year $350,000,000 amortising term loan facility that was used to refinance the existing Nova Project finance facility, and provide funds for the continued development, construction and operation of the Nova Project; and

• A five year $200,000,000 revolving loan facility that was used to partially fund the payment of the cash component of the Acquisition Scheme for Sirius Resources NL and transaction costs, in addition to providing funding for general corporate purposes.

Total capitalised transaction costs to 31 December 2015 are $5,654,000 (2014: $nil). Transaction costs are accounted for under the effective interest rate method. These costs are incremental costs that are directly attributable to the loan and include loan origination fees, legal fees and other costs relating to the establishment of the loan. The balance of unamortised transaction costs of $5,529,000 was offset against the bank loans contractual liability of $200,000,000 (2014: $nil).

Borrowing costs of $2,596,000 (2014: $nil) relate to a qualifying asset (Nova Project) and have been capitalised in accordance with AASB 123 Borrowing Costs . Refer to note 4.

The Facility Agreement has certain financial covenants that the Company has to comply with. All such financial covenants have been complied with in accordance with the Facility Agreement.

8 Contributed equity

(a) Share capital

	31	December	31	December
		2015		2014
		$'000		$'000
Fully paid issued capital		1,601,458		737,324

Independence Group NL

15

Independence Group NL Notes to the consolidated financial statements 31 December 2015

(continued)

8 Contributed equity (continued)

(b) Movements in ordinary share capital

	2015	2015	2014	2014
Details	Number of shares	$'000	Number of shares	$'000
Balance at 1 July	234,256,573	737,324	233,323,905	735,060
Issue of shares under the Employee
Performance Rights Plan	1,323,614	3,505	932,668	2,264
Acquisition of subsidiary	275,842,684	860,629	-	-
Balance at 31 December	511,422,871	1,601,458	234,256,573	737,324

9 Reserves and accumulated losses

(a) Reserves

	31 December	30 June
	2015	2015
	$'000	$'000
Share-based payments reserve	9,834	13,057
Foreign currency translation	(26)	(8)
Acquisition reserve	3,142	3,142
	12,950	16,191

(b) Accumulated losses

	31 December	31 December
	2015	2014
	$'000	$'000
Balance at 1 July	(88,020)	(139,031)
Net (loss) profit for the period	(78,008)	49,522
Dividends paid duringtheperiod	(12,786)	(11,713)
Balance at 31 December	(178,814)	(101,222)

10 Financial risk management

(a) Fair value measurements

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

AASB 13 Fair Value Measurement 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 (as prices) or indirectly (derived from prices) (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 2015 and 30 June 2015 on a recurring basis:

Independence Group NL

16

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

10 Financial risk management (continued)

• (a) Fair value measurements (continued)

(a) Fair value measurements (continued)
	Level 1	Level 2	Level 3	Total
	$'000	$'000	$'000	$'000
At 31 December 2015
Financial assets
Listed investments	13,669	-	-	13,669
	13,669	-	-	13,669
Financial liabilities
Derivative instruments
Commodityhedging contracts	-	147	-	147
	-	147	-	147
	Level 1	Level 2	Level 3	Total
	$'000	$'000	$'000	$'000
At 30 June 2015
Financial assets
Listed and unlisted investments	15,524	-	50	15,574
Derivative instruments
Commodityhedging contracts	-	4,981	-	4,981
	15,524	4,981	50	20,555
Financial liabilities
Derivative instruments
Foreign currency hedging contracts	-	1,622	-	1,622
Commodityhedging contracts	-	1,479	-	1,479
	-	3,101	-	3,101

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. This is the case for unlisted equity securities.

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 reporting 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, a contingent consideration receivable and certain forward exchange contracts explained below.

(i) 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 the reporting date.

Independence Group NL

17

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

10 Financial risk management (continued)

(a) Fair value measurements (continued)

• (i) Fair value of other financial instruments (continued)

	Carrying
	amount	Fair value
	$'000	$'000
At 31 December 2015
Current assets
Cash and cash equivalents	58,929	58,929
	58,929	58,929
Current liabilities
Lease liabilities	82	83
	82	83
Non-current liabilities
Bank loans	194,471	200,000
	194,471	200,000
	Carrying
	amount	Fair value
	$'000	$'000
At 30 June 2015
Current assets
Cash and cash equivalents	121,296	121,296
	121,296	121,296
Current liabilities
Lease liabilities	510	522
	510	522

11 Dividends

(a) Ordinary shares

(a) Ordinary shares
	31 December	31 December
	2015	2014
	$'000	$'000
Final dividend for the year ended 30 June 2015 of 2.5 cents (2014: 5 cents) per fully
paid share	12,786	11,713
Total dividends paid duringthe half-year	12,786	11,713
(b) Dividends not recognised at the end of the reporting period
	31 December	31 December
	2015	2014
	$'000	$'000
The Directors have not recommended the payment of an interim dividend (2014: 6
cents per fully paid ordinary share, fully franked based on tax paid at 30%). The
aggregate amount of the proposed dividend paid from retained earnings at 31
December 2014,but not recognised as a liabilityatperiod end,was	-	14,055

Independence Group NL

18

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

12 Contingencies

(a) Contingent liabilities

The Group had guarantees outstanding at 31 December 2015 totalling $1,315,000 (30 June 2015: $1,315,000) which have been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at the various mine sites.

There have been no other changes in contingent liabilities since the last annual reporting date.

13 Commitments

(a) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

	31	December	30	June
		2015		2015
		$'000		$'000
Mineproperties in development		187,620		-
		187,620		-

The above capital commitments relate to the construction and development of the Nova nickel project.

(b) Gold delivery commitments

(b) Gold delivery commitments
		Average	Value of
	Gold for physical	contracted	committed
	delivery	sales price	sales
	oz	A$/oz	$'000
Within one year	22,200	1,621	35,977
Later than one but not later than fiveyears	21,600	1,638	35,383
	43,800	3,259	71,360

The physical gold delivery contracts are settled by the physical delivery of gold as per the contract terms. The contracts are accounted for as sales contracts with revenue recognised once gold has been delivered to the counterparties. The physical gold delivery contracts are considered to sell a non-financial item and therefore do not fall within the scope of AASB 139 Financial Instruments: Recognition and Measurement. Hence, no derivatives have been recognised in respect of these contracts.

14 Business combination

(a) Summary of acquisition

On 22 September 2015, Independence Group NL acquired 100% of the issued share capital of Sirius Resources NL (Sirius). Sirius was a listed public Australian company involved in the development of the Nova nickel mine and other exploration activities.

Details of the purchase consideration and the provisionally determined fair value of the net assets acquired are as follows:

follows:
	$'000
Purchase consideration (refer to (b) below):
Cash paid	250,285
Ordinaryshares issued	860,629
Totalpurchase consideration	1,110,914

Independence Group NL

19

Independence Group NL Notes to the consolidated financial statements 31 December 2015 (continued)

14 Business combination (continued)

(a) Summary of acquisition (continued)

The assets and liabilities recognised as a result of the acquisition are as follows:

	Fair value
	$'000
Cash	48,233
Trade and other receivables	6,008
Inventories	214
Plant and equipment	3,432
Mine properties	979,509
Exploration and evaluation expenditure	34,100
Deferred tax assets	66,939
Trade and other payables	(20,942)
Provisions	(6,579)
Net identifiable assets acquired	1,110,914

There were no acquisitions in the period ending 31 December 2014.

Fair values have only been provisionally determined as at period end and will be finalised within 12 months of the acquisition date in accordance with applicable accounting standards.

(i) Revenue and profit contribution

The acquired business contributed revenues of $335,000 and net loss of $300,000 to the Group for the period from 23 September 2015 to 31 December 2015.

(b) Purchase consideration - cash outflow

(b) Purchase consideration - cash outflow
	31 December	31 December
	2015	2014
	$'000	$'000
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration	250,285	-
Less: balances acquired
Cash	(48,233)	-
Outflow of cash - investingactivities	202,052	-

Acquisition-related costs

Acquisition and other integration related costs of $66,924,000 are included in Acquisition and other integration expenses in profit or loss and an amount of $12,342,000 is included in operating cash flows in the statement of cash flows.

15 Events occurring after the reporting period

There has been no matter or circumstance that has occurred subsequent to period end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods.

Independence Group NL

20

Independence Group NL Directors' declaration 31 December 2015

In the Directors' opinion:

• (a) the interim financial statements and notes set out on pages 6 to 20 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

• (ii) giving a true and fair view of the consolidated entity's financial position as at 31 December 2015 and of its performance for the half-year ended on that date, and

• (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 Directors.

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Peter Bradford Managing Director

Perth, Western Australia 16 February 2016

Independence Group NL

21

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 2015, 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 2015 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. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees

Independence Group NL

22

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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 2015 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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Ian Skelton

Director

Perth, 16 February 2016

Independence Group NL

23