Page 45 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 43
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2014
Eligible persons, including KMP, are granted performance rights to a specified dollar value at the beginning of each LTI plan
grant period. The remuneration opportunity provided by the LTI plan is based on a percentage of the annual base salary
at the time of the grant. Rights are issued at the Volume Weighted Average Price (‘VWAP’) over the last thirty days leading
up to January 1 of any issue year. Under the plan, participants are granted performance rights which only vest if certain
performance conditions are met and they are employed by the Company at the measurement date.
Each performance condition is chosen to correlate directly to the Company’s medium and longer term interests and
success of the Project, the Company, and shareholders’ best interests. Performance conditions typically spread over a
4-year period. These performance conditions are then submitted to the Board for consideration and approval.
Performance conditions are set with quantifiable and measurable outcomes, which can then be objectively assessed
against supporting information and evidence of achievement. Progress toward, and achievement of, performance
conditions is assessed by the MD/CEO and reviewed by the NRC. The Board will then determine the level of achievement
for each performance condition, seeking information where needed from the NRC, the Executive Committee, other
Managers or sources.
Further detail of awards made under the Long Term Incentive Plan is set out in Section 12.7 of this report.
The 2014 LTI plan performance conditions are derived from the following performance areas:
• Final Investment Decision of the Project or a Board approved takeover;
• Delivery of Total Shareholder Returns (‘TSR’) in the form of share price increases, over a three or four year period; and
• Increasing the Net Present Value (‘NPV’) of the Project.
The tables below set out summary information about the Group’s earnings and movements in shareholder wealth for the
five years to 30 June 2014.
30 June 2014
$
30 June 2013
$
30 June 2012
$
30 June 2011
$
30 June 2010
$
Revenue 726,951 1,771,966 2,539,818 2,888,359 2,530,200
Net loss before tax (32,941,511) (31,641,559) (25,308,131) (21,738,100) (10,754,551)
Net loss after tax (32,941,511) (31,641,559) (25,308,131) (21,738,100) (10,754,551)
$/share $/share $/share $/share $/share
Share price at start of year 0.07 0.35 0.34 0.13 0.16
Share price at end of year 0.08 0.07 0.35 0.34 0.13
cents/share cents/share cents/share cents/share cents/share
Basic earnings per share (1.01) (0.95) (0.79) (0.74) (0.40)
Diluted earnings per share (1.01) (0.95) (0.79) (0.73) (0.40)
Company performance
The Company considers it appropriate to review Company performance in its progress to financial close for the Mbalam-
Nabeba Iron Ore Project (the ‘Project’). Over the reporting period significant events occurred to that end, including:
• Signing of a bankable off-take contract;
• Signing of an Engineering, Procurement and Construction (EPC) contract with Mota-Engil Africa for the construction of
the Project’s port and rail infrastructure;
• Receipt of competitive tenders for the Front End Engineering Design (FEED) study and indicative EPC contract pricing
for the mine plants and associated infrastructure;
• Signing of Port and Rail Concession Agreements between Cam Iron SA and the Cameroon Government and;
• Appointment of Standard Bank, Africa’s largest bank, as the Company’s Financial Advisor and non-exclusive Lead Debt
Arranger with respect to Project-level funding.
These achievements occurred concurrently with ongoing preliminary site works in both Cameroon and the Congo including
a sintering test work program, earthworks at Lolabe, trial mining at Nabeba and bulk materials testing.