Page 92 - Sundance Resources 2014 Annual Report

90 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
NOTE 18. SHARE BASED PAYMENTS
Ordinary share based payments
During the financial year the Group issued 1,000,000 ordinary shares in Sundance Resources Ltd to Mr Roger Bogne
as part consideration for settlement reached between Sundance’s subsidiary Cam Iron and Mr Bogne. This settlement
was announced to the ASX on 27 August 2013. Fair value of the shares at grant dates was $0.10 per share for a total
value of $100,000.
In the prior financial year 14,000,000 ordinary shares in Sundance Resources Ltd were issued on 23 November 2012 these
had a fair value at grant date of $0.39.
Employee share based payment plan
The Group has an ownership-based remuneration plan for executives and senior employees. Historically an option based
plan was used and in 2011 this was changed to a performance rights based plan.
Each employee share option or performance right converts into one ordinary share of Sundance upon exercise. No
amounts are paid or payable by the recipient upon receipt of the performance right or option, and only upon exercise for
option holders. The performance rights and options carry neither rights to dividends nor voting rights. Performance rights
or options may be exercised at any time from the date of vesting to the date of their expiry. The number of performance
rights and options vested is calculated in accordance with the performance criteria approved by the Nomination and
Remuneration Committee. The performance criteria reward executives and senior management to the extent of the Group’s
and the individuals achievement judged against achievement of corporate and operational objectives. The performance
conditions are derived from the following performance areas: achieving funding (equity and debt) commitment for Stage 1
of the Project; delivery of Total Shareholder Returns (‘TSR’) over a three or four year period; and increasing the Net Present
Value (‘NPV’) of the Project. Options issued in previous periods under the Employee Share Option Plan have varying
performance conditions derived from key organisational objectives and are conditional on the holder remaining an employee
at vesting date.
The weighted average fair value of the performance rights granted during the financial year is $0.1033 (2013: $0.3709).
Performance rights and options were priced using a binomial pricing model. Expected volatility is based on the historical
share price volatility of other entities listed on the Australian Stock Exchange with similar profiles to Sundance.
Share Based Payments – Performance Rights
2014 2013
Number of
Rights
Weighted
Average Fair
Value of Rights
Number of
Rights
Weighted
Average Fair
Value of Rights
Outstanding at the beginning of the year 9,859,432 $0.3618 10,534,449 $0.3926
Issued during the year(i) 27,842,128 $0.1033 18,405,838 $0.3709
Forfeited or expired during the year(ii) (1,830,605) $0.3355 (1,616,108) $0.3836
Vested and converted to shares(iii) (2,650,000) $0.3700 (17,464,747) $0.3879
Outstanding at year-end 33,220,955 $0.1459 9,859,432 $0.3618
Notes:
(i) The performance rights issued during the current year relate to the 2013 LTI, the 2013 Retention Plan and the 2014 LTI.
(ii) The performance rights forfeited during the current year relate to personnel who departed the Group, while those expired related to a failure to meet the performance criteria of one
tranche of the 2013 LTI.
(iii) The performance rights that vested and converted in the 2014 financial year related to the rights attached to the CEO’s remuneration package implemented in 2010.
The performance rights outstanding at 30 June 2014 had a weighted average fair value of $0.15 (2013: $0.36) and a
weighted average remaining contractual life of 2.24 years (2013: 1.95 years).
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014