Page 93 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 91
Share Based Payments – Options
2014 2013
Number of
Options
Weighted
Average
Exercise Price
Number of
Options
Weighted
Average
Exercise Price
Outstanding at the beginning of the year 17,652,547 $0.3231 30,986,866 $0.3069
Issued during the year(i) 460,000,000 $0.1113 - $-
Forfeited or expired during the year(ii) (17,150,547) $0.3252 (8,265,119) $0.3198
Exercised during the year - $- (5,069,200) $0.2292
Outstanding at year-end 460,502,000 $0.1115 17,652,547 $0.3231
Vested and Exercisable at year-end 260,502,000 $0.1049 17,652,547 $0.3231
(i) The options issued during the current year relate to the options issued to Noble and the Investor Consortium.
(ii) The options forfeited during the current year relate to personnel who departed the Group, while those which expired relate to a failure of the holder to exercise at their specified
exercise price.
The options outstanding at 30 June 2014 had a weighted average remaining contractual life of 1.36 years (2013: 0.54 years).
As at 30 June
2014 2013
Grant Date Grant Date
Fair Value Vesting Date Expiry Date ExercisePrice
Number of
Options
Number of
Options
Issued 10 February 2010 $0.07 29-Jan-13 29-Jan-14 $0.25 - 193,750
Issued 10 February 2010 $0.07 30-Jan-13 30-Jan-14 $0.25 - 3,567,748
Issued 22 December 2010 $0.21 22-Dec-12 22-Dec-13 $0.40 - 6,500,000
Issued 22 December 2010 $0.23 22-Dec-12 22-Dec-13 $0.30 - 6,500,000
Issued 24 May 2011 $0.19 30-Jan-13 30-Jan-14 $0.23 - 389,049
Issued 24 May 2011 (i) $0.23 30-Jan-14 30-Jan-15 $0.25 502,000 502,000
Issued 4 November 2013 (ii) $0.03 06-Jun-14 04-Nov-15 $0.10 60,000,000 -
Issued 29 November 2013 (ii) $0.04 06-Jun-14 04-Nov-15 $0.10 140,000,000 -
Issued 29 November 2013 (ii) $0.03 06-Jun-14 04-Nov-15 $0.12 60,000,000 -
Issued 29 November 2013 (iii) $0.04 19-Oct-15 18-Nov-15 $0.12 200,000,000 -
Total 460,502,000 17,652,547
Notes:
(i) Represents outstanding options issued to eligible employees under the Company’s Employee Share Option Plan. These options have performance conditions derived from key
organisational objectives and are conditional on the holder remaining an employee at vesting date.
(ii) These options were issued to the Investor Consortium under the convertible note funding agreement and vested on occurrence of a relevant event.
(iii) These options were issued to Noble under the convertible note funding agreement.
The options issued to Noble and the Investor Consortium have been valued using the binomial model and key assumptions
including an underlying share price at shareholder approval date of $0.114, a volatility of 71%, a risk free rate of 2.73% for
Noble and 2.58% for the Investor Consortium, an expected term of 1.91 for Noble and 1.15 for Investor Consortium and
vesting dates of 19 October 2015 for Noble and 30 April 2014 for the Investor Consortium.The use of these inputs resulted
in a value of $12,700,000 being recorded in the Convertible Note and Option Reserve.
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014