Page 118 - Sundance Resources Ltd Annual Report 2013
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116
SUNDANCE RESOURCES LIMITED
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
FOR THE YEAR ENDED 30 JUNE 2013
Employee share based payment plan
The Consolidated Entity has an ownership-based compensation 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 2013 LTI Plan 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 $0.3709 (2012:
$0.3564). There were no share options granted during the current financial year. 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.
Inputs into the share based payments pricing model:
Series
Grant date
share price
$
Exercise
price $
Expected
volatility
Risk free
interest rate Vesting Date
(51) Issued 28 November 2011
(i),(ii)
0.0900
n/a
n/a
n/a
15/11/11
(52) Issued 7 December 2011
(i)
0.4400
n/a
n/a
n/a
31/12/11
(53) Issued 7 December 2011
(i)
0.4400
n/a
n/a
n/a
31/12/14
(54) Issued 7 December 2011
(i)
0.4400
n/a
n/a
n/a
31/12/14
(55) Issued 7 December 2011
(i)
0.4300
n/a
n/a
n/a
31/12/11
(56) Issued 7 December 2011
(i)
0.4300
n/a
n/a
n/a
31/12/14
(57) Issued 7 December 2011
(i)
0.4300
n/a
n/a
n/a
31/12/14
(58) Issued 19 January 2012
(i)
0.3400
n/a
n/a
n/a
31/12/11
(59) Issued 11 May 2012
(i)
0.4100
n/a
n/a
n/a
31/12/12
(60) Issued 11 May 2012
(i)
0.4100
n/a
n/a
n/a
31/12/15
(61) Issued 11 May 2012
(i)
0.4100
n/a
n/a
n/a
31/12/15
(62) Issued 27 November 2012
(i)(ii)
0.0900
n/a
n/a
n/a
23/11/12
(63) Issued 11 February 2013
(i)
0.3100
n/a
n/a
n/a
31/12/13
(64) Issued 11 February 2013
(i)
0.3100
n/a
n/a
n/a
31/12/15
(65) Issued 11 February 2013
(i)
0.3100
n/a
n/a
n/a
31/12/16
(i)
These relate to performance rights and as such there are no related exercise prices and the volatility
and risk free interest rate are not factors in the valuation as they are in options.
(ii)
These rights were issued in the current period but have grant dates in the prior comparative period.
Note 25. SHARE BASED PAYMENTS
(continued)
