Adamus Resources Limited And Controlled Entities INTERIM ...

Adamus Resources Limited
For the Three Months Ended 30 September 2006
Notes to the Financial Statements (continued)
3. Contributed Equity and Reserves (cont’d)
c) Share Based Payment Plan
At 30 September 2006, the Company had share options outstanding for the purchase of 2,200,000 shares, of
which 1,200,000 were exercisable (vested).
Number
WAEP $
Outstanding at 30 June 2006 2,200,000 0.73
Granted during the year - -
Exercised during the year -
-
Outstanding at 30 September 2006 2,200,000 0.73
During the period ended 30 September 2006, the Company recorded a stock-based compensation expense of
$19,018, included in employee benefits expense, based on the fair value of options vested during the period. The
stock-based compensation expense was calculated using the Black-Scholes Option Pricing Model.
There were no stock options granted during the period ended 30 September 2006.
The weighted average remaining contractual life for the share options outstanding as at 30 September 2006 is
between 1 and 3 years.
The range of exercise prices for options outstanding at 30 September 2006 was $0.64 – $0.86.
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant
using a Black-Scholes options pricing model taking into account the terms and conditions upon which the options
were granted.
The following table lists the inputs to the model used for at 30 September 2006:
2006 2005
Dividend yield (%) 0 0
Expected volatility (%) 65 65
Risk-free interest rate (%) 5.4 5.0
Expected life of options (years) 1 to 3 1 to 3
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns
that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future
trends, which may also not necessarily be the actual outcome. No other features of options granted were
incorporated into the measurement of fair value.
The fair value of the cash-settled options is measured at the grant date using the Black-Scholes options pricing
model taking into account the terms and conditions upon which the instruments were granted. The services
received and a liability to pay for those services are recognised over the expected vesting period. Until the liability
is settled it is remeasured at each reporting date with changes in fair value recognised in profit or loss.
d) Reserves
2006 2005
$ $
Foreign currency translation reserve (7,213) -
Share-based payments reserve 344,849 -
337,636 -