ANNUAL REPORT 2006

P L AT I N U M A U S T R A L I A A N N U A L R E P O R T 2 0 0 6
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
NOTE 10: SHARE BASED PAYMENT PLANS
Employee Share Option Plan
Options are granted under the Company Employee Share Option Plan for no consideration. Options are granted
for a five year period and entitlements to the options are vested as soon as performance conditions have been met.
Options are exercisable in defined tranches with conditions attaching to each tranche to reflect the company’s
development strategy and align the interests of Directors and executives to those of shareholders.
The expense recognised in the income statement in relation to share based payments amounts to $163,276 (2005:
$701,419). The amount assessed at fair value at grant date of the options is allocated equally over the period from
grant date to vesting date. Fair values at grant date are independently determined using the Binomial Tree Model
method of valuation that takes into account the exercise price, the terms of the option, the vesting and market related
criteria, the impact of dilution, the non-tradeable nature of the option, the share price at grant date and the risk of
the underlying share and the risk free interest rate for the term of the option.
The following table illustrates the number and weighted average exercise price of, and movements in, share options
issued during the year:
2006
No.
2006
Weighted
average
exercise price
2005
No.
2005
Weighted
average
exercise price
Outstanding at the beginning of the year 8,785,000 28.65 1,015,000 20.34
Granted during the year 830,000 42.54 7,770,000 30.00
Exercised during the year (200,000) 20.00 - -
Expired during the year (800,000) 20.00 - -
Outstanding at the end of the year 8,615,000 31.14 8,785,000 28.65
The outstanding balance as at 30 June 2006 is represented by:
• 15,000 options over ordinary shares with an exercise price of 43.5 cents each, none of which had vested and are
exercisable by 14 March 2007;
• 270,000 options over ordinary shares with an exercise price of 22.5 cents each, none of which had vested at
30 June 2006, exercisable by 5 November 2008;
• 5,000,000 options over ordinary shares with an exercise price of 35 cents each, all of which had vested at
30 June 2006, exercisable by 10 December 2009;
• 2,500,000 options over ordinary shares with an exercise price of 20 cents each, 1,750,000 of which had vested
at 30 June 2006, exercisable by 11 December 2009;
• 730,000 options over ordinary shares with an exercise price of 37 cents each, none of which had vested at
30 June 2006, exercisable by 30 November 2009; and
• 100,000 options over ordinary shares with an exercise price of 83 cents each, none of which had vested at
30 June 2006, exercisable by 30 April 2010.
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