2011 Annual Report (3 April 2012) - Grange Resources

2011 ANNUAL REPORT
85
The table below summaries the current balance of options granted under the plan:
Vested and
Balance Granted Exercised Cancelled Balance exercisable
Exercise at start of during during during at end of at end of
Grant date Expiry Date price the period the period the period the period the period the period
31 December 2011
28-Nov-08 6-Mar-12 $1.92 2,100,000 - - - 2,100,000 2,100,000
28-Nov-08 6-Mar-12 $2.87 2,100,000 - - - 2,100,000 2,100,000
28-Nov-08 6-Mar-12 $3.37 2,100,000 - - - 2,100,000 2,100,000
TOTAL 6,300,000 - - - 6,300,000 6,300,000
Weighted average exercise price $2.72 - - - $2.72 $2.72
31 December 2010
28-Nov-08 6-Mar-12 $1.92 2,100,000 - - - 2,100,000 2,100,000
28-Nov-08 6-Mar-12 $2.87 2,100,000 - - - 2,100,000 2,100,000
28-Nov-08 6-Mar-12 $3.37 2,100,000 - - - 2,100,000 2,100,000
TOTAL 6,300,000 - - - 6,300,000 6,300,000
Weighted average exercise price $2.72 - - - $2.72 $2.72
The options granted to Directors carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share.
Fair value of options granted
No options were granted during the reporting period.
(ii) Rights to Grange Shares
The Board will review regularly and reserves the right to vary from time to time the appropriate objectives and vesting periods for Rights to
Grange shares.
The objective for the issue of Rights under the LTI program is to reward selected senior employees in a manner that aligns this element of
their remuneration package with the creation of long term shareholder wealth while at the same time securing the employee’s tenure with the
Company over the longer term. The LTI grants Rights to the Company’s shares to selected senior employees, and these Rights vest in several
equal tranches over the timeframe stipulated in the LTI Plan (currently they vest in three equal tranches over 24 months). 50% of the LTI for an
employee relates to company performance goals and 50% relates to personal performance goals.
Rights are allocated using a share price that is based on the volume weighted average price of the Company’s shares. For the year ended
31 December 2011 the share price is based on the volume weighted average price of the Company’s shares for the first two months of the
performance period (i.e. the volume weighted average price of the Company’s shares from 1 January 2011 to 28 February 2011 will be used).
The expense recognised during the year ended 31 December 2011 is for rights to Grange shares issued to eligible employees for the year
ended 30 June 2010 and period the ended 31 December 2010. These amounts are recognised in the Company’s income statement over the
vesting period.
The table below summaries rights issued to eligible employees:
31 December 2011
Issued on
Balance
Balance Granted as vesting of Other changes 31 December
Performance Period 1 January 2011 remuneration rights (net) (1) 2011 Vested Unvested
30 June 2010 2,307,963 - (1,524,968) (49,622) 733,373 - 733,373
31 December 2010 - 1,004,283 (334,763) (22,590) 646,930 - 646,930
Total 2,307,963 1,004,283 (1,859,731) (72,212) 1,380,303 - 1,380,303
(1) Other changes relate to the departure of eligible employees prior to the date of vesting
DirectorS’ Report
Financial Statements
Shareholder information