2012 Annual Report (2 April 2013) - Grange Resources

2012 ANNUAL REPORT
79
PAGE
NOTE 39. EARNINGS PER SHARE
Basic earnings per share
2012 2011
Cents
Cents
From continuing operations
attributable to the ordinary
equity holders of the Company 3.11 18.78
Total basic earnings per share
attributable to the ordinary equity
holders of the Company 3.11 18.78
Diluted earnings per share
From continuing operations
attributable to the ordinary
equity holders of the Company 3.10 18.76
Total diluted earnings per share
attributable to the ordinary
equity holders of the Company 3.10 18.76
(a) Reconciliations of earnings
used in calculating
earnings per share
Basic earnings per share
Profit attributable to the ordinary equity
holders of the Company used in
calculating basic earnings per share
from continuing operations 35,904 216,567
Diluted earnings per share
Profit attributable to the ordinary equity
holders of the company used in
calculating diluted earnings per share
from continuing operations 35,904 216,567
(b) Weighted average number of shares used
as the denominator
2012 2011
Number Number
Weighted average number of
ordinary shares used as the
denominator in calculating
basic earnings per share 1,155,029,611 1,153,311,836
Options
Options granted to Directors and eligible employees under the
Long Term Incentive Plan,were considered to be potential ordinary
shares and are included in the determination of diluted earnings
per share to the extent to which they were dilutive. As all the
options on issue at 31 December 2011 were out of the money,
they were not considered dilutive and therefore not included in
the calculation of diluted earnings per share for the year ended
31 December 2011. All of the options expired during the year
ended 31 December 2012 and are not included in the calculation
of basic or diluted earnings per share for the year ended 31
December 2012. Details relating to options are set out in Note 40.
Rights
Rights issued to eligible employees under the Long Term Incentive
Plan are considered to be potential ordinary shares for the
purposes of determining diluted earnings per share. Rights have
not been included in the determination of basic earnings per
share.
NOTE 40. SHARE BASED PAYMENTS
(a) Expenses arising from share-based
payment transactions
Total expenses arising from share-based payment transactions
recognised during the period as part of employee benefit expense
were as follows:
2012 2011
$’000 $’000
Rights issued to eligible employees
under the LTIP 797 751
797 751
The types of share-based payments are described below.
(b) Types of share-based payments
(i) Options issued to Directors
In May 2008, the shareholders approved the issuing of 4.5 million
options to the Managing Director and 450,000 options to each
Non-executive Director (or their respective nominees) at that time.
The issuing of these options was intended to act as an incentive
for the Directors to align themselves with the Company’s strategic
plan focussing on optimising performance with the benefits
flowing through enhanced shareholder returns. The Board
considered the grant of the Director options to be reasonable
in the circumstances, given the necessity to attract the highest
calibre of professionals to the Company and retain them, whilst
maintaining the Company’s cash reserves. These options expired
during the year ended 31 December 2012.
The Company does not have a specific option plan in relation to
the issue of options to Non-executive Directors and is considering
this form of remuneration as part of the overall fees paid. The
Company will look at industry practice when determining
whether options should form part of the non-executive Directors
remuneration.