2012 Annual Report (2 April 2013) - Grange Resources

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2012 ANNUAL REPORT
Notes to the Financial Statements (cont.)
NOTE 40. SHARE BASED PAYMENTS (cont.)
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 2012
28-Nov-08 6-Mar-12 $1.92 2,100,000 - - (2,100,000) - -
28-Nov-08 6-Mar-12 $2.87 2,100,000 - - (2,100,000) - -
28-Nov-08 6-Mar-12 $3.37 2,100,000 - - (2,100,000) - -
TOTAL 6,300,000 - - (6,300,000) - -
Weighted average exercise price $2.72 - - $2.72 - -
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
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 2012 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 2012 to 28
February 2012 will be used).
The expense recognised during the year ended 31 December 2012 is for rights to Grange shares issued to eligible employees. 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 2012
Issued on Other Balance
Balance Granted as vesting of changes 31 December
Performance Period 1 January 2012 remuneration rights (net) (1) 2012 Vested Unvested
30 June 2010 733,373 - (720,510) (12,863) - - -
31 December 2010 744,752 - (422,593) (7,859) 314,300 - 314,300
31 December 2011 - 1,157,958 (406,865) (5,868) 745,225 - 745,225
31 December 2012 (3) - 518,927 (2) - - 518,927 - 518,927
Total 1,478,125 1,676,885 (1,549,968) (26,590) 1,578,452 - 1,578,452