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AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
financial statements
for the year ended 30 September 2015
GROUP FINANCIAL REPORT
16. Capital and reserves (continued)
A share consolidation of Axiom’s capital, on the basis of one share for every fifteen shares was completed on 14 April 2015.
The number of options in the above table has been amended to reflect this consolidation.
The fair value of options granted is measured using the Black-Scholes option pricing model, as appropriate, based on
various assumptions on volatility, option life, dividend yield and annual risk-free interest rate, excluding the impact of any
non-market vesting conditions, which generally represent the best estimate of the fair values of the share options at date
of grant.
Key inputs used in the calculation of the value of options granted during the year ended 30 September 2015 are:
Grant date
Expiry date
Spot price
$
Volatility
%
Risk free rate
%
10 Jul 15
30 Sep 15
0.35
192
2.15
13 Jul 15
30 Sep 15
0.37
192
2.15
10 Jul 15
31 May 16
0.35
192
2.15
10 Jul 15
31 Mar 16
0.35
192
2.25
10 Jul 15
31 May 16
0.35
192
2.25
Expected volatility was determined based on historic volatility adjusted for any expected changes to future volatility based
on publicly available information. All options granted during the year vested on grant date. None of the options issued have
vesting conditions attached.
e. Performance rights
Details of the movements in rights granted are as follows:
No of rights
outstanding
as at
1 October
2014
Granted
during the
year
Exercised
during the
year
Lapsed
during the
year
No. of rights
outstanding
as at
30 September
2015
Stephen Ray Williams
833,332
–
–
(166,666)
666,666
(1)
Ryan Richard Mount
6,666,661
–
– (6,666,661)
(2)
–
7,499,993
–
– (6,833,327)
666,666
(1)
The VWAP hurdles relating to the 666,666 Rights were not met by 21 October 2015 and have lapsed.
(2)
Cancelled post year-end as detailed in Resolution 6 of the Annual General Meeting dated 31 March 2015.
f. Capital management
The Group’s primary objectives when managing capital is to safeguard the Group’s ability to continue as a going concern,
so that it can continue to provide returns for shareholders and benefits for other stakeholders, by pricing products and
services commensurately with the level of risk and by securing access to finance at a reasonable cost.
The Group actively and regularly reviews and manages its capital structure to maintain a balance between higher
shareholder returns that might be possible with higher levels of borrowings and the advantages and security afforded
by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.