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AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
financial statements
for the year ended 30 September 2015
COMPANY FINANCIAL REPORT
19. Share capital (continued)
The Company operates a share option scheme (the ‘Scheme’) for the purpose of remunerating consultants and/or
suppliers of services to the Company.
General terms and conditions of the Scheme include:
–
Each option entitles the holder the right to subscribe for one ordinary share in the capital of the Company for the relevant
option exercise price
–
Vesting requirements: An option may only be exercised by the option holder by lodging an exercise
–
Notice with the Company when the option exercise price has been met
–
Maximum term of options granted was 3.2 years, and
–
Method of settlement is by cash.
The share options outstanding as at 30 September 2015 had a weighted average remaining contractual life of 1.5 years.
A share consolidation of Axiom’s capital, on the basis of one share for every 15 shares was completed on 14 April 2015.
The number of options in the above table has been amended to reflect this consolidation.
The weighted average fair value of the share options granted during the year was AU$0.1679 (2014: AU$0.0687), of which
the Company recognised a share option expense of AU$506,805 (2014: AU$367,432) during the year 31 September 2015.
The fair value of options granted is measured using the Black Scholes option pricing model, as appropriate, based on
various assumptions on volatility, option life, dividend yield and annual risk-free interest rate, excluding the impact of any
non-market vesting conditions, which generally represent the best estimate of the fair values of the share options at date
of grant.
Key inputs used in the calculation of the value of options granted during the year ended 30 September 2015 are:
Grant date
Expiry date
Spot price
AU$
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.
c. Share performance rights
Details of the movements in rights granted are as follows:
Number
of rights
outstanding
as at
1 October 2014
Granted
during the
year
Exercised
during the
year
Cancelled
during the
year
Number
of rights
outstanding
as at
30 September
2015
Stephen Ray Williams
(1)
833,332
–
–
–
833,332
Ryan Richard Mount
(2)
6,666,661
–
– (6,666,661)
–
7,499,993
–
– (6,666,661)
833,332
(1)
833,332 Rights lapsed post year end on 21 October 2015.
(2)
Cancelled on 31 March 2015 as detailed in the 31 March 2015 AGM Notice of Meeting.
All share performance rights were issued for the directors of the Company. Details please refer to Note 26b.