Page 161 - Paladin_Annual_Report_2012

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

PAL AD IN ENERGY LTD  ANNUAL REPORT 2012

159

NOTE 25. SHARE-BASED PAYMENT PLANS (CONTINUED)

(h) Summaries of Performance Share Rights Granted Under the Rights Plans (continued)

The outstanding balance as at 30 June 2012 is represented by:

Dates rights granted Vesting date Vesting Performance Conditions Number

26 March 2010 26 March 2013 Relative total shareholder return 150,000 26 March 2010 26 March 2013 Earnings per share 150,000 26 March 2010 1 September 2012 Time based 759,850 26 March 2010 1 September 2012 Relative total shareholder return 607,880 26 March 2010 1 September 2012 Market price 911,820 5 November 2010 5 November 2013 Earnings per share 250,000 5 November 2010 5 November 2013 Relative total shareholder return 250,000 5 November 2010 1 September 2012 Time based 250,132 5 November 2010 1 September 2013 Time based 416,888 5 November 2010 1 September 2013 Relative total shareholder return 333,510 5 November 2010 1 September 2013 Market price 500,265 15 February 2011 15 February 2013 Time based 154,633 15 February 2011 15 February 2014 Time based 185,504 2 April 2012 1 September 2012 Time based 189,540 2 April 2012 1 September 2013 Time based 284,310 2 April 2012 31 December 2013 Time based 20,000 2 April 2012 1 September 2014 Time based 523,850 2 April 2012 1 September 2014 Relative total shareholder return 379,080 2 April 2012 1 September 2014 Market price 568,620

Total 6,885,882

Please refer to Outstanding Share Information table in the Management Discussion & Analysis for movements since the year end.

(i) Weighted Average Remaining Contractual Life

The weighted average remaining contractual life for the share rights outstanding as at 30 June 2012 is 1.0 years (2011: 1.5 years).

(j) Weighted Average Fair Value

The weighted average fair value of share rights granted during the year was A$1.47 (2011: A$3.86).

(k) Rights Pricing Model

The fair value of the equity-settled share rights granted under the plan is estimated as at the date of grant using either the Black-Scholes valuation model for rights with non-market based performance conditions (time based and EPS) or the Monte-Carlo simulation model for rights that contained a market based performance condition (TSR and market price).

The following table lists the inputs to the model used for the years ended 30 June 2012 and 30 June 2011.

2012 2011

Dividend yield (%) Nil Nil Expected volatility (%) 53% 39% Risk-free interest rate (%) 3.57% 4.77% - 5.03% Expected life of right (years) 0.4 - 2.4 years 0.8 - 4 years Closing share price at grant date (A$) A$1.80 A$4.48

The expected volatility was determined using an historical sample of 1 year’s historic data.