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Whitehaven Coal Limited : Annual Report 2008
Whitehaven Coal Limited - Annual Report 2008 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2008 36. SHARE-BASED PAYMENTS (CONTINUED) Option issuances (continued) Option grant to senior employees on 3 May 2007 Option Exercise price Tranche 1 Tranche 2 Tranche 3 $1.00 $1.00 $1.00 Number of instruments Vesting conditions 66,666 1st anniversary after listing 66,666 2nd anniversary after listing 66,668 3rd anniversary after listing 200,000 Expiration date 30 June 2008 30 June 2009 30 June 2010 If employment is terminated within three years of commencement, any options that have not been vested will be forfeited. Number and weighted average exercise prices of options Movement in options Outstanding at beginning of period Exercised during the period Granted during the period Outstanding at 30 June Exercisable at 30 June Weighted average exercise price 2008 $1.00 $1.00 $2.50 $1.14 $1.00 Number of options 2008 44,241,314 (14,226,966) 3,000,000 33,014,348 15,228,482 Weighted average exercise price 2007 – – $1.00 $1.00 – Number of options 2007 – – 44,241,314 44,241,314 – The senior employee options outstanding at 30 June 2008 have an exercise price in the range of $1 to $2.50 and a weighted average contractual life of 4 years. The weighted average share price at the date of exercise for share options exercised during the year ended 30 June 2008 was $2.75 (2007: $nil). The fair value of options granted to entities associated with the directors is measured using Black Scholes barrier options techniques, incorporating the probability of the performance hurdles being met, with the following inputs. The fair value of options granted to the senior employees is measured using a Black Scholes model, with the following inputs. Director related entities Fair value of share options and assumptions Fair value at grant date Share price Exercise price Expected volatility (weighted average volatility) Option life (expected weighted average life) Expected dividends Risk-free interest rate (based on government bonds) 2008 – – – – – – – 2007 7.2 cents $1 $1 ??? 10 years ??? ????? Senior employees 2008 2007 4.6 cents 10.7 cents $1.64 $2.50 ??? $1 $1 ??? 5 years ??? ????? 3 years ??? ????? 81
Annual Report 2009