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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
110 Independence Group NL
Notes to the consolidated financial statements
30 June 2016
(continued)
Other information
This section of the notes includes other information that must be disclosed to comply with the accounting standards and
other pronouncements, but are not considered critical in understanding the financial performance or position of the
Group.
26 Share-based payments
The Group provides benefits to employees (including executive directors) of the Group through share-based incentives.
Information relating to these schemes is set out below.
(a) Employee Performance Rights Plan
The Independence Group NL Employee Performance Rights Plan (PRP) was approved by shareholders at the Annual
General Meeting of the Company in November 2014. Under the PRP, participants are granted share rights which will
only vest if certain performance conditions are met and the employees are still employed by the Group at the end of the
vesting period. Participation in the PRP is at the Board’s discretion and no individual has a contractual right to
participate in the plan or to receive any guaranteed benefits.
(b) Equity settled awards outstanding
2016
2015
Number of
share rights
Weighted
average fair
value
Number of
share rights
Weighted
average fair
value
Outstanding at the beginning of the year
2,313,757
2.85
3,255,175
2.99
Rights issued during the year
643,911
1.32
509,480
2.65
Rights vested during the year
(1,323,613)
3.19
(932,668)
3.00
Rights lapsed during the year
(258,903)
2.23
(518,230)
3.23
Rights cancelled during the year
(23,029)
2.41
-
-
Outstanding at the end of the year
1,352,123
1.91
2,313,757
2.85
(c) Fair value of share rights granted
The fair value of the share rights granted during the year ended 30 June 2016 are determined using a trinomial tree
which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with the following
inputs:
Fair value inputs
CEO
Other senior management
Grant date
16 December 2015
22 January 2016
Vesting date
1 July 2018
1 July 2018
Share price at grant date
$2.20
$2.11
Fair value estimate at grant date
$1.56
$1.20
Expected share price volatility (%)
47
48
Expected dividend yield (%)
1.14
1.14
Expected risk-free rate (%)
2.14
1.94
The share-based payments expense included in profit or loss for the year totalled $819,000 (2015: $2,949,000).
(d) Employee share scheme
Share rights granted after 1 July 2014
Vesting of the performance rights granted to executive directors and executives after 1 July 2014 is based on a total
shareholder return (TSR) scorecard. The TSR scorecard for the three year measurement period will be determined
based on a percentile ranking of the Company's TSR results relative to the TSR of each of the companies in the peer
group over the same three year measurement period.
The peer group is to comprise the constituents of the S&P ASX 300 Metals and Mining Index who are engaged in gold
and/or based metals mining in Australia and have the closest market capitalisation to the Company.
Independence Group NL
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