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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 111
Notes to the consolidated financial statements
30 June 2016
(continued)
26 Share-based payments (continued)
(d) Employee share scheme (continued)
Share rights granted after 1 July 2014 (continued)
The vesting schedule of the performance rights subject to relative TSR testing is as follows:
Relative TSR performance
Level of vesting
Less than 50th percentile
Zero
Between 50th and 75th percentile
Pro-rata straight line percentage between 50% and 100%
75th percentile or better
100%
The Company's TSR performance for share rights issued during the current financial year will be assessed against the
following 20 peer group companies:
Peer companies
* Aditya Birla Minerals Ltd
1
* Oceana Gold Limited
* Alacer Gold Corp.
* Oz Minerals Ltd
* Beadell Resources Ltd
* Panoramic Resources Ltd
* Cudeco Ltd
* Perseus Mining Limited
* Evolution Mining Limited
* Regis Resources Limited
* Kingsgate Consolidated Limited
* Resolute Mining Limited
* Medusa Mining Ltd
* Saracen Mineral Holdings Limited
* Metals X Limited
* Sandfire Resources Ltd
* Mincor Resources NL
* Silver Lake Resources Limited
* Northern Star Resources Limited
* Western Areas Ltd
1. To be removed from peer group of companies following takeover of the company.
Share rights granted prior to 30 June 2014
Vesting of the performance rights granted to executive directors and other executives of the Company prior to 30 June
2014 is subject to a combination of the Company’s shareholder return (with a 75 per cent weighting) and return on
equity (with a 25 per cent weighting), measured over a three year measurement period. Further information is included
in the Remuneration Report.
The performance rights will not be subject to any further escrow restrictions once they have vested to the employees.
Share trading policy
The trading of shares issued to participants under the Company’s PRP is subject to, and conditional upon, compliance
with the Company’s employee share trading policy.
Non-executive Directors
The PRP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not
currently intended that non-executive directors will be issued with performance rights under the PRP and any such issue
would be subject to all necessary shareholder approvals.
(e) Recognition and measurement
Equity-settled transactions
The fair values of equity settled awards are recognised in share-based payments expense, together with a
corresponding increase in share-based payments reserve within equity, over the period in which the performance
conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting
date).
The cost of these equity-settled transactions is measured by reference to the fair value at the date at which they are
granted. The fair value is determined with the assistance of a valuation software using a trinomial tree which has been
adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy. In valuing equity-settled
transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares
of Independence Group NL (market conditions).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of
the Company, will ultimately vest. This opinion is formed based on the best available information at the reporting date.
Independence Group NL
83