Page 65 - Sundance Resources Ltd Annual Report 2013
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SUNDANCE RESOURCES LIMITED
ANNUAL REPORT 2013
63
directors’ report
(continued)
FOR THE YEAR ENDED 30 JUNE 2013
Long Term Incentive Plan Performance Conditions
The objectives and application of the Long Term Incentive plan is detailed in Section 12.4. The specified Performance Conditions are detailed below
LTI Plan
Grant
Year
Tranche
No.
% of
total
grant
Performance Condition
Measure
Date
Achieved
Forfeit-
ed
2011
1
50% Securing funding commitment for Stage 1 of the Mbalam Iron Ore Project
with a high degree of certainty before 31 December 2011
(Note 1)
31 Dec 2011
0% 100%
1
2
15% Increasing JORC high grade hematite resources by 15% by 31 December 2011
(Note 2)
31 Dec 2011 100% 0%
2
3
25% Achievement of Total Shareholder Returns (TSR) of 15% per annum (cumulative) over a
three year period - to 31 December 2013 or alternatively over a four year period to
31 December 2014
31 Dec 2013
-
-
4
5% Achievement of production targets prior to 31 December 2013
31 Dec 2014
-
-
5
5% Achievement of budgeted operating costs prior to 31 December 2014
31 Dec 2014
-
-
2012
1
40% Achievement of funding (equity and debt) commitment for Stage 1 of the Mbalam Iron Ore
Project before 31 December 2012
(Note 3)
31 Dec 2012 50% 50%
3
2
35% Achieving Total Shareholder Return (‘TSR’) of 15% per annum cumulative over the three year
period from 1 January 2012 to 31 December 2014 or alternatively over the four year period
to 31 December 2015
31 Dec 2014
-
-
3
25% Achieving an increase in Net Present Value (‘NPV’) of the Mbalam Iron Ore Project of 10%.
31 Dec 2015
-
-
2013
1
25% Achieving funding (equity and debt) commitment for Stage 1 of the Mbalam Iron Ore Project.
31 Dec 2013
-
-
2
50% Achieving TSR of 15% per annum cumulative over three year period from 1 January 2013
to 31 December 2015 or alternatively over the four year period to 31 December 2016.
31 Dec 2015
-
-
3
25% Increasing NPV of the project by 10%.
31 Dec 2016
-
-
Notes
(1)
0% of Tranche 1 in the 2011 LTI plan was awarded on the basis that while the SIA with Hanlong had been signed, it did not provide a high degree of certainty of funding for Stage 1 of the Project.
(2)
100% of Tranche 2 of the 2011 LTI plan was awarded (being 15% of the total grant). This was on the basis of the September 2011 ASX update of JORC resources to 521Mt, being a resource increase of 25%.
(3)
A part payment of (50%) of the 40% achievable (net 20%) was awarded in December 2011 due to the receipt of China Development Bank and Everbright financing commitment letters.
Performance Rights Plan (‘PRP’)
The PRP was approved by the shareholders at the Company’s AGM held on 24 November 2010. A copy of the PRP is available from the Company website.
12. REMUNERATION REPORT OVERVIEW
(continued)
12.7 Long Term Incentives and Share Based Payments (continued)
