Axiom Mining 2015 Annual Report

COMPANY FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

101

26. Directors remuneration

a. Summary of Directors fees and emoluments Directors’ remuneration disclosed pursuant to section 383(1)(a) of the Hong Kong Companies Ordinance is as follows:

2015 AU$000

2014 AU$000

Fees

24

50

Other emoluments – Salaries

256

433

– Superannuation

20

38

– Share-based payment – performance rights*

395 695

320 841

* Performance rights were granted in April 2013 following approval by shareholders at the AGM held on 22 April 2013. The performance rights are charged to expense over the life of the rights. The expense in relation to the performance rights is calculated as fair value using the Black- Scholes model and Performance rights issued will automatically vest into fully paid ordinary shares upon speci c conditions being achieved. The performance condition is a market hurdle as disclosed in part (c) Performance rights plan of the remuneration report. The amounts that appear are amounts required under Australian Accounting Standards to be expensed by the Company in respect of the allocation of long term incentives. Whether or not these performance rights are received will depend on achieving appropriate vesting conditions as discussed above. No performance rights were exercised during the year. b. Performance rights plan Director, Executive and Employee Performance Rights (‘Rights’) Plan The establishment of the Axiom Mining Limited Director and Executive Performance Right Plan was approved by shareholders at the 30 July 2010 Extraordinary General meeting and refreshed at 22 April 2013 AGM. The Director and Executive Performance Right Plan provides appropriate incentives for the Board and management: – to align the economic interests of the Board and management with shareholders – to keep the Board and management focused on the long term growth of the Company, and – to increase shareholder value by achieving certain milestones. Under the plan, participants are granted rights that vest if certain performance conditions are met. Participation in the plan is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. When exercisable, each right is convertible into one ordinary share for no consideration. At the AGM on 22 April 2013, shareholders approved the issue of: 6,666,661 performance rights to Mr Ryan Mount, and 833,332 performance rights to Mr Stephen Williams. The performance rights are subject to Volume Weighted Average Price (‘VWAP’) hurdles and will vest only after the 30 day VWAP has exceeded the relevant hurdles.

AXIOM MINING LIMITED ANNUAL REPORT 2015