42 2022 ANNUAL REPORT 12. REMUNERATION REPORT (AUDITED) (cont.) 12.9.5 Performance rights held by KMP under the LTI (cont.) (a) FY22 LTI Performance Rights– Managing Director and KMP (Expiry date: 30 June 2024) Tranche A Tranche B Total Managing Director 1,586,539 679,945 2,266,484 Other KMPs: Jason Greive 961,538 412,088 1,373,626 John Tasovac 769,231 329,670 1,098,901 Total KMP rights 3,317,308 1,421,703 4,739,011 Value per right $0.217 $0.28 Valuation per tranche $719,856 $398,077 $1,117,933 Condition criteria TSR ranking relative to TSR of S&P/ASX All Ordinaries Gold Total Return Index Growth in the Company’s Ore Reserves (proved and probable), excluding 50% of acquired Ore Reserves In addition, vesting of the performance rights is also conditional on the following being exceeded: 1. a positive Company TSR for the measurement period; and 2. 90% of budgeted gold production over the measurement period. TSR > Index TSR +20% 100% Stretch: 35% or over 100% TSR > Index TSR +10% 50% Target: 20% 50% TSR < or equal to Index TSR nil Threshold: 15% 25% < 15% nil (b) Project Incentive Opportunity – Managing Director and KMP (Expiry date: 30 June 2023) Tranche A Tranche B Tranche C Total Managing Director 755,495 377,747 377,747 1,510,989 Other KMPs: Jason Greive 549,451 274,725 274,725 1,098,901 John Tasovac 439,561 219,780 219,780 879,121 Total KMP rights 1,744,507 872,252 872,252 3,489,011 Value per right $0.28 $0.28 $0.28 Valuation per tranche $488,462 $244,231 $244,231 $976,924 Condition criteria Greater than a specified number of gold ounces produced across both KOTH and Darlot mines (50% weighting) Greater than a specified volume of tonnes of ore processed at the KOTH processing plant (25% weighting) Greater than a specified volume of development metres completed at the Darlot underground mine (25% weighting) In addition, a safety gate applies to all PIO KPI’s whereby no workplace fatalities occur at either the KOTH or Darlot operations. The Tranche A Rights have been valued using a hybrid employee share option pricing model which incorporates a Monte Carlo simulation. It uses a correlated simulation that simultaneously calculates the TSR of the Company and the Index on a risk neutral basis as at the vesting date with regards to the measurement period. The percentage by which the return on the stock exceeds the total return on the Index is calculated as at the vesting date and a vesting percentage is calculated from the vesting schedule. The forecast share price at the vesting date is then used to calculate the value of the Right. The price is adjusted based on the vesting percentage, then discounted to its present value. Tranche B of the LTI Rights and Tranches A, B and C of the PIO Rights have non-market based vesting conditions attached and are valued using a single share price barrier model such as a Black Scholes option pricing model. DIRECTORS’ Report (cont.)
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