Note 17. Earnings per share 2022 cents 2021 cents Basic earnings per share (0.1) 0.1 Diluted earnings per share (0.1) 0.1 Weighted average number of shares used as the denominator Number Number Weighted average number of shares used as the denominator in calculating basic earnings per share 2,290,407,950 2,209,987,646 Effect of dilution: Share options/performance rights 53,020,309 2,290,407,950 2,263,007,955 $ $ Profit/(losses) used in calculating basic and diluted losses per share (2,866,269) 3,224,218 Due to the loss incurred in the current year no share options or performance rights have been included in the calculation as they have an anti-dilutive effect on the loss. Note 18. Share-based payments (a) Issue of Options and Performance Rights The fair values of the options and performance rights have been determined by an external party using a Trinomial Lattice model for options which defines the conditions under which employees are expected to exercise their options after vesting in terms of the share price reaching a specified multiple of the exercise price, and a Monte Carlo simulation for performance rights. Share price volatility has a powerful influence on the estimation of the fair value of an option and performance right, much of the value of which is derived from its potential appreciation. The more volatile the share price, the more valuable the option. Volatility for the fair value of the options has been determined by the external party performing the valuation using the historical 3 year volatility. The tables below outline the key details for all options and performance rights outstanding as at 30 June 2022: Options: Grant Date Options Outstanding Expiry Date Value per Option Total Value Exercise Price Share price at Grant Date Share Volatility Risk Free rate of return Options: 31 October 2019 8,000,000 31/10/2022 $0.0046 $36,800 $0.042 $ 0.019 94% 0.66% 3 November 2021 12,000,000 2/11/2024 $0.0310 $372,000 $0.100 $0.068 131% 0.69% 20,000,000 $408,800 Weighted Average remaining life 1.5 years Notes to the Financial Statements for the year ended 30 June 2022 50 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022
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