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 2024: 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 3 November 2021 12,000,000 2 Nov 24 $0.0310 372,000 $0.100 $0.068 131% 0.69% 17 October 2023 12,000,000 16 Oct 26 $0.0044 52,800 $0.042 $0.014 85% 4.095% 6 February 2024 6,000,000 5 Feb 27 $0.0044 26,400 $0.042 $0.011 102% 4.095% 30,000,000 451,200 Weighted average remaining life: 1.6 years Performance Rights: Grant Date Rights Outstanding Expiry Date Value per Right Total Value $ Vesting Condition Share price at Grant Date Share Volatility Risk Free rate of return 31 Oct 2022: Tranche 1 9,333,335 31 Oct 25 $0.0183 170,800 $0.090 $0.031 131% 3.37% 31 Oct 2022: Tranche 2 9,333,333 31 Oct 25 $0.0249 231,933 TSR $0.031 131% 3.37% 31 Oct 2022: Tranche 3 9,333,332 31 Oct 25 $0.0154 143,733 $0.135 $0.031 131% 3.37% 17 Oct 2023: Tranche 1 10,000,000 17 Oct 26 $0.0072 72,000 $0.067 $0.014 85% 4.095% 17 Oct 2023: Tranche 2 10,000,000 17 Oct 26 $0.0121 121,000 TST $0.014 85% 4.095% 17 Oct 2023: Tranche 3 10,000,000 17 Oct 26 $0.0062 62,000 $0.085 $0.014 85% 4.095% 58,000,000 801,466 The tables below outline the movements for share-based payments options and performance rights during 2024: Options: Grant Date Beginning Balance Granted during year Exercised during year Lapsed Balance at end of year Vested and Exercisable 3 November 2021 12,000,000 – – – 12,000,000 12,000,000 17 October 2023 – 12,000,000 – – 12,000,000 – 6 February 2024 – 6,000,000 – – 6,000,000 – 12,000,000 18,000,000 – – 30,000,000 12,000,000 Notes to the Financial Statements for the year ended 30 June 2024 52 Sunstone Metals Limited Annual Report 2024
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