Microsoft Word - MOO A.Report 2015 Ver10 18092015
MONTO MINERALS LTD ABN 71 063 144 865
Financial Report
For the Year Ended 30 June 2015
CONTENTS
ABN 71 063 144 865
Financial Report - 30 June 2015
Page
Corporate Directory 1
Directors' Report 2
Auditor's Independence Declaration 16
Consolidated Financial Report 17
Directors' Declaration 44
Independent Auditor's Report to the Members 45
Corporate Governance Statement 47
Additional Shareholder Information 54
Corporate Directory
Directors James Allchurch
Managing Director
Gary Steinepreis
Non-Executive Chairman
Patrick Burke
Non-Executive Director
Company Secretary Gary Steinepreis
Corporate Directory
30 June 2015
Registered Office Level 1, 33 Ord Street
West Perth Western Australia 6005 Telephone: 08 9420 9300
Share Register Link Market Services Limited Level 4 Central Park
152 St Georges Terrace Perth WA 6000
PO Box 20013 World Square NSW 2002 Telephone: 1 300 554 474 +61 2 8280 7001
Auditor BDO Audit (WA) Pty Ltd 38 Station Street
Subiaco Western Australia 6008 Telephone: 08 6382 4600
Bankers Westpac Banking Corporation 109 St Georges Terrace
Perth Western Australia 6000
Stock Exchange Listing Monto Minerals Ltd's shares are listed on the
Australian Securities Exchange, home branch, Perth.
Code: MOO
Website www.montominerals.com
Your directors present their financial report on Monto Minerals Ltd and its subsidiaries (Monto or the Company or the Group) for the year ended 30 June 2015.
DIRECTORS
The names of each person who have been directors during the year and continue in office at the date of this report are:
Gary Steinepreis - Non-Executive Chairman James Allchurch - Managing Director Patrick Burke - Non-Executive Director
Company Secretary
The company secretary is Gary Steinepreis. Mr Steinepreis is also a director of the Company. Details on Mr Steinepreis and his qualifications are included under the information on directors.
PRINCIPAL ACTIVITY
The principal continuing activity of the Company during the financial period was mineral exploration. Following the end of the financial year, Monto committed to the acquisition of the user generated content marketing platform company 'ShareRoot Inc' (ShareRoot).
OPERATING RESULT
The loss for the financial year after providing for income tax was $4,476,738 (2014:$2,666,040). The major factors contributing to the loss were:
-
The impairment of the carrying value of the Herberton Tin and Baal Gammon Copper Exploration Assets (Refer note 14) $4,157,555 (2014:$2,035,146); and
-
The amortisation of performance rights and options issued $27,806 (2014:$128,512).
Additional information on the operations and financial position of the Company and its business strategies and prospects is set out in this directors' report and the financial report.
REVIEW OF OPERATIONS
Herberton Project and Baal Gammon
The Group continues to maintain its strategic tenement holding in the Herberton Region, Queensland and will re-evaluate the projects in the coming months, subject to completion of the acquisition of ShareRoot, seeking either a strategic partner or divestment.
Herberton Project
-
Aeromagnetic data indicates several prospects where the granite/overlying metasediment contact is close to surface providing a series of large blind tin targets through interpretation and identification of pluton cupolas and associated structures.
-
Exploration at Western Hill indicates the potential to define low grade mineralisation adjacent to the more discrete structurally controlled high grade (>20% tin) quartz/chlorite lodes which are identifiable using IP.
-
IP identified as crucial tool in identifying potential blind tin mineralised features at prospect scale.
Targeting Large Tonnage Tin Potential
The high grade tin potential of the Herberton Project has been clearly demonstrated through historic mining and drilling results generated by Monto and previous operators. The precise genesis and controls on tin mineralisation have not been considered at Herberton despite the rich tin mining history of over 76,000t of tin metal produced.
In conjunction with recently conducted prospect-scale exploration that has included several drilling programmes, Monto is seeking to gain an understanding of the broader controls on tin mineralisation and how these may be identified through the application of modern exploration techniques such as geophysics.
REVIEW OF OPERATIONS (continued)
Herberton Project (continued)
Monto has conducted significant research into the potential of several geophysical survey techniques to identify large, blind (overlain by un-mineralised material), moderate grade tin mineralisation. Research and exploration to date indicates that large tonnage tin mineralisation exists within, and associated with, felsic intrusive units of the Herberton Project.
Monto's geophysical consultant has determined that additional processing, particularly magnetic inversion, will likely delineate the thickness of Hodgkinson Formation sediments overlying potentially mineralised granites. Magnetic inversion and analysis of enhanced resolution RTP data indicates the potential to identify pluton cupolas of the tin-mineralising Permian/Carboniferous granites intruded within the overlying metasediments. Also evident through geophysical interpretation is the depth from surface of the granite/sediment contact, particularly relevant in the vicinity of cupolas which are interpreted to be the main source of tin mineralisation. Further, once the three-dimensional morphology and depth from surface of the granite are ascertained the geophysical data is also providing information on local structural features primarily in the overlying sediments which likely occurred contemporaneously with the emplacement of the granite.
Once the broader reprocessed aeromagnetic data has identified a shallow cupola (or other granite intrusion) with attributes described above, various induced polarisation (IP) techniques could be employed to further define the granitic cupola and associated features in order to provide refined prospect-scale drill targets.
Recent geophysical characterisation of hand specimens derived from various tine ores and representative country rock have indicated that structural features and alteration associated with high grade (20-25% tin) quartz/chlorite tin lodes (known locally as 'black rock') at Western Hill has demonstrated anomalism when IP and sub audio magnetics (SAM/MMR) are employed.
Western Hill is situated immediately to the south of the Baal Gammon mine and incorporates a series of underground high grade mines. These mines were amongst the largest producers in the Herberton Tin Field, with most developed from 1881 - 1930 with some additional production in the early 1980s. The Western Hill mines collectively produced over 1,750t of tin concentrate (~1,225t of tin metal), with mines being typically very high grade (20-25% tin), relatively low ore tonnage producers.
The work undertaken by Monto has potentially identified a set of geophysical tools for detecting and defining subsurface tin mineralisation in the Herberton Tin Field.
Compelling IRGS Target - Montalbion
The Montalbion lodes were discovered in 1885 and by 1895 1,583,693ozs of silver had been recovered from 39,170t of ore - an average of about 40ozs per ton (or 1,244g/t). The ore bodies consist of a variety of lead, silver, copper and zinc minerals associated with quartz veins and they form lenticular and pipe-like bodies situated along breccia zones. Most of the silver came from a zone of deep weathering and secondary enrichment which bottomed at about 60 metres.
To determine the extent of potential mineralisation at Montalbion, reconnaissance rock chip sampling was recently conducted on the flanks and areas of lower relief surrounding Montalbion Hill where no previous mining has been undertaken. Mapping by previous explorers identified a series of small, sub- parallel quartz veins that have not previously been sampled. The veins are of similar orientation to the known mineralisation at Montalbion and may represent the surface expression of underlying mineralisation.
As analysis was undertaken in house by hand held XRF, gold results cannot be obtained. However, the presence of intrusion related gold mineralisation (IRGS) pathfinder minerals will be used to determine samples for submission to a commercial laboratory for gold analysis. To date, five samples have returned elevated arsenic, antimony, silver and base metal pathfinder results with best values of 828ppm silver, 0.34% arsenic, 518ppm antimony, 9.8% lead and 0.40% zinc.
REVIEW OF OPERATIONS (continued)
Herberton Project (continued)
Historical mining of the Montalbion silver mines through the late 1800s targeted ultra-high grade pockets of ore using hand sorting based on the visual inspection of mined material. Due to the selective high grade mining methods employed, the small extent of the historic workings and the lack of exploration drilling there is significant potential to define additional mineralisation between the previously mined lodes, extensions along strike and at depth. Furthermore, there has been no investigation as to the potential for lower grade, bulk tonnage polymetallic mineralisation. The potential for the discovery of further mineralisation is highlighted by the fact that samples collected at Albion (one of the Montalbion group mines) were from brecciated wall rock to the mined lode, returning values to 212g/t silver, 0.6% copper, 4.9% lead and 0.26g/t gold.
Also intriguing is the geophysical signature and structural setting of the Montalbion area. The Montalbion mineralisation lies adjacent to a regional scale northwest-southeast trending mafic dyke. Aeromagnetic imagery shows the dyke as a magnetic high. Where the dyke intersects the Montalbion mines it is disjointed and a discrete magnetic low is apparent. Based on the multielement mineralisation, the presence of a magnetic low, breccia pipe style mineralisation, confirmed gold mineralisation and the description of a series of (sheeted) massive quartz and chalcedony veins the mineralisation at Montalbion may represent the surface expression of an IRGS.
Baal Gammon Mine
The operator of the Baal Gammon copper/silver mine in North Queensland has the right to operate the Baal Gammon mine under the Minerals Rights Agreement (MRA) whereby the operator is responsible for all costs and obligations with respect to Baal Gammon mine development and operations, including environmental obligations. Under the MRA, Monto is entitled to a 2.5% net smelter royalty (NSR) payable on all metals for the first 550,000t of Baal Gammon ore processed, dropping to 2% NSR payable on all metals over 550,000t of Baal Gammon ore processed.
Subsequent to the end of the financial year, Baal Gammon Copper Pty Ltd (BG) received notification from the Queensland Department of Environment and Heritage Protection (DEHP) of the commencement of an investigation into potential breaches of the Environmental Protection Act 1994 (EPA). BGC is not the operator of the Baal Gammon site which is subject to the investigation however, is the holder of the Environmental Authority. DEHP has issued a clean-up notice under the EPA in relation to the Baal Gammon site. BG and the operator do not consider there is any basis for the issue of the clean-up notice and are seeking legal advice. The clean-up notice incorporates measures to prepare the site for the forthcoming wet season, these measures had been adopted by the operator prior to receipt of the clean-up notice and works have commenced. The matter is at an early stage and the Company proposes to vigorously defend its position.
Competent Persons Statement
The majority of information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves was prepared and first disclosed under the JORC code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not changed since it was last reported. Exploration Results relating to the Governor Norman prospect were prepared under the JORC Code 2012.
The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr James Allchurch, a Director, who is a Member of the Australian Institute of Geoscientists. Mr Allchurch has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves' (The JORC Code). Mr Allchurch consents to the inclusion in this announcement of the statements based on this information in the form and context in which it appears.
DIVIDENDS
No dividends were paid or are proposed to be paid to members during the financial year.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
Monto committed to the acquisition of user generated content (UGC) marketing platform company ShareRoot Inc (ShareRoot). ShareRoot is a Silicon Valley-based technology company focused on the future of social media expansion and marketing, specialising in the substantial opportunity of UGC.
ShareRoot has developed an innovative Software as a Service (SaaS) platform that assists organisations in enhancing and personalising their marketing to meet these new age demands. The platform provides brands the ability to source UGC from various social channels such as Instagram and Twitter.
Monto has to date provided $100,000 to ShareRoot by way of an exclusivity and option fee. Due diligence is well advanced and upon exercising the right to acquire 100% of the issued capital of ShareRoot, a further $200,000 will be payable by Monto on or around 16 September 2015.
The proposed transaction has committed the Company to the acquisition of 100% of all of the issued equity (including common and convertible notes) in ShareRoot Inc.
The consideration for the acquisition will be satisfied by the issue and allotment of 140,000,000 Monto ordinary shares (on a post consolidation basis) at an indicative price of $0.05 per share to the shareholders of ShareRoot Inc. These shares will be subject to ASX escrow provisions.
In addition, a Performance Rights Plan (PRP) has been agreed which will be implemented subject to shareholder approval and compliance with the ASX Listing Rules including the ASX escrow provisions. The PRP allows for the issue to future board members and key incoming management of Monto a total of 120,000,000 performance rights (on a post consolidation basis) which are automatically converted into shares in Monto on a one for one basis on achievement of the following milestones:
Tranche 1 - Two-year period, will vest upon contracted six month revenue exceeding $1,000,000 (i.e.
$2,000,000 annualised contracted revenue run rate).
Tranche 2 - Three-year period, will vest upon the 30-day VWAP of Monto exceeding $0.10 per share and 100 signed and paying customers.
Tranche 3 - Five-year period, will vest upon the 30-day VWAP of Monto exceeding $0.20 per share and contracted 6 month revenue exceeding $3,000,000 (i.e. $6,000,000 annualised contracted revenue run rate).
Tranche 4 - Five-year period, will vest upon the 30-day VWAP of Monto exceeding $0.20 per share and contracted six month EBITDA exceeding $1,000,000 (i.e.: $2,000,000 annualized contracted EBITDA).
In order for the transaction to proceed, ShareRoot recently completed interim financing through the issue of $500,000 in convertible notes which will convert upon a successful ASX listing. The interim financing will be used by ShareRoot to fund transaction costs and working capital in the lead up to ASX listing. The converted shares will be subject to ASX escrow provisions.
As a condition for the transaction to proceed and in order to provide working capital for due diligence and transaction costs, Monto has undertaken a non-renounceable entitlement issue to raise $500,415 through the issue of three ordinary shares for every 8 ordinary shares held at $0.001 per share. Further, for every two ordinary shares issued there will be a free attaching option exercisable at $0.00111 on or before 31 December 2017. It is Monto's intention that the option will be listed, subject to compliance with the ASX Listing Rules. The shares and options were issued and allotted on 17 September 2015.
In addition to the above and subject to the receipt of shareholder approval, Monto will also undertake a post-consolidation capital raising of a minimum of $3,000,000 and up to a maximum of $8,000,000, at
$0.05 per ordinary share, to be completed under a prospectus. Further, for every two ordinary shares issued there will be a free attaching option exercisable at $0.05 on or before 31 December 2017. It is Monto's intention that the option will be listed, subject to compliance with the ASX Listing Rules. All funds raised will be employed towards the business development of ShareRoot.
EVENTS SINCE THE END OF THE FINANCIAL YEAR (continued)
It is the intention of the parties to finalise a formal agreement to facilitate the proposed transaction. This transaction will be a significant change to the nature and scale of the Monto's main business activity which will require re-compliance with ASX's admission requirements in Chapters 1 and 2 of the ASX Listing Rules.
On the basis that formal documents are executed, and in addition to obtaining shareholder approvals, the acquisition is subject to Monto completing a consolidation of its share capital and re-compliance with Chapters 1 and 2 of the ASX Listing Rules. The consolidation would be on a ratio to be determined by Monto but consistent with the ASX Listing Rules.
Subsequent to the end of the financial year, Baal Gammon Copper Pty Ltd (BG) received notification from the Queensland Department of Environment and Heritage Protection (DEHP) of the commencement of an investigation into potential breaches of the Environmental Protection Act 1994 (EPA). BGC is not the operator of the Baal Gammon site which is subject to the investigation however, is the holder of the Environmental Authority. DEHP has issued a clean-up notice under the EPA in relation to the Baal Gammon site. BG and the operator do not consider there is any basis for the issue of the clean-up notice and are seeking legal advice. The clean-up notice incorporates measures to prepare the site for the forthcoming wet season, these measures had been adopted by the operator prior to receipt of the clean-up notice and works have commenced. The matter is at an early stage and the Company proposes to vigorously defend its position.
Other than as disclosed herein, there has been no matter or circumstance that has arisen that has significantly affected, or may significantly affect:
-
the Group's operations in future financial years, or
-
the results of those operations in future financial years, or
-
the Group's state of affairs in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Company's business strategies and prospects for growth in future financial years have been included in this report in the review of operations.
ENVIRONMENTAL REGULATIONS
The Company's operations are subject to the environmental regulation under the laws of the Commonwealth and State of Queensland. Refer to Events since the end of the financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS OF THE GROUP
There were no significant changes in the state of affairs of the group during the financial year, however subsequent to year end potential significant changes have taken place. Refer to 'Events since the end of the financial year' in the directors' report and note 23 for details.
INFORMATION ON CURRENT DIRECTORS
JAMES ALLCHURCH (Managing director, age 38)
Experience and Expertise
Mr Allchurch is a geologist with experience in mineral exploration, geotechnical assessment and mining operations. He has expertise in the identification and assessment of resource projects over a broad range of commodities in geographies including Europe, Australia, Africa and South America.
Other Current Directorships
Mr Allchurch is not currently a director of any other publicly listed company.
Former Directorships in the Last Three Years
None
Special Responsibilities
Managing Director
INFORMATION ON CURRENT DIRECTORS (continued)
GARY STEINEPREIS (Non-executive Chairman, age 49)
Experience and Expertise
Mr Steinepreis holds a Bachelor of Commerce degree from the University of Western Australia and is a Chartered Accountant. He provides corporate, management and accounting advice to a number of companies involved in the resource, technology and leisure industries.
Other Current Directorships
Norseman Gold Plc since 3 December 2007 AVZ Minerals Limited since 30 November 2012 New Horizon Coal Ltd since 4 June 2010
Former Directorships in the Last Three Years
Intercept Minerals Ltd 8 April 2014 to 2 February 2015
WAG Limited 2 November 2006 to 23 May 2013
Special Responsibilities
Company Secretary
PATRICK BURKE (Non-Executive director, age 46)
Experience and Expertise
Patrick Burke holds a Bachelor of Laws degree from the University of Western Australia. He has more than twenty two years' experience working in law firms and companies in Australia and Ireland.
His expertise is in corporate, commercial and securities law with an emphasis on capital raisings and mergers and acquisitions. He contributes general corporate and legal skills along with a strong knowledge of the Australian Securities Exchange requirements.
Other Current Directorships
Anatolia Energy Limited since 21 July 2014 Hazelwood Resources Ltd since 8 September 2014
Former Directorships in the Last Three Years
Sirocco Energy Ltd 23 July 2009 to 23 December 2013
Intercept Minerals Limited 8 April 2014 to 2 February 2015
Emergent Resources Ltd 1 April 2013 to 31 May 2014
Minerals Corporation Limited 17 February 2011 to 2 December 2013
Fraser Range Metals Group Ltd 14 March 2011 to 5 February 2013
WAG Limited 20 December 2006 to 23 May 2013
MEETINGS OF DIRECTORS
The numbers of meetings of the Company's Board of Directors held during the year ended 30 June 2015, and the numbers of meetings attended by each director were:
Name of Director Number of Meetings - A Number of Meetings - B
Gary Steinepreis 8 8
Patrick Burke 8 8
James Allchurch 8 8
A = Number of meetings attended
B = Number of meetings held during the time the Director held office during the year
DIRECTORS' INTERESTS IN THE COMPANY
At 18 September 2015, Directors, in office, held a relevant interest in the following securities of the Company:
DIRECTORS' INTERESTS IN THE COMPANY (continued)
Name Ordinary
Shares
Options Performance Rights
James Allchurch 73,425,000 23,012,500 -
Patrick Burke 26,400,000 6,100,000 - Gary Steinepreis 183,150,000 29,975,000 -
REMUNERATION REPORT (AUDITED)
The principles adopted by the Board are set out under the following main headings:
-
Principles used to determine the nature and amount of remuneration
-
Details of remuneration
-
Employment contracts of Directors and Senior Executives
-
Performance based remuneration
The information provided under headings 1 to 4 above includes remuneration disclosures that are required under section 300A of the Corporations Act 2001.
-
Principles used to determine the nature and amount of remuneration
The objective of the Company's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered.
The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders, and conforms to market best practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
-
competitiveness and reasonableness;
-
acceptability to shareholders;
-
performance linkage / alignment of executive compensation;
-
transparency; and
-
capital management.
The Company has structured an executive remuneration framework that is market competitive and complimentary to the reward strategy of the organisation.
Alignment to shareholders' and program participants' interests:
-
focuses on sustained growth in shareholder wealth;
-
attracts and retains high calibre executives;
-
rewards capability and experience; and
-
provides a clear structure for earning rewards.
Fees and payments to directors reflect the demands and responsibilities of the directors and are in line with the market.
-
Details of Remuneration
The key management personnel of the Company including the directors and company secretary are: James Allchurch Director
Patrick Burke Director
Gary Steinepreis Director / Secretary
Erik Norum * Exploration Manager
* Erik Norum ceased employment on 9 August 2014
Remuneration Governance
There is no remuneration committee the entire board which comprises three directors are responsible for remuneration packages. Remuneration consultants were not used in the establishment of remuneration packages.
REMUNERATION REPORT (AUDITED) (continued)
-
Details of Remuneration (continued)
Remuneration Governance (continued)
At the 2014 AGM, 99.9% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2014. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Salaries, fees and superannuation are fixed payments whilst equity based payments are linked to performance. Of the total remuneration for the financial year ended 30 June 2015, 7.52% was linked to performance.
The amount of remuneration of the directors and key management personnel is set out below:
|
2015
|
Short term employee benefits
|
Post-employment benefits
|
Equity based payments
|
Termination Payment
|
|
Salary Directors
|
Superannuation
|
Options &
|
Total
|
|
Name
|
fees
|
rights
|
|
$ $
|
$
|
$
|
$
|
$
|
|
Directors:
James Allchurch
|
182,500 -
|
17,338
|
27,806
|
-
|
227,644
|
|
Patrick Burke
|
- 18,000
|
-
|
-
|
-
|
18,000
|
|
Gary Steinepreis
|
16,438 -
|
1,562
|
-
|
-
|
18,000
|
|
Key Executives:
Erik Norum
|
35,922 -
|
3,413
|
-
|
66,680
|
106,015
|
|
TOTAL
|
234,860 18,000
|
22,313
|
27,806
|
66,680
|
369,659
|
There were no equity based payments made during the year ended 30 June 2015. Equity based payments consisted of the continued amortisation of performance rights.
2014 Short term employee benefits
Post-employment benefits
Equity based payments
|
Name Directors:
|
Salary
$
|
Directors
fees
$
|
Superannuation
$
|
Options &
rights
$
|
Bonus Payment
$
|
Total
$
|
|
James Allchurch
|
210,000
|
-
|
19,425
|
84,910
|
-
|
314,335
|
|
Patrick Burke
|
6,000
|
29,445
|
555
|
-
|
-
|
36,000
|
|
Gary Steinepreis
|
6,000
|
29,445
|
555
|
-
|
-
|
36,000
|
|
Key Executives:
Erik Norum
|
200,041
|
-
|
18,504
|
-
|
-
|
218,545
|
|
TOTAL
|
422,041
|
58,890
|
39,039
|
84,910
|
-
|
604,880
|
-
Employment Contracts of Directors and Senior Executives
The directors, other than James Allchurch, serve on a month to month basis and are remunerated for their roles in the day to day activities of the Company. Pat Burke provided management services on a fee for service basis at the rate of $1,500 per month. Gary Steinepreis was paid a salary and superannuation in the amount of $1,500 per month. There are no termination payments payable to directors.
The managing director, James Allchurch, has a service contract with the Company however, in order to help preserve the Company's cash position Mr Allchurch agreed to a reduction in his remuneration package. From 1 April 2015 Mr Allchurch agreed to a gross salary of $100,000 per annum plus statutory superannuation.
The basic terms and conditions of the original service contract with Mr Allchurch are as follows:
-
A salary of $210,000 per year is payable monthly in arrears;
-
The contract can be terminated by one month's written notice given by either party;
-
Entitled to four weeks annual leave for each completed year of service; and
-
Superannuation is payable at the statutory rate.
REMUNERATION REPORT (AUDITED) (continued)
-
Performance-based Remuneration
Executive directors and key management personnel received equity based payments as part of their compensation packages during the year ended 30 June 2015 - $27,806 (30 June 2014 - $84,910).
2015
Name
Directors:
Options Number
Options
$ %*
Performance
rights Number #
Performanc e rights #
$ %*
Bonus Payment
$ %*
James Allchurch - - - - 27,806 12.21 - - Patrick Burke - - - - - - - -
Gary Steinepreis - - - - - - - -
Key Executives:
Erik Norum - - - - - - - -
TOTAL - - - - 27,806 7.52 - -
# Equity based payments consisted of the continued amortisation of performance rights.
* The value of options, performance rights and bonus payment as a percentage of total remuneration.
2014
Name
Directors:
Options Number
Options
$ %*
Performance
rights Number #
Performance
rights
$ %*
Bonus Payment
$ %*
James Allchurch - - - 9,000,000 84,910 27 - - Patrick Burke - - - - - - - -
Gary Steinepreis - - - - - - - -
Key Executives:
Erik Norum - - - - - - - -
TOTAL - - - 9,000,000 84,910 14 - -
Shareholders, at a general meeting held on 22 February 2012, approved the establishment of the Monto Employee Performance Rights Plan (PRP), including the grant of performance rights to Mr James Allchurch, a director of the Company, under the PRP.
To achieve its corporate objectives, the Company needs to attract and retain its key staff. The board believes that grants made to eligible participants under the PRP will provide a powerful tool to underpin the Company's employment and engagement strategy, and that the implementation of the plan will enable the Company to recruit, incentivise and retain key management personnel (including directors) needed to achieve the Company's business objectives, link the reward of key staff with the achievements of strategic goals and the long term performance of the Company, align the financial interest of participants with those of shareholders and provide incentives to participants to focus on superior performance that creates shareholder value.
The PRP provides for the issuance of performance rights which, upon a determination by the board that the performance conditions attached to the performance rights have been met, will result in the issue of one ordinary share in the Company for each performance right. Performance rights will be issued for no consideration and no amount will be payable upon exercise thereof.
The performance conditions may include one or more of the following:
-
service to the Company of a minimum period of time;
-
achievement of specific performance conditions by the participant and/or by the Company;
-
a vesting period after satisfaction of performance conditions before the rights vest, or
-
such other performance conditions as the board may determine.
Performance rights have an expiry date which cannot be extended without shareholder approval. The performance conditions have a milestone date which the board can extend where it considers that unforeseen circumstances or events have caused a delay in achieving the performance condition by the milestone date. The board shall not be permitted to extend the milestone date beyond the expiry date of the performance rights.