Westgold Resources Limited Annual Report 2021

90 Westgold Resources Limited Annual Report 2021 for the year ended 30 June 2021 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 29. SHARE-BASED PAYMENTS (CONTINUED) (d) Share options and performance rights (continued) The following table gives the assumptions made in determining the fair value of the rights granted in Tranche 4. Grant date 24/11/2021 24/11/2021 24/11/2021 24/11/2021 RTSR ATSR AEPS Operational Growth Expected volatility (%) 53% 53% 53% 53% Risk-free interest rate (%) 0.11% 0.11% 0.11% 0.11% Expected life of options (years) 2.6 2.6 2.6 2.6 Options exercise price ($) $0.00 $0.00 $0.00 $0.00 Share price at grant date ($) $2.23 $2.23 $2.23 $2.23 Fair value at grant date ($) $1.48 $1.25 $2.17 $2.17 The effects of early exercise have been incorporated into the calculations by using an expected life for the option that is shorter than the contractual life based on historical exercise behaviour, which is not necessarily indicative of exercise patterns that may occur in the future. The expected volatility was determined using a historical sample of the Company’s share price over a three-year period. The resulting expected volatility therefore reflects the assumptions that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. 30. COMMITMENTS (a) Capital commitments At 30 June 2021, the Group has capital commitments that relate principally to the purchase and maintenance of plant and equipment for its mining operations. Capital expenditure commitments 2021 2020 - Within one year 19,360,999 10,098,601 (b) Mineral tenement lease commitments The Company has commercial leases over the tenements in which the mining operations are located. These tenement leases have a life of between six months and twenty-one years. In order to maintain current rights to explore and mine the tenements, the Group is required to perform minimum exploration work to meet the expenditure requirements specified by the relevant state governing body. There are no restrictions placed on the lessee by entering into these contracts. 2021 2020 Mineral tenement leases: - Within one year 4,158,593 3,921,796 - After one year but not more than five years 16,361,419 15,431,391 - After more than five years 25,743,066 27,470,108 46,263,078 46,823,295 (c) Other commitments The Group has obligations for various expenditures such as royalties, production-based payments and exploration expenditure. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. 2021 2020 Royalties paid under contractual arrangements 21,922,481 20,901,094