for the year ended 30 June 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 92 Westgold Resources Limited Annual Report 2022 29. SHARE-BASED PAYMENTS (CONTINUED) (d) Share options and performance rights (continued) Range of exercise price of share-based payments The range of exercise price for share-based payments outstanding at the end of the year is $0.00 (2021: $0.00). Weighted average fair value of share-based payments The weighted average fair value of share-based payments granted during the year was $1.43 (2021: $1.77). Valuation of share-based payments The fair value of the equity-settled share-based payments granted under the ESOP is estimated at the date of grant using either a Black & Scholes or a Monte Carlo model, which takes into account factors including the exercise price, the volatility of the underlying share price, the risk-free interest rate, the market price of the underlying share at grant date, historical and expected dividends and the expected life of the option or right, and the probability of fulfilling the required hurdles. – Tranche 3 Options vest subject to performance hurdles, measured for the period 1 July 2019 to 30 June 2022 – Tranche 4 Rights vest subject to performance hurdles, measured for the period 1 July 2020 to 30 June 2023 – Tranche 5 Rights vest subject to performance hurdles, measured for the period 1 July 2021 to 30 June 2024 The following table gives the assumptions made in determining the fair value of the rights granted in Tranche 5. Grant date 11/10/2021 11/10/2021 11/10/2021 11/10/2021 RTSR ATSR AEPS Operational Growth Expected volatility (%) 54% 54% 54% 54% Risk-free interest rate (%) 0.24% 0.24% 0.24% 0.24% Expected life of options (years) 2.7 2.7 2.7 2.7 Options exercise price ($) $0.00 $0.00 $0.00 $0.00 Share price at grant date ($) $1.84 $1.84 $1.84 $1.84 Fair value at grant date ($) $1.20 $0.95 $1.79 $1.79 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.
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