Page 64 - Sun Resources 2014 Annual Report

16 Share-based Payments (continued)
Class I Performance Options
The Company issued 40,000,000 Class I Performance Options expired on 5.00pm on the 31 March 2013.
These options can be exercised by the holder in the event a substantial portion of the acres the subject of the Amerril
Oil Project are farmed out to a reputable third party or is the subject of a materially value accretive transaction with a
reputable third party, on or before 5.00pm WST on 31 March 2013.
The Company determined that it was “less likely” rather than “more likely” that the performance milestone would be
achieved due to the inherent uncertainty of oil & gas exploration.
A value of zero was given to this class of options.
17 Related Party Transactions
a Parent entity
Transaction between related parties are on normal commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
b Subsidiaries
Interests in subsidiaries are set out in Note 23.
Consolidated
c Director and other key management personnel compensation
2014
$
2013
$
Short-term employee benefits 1,543,234 1,181,260
Post-employment benefits 50,000 59,500
Share-based payments (Long-term benefits) - 791,697
1,593,234 2,032,457
Detailed remuneration disclosures are provided in the remuneration report on pages 22-28.
18 Financing Arrangements
The Group and parent entity had access to the following undrawn borrowing facilities at the reporting date:
Consolidated
2014 2013
$ $
Amounts unused:
Credit card facilities 30,513 15,196
Amounts used:
Credit card facilities 29,487 44,804
19 Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and
price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the performance of the Group. The Group
does not use derivative financial instruments such as foreign exchange contracts and interest rate swaps to hedge
certain risk exposures; preferring instead to hold money in bank accounts in the country and currency where significant
expenditure is expected to be incurred. Projected capital expenditure on exploration and production will be funded by
cash and capital raising (if required).
Risk management is carried out by the executives of the Group and approved by the board of Directors.
The Group’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term
investments, accounts receivable and payable, loans to and from subsidiaries, leases and shares.
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
62 SUN RESOURCES ANNUAL REPORT 2014