Sharebased payment transactions
Provisions
Asset Retirement Obligations
SharebasedpaymentarrangementsinwhichtheCompanyhasanobligationtosettle,ortheholderoftheinstrument mayelect to receive settlement, in cash are accounted for as cashsettled sharebased payment transactions.
Sharebased payment arrangements in which the Company issues its own equity instruments as consideration for goods or services are accounted for as equitysettled sharebased payment transactions.
Stripping costs incurred during the production stage of a pit are accounted for as costs of the inventory produced during the period that the stripping costs were incurred, unless these costs are expected to provide a future economic benefit. Capitalized open pit mine development costs are depreciated once the open pit has entered production and the future economic benefit is being derived. Capitalized open pit mine development costs are depreciated using the unit of production method over the life of the ore body to which accessibility has been improved by the stripping activity.
A defined contribution plan is a postemployment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution savings plans are recognized as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution savings plan that are due more than 12 months after the end of the period in which the employees render services are discounted to their present value.
Notes to the Consolidated Financial Statements
On March 24, 2016 the Company adopted a stock option plan pursuant to which a maximum of 5,000,000 common shares or 8.50% of the current issued and outstanding common shares of the Company may be reserved for issuance pursuant to the exerciseofoptions.Thestockoptionshaveatermoften(10)years,withonefifth ofthegrantvestingeverytwelve(12)months fromgrantday.Thegrantdatefairvalueofequityclassifiedsharebasedpaymentawardsgrantedtoemployeesisrecognizedas an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as anexpense is adjusted to reflect the number of awards for which the related service period are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that did meet the related service period and nonmarket performance conditions at the vesting date.