XML 47 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2012
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

NOTE 9   STOCK-BASED COMPENSATION

 

On January 19, 2012, at a special meeting of shareholders, the Company’s shareholders approved amendments to the Equity Incentive Plan to, among other things, increase the number of shares of common stock reserved for issuance thereunder from 9 million to 13.5 million shares.

 

During the first half of 2012, the Company granted 0.3 million of stock options to the Company’s Chief Operating Officer, as part of his employment contract, at an exercise price of $5.80 per share.  During the same period in 2011, the Company granted stock options to certain employees, directors and consultants for an aggregate of 0.9 million shares of common stock at an exercise price of $7.10 per share.  The options vest equally over a three year period if the individual remains affiliated with the Company (subject to acceleration of vesting in certain events) and are exercisable for a period of 10 years from the date of issue.

 

The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model.  During the three and six months ended June 30, 2012, the Company recorded stock option expense of $0.5 million and $2.1 million, respectively.  During the three and six months ended June 30, 2011, the Company recorded stock option expense of $0.7 million and $1.2 million, respectively.  The stock option expense reported during the three and six months ended June 30, 2012 also included $0.3 million and $1.0 million, respectively, resulting from stock options assumed by the Company in the acquisition of Minera Andes.

 

The principal assumptions used in applying the Black-Scholes option pricing model for the awards for the three and six months ended June 30, 2012 and 2011 were as follows:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 2012

 

June 30, 2011

 

June 30, 2012

 

June 30, 2011

 

Risk-free interest rate

 

—

 

—

 

0.97%

 

2.33% to 3.09%

 

Dividend yield

 

—

 

—

 

n/a

 

n/a

 

Volatility factor of the expected market price of common stock

 

—

 

—

 

75%

 

90% to 99%

 

Weighted-average expected life of option

 

—

 

—

 

6.0 years

 

6.6 years

 

Weighted-average grant date fair value

 

—

 

—

 

$3.80

 

$5.31

 

 

The following tables summarize information about stock options outstanding and exercisable at June 30, 2012 for the Company’s Option Plan, the replacement options from the acquisition of Nevada Pacific Gold Ltd. in 2007, and the replacement options from the acquisition of Minera Andes in 2012. C$ refers to Canadian dollars.

 

McEwen Mining

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Range of

 

Number

 

Exercise

 

Contractual

 

Number

 

Exercise

 

Contractual

 

Exercise Price

 

Outstanding

 

Price

 

Life (Years)

 

Exercisable

 

Price

 

Life (Years)

 

$0.00-$2.00

 

1,389,000

 

$

1.07

 

6.43

 

1,389,000

 

$

1.07

 

6.43

 

$2.01-$4.00

 

1,054,000

 

$

2.57

 

6.33

 

847,334

 

$

2.59

 

6.02

 

$4.01-$6.00

 

366,500

 

$

5.66

 

8.75

 

66,500

 

$

5.01

 

4.95

 

$6.01-$8.31

 

925,166

 

$

7.20

 

8.32

 

363,830

 

$

7.35

 

7.72

 

 

Nevada Pacific Gold Ltd.

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Range of

 

Number

 

Exercise

 

Contractual

 

Number

 

Exercise

 

Contractual

 

Exercise Price

 

Outstanding

 

Price

 

Life (Years)

 

Exercisable

 

Price

 

Life (Years)

 

C$0.00-C$5.00

 

271,543

 

C$

4.54

 

3.76

 

271,543

 

C$

4.54

 

3.76

 

C$5.01-C$6.70

 

123,050

 

C$

5.96

 

2.51

 

123,050

 

C$

5.96

 

2.51

 

 

Minera Andes

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

Average

 

 

 

Weighted

 

Average

 

 

 

 

 

Average

 

Remaining

 

 

 

Average

 

Remaining

 

Range of

 

Number

 

Exercise

 

Contractual

 

Number

 

Exercise

 

Contractual

 

Exercise Price

 

Outstanding

 

Price

 

Life (Years)

 

Exercisable

 

Price

 

Life (Years)

 

C$0.00-C$2.22

 

310,500

 

C$

1.61

 

1.60

 

297,000

 

C$

1.62

 

1.57

 

C$2.23-C$3.02

 

525,150

 

C$

2.40

 

2.56

 

377,101

 

C$

2.45

 

2.44