Ero Copper Corp.
For the period ended Dec 31, 2023. Filed Mar 7, 2024.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2023 · Filed Mar 7, 2024
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EX-99.3 · (a) Options
(a) Options
During the year ended December 31, 2023, the Company granted 525,138 options (year ended December 31, 2022 -449,248 options) to employees of the Company at weighted average exercise price of $18.00 CAD per share (year ended December 31, 2022 -$17.80 CAD per share) with a term to expiry offive years. These stock options vest inthree equal installments on each annual anniversary date from the date of grant. The total fair value of these options on the grant date was $3.4 million (year ended December 31, 2022 - $2.8 million), which is recognized over the vesting period.
A continuity of the issued and outstanding options is as follows:
Ero Copper Corp.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands of US Dollars, except share and per share amounts)
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Number of Stock Options | Weighted Average Exercise Price (CAD) | Number of Stock Options | Weighted Average Exercise Price (CAD) | |
| Outstanding stock options, beginning of year | 2,781,074 | $15.49 | 4,202,389 | $11.36 |
| Issued | 525,138 | 18.00 | 449,248 | 17.80 |
| Exercised | (1,333,199) | 11.28 | (1,812,558) | 6.35 |
| Forfeited | (86,688) | 18.59 | (58,005) | 19.59 |
| Outstanding stock options, end of year | 1,886,325 | $19.56 | 2,781,074 | $15.49 |
The weighted average share price on the date of exercise for options exercised during the year ended December 31, 2023 was $12.94 (year ended December 31, 2022 - $12.44).
As at December 31, 2023, the following stock options were outstanding:
| Weighted Average Exercise Prices | Number of Stock Options | Vested and Exercisable Number of Stock Options | Weighted Average Remaining Life in Years |
|---|---|---|---|
| $10.01 to $20.00 CAD | 1,406,222 | 645,669 | 3.77 |
| $20.01 to $24.45 CAD | 480,103 | 461,490 | 1.10 |
| $19.56 CAD ($14.79 USD) | 1,886,325 | 1,107,159 | 3.09 |
The fair value of options was determined using the Black-Scholes option pricing model. The weighted average inputs used in the measurement of fair values at grant date of the options are the following:
| Year Ended December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Expected term (years) | 3.2 | 3.0 |
| Forfeiture rate | —% | —% |
| Volatility | 54% | 60% |
| Dividend yield | —% | —% |
| Risk-free interest rate | 3.99% | 3.86% |
| Weighted-average fair value per option | $6.38 | $6.16 |
Ero Copper Corp.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands of US Dollars, except share and per share amounts)
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