Annual report pursuant to section 13 and 15(d)

SHARE-BASED COMPENSATION (Tables)

v2.4.0.6
SHARE-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2012
SHARE-BASED COMPENSATION [Abstract]  
Black-Scholes Option Valuation Assumptions
On November 15, 2012, the Company awarded 10 year options to Director Gary Adams for 100,000 shares.  These options have an exercise price equal to the closing price of the stock on November 15, 2012, which was $7.14 and vest in 20% increments over a 5 year period.  Compensation expense recognized during 2012 in connection with this award was approximately $15,000.  The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions:

Expected volatility
87%
Expected dividends
None
Expected term (in years)
6.5
Risk free interest rate
0.92%
The fair value of the 2011 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions:

Expected volatility
96% to 413%
Expected dividends
None
Expected term (in years)
5-10
Risk free interest rate
1.26% to 3.34%
The fair value of the 2010 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions:

Expected volatility
338% to 467%
Expected dividends
None
Expected term (in years)
5-10
Risk free interest rate
2.37% to 3.68%
Summary Of Status Of Stock Option Awards
A summary of unvested 2009 issuances is as follows:

On July 2009 the Company awarded two stock options to Mr. Hatem El Khalidi and his wife, Ingrid El Khalidi, tied to the performance of AMAK as follows: (1) an option to purchase 200,000 shares of the Company's common stock with an exercise price of $3.40 per share, equal to the closing sale price of such a share as reported on the Nasdaq National Market System on July 2, 2009, provided that said option may not be exercised until such time as the first shipment of ore from the Al Masane mining project is transported for commercial sale by AMAK, and further that said option shall terminate and be immediately forfeited if not exercised on or before June 30, 2012; and (2) an option to purchase 200,000 shares of the Company's common stock with an exercise price equal to the closing sale price of such a share as reported on the Nasdaq Stock Market on July 2, 2009, provided that said option may not be exercised until such time as the Company receives its first cash dividend distribution from AMAK, and further that said option shall terminate and be immediately forfeited if not exercised on or before June 30, 2019.  Compensation expense of approximately $97,000, $97,000 and $373,000 was recognized during the years ended December 31, 2012, 2011, and 2010, respectively, related to the options awarded to Mr. El Khalidi. Approximately $413,000 was reversed during 2012 due to the performance condition associated with 200,000 shares in options not being met as required by the terms of the award by June 30, 2012.  Previously, on May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited all options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders.  As discussed in Note 15 the Company is currently in litigation with Mr. El Khalidi and in connection therewith, the Company is currently reviewing its legal right to withdraw the options and benefits.  However, as of December 31, 2012, the options vesting upon a cash dividend distribution from AMAK continues to be shown as outstanding.
 
A summary of the status of the Company's stock option awards is presented below:

   
Stock Options
   
Weighted
Average
Exercise
Price
Per Share
   
Weighted
Average
Remaining
Contractual
Life
   
Intrinsic
Value
(in thousands)
 
Outstanding at December 31, 2011
    1,347,750     $ 3.66              
   Granted
    100,000       7.14              
   Expired
    (200,000 )     3.40              
   Exercised
    (74,570 )     3.05              
   Forfeited
    -       -              
Outstanding at December 31, 2012
    1,173,180     $ 4.04       7.5     $ 5,009  
Expected to vest
    673,252     $ 4.58       8.3     $ 2,511  
Exercisable at December 31, 2012
    299,928     $ 3.26       6.5     $ 1,515  
Summary Of Status Of Non-Vested Options
A summary of the status of the Company's non-vested options is presented below:

   
Shares
   
Weighted
Average
Grant-Date
Fair Value
Per Share
 
Non-vested at January 1, 2012
    1,199,083     $ 3.83  
   Granted
    100,000       7.14  
   Expired
    (200,000 )     3.40  
   Vested
    (225,831 )     3.78  
Non-vested at December 31, 2012
    873,252     $ 4.31