Stock-Based Compensation | Stock-Based Compensation As of September 30, 2015 , TCM has granted stock options, PSUs and RSUs, as discussed below. Stock Options The expiration date and vesting provisions of stock options granted are established at the time an award is made. Stock options vest over 3 years and are exercisable over a period of time not to exceed 10 years from the grant date but generally expire 5 years from the grant date. When an option is exercised, TCM may issue the requisite shares from authorized but unissued common stock, or from treasury stock. The exercise price of options granted prior to March 1, 2011 is equal to the greater of: (i) the volume weighted-average trading price of the underlying shares on the Toronto Stock Exchange ("TSX") over the five consecutive trading days immediately before the grant date, converted to U.S. dollars at the noon exchange rate of the Bank of Canada on the grant date and (ii) if the award date occurs in a trading black-out period, the weighted-average trading price on the TSX over the five consecutive trading days immediately after the black-out period has been lifted. The exercise price of options granted after March 1, 2011 is equal to the volume weighted-average trading price of the underlying shares on the TSX over the five consecutive trading days immediately before the grant date, converted to U.S. dollars at the noon exchange rate of the Bank of Canada on the grant date. The following table summarizes stock option activity during the nine months ended September 30, 2015 : Options Weighted-Average (000's) (1) Stock options outstanding at January 1, 2015 1,386 $ 4.04 Granted 65 $ 0.53 Exercised — $ — Canceled/expired/forfeited (286 ) $ 6.41 Stock options outstanding at September 30, 2015 1,165 $ 3.26 _______________________________________________________________________________ (1) The weighted-average exercise price of options outstanding is shown in US dollars as the majority of the options granted starting in 2011 have a strike price denominated in US dollars. Options with a Canadian dollar strike price have been converted to US dollars for disclosure purposes using the exchange rates on the respective date of grant. For the three and nine months ended September 30, 2015 and September 30, 2014 , TCM recorded compensation expense related to stock options of nil and $0.2 million , respectively. For the three and nine months ended September 30, 2014 , TCM recorded compensation expense related to stock options of $0.1 million and $0.3 million , respectively. As of September 30, 2015 , approximately 0.6 million outstanding options had not vested and were not exercisable. The total unrecognized compensation cost related to these options was $0.3 million as of September 30, 2015 and is expected to be recognized over a weighted-average period of 2.05 years. As of September 30, 2015 , approximately 0.6 million options had vested and were exercisable. The aggregate intrinsic value of these exercisable awards was nil as of September 30, 2015 . Performance Share Units (PSUs) As of September 30, 2015 , TCM had issued a total of 6.1 million PSUs under the Amended and Restated 2010 Long-Term Incentive Plan ("LTIP"), which have been granted to eligible employees. As of September 30, 2015 , 1.9 million of these PSUs have expired or have been forfeited. The vesting of the outstanding PSUs granted subsequent to January 1, 2012 and prior to January 1, 2014 is contingent upon two performance metrics: 1) TCM's Total Shareholder Return (TSR) relative to the Russell 2000 Index during the three -year performance period; and 2) the proven and probable mine reserves replaced by TCM during the three -year performance period as measured by the replacement reserves percentage determined by the plan administrator. The PSUs cliff vest three years from the date of issuance upon achievement of the above metrics. Any PSUs not vested at such time will expire. The vesting of the outstanding PSUs granted subsequent to January 1, 2014 is contingent upon two performance metrics: 1) TCM’s Total Shareholder Return (TSR) relative to the S&P TSX Global Base Metals Index during the three-year period commencing on January 1 of the year in which the grant was made (the “performance period”); and 2) cash flow from operations, defined as TCM’s aggregate “cash generated by (used in) operating activities” less aggregate “capital expenditures,” as reported in the Statements of Cash Flows in the Company’s Annual Report on Form 10-K for each fiscal year in the performance period. The PSUs cliff vest approximately three years from the date of grant, or on the date in the first quarter of the fiscal year immediately succeeding the performance period on which the plan administrator determines and certifies the achievement of the above metrics. Any PSUs not vested at such time will expire. All PSUs granted are accounted for at fair value using a Monte Carlo simulation valuation model on the date of grant. The Monte Carlo model is based on random projections of stock price paths. Expected volatility is calculated using a weighted average of historical daily volatilities and implied volatility and represents the extent to which TCM's stock price performance is expected to fluctuate during the three-year terms of the respective award. For the three and nine months ended September 30, 2015 , TCM recorded compensation expense related to PSUs of $0.9 million and $2.3 million , respectively. For the three and nine months ended September 30, 2014 , TCM recorded compensation expense related to PSUs of $1.0 million and $2.3 million , respectively. As of September 30, 2015 , unrecognized compensation expense related to PSUs totaled $6.7 million that will be recognized on a straight-line basis over a weighted-average period of 2.01 years. The following table summarizes PSU activity during the nine months ended September 30, 2015 : Units Weighted-Average Fair Value (000's) Outstanding at January 1, 2015 1,920 $ 4.59 PSUs granted 2,805 $ 2.04 Canceled/expired/forfeited (502 ) $ 6.98 Outstanding at September 30, 2015 4,223 $ 2.62 Restricted Stock Units (RSUs) As of September 30, 2015 , TCM had issued 5.2 million RSUs to certain eligible employees and directors under the LTIP and under an employment inducement award for the Chief Executive Officer in November 2013. TCM accounts for RSUs at fair value, which is based on the market value of TCM's common shares on the day of grant and recognized over the vesting period of three years. Upon vesting, TCM may issue the requisite shares from authorized but unissued common stock, or from treasury stock. For the three and nine months ended September 30, 2015 , TCM recorded compensation expense related to RSUs of $0.7 million and $2.1 million , respectively. For the three and nine months ended September 30, 2014 , TCM recorded compensation expense related to RSUs of $0.8 million and $1.8 million , respectively. As of September 30, 2015 , unrecognized compensation expense related to RSUs totaled $3.6 million that will be recognized on a straight-line basis over a weighted-average period of 1.92 years. The following table summarizes RSU activity during the nine months ended September 30, 2015 : Units Weighted-Average Fair Value (000's) Outstanding at January 1, 2015 1,455 $ 3.20 RSUs granted 2,218 $ 1.53 RSUs vested and common shares issued (542 ) $ 3.70 Canceled/expired/forfeited (225 ) $ 2.36 Outstanding at September 30, 2015 2,906 $ 1.90 |