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d. Capital work-in-progress---------------------------------------------------------------------------- As at As at(thousands of U.S. dollars) Dec 31, 2012 March 31, 2012----------------------------------------------------------------------------Capital work-in-progress 26,968 15,757----------------------------------------------------------------------------
6. Convertible debentures and convertible notes
The Company issued Cdn$310 million, 5 percent convertible debentures (the "Debentures") on December 30, 2009. The Debentures were repaid in full during December 2012.
In December 2012, the Company issued Cdn$115 million principal amount of convertible senior unsecured notes (the "Notes") of which Cdn$32 million (less issuance costs of Cdn$1 million) was allocated to the conversion option and classified in the equity section on the Statement of Financial Position. The equity portion is recorded net of a Cdn$7 million deferred tax liability which results from the temporary difference between the carrying amount and the tax value of the Notes. The liability portion of the Notes is carried net of issuance costs of Cdn$4 million. The issuance costs were allocated pro-rata based on the valuation of the gross proceeds.
The Notes mature on December 31, 2017 and bear interest at a rate of seven percent, with interest payable semi-annually in arrears on June 30 and December 31 of each year, commencing June 30, 2013. The Notes are convertible at the option of the holders into common shares at a conversion price of Cdn$11.30 per share. After December 31, 2015, the Notes are redeemable by the Company, in whole or in part from time to time, provided that the market price of the Company's common shares (defined as the weighted average trading price of the common shares for the twenty consecutive trading days ending five trading days prior to the issue of the notice of redemption) is at least 130% of the conversion price. The Company has the right to use common shares to satisfy some or all of its obligations for the Notes.
7. Share capital
a. Fully paid ordinary shares
The Company has authorized for issue an unlimited number of common shares and an unlimited number of preferred shares. The common shares issued are fully paid and the shares have no par value. No preferred shares have been issued.
b. Share options granted under the employee share option plan
The Company has reserved for issue 7,021,591 common shares for granting under stock options to directors, officers, and employees. The options become vested immediately to five years after the date of grant and expire one to six years after the date of grant. The stock options are settled in equity.
Stock option transactions for the respective periods were as follows:
---------------------------------------------------------------------------- Nine months ended Dec 31, 2012 Year ended March 31, 2012---------------------------------------------------------------------------- Weighted average Weighted average Number of exercise price Number of exercise price options (Cdn$) options (Cdn$)----------------------------------------------------------------------------Opening balance 3,978,003 75.62 4,243,897 85.37Granted 2,169,034 10.72 1,160,750 55.70Forfeited (253,625) 77.21 (155,750) 86.43Cancelled - - (587,500) 102.13Expired (538,811) 80.01 (568,450) 80.97Exercised - - (114,944) 58.01----------------------------------------------------------------------------Closing balance 5,354,601 48.81 3,978,003 75.62----------------------------------------------------------------------------Exercisable 933,380 83.47 952,624 85.19----------------------------------------------------------------------------
