Fair value of options granted
The fair value at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The model inputs for options granted during the year ended 30 June 2007 included:

a) Options are granted for no consideration

b) Expected price volatility of the Company’s shares: 47% (2006 - 40%)

c) Expected dividend yield: 1.95% (2006- 4.4%)

d) Risk-free interest rate: 5.87% (2006 - 5.2%)

The expected price volatility is based on the historic volatility adjusted for any expected changes to future volatility due to publicly available information.

Shares provided on exercise of remuneration options
Details of ordinary shares in the Company provided as a result of the exercise of remuneration options to each Director of Kingsgate Consolidated Limited and other key management personnel of the Group are set out below: