2016  2015 
    R’000  R’000 



  Carrying amount of the liability relating to the equity participation rights (EPRs) expense arising from cash-settled share-based payment transactions during the year, using the Monte Carlo valuation technique 5 779  2 648 
  EPRs are granted to certain non-managerial employees of the group in terms of the Assore Employee Trust (AET) share-based payment scheme. The number of EPRs allocated in a particular year is based on 10% of the employee’s annual salary on the date of the allocation, relative to the Assore share price. The growth in the value of the EPRs and resultant cash payment is linked to the Assore share price on the date of the payment. This value is reduced by the outstanding balance of the notional debt allocated, which is calculated as the value of the Assore share price on the date that the EPRs were first allocated. The notional amount attracts interest at a rate linked to the prime rate, reduced by 22% of the value of the dividends declared on the Assore shares included in the EPR allocations. The EPRs vest after one year of service rendered by the employee and are settled after 10 years after the initial allocation date.

At 30 June 2016, the fair value of the EPRs, utilising the Monte Carlo valuation technique, amounted to R9 599 000 (2015: R1 985 000). The number of EPRs that have vested to date amount to 155 290 (2015: 108 858), and have a combined intrinsic value of R3 933 000 (2015: Rnil). The increased value is attributable to the increase in the Assore share price during the year, exceeding the accumulated notional debt on the allocations effected in 2016 and 2015.

The following assumptions were used in determining the fair value of the EPRs:
–dividend yield, between 2,39% and 2,47% (2015: 3,59% and 3,72%)
–expected volatility, between 44,95% and 47,18% (2015: 40,74% and 42,02%)
risk-free interest rate between 8,00% and 8,38% (2015: 5,50% and 9,00%)