The State Treasury is expecting to receive lower dividend from KGHM (111 PLN, 3,06%) next year, compared with this year, according to unnamed government source, cited by PAP. Our view: We expect a neutral market reaction to the news. The reduction in dividend seems to be in line with market expectation. We anticipate that payout ratio at KGHM would be cut from extraordinary high 100% for 2006 earnings, to 80% for 2007 earnings.