KGHM: Proposes 30% dividend payout

CEO Herbert Wirth said yesterday being quoted by Reuters, KGHM has recommended that 30% of its 2012 profit of PLN 4.87 bn to be spent on its full-year dividend. The 30% figure is the same as the state-controlled miner wanted to pay out of its 2011 record profit as dividend, but shareholders approved the state's motion to squeeze out more than 50% as the government chased down funds to ease its budget deficit.

Our view:
We expect the dividend payout to reach 50% and DPS of 13.74 implying a dividend yield of almost 10%.