Shareholders of KGHM postponed the decision on the dividend payout from 2005 earnings until June 14, during the AGM yesterday, after the proposal from State Treasury representative. The management has proposed a 48% payout ratio resulting in PLN 5.5 per share dividend, however, there are rumours, that the State Treasury, the largest shareholder would press for higher dividend.
Apart from that, minor personnel changes to company’s board took place, with current CEO Mr. Skora, being elected for the next turn in office and former CEO Mr. Bladek leaving the board. We reiterate our Buy rating for the stock with PLN 146.9 fair value estimate.