Mr. Dabrowski, State Treasury deputy minister, reiterated his demand for a 40% - 80% dividend payout from last year’s earnings. He added that the final decision would be taken after analysing KGHM’s capital expenditure needs. Yesterday, company’s Supervisory Board approved the management proposal for a 40% dividend payout. The final decision on a dividend payout from 2006 earnings would be taken by AGM in late May 2007.
Our view: We expect a positive market reaction to the news. We reiterate our Buy rating for the stock.