Poltava GOK To Increase Charter Fund By 4.9%.

This issue is on the agenda of the company’s February 28, 2006 AGM. According to the agenda, the first stage of subscription for the additionally issued shares will take place from April 10 to April 24, 2006, and the second – from April 25 to April 26, 2006. Share issue proceeds will comprise USD 10.65 mln. Another issue on the agenda will be the approval of the subscription results for an earlier share issue voted for on April 22, 2005, which increased the company’s charter fund by 34.7%. Concorde Capital: We think that the share issue proceeds will be used to conduct some minor modernizations at the plant, as the expected amount of capital to be raised is quite small. However, Poltava GOK (PGOK: BUY) is considering the construction of an electric steel mill with a capacity of 3 mln mt annually. The estimated cost of the project is over USD 0.5 bln. This may require a more significant increase in the company’s charter fund in the future.