Pivdenny Iron Ore AGM Cancels Additional Share Issue

At their AGM yesterday, shareholders of Pivdenny Iron Ore (PGZK: BUY) voted to cancel an additional share issue of 4.3 mln ordinary shares that would have tripled the company’s charter fund. Eugene Cherviachenko: This decision should put an end to almost two years of PGZK trading on a diluted basis (subscription had been pending since early 2005). The stock’s price jumped 27% yesterday as the market reacted to the news, but this still leaves an appealing 82% upside to our undiluted target. We reiterate our BUY recommendation.