Pivdenny Iron Ore's 2006 Net Income Drops 4.6 Times

A company press release reported that Pivdenny Iron Ore (PGZK: BUY) decreased its net income by 4.6 times in 2006 to about USD 1.1 mln. Pivdenny Iron Ore is set to hold an AGM on May 30, where (in addition to the 2006 financial results) they will also discuss canceling plans for a controversial share issue that would have tripled its charter fund. Eugene Cherviachenko: This net income fall is not surprising – we forecasted USD 1.8 mln in 2006. We believe reported net income is adversely affected by shady accounting schemes and low corporate governance standards of controlling shareholders Smart and Privat group and should be higher by more than USD 50 mln (see our report of November 2006).