Pivnichny & Centralny Iron Ore To Pay Out Hefty Dividends

During shareholder meetings on April 12, dividend payouts were approved for both Pivnichny Iron Ore (SGOK) and Centralny Iron Ore (CGOK), both of which are controlled by SCM’s metals & mining holding Metinvest. Pivnichniy Iron Ore will pay out USD 100 mln in dividends (DPS of USD 0.23) of its net profits. Centralny Iron Ore will pay out USD 25 mln (DPS of USD 0.11) of its net profits. Dividends will be paid between April 12, 2007 and April 11, 2010. Eugene Cherviachenko: This long dividend payout period should not discourage minority shareholders of the companies as they will be able to receive their dividends well before 2010. SCM, more than a 99% shareholder in both companies, stuck to last year’s practice when it also decided to pay out 2005 dividends over a three-year period.