Poltava GOK Consolidates 100% In Vostok Ruda.

Poltava GOK’s (PGOK: BUY) subsidiary, Ferrotrans, which owns 49.43% stake in Vostok Ruda purchased the remaining 50.56% stake in the company from the State Property Fund for USD 1.5 mln. Concorde Capital: Vostok Ruda owns the Nova mine and a beneficiation factory with a design capacity of 1 mln mt of iron ore concentrate annually. The company produces iron ore concentrate with feedstock supplied from third parties. In our opinion, full operating control over Vostok Ruda by Poltava GOK will be value adding for the latter increasing its iron ore beneficiation capacities. We reiterate our June projections that the Nova mine will provide about 11%-13% of PGOK?s total concentrate output in 2006, and lower the company’s raw material costs.