Metals and Mining
February 14, 2013
We expect Metinvest-owned Pivnichny GOK (SGOK) and Centralny GOK (CGOK) to continue their history of hefty dividend distributions, and thereby to direct close to 100% of their respective 2012 net profits into dividends at shareholder meetings this March/April. Our expectations would translate into dividends per share of UAH 1.70 for SGOK and UAH 0.82 for CGOK. We confirm our BUY recommendation for both stocks, with the latter now offering a dividend yield of 13% and the former offering an even higher 22%. This is equivalent to annualized return of 35% for SGOK and 20% for CGOK
