OREANDA-NEWS. August 16, 2011. NLMK’s board today (16 Aug) proposed paying RUB1.40/share in dividends for 1H11. An EGM will be held on 29 Sep (by absentee voting) to approve, among other things, the dividend payout. Shareholders that were on the register as of COB 15 Aug will be able to vote at the EGM. If approved, the dividend will be paid by 28 Nov 2011.

Bottom line

Another show of strength from NLMK, which remains the least levered of the Russian steelmakers, boasting one of the highest margins among global steels. Assuming the company continues to demonstrate solid financial performance during the remainder of the year, we believe that a total dividend payout of at least RUB3.00/share could be expected for 2011, resulting in a yield of over 3.5% at the current share price.