The board of directors of Russia’s largest zinc producer, Chelyabinsk Zinc Plant, has recommended against paying a 2011 dividend, ahead of the scheduled June 27 annual shareholder meeting, the company said in a statement on Wednesday.
The plant is going to use last year’s profit to finance investment projects, after rejecting the payment of dividends for 2009 and 2010.
Chelyabinsk Zinc Plant posted a 27 percent year-on-year increase in its 2011 IFRS net profit to 1.038 billion rubles ($34.2 million). Zinc and zinc alloys production at the plant amounted to 160,001 tons in 2011, a 4.3 percent increase year-on-year. In 2012 the company plans to produce 160,000 tons of its products.
The company’s common shares are listed on the MICEX-RTS stock exchange in Russia, as well as on the London Stock Exchange as Global Depositary Receipts.