MMK changes dividend policy.

MMK rejected its the paper losses when calculating dividends.

Magnitogorsk Iron and Steel Company (MMK) of Victor Rashnikov has changed its conservative dividend policy: the company added the cash flow and RAS profit into the basis for calculating the payments and have already recommended to pay $ 150 million. The new approach should allow the company to reduce the gap between its competitors, whose shares are traded 30% more expensive. At the same time the industry does not expect the non-cash write-offs, because of which the amount of dividends usually decreases.

MMK of Victor Rashnikov (owns 87.27% of shares) moves to a new dividend policy. The company is the first among Russian metallurgists to pay dividends on the basis not only of IFRS net income, but also from the consolidated free cash flow (FCF) or RAS net profit, Sergei Sulimov, the Director of Finance and Economics of MMK, stated yesterday. Prior to that the company could sent at least 20% of the IFRS profit to the shareholders, last time the dividends were paid for the first nine months of 2012 and equaled $ 103 million.