Cinkarna Celje held the GSM yesterday in which the shareholders approved no dividend payment. Further, we note that the Association of Small Shareholders of Slovenia announced a lawsuit against the non-voting of the dividend resolution and against the decision to grant discharge to the management and the supervisory board.

We emphasize that initially Cinkarna proposed no dividend payment and got two dividend counterproposals, which amounted to EUR 3 and 3.2, implying a yield of 11.7% and 12.5%, respectively.

Cinkarna initially proposed no dividend payment as the Company is a beneficiary of aid with the goal to mitigate the effects of the energy crisis (ZPGOPEK). According to the aid, the company that claimed aid for the year 2023 must notify the authority no later than two months after the payment of profits, purchase of own shares, payments or bonuses, etc. In this case, the company must repay the funds received, which would be a decision of the authority. Consequently, the loss of the aid would mean greater material damage to Cinkarna (aid is currently projected at EUR 5 – 7m).

In the graph below, we are bringing you a historical overview of the company’s dividend per share and dividend yield.

Dividend per Share (EUR) and Dividend Yield (%) (2012 – 2023)

Source: LJSE, InterCapital Research