CTK informed that Czech environment inspection fined PMCR with the amount CZK 2.5m (CZK 0.91/share) due to using more underground water than granted by Kutna Hora’s city hall. PMCR has already paid the fine.
Our view:
As the fine is only marginal and doesn’t represent any significant decrease in 2006E EPS which stands around CZK 800, we see this news as neutral.