Q2 earnings of Vale (VALE.US) more than doubled YoY, revenue grew 3% MoM

Global miner Vale (Vale.US) reported its second-quarter 2024 results. The data showed that the company's net revenue was $9.920 billion in Q2, up 3% YoY from $9.673 billion in the same period last year, and in line with analysts' expectations of $9.94 billion; net income attributable to shareholders was $2.769 billion, up 210% YoY from $917 million, far above analysts' expectation of $1.7 billion.

Adjusted EBITDA was $3.993 billion, flat YoY. Net debt was $8.590 billion, down 4% YoY. Capital expenditure was $1.328 billion, up 10% YoY.

Eduardo Bartolomeo, CEO, commented in a statement: "Our strong operational performance continues to trend quarterly. In the iron ore solutions, we delivered a record second-quarter production since 2018, mainly driven by the continued performance of S11D. As part of our strategic goal to become the preferred supplier of low-carbon steel, we are advancing the key growth areas projects of Vargem Grande and Capanema, which will together add 30M tons of capacity in the next 12 months."

Bartolomeo added: "In the energy transition metals, we have restored the operations of Sossego, On a Puma and Salobo mines. We recently also announced Shaun Usmar as our new CEO, leading our copper and nickel business."

In the second quarter, iron ore shipments increased 7% YoY and 25% MoM, mainly driven by record second-quarter production since 2018 and inventory sales. Cash cost C1 (excluding third-party purchases) was $24.9/t, up 6% MoM, mainly due to seasonal inventory turnover and concentrated maintenance activities.

Under long-term freight contracts, iron ore fines freight cost was $19/t, down $0.3/t MoM, at $19/t, 6.8 lower than the average freight cost of Brazil-China C3 route.

Copper and nickel total cost were $3,651/t and $15,000/t respectively, both on track to meet their respective annual cost guidance.

After the earnings release, Vale shares were up about 1% at the time of writing.