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Vale (VALE.US) Q3 iron ore production rose 5.5% YoY, hitting a near six-year high

AInvestWednesday, Oct 16, 2024 5:10 am ET
1min read

Brazilian mining company Vale (VALE.US) reported on Tuesday that its third-quarter iron ore production rose 5.5% year-on-year to a near six-year high.

The world's largest iron ore supplier said in a securities filing that its production in the three months ended September 30 was 91 million tons.

The company said its iron ore production reached its highest level in three months since the fourth quarter of 2018, thanks to improved performances at its S11D, Itabira and Brucutu mining projects.

Last month, the company raised its 2024 iron ore production forecast to 323 million to 330 million tons, up from its previous forecast of 320 million to 330 million tons, after its iron ore production in the first half of the year was stronger than expected.

Its iron ore sales in the third quarter rose 1.6% year-on-year to 81.8 million tons, mainly due to increased shipments of pellets.

Analysts at RBC Capital Markets said Vale's production data across its portfolio were above expectations, and the miner is on track to meet its full-year guidance.

Despite lagging production, the company said it expects inventory in its iron ore segment to decrease this quarter, which RBC analysts said should mean an upgrade in expectations for core earnings in 2024.

Vale's average realized price for iron ore fines in the quarter was about US$91 per ton, down nearly 14% year-on-year and 7.7% from the second quarter.

Vale noted that its realized price in the quarter was down nearly US$5 per ton from market prices, due to higher prices and portfolio adjustments.

Base Metals

Vale said its copper production in the third quarter rose about 5% year-on-year to 85.9 thousand tons, and added that all its copper projects had improved.

The company's nickel production also rose nearly 12% year-on-year to 471 thousand tons, thanks to strong performances at its Sudbury project and growth at its underground mine in Canada's Voisey's Bay.

Vale shipped 75.2 thousand tons of copper in the quarter, up about 2% year-on-year, and 40.7 thousand tons of nickel, up nearly 4% from a year ago.

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