‘Leaner’ Vale reports better earnings, profits (Bloomberg/Sudbury Star – October 26, 2017)

http://www.thesudburystar.com/

Vale SA shares rose to the highest in two years after the world’s biggest iron-ore miner beat analysts’ earnings estimates on lower costs, stronger prices and record production.

Shares advanced for a sixth day, gaining 2.1 per cent at 10:18 a.m. in Sao Paulo, after the Rio de Janeiro-based company posted adjusted earnings before interest, taxes, depreciation and amortization of $3.02 billion for the third quarter, exceeding the $2.7 billion average of nine dollar-based [estimates compiled by Bloomberg.

Pummeled by the biggest commodities downturn in a generation, Vale is once again generating cash after cutting costs and selling assets as prices recover. Chief Executive Officer Murilo Ferreira is betting on new, high-grade deposits in northern Brazil to offset his transport cost disadvantage with Australian mines that are much closer to Chinese steel mills.

Reporting a decline in net debt to $26 billion and a cash position of $5.5 billion, Vale is on track to strengthen its balance sheet, Chief Financial Officer Luciano Siani said in a webcast presentation.

Vale has continued to expand as global supply cutbacks and a boost in economic stimulus in China helped spur a 45 per cent rebound in prices of the steelmaking ingredient this year. The Brazilian miner [reported record output of 92.1 million metric tons for the third quarter, including third-party purchases.

For the rest of this article: http://www.thesudburystar.com/2017/10/26/leaner-vale-reports-better-earnings-profits

Comments are closed.