Vale's Q2 profit misses estimates as demand slows, prices fall

Vale (VALE +1%) reported lower than expected Q2 earnings and revenues as prices for iron ore fell to four-year lows.

Vale produced 79.4M metric tons of iron ore in Q2, up 13% Y/Y and a record for the quarter; the company’s average sales price for iron ore was $81.03/ton, down 18% Y/Y and 46% less than the all-time high of $151.26 set in Q3 2011.

Nickel sale volumes rose 3.1% to 67K tons, while the average selling price rose 17%; shipments of copper fell 1.3% to 76K tons.

Took a "partial" impairment charge of $500M after Guinea's government revoked its license to the undeveloped Simandou iron ore mine in April, and wrote off another $274M to close its money-losing Integra coal mine in Australia.

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