Vale S.A. (VALE) - NYSE
  • Yesterday, 12:25 PM
    • Vale (VALE -1.2%) is upgraded to Buy from Hold with a $10 price target at BB&T, which notes the company posted much better than expected Q1 results on higher iron ore price realizations and lower costs per ton.
    • The firm says iron ore price realizations should increase substantially in subsequent quarters, providing some much-needed breathing room for Vale given its substantial $27.7B net debt balance.
    • BB&T links its bullish call to its belief that the completion of its two major expansion projects in the coming months - Moatize II on the met coal side and S11D on the iron ore side - sets the stage for meaningful free cash flow improvement and balance sheet de-leveraging.
    • Now read Vale: Rally to be existent but short-lived
    | Yesterday, 12:25 PM | 4 Comments
  • Yesterday, 11:48 AM
    • Brazilian prosecutors are trying to prevent the restart of Vale (VALE -0.8%) and BHP Billiton’s (BHP -0.8%) stalled Samarco iron ore venture until the mine proves it is not continuing to pollute waterways following the tailings dam collapse last November, Bloomberg reports.
    • Saying the dam is still leaking, a Minas Gerais state environmental prosecutor filed a petition late last week for a court to block the planned restart until Samarco can submit proof that any leakage has been contained.
    • Vale and BHP are seeking a restart once regulators and the local community are in agreement, to help pay ~$1.1B in damages over the next three years, and Samarco's CEO said in March that he expected the mine to restart operations in Q4.
    • Now read Did BHP Billiton cut the dividend too soon?
    | Yesterday, 11:48 AM
  • Thu, Apr. 28, 2:37 PM
    • Vale (VALE +3.5%) believes the global iron ore market is in better shape than expected, and sees China's demand for iron ore picking up this year on the back of government stimulus measures.
    • CEO Murilo Ferreira said in today's earnings conference call that he had been pleasantly surprised by the health of the Chinese market during a visit to the country in March.
    • “I think you guys exaggerated the pessimism regarding the scenario we were facing in China,” Ferreira told analysts on the call.
    • Shares have been higher throughout the day after reporting Q1 earnings and revenues that came in ahead of expectations.
    • Also higher today: BHP +2.6%, RIO +3.5%, MT +4.8%.
    • Now read Goldman sees iron ore headed back to $35 as glut returns
    | Thu, Apr. 28, 2:37 PM | 18 Comments
  • Thu, Apr. 28, 5:04 AM
    • Vale (NYSE:VALE): Q1 EPS of $0.10 beats by $0.05.
    • Revenue of $5.72B (-8.3% Y/Y) beats by $370M.
    • Press Release
    | Thu, Apr. 28, 5:04 AM | 14 Comments
  • Wed, Apr. 27, 4:44 PM
    • Vale (NYSE:VALE) says it is considering a restart of its Rio Colorado potash project in Argentina after a long delay, although the project would have a lower production target than originally planned.
    • Vale suspended work on Rio Colorado in 2012 after spending $2.2B, as potash prices crashed and after the former government refused to offer tax concessions to ease soaring costs related to Argentina's inflation and exchange rate.
    • The provincial government says Vale is now looking to invest $1.5B to restart construction at Rio Colorado in coming months, but was cutting forecast capacity for the project to 1.3M metric tons/year from a previous goal of 4M annually.
    • Now read Vale: Can the furious run continue?
    | Wed, Apr. 27, 4:44 PM | 5 Comments
  • Wed, Apr. 27, 12:52 PM
    • Navios Maritime (NM -8.8%) is downgraded to Sell from Neutral with a $1 price target at Citigroup, which says shares have recovered “a bit too quickly” and are trading “too far from recent lows.”
    • "Recent improvement in dry bulk rates and prospects for further improvement do not warrant material optimism that the worst is necessarily behind us,” says Citi's Christian Wetherbee, adding that while rates may continue to improve, even at higher rates several companies that would continue to burn cash, and NM would be one of them.
    • Wetherbee also says the recent news that Vale (NYSE:VALE) would not be able to honor its contract for iron ore loading through Navios Logistics’ facility, which is under construction in Uruguay, poses "a material headwind to improving valuation."
    • Now read Activism halts Navios malfeasance
    | Wed, Apr. 27, 12:52 PM | 5 Comments
  • Wed, Apr. 27, 10:58 AM
    • The World Bank upwardly revises its iron ore price forecast for the five years through 2020 after the commodity rallied in Q1 on a surge in steel prices in China.
    • The bank now sees iron ore at $50/metric ton this year, $51.50 in 2017 and extending gains to $56.20 by 2020, vs. its January outlook for $42/metric ton this year, $44.10 in 2017 and $51 by 2020.
    • While raising its price forecasts, the World Bank still expects supplies will continue to increase, saying "Significant volumes of low-cost capacity are expected over the next 2-3 years, while high-cost capacity is being shut down. Further closure of high-cost capacity is required to balance the market.”
    • Related tickers: BHP -2.5%, RIO -1.2%, VALE +1.5%, CLF +6.9%.
    • Now read Goldman sees iron ore headed back to $35 as glut returns
    | Wed, Apr. 27, 10:58 AM | 18 Comments
  • Fri, Apr. 22, 2:59 PM
    • Goldman Sachs sees the oversupply in the iron ore market returning, sending prices back to $35/metric ton during Q4, which would be 50% below yesterday’s close of $70.46/ton, the highest level since January 2015.
    • Goldman analysts say that while the rally in Chinese rebar was leading the commodities rebound, the “tight steel market in China is a temporary distraction” for iron ore, and “the current rally is unsustainable.”
    • "When we look at the profitability of steel mills, we’ve gone from multiyear lows late last year to a multiyear high in the last couple of weeks. It’s a huge swing,” Goldman's Christian Lelong says. “The margins are so attractive that you can afford to pay higher and higher prices for your raw materials. That means iron ore is now well above" the cost curve."
    • In today's trade: BHP -0.1%, RIO -1.4%, VALE -2.1%.
    • Now read Iron ore powers past $70 as Chinese steel mills boost demand
    | Fri, Apr. 22, 2:59 PM | 44 Comments
  • Fri, Apr. 22, 11:35 AM
    • Mosaic (MOS +0.1%) and a group led by Vale (VALE -0.2%) and buyout firm Apollo Global Management are among suitors picked to make final bids for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) niobium and phosphate business in Brazil, Bloomberg reports.
    • Eurochem, South32 and X2 Resources, the P-E firm founded by former Xstrata chief Mick Davis also were considering making offers for the assets, which could fetch as much as $1.5B, according to the report.
    • Anglo put the Brazilian business up for sale last year as part of a wider plan to cut costs and debt amid a global rout in commodity prices.
    • Now read Mosaic to outlast lower prices
    | Fri, Apr. 22, 11:35 AM | 1 Comment
  • Thu, Apr. 21, 8:53 AM
    • Iron ore surges above $70/metric ton, the highest since January 2015, and has rebounded 84% since bottoming at $38.30 in December.
    • Unlike the previous three years, when a slowing Chinese economy hurt demand and prices and prompted a global glut, Chinese policy makers this year have talked up growth and added stimulus, presiding over a revival in the property market that has boosted the outlook for steel consumption.
    • “As we’ve seen activity seasonally take off, [China] needed to purchase more, fairly quickly, and that’s brought prices back up,” Mike Henry, BHP Billiton's head of operations and minerals in Australia, tells Bloomberg. “Once the mills are through the restocking cycle, we do expect that we’ll see prices come back down again.”
    • BHP +1.1%, RIO +0.3%, VALE +1.1% premarket.
    • Now read Rio vs. BHP: A very attractive pairs trade opportunity
    | Thu, Apr. 21, 8:53 AM | 16 Comments
  • Wed, Apr. 20, 7:25 PM
    | Wed, Apr. 20, 7:25 PM | 4 Comments
  • Mon, Apr. 18, 9:58 AM
    • While iron ore’s price declines may have been delayed, they’re still coming, and gains likely will be reversed in H2, Citigroup analysts say.
    • Iron ore rose 23% in Q1 as Chinese mills raised production to take advantage of a rebound in steel prices, and some supply was disrupted in Australia, but Citi says both supportive factors probably were reverse, hurting the outlook for the market.
    • Citi sees the global glut in iron ore will more than double to 38M tons in 2017 before dropping to 14M tons in 2018 and rebounding to 44M tons in 2019.
    • Iron ore is one of the outliers in Citi’s view on raw materials as a whole, believing most prices in the sector likely have bottomed.
    • Relevant tickers: BHP +2%, RIO +1%, VALE -0.2%.
    • Now read Iron ore prices set to slip in H2, Rio Tinto CEO says and Australia ups iron ore price forecast, sees low-cost miners expanding share
    | Mon, Apr. 18, 9:58 AM | 11 Comments
  • Wed, Apr. 13, 9:16 AM
    | Wed, Apr. 13, 9:16 AM
  • Tue, Apr. 12, 11:57 AM
    • Vale (NYSE:VALE) is teaming up with U.S. P-E firm Apollo Global Management (NYSE:APO) to bid for Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) niobium and phosphates business in Brazil, Reuters reports.
    • A sale of the assets, used for making fertilizers, could fetch ~$1B for Anglo, according to the report.
    • Anglo has said it wants to raise as much as $4B from divestitures to help cut net debt to under $10B by year-end as it deals with the commodity price slump.
    • Now read De Beers reports higher diamond demand
    | Tue, Apr. 12, 11:57 AM
  • Fri, Apr. 8, 12:44 PM
    | Fri, Apr. 8, 12:44 PM | 23 Comments
  • Fri, Apr. 8, 11:48 AM
    • Australia is bullish about iron ore prices for the next five years, raising its iron ore forecast to an average $45/metric ton in 2016 from a December outlook for $41.30.
    • As high-cost miners close, Australian producers will boost shipments, and prices will rise to $56/metric ton next year, $61.40 in 2018 and $64.70 in 2021, Australia’s Department of Industry, Innovation & Science says in its quarterly outlook.
    • Iron ore's surprise YTD price rebound has swayed few skeptics, with Goldman Sachs and others reiterating bearish forecasts, but Australia projects that its giant low-cost producers BHP Billiton (BHP +4%) and Rio Tinto (RIO +4%), together with Brazil’s Vale (VALE +7.3%), will claim a greater share of global trade and prices will climb.
    • Now read Iron ore exports from Australia's Port Hedland expand to record
    | Fri, Apr. 8, 11:48 AM | 3 Comments
Company Description
Vale SA engages in the production and export of iron ore, pellets, manganese, and iron alloys, which are raw materials needed for steelmaking. It operates through the following segments: Bulk Materials, Base Metals, Fertilizers and Others. The Bulk Materials segment includes the extraction of... More
Industry: Steel & Iron
Country: Brazil