Vale S.A. (VALE) - NYSE
  • Fri, Mar. 4, 7:21 PM
    • News that Brazil’s federal police detained former Pres. Lula da Silva for questioning in connection with the Petrobras (NYSE:PBR) corruption scandal sparked a rally in Brazilian assets today, as investors hoped the deepening political crisis would result in Pres. Rousseff's ouster and a more market-friendly government.
    • Brazil's real rose more than 3% vs. the U.S. dollar before settling to a 1% gain, and the Bovespa stock index jumped 4%.
    • Federal prosecutors who ordered today's raids said there was evidence that Lula personally received funds from the graft scheme through work on a luxury beachside penthouse and a country home; beyond the allegations of personal perks and payoffs, prosecutors today described the former president as leading a years-long scheme to divert money from Petrobras to fund election campaigns that would keep his Workers’ Party and its allies perpetually in power.
    • A presidential aide called the accusations against Lula a "turning point" in the  crisis, warning that if authorities do not quickly present concrete proof against Lula, "there is going to be violence in the streets. It could be a real war."
    • In today's U.S. trading of Brazil-based stocks: PBR +11.4%, PBR.A +12.9%, VALE +7.1%, EBR +4%, ELP +6.7%, CPL +3%, CIG +0.5%, BSBR +1.7%, BBD +11.6%, ITUB +7.4%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Fri, Mar. 4, 7:21 PM | 8 Comments
  • Fri, Mar. 4, 12:58 PM
    • Vale (VALE +18.3%) and U.S. Steel (X +15.3%) are pacing the biggest weekly rally since 2008 for stocks of mining and metals companies, Bloomberg says as its index of 47 metals, mining and steel producers has racked up a 20% gain this week.
    • Vale has rallied nearly 80% this week, as iron ore prices extended a rebound and Brazilian stocks jumped as the latest developments in the federal investigation of vast corruption threaten to topple the Rousseff government.
    • Copper suppliers Freeport McMoRan (FCX +12.4%), Teck Resources (TCK +10.3%) and First Quantum Minerals (OTCPK:FQVLF +11.4%) also are among the top gainers, as copper prices climb to their highest in four months on speculation that China will announce more steps to boost growth.
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) also heads for its seventh straight gain, the stock's longest winning run in two years.
    | Fri, Mar. 4, 12:58 PM | 23 Comments
  • Fri, Mar. 4, 7:20 AM
    • Speculation is flying that President Rousseff will resign as early as this weekend after Brazilian police detained former President Luiz Inacio Lula da Silva at his home.
    • This new phase of the Petrobas (NYSE:PBR) corruption probe is being dubbed "Aletheia" - meaning "real search" - by the police.
    • EWZ +6.4%, PBR +10.2%, VALE +5.9% premarket
    • ETFs: EWZ, BRF, BRZU, EWZS, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Fri, Mar. 4, 7:20 AM | 29 Comments
  • Wed, Mar. 2, 4:53 PM
    • Samarco and its two shareholders, Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) confirm an agreement with Brazil's attorney general of Brazil, the states of Espirito Santo and Minas Gerais, and other authorities for the restoration of the environment and communities affected by the November dam failure.
    • Samarco will pay 4.4B reais (~$1.1B) through 2018 - 2B reais ($500M) in 2016, and 1.2B reais ($300M) in each of 2017 and 2018 - into a fund to cover the cleanup of the spill, plus between 800M-1.6B reais/year during 2019-21.
    • In the event Samarco is unable to pay its obligations, Vale and BHP would be responsible for covering the costs.
    • The accord does not cover private civil suits, other public civil suits or criminal investigations.
    • Vale and BHP closed regular trading with respective gains of +12.6% and +8.1%, as the parameters of the deal were reported late yesterday.
    | Wed, Mar. 2, 4:53 PM | 6 Comments
  • Tue, Mar. 1, 6:32 PM
    • The Samarco joint venture between Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) will pay at least 20B reais ($5B) over 15 years as part of a deal with the Brazilian government to settle a lawsuit for damages caused by November's deadly dam spill, Reuters reports.
    • Samarco will pay 4.4B reais ($1.09B) in the first three years following the agreement that will be signed tomorrow, according to the report.
    • Meanwhile, Samarco reportedly has requested a license to store mining tailings in the Minas Gerais state, the group's first attempt to resume operations there.
    | Tue, Mar. 1, 6:32 PM | 5 Comments
  • Mon, Feb. 29, 8:12 AM
    • Vale's (NYSE:VALE) credit rating is cut three levels to junk status by Moody’s, which believes prices for iron ore and base metals will not likely experience any meaningful recovery before 2017.
    • Moody’s cuts Vale to Ba3 from Baa3, while withdrawing its issuer rating and assigning a Ba3 corporate family rating; the outlook is negative.
    • "Supply imbalances, particularly in iron ore, the major earnings and cash flow driver for Vale, will maintain pressure on prices for several years," the ratings agency writes.
    | Mon, Feb. 29, 8:12 AM | 44 Comments
  • Fri, Feb. 26, 4:42 PM
    • A compensation package for the Samarco dam burst in Brazil is scheduled to be signed Monday, which would end weeks of negotiations over damages, Bloomberg reports.
    • As part of the agreement, the joint venture owned by Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) reportedly would cover costs of 39 social and environmental programs, rather than paying the fixed 20B reais ($4.9B) that originally was sought; Samarco committed to providing 4.4B reais ($1.1B) through 2018, according to two Brazilian newspapers.
    • The AGU office tells Bloomberg that talks were being held on Friday but no date had been set for release of a final agreement.
    | Fri, Feb. 26, 4:42 PM | 14 Comments
  • Thu, Feb. 25, 2:41 PM
    • Vale (VALE -4.7%) wants to reduce its net debt to $15B from more than $25B within 18 months, but given the uncertain outlook for prices of iron ore and other raw materials, the company is “actively exploring more aggressive actions for this deleveraging, including the sale of core assets,” CEO Murilo Ferreira says.
    • Vale has long maintained that it would hold on to its world-class iron ore and nickel operations; Rio Tinto (RIO -1.8%) and BHP Billiton (BHP -0.8%), its biggest global rivals in iron ore, have not opened the door to selling core assets.
    • So the CEO's comments mark a sharp change from Vale's prior strategy of offering assets only in peripheral businesses such as energy and logistics; Vale had assured investors that its cash flow would exceed capital spending after the company finished work on major expansion projects such as its S11D mine in the Brazilian Amazon, enabling it to pay down debt.
    • The company is not considering a capital increase “at this moment,” Ferreira also said.
    • Earlier: Vale reports worst-ever quarterly net loss
    | Thu, Feb. 25, 2:41 PM | 17 Comments
  • Thu, Feb. 25, 8:18 AM
    • Vale (NYSE:VALE) -3.7% premarket after reporting its worst-ever quarterly net loss as a private company, weighed by weak commodity prices and big writedowns (Q4 results).
    • Vale says its Q4 net loss widened to $8.57B from a loss of $1.85B in the year-ago quarter, on net operating revenue of $5.9B, down from $9B a year ago.
    • Vale's full-year loss totaled $12.1B, the biggest suffered by a listed Brazilian company since at least 1986 and reversing a net profit of $657M in 2014; full-year revenue totaled $25.6B, down from $37.5B the year before.
    • The annual loss was due mostly to non-cash factors such as $9.37B in impairments, almost entirely on coal and nickel assets, and currency moves, including a 47% depreciation of the Brazilian real against the dollar in 2015, which "do not affect the day-to-day cash generation of the company."
    • Separately, Vale says Chairman Dan Conrado will be replaced by Gueitiro Matsuo Genso, effective immediately.
    | Thu, Feb. 25, 8:18 AM | 14 Comments
  • Thu, Feb. 25, 4:47 AM
    • Vale (NYSE:VALE): Q4 EPS of -$0.20 misses by $0.19.
    • Revenue of $5.9B (-35.0% Y/Y) misses by $340M.
    • Press Release
    | Thu, Feb. 25, 4:47 AM | 22 Comments
  • Wed, Feb. 24, 2:32 PM
    • Vale (VALE -6.1%) is among Brazilian stocks trading sharply lower after Moody’s becomes the third ratings agency to downgrade the country’s credit rating since September.
    • Moody’s cuts Brazil's sovereign credit rating to Ba2 from Baa3, two notches into junk territory, with a negative outlook, citing uncertainty over the effort to impeach Pres. Rousseff and the corruption scandal that has paralyzed the country’s leadership and slowed efforts to shore up its crumbling finances.
    • "Every day it’s something, and you don’t know what the next thing will be. There’s very little visibility on what the future will be," says Moody's lead analyst for Brazil.
    • Vale, which reports earnings tomorrow, also is hurt by news that Brazilian police are alleging homicide at Vale’s Samarco joint venture with BHP Billiton.
    • Also: PBR -1.9%, PBR.A, -1.2%, EBR -5.3%, ELP -3.1%, CIG -4.8%, CPL -1.4%, SBS -4.5%, BSBR -0.5%, BBD -0.9%, ITUB -0.9%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Wed, Feb. 24, 2:32 PM | 9 Comments
  • Wed, Feb. 24, 9:21 AM
    | Wed, Feb. 24, 9:21 AM | 1 Comment
  • Wed, Feb. 24, 3:06 AM
    • Brazilian police have charged the chief executive of Samarco - a joint venture between Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) - and six others with homicide following the collapse of the miner's dam last November that killed at least 17 people.
    • Samarco said it considered the charges against its executives and the decision to detain the men to be "misguided," adding that it would wait for a decision from the courts before taking further measures.
    • BHP -5.2% premarket
    | Wed, Feb. 24, 3:06 AM | 15 Comments
  • Tue, Feb. 23, 3:25 PM
    • Vale (VALE -6.9%) says workers staged protests today at some of its Brazilian iron ore mines in the state of Minas Gerais seeking a profit-sharing bonus that was never paid after falling prices eroded earnings.
    • Vale does not say how output may have been affected by the protests.
    • Separately, Vale says a judge in Espirito Santo demanded its Samarco joint venture with BHP Billiton pay 2B reais to cover damage caused in the state by the November tailings dam burst.
    | Tue, Feb. 23, 3:25 PM | 4 Comments
  • Mon, Feb. 22, 12:57 PM
    • Iron ore’s surprise rebound toward $50/metric ton may reverse course, as a further increase in global supplies and the closure of some steel producers in China will boost a global glut, the head of Australia’s largest steelmaker tells Bloomberg.
    • Almost all of China’s mills are losing money, which means that further production cuts are possible, so prices are more likely to drop than rise, says BlueScope Steel CEO Paul O’Malley.
    • While steel exports from China will remain significant, cargoes may start to fall over the next 12 months, as Chinese steelmakers are losing between 30 yuan ($4.60) and 100 yuan on each ton, O'Malley says.
    • Also, prices from September 2016 through December 2017 remain below $40/metric ton, suggesting that many in the market do not see the current rally as sustainable.
    • Prolonged price gains in iron ore would be a boon to top miners Vale (VALE +12.2%), Rio Tinto (RIO +5.5%) and BHP Billiton (BHP +5.7%), whose earnings have been hit by prices that have tumbled more than 60% in the past two years.
    | Mon, Feb. 22, 12:57 PM | 26 Comments
  • Mon, Feb. 22, 9:19 AM
    | Mon, Feb. 22, 9:19 AM | 6 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