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Vale S.A. (VALE)

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  • Nov. 13, 2012, 5:55 PM
    Vale (VALE) has spent ~$2B on a fleet of mega-ships to carry its iron ore from Brazil to China, but China won't let them in. It's a blow to Vale's global distribution strategy and illustrates the blurred line between China's state-owned enterprises and the country's regulators.
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  • Oct. 25, 2012, 12:12 PM
    Vale (VALE +4%) rallies on better than expected Q3 EBITDA of $3.7B, helped by stronger iron ore sales volume and higher realized iron ore prices. But analysts are split on the stock: Credit Suisse thinks the current premium is unwarranted in the face of an uncertain macro recovery. Citi is more bullish, calling the Q3 beat the best since 2008, with both prices and costs better than expected.
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  • Oct. 25, 2012, 9:11 AM
    Vale (VALE) +4.3% premarket after Q3 earnings plunged 66% but operating revenues topped analysts’ estimates, signaling that efforts to cut costs and delay projects are paying off. The Brazilian miner is re-evaluating non-core assets and the market should expect the sale of some of them, CFO Luciano Siani Pires says.
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  • Oct. 24, 2012, 6:00 PM
    Vale (VALE) reports Q3 net profit of $1.67B, down 66% Y/Y from $4.94B as the global economic slowdown caused iron ore prices to tumble. Operating revenue fell 35% to $10.96B. The profit result was lower than expectations from analysts, who had forecast $1.8B; operating revenues topped estimates of $10.4B.
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  • Oct. 22, 2012, 5:27 PM
    Vale (VALE) says it will shutter its Frood nickel mine in Canada by the end of 2012 as the sluggish global economy saps demand and undercuts prices for the metal. The world's no. 2 nickel producer plans to make up Frood's annual output of ~3,200 tons of nickel and 2,900 tons of copper by increasing output at other mines in Canada.
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  • Oct. 17, 2012, 7:39 PM
    Brazilian mining company Vale SA (VALE) says Q3 iron ore production rose 4.2% Q/Q as operations continue to recover from heavy rains earlier this year. the company produced 83.9M tons during the quarter, up from 80.5M tons in Q2. Y/Y output however, was down 4.5% as environmental licensing issues undercut expansion of Vale's Carajas mining complex.
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  • Oct. 15, 2012, 3:49 AM
    The Chinese steel sector seems to be recovering, with prices for 63.5% iron ore fines to Qingdao hitting $117 a metric ton, up 29% from a multi-year low on Sept. 7. In mid-September, 29 vessels were chartered to transport iron ore to China, the largest weekly volume since late March. The trends come after the government OKs major infrastructure projects. Stocks that could benefit include BHP, [RIO, VALE, CLF. (previous)
    | 17 Comments
  • Oct. 12, 2012, 12:10 PM
    Vale's (VALE) troubles aren't just about weak iron ore demand, according to a Reuters analysis. Brazilian government interference in efforts to get Vale to build steel mills and invest in fertilizer production, while a new mining code could triple royalties, pose serious threats. "What the government is doing to Vale won't kill the proverbial golden goose, but it could make the goose sick," an analyst says.
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  • Oct. 11, 2012, 3:06 PM
    Pessimism grows for Brazilian stocks with brokers joking of getting shown the door at buy-side houses when trying to hawk the shares. The concerns of shareholders at Petrobas (PBR) and VALE seem to take a back seat to those of the government, and investors wonder which sector - perhaps the banks - will be the next target of intervention. EWZ -5.5% YTD.
    | 1 Comment
  • Oct. 10, 2012, 9:02 AM
    Five suitors are interested in acquiring one or both of ThyssenKrupp's steel mills in Brazil and the U.S. following the first round of bidding for the assets, Die Welt reports. ArcelorMittal (MT) is interested in the steel finishing plant in Alabama, while other potential buyers include Brazil's Vale (VALE), South Korea's Posco (PKX) and Japan's JFE Steel. (previous)
    | 1 Comment
  • Oct. 8, 2012, 1:55 PM
    Also giving a lift to iron ore prices (and the stocks of the companies that dig it up) is the Indian Supreme Court banning all mining activity in the state of Goa. The case stems from questions over whether the proper royalty has been paid on mined ore. VALE +2.2%.
    | 1 Comment
  • Oct. 4, 2012, 2:45 PM
    Vale's (VALE +1.4%) announced 20% cut in pellet production may hurt 2012 EBITDA by $300M, or ~1.5% of expected 2012 EBITDA, according to a Citi analyst. "The wider implication is that pellet premiums have collapsed and Vale is attempting to maintain what premium is left by holding back capacity," the firm says.
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  • Oct. 4, 2012, 10:31 AM
    Vale (VALE -0.5%) will temporarily reduce production of iron pellets used in steel-making blast furnaces as the world's largest producer and exporter of iron ore and blast furnace pellets adjusts output to meet demand. Vale says it will reduce output at its Sao Luis and Tubarao I and II plants which produced 4.9M metric tons of iron pellets in H1.
    | 1 Comment
  • Oct. 2, 2012, 3:42 PM
    In addition to upgrading Pan American Silver (PAAS) and downgrading Goldcorp (GG), Deutsche Bank adjusts price targets on other metals stocks: ABX, CDE, CLF, FCX, KGC, VALE, AA, HL, NEM, SSRI, SCCO, TCK. The sector is "hitting an inflection point where routine operating cost and capital spending overruns are no longer being tolerated by boards or investors."
    | 5 Comments
  • Sep. 27, 2012, 3:48 PM
    Speaking of the cure for low prices, it's estimated 40% of China's iron ore mines have suspended operations as the mineral's low price has them losing money. Good enough, but the pain is apparently not yet great enough for VALE which says it will continue forging ahead to increase ore output. Earlier: Baosteel shutters a steel plant.
    | 4 Comments
  • Sep. 26, 2012, 11:50 PM
    Baoshan Iron & Steel - China's largest steelmaker - suspends production at one of its plants, citing a "downturn in demand." "The bigger issue is ... all the mills are under pressure," says analyst Kuni Chen, warning of a vicious cycle of more production declines leading to continued slides in raw materials (iron ore) prices.
    | 1 Comment
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Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil