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Vale S.A. (VALE)

  • Sep. 9, 2014, 9:25 AM
    • Following the report of its $4B share buyback, ABB (NYSE:ABB) has announced a new $103M contract from Vale (NYSE:VALE) to install electrical and automation systems at an iron ore mine in northern Brazil.
    • The order follows a previous $140M contract won by ABB to complete the first phase of Vale's S11D project, supplying and installing electrical equipment for the process plant that separates ore from spoil material.
    • ABB +1.9% premarket
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  • Sep. 2, 2014, 12:55 PM
    • Vale (NYSE:VALE) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY) have broken off talks over combining their nickel assets in Canada in a deal that could have produced more than $1B in annual cost savings, Reuters reports.
    • Discussions over linking the companies' neighboring nickel mining and processing facilities in Canada's Sudbury basin are said to have ended partly due to disagreement over how to share costs and savings and to worries about government and labor union reaction to potential job cuts and shutdowns.
    • At the same time, a recovery in nickel prices has made cost rationalization less urgent, according to the report.
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  • Aug. 29, 2014, 10:55 AM
    • Iron ore prices are falling for a 10th straight day and have dropped 8.4% this month to five-year lows on concerns that global supplies are topping demand just as China’s recovery shows signs of faltering.
    • Iron ore demand seems to be cooling in China, Commerzbank analysts say, adding that the usual seasonal uptick in Chinese demand likely will fail to materialize this year.
    • Supply in the seaborne market also remains plentiful, where output is expected to exceed demand by 72M tons in 2014 and 175M tons in 2015, and prices will average $106/ton this year and $80 next year, Goldman Sachs estimates.
    • Global miners are mostly lower following big losses yesterday: SID -2.6%, VALE -1.6%, CLF -1%, RIO -0.2%, BHP +0.2%.
  • Aug. 28, 2014, 2:25 PM
    • Concerns about falling iron ore prices are sending global miners and steel companies sharply lower: CLF -5.8%, SID -5.7%, VALE -4.4%, RIO -3.9%, X -3.9%, BHP -2.5%, ANR -2.5%, MT -2.4%.
    • There’s too much supply of iron ore and prices will continue to fall further, deepening a slump that has hurt profits at the biggest miners, according to the head of Austria’s largest steelmaker.
    • Iron ore prices fell to their lowest level in five years today to $87.30/ton, the lowest since 2009; Voestalpine CEO Wolfgang Eder sees prices at $90-$100/ton for the rest of 2014 before settling at $80-$90 in the medium term.
  • Aug. 26, 2014, 10:21 AM
    • Zambia's government says it plans to relax tax rules on copper exports, good news for the country's copper miners that have been seeking more than $600M in unpaid tax refunds
    • The government had said earlier it would pay the refunds only if the companies produced import certificates, but mining executives argued that producing the import certificates is next to impossible because companies sometimes sell their minerals to middlemen.
    • Companies such as Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Vale (NYSE:VALE), First Quantum Minerals (OTCPK:FQVLF) and Vedanta Resources (OTCPK:VDNRF) invested ~$6B in Zambia during the global commodities boom, which peaked in 2011.
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  • Aug. 18, 2014, 3:42 PM
    • Bernstein analyst Paul Gait lowers his FY 2014 earnings outlook for Vale (VALE +0.7%) to $2.15/share, down from his prior estimate of $2.55, after Q2 earnings missed expectations.
    • Although revenue should grow in H2 on higher production and possible stronger iron ore prices, costs should increase too, Bernstein says while maintaining its thesis that supports Vale’s high-quality assets and its growing presence in base metals.
    • The firm expresses some concern that Vale's ambitions to regain the market share it has lost in the iron ore market over the past decade "could translate into a relaxation in the company’s capital discipline."
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  • Aug. 13, 2014, 12:43 PM
    • Vale (VALE -1.7%) is sharply lower after a key batch of Chinese economic data for July showed some slowing growth; Vale is more dependent on iron ore prices staying high than Rio Tinto or (RIO -1.6%) BHP Billiton (BHP -0.6%).
    • Cowen reiterates its Market Perform rating and $16 price target on Vale, saying that while there’s much focus on the cost for Vale to expand its mines, investors may be ignoring the value of some new projects.
    • Over the longer-term, investor sentiment could begin to shift as continued strength in iron ore results from higher volumes and improved product mix as well as improving non-ferrous, Cowen says.
  • Aug. 13, 2014, 11:59 AM
    • A private jet carrying Eduardo Campos has crashed, with local TV reporting the presidential candidate was killed.
    • Up earlier in the session, the Bovespa is now lower by 1.3%.
    • Campos was running third in the polls with less than 10%, but his exit from the race is likely to boost current President Rousseff's chances of re-election. Brazilian stocks have been among the strongest globally this year amid optimism Rousseff would fall to her more business-friendly challenger Aecio Neves.
    • EWZ -1.1%. VALE -1.8%, PBR -1.7%
  • Aug. 13, 2014, 8:59 AM
    • Iron ore prices sink to their lowest levels in nearly eight weeks as a credit gauge in China plunged, adding to worries about slowing demand.
    • China’s broadest measure of new credit slumped in July to the lowest level since the global financial crisis; prices already had tumbled 31% YTD as mining companies increased output, pushing the market into a glut.
    • BHP -0.8%, RIO -3.5%, VALE -0.2% premarket.
  • Jul. 31, 2014, 9:59 AM
    • 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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  • Jul. 31, 2014, 9:28 AM
    • Vale (NYSE:VALE): Q2 EPS of $0.28 misses by $0.17.
    • Revenue of $9.9B (-7.1% Y/Y) misses by $730M.
    • Shares -0.6% PM.
    • Press Release
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  • Jul. 29, 2014, 11:19 AM
    • Brazil’s equity market has soared since mid-March, when the buzz first began that Pres. Rousseff might lose in the October elections; the iShares MSCI Brazil Capped ETF (NYSEARCA:EWZ) has jumped ~30% since then and has gained 16% YTD.
    • Part of the rally is propelled by optimism that the state-owned sector, including Petrobras (NYSE:PBR) and Electrobras (NYSE:EBR) will operate better with a new, more pro-business government; iron ore producer Vale (NYSE:VALE), whose fate is tied to China, is the only high-profile underperformer, not even breaking even this year.
    • But strategist Geoff Dennis is skeptical of the Brazilian rally, and thinks it's time to sell; the new government is not likely to have a big mandate, the election is too close to call at present, and Brazil is no longer cheap, trading at 11.2x forward earnings a 33% premium to its recent average of 8.5x.
  • Jul. 24, 2014, 10:56 AM
    • Vale (VALE +0.9%) says its Q2 iron ore output surged 13% Y/Y to 79.4M metric tons, the most ever for the April-to-June period, as expansion projects at its Carajas complex in the Amazon began to bear fruit.
    • Scant rainfall, the result of a drought that has hurt other sectors of Brazil's economy, helped Vale maximize its production, but the ramp-up at the new plant at Carajas - where Vale is carrying out a ~$20B expansion plan to supply the Chinese steel industry - was the main reason for the increase.
    • Q2 production of iron ore pellets rose 2.4% Y/Y to 9.95M tons, but nickel output fell 5.2% to 61.7K tons and copper production dropped 11% to 81K tons.
  • Jul. 7, 2014, 5:44 PM
    • Vale (VALE) is an attractive mining investment as the cheapest of the three largest global iron ore producers, which include Rio Tinto (RIO) and BHP Billiton (BHP), Bernstein said in a report out today.
    • Three reasons to like Vale, according to the Bernstein analysts: Shares are cheap at 4x 2014 EBITDA vs. 5.7 for RIO and 6.7 for BHP; pellets likely will gain more traction in the pollution conscious world, and 15% of Vale’s iron ore output is sold as pellets; and Vale's Zambia mine is expected to reach full capacity by 2015, giving the company a foothold in one of the world’s best new frontiers for copper production.
    • The Bernstein bunch says they prefer Rio as the way to play iron ore, but Vale has leverage to nickel price appreciation.
  • Jul. 1, 2014, 7:58 AM
    • Vale (VALE) threatens to quit a leading industry forum due to rival Rio Tinto's (RIO) lawsuit against it over the Simandou iron ore concession in Guinea, one of the world's largest undeveloped mining assets.
    • The suit alleges that Vale and Israeli billionaire Beny Steinmetz colluded to rob Rio of half of the Simandou iron ore concession; both Vale and Steinmetz's mining arm BSG Resources have rejected the lawsuit's claims.
    • The International Council on Mining and Metals is made up of 22 of the world's leading mining companies, including Vale, Rio, BHP Billiton and Glencore.
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  • Jun. 27, 2014, 2:39 PM
    • Glencore (GLCNF, GLNCY) has told the government of Guinea that it is interested in rights to develop the northern concession of the Simandou project, one of the world's most sought-after iron ore deposits, WSJ reports.
    • BHP Billiton (BHP) and Arcelor Mittal (MT) also reportedly have notified Guinea that they could be interested in taking part in a tender.
    • Glencore has little exposure to iron ore, but has said it isn't seeking out the kind of long-term investment required by Simandou, which would require billions of dollars in investment before making a profit.
    • Earlier this year, the government revoked the license previously held by Vale (VALE) and BSG Resources, alleging BSG obtained the rights through corruption; Simandou's southern concession is being developed by a consortium led by Rio Tinto (RIO).
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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