Latest news with #ValeSA
Mint
28-04-2025
- Business
- Mint
Vale Sees Iron Ore Prices Above $85 a Ton Despite Tariff Turmoil
(Bloomberg) -- Vale SA, one of the world's top iron ore producers, dismissed analysts' predictions that prices of the steelmaking material will tumble below $85 a ton amid a tariff-fueled economic slowdown. 'Below $90 a ton there will be a very significant percentage of global production that will be under water, that will lose money, and probably stop producing,' Chief Financial Officer Marcelo Bacci said in a press conference Friday after the company reported first-quarter earnings that missed estimates. 'This generates a price improvement effect.' Analysts from Goldman Sachs Group Inc. and data provider Mysteel Global have said prices could slip below $85 a ton by the end of the year as tariff-related uncertainties put further pressure on prices. Vale still sees solid demand for its flagship product from China, a market that accounts for 60% of its sales. Bacci said he's confident that iron ore prices will stay around $100 per ton with stable supply and consumption. Rio de Janeiro-based Vale has been adopting a strategy of maximizing value by offering a flexible portfolio to suit its clients' demands. With steel mills navigating a challenging moment, customers aren't always paying a premium to buy higher-quality ore. The Brazilian company said it plans to launch a mid-grade product using iron ore out of Carajas, a region of Brazil where the company has its most prized operations. 'This is much more appropriate to what the market is looking for,' Rogerio Nogueira, Vale's commercial executive vice president, told investors on the call Friday. The company expects to present the new product to the market in the next 12 months.
Bloomberg
15-04-2025
- Business
- Bloomberg
Vale's Iron Ore Output Falls Short Due to Heavy Rainfall
Vale SA, one of the world's top iron ore suppliers, churned out less than expected of the commodity, reflecting seasonal heavy rainfall. The Rio de Janeiro-based miner produced 67.7 million metric tons in the first quarter, it said in a statement Tuesday. That's less than the 72.3 million ton average estimate of analysts tracked by Bloomberg.
CBC
28-02-2025
- Business
- CBC
Thompson looks to diversify from mining into other industries, including tourism
Northern Manitoba's largest urban centre is looking to diversify and rebrand, shifting the perception of Thompson as a mining town to instead encourage people to think of it as a northern hub for services like education and health care, as well as a tourism hot spot. Business leaders, politicians and other experts gathered to discuss the future of Thompson and the north at this week's Linkages conference — a conference about the future of northern Manitoba organized by University College of the North in the city. "Thompson's been here for 60 years, and when it was actually first built, it was built as a mining town," Mayor Colleen Smook said in an interview. "I think more importantly is Thompson as being a hub of the north," which would require expansions for hospitals and education facilities to become a service centre to the rest of northern Manitoba, she said. While the city itself has a population of around 13,000, it's a service hub for many other northern Manitoba communities with a combined population of around 60,000, according to the mayor. The city is also looking to expand beyond mining into other industries, like cold-weather testing, aviation and modular home construction, while using its natural resources and culture to draw more tourists in, said Smook. "We've talked with different people, with whether it even be building modular homes to go out to the different communities [in the north]," she said. "Right now, you get homes that are built down south," which aren't always suited for the northern environment, said Smook. The mayor added she isn't dismissing the impact of mining on Thompson's economy, but she wants to look at options for when that industry faces a downturn. Vale SA, the parent company of Thompson's nickel mining operation, announced a potential sale of the operation earlier this year, raising concerns about its future. Vale owns two mines and a mill in the city, but over the years, the number of jobs at the mine has shrunk to about 900 employees currently. Many jobs were lost when Vale shut down its smelter — which extracts base metal out of ore — in 2018. Now, the raw ore is shipped off to other provinces to be processed. Though what would become the city of Thompson was first built up after the discovery of a major nickel deposit in the 1950s, it wasn't officially incorporated as a community until 1967. Smook said she's proud of where Thompson has come over the past 60 years, but said she wants to see even more diversification. The community has the resources required for new industry, she said. "We have all kinds of land mass up here. We have the hydroelectric [generating capacity] right up here. So you've got cheap power, fresh air, clean air," said Smook. Tourism an opportunity for Thompson: speaker Ashley Dunlop, who is the director of talent and workforce development for Economic Development Winnipeg and runs a tool that helps match job seekers with employers, attended this week's conference to learn more about labour needs in Thompson. She said she was impressed with the resources available in the northern city, which is the sixth-largest in Manitoba. "This is a big town — there's a hospital, there's an airport, there is [University College of the North]," she said. "All of those things need staff. All of those staff need places to live. All of those staff need something to do on the weekend. All of those staff need someone to sell them a car or fix their snowmobile." While mining is still a big part of Thompson, other industries are catching up, mainly education, health care and hospitality, said Dunlop. That diversification is what attracted Eric Termuende, a leadership consultant from British Columbia, to come to Thompson to speak at the conference. Termuende said he was inspired by the pride northern Manitobans have for the north, and thinks Thompson should try to replicate the work of communities like Churchill in embracing tourism as a major industry. "Tourism is another opportunity" for Thompson, he said. "I think Churchill has done an incredible job from branding themselves on a global stage as a tourism opportunity and tourism destination." Smook said tourism has been growing in Thompson. Other attendees at the conference also said they would like the region to be a destination for adventure and eco-tourism, taking advantage of the unique northern culture and the region's pristine wilderness.
Yahoo
28-01-2025
- Business
- Yahoo
Vale Shares Shed $17 Billion as Iron Ore Slump Foils Turnaround
(Bloomberg) -- A weaker China economy and battered iron ore prices have helped drive down Vale SA's stock, making investors wary of uncertainties plaguing one of the world's top suppliers of the steelmaking ingredient. Texas HOA Charged With Discrimination for Banning Section 8 Renters Budapest Mayor Aims to Block Orban's Plans to Build 'Mini Dubai' What Happened to Hanging Out on the Street? Vienna Embraces Heat Pumps to Ditch Russian Gas Billionaire Developer Caruso Slams LA Leadership Over Wildfires A persistent crisis in China's property sector and its impacts on iron ore — a metal that accounts for roughly 80% of Vale's revenue — have led investors to trim allocations in the Brazilian company in the past year. That has sent Vale shares to their lowest level since 2020, erasing more than 100 billion reais ($17 billion) in market value in 2024. The decline has continued this year, causing the Rio de Janeiro-based miner to lose its rank as Brazil's third-largest publicly traded company. 'There seems to be a bit of fear that you might buy Vale, but then China gets worse and you lose money,' said Florian Bartunek, chief investment officer and co-founder of Constellation Asset Management. Vale's downturn continues even after resolving many issues that soured investor sentiment, including a messy succession battle that ultimately saw finance head Gustavo Pimenta land the chief executive officer role. Vale also reached a settlement for a deadly mining disaster in 2015 and renegotiated a deal with the government for rail access to its key mines last year, ending two other overhangs. 'Unfortunately, now that the company has gotten things fixed, everybody's worried about China again,' said Josh Rubin, a portfolio manager at Thornburg Investment Management. About half of Vale's revenue comes from China. The company shipped 185.5 million metric tons of iron ore to the Asian nation in 2023, almost 60% of Vale's annual output. China's slowing economy has hurt real estate and construction, curbing demand for iron ore just when big miners are boosting global supplies. The price of the steelmaking ingredient fell more than 25% last year, ending December at around $100 a metric ton. At that price, Vale's dividend and share buybacks could halve to $2.1 billion this year and operating cashflow would shrink to the lowest since 2016, according to Bloomberg Intelligence. Iron ore prices bounced back a bit in January on expectations of more stimulus from Beijing, but China is shifting its focus to greener, high-technology growth and consumption — shrinking steel's importance to its economy. 'Vale's cash generation scenario is a little worse than its peers,' Humberto Meireles, a portfolio manager at Brazilian hedge fund Vinland Capital, said, adding that there's uncertainty 'about how effective the Chinese government will be in reactivating domestic demand.' American depository receipts of Vale traded at about 4.6 times estimated earnings, compared with a ratio of 11 times for BHP Group Ltd. and 9.1 times for Rio Tinto Ltd. Both peers have a more diversified portfolio, with the weakening iron ore demand outlook prompting them to push hard into copper and lithium. Vale shares fell as much as 0.9% in Sao Paulo Monday. Vale is shifting strategy under its new CEO, selling different iron ore grades to appeal to more customers and developing projects in countries such as Saudi Arabia to diversify. The metals producer also seeks to boost copper and nickel production in Canada, Brazil and Indonesia. The company last Thursday lost its position as Brazil's third-largest publicly listed company by market value to Weg SA, a global manufacturer of electrical and industrial equipment. Weg's stock has jumped 72% in the past 12 months, while Vale shares have plunged by 24%. Vale declined to comment. Shareholders aren't signaling confidence in Vale's stock rebounding anytime soon. Shares have extended last year's decline, falling 2.3% since the start of January. Earlier in the month, billionaire Rubens Ometto's conglomerate Cosan SA unloaded a 4.1% stake in Vale at a loss — the value of its investment fell 34% since the firm bought the stock in 2022. Brazil's own issues have also weighed on Vale. The country's currency and equity markets lagged all major peers in 2024, with the real slumping the most since the pandemic on fiscal concerns, and the benchmark Ibovespa stock index falling 10%. Still, some see a buying opportunity: JPMorgan Chase & Co. analyst Rodolfo Angele reiterated a positive view for Vale in a Jan. 17 note, noting the company is generating solid free cash flow and is well positioned for a weaker Brazilian currency. 'This great disconnect is an opportunity for investors,' he wrote. (Adds share price in 13th paragraph.) What Trump's Tech Billionaires Are Buying Forget Factories, Small US Towns Want Buc-ee's Gas Stations The CDC Won't Give the Public a Full Picture of Fertility Treatment Risks Elon Musk's Inaugural Highs (and Lows) How Kendrick Lamar Turned Beef With Drake Into Music Superstardom ©2025 Bloomberg L.P.
Bloomberg
27-01-2025
- Business
- Bloomberg
Vale Shares Shed $17 Billion as Iron Ore Slump Foils Turnaround
A weaker China economy and battered iron ore prices have helped drive down Vale SA 's stock, making investors wary of uncertainties plaguing one of the world's top suppliers of the steelmaking ingredient. A persistent crisis in China's property sector and its impacts on iron ore — a metal that accounts for roughly 80% of Vale's revenue — have led investors to trim allocations in the Brazilian company in the past year. That has sent Vale shares to their lowest level since 2020, erasing more than 100 billion reais ($17 billion) in market value in 2024.
