Vale’s profit drops by half in the 1st quarter, to R$ 9.5 billion – 04/26/2023 – Market

Vale recorded a profit of BRL 9.5 billion in the first quarter of 2023, a result 51.3% lower than that recorded in the same period of the previous year, when the price of iron ore skyrocketed after the start of the War in Ukraine.

The reference price for the sale of the mining company’s main product fell 11% in the comparison between the quarters. The company also faced a drop in sales, in the face of weather restrictions for ore shipments.

In the text that accompanies the balance sheet, the company’s president, Eduardo Bartolomeo, said that, despite the scenario, “we remain confident in our ability to achieve our goals for 2023”.

“While the mining industry faces constant inflationary pressures, we remain focused on cost efficiencies and productivity gains,” he added.

In the quarter, the company produced 66.8 million tons of iron ore, a volume 6% higher than in the first quarter of 2022, benefiting from the better performance of the S11D mine, in Pará, and better weather conditions in Minas Gerais.

The company’s copper production rose 18.4%, with the evolution of operations at the Salobo mine, also in Pará, and nickel production fell 10.5% due to the operational changes project at the Voisey’s Bay mine, in Canada .

The company sold 10.6% less ore fines, its main product, with an average price of US$ 108.6 per ton, 23.2% lower than that practiced in the first quarter of 2022. products sold by the company, minus nickel, which rose 13.8%.

Vale’s revenue in the first quarter fell 30.1% to R$43.8 billion. Ebitda, an indicator that measures cash generation, fell 23.6%, to R$ 18.5 billion.

The company said it has made progress in managing its tailings dams. In April, he says, two structures received a declaration of stability conditions, no longer being classified as an emergency level.

“Since 2022, we have successfully lifted emergency-level protocols for ten structures. We remain strongly committed to building a safer, more reliable company while delivering value to our shareholders,” said Bartolomeo.

In March, Vale announced that it will pay US$ 55.9 million (R$ 289 million) to the SEC, the United States Securities Commission, to settle a lawsuit filed by the agency after the failure of the company’s dam in Brumadinho, Minas Gerais. .

“Furthermore, the SEC will not oppose Vale’s motion to reject all allegations that the company acted with fraudulent or reckless intent in relation to its disclosures,” the company said, citing that it remains committed to repairing the damage caused by the dam failure in 2019.