Sierra Leone woos miners to clean energy with $11 billion plan
Most mining firms rely on their own diesel supplies to extract iron ore, diamonds, rutile and bauxite in the resource-rich country.
Brazilian miner Vale, one of the world’s largest iron ore producers, said on Thursday its second-quarter net profit soared to $2.77 billion, triple the year-earlier period and above analyst estimates as sales jumped.
Analysts polled by LSEG were expecting a $1.70 billion net profit. The result was also 65% higher than in the first quarter, when net profit totaled $1.68 billion.
In addition to higher iron ore sales, Vale said net profit had a positive impact of $1.05 billion resulting from the divestment of PT Vale Indonesia that concluded in June. Analysts said it accounted in part for the better-than-expected earnings.
The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $3.99 billion in the April-June period, slightly below an analyst estimate of $4.06 billion.
Net operating revenue rose 3% to $9.9 billion.
Vale said its shipments in iron ore, its biggest segment, increased 7% from the year before.
The result led the company to maintain its goal of reaching the higher end of its production target for 2024 at 320 million tons.
Even so, higher freight costs and maintenance work impacted proforma EBTIDA, which was 6% lower than the second quarter last year, Vale said.
The average realized price for iron ore fines in the second quarter was $98.2 per ton, about flat compared with the year before.
The expanded net debt fell slightly from the first quarter of the year to reach $14.7 billion, due mostly to the proceeds from the joint venture begun in April with Manara Minerals.
The amount is within Vale’s target range of $10 billion to $20 billion.
(By Marta Nogueira, Luana Maria Benedito and Daina Beth Solomon; Editing by Aida Pelaez-Fernandez and Christopher Cushing)
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