Vale posts highest quarterly iron ore output since 2018

The volume of iron ore produced reached the highest level in a three-month period since the final quarter of 2018, powered by improved performance at a trio of Brazilian mining projects – S11D, Itabira and Brucutu – according to the company.

Last month, the firm raised its 2024 forecast for iron ore output to between 323 million and 330 million tons after a stronger-than-expected first half.

Iron ore sales during the third quarter rose 1.6% from a year earlier to 81.8 million tons, mostly due to an increase in pellet shipments.

RBC Capital Markets analysts said Vale’s production figures were above expectations across the entire portfolio and the miner was on track to achieve its full-year guidance.

Although sales volumes lagged production, the company said inventory build at the iron ore division is expected to reduce this quarter. RBC analysts said that should translate into an upgrade of market estimates for 2024 core earnings.

The average realized price of Vale’s iron ore fines was about $91 per ton in the quarter, down nearly 14% year-on-year, and 7.7% lower than the second quarter.

Vale noted that due to price increases and portfolio adjustments, its realized prices declined almost $5 per ton less than market prices during the quarter.

Base metals

Vale’s copper production increased some 5% from a year earlier to reach 85,900 tons in the third quarter, the miner said, adding that all of its copper projects showed an improvement.

The company’s nickel output was also up, by almost 12% year-on-year to total 47,100 tons, due to stronger performance at its Sudbury project as well as the ramp-up of Voisey’s Bay underground mines, both in Canada.

Vale shipped 75,200 tons of copper in the quarter, up about 2% year-on-year, while it sold 40,700 tons of nickel, nearly 4% more than the same period last year.

(By Marta Nogueira and Andre Romani; Editing by Sarah Morland, David Alire Garcia and Jamie Freed)