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Vale Reports Y/Y Increases in Iron Ore, Copper & Nickel Output in Q3
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Vale S.A. (VALE - Free Report) reported iron ore production of around 91 million tons (Mt) for the third quarter of 2024, reflecting a 5.5% increase from the year-ago quarter. This marks VALE’s highest output since the fourth quarter of 2018, driven by improved operating performances at Itabira and Brucutu.
During the quarter, the S11D mine produced 22.1 Mt of iron ore, a 14% year-over-year increase. This was the seventh quarter of a year-over-year production improvement delivered by the mine, bolstered by ongoing asset reliability initiatives.
Vale’s pellet production rose 13% year over year to 10.4 Mt. This was the highest quarterly production since 2018, driven by higher pellet feed availability from the Brucutu and Itabira mines, and increasing pellet production at the Tubarão site.
Vale Reports Higher Iron Ore Sales Volumes in Q3, Price Dip
Iron ore fines sales dipped 0.5% from the year-ago quarter to 69.3 Mt while pellet sales were up 17.8% to around 10.1 Mt. Total iron ore sales were up 1.6% to 81.8 Mt on the back of higher pellet sales.
Vale reported an inventory of 5.5 Mt at the end of the quarter, mainly due to cargos in transit along the supply chain as production seasonally increased in the third quarter. These inventories will be converted into sales in the ongoing quarter.
The average realized iron ore fines price was $90.60 per ton in the September-ended quarter, down 13.8% year over year and 7.7% sequentially due to lower iron ore prices.
Vale on Track to Meet 2024 Guidance for Iron Ore
Vale's iron ore production totaled 242.2 Mt in the first nine-month period of 2024. The figure is 4.6% higher than the production in the comparable period in the previous year.
The company, on Sept. 9, had increased its 2024 iron ore production guidance to the range of 323-330 Mt from its previous guidance of 310-320 Mt. The revision was backed by continued improvements in operational stability and asset reliability. The updated guidance indicates 1.7% year-over-year growth at the midpoint.
To meet its iron ore production target for the year, Vale needs to produce iron ore in the range of 80.8-90.8 Mt in the fourth quarter. The company had produced 89.4 Mt of iron ore in the fourth quarter of 2023.
Pellet production is projected to be between 38 Mt and 42 Mt , higher than the figure of 36.5 Mt in 2023.
Vale’s Q3 Copper & Nickel Production & Sales Volumes Up Y/Y
In the third quarter, Vale produced 85.9 kt of copper, which was 5.3% higher than the year-ago quarter. Salobo 1&2 plants reported a 30% year-over-year improvement in ore processed. This was offset by the impact of the conveyor belt fire that occurred at the Salobo 3 plant as well as lower feed grades. Copper output at Sossego was up aided by higher mined volumes and feed grade to the mill.
Vale sold 75.2 kt of copper, which was up 1.9% from the year-ago quarter. Sales volumes were, however, lower than production due to in-transit volumes and Vale Base Metals’ commercial strategy.
The average realized price for copper operations only (Salobo and Sossego) was $9,016 per ton, up 16.6% year over year but down 2% on a sequential basis. The average realized copper price for all operations (including copper sales originating from nickel operations) was $9,053 per ton.
Production of nickel increased 3.8% year over year to 47.1 kt in the July-September 2024 period. This reflects improved performance in Sudbury and the continued ramp-up of Voisey’s Bay underground mines.
Nickel sales were recorded at 40.7 kt, up 3.8% from the year-ago quarter’s figure. Sales were lower than production due to an inventory build-up and Vale Base Metals’ sales strategy.
The average realized nickel price was $17,012 per ton, down 20% from the year-ago quarter. This was in line with the decrease in LME nickel reference prices, partially offset by higher realized premiums.
VALE’s Copper & Nickel Guidance for 2024
Vale expects to produce copper in the range of 320-355 kt. The company’s copper output in 2023 was reported at 326.6 kt.
The company expects nickel output to be between 153 kt and 168 kt. In 2023, it had produced 164.9 kt of nickel.
Vale recently reported a temporary suspension of operations at its Onça Puma nickel plant due to an outage at the local electricity company's transmission network. It estimates this disruption to impact its nickel production by 1.5- 2.0 kt in the fourth quarter of 2024. Despite this setback, Vale maintained its nickel production guidance at 153-168 kt . Yesterday, it announced the resumption of power supply to the plant and the start of the operation ramp-up .
Vale's Peer Performances
Rio Tinto (RIO - Free Report) reported a 1% year-over-year improvement in its third-quarter (ended Sept. 30, 2024) iron ore production to 84.1 Mt (on a 100% basis) as productivity gains offset ore depletion. This brings RIO’s total iron ore output for the nine-month period to 242.9 Mt, a decline of 1% year over year.
Iron-ore shipments for the quarter (on a 100% basis) were reported at 84.5 Mt, up 1% year over year. Rio Tinto expects Pilbara iron ore shipments (100% basis) to be between 323 Mt and 338 Mt in 2024. The midpoint of the guidance indicates a year-over-year dip of 0.4%.
Copper production was 168 thousand tons in the third quarter , 1% lower than the year-ago quarter. RIO expects copper production to be between 660 thousand tons and 720 thousand tons in 2024, indicating 11.3% growth at the midpoint.
BHP Group (BHP - Free Report) announced its iron ore production rose 2% year over year to 64.6 Mt in the first quarter of fiscal 2025 (ended Sept. 30, 2024). Production at Western Australia Iron Ore (WAIO) was up 2% to 63.4 Mt, aided by strong supply-chain performance with increased capacity unlocked by the Port Debottlenecking Project 1.
Iron ore production guidance is at 255 – 265.5 Mt for fiscal 2025. BHP’s iron ore production for fiscal 2024 was a record 260 Mt.
Copper output improved 4% year over year to 476.3 kt in the fiscal first quarter . BHP maintained its copper production guidance for fiscal 2025 at between 1,845 kt and 2,045 kt. The company had produced 1,865 kt of copper in fiscal 2024, the highest in 15 years.
VALE Stock’s Price Performance
Shares of Vale have lost 14.% in a year, in line with the industry.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings has moved up 6.25% over the past 60 days. The estimate indicates year-over-year growth of 39.9%. CRS beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The company's shares have soared 151.7% in the past year.
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Vale Reports Y/Y Increases in Iron Ore, Copper & Nickel Output in Q3
Vale S.A. (VALE - Free Report) reported iron ore production of around 91 million tons (Mt) for the third quarter of 2024, reflecting a 5.5% increase from the year-ago quarter. This marks VALE’s highest output since the fourth quarter of 2018, driven by improved operating performances at Itabira and Brucutu.
During the quarter, the S11D mine produced 22.1 Mt of iron ore, a 14% year-over-year increase. This was the seventh quarter of a year-over-year production improvement delivered by the mine, bolstered by ongoing asset reliability initiatives.
Vale’s pellet production rose 13% year over year to 10.4 Mt. This was the highest quarterly production since 2018, driven by higher pellet feed availability from the Brucutu and Itabira mines, and increasing pellet production at the Tubarão site.
Vale Reports Higher Iron Ore Sales Volumes in Q3, Price Dip
Iron ore fines sales dipped 0.5% from the year-ago quarter to 69.3 Mt while pellet sales were up 17.8% to around 10.1 Mt. Total iron ore sales were up 1.6% to 81.8 Mt on the back of higher pellet sales.
Vale reported an inventory of 5.5 Mt at the end of the quarter, mainly due to cargos in transit along the supply chain as production seasonally increased in the third quarter. These inventories will be converted into sales in the ongoing quarter.
The average realized iron ore fines price was $90.60 per ton in the September-ended quarter, down 13.8% year over year and 7.7% sequentially due to lower iron ore prices.
Vale on Track to Meet 2024 Guidance for Iron Ore
Vale's iron ore production totaled 242.2 Mt in the first nine-month period of 2024. The figure is 4.6% higher than the production in the comparable period in the previous year.
The company, on Sept. 9, had increased its 2024 iron ore production guidance to the range of 323-330 Mt from its previous guidance of 310-320 Mt. The revision was backed by continued improvements in operational stability and asset reliability. The updated guidance indicates 1.7% year-over-year growth at the midpoint.
To meet its iron ore production target for the year, Vale needs to produce iron ore in the range of 80.8-90.8 Mt in the fourth quarter. The company had produced 89.4 Mt of iron ore in the fourth quarter of 2023.
Pellet production is projected to be between 38 Mt and 42 Mt , higher than the figure of 36.5 Mt in 2023.
Vale’s Q3 Copper & Nickel Production & Sales Volumes Up Y/Y
In the third quarter, Vale produced 85.9 kt of copper, which was 5.3% higher than the year-ago quarter. Salobo 1&2 plants reported a 30% year-over-year improvement in ore processed. This was offset by the impact of the conveyor belt fire that occurred at the Salobo 3 plant as well as lower feed grades. Copper output at Sossego was up aided by higher mined volumes and feed grade to the mill.
Vale sold 75.2 kt of copper, which was up 1.9% from the year-ago quarter. Sales volumes were, however, lower than production due to in-transit volumes and Vale Base Metals’ commercial strategy.
The average realized price for copper operations only (Salobo and Sossego) was $9,016 per ton, up 16.6% year over year but down 2% on a sequential basis. The average realized copper price for all operations (including copper sales originating from nickel operations) was $9,053 per ton.
Production of nickel increased 3.8% year over year to 47.1 kt in the July-September 2024 period. This reflects improved performance in Sudbury and the continued ramp-up of Voisey’s Bay underground mines.
Nickel sales were recorded at 40.7 kt, up 3.8% from the year-ago quarter’s figure. Sales were lower than production due to an inventory build-up and Vale Base Metals’ sales strategy.
The average realized nickel price was $17,012 per ton, down 20% from the year-ago quarter. This was in line with the decrease in LME nickel reference prices, partially offset by higher realized premiums.
VALE’s Copper & Nickel Guidance for 2024
Vale expects to produce copper in the range of 320-355 kt. The company’s copper output in 2023 was reported at 326.6 kt.
The company expects nickel output to be between 153 kt and 168 kt. In 2023, it had produced 164.9 kt of nickel.
Vale recently reported a temporary suspension of operations at its Onça Puma nickel plant due to an outage at the local electricity company's transmission network. It estimates this disruption to impact its nickel production by 1.5- 2.0 kt in the fourth quarter of 2024. Despite this setback, Vale maintained its nickel production guidance at 153-168 kt . Yesterday, it announced the resumption of power supply to the plant and the start of the operation ramp-up .
Vale's Peer Performances
Rio Tinto (RIO - Free Report) reported a 1% year-over-year improvement in its third-quarter (ended Sept. 30, 2024) iron ore production to 84.1 Mt (on a 100% basis) as productivity gains offset ore depletion. This brings RIO’s total iron ore output for the nine-month period to 242.9 Mt, a decline of 1% year over year.
Iron-ore shipments for the quarter (on a 100% basis) were reported at 84.5 Mt, up 1% year over year. Rio Tinto expects Pilbara iron ore shipments (100% basis) to be between 323 Mt and 338 Mt in 2024. The midpoint of the guidance indicates a year-over-year dip of 0.4%.
Copper production was 168 thousand tons in the third quarter , 1% lower than the year-ago quarter. RIO expects copper production to be between 660 thousand tons and 720 thousand tons in 2024, indicating 11.3% growth at the midpoint.
BHP Group (BHP - Free Report) announced its iron ore production rose 2% year over year to 64.6 Mt in the first quarter of fiscal 2025 (ended Sept. 30, 2024). Production at Western Australia Iron Ore (WAIO) was up 2% to 63.4 Mt, aided by strong supply-chain performance with increased capacity unlocked by the Port Debottlenecking Project 1.
Iron ore production guidance is at 255 – 265.5 Mt for fiscal 2025. BHP’s iron ore production for fiscal 2024 was a record 260 Mt.
Copper output improved 4% year over year to 476.3 kt in the fiscal first quarter . BHP maintained its copper production guidance for fiscal 2025 at between 1,845 kt and 2,045 kt. The company had produced 1,865 kt of copper in fiscal 2024, the highest in 15 years.
VALE Stock’s Price Performance
Shares of Vale have lost 14.% in a year, in line with the industry.
Image Source: Zacks Investment Research
VALE’s Zacks Rank & a Stock to Consider
Vale currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the Basic Materials space is Carpenter Technology Corporation (CRS - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings has moved up 6.25% over the past 60 days. The estimate indicates year-over-year growth of 39.9%. CRS beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The company's shares have soared 151.7% in the past year.