VALE.US (VALE.US) Q3 iron ore production increased 5.5% year-on-year to a new high in nearly six years

The Zhitong Finance App learned that Brazilian mining company VALE.US (VALE.US) reported on Tuesday that its iron ore production in the third quarter increased 5.5% year-on-year, reaching the highest level in nearly six years.

The company said in a securities filing that one of the world's largest iron ore suppliers produced 91 million tons in the three months ending September 30.

The company said iron ore production reached the highest level in three months since the last quarter of 2018 due to improved performance in Brazil's S11D, Itabira and Brucutu mining projects.

Last month, the company raised its 2024 iron ore production forecast to 323 million tons to 330 million tons after iron ore production in the first half of the year was stronger than expected.

Iron ore sales increased 1.6% year-on-year in the third quarter to reach 81.8 million tons, mainly due to increased pellet shipments.

RBC Capital Markets analysts said that production data for Vale's entire portfolio was higher than expected, and the miner is expected to meet its full-year guidance.

Although sales are lagging behind production, the company said the increase in inventories in the iron ore division is expected to decrease this quarter. RBC analysts said this should mean an increase in market expectations for core earnings in 2024.

The average realized price of Vale's iron ore powder mine was around $91 per ton in the quarter, down nearly 14% year over year and 7.7% lower than in the second quarter.

Vale notes that due to price increases and portfolio adjustments, its realized price fell by nearly $5 per ton in the quarter compared to the market price.

base metals

Vale said the company's copper production in the third quarter increased by about 5% over the same period last year to 85,900 tons, adding that all of its copper projects had improved.

The company's nickel production also increased nearly 12% year over year to 471,000 tons, thanks to the strong performance of its Sudbury project and the growth of Canada's Voisey's Bay underground mine.

Vale's copper shipments this quarter were 75,200 tons, up about 2% year on year, and nickel shipments were 40,700 tons, up nearly 4% from the same period last year.