On the 25th local time, Vale, a global iron ore giant headquartered in Rio de Janeiro, Brazil, announced its Q2 2024 performance. The report states that iron ore production in the second quarter of 2024 set a record high for the second quarter since 2018.
Data shows that in the second quarter of 2024, the shipment volume of iron ore increased by 5.4 million tons year-on-year and 16 million tons month on month, with growth rates of 7% and 25% respectively. This is due to the highest production volume in the second quarter since 2018 and the completion of inventory sales. The strong shipment volume resulted in a formally adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $4 billion.
In the second quarter of 2024, the cash cost of iron ore powder C1 (excluding third-party procurement) was $24.9 per ton, an increase of 6% compared to the previous quarter, mainly due to seasonal inventory turnover and concentrated maintenance and repair activities.
Affected by long-term freight contracts, the freight cost of iron ore powder decreased by 0.3 US dollars/ton month on month, reaching 19.0 US dollars/ton, which is 6.8 US dollars/ton lower than the average freight cost of the Brazil China C3 route.
The total cost of copper and nickel in the second quarter was $3651/ton and $15000/ton, respectively.
Data shows that the company's net revenue for the second quarter was $9.92 billion, a 3% increase from the same period last year, which was $9.673 billion. Analysts expect it to be $9.94 billion. The net profit attributable to shareholders was $2.769 billion, a year-on-year increase of 210%, far exceeding analysts' expectations of $1.7 billion.
The adjusted EBITDA was $3.993 billion, which was basically unchanged year-on-year. Net debt was $8.59 billion, a year-on-year decrease of 4%. Capital expenditures amounted to 1.328 billion US dollars, a year-on-year increase of 10%.
Eduardo Bartolomeo, CEO of Vale, stated that in terms of low-carbon emissions reduction, the company is advancing key growth projects such as Grand Valjean and Capanema, which will increase production capacity by 30 million tons over the next 12 months; In terms of energy transition metals, the company has resumed operations in the Sosegu, Onsabuma, and Salobo mining areas. B3/B4 mining dams will be dismantled and are expected to complete 53% of the upstream dam de characterization plan by the end of this year. (End)