Sao Paulo, October 25th (Xinhua) -- On the 24th local time, mining giant Vale, headquartered in Rio de Janeiro, Brazil, released its third quarter 2024 results, stating that as of September 30, 2024, Vale's net debt was $16.5 billion, an increase of $1.8 billion compared to the previous quarter, mainly due to an increase in reserves related to the Samaco dam breach.
The iron ore yard at the Madeira Port shipping terminal in the Vale region of Sao Luis, Maranh ã o state, Brazil. Data chart
The report shows that the operational and sales performance of all business departments in Vale has improved. The shipment volume of iron ore increased by 1.3 million tons year-on-year, with a growth rate of 2%; The average actual price of iron ore powder was 90.6 US dollars per ton, a decrease of 7.6 US dollars per ton compared to the previous period, while the reference price of iron ore decreased by 12.0 US dollars per ton during the same period.
Formally adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was $3.7 billion, a decrease of 6% month on month and 21% year-on-year. The cash cost of iron ore powder C1 (excluding third-party procurement) was $20.6 per ton, a decrease of 17% month on month and 6% year-on-year. In September, the production cost of C1 decreased to $18.2/ton, indicating that good performance is expected in the fourth quarter.
The total costs of copper and nickel are $2851/ton and $18073/ton, respectively. The guidance target for the total cost of copper has been further lowered, currently to $2900/ton to $3300/ton. The total cost guidance target for nickel remains at $15000/ton to $16500/ton and is expected to be achieved.
At the same time, Samarco's related reserves have been revised to $4.7 billion, an increase of $1 billion, reflecting the latest assessment of the potential settlement agreement with the Brazilian government, claims related to Samarco's dam breach, and Samarco's ability to provide funds for future outflows.
Gustavo Pimeta, CEO of Vale, stated that this quarter, Vale's iron ore production reached its highest level in over five years. The production of pellets has reached its highest level since 2019. In terms of basic metal business, the production of copper and nickel has also made steady progress, thanks to operational improvements in Canada and the effectiveness of asset reviews. The next step will continue to ensure the safety of the mining dam. Recently, the Sul Superior mining dam has been removed from the third level emergency response status.
Wen Bida stated that Vale will sign a settlement agreement with the Marianas regarding the Samako dam breach, which will benefit the affected people and society through a final solution that benefits all stakeholders