VANCOUVER (miningweekly.com) – Brazilian iron-ore giant Vale has reported $3-billion in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the third quarter ended September, its third consecutive profitable quarter, mainly owing to rising prices and cost cutting.
The world’s largest iron-ore producer pushed output to new record volumes, helping to lift third quarter net profit to $575-million, which was a 27% improvement over the prior quarter.
"Vale had a very straightforward and clean quarter. We had a very strong quarter in operational terms and strong cash generation," CFO Luciano Siani said in a video on the company website.
Vale reported a production record of 38.7-million tons at Carajás, in Brazil, 1.8-million tons at Moatize, in Mozambique, and a new gold by-product record of 118 000 oz in the quarter. The company now looks toward starting production at the massive S11D mine in the current quarter, the construction of which is about 95% complete.
Net revenues totalled $7.32-billion, $698-million higher quarter-on-quarter.
Vale's net debt fell by $1.5-billion from the second quarter to $25.97-billion. The company set itself a debt reduction target of $15-billion by mid-2017, primarily through an aggressive programme of asset sales.
Vale’s NYSE-listed shares traded up about 0.4% Thursday morning at $6.94, more than triple the 52-week low of $2.13.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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