Brazil miner Vale nearly doubles net profit as output recovers
Brazilian miner Vale SA VALE3.SA on Wednesday reported that its third quarter net profit nearly doubled, as the company boosted iron ore production and inventories following a deadly dam disaster in January 2019.
The $2.9 billion net profit in the three months through September compared with $1.6 billion in the year-ago period, although it fell short of a Refinitiv estimate of $3.6 billion.
Results were driven by a 26% increase in realized prices for iron ore and 20% higher iron ore sales volumes in the quarter, Vale said.
The world’s second largest producer of the key steelmaking ingredient earlier this month reported a 31% recovery in iron ore output compared to the second quarter. It reached its best result in two years – 88.7 million metric tons – as a number of mines that were halted after the Brumadinho dam collapse ramped up production or came online.
Vale posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 6.1 billion, up from $4.6 billion in the year-ago period.
Source: Reuters (Reporting by Sabrina Valle; Editing by Christian Plumb)