Vale closes third quarter with strong cash generation and record operational performance
Vale released its financial results for the third quarter of 2016 on Thursday, October 27. Among the highlights for the period are Vale’s cash generation, as measured by EBITDA, which reached US$ 3 billion, representing an increase of 20% compared to 2Q16. "Vale’s results for 3Q16 were good across the board; excellent operating performance, good cash flow and net income of US$ 575 million” states Luciano Siani Pires, CFO and Investor Relations Officer, in the attached video about the company’s performance.
According to Siani, the good results were due to the continued efforts to reduce costs over the last few quarters. Iron ore cost at port fell from US$ 13.2 to US$ 13. "Despite the US dollar moving from R$ 3.51 to R$ 3.25, the cost was reduced. An increase was expected, but the opposite occurred. This is because there was an even greater reduction in reais. So this was a very important result," said the executive.
We achieved records in operating performance for mine production in the Northern System, for the Moatize coal mine in Mozambique, and for gold production. "The result was very good, with all-time records for a quarter," said Siani. As a result of this significant performance, our net debt decreased by over U$ 1.5 billion.
Among the highlights is also the progress of the S11D project in Pará. The railway line is already completed and we have achieved 95% of physical progress in the mine and plant. "We are eagerly awaiting the start-up of ore production from S11D, which should begin by the end of the year," added the director.
Watch the video in full and find out more about our results in the infographic below.