Quarterly results: Vale posts earnings and production records in second quarter

About Vale

7/28/2016

Quarterly results: Vale posts earnings and production records in second quarter

Quarterly results: Vale posts earnings and production records in second quarter

Today (Thursday, July 28), Vale announced its financial results for the second quarter of 2016. The company ended the period with net earnings of US$ 1.1 billion. Cash flow was US$ 2.38 billion, 19% up from 1Q16. “It was a quarter of sequential improvements, in line with the company’s main objectives,” says Vale’s CFO and investor relations executive director, Luciano Siani Pires, in the video to the side, in which he comments on the company’s performance.

On the operational side, we produced 86.8 million metric tons of iron ore in 2Q16, up from the first quarter, mainly due to strong performance in our Northern System. The company achieved second-quarter production records for iron ore in Carajás, and also nickel, copper and gold. We continued along our cost reduction path, recording the lowest costs in our recent history to ship iron ore to China: US$ 30.3 per metric ton, including capital expenses. “We remain solid, prepared to face a more challenging price environment,” Siani says.

Regarding the completion of our investment program, we have now executed 90% of the physical work on the S11D project’s mine and plant in Pará, and 92% of work on the railway branch line to connect the project to the Carajás Railway. In terms of financial management, we achieved a small reduction in the company’s net debt, despite the strengthening of the Brazilian real. “We are confident that our improved competitiveness, delivery of our investment plan and debt reduction will deliver ever more value to our shareholders,” Siani explains.

Watch the full video and find out more about our results in the infographic below.


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Quarterly results: Vale posts earnings and production records in second quarter