Quarterly results: lowest export cost in the industry and record operating performance are the 3Q15 highlights

About Vale

10/22/2015

Quarterly results: lowest export cost in the industry and record operating performance are the 3Q15 highlights

Quarterly results: lowest export cost in the industry and record operating performance are the 3Q15 highlights

Vale announced on Thursday, October 22, its financial results for the third quarter of 2015. The highlight is the significant cost cutting in the period, which made Vale the lowest cost company in the entire sector, reaching an unprecedented level of US $ 12.7 per ton of iron ore. "Vale is proud to announce these results. In terms of production, we have the lowest cost in the world", states our CFO and Investor Relations Officer, Luciano Siani Pires in the accompanying video commenting on the 3Q15 results.

The CFO also announced the completion of 75% of the work, on the largest iron ore project in our history, the S11D mine and mill, in Pará. "We continue to move forward decisively and we will start operations next year," he adds. Regarding operating performance we achieved a record quarterly production of iron ore, with 88 million metric tons.

With financial performance, the devaluation of the Brazilian real again affected our results. Our accounting performance was impacted by the appreciation of the dollar, since the value of our debt is measured in US dollars. In other words, in accounting terms the debt translated into Brazilian reais increases. However, as our revenue is also accounted for in dollars, the exchange rate brings positive effects for our company in the long term because revenues are also growing substantially. "In the case of revenues, within a year we will recoup the negative impact on the debt," explains the CFO.

Another positive highlight of the quarter is the reduction of our net debt, which fell by US $ 2.3 billion. "It is fair to say that the company is on track towards greater competitiveness, with the completion of S11D, reduction of our debt and improvements in our balance sheet position," adds Siani Pires.

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


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Quarterly results: lowest export cost in the industry and record operating performance are the 3Q15 highlights