Vale closed 2016 with profit and the highest cash generation in the iron ore business of the whole industry

2/22/2017

Vale closed 2016 with profit and the highest cash generation in the iron ore business of the whole industry

Vale closed 2016 with profit and the highest cash generation in the iron ore business of the whole industry

On this Thursday, February 23, Vale announced its financial results for the fourth quarter of 2016 and for the full year. Among the highlights of the period is the significant cash generation, measured by EBITDA. The company ended the quarter with adjusted EBITDA of USD 4.8 billion, the highest amount since 4Q13, when the price of iron ore ton was USD 134.6, in opposition to the current USD 70. "A very outstanding performance together with the recovery of prices of the forth quarter resulted in a very strong quarter in terms of financial results,” said the Finance and Investor Relations Executive Director, Luciano Siani Pires, in the video beside about the company's performance.

In the annual performance, Vale ended 2016 with a cash generation of USD 12.2 billion, 70% higher than what was achieved in 2015. The record is even more challenging if we consider that the price of iron ore ton has risen only 5% during the period. We also had a significant reversal of the loss seen in 2015, and ended the year with net income of about USD 3.9 billion. "These are exceptional results generated in all the company's business," Siani said.

In Base Metals, we also had very expressive results. Despite lower prices, we had an adjusted EBITDA of US$ 1.8 billion. Compared to 2013, it represents an increase of 14% in cash flow generation, despite the lower nickel and copper prices of 36% and 34%, respectively.

The good performance happened due to increased volumes, with production records in iron ore, nickel and copper, and reduction of costs. The good production volume made Vale close the year the highest cash generation in the iron ore business of the whole industry.

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


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Vale closed 2016 with profit and the highest cash generation in the iron ore business of the whole industry