Vale Int Share Discussion Threads

[ariane] 07/6/2022 15:49

Jefferies gives bullish forecast for mining but warns the sector is not without risks

The broker says "buy the miners to ride out the storm" and maximise leverage from a recovery
Anglo American PLC - Jefferies gives bullish forecast for mining but warns the sector is not without risks

The mining sector is “undervalued” and “poised to outperform” as China recovers from its recent state of lockdown, broker Jefferies said in an analyst note today.

The investment bank has raised price forecasts for iron ore and coal and upgraded a swathe of mining companies from Hold to Buy.

Anglo American PLC (LSE:AAL), Rio Tinto PLC (LSE:RIO), BHP Group Limited (LSE:BHP) all got a bump-up.

Jefferies raised the target price on Anglo American to 4,500p, up from 3,850p.

BHP Group’s target price was also increased to 3,100p, up from 2,500p.

The price target for Glencore PLC (LSE:GLEN), which remains a Buy, was also raised, as was Rio Tinto.

Although recent demand from China has been weak due to the impact of its latest Covid-19 outbreak, the country is now relaxing lockdowns and rolling out monetary stimulus.

Jefferies anticipates that “mining shares will likely be volatile” as China comes out of hibernation, but that the environment should shift to a place of synchronised “recovery in global demand”.

While iron ore shipments fell in the first quarter of 2022, with little organic growth, an uptick in Chinese demand could lead to a further lift in prices, Jefferies said.

Copper mining production also dropped in the first quarter and total volumes are expected to be low for the rest of the year.

Its coal price forecast is based on a "lack of supply growth" as many companies are winding down coal activities.

Commodity prices, it expects, will be “rising to new highs”, although the pace of recovery could take a decade to be realised.

Jefferies said that supply constraints continue to hamper the mining industry and that capital expenditure in the industry has been at recessionary levels for the past six years.

However, the broker said it expects mining to “outperform as the US and Euro economies slow” amid high inflation and rising interest rates.

“Macro risks are still clearly elevated as an economic hurricane could be coming, but we would buy the miners to ride out the storm and maximize leverage to the subsequent recovery,” Jefferies said in the note.

[waldron] 11/2/2022 20:26

Rio Tinto still No. 1 iron ore producer — for now

Vale was expected to overtake its main rival in the fourth quarter, but reported disappointing output after heavy rains restricted operations in northern Brazil

11 February 2022 - 16:50 Mariana Durao

Rio Tinto’s hold on the title of world No. 1 iron ore producer is safe — at least for another quarter.

Vale was expected to overtake its main rival in the fourth quarter, but reported a disappointing 82.5-million tonnes of the steelmaking ingredient after heavy rains restricted operations in northern Brazil. That compares with 84.1-million tonnes for Rio Tinto.

Vale lost the title of top supplier in the wake of a tailings dam disaster three years ago. After focusing on safety, it has slowly brought back production while Rio Tinto has suffered from its own rain disruptions and the fallout from a cultural heritage fiasco.

Now the two firms are level pegging, even delivering identical 2022 guidance of 320-335-million tonnes, though Rio Tinto’s is for shipments and Vale’s is for production. In Thursday’s report, Vale kept its 2022 projection despite more rain interruptions last month.

Bragging rights aside, the Rio de Janeiro-based company continues to bang the drum of value over volume, wary of flooding a market that’s still recovering from a rout in the second half of last year after China limited steel output to contain pollution and power use. Bloomberg Intelligence sees global supply contracting this year.

Iron ore bulls may find some support in Vale’s quarterly result, which trailed the 85.6-million-ton average estimate as well as the company’s third quarter and the year-ago result.

To be sure, iron ore sales were up slightly from a year ago and exceeded production as the company dipped into inventories. But improved fourth-quarter sales may mean marginally less shipments this year, RBC Capital analyst Tyler Broda wrote in a note to clients.

Vale is also one of the world’s biggest nickel producers and a significant copper supplier. Production of those two metals fell 5.5% and 17%, respectively, from a year ago, though nickel output surged 59% from the strike-affected previous quarter.

Bloomberg. More stories like this are available on bloomberg.com

[maywillow] 10/1/2022 16:53

sundial1
10 Jan '22 - 16:40 - 6640 of 6640
0 1 0
could do with it raining a bit more Turvart better day tomorrow,

[waldron] 29/12/2021 09:03

proactive


Oliver Haill

07:16 Wed 29 Dec 2021


Anglo American confirms talks with Vale about developing site adjoining Minas-Rio mine

Minas-Rio produced 17,596k metric tonnes of iron ore in the three quarters of 2021 reported to date
-

Anglo American PLC (LSE:AAL) said it is in talks with Brazilian mining colossus Vale about jointly developing the land next door to its Minas-Rio iron ore operation in the country.

The FTSE 100 diversified miner confirmed the preliminary discussions have taken place about “the potential” to develop Vale's Serpentina iron ore resource.

“These discussions are preliminary in nature and there can be no certainty that any agreement will be reached or, if any agreement is reached, on the terms or scope of any such agreement,” Anglo said in a statement.

Minas-Rio, which has produced 17,596k metric tonnes of iron ore in the three quarters of 2021 reported to date, is one of the largest iron ore mines in the world and has been one of the major growth projects for the company in the past decade.

Anglo owns 100% of the mine and 50% of the integrated port facility nearby.

[waldron] 27/12/2021 23:21

Vale eyes stake in Anglo American’s Brazilian iron ore project

24 Dec 2021 (Last Updated December 24th, 2021 11:19)

The acquisition would support Vale’s plan to boost its annual iron ore production capacity to 400 million tonnes.

Brazilian miner Vale is reportedly looking to buy a stake in Minas-Rio iron ore project located in the Brazilian state of Minas Gerais, from Anglo American.

Vale is considering acquiring a stake of 30-40% in the iron ore project, which includes open pit mines and a beneficiation plant, reported Bloomberg News citing one of the people knowledge with the matter.

The Brazilian miner may even pursue operatorship stake in the project.

If materialised, the acquisition is expected to support Vale’s plan of boosting its annual iron ore production capacity to 400 million tonnes and strengthen its position as a top supplier of premium iron ore.

Preliminary discussions between the parties started in 2020. However, the talks have not advanced enough to be presented to the firms’ boards. Therefore, a deal is still not certain, according to the sources.

Located in the south-eastern region of Brazil, the project also comprises a 529km pipeline, filtering plant and an export terminal at the Atlantic port of Acu in Rio de Janeiro state.

The Minas-Rio fully integrated export iron ore project is 100% owned by Anglo American’s subsidiary Iron Ore Brazil.

With 26.5 million tonnes a year production capacity, the project was purchased by Anglo American in 2008 from MMX Mineracao e Metalicos SA.

[kipper999] 02/12/2021 09:25

Interesting gibbs,
this dam disaster hangs over the company like the Deep Water Horizon still does with BP.
But, to me, most of that terrible news is now in the share price.

Bounced off $11.23 up a dollar recently. Al mining sector similarly.
May still get a chance to buy @ $11 if the markets have a few bad days.
Lots of talk of a possible market correction on the DOW/NAZ

More watching & waiting i guess

Kipper

[waldron] 27/11/2021 12:48

U2 kip

TAKE CARE

Chuckle and cheers

[kipper999] 27/11/2021 12:44

Still sat on my hands here everyone(?)
ISA fund 64% cash, so looking for some bargains if mutant Covid fears drop the market. Sub $11 here would be nice to tuck away i think.
Also, if BHP drop to 1,800/1,850 area i will top up.

Brent has dropped oil n gas & am watching BP. Anything sub £3, but in the 280's would be better. Dumped all my IMB last week pre XD, so looking there to buy back in sub £15. Will top up BATS sub £25

Good weekend all

Kipper

[waldron] 26/11/2021 19:25

Rio Tinto
4,542.5 -2.69%


Bhp
1,962 -2.39%


Anglo American
2,635 -7.40%


Glencore
352 -5.50%


Vale seems unaffected

[Brazil] VALE S.A. (VALE3)

End-of-day quote. End-of-day quote Bolsa de Valores de Sao Paulo - 11/25

70.5 BRL -0.68%

[waldron] 22/11/2021 20:35

Aye lad

back in the 70s i worked with many yorkshire lads on uk motorways and in the UAE

GREAT CRACK AND A REAL PLEASURE

FOND MEMORIES AND WHAT TALES I COULD TELL

Always used to kid me of Watford Gap

i did manage to get to Ilkeston

chuckle and cheers

[kipper999] 20/11/2021 09:48

Not sure about that waldron. Rally up to $12.50 didn't last long.
Some commodities holding up reasonably well, but iron ore at $92 now.
Plus no sign of any improvement in China yet.
Still waiting here...

Thee all av a nice weekend by eck.....as we say here in East Yorkshire
(God's own County).....lol

[waldron] 19/11/2021 17:01

Can we now call it a TURNING POINT

THE PIVOT BACK INTO FAVOUR


Rio Tinto
4,455 +1.82%


Bhp
1,884.2 +0.85%


Anglo American
2,844 +1.63%


Glencore
369.45 +0.18%


Just to say

bon weekend

or ir it buenos fin de semaine

[sarkasm] 13/11/2021 19:45

i see you are wise and careful investor

sometimes i forget to adhere to aunts quote

take care