Vale Int Share Discussion Threads

[florenceorbis] 28/10/2024 13:21

BHP, Vale, and Samarco reach $32bn settlement over 2015 Fundão dam disaster

The settlement includes $7.9bn already spent on remediation and compensation, $18bn to be paid in instalments over 20 years to Brazilian authorities and communities, and $5.8bn in additional obligations to be fulfilled by Samarco


Refna Tharayil
NSENERGY

28th Oct 2024


Brazil and mining companies reach $32bn settlement over 2015 Fundão dam disaster.

The Brazilian federal government, together with the States of Minas Gerais and Espirito Santo, has secured a $31.7bn settlement with mining company Samarco Mineração over the 2015 Fundão dam collapse in Brazil.

Samarco is a 50-50 joint venture (JV) between BHP Billiton Brasil and Vale. The JV owned and operated the Fundão tailings dam at the Germano iron ore mine of the Samarco Mariana mining complex.

In its 2024 annual report, BHP said that the companies have been in discussions with Brazilian authorities since early 2021 to reach a comprehensive resolution on the existing framework agreement obligations, the Federal Public Prosecution Office’s civil claim, and additional claims.

These negotiations were overseen by the Brazilian Federal Court of the 6th Region and the National Court of Justice, with support from a court-appointed mediator and participation from the public prosecutors and defenders.

BHP CEO Mike Henry said: “Today’s signing of a comprehensive agreement with the Brazilian government and public authorities is an important reflection of that commitment.

“It delivers expanded and additional programs for the environment and for the people, including designated funding for the health system, economic recovery, improved infrastructure and extensive compensation and income support measures, including for farmers, fisher people and Indigenous and Traditional communities.”

The settlement includes the $7.9bn already spent on remediation and compensation as of 30 September 2024, along with $18bn to be paid in instalments over 20 years to Brazilian authorities, municipalities, Indigenous peoples, and traditional communities.

Further obligations valued at $5.8bn will be implemented by Samarco under the terms of the agreement.

BHP Brasil’s estimated financial outflow under this settlement aligns with its FY2024 provision of $6.5bn for the dam failure.

Key terms of the agreement allocate resources to critical social and environmental programmes. The compensation for indigenous and traditional communities will total $1.4bn.

Samarco will serve as the primary obligor under the terms of the settlement, with BHP Brasil and Vale each bearing secondary liability for any unmet obligations based on their ownership shares at the time of the disaster.

The settlement’s payment schedule requires an initial instalment within 30 days of court confirmation, followed by payments every six months and annually over a period of 20 years.

Obligations are expected to be completed over approximately 15 years, with $1.2bn projected for FY25, $2.6bn for FY26, and $600m for FY27.

The settlement agreement is subject to approval from the Brazilian Supreme Court.

[waldron] 25/10/2024 17:26

BHP, Vale agree to pay $30bn compensation for Brazil dam disaster

The dam collapse triggered a giant mudslide that swamped villages, rivers and rainforest, killing 19 people (Douglas Magno)
AFP


Fri, 25 October 2024 at 6:01 pm CEST 2 min read


Mining giants BHP and Vale on Friday signed a deal with Brazil's government to pay nearly $30 billion in compensation for a 2015 dam collapse that triggered the country's worst environmental disaster.

President Luiz Inacio Lula da Silva attended the signing of the deal over the collapse of a tailings dam at a mine in the southeastern town of Mariana, which triggered a giant mudslide that swamped villages, rivers and rainforest, killing 19 people.

"I hope the mining companies have learned their lesson: it would have cost them less to prevent (the disaster), much less," Lula said after a ceremony attended by representatives of Brazil's Vale and Australia's BHP, co-owners of the Brazilian company Samarco that operated the Fundao dam.

The agreement comes on the fifth day of a mega-trial in London over whether BHP was liable for the spillage of over 40 million cubic meters of highly toxic mining sludge, the equivalent of 12,000 Olympic swimming pools, on November 5, 2015.

More than 620,000 complainants, including 46 Brazilian municipalities, are seeking an estimated £36 billion ($47 million) in damages in the civil trial.

BHP denies responsibility.

BHP and Vale had already agreed in 2016 to pay 20 billion reais (about $3.5 billion at today's rate) in compensation, but the negotiations were re-opened in 2021 due to what the government called their "non-compliance" and the slow progress of Brazil's justice system in resolving the dispute.

Friday's agreement in Brazil covers their past and future obligations to assist people, communities and ecosystems affected by the disaster.

The companies agreed to pay 100 billion reais (17.5 billion dollars) to local authorities over twenty years and 32 billion reais ($5.6 billion) towards compensating and resettling the victims and repairing the harm caused to the environment.

The remaining 38 billion reais ($6.6 billion) is the amount that the companies say they have already paid in compensation.

raa/app/cb/bjt

[waldron] 11/9/2024 17:47

Can Vale’s upgraded iron ore forecast revive its stock price?

By: Ritesh Anan
Edited by: Srinibas Rout
on Sep 11, 2024
INVEZZ

Vale raises 2024 iron ore production forecast despite market challenges.

Mixed Q2 results; revenue miss, but strong iron ore shipments.

Watch for a break above $11.6 support for potential reversal.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Vale S.A. (NYSE: VALE) made headlines today by raising its full-year 2024 iron ore production forecast, reflecting its strategic efforts to navigate challenging market conditions.


The Brazilian mining giant expects to produce between 323 million to 330 million metric tons of iron ore this year, up from its previous estimate of 310 million to 320 million tons.

This increase comes despite iron ore prices trading near two-year lows, with iron ore futures in Singapore briefly dipping below $90 per ton earlier this week.

Vale’s production upgrade suggests confidence in its ability to manage costs effectively, with all-in costs projected between $3,300 and $3,800 per ton.

This forecast adjustment is particularly significant in the context of Vale’s recent operational challenges and broader market dynamics.

Just days before, reports suggested Vale and BHP (NYSE: BHP) were nearing a massive $18 billion settlement with Brazilian authorities over the 2015 Mariana dam collapse, a disaster that continues to cast a shadow over both companies.

The settlement, which far exceeds previous offers, underscores the lingering financial and reputational risks Vale faces, even as it strives to boost production and maintain profitability.


Vale’s Q2 performance

In terms of financial performance, Vale’s Q2 2024 results were mixed. The company reported a GAAP EPS of $0.65, beating analysts’ expectations by $0.08, but revenue fell short, coming in at $9.92 billion—$560 million below estimates.

Despite the revenue miss, Vale managed to increase its iron ore shipments by 7% year-over-year and 25% quarter-over-quarter, driven by record production levels not seen since 2018.

The company’s EBITDA for the quarter stood at $4.0 billion, and capital expenditures were slightly higher year-over-year at $1.3 billion, aligning with the year’s guidance.

Vale’s gross debt and leases rose slightly to $15.1 billion in Q2, reflecting the capital-intensive nature of its operations.

However, Vale has maintained its copper production guidance for 2024 at 320,000 to 355,000 metric tons, signaling stability in its diversification efforts.

The company’s cost control measures, particularly in iron ore production, are expected to yield stronger performance in the second half of the year as lower-cost volumes from its Northern System ramp up.


Challenges for Vale stock

However, Vale faces significant challenges from the broader economic environment. The iron ore market has been under pressure due to weakening demand from China, the world’s largest consumer of the commodity.

Analysts have noted that China’s steel industry, which accounts for a significant portion of iron ore demand, is in decline, with consumption expected to fall to 70%-80% of its peak levels.

This downturn in Chinese demand is a critical challenge for Vale, given that approximately 65% of its revenue is derived from iron ore sales.


Shift to higher grade ore

On the positive side, Vale could benefit from its strategic focus on higher-grade iron ore production.

As the global market shifts towards higher-quality ores, driven by environmental regulations and the need for more efficient steelmaking processes, Vale’s investments in its high-grade S11D mine and other projects position it well to capture premium pricing.

Additionally, Vale’s exposure to nickel and copper, both of which are expected to see strong demand growth in the coming years due to the energy transition, provides some diversification and potential for revenue stability.
Vale’s valuation

From a valuation perspective, Vale appears to be trading at a discount relative to its peers, with a price-to-earnings ratio of 4.88 well below the sector median of 21.40.

Despite this, the company’s share price has been under pressure, down approximately 30% year-to-date, reflecting investor concerns over its heavy reliance on iron ore and the uncertainties surrounding Chinese demand.

However, most analysts argue that the stock is undervalued, particularly given Vale’s strong operational performance and its potential to capitalize on the growing demand for high-grade iron ore.

Now, let’s see what the charts have to say about the stock’s price trajectory. This technical analysis will explore whether Vale’s recent production upgrades and strategic initiatives can translate into a bullish reversal or if the stock will continue to face downward pressure in the near term.


Vale stock technical analysis

Vale’s stock has been in an extended downtrend since July 2021 as can be seen on the charts. However, throughout this downtrend, the stock took support multiple times near $11.6, which can also be seen in the charts.

Source: TradingView

In June this year, the stock broke below this long-term support and is currently trading below it. As long as it trades below this level it will remain weak. Hence, investors should ideally wait for the stock to give a daily closing above this earlier support turned now resistance.

Traders with a bearish outlook can initiate short positions, but once the stock bounces back to $10.5 or higher. If it does, they can short with a stop loss at $11.7 and a profit target near $8.2.

[adrian j boris] 06/9/2024 20:12

Vale, BHP, Samarco could close $18 billion deal over Brazil dam collapse, sources say

[la forge] 26/7/2024 17:30

Vale triples profits with rise in iron ore shipments

The Brazilian government, meanwhile, is considering sanctions against the miner

Isabeau van Halm

26 July 2024



Vale reported a tripled net profit in the June 2024 quarter, rising to US$2.8 billion from $892 million in the same quarter in 2023. Revenue for the quarter was $9.9 billion, up 3% from $9.7 billion...

[gibbs1] 10/7/2024 05:12

Vale announces early tender results of cash tender offers for notes due 2036, 2039, and 2034
10 July 2024 - 4:14AM
PR Newswire (US)


RIO DE JANEIRO, July 9, 2024 /PRNewswire/ -- Vale Overseas Limited ("Vale Overseas" or the "Offeror"), a wholly owned subsidiary of Vale S.A. ("Vale"), announces the early tender results of the previously announced offers to purchase for cash (the "Offers") up to a maximum aggregate principal amount of Notes (as defined below) validly tendered in the Offers not to exceed US$500,000,000, excluding any premium and any accrued and unpaid interest (the "Maximum Principal Amount"), of the outstanding notes issued by Vale Overseas of the series of notes as set forth in the table below (the "Notes"). The Offers are being made upon the terms and subject to the conditions set forth in the offer to purchase dated as of June 25, 2024 (the "Offer to Purchase").




SOURCE Vale Overseas Limited
PR Newswire

[la forge] 30/7/2023 09:38

Upcoming events on Vale S.A.


2023-10-25 Q3 2023 Earnings Release

[la forge] 30/7/2023 09:35

surprised, as thought the sales news would have prompted a positive movement up

Bolsa de Valores de Sao Paulo - 04:07:41 2023-07-28 pm EDT


67.63 BRL -3.96%

[the grumpy old men] 30/7/2023 09:29

Saudi Arabia's Ma'aden to acquire 10% of Brazil base metals firm - statement

[grupo guitarlumber] 17/4/2023 13:11

MINING.COM


Teck attracts bids from Vale, Anglo American and Freeport


Cecilia Jamasmie | April 17, 2023 | 4:49 am


Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK) is said to have been approached by Vale (NYSE: VALE), Anglo American (LON: AAL) and Freeport-McMoRan (NYSE: FCX) on potential deals for the Canadian miner’s base metals business if shareholder approve a planned split.

The three global miners are among at least six companies that have expressed interests in transactions with Teck post-split, local paper The Globe and Mail reported on Sunday, citing sources close to the matter.


The Vancouver-based company, which is Canada’s largest diversified miner, proposed in February spinning off its steelmaking coal business to focus on base metals, particularly copper and zinc.


Swiss commodity trader and mining company Glencore Plc (LON: GLEN) launched a hostile $23.1 billion takeover of Teck, which has been sweetened since then to entice Teck’s shareholders initially opposed to the idea of being exposed to a larger coal portfolio.

The revised proposal gives Teck’s shareholders who do not want to own shares in the combined coal operation the option to receive cash plus 24% of the combined metals-focused business.

On Sunday, former chairman Norman Keevil, whose family controls Teck through its ownership of the majority of the company’s ‘A’ class of shares, reiterated his arguments against the takeover.


“As there has been much media commentary regarding my views on the future of Teck, I would like to provide a clear statement of my perspective,” he said.

“My colleagues and I are proud of what we achieved through 30 years of building Teck, growing the company 500-fold from a $25 million market cap to $12.6 billion, with double-digit compounded growth in shareholder value, and continuing growth in recent years to $25 billion today,” he added.

Keevil clarify he would support a transaction — be an operating partnership, merger, acquisition, or sale – with the “right partner”, on the “right terms” for Teck Metals after separation.

Teck’s chairman emeritus added that Glencore’s proposal was “the wrong one, as well as at the wrong time” and the split should go ahead.

With just over a week left on the clock for Teck’s shareholders to vote on the split, Glencore is trying its best to persuade the Canadian miner’s shareholders. Last week, chief executive Gary Nagle landed in Toronto to personally explain his company’s vision and intentions.

By Friday evening, two influential shareholder advisory firms had recommended against Teck’s strategy, while its largest investor, China Investment Corp., said it favoured Glencore’s proposal.


The shiny orange metal

Experts had anticipated that the company’s decision to split the business in two would make Teck Metals a takeover target. The company owns four copper mines in South America and Canada, which produced 270,000 tonnes combined last year.

Teck also expects to double copper output after the second phase of its Quebrada Blanca (QB) project in Chile ramps up to full capacity by the end of 2023.

Glencore believes that operating Quebrada Blanca jointly with the nearby Collahuasi mine, in which the Swiss multinational holds a 44% stake, would add at least a $1 billion of value to its coffers.

The idea, Glencore has explained, is that QB and Collahuasi share infrastructure rather than creating a single operation. The latter would require approval from Anglo American (LON: AAL), which has 44% of Collahuasi and Sumitomo, which holds a 30% indirect interest in the Chilean copper mine.

Top miners, in turn, are hungry for copper assets as demand for the metal accelerates and a global shortfall looms. BHP, Rio Tinto and Glencore itself have disclosed that they are actively looking to grow their copper exposure.

[la forge] 02/4/2023 06:38

Latest Dividends

Summary Previous dividend Next dividend

Status Paid Forecast

Type Final Interim

Per share 34.7c Sign Up Required

Declaration date 16 Feb 2023 (Thu) –

Ex-div date 14 Mar 2023 (Tue) 19 Sep 2023 (Tue)

Pay date 29 Mar 2023 (Wed) 04 Oct 2023 (Wed)

[waldron] 14/12/2022 16:07

Ian Lyall

15:00 Wed 14 Dec 2022





US bank Jefferies has released a research note stating that its analysts have been positive on iron ore for the past six weeks, due to the potential for a China reopening and seasonal supply issues.

The rally in iron ore prices has occurred, up from $76 per tonne on October 31 to $112/t last week. However, the outperformance of iron ore relative to copper has likely played out, the bank's analysts think

Despite this, the Jefferies' analysts still see good value in shares of Rio Tinto PLC (LSE:RIO), BHP Group Ltd (LSE:BHP, ASX:BHP) and Vale SA.


Policies 'more accommodative'

They attribute the rally in iron ore prices to an improving outlook for the Chinese economy and believe that more accommodative policies with respect to Covid and the property market will lead to stability in demand for iron ore.

However, the Jefferies analysts do not expect a strong recovery in demand as Chinese property, which accounts for around 35% of iron ore demand in the seaborne market, is likely in structural decline.

Overall, Chinese steel production should track demand, and they expect only a small increase, if any, in China's steel production over the next year.

Iron ore supply is also expected to be roughly flat year-on-year, as the major miners are not increasing production significantly, investors were told.

The Jefferies' analysts expect a balanced market with prices in the $90-110 per tonne range for 2023. The consensus view is that iron ore prices will normalize to the $70-80 per tonne range, and this will happen soon.

However, the analysts expect periods when the price will be in this range, but it believes that a value-over-volumes approach for the major miners and a steepening cost curve will lead to a long-term average price of at least $90 per tonne.

In contrast, they believe that the period of relative outperformance of iron ore in mining is over and that copper is a better commodity to invest in for a ‘12+ month horizon’.

Proactive

[podgyted] 07/12/2022 19:02

Vale down close to 4% in US.

[la forge] 19/11/2022 08:44

Upcoming events on VALE S.A.

feb/23/23   FY 2022 Earnings Release (Projected)

april/26/23   Q1 2023 Earnings Release (Projected)

[florenceorbis] 19/11/2022 08:13

Vale signs supply deal with GM for battery-grade nickel sulphate



By NS Energy Staff Writer  18 Nov 2022

Vale will supply battery-grade nickel sulphate from its proposed plant at Bécancour, Québec, Canada, containing the equivalent of 25,000 metric tons of nickel per annum, which will be used to power GM’s portfolio of electric vehicles
electric-car-g4a2e7da50_640

Vale signs supply agreement with GM. (Credit: A. Krebs from Pixabay)

Brazilian mining company Vale, through its subsidiary Vale Canada, has agreed to supply US-based automotive manufacturer General Motors (GM) with battery-grade nickel sulphate.

Under the terms of the agreement, Vale will supply battery-grade nickel sulphate, containing the equivalent of 25,000 metric tons of nickel per annum, starting from the second half of 2026.

Nickel sulphate is a chemical compound that is used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.

GM will use the nickel sulphate, supplied from Vale’s proposed plant at Bécancour, Québec, Canada, for making Ultium battery cathodes, to power a portfolio of its electric vehicles.

The portfolio includes Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV Pickup and SUV.

The contained nickel in the delivery will be adequate for making around 350,000 EVs a year and will support GM’s EV production needs in North America.

Vale base metals executive vice president Deshnee Naidoo said: “This is a momentous agreement for Vale Base Metals that brings a key partner in GM into this first-of-its-kind facility for Canada and North America.

“The proposed nickel sulphate project would utilise high purity, low-carbon nickel from our Canadian refineries and is a natural extension for the business, offering diversified sales and a fast entry and anchor point into the North American electric vehicle market.

“We look forward to continuing engagements with the governments of Canada and Quebec on this strategic critical mineral project.”

Earlier this year, Vale announced the completion of pre-feasibility studies for the proposed nickel sulphate plant.

Also, Vale and GM have teamed up to jointly study the potential for advancing technology development and commercialisation to harvest recycled metals.

Vale said that the initiative strengthens its position as a supplier in the EV industry, leveraging its low-carbon footprint.

Canada Minister of Innovation, Science and Industry François-Philippe Champagne said: “This announcement between Vale and GM builds on Canada’s world-leading EV battery industry.

“It’s become even more clear that Canada can be the supplier of choice for the electric cars of the future.

“By leveraging Canadian critical minerals, we will see more jobs for Canadians, a growing economy and a greener and cleaner future for everyone.”

[the grumpy old men] 16/10/2022 09:43

Vale Canada opens phase I of $684m Copper Cliff Complex South Mine Project


By NS Energy Staff Writer 14 Oct 2022

The initial phase of the project is anticipated to nearly double ore production at Copper Cliff Mine, adding about 10,000 tonnes of contained nickel per annum and 13,000 tonnes of copper per annum


Vale Canada has inaugurated the first phase of its C$945m ($684m) Copper Cliff Complex South Mine Project in Sudbury, Canada.

The company said more than 12km of tunnels were developed to combine the south and north shafts of Copper Cliff Mine, creating a new Copper Cliff Mine Complex.

The project employed 270 people and spanned more than five million people hours moving over 600,000 tonnes of rock.

Vale’s Base Metals business executive vice-president Deshnee Naidoo said: “This first phase of the Copper Cliff Mine Complex South Project enhances our supply of low-carbon nickel and other critical minerals and adds to the long-term sustainability of our Sudbury operations.

“The successful delivery of this project is a major accomplishment for Vale and great news for Sudbury and the Province of Ontario.”

The project involved the refurbishment of the south shaft, an expansion for underground ore and waste handling systems, surface loadout and facilities and the construction of new ventilation systems.

Ontario Premier Doug Ford said: “Today’s announcement demonstrates our government’s commitment to safely extracting the province’s critical minerals and strengthening our homegrown supply chains.

“This mine will create hundreds of new jobs for our skilled workers and be a major boost for the economy of this region.

“We are thrilled that Vale is deepening its commitment to Ontario and can assure them that there is no better place for investment than right here in Sudbury.”

The first phase is anticipated to nearly double ore production at Copper Cliff Mine, adding about 10,000 tonnes of contained nickel per annum and 13,000 tonnes of copper per annum.

Ontario Minister of Mines George Pirie said: “Vale is investing $945 million in this expansion project that will increase Ontario’s supply of low-carbon critical minerals and provide jobs for over 250 people.

“This is great news for the entire region and another example of how Ontario is a leader in developing the critical minerals we need for innovative technologies like electric vehicles. Our government knows the sector’s best days are ahead and we will continue our strong support for the industry.”

Currently, feasibility studies are in progress for future development phases of the Copper Cliff Mine Complex.

[la forge] 31/8/2022 06:48

Upcoming events on VALE S.A.

October/27/2022 Q3 2022 Earnings Release

October/28/2022 Q3 2022 Earnings Call