Vale likely to announce extraordinary dividends soon, CFO says
SAO PAULO/RIO DE JANEIRO - Vale is likely to announce extraordinary dividends in the coming months, CFO Marcelo Bacci said during a call with analysts on Friday, following the release of the Brazilian miner's third-quarter results.
The prospect follows stronger-than-expected cash flow early in the year and comes as iron ore prices have consistently held up above $100 per metric ton, Bacci said.
Vale, one of the world's largest iron ore miners, reported on Thursday an 11% year-over-year increase in net profit, beating market forecasts. Executives said the firm is on track to meet all its full-year outlooks.
Asked whether potential extraordinary dividends could be affected by a Brazilian bill seeking to impose a 10% withholding tax on dividends sent abroad, executives said they were closely monitoring developments to minimize any impact on shareholders. They noted, however, that the overall effect would be limited.
Bacci also said that Vale does not anticipate changes to its expanded net debt policy in the short term, as the current framework and range are considered appropriate for present conditions.
The miner noted that its expanded net debt is currently trending towards the mid-range of its target of $10-billion to $20-billion.
On the same call, CEO Gustavo Pimenta ruled out potential mergers and acquisitions. "We don't need to do that, we have the resources here," he said.
Sao Paulo-traded shares of Vale rose about 2% on Friday.
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