Vale sees iron-ore output at high-end of 2024 guidance after Q2 rise
RIO DE JANEIRO/SAO PAULO - Brazilian miner Vale expressed confidence on Tuesday that it would reach the high-end of its 2024 guidance for iron ore production after output increased in the second-quarter.
The company, one of the world's largest iron-ore miners, said in its quarterly sales and output report that production of the steel-making ingredient in the three-month period to the end of June rose 2.4% from a year earlier to 80.6-million metric tons.
"This quarter's performance reinforces our confidence in achieving the upper end of the 2024 production guidance", Vale said. The firm expects to produce 310-million tons to 320-million tons of iron ore in 2024.
Vale's rival, BHP Group, also reported its latest production figures, saying output reached a record high in the year to the end of June of 287-million tons. It forecast output of up to 294 tons in its fiscal 2025.
Output in Vale's latest quarter was boosted by a "robust performance" at the firm's S11D and Vargem Grande mining complexes in Brazil, the company said.
Second-quarter iron ore sales rose 7.3% from a year earlier to 79.8-million tons, boosted by sales of inventories.
The average realized price of Vale's iron ore fines was $98.2 per ton in the quarter, nearly stable year-on-year.
"We expect a slightly positive market reaction to these production results," Yuri Pereira and Arthur Biscuola at Santander said in a market note following Vale's report. They said Vale's report placed "upside risk" to their EBITDA estimates for the quarter.
BASE METALS
Vale's nickel output dropped 24.4% from a year earlier to 27 900 tons, mostly due to planned maintenance at processing plants, the miner said.
Copper production was almost stable from a year earlier at 78 600 tons, it said, noting that bi-annual maintenance at its Sudbury plant offset a stronger performance at Salobo and Sossego.
Vale is expected to release full second-quarter earnings on July 25.
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