Vale reports strong 2Q24 results
Published by Will Owen,
Editor
Global Mining Review,
Vale has reported strong operational performance in 2Q24, buoyed by record-high second quarter iron ore solutions production since 2018.
Business highlights:
- Iron ore shipments increased by 5.4 million t (+7%) y/y and 16.0 million t (25%) q/q, driven by record production for a second quarter since 2018, as well as by inventory sales.
- The strong shipment performance led to a Proforma EBITDA of US$4.0 billion.
- Iron ore fines C1 cash cost ex-third party purchases was 6% higher q/q, reaching US$24.9/t, mainly due to a seasonal inventory turnover impact and concentration of maintenance activities.
- Iron ore fines freight cost decreased US$0.3/t q/q, reaching US$19.0/t, US$6.8/t lower than the Brazil-China C3 route average in 2Q24, driven by Vale’s long-term affreightment contracts exposure.
- Copper and nickel all-in costs were US$3651/t and US$15 000/t in the quarter, respectively, with both businesses on track to deliver their respective cost guidances for the year.
Eduardo Bartolomeo, CEO, comments:
“Our strong operational performance continues quarter after quarter. In iron ore solutions, we achieved record-high second quarter production since 2018, driven mainly by consistent performance at S11D. As part of our strategic objective to become the supplier of choice for low-carbon steel, we are advancing on key growth projects such as Vargem Grande and Capanema, which together will add 30 million t of capacity in the next 12 months. Additionally, we are pleased to announce a partnership within our Mega Hubs strategy, further strengthening our market position as a competitive direct reduction products supplier. In Energy Transition Metals, we resumed operations at Sossego, Onça Puma, and Salobo. We recently announced Shaun Usmar as the new CEO to lead our copper and nickel business, bringing his extensive mining experience and strategic vision. Lastly, we are proud to have successfully eliminated the B3/B4 dam and we are on track to conclude 53% of the decharacterisation programme by yearend, reinforcing our commitment to safety and sustainability.”
Read the article online at: https://www.globalminingreview.com/finance-business/30072024/vale-reports-strong-2q24-results/
You might also like
Metso expands flotation portfolio
Metso is expanding its flotation portfolio with modular Concorde Cell Plant Units for accelerated results.