Vale SA, one of the world's largest iron ore producers, has announced its Q2 2024 performance.
Vale SA (VALE.US), one of the world's largest producers of iron ore, announced its Q2 2024 earnings. The data showed that the company's net revenue for Q2 was $9.92 billion, a 3% increase from $9.673 billion for the same period last year, and analysts had expected $9.94 billion. Net income attributable to shareholders was $2.769 billion, up 210% YoY and significantly higher than analysts' expected $1.7 billion.
Adjusted EBITDA was $3.993 billion, roughly the same as the previous year. Net debt decreased by 4% to $8.59 billion YoY. Capital expenditures were $1.328 billion, an increase of 10% YoY.
CEO Eduardo Bartolomeo said in a statement, 'Our strong operational performance continues quarter by quarter. In terms of iron ore solutions, we achieved a record Q2 production since 2018, mainly due to the ongoing performance of S11D iron ore. As part of our strategic goal to become the preferred supplier of low-carbon steel, we are advancing key growth mining projects such as Vargem Grande and Capanema, which will jointly increase production capacity by 30 million tons over the next 12 months.'
Bartolomeo added, 'In terms of energy transition metals, we have resumed operations at Sossego, Onça Puma and Salobo mines. We recently also announced Shaun Usmar as the new CEO, leading our copper and nickel businesses.'
In Q2, iron ore shipments increased by 7% YoY and 25% QoQ, mainly driven by record production since Q2 2018 and inventory sales. Iron ore C1 cash cost (excluding third-party purchases) increased by 6% QoQ to $24.9/ton, mainly due to the impact of seasonal inventory turnover and concentrated maintenance activities.
Due to long-term freight contracts, iron ore powder freight costs decreased by 0.3 USD/ton QoQ to 19.0 USD/ton, which was 6.8 USD/ton lower than the average freight cost of the Brazil-China C3 route.
The total cost of copper and nickel in Q2 was $3,651/ton and $15,000/ton, respectively, and both businesses are expected to achieve their annual cost guidance.