Vale hits profit home run on strong production, rising iron-ore prices
Vale reported record 2016 iron-ore production, set to increase this year as the world's biggest iron-ore, S11D, mine ramps up
Photo by Vale
VANCOUVER (miningweekly.com) – Brazil’s Vale, the world’s largest iron-ore producer, has swung back into the black with a net profit of $3.98-billion for 2016, boosted by higher iron-ore prices and record output.
This represents a significant swing from a loss of $12.13-billion in 2015.
For the three months ended December 31, Vale reported a profit of $525-million, compared with a loss of $8.57-billion in the fourth quarter of 2015. Adjusted earnings before interest, taxes, depreciation and amortisation more than tripled to $4.77-billion for the fourth quarter of 2016, up from $1.39-billion a year earlier, and the highest since the fourth quarter if 2013.
“With strong production and the recovery in prices, it was forecast we'd have a strong quarter and finish the year strongly. And that's exactly what happened," Vale CFO Luciano Siani said in a video posted on the company's website.
Meanwhile, Vale's net operating revenue was $29.36-billion in 2016, 14.7% higher than the $25.61-billion registered in 2015.
As at year-end, net debt stood at $25-billion, with the company reporting a cash balance of $4.28-billion.
Vale delivered a strong full-year operational performance, setting several new production records, with iron-ore output of 348.8-million tons.
The Carajás operation produced 148.1-million tons of iron-ore, 311 000 t of nickel, 453 100 t of copper, 5 799 t of cobalt, and contained gold as a by-product in the copper and nickel concentrates of 483 000 oz.
Coal production at its Moatize mine reached 5.5-million tons.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
