Vale delivered a strong operational performance with production records in iron ore, nickel, copper and gold
Vale delivered a strong operational performance in 4Q14 and in 2014, with production records in iron ore, nickel, copper and gold. Iron ore inventories decreased by 4.8 Mt in 4Q14 supported by record shipments in the quarter.
- Annual supply record of 331.6 Mt in 2014, including own production record of 319.2 Mt and 12.3 Mt of ore acquired from third parties.
- Annual production record in Carajás of 119.7 Mt in 2014, 14.8 Mt higher that in 2013.
- Annual production in the Southern System of 86.3 Mt in 2014, the highest annual mark since 2007, 7.3 Mt higher than in 2013.
- Quarterly production record for a fourth quarter of 83.0 Mt in 4Q14, 1.7 Mt higher than in 4Q13.
- Quarterly production record in Carajás of 34.9 Mt, 2.7 Mt higher than in 3Q14 and 3.3 Mt higher than in 4Q13.
- Quarterly transportation record of 32.9 Mt in the Estrada de Ferro Carajás (EFC) railway, 2.1 Mt higher than in 4Q13.
- Quarterly shipments record of 32.8 Mt in the Ponta da Madeira port, 1.5 Mt higher than in 4Q13.
- Annual production, excluding Samarco´s output, of 43.0 Mt in 2014, just 0.8 Mt below our target for the year and 4.0 Mt higher than in 2013.
- Annual production record in Oman of 8.6 Mt in 2014, 0.3 Mt higher than in 2013.
- Annual production record in Samarco of 12.1 Mt (attributable production) in 2014, 1.5 Mt higher than in 2013.
- Quarterly production record, excluding Samarco´s output, for a fourth quarter of 11.6 Mt in 4Q14, 0.2 Mt higher than in 3Q14 and 1.2 Mt higher than in 4Q13.
- Quarterly production record in Oman of 2.4 Mt, 0.1 Mt higher than in 3Q14.
- Quarterly production record in Samarco of 3.5 Mt (attributable production) in 4Q14, 0.2 Mt higher than in 3Q14 and 2.7 Mt higher than in 4Q13.
- Annual production of 275,000 t, the highest annual mark since 2008, despite the almost two month stoppage of VNC´s operation during the year.
- Annual production record in VNC of 19,000 t in 2014, 3,000 t higher than in 2013.
- Annual production record in Onça Puma of 21,000 t in 2014, 19,000 t higher than in 2013.
- Annual production record at PT Vale Indonesia Tbk of 78,000 t of nickel in matte.
- Quarterly production record of 73,600 t, 1,500 t higher than in 3Q14 and 5,700 t higher than in 4Q13.
- Quarterly production of 6,200 t at VNC, the second best quarterly result for VNC finished nickel production and 2,400 t higher than in 3Q14 and 4,100 t higher than in 4Q13.
- Annual production record of 379,700 t in 2014, 9,600 t higher than in 2013.
- Annual production record at Salobo of 98,000 t in 2014, 33,000 t higher than in 2013.
- Quarterly production record of 105,400 t, 600 t higher than in 3Q14 and 10,800 t higher that in 4Q13.
- Quarterly production record at Salobo of 31,600 t, 5,700 t higher than in 3Q14 and 10,500 t higher than in 4Q13.
- Annual production record of 321,000 oz in 2014, 35,000 oz higher than in 2013.
- Quarterly production record of 93,600 oz, 9,600 oz higher than in 3Q14 and 5,300 oz higher than in 4Q13.
- Annual production of 8.6 Mt in 2014, 0.1 Mt lower than in 2013.
- Annual production record in Moatize of 4.9 Mt in 2014, 1.1 Mt higher than in 2013.
- Quarterly production of 2.3 Mt, slightly lower than in 3Q14, negatively impacted by the stoppage of the Integra coal mine in Australia.
- Quarterly production record in Moatize of 1.4 Mt, 0.1 Mt higher than in 3Q14 and 0.8 Mt higher than in 4Q13.
- Annual production of 8.4 Mt in 2014, 0.1 Mt higher than in 2013, due to the good performance of Bayóvar.
It like any industry cycle. It goes up and down. The political, economic, PBR scandal storm is giving you a gift. The competitor in iron ore is not expanding and the nickel competitor had a spill. Nickel could be the winning raw material this year. You are buying a dividend under book value. I am buying 18 months to 2 years out for a great return.
Maybe the people who got rich the last cycle can give you a clue. Buy the blood as this is not their first rodeo. And crude is 60. It won't always lose money and how can you say what is going to happen in the middle east and trade laws?
It tested the support a couple days ago. I can't see it giving you a good entry again. Oil would have to d drop 4 bucks... You could get lucky but the upside looks better.
Sentiment: Strong Buy
NOT WHEN it rallies and the stock is at an average historical PPS. I figure your next post will be BK ??? With the PPS having a book value of 9 dollars that would be a 40% premium. The last two days it has went up 10% today? 7.5 is a good guess.
Panic time for shorts as OIL is going up. What happened to those 20 dollars clowns and shorts. Many stocks in the sector are trading at 1/2 book value. I look 18 months out for a triple.
- Gran Tierra Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE MKT Exchange (GTE) and the Toronto Stock Exchange (GTE), and operating in South America. Gran Tierra Energy holds interests in producing and prospective properties in Colombia, , Argentina, Peru and Brazil. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 33.7% when compared to the same quarter * Gran Tierra Energy is one of the most successful independent oil and gas companies to have entered Colombia. Average production has grown from approximately 368 barrels of oil per day NAR in 2006 to approximately 24,000 barrels of oil per day gross or 18,000 barrels of oil per day NAR in 2014. Gran Tierra Energy holds an interest in 23 Blocks in Colombia. Gran Tierra Energy is the largest producer, the largest reserve holder and the largest exploration landholder in the Putumayo Basin of southern Colombia. $$$$ Gran Tierra Energy had $360 million in cash and cash equivalents and no debt at the end of the third quarter 2014. Based on current oil prices, Gran Tierra Energy expects the 2015 work program and budget to be funded from cash flows from operations, cash on hand and periodic draws on our credit facility if needed.
“As uncertainty in oil price continues, Gran Tierra Energy remains operationally and financially flexible to adapt to the changing environment while continuing to grow production and continuing to explore for new reserves. * PERU could be a great win. We now hold 100% working interest operatorship on five blocks in the Marañon and Ucayali basins. In early 2013 we announced a major oil discovery on Block 95 in the Marañon basin which resulted in nearly doubling the size of the company’s 2P and 3P reserves from a year earlier. Brazil- Gran Tierra Energy was producing approximately 1,300 barrels of oil per day or 1,100 barrels of oil per day NAR. *Operational Update - Colombia
Chaza Block, Putumayo Basin (100% WI and Operator )* In Colombia, as a result of negotiations with Gran Tierra's crude oil transporters and a planned increase use of pipelines instead of trucking to transport oil, reduced transportation costs are anticipated to result in the Company realizing a net savings of approximately $5.20 per barrel of oil equivalent ("BOE"). Gran Tierra plans to ship approximately 75% of production via pipeline in 2015 compared to 48% shipped via pipeline in 2014 . *** Cash and cash equivalents were $331.8 million at December 31, 2014 , Working capital (including cash and cash equivalents) was $239.8 million at December 31, 2014, A new reserve report for the Bretaña field is expected before the end of the first quarter, once new maps, reservoir rock volumes and related data are integrated and evaluated.
Year-end 2014 highlights, calculated in accordance with United States Securities and Exchange Commission (“SEC”) rules (comparisons are to 2013 year-end amounts): • In Peru, as announced on January 20, 2015, Gran Tierra Energy expects the Bretaña Sur well results will remove all Possible reserves associated with the southern L4 lobe of the Bretaña field booked at year-end 2014. A reduction in Probable reserves in the field is also expected, the magnitude of which is unknown at the moment. A new reserve report for the Bretaña field will be provided after analyzing new vertical seismic profile data from the new well, to reconcile the unexpected time-depth conversion encountered by the well against the time-depth conversion from the previous four wells in the Bretaña field that was used for the pre-drill seismic mapping. The new reserve report incorporating the new mapping and reservoir characterization is expected before the end of the first quarter; • Total 1P oil and gas reserves net after royalty (“NAR”) were 37.0 million barrels of oil equivalent (“MMBOE”) at December 31, 2014, compared with 42.1 MMBOE in 2013 (100% light and medium oil and liquids compared with 95% at year-end 2013), and after producing 9.2 MMBOE of company interest oil and gas before royalties, inventory adjustments and losses or 7.0 MMBOE NAR before inventory adjustments and losses, excluding Argentina production. The decrease was primarily due to the sale of Gran Tierra Energy's Argentina business unit during 2014 which contributed 4.4 MMBOE NAR of 1P oil and gas reserves at December 31, 2013; • After producing 1.7 million barrels of oil (“MMbbl”) NAR before inventory adjustments from the Moqueta field in Colombia in 2014, appraisal drilling resulted in increased 1P reserves of 14% to 15.5 MMbbl, 2P reserves increased by 20% to 23.2 MMbbl and 3P reserves increased by 17% to 33.6 MMbbl on a company interest basis, and 1P
GTE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.75, which clearly demonstrates the ability to cover short-term cash needs.
Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
GTE's stock share price is down by 71.20%, and looks to be bouncing with the sector.
CNBC, billionaire energy mogul T. Boone Pickens predicted that oil prices would be near $80 by the fourth quarter of this year. His oil prediction is based on the thesis that U.S. energy companies will drastically cut back on production. That would decrease the supply of oil produced, eventually driving prices higher again. Analyst have the following list of stocks that could double or triple if oil prices go back to $80.
) SandRidge Energy (SD)- Billionaire hedge fund managers, Leon Cooperman and Prem Watsa own almost 20% of SandRidge. This stock traded above $4 last November, when oil was $80. That’s 185% higher than its current share price today.
) Gran Tierra Energy (GTE)- This might be the cheapest energy stock on the planet. The company has zero debt, and $1.30 in cash per share, more than half of its current share price of $2.26. With this much cash, you are getting the company’s oil and natural gas assets for a song. When oil was last $80, GTE was trading at $4.64 or 110% higher than current levels.
) Energy XXI LTD. (EXXI) – If oil goes back to $80 a barrel, EXXI should be worth almost $8 a share. That’s nearly a triple from its current price of $2.80. Energy XXI sold for as much as $24 a share just 7 months ago.
) Breitburn Energy Partners (BBEP) – Breitburn should be a near triple if oil goes back to $80. The stock already popped today by 22%. BBEP currently sold for $17.56 last November, when oil prices were at $80 a barrel. Breitburn pays an incredible $1 per share dividend, giving the stock a current dividend yield of 15%.
Its a matter of timing the low and seeing the upside.
ONE of Australia’s biggest nickel mines has been temporarily shut as its owner, First Quantum Minerals Ltd, investigates the cause of a processing-plant rupture that resulted in a chemical spill.
A “structural failure” occurred yesterday in the atmospheric leach tank at the Ravensthorpe operation in Western Australia, and the subsequent spill was contained in the plant’s bunded, or protected, area, a First Quantum spokesman said.
I think the downside is very limited here as every body is struggling ..... The upside is better with the dividend while you wait.
April 2015-Vale S.A., together with its subsidiaries, engages in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals in Brazil and internationally. Vale has a market cap of $30.0 billion and is part of the basic materials sector. Shares are down 25.8% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate Vale a buy, 4 analysts rate it a sell, and 5 rate it a hold. Vale produced 77.4 million metric tons of iron ore, up 4.5% from the same period one year earlier. That number includes 2.9 million tons of ore that Vale bought from third parties.
The recently opened N4WS mine in the company's Carajás complex in the Brazilian Amazon aided with the record output. The mine started operations in December and assisted in an 18% climb in Carajás production during the first quarter.
Production of iron-ore pellets, a concentrated type of iron ore that sells at higher prices than the regular ore, rose 15% to 11.4 million tons.
Vale's nickel output rose 2.5% to a first-quarter record of 69,200 tons, while copper output climbed 21% to a record 107,20 tons thanks to increases at the Salobo mine in northern Brazil.
That same mine contributed to a 39% year-over-year gold output to a record of 103,000 ounces.
__ VALE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 56.60%, it carries a book value of 9.5 and at historic lows. Buy low with the Commodity price cycles _ VALE SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. _ Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.5%. Since the same quarter one year prior, revenues fell by 15.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. _ rally in commodities as We've certainly been a long time into this downturn, three to four years. Its been a bear market for metals and mining companies as supply increased from capX and demand falling. Now,
Analysts say the decision will lower BHP's capex spending is a positive for the sector. Maybe , other will do the same and the industry bottoms. Vale is also the largest producer of iron ore, pellets, and second largest of nickel.[ ANGLO and BHP take some nickel production off line. . Nickel prices are expected to recover globally in the second half of the year on declining nickel pig iron production, stronger demand from the European stainless steel market and reduced nickel ore availability, Citi Research said in a report Tuesday, March 10. Vale also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, alumina and aluminium. In the electric energy sector, the company participates in consortia and currently operates nine hydroelectric plants ___CITI-little downside- With almost 38% of total global nickel mine capacity struggling to breakeven at current prices, there is little downside scope for prices from current levels, Citi concluded. The possible anti-dumping measures could prompt some consumer restocking, providing some support to nickel prices, according to the, Citi, report.
besides being at at historical great buy. The fundamentals change with the cycles and people feel the April 1st low was it. there come a time when it is just stupid to hold shorts . This is not a never ending short story but a market who gets stimulated by macro events and demand. China stimulus and the world will produce again have people buying. Its worth a 9 book and a buy. By the time the fundamentals show the change this will be much higher. I am sorry you cant read the technicals right.