12.86 -0.00 (-0.02%)
After hours: 4:26PM EST
|Bid||12.70 x 36100|
|Ask||13.20 x 800|
|Day's Range||12.71 - 13.04|
|52 Week Range||10.64 - 16.13|
|Beta (3Y Monthly)||1.64|
|PE Ratio (TTM)||18.50|
|Forward Dividend & Yield||0.51 (3.87%)|
|1y Target Est||17.25|
In the previous articles, we discussed China’s steel and aluminum exports. While China (FXI) accounts for the bulk of global steel and aluminum capacity, it lacks in copper deposits and is the largest copper importer. China imported 423,000 metric tons of unwrought copper last month, a YoY fall of 3.0%.
At Vale Day in December 2017, Vale (VALE) had committed to reducing its net debt to $10 billion from $21 billion. While it was at that time seen as quite an ambitious target by analysts, Vale has achieved its aim. During Q3 2018 results, Vale reported that its net debt totaled $10.7 billion, which is the lowest level since Q3 2009.
On Vale Day on December 4, 2018, Vale (VALE) said it is getting ready for the coming electric vehicle revolution. Previously, the company had cut back on its volumes in base metals to better align production with market conditions. Nickel, cobalt, and lithium are used in rechargeable batteries in electric vehicles.
For 2018, Vale is guiding for 12 million tons of coal production, which implies flat growth year-over-year. Building a buffer: Vale is building a buffer stockpile to increase availability. Most coal companies (KOL) including Peabody Energy (BTU), Westmoreland Coal (WLB), and Alliance Resource Partners (ARLP) are facing challenges due to falling coal demand.
Vale’s (VALE) CEO mentioned during Vale Day that the recent weakness in iron ore prices was expected due to the start of the winter season in China. Also, steel capacity cuts in China are lower this year as compared to last year, while steel mills are following the same approach of producing more in advance. This has led to additional weakness in iron ore.
Vale (VALE) has changed its product portfolio and quality in iron ore according to market demand. Vale made the major shift to selling high-quality ore in 2017, as China’s fight against pollution intensified, resulting in a huge variance between high-grade and low-grade material.
Vale (VALE) hosted Vale Day in New York on December 4. It’s aiming at maintaining discipline in capital allocation and remains committed to continuing to distribute free cash flow to shareholders. Vale’s president and CEO, Fabio Schvartsman, said, “We made in this bold remark that Vale would be the company to generate more value to its shareholders.
Brazilian miner Vale SA , the world's top nickel producer, is acquiring the control of Ferrous Resources Ltd., its controlling shareholder Icahn Enterprises LP said in a securities filing. Ferrous, which explores iron ore, will merge into a company controlled by Vale, the filing said, and will be valued at $550 million, including debt. Vale Chief Executive Officer Fabio Schvartsman had said during its last earnings call that the miner was looking for small high-return acquisitions with synergies with the miner's current assets.
Previously, we discussed copper miners’ production profiles and 2018 guidance. In this part, we’ll look at leading copper producers’ unit cash costs and see what’s impacted their unit cost progression.
Freeport-McMoRan (FCX), the leading US-based copper miner, has lost 42.7% YTD (year-to-date) based on the closing prices on November 23. Other copper miners like Southern Copper (SCCO) and Antofagasta (ANTO) have also fallen in 2018. Vale (VALE) is in the green in 2018. Iron ore prices have been relatively strong despite the rout in other metals (XME).
The metals and mining space has seen a reversal of fortune this year. Metals prices plunged to multiyear lows in 2015 and 2016. However, China’s stimulus helped fuel a rally in commodity prices.
We can judge whether Vale S.A. (NYSE:VALE) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. […]
So far in this series, we discussed that copper’s near-term outlook has been impacted by the slowdown in Chinese demand. However, the looming supply-side led deficit, as predicted by most market observers, is a bullish driver.
While copper prices have been weak in 2018, higher gold shipments have helped Freeport-McMoRan (FCX) post higher earnings in the last few quarters. The company posted an adjusted EBITDA of $1.8 billion in the third quarter. The company’s EBITDA in the last 12 months ending on September 30 is $7.9 billion.
Is There More Heat Left in Freeport-McMoRan’s Rally? The real estate sector is the largest metal end consumer in China (FXI). China’s real estate investment grew 9.7% YoY (year-over-year) in the first ten months of 2018.
Freeport-McMoRan (FCX), the leading US-based copper miner, has seen a significant upside after the stock fell to its 52-week low after its third-quarter earnings were released. Although Freeport-McMoRan managed to beat its earnings estimates in the third quarter for the top line and bottom line, investors gave a thumbs down to its earnings.
A Brazilian court has ordered Vale SA , Brazil's largest miner, to stop its nickel-extracting operations in the northern state of Pará and pay damages to two indigenous tribes that live in the area. Vale, one of the country's biggest companies, will not be able to resume mining iron or nickel at its Onça Puma unit until it meets certain environmental requirements and presents plans aimed at mitigating and compensating indigenous peoples, Brazil's prosecutor-general's office said on Friday. The court decision was also on Friday.
RIO DE JANEIRO (Reuters) - Brazil's Samarco Mineracao SA, a joint venture between BHP Billiton (BHP.Ax)(BLT.L) and Vale SA (VALE3.SA), on Wednesday named former Usiminas (USIM5.SA) mining executive Cristina ...
Brazil's Samarco Mineracao SA, a joint venture between BHP Billiton and Vale SA, on Wednesday named former Usiminas mining executive Cristina Cavalcanti as its new chief financial officer. Cavalcanti joins ...
As we saw in the previous part of this series, iron ore prices have stood their ground despite growing headwinds for China (FXI). As we discussed in the previous part, one of the factors driving iron ore’s resilience is the stocking up by mills ahead of winter production curbs. As restocking completes and winter cuts kick in, the demand for iron ore from China could take a hit.
Chinese authorities imposed curbs on steel production last year ahead of winter months to reduce pollution. Steel mills are therefore in restocking mode to advance steel production before the curbs kick in. China’s iron ore import data for September also underscored this fact.
Brazil's Vale SA on Friday launched a buy-back offer for bonds worth up to $1 billion, a securities filing from the world's largest iron ore miner showed. The bonds are due between 2022 and 2042 and the ...
The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary […]