|Bid||12.80 x 46000|
|Ask||13.08 x 900|
|Day's Range||12.89 - 13.21|
|52 Week Range||10.20 - 15.45|
|Beta (5Y Monthly)||1.14|
|PE Ratio (TTM)||19.32|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.47|
The deadly collapse of a Vale SA's mining waste dam in Brazil was partially triggered by "a persistently high water level" that caused the structure to lose strength and stability, according to a report by a panel of experts appointed by the company's lawyers. The report, released by Vale on Thursday, said there was no warning the dam was unstable, and no seismic activity or explosions in the area were recorded before it burst in late January. The dam collapse unleashed an avalanche of mining waste on the Brazilian town of Brumadinho, killing at least 155 people.
New global standards for mining waste dams should take into account the difficulties of making existing dams compliant, the chair of an independent panel of experts crafting the new rules said on Friday. The world's largest mining trade group - the International Council on Mining and Metals (ICMM) - voiced concerns last month about the draft standards, especially how the rules could apply equally to new and existing facilities. "We have to differentiate what we are requiring [for new and existing dams]," Bruno Oberle, the chair of the Global Tailings Review, told Reuters on Friday.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
(Bloomberg) -- The world’s biggest iron ore miners are looking for novel ways of satisfying their customers and protecting market share in the $150 billion global industry.From selling through a mobile app to portside sales, the likes of BHP Group, Rio Tinto Group and Vale SA are looking for an edge with buyers of the steelmaking raw material in China, the top customer. The need to retain their business is becoming ever more critical amid forecasts that the market is around its peak.“For miners, Chinese import volumes are basically not going to grow the way they used to,” said Tomas Gutierrez, analyst at Kallanish Commodities Ltd. “Any increase in value for iron ore will come from either adding service to mills or from cutting out the traders.”Rio and rivals -- who have spent more than a decade pumping billions into expansions to keep pace with China’s fast-rising appetite for iron ore -- are now preparing for an era of slower growth and an eventual high point in the nation’s steel output.They are introducing a range of initiatives to retain existing sales and add new customers -- from Rio’s development of a mobile app, to portside sales, and selling directly from China’s ports in yuan instead of shipping cargoes from Australia or Brazil that are sold in dollars.New Strategies“Our China portside customers will be able to order via a mobile app,” Rio’s Chief Commercial Officer Simon Trott told an investor seminar in October. “You can order a few tons of ore, in the same way you’d place an order on Amazon.”Rio has started portside sales, while BHP also has been testing “spot sales during transport to China as well as sales in smaller quantities with shorter lead times from bonded stockpiles in China,” Rod Dukino, vice president for sales and marketing iron ore, said at a conference in September.Selling at ports allows miners to blend different types of ore, and means “more money in the miners’ pockets,” according to UBS Group AG managing director and global head of mining, Glyn Lawcock. “We have seen over the last few years increasing sales to traders and now the miners are clawing back some of that lost margin essentially.”In particular, the use of the Chinese yuan is a breakthrough for an industry dominated by the dollar. For mills, this eliminates currency risks. For miners, this broadens their customer base and again cuts out the traders, said Lawcock.In June, Fortescue Metals Group Ltd. set up a sales office in China, offering direct supply of smaller volumes in the yuan. “This represents a new sales channel for Fortescue to complement our existing seaborne trade,” Chief Executive Elizabeth Gaines said in an email.BHP sees “huge potential in the digitization of our post-trade processes across our portfolio, both for customers and suppliers alike, through increased visibility and traceability of goods” Dukino said in an email.Large and medium-sized steel mills in China generally support the miners’ new sales strategies, according to a survey by Bloomberg of five executives at mills and industry groups.“As producers get closer to a diverse range of end customers, they understand their needs more, to facilitate an evolution in interaction and even digitalization,” according to Andrew Glass, founder of Avatar Commodities Pte and formerly head of iron ore financial trading at Anglo American Plc.Still, launching new sales channels also has its risks, and companies need to be mitigating them at the same time as extending their supply chain, Glass warned.Tight RaceThe initiatives follow similar strategies adopted by Vale since 2015. The Brazilian miner, which is still grappling with the effects of a fatal dam disaster earlier this year, blends and sells from 16 ports in China. It also has a center in Malaysia, where ore can be stored and blended.In the first for a foreign miner, Vale signed a deal with a Chinese steel mill based on prices of iron ore futures on the Dalian Commodity Exchange.While Vale has had a headstart in sales efforts, Rio is catching up, according to Kallanish’s Gutierrez. “Now that the port stock market is more developed, and the sales mechanisms are developed, then all the miners will need to compete in this area.”“The enhancement of having things like port stocks and port trade allows flexibility, and allows smaller parcel deliveries to customers,” Rio’s iron ore Chief Executive Officer Chris Salisbury said in a interview last week.\--With assistance from David Stringer, Winnie Zhu and Alfred Cang.To contact the reporter on this story: Krystal Chia in Singapore at email@example.comTo contact the editor responsible for this story: Phoebe Sedgman at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brazil's Vale SA plans to exit its troubled New Caledonia assets but still aims to ramp up nickel output ahead of rising demand for electric batteries, executives said on Wednesday. The planned divestment of nickel operations in New Caledonia comes after Vale said last month it would write down the mine and incur a non-cash impairment charge of about $1.6 billion in the fourth quarter. A year ago, the world's top nickel producer unveiled plans to invest $500 million in the mine after failing to find a partner for the operation.
Dry bulk is the world's largest ocean shipping sector by volume, and the most important dry bulk trade lane is Brazil-to-China iron ore, driven by the production of Brazilian miner Vale (NYSE: VALE). On Nov. 11, Vale estimated that its full-year 2019 iron-ore sales would be 307-312 million tons, fourth-quarter 2019 (4Q19) sales would be 83-89 million tons and 1Q20 sales would be 70-75 million tons. The Brucutu mine was the site of a tragic collapse of a tailings dam in January that killed hundreds of local residents and closed the Brucutu mine for much of the first half of last year.
Vale S.A (VALE) trims production and sales guidance for first-quarter 2020, as the company will lower its Brucutu-mine output for one-two months.
Investing.com - Steel and mining companies were higher in midday trade on Monday after U.S. President Donald Trump said he was re-implementing steel tariffs on imports from Brazil and Argentina.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterVale SA, the Brazilian mining giant, plans to place its Mozambican coal operations on maintenance for three months, essentially closing the tap on about one-third of the southeast African country’s export earnings.The move could have severe implications for the country’s balance of payments and currency, as coal is by far its biggest source of export earnings. Mozambique exported $1.7 billion worth of the fuel used in power stations and steel plants last year, with Vale operations in the center of the country accounting for almost all of that.The company completed a review of its Mozambican coal mines and decided to shift the focus to producing more metallurgical coal -- used to produce steel -- and less of the lower-value product that power stations burn. Under the new plan, the assets will produce at a rate of 15 million tons per year by the end of 2020, up from less than 12 million tons last year, but still well short of Vale’s target to export 22 million tons from the mines in central Mozambique.Vale will this quarter write down the assets by $1.6 billion, it said in a statement.To contact the reporter on this story: Matthew Hill in Maputo at email@example.comTo contact the editors responsible for this story: Gordon Bell at firstname.lastname@example.org, Hilton Shone, Rene VollgraaffFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brazilian miner Vale SA , the world's top nickel producer, will write down its New Caledonia mine and incur a non-cash impairment charge of about $1.6 billion in the fourth quarter, the company said on Tuesday in a securities filing. Vale said its annual assets review of its base metals and coal business is still underway and further impairments charges that would also impact fiscal year 2019 cannot be ruled out. The $3 billion value of the New Caledonia operation will be reduced by $1.6 billion, Vale said.
The iShares MSCI Brazil Index (NYSE: EWZ ) is up 2% in the past week as far-right President Jair Bolsonaro announced he would be leaving his right-wing Social Liberal Party (PSL) and launching his own ...
The insatiable appetite to lend to Latin America’s blue-chip corporations may allow Brazilian miner Vale SA to return to the loan market and borrow US$3bn to refinance debt at ultra-low rates, only 10 months after a dam disaster that left the country reeling. In January, following the collapse of a tailings dam at an iron ore mine in the Brumadinho region, Vale pulled back on original plans to refinance debt. Ten months and a public relations debacle later, a surfeit of lenders, including relationship banks with established ties to the miner and new lenders looking to forge a bond with one of Latin America’s most frequent borrowers, are expected to flock to the transaction.
The world's largest mining trade group said on Monday it has concerns with global standards for mining waste dams being crafted by an independent panel of academics and engineers, especially how the new rules will apply equally to new and existing facilities. The public lobbying of an ostensibly neutral process is likely to rankle environmentalists, indigenous groups and others who have long demanded miners do more to bolster safety at tailings dams, which are used to store the muddy detritus of the mining process and can be dozens of meters high. Public trust in the industry has plunged since a Brazil tailings dam owned by Vale SA collapsed last January, killing hundreds.
Vale S.A (VALE) is also likely to gain from investment in projects, lower debt and focus on introducing more high-quality ore in the market.
Brazilian miner Vale SA has signed a physical iron ore spot deal to supply a Chinese steel firm using the Dalian Commodity Exchange (DCE) iron ore price, the bourse said in a statement on Thursday. The deal comes as China aims to play a more muscular role in pricing for the steel-making ingredient, as well as in global derivatives markets, and is the first time an international miner has used a Chinese mainland iron ore futures price for a spot physical trade.
It has certainly been a tumultuous year for dry bulk. Rates are now just over half the levels seen in early September and back to where they were in late June, and iron-ore giant Vale (NYSE: VALE) has just cut its sales forecast, dealing dry bulk another blow. The most important market for Capesizes — bulkers with capacity of 100,000 deadweight tons (DWT) or more — is the iron-ore trade from Brazil to China.
Chile's peso weakened 1.4%, falling for the fourth straight session and leading declines among Latam currencies. The currency has lost around 5% over the last three weeks amid massive local protests, which among other demands, have called for a revision to the Chilean constitution. In Bolivia, President Evo Morales stepped down after weeks of protests over a disputed Oct. 20 election, as a report from the Organization of American States revealed serious irregularities in the ballot.
A federal court in Brazil said it could annul Vale SA's acquisition of midsize iron ore miner Ferrous Resources until certain environmental compliance documents have been provided, giving the company 30 days to do so, according to a decision seen by Reuters on Wednesday. A Vale spokeswoman said the iron ore miner had not been informed of the decision and that it would adopt "appropriate measures" at the proper time. It said at the time the halt did not affect the Viga mine and that the documents issue did not suggest any problems with the mine's tailings dam - a sensitive topic for Vale since the collapse of one of its mining dams killed at least 250 people in January.
A Brazilian mining joint venture between Vale SA and BHP Group Plc, paralyzed after a fatal dam collapse, is expected to resume talks to restructure $4 billion in defaulted debt in coming weeks, two sources with knowledge of the matter said. The venture, Samarco Mineracao SA, last month won permission to resume operations at its Germano iron ore mine, four years after a dam burst in the city of Mariana, in Minas Gerais state, that killed 19 people and contaminated rivers. Vale is being advised in the talks by Moelis & Co, BHP Plc by Rothschild, and Samarco by JPMorgan Chase & Co , according to the sources.