|Bid||13.69 x 36100|
|Ask||13.75 x 40700|
|Day's Range||13.39 - 13.67|
|52 Week Range||10.20 - 15.45|
|Beta (5Y Monthly)||1.12|
|PE Ratio (TTM)||20.16|
|Forward Dividend & Yield||0.69 (5.28%)|
|Ex-Dividend Date||Dec 25, 2019|
|1y Target Est||14.75|
Data on Friday showed China ended 2019 on a stronger footing, even as economic growth cooled to its weakest in nearly 30 years, and a surprise acceleration in Chinese industrial output sent copper prices to eight-month highs. Chile, the world's top producer of the red metal, saw its currency gain 0.3% to 773.14 to the dollar. MSCI's index of Latam currencies rose 0.4% with Mexico's peso firming 0.4% to its highest since October 2018 despite a stronger dollar.
* Chile's peso gains on higher copper prices * Latin American FX index climbs after two days of declines * Brazilian miner Vale hits over one-year high * Mexican peso, Peruvian sol, Colombian peso firm By Sagarika Jaisinghani and Ambar Warrick Jan 17 (Reuters) - Gains in the Chilean peso lifted Latin American currencies on Friday, as stronger-than-expected economic data from China added to optimism about faster global growth in the wake of a Sino-U.S. trade truce. Chile's peso was on track for its best day in more than a week as a surprise acceleration in Chinese industrial output sent copper prices near an eight-month high.
(Bloomberg) -- In the weeks and months after Vale SA’s deadly dam disaster, some of Brazil’s biggest investors snatched up shares in a bet they’d bounce back and then keep rising.A year later, the gamble paid off, but with a caveat: The stock rebounded, but Vale’s reputation hasn’t -- and that’s the problem. While the world’s largest iron ore producer, like all miners, has struggled with plenty of environmental issues in the past, there’s no denying that a company’s green credentials suddenly matter now more than ever.“With sustainability growing in importance by the day for the global investor, my big concern now relates to the long term and whether Vale is going to be able to change its image,” said Leonardo Rufino, portfolio manager at Pacifico Gestao de Recursos. “Because if it can’t, the risk is that Vale ends up being a cheap stock forever.”Pacifico, along with SPX Capital and Vinland Capital, were among asset managers that scooped up Vale stock after the dam break in January 2019 wiped out a quarter of the company’s market value. Although Tuesday marked an important milestone for Vale as shares closed at their highest since the accident, a look at the miner’s valuation tells a different story. Vale still trades at a discount of at least 20% to peers BHP Group Ltd. and Rio Tinto Plc, based on enterprise-value-to-expected-Ebitda ratio.Exposure to Vale shares and holding company Bradespar SA at Pacifico Acoes, a fund that Rufino helps manage, rose to about 12% of assets at its peak from 8% around the time of the dam break. The fund has since sold its position in Bradespar, but Vale is still among its top five holdings.Room to RunIf all else were equal, Vale’s fundamentals would signal that the stock has more room to run, Rufino said, adding that he still believes further gains are in its future. The company’s generating cash, and analysts from Bradesco, Scotiabank and Goldman Sachs see a good chance of dividends being reinstated sometime this year. Meanwhile, Rufino says the nuts-and-bolts fallout from the Brumadinho disaster, including potential liabilities and the hit to output, is “mostly priced in.”Vale has taken several steps to clean up its image in the aftermath. It replaced its chief executive officer, committed to decommissioning the type of dams that faltered and built a treatment plant to clean up polluted water. At investor meetings last month, it focused on green initiatives, including projects to help it become carbon neutral, and also launched an ESG website. The company declined to comment for this article.“The company’s been careful, taking a lot of provisions and focusing on handling the problem,” said Rufino, who helps oversee 2.2 billion reais ($530 million) in assets at Pacifico. “A discount to its global peers seems unjustified.”Vale shares were little changed at mid-day in Sao Paulo, trailing the 0.4% advance for Brazil’s benchmark Ibovespa, amid news of a fresh blow to output, albeit a limited one. Vale said Thursday that it halted operations at the newly acquired Esperanca mine near Brumadinho. The move was a precautionary step to improve safety conditions. Esperanca produces about 1 million tons of iron ore a year, the company said in note.An Urgent NoteBut as the world grows increasingly sensitive to environmental issues, money managers are plowing more and more funds into investments that fulfill environmental, social and governance -- or ESG -- standards. The Church of England dumped Vale after Brumadinho’s tragedy and blocked investments in the miner through an ethical exclusion process. And BlackRock, which upped its stake in Vale to above 5% as of December, struck an urgent note in its annual letter to corporate executives: Climate change will upend global finance sooner than they might think. CEO Larry Fink said his firm will take steps to address the issue across the thousands of companies in which it invests.Brazil’s own reputation isn’t helping Vale. President Jair Bolsonaro has questioned the need for action to combat global climate change and scoffed at his counterparts in Europe who called for him to do more to end the burning of the Amazon.That backdrop may continue to hinder any Vale upside.“At some point,” Rufino said, “we need to see a multiple expansion.”(Updates with new output halt, stock move in 9th paragraph.)To contact the reporters on this story: Vinícius Andrade in São Paulo at firstname.lastname@example.org;Sabrina Valle in Rio de Janeiro at email@example.comTo contact the editors responsible for this story: Daniel Cancel at firstname.lastname@example.org, Jessica Brice, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Almost one year to the day, Vale SA shares recovered all the ground they lost following the deadly dam break that weighed on global iron-ore supplies and led to an international backlash.The stock on Tuesday traded as high as 56.35 reais, up 1.9% on the day and topping the 56.15 real close on Jan. 24, 2019, the day before the Brumadinho dam collapse buried a Brazilian village and killed more than 250 people. Vale lost a quarter of its value in the trading session following the disaster, its second dam break in a little more than three years, which also led to fines, a dividend suspension, and possibly criminal charges.“The de-risking is already in course,” Bradesco BBI analysts Thiago Lofiego and Isabella Vasconcelos wrote in a report dated Jan. 12. They see room for further share gains on the back of potential upside for iron-ore prices and “a good chance of Vale reinstating its dividend policy in the first half of 2020.”But risks remain. The world’s biggest iron ore producer is still struggling to restore lost output and rebuild its reputation among investors. And Brazil prosecutors are expected to file criminal charges in the case soon.Output still hasn’t fully recovered, either. The Brumadinho disaster forced Vale to halt operations that account for almost a quarter of its 400 million-ton target last year, roiling iron ore markets across the globe. Vale said during an investors day last month that it expects to produce between 340 million and 355 million tons of iron ore in 2020.Vale’s ADRs also still have a ways to go before catching up to their pre-disaster price, although that has a lot to do with a weaker real that’s still trading down 11% compared with a year ago. The ADRs have 17 buys, 11 holds and one sell, according to data compiled by Bloomberg.(Updates with output figures in penultimate paragraph.)To contact the reporters on this story: Vinícius Andrade in São Paulo at email@example.com;Sabrina Valle in Rio de Janeiro at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jessica Brice, Julia LeiteFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
A Brazilian state prosecutor expects to bring criminal charges "in the next few days" against miner Vale over a mining waste dam collapse that killed at least 259 people, even as the prosecutor's federal counterpart continues to investigate the case. Andressa de Oliveira Lanchotti, coordinator for the task force of state prosecutors investigating the disaster, told Reuters they expect to indict 15 to 20 people, including executives from Vale and employees from German inspection firm TÜV SÜD - as well as the companies themselves. "What we can take away from the investigations is there were several factors pointing to risk - the risk was not unknown," Lanchotti said, disputing Vale's contention that it had no way of knowing that the dam that unleashed an avalanche of mining waste on the Brazilian town of Brumadinho in January 2019 posed a danger.
(Bloomberg) -- Samarco Mineracao SA has rejected creditors’ formal request to resume talks to restructure its defaulted debt, signaling heightened risks for bond holders, according to people with direct knowledge of the situation.The Brazilian iron ore venture between BHP Group and Vale SA said it has yet to firm up its business plan. And without that, the company argues that it will be at a disadvantage if it were to resume talks that have been put on hold for almost a year on its $2.9 billion in defaulted debt, the people said.Samarco has said it will restart iron ore mining in the second half of this year after securing all the permits required by authorities. Operations have been halted since a waste dam collapse in 2015 that killed 19 people, curtailing the company’s ability to meet its obligations to creditors.The continued delay in talks to restructure the debt may antagonize Samarco’s creditors, the people said. That’s bad news for holders of the company’s $2.2 billion in bonds maturing 2022 and 2024 that have fallen to 66 to 69 cents. The company has been in default on these obligations for almost four years.Samarco estimates production to hit as high as 8 million metric tons per year in 2020 and reach full capacity of about 24 million tons of pellets by around 2030.Negotiations for the restructuring of the defaulted debt were put on hold at the end of January 2019, when Vale, which owns half of the venture, suffered an even worse disaster at a mine in Brumadinho, also in the state of Minas Gerais. That spurred heightened scrutiny of applications for environmental permits by regulators.BHP, Vale and Samarco declined to comment.To contact the reporter on this story: Pablo Gonzalez in Sao Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Nikolaj Gammeltoft at email@example.com, Luzi Ann Javier, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. Since stock returns aren't usually symmetrically distributed and index […]
A dam owned by iron ore company Vale SA that was the subject of an investigative report by a TV program last week is structurally sound and there is no reason for concern, Brazil's national mining regulator said late on Tuesday. On Friday, the program "Jornal da Band" said it had obtained documents saying that Vale's B-5 dam in the Brazilian state of Minas Gerais had cracks, and that state prosecutors had asked the firm to hire independent auditors to look into the matter. The dam is located near the town of Brumadinho, where a Vale tailings dam burst in January, killing hundreds.
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 […]
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.