Vale reports mixed Q2 results; reaffirms FY24 production outlook
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- Vale press release (NYSE:VALE): Q2 GAAP EPS of $0.65 beats by $0.08.
- Revenue of $9.92B (+2.6% Y/Y) misses by $560M.
- • Iron ore shipments increased by 5.4 Mt (+7%) y/y and 16.0 Mt (25%) q/q, driven by record production for a second quarter since 2018, as well as by inventory sales.
- Pro forma EBITDA of $4.0 billion.
- Capital expenditures of $1.3 billion in Q2, $0.1 billion higher y/y, in line with the year’s guidance (US$ ~6.5 billion).
- Gross debt and leases of $15.1 billion as of June 30th, 2024, $0.5 billion higher q/q.
- Outlook: Vale’s 2024 copper production guidance of 320-355 kt has been maintained.
- “We remain highly confident in achieving our C1 cost guidance of US$ 21.5-23.0/t in 2024, especially as lower-cost volumes from the Northern System ramp-up in the 2H, while the heavier maintenance activities during the 1H set the stage for a stronger cost and operating performance in the 2H.”