Vale (VALE) -1.9% pre-market Friday after reporting a Q4 net loss of $3.84B, compared to analyst expectations for a profit of $2.7B, widening its $694M net loss for the same period last year.
Vale (VALE) said it recorded a $3.5B impairment on Vale Base Metals’ nickel assets in Canada, “triggered by a downward revision in long-term nickel price assumptions based on market estimates,” and a writeoff of deferred tax assets from subsidiaries resulted in a $2.8B impact.
Q4 adjusted EBITDA climbed 21% Y/Y to $4.59B, matching expectations, which the company said was driven primarily by improved contributions from Vale Base Metals, and recurring free cash flow reached $1.7B, surging by $900M Y/Y, driven mainly by strong projected EBITDA and lower net financial expenses.
Q4 revenues rose 9% to $11.06B, surpassing the $10.86B analyst consensus estimate, as performance was solid across segments, as sales volumes for iron ore, copper, and nickel rose Y/Y by 5%, 8%, and 5%, respectively.
In the iron ore business, Vale (VALE) said it is advancing the commissioning of the Capanema and Vargem Grande 1 projects, with full production expected in this year’s H1 and H2, respectively, and construction of the Serra Sul +20 project has reached 84% completion, with operations expected to begin in H2.
In base metals, Vale (VALE) said it has started construction of the Bacaba project to extend the operational life of the Sossego mining complex, with copper production estimated to average 50K tons/year over an eight-year mine life.
Last month, the company reported FY 2025 iron ore production had reached 336.1M metric tons, the highest annual level since 2018, including 90.4M tons in Q4, up 6% Y/Y.
For FY 2026, Vale (VALE) affirmed it expects to produce 335M-345M tons of iron ore.