Vale’s iron ore production increases in first quarter

30 April 2015 (Last Updated April 30th, 2015 18:30)

Brazilian metals and mining company Vale has reached the highest iron ore production of 74.5mt in the first quarter of 2015.

Brazilian metals and mining company Vale has reached the highest iron ore production of 74.5mt in the first quarter of 2015.

The company's Carajás production reached 27.5mt and production of nickel reached 69,200t, while copper and gold output reached 107,200t and 103,000oz, respectively during the quarter.

During this period, Vale's gross revenues stood at $6.3bn, decreasing $2.8bn in the fourth quarter of 2014.

The company's revenues were negatively impacted by an adjustment of $160m related to the previous year fourth quarter provisional iron ore prices and by the provisional pricing of 45% of the first quarter 2015 iron ore sales.

" Vale’s Carajás production reached 27.5mt and production of nickel reached 69,200t in the first quarter of 2015."

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at $1.6bn, which is 26.7% lower compared to the fourth quarter of 2014.

Vale's capital expenditures amounted to $2.2bn, which is equivalent to a decrease of $377m when compared to the same quarter of 2014.

The company's investments in project execution totalled $1.5bn, representing a fall of $318m in the quarter compared to previous year quarter.

The adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ferrous minerals business reached $1.027bn and cash costs for iron ore fines decreased to $19.87/t.

Adjusted EBITDA of the base metals business reached $678m, positively impacted by the goldstream transaction and by lower costs.

During the quarter, the company invested approximately 82% of the $1.1bn in ferrous minerals.

Vale signed an agreement with Silver Wheaton in March 2015 for the sale of an additional 25% of the payable goldstream from the Salobo copper mine for the life of the mine.

This transaction was accounted for as gain of $230m under 'other operational expenses', the company said.