Brazil-based iron ore producer Vale has reported a 17% decrease in net income for the first quarter of 2025 (Q1 2025), ending 31 March, primarily due to lower iron ore prices.
For the period, net income attributable to Vale’s shareholders stood at $1.39bn, a drop from $1.67bn in the same period a year ago.
Net operating revenues totalled $8.1bn, a 4% decrease compared to $8.45bn in the first quarter of 2024.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter stood at $3.1bn, a decline of 9%.
Free cash flow during Q1 2025 declined sharply by 77% to $504m from $2.2bn in Q1 2024.
At the end of 31 March 2025, Vale’s net debt rose by 21% year-on-year to $12.19bn.
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By GlobalDataCapital expenditures for the quarter were $1.17bn, reflecting a 16% decrease from the same period a year ago.
Vale’s C1 cash cost for iron ore fines, which reflects production expenses from mine to port, dropped 11% in the quarter, reaching $21 per tonne (t).
Vale CEO Gustavo Pimenta said: “We had a consistent start to the year, aligned with our objectives for 2025. We are seeing good momentum in cost management, with our C1 reaching US$21/t in Q1, continuing the year-on-year downward trajectory.
“Our value-accretive projects continue to progress, being essential elements towards enhancing our portfolio flexibility and improving operational and cost efficiency. At Vale Base Metals, the benefits of the Asset Review initiatives are emerging and we are laser-focused on delivering.
“Additionally, we have been consistently optimising our balance sheet through asset-light solutions, such as the transaction that created the strategic joint venture at Alianca Energia, which will also help us deliver on our long-term decarbonisation goals.”
In February 2025, Vale said it plans to invest $12.26bn to expand iron ore and copper output in its main Carajas complex in northern Brazil.
The investment plan focuses on expanding iron ore production to 200 million tonnes as well as increase copper production to 350,000t by 2030.
