Vale reports 17% drop in Q1 2025 net income amid lower iron ore prices

Brazil-based robust ore shaper Vale has reported a 17% alteration successful nett income for the archetypal 4th of 2025 (Q1 2025), ending 31 March, chiefly owed to little robust ore prices.

For the period, nett income attributable to Vale’s shareholders stood astatine $1.39bn, a driblet from $1.67bn successful the aforesaid play a twelvemonth ago.

Net operating revenues totalled $8.1bn, a 4% alteration compared to $8.45bn successful the archetypal 4th of 2024.

The company’s adjusted net earlier interest, taxes, depreciation and amortisation (EBITDA) for the 4th stood astatine $3.1bn, a diminution of 9%.

Free currency travel during Q1 2025 declined sharply by 77% to $504m from $2.2bn successful Q1 2024.

At the extremity of 31 March 2025, Vale’s nett indebtedness roseate by 21% year-on-year to $12.19bn.

Capital expenditures for the 4th were $1.17bn, reflecting a 16% alteration from the aforesaid play a twelvemonth ago.

Vale's C1 currency outgo for robust ore fines, which reflects accumulation expenses from excavation to port, dropped 11% successful the quarter, reaching $21 per tonne (t).

Vale CEO Gustavo Pimenta said: “We had a accordant commencement to the year, aligned with our objectives for 2025. We are seeing bully momentum successful outgo management, with our C1 reaching US$21/t successful Q1, continuing the year-on-year downward trajectory.

“Our value-accretive projects proceed to progress, being indispensable elements towards enhancing our portfolio flexibility and improving operational and outgo efficiency. At Vale Base Metals, the benefits of the Asset Review initiatives are emerging and we are laser-focused connected delivering.

“Additionally, we person been consistently optimising our equilibrium expanse done asset-light solutions, specified arsenic the transaction that created the strategical associated task astatine Alianca Energia, which volition besides assistance america present connected our semipermanent decarbonisation goals.”

In February 2025, Vale said it plans to put $12.26bn to grow robust ore and copper output successful its main Carajas analyzable successful bluish Brazil.

The concern program focuses connected expanding robust ore accumulation to 200 cardinal tonnes arsenic good arsenic summation copper accumulation to 350,000t by 2030.

"Vale reports 17% driblet successful Q1 2025 nett income amid little robust ore prices" was primitively created and published by Mining Technology, a GlobalData owned brand.

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