Vale SA published second quarter results

Vale SA presented its results for the second quarter of 2019 last Wednesday (07/31). According to the company, 2Q19 was a transition quarter for the business, with the Brumadinho Dam’s disruption still impacting volumes, costs, and expenses.

CEO Eduardo Bartolomeo commented: “As we moved toward full and effective remediation, the second quarter of 2019 was a transition quarter for the business.” And added: “Our response (to the dam breach) began to bear fruit to ensure the safety of the company’s people and operations, as well as reduce uncertainties and deliver sustainable results with a portfolio of high-quality products that will be reflected in the next quarter. ”

Redress

Vale SA has signed 15 agreements with local, state, and federal entities to establish a stable legal framework to mitigate the results. The company became part of the program “Alliance for Brumadinho”, launched by the Federal Government, which will leave a legacy for the area, and has advanced with the Preliminary Agreements for compensation with the authorities.

Regarding the financial results for the period, Vale recorded an EBITDA of US$4.2bn in ferrous minerals, US$621m above 1Q19.

In basic metals, the company posted EBITDA of US$465m, down US$40m from 1Q19, mainly due to lower copper prices, as well as lower production in VNC (Vale in Nova Caledonia), resulting in lower fixed cost dilution.

Cash generation of US$2.2bn in 2Q19 allowed the debt reduction to resume and further strengthened the balance sheet. As a result, Vale’s net debt fell from US$12.0bn in 1Q19 to US$9.7bn in 2Q19.

The reports can be checked at the mining site www.vale.com/prestacaodecontas

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