8.24 +0.09 (1.15%)
After hours: 4:17PM EDT
|Bid||8.02 x 21500|
|Ask||8.35 x 27000|
|Day's range||7.94 - 8.40|
|52-week range||6.49 - 14.19|
|Beta (5Y monthly)||1.13|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.69 (8.64%)|
|Ex-dividend date||26 Dec 2019|
|1y target est||13.90|
Vale S.A (VALE) temporarily closes its Malaysian terminal and distribution center, and announces support initiatives for its suppliers in Brazilin the wake of the coronavirus outbreak.
The Zacks Analyst Blog Highlights: Freeport-McMoRan, Teck Resources, Vale, Rio Tinto and Southern Copper
(Bloomberg) -- Vale SA is tapping into $5 billion in credit lines to boost its cash position as the coronavirus pandemic forces cutbacks at a time when the iron ore producer was working to recover from a dam collapse last year.Vale asked banks to disburse the lines in two tranches, with $2 billion due in June 2022 and $3 billion due in December 2024, according to a statement filed to Brazil’s securities regulator. The company said the decision was made given the risk presented to its business by the pandemic, adding that it’s “prudent” to have more cash in hand “in the next few months.”The global pandemic has prompted Vale to limit operations in Canada and Asia as governments struggle to contain the virus. Vale’s sales are expected to be reduced by 500,000 tons in the first quarter after the shutdown of a Malaysia terminal. The world’s largest iron ore miner is still recovering from a disastrous year in which the deadly dam disaster in January 2019 forced it to suspend operations accounting for about a fourth of its forecast output.“Vale had been already beaten hard after two dam break disasters and is now trying to guarantee liquidity,” Adriano Pires, an analyst from consultancy firm CBIE, said by phone. “This is a liquidity crisis. From Vale to Petrobras to the bakery at the corner of my street, everyone will need to secure credit.”The company’s shares rose 10% in Sao Paulo, contributing to the 9.7% advance of the benchmark Ibovespa gauge.In Canada, the company’s copper concentrate output from its Voisey’s Bay project will be “reduced proportionally to the period of mine stoppage.” The halt at Voisey’s Bay will also affect an expansion project to convert the mine to underground operations, it said last week.In Malaysia, the iron ore producer is temporarily halting operations at a key terminal that serves as a conduit to China. The company has maintained its 2020 production and sales targets.Vale also announced measures on Tuesday to support its suppliers during the crisis caused by the coronavirus. Those included advancing payments to small and medium-sized companies in Brazil before the invoices are due for services and materials delivered. The producer said it expects that more than 160 million reais ($31.5 million) will be disbursed with this moves.Vale said it will provide financial support to construction companies and workers at projects being halted by the company.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Vale S.A (VALE) states that it will continue to operate Malaysia-based Teluk Rubiah Maritime Terminal, which shipped 23.7 Mt of iron ore in 2019.
Brazilian miner Vale SA said on Thursday it may continue to operate the Teluk Rubiah maritime terminal in Malaysia, after running a coronavirus risk assessment. "Based on discussions with local and national authorities and agencies, Vale believes it may continue to operate the (terminal)," a company statement said. Vale was in contact with the government and has a contingency plan to keep the terminal operating while safeguarding employees and contractors, it said.
Vale S.A (VALE) considers temporary closure of its Malaysian terminal and distribution center in the wake of the coronavirus outbreak.
(Bloomberg) -- When shares of Brazil’s Vale SA suddenly crashed last year after a deadly dam collapse, Nick Price did what any fund manager might have done for a stock he already owned: He purchased more.It was a profitable trade by traditional measures: The stock gained 24% in the year after the dam failed, outperforming global emerging-market benchmarks—a win for a Fidelity International fund manager with a record of beating his peers.But the story doesn’t end there. That’s because for a growing cohort of investors, stock picking is no longer a straightforward matter of financial risk and reward. As Price was buying, a number of fund managers dedicated to promoting responsible corporate behavior and fighting climate change were dumping Vale even if that meant missing out on any stock gains.“Responsible investing and maximizing value for shareholders don’t overlap as much as we had hoped,” said Duncan Austin, a former partner at London-based Generation Investment Management, the firm co-founded by Al Gore. “Unfortunately, when they clash, most of our business metrics and incentives still nudge investors to favor profit over planet.”Not at the Church of England and Germany's Union Investment though. Within days of the January 2019 collapse of a tailings dam owned by Vale in Brumadinho, Brazil, which resulted in the deaths of 270 people, the Church of England Pensions Board unloaded its shares and Union, which manages 368 billion euros ($407 billion) of assets, sold its holding a few weeks later.The Church of England also partnered with the Council of Ethics of the Swedish National Pension Funds to form the Mining and Tailings Safety Initiative and signed up firms overseeing more than $13.5 trillion to their campaign. The group is compiling a global database on tailings dams, which are earth-filled embankments used to store mining waste, to assess their construction and stability.“We are all in process of internalizing the reality of what happened at Brumadinho,” said Adam Matthews, director of ethics for the Church of England’s pensions board and co-chair of the initiative. “There have been tailings dam collapses over many decades that resulted in loss of life, but for any company that has a Vale-style event now, it would be company-destroying event as we are also much more aware of the impact.”Even before the dam collapse, ESG investors had plenty of reasons to steer clear of Vale; as the world’s biggest producer of iron ore, it’s by definition a large carbon emitter. Justifying a trade on ESG grounds after the event should have been harder still: the environmental (E) toll was huge—the incident unleashed 12 million cubic meters of toxic sludge; the social (S) cost was massive loss of life; and the incident highlighted governance (G) failings at Vale – this was the company’s second fatal disaster since 2015.Just a few years ago, only a select group of money managers and funds used the label ESG, but today assets managed using a broad definition of the ESG approach exceed $30 trillion. With climate change and gender inequality becoming top social concerns, a growing list of firms from Goldman Sachs Group Inc. to BlackRock Inc. are pledging to use their resources to combat such ills.“What worked for fund managers in the old world won’t work in a world where environmental impact is on a par with financial performance,” said Virginie Maisonneuve, Singapore-based former chief investment officer of Eastspring Investments. “ESG portfolios will become the norm over the next decade and the skills you’ll need to analyze potential investments, the kinds of data you’ll use and the way you interact with the companies you’re invested in will evolve dramatically .”Price’s decision to add to his stake raised eyebrows among Fidelity’s own team of ESG experts, who monitor the firm’s ESG practices. Not only did they consider the trade out of step with their ideas of sustainability and good corporate behavior, it also jarred with what Price and fellow emerging markets portfolio manager Grigorios Konstantinidis had told a French pension fund client just a month before: that ESG considerations were key in their investment decisions, according to people familiar with the matter.A spokesman for Fidelity International, which manages $448 billion of assets, said the asset manager “immediately and urgently” engaged with Vale following the dam collapse "to understand the company’s oversight, processes and operating practices” and was satisfied that the miner’s management "had been proactive and were urgently carrying out appropriate remediation measures.” “We take an active ownership approach and strongly believe that fostering change is the most effective and lasting way to positively influence corporate behavior,” the spokesman said. “In order to do this, we always focus on engagement rather than opting out and excluding. This will mean that we will often continue to hold, or even in some cases, increase our stakes in companies that are actively dealing with significant ESG issues and push for change.”Price started at Fidelity in 1998 and now manages more than $9 billion across four funds. Data for the flagship $4.8 billion emerging markets fund show it held a $70 million position in Vale in April 2019, three months after the dam collapse, having not owned the stock in its year-earlier filing. The company spokesman said the fund first built a position in Vale in September 2018 before increasing its holding in the first half of 2019 and ultimately selling in September 2019. The divestment "was not due to ESG factors" and Fidelity continues to hold the stock through its Latin American Fund co-managed by Konstantinidis, the spokesman said.Price was among Fidelity executives that held several calls with Vale officials following the deadly accident to discuss its strategy to deal with the disaster, according to one of the people familiar. “Asset managers can have a bigger net positive effect by holding a group of ESG basket cases and successfully engaging with management to change those companies’ ESG performance than by holding a portfolio only of the virtuous,” said Catherine Howarth, chief executive of responsible investment campaign group ShareAction. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The world’s top metal producers are limiting their operations as governments take steps to contain the coronavirus, dimming the supply outlook.Peru, the world’s second-largest copper miner and third-biggest silver producer, declared a state of emergency for 15 days, closing its borders and ordering a nationwide lockdown to stem the spread of the coronavirus. As a result, Freeport-McMoRan Inc. and Newmont Corp. are curbing their operations in the country.The impact of the pandemic goes far beyond Peru. In Canada, Vale SA said it’s putting its Voisey’s Bay mine under temporary care and maintenance in a move that’s seen trimming the company’s copper output. In Mongolia, Rio Tinto Group’s multi-billion project to develop an underground mine at the Oyu Tolgoi copper-gold site has also been slowed.The global pandemic that has killed more than 7,400 has forced governments to limit the movement of people to contain the coronavirus, disrupting supply chains and economic activity. Companies including metal producers have curbed their operations to critical activities, while cutting non-essential travel of its office employees to protect their workers against the disease. Below are the impact on their operations:Freeport-McMoran said its Cerro Verde mine, which produced 1 billion pounds of copper last year, will be under care and maintenance for 15 days beginning March 16 after the Peruvian government declared a national emergencyNewmont said coronavirus-related government restrictions in Peru will require the company to safely cut down its mining operations at Yanacocha while gold production from leach pads and managing critical safety and environmental activities will continue.Vale said copper concentrate output from its Voisey’s Bay operations in Canada will be “reduced proportionally to the period of mine stoppage.” Production at the site reached 25,000 metric tons last year. The shutdown will also impact an expansion project to convert the mine to underground operations, it said.Vale is also reconsidering the timing of its planned Mozambique coal processing plants stoppage as a result of the outbreak.Pan American Silver said it suspended operations at its four mines in Peru in accordance with government mandates to prevent the spread of the coronavirusRio Tinto Group’s delayed $5.3 billion copper mine project in Mongolia faces a further slowdown due to the impact of restrictions imposed in the nation to respond to the coronavirus outbreak.(Adds Pan American Silver suspending Peru operations in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A Brazilian state environmental authority on Thursday defended granting a license to miner Anglo American PLC to expand an iron ore facility, including a mining waste dam, following a lawsuit by public prosecutors seeking to block the project. Minas Gerais, a major mining state, passed a law instituting new safety measures for miners last year following the collapse of a tailings dam at a Vale SA mine that killed more than 270 people. State public prosecutors contend that Anglo's environmental license for the Minas-Rio facility expansion should be blocked and no further licenses should be granted, at least until three communities downstream from the dam are guaranteed the right to be resettled.
Brazilian state prosecutors filed a lawsuit on Tuesday requesting that miner Anglo American PLC's license to expand a mining dam be suspended, following a fatal mining disaster last year. The state of Minas Gerais passed a law last year commonly called "Sea of Mud, Never Again" to change mining rules following the collapse of a dam at a Vale SA facility that released a torrent of mining waste, killing at least 270 people. Based on that law, Minas Gerais prosecutors are seeking to block the planned expansion in capacity of Anglo's Minas-Rio facility, which includes raising the height of a dam that contains mining tailings.
BRASILIA/RIO DE JANEIRO (Reuters) - An independent investigation requested by Brazilian iron ore miner Vale SA into the causes of the Brumadinho tailings dam disaster that killed 270 people a year ago found the company knew about the problem but failed to deal with it. An executive summary of the report published by Vale on Thursday said the company had had information dating as far back as 2003 that pointed to the fragility of the main B1 dam. The Brumadinho dam burst in January 2019 in Minas Gerais state, unleashing an avalanche of muddy mining waste which killed an estimated 270 people, burying many of them alive.
Brazil's Vale SA on Tuesday posted a sharp output decline and $671 million (518.23 million pounds) in net additional provisions stemming from a deadly dam burst about a year ago, underlining the enduring effects of the incident on the iron ore giant. In a statement, the company reported a 22.4% fall in fourth-quarter iron ore production from the same period last year and a 9.6% drop in quarterly terms. With that, Vale officially lost its position in 2019 as the world's top iron ore producer to Rio Tinto .
The filing of murder charges against the former CEO of Brazilian miner Vale SA and 15 others for a 2019 dam collapse that killed more than 250 people was hailed by victims' families as a major step in bringing those responsible to justice. Federal investigators are yet to identify the cause of the Jan. 25, 2019 collapse of a tailings dam at the Corrego do Feijao iron ore mine dam east of Brumadinho, which released a sea of mud that slammed into Vale's offices and cut through a nearby community, killing 259 people and leaving 11 still missing. "I don't think there are the concrete elements required for homicide charges, precisely because this technical part is missing," Tangerino added.
BHP Group (BHP) reported year-over-year increase in copper and iron ore production during the first half of fiscal 2020 and maintains guidance for fiscal 2020.
Brazilian state prosecutors on Tuesday charged Fabio Schvartsman, the former chief executive of mining giant Vale SA , and 15 other people with homicide for a dam disaster last year that killed more than 250 people, according to the charging document seen by Reuters. In addition to homicide charges, Vale and TUV SUD, the German company responsible for inspecting the dam, were charged with environmental crimes. Of the 16 individuals charged, 11 had worked for Vale and five for TUV SUD, prosecutors said.