12.99 0.00 (0.00%)
After hours: 5:42PM EDT
|Bid||12.85 x 800|
|Ask||0.00 x 2200|
|Day's range||12.87 - 13.19|
|52-week range||7.86 - 15.24|
|PE ratio (TTM)||17.32|
|Forward dividend & yield||0.28 (1.99%)|
|1y target est||15.07|
Vale SA reached agreements to sell future cobalt production in what may set a benchmark for automakers, battery makers and tech companies looking to secure long-term supplies of the metal. A $690 million ...
Joint venture partners Vale SA and BHP Billiton Ltd. have already secured four court extensions to negotiate the settlement of a multibillion-dollar claim stemming from a fatal tailings dam disaster in 2015. The press departments of Vale, BHP and Samarco declined to comment. The settlement would bring together two separate claims: 155 billion reais ($41 billion) sought by federal prosecutors and 20 billion reais sought by the southeastern state of Minas Gerais in a civil suit.
Almost in line with peers Rio Tinto (RIO) and BHP Billiton (BHP), Vale (VALE) had returned 13% year-to-date as of June 7. Lately, Brazilian stock is being pressured due to economic and political issues facing the country. The nationwide truckers’ strike against high diesel prices has hit stocks. On June 7, the Brazilian real hit a two-year low, which led to a widespread sell-off. The iShares MSCI Brazil ETF (EWZ) is on track to lose 20% so far this year amid these concerns.
The number of analysts recommending “buy” for Vale (VALE) has fallen in the last few months. Currently, 56% of analysts covering the stock recommend “buy,” compared with 65% at the end of December 2017. Approximately 39% of analysts recommend “hold,” and 5% recommend “sell.” Vale’s target price implies a 3% upside based on its current market price.
Vale (VALE) likely to stream $700-million cobalt output for gathering finances in order to transform the company's Voisey's Bay mine.
Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") (TSX:WPM)(NYSE:WPM) is pleased to announce that it has agreed to acquire from a subsidiary of Vale S.A. ("Vale") (NYSE:VALE) an amount of finished cobalt equal to a fixed percentage of cobalt production from the Voisey's Bay mine (the "Cobalt Stream"). Wheaton will pay Vale upfront cash consideration of US$390 million upon closing of the Cobalt Stream. In addition, Wheaton will make ongoing payments of 18% of the Metal Bulletin market price ("cobalt spot price") per cobalt pound delivered.
The world’s biggest nickel producer is betting C$2.2 billion ($1.7 billion) that the metal has a bright future amid surging demand for battery commodities. With the Voisey’s Bay nickel complex in Canada getting toward the end of its open-pit life, Vale SA is moving ahead with a transition to underground operations, Newfoundland and Labrador Premier Dwight Ball said in as ceremony on Monday attended by Eduardo Bartolomeo, Vale’s head of base metals. The investment is expected to add at least 15 years to the mine and create 1,700 direct jobs, according to Ball.
Vale SA reached agreements to sell future production of cobalt for $690 million upfront as producers look to capitalize on the battery-commodity boom to raise cash for investments. The deal includes $390 million from Wheaton Precious Metals Corp. and $300 million from Cobalt 27 Capital Corp., the companies said in separate statements Monday. Vale will "sell an aggregate total of 75 percent cobalt stream," with deliveries to begin January 2021.
Vale SA reached an agreement to sell future production of cobalt as battery makers look to shore up supply of the metal amid a nascent electric-vehicle boom, people with knowledge of the matter said. The deal is for about $700 million of cobalt produced at the Voisey’s Bay complex in Canada that predominately churns out nickel, the people said, asking not to be identified because talks are private. Historically, they have tended to be for precious metals like gold and silver, but the boom in cobalt prices has added a new commodity to the mix.
Vale (VALE) remains on track to lower debt with increased free cash flow generation, however, rising cost of sales remains a concern.
The bloom appears to have come off the emerging markets rose. Higher U.S. interest rates, a stronger dollar, rising oil prices, and trade tensions are creating a "stress test" for emerging markets. Foreign investors pulled out an estimated net $12.3 billion in emerging markets in May, according to the Institute of International Finance, with money coming out about evenly between debt and equity markets.
Aggregate financing in China (MCHI), which reflects the total funds provided by a financial system to its nonfinancial sectors and households, stood at ~1.56 trillion yuan in April, beating the estimate of 1.35 trillion yuan and the upwardly revised March figure of 1.33 trillion yuan.
Since China contributes more than 70% of seaborne-traded iron ore, investors should track the country’s demand to gauge the commodity’s outlook. After falling 9.8% YoY (year-over-year) in March, China’s iron ore imports inched up by 0.8% in April to 82.9 million tons. Chinese steel mills opened up in mid-March after winter production curbs were lifted, which may have boosted volumes slightly. However, this rise was not significant—although analysts were expecting volumes to improve sequentially, they fell 3.8%.
In this article, we’ll look at China’s iron ore port inventories and what they suggest for iron ore prices. These inventories reflect the difference between demand and supply. Usually, if iron ore isn’t used up by steel mills, it piles up at ports. Therefore, increasing inventories reflect weak demand, and vice versa.
Since the main seaborne iron ore exporters are from Australia or Brazil (EWZ), it’s imperative for iron ore investors to track these countries’ iron ore exports, which serve as a key supply-side indicator. According to the Pilbara Ports Authority, iron ore exports rose just 0.7% YoY (year-over-year) to ~42.6 million tons in April. Sequentially, imports rose 1.2%. Port Hedland, Australia’s largest iron ore loading port, is used by major miners BHP (BHP), Hancock Prospecting, and Fortescue Metals (FSUGY). Rio Tinto (RIO), on the other hand, uses Port Dampier. ...
Continuing their volatile streak, iron ore prices are now falling after rising in April. Iron ore reached $63.90 per ton on May 28, registering its seventh drop in eight sessions. While prices were supported in April and early May by China’s announcement of a cut in bank reserve requirements, rising inventory concerns eventually pushed them downward.
In this part of our series, we’ll look at copper miners’ first-quarter free cash flows and look at the 2018 cash flow guidance. You can define free cash flows as operating cash flows minus capital expenditure (or capex). It’s a key metric that investors in metal and mining companies should track.
Previously in this series, we looked at copper miners’ first-quarter production and 2018 guidance. When commodity prices fall, high-cost producers become unprofitable much sooner than their peers, which are placed more favorably on the cost curve. It’s, therefore, crucial for commodity producers to have competitive cost structures.
Vale’s CFO, Luciano Siani Pires, said during Vale Day on December 6 that the company deserves a rerating of its valuation. Diversified miners (GNR) Rio Tinto (RIO) and BHP Billiton (BHP) are trading at similar multiples of 6.3x and 6.6x, respectively.
Is a Valuation Rerating in the Cards for Vale Stock? Vale (VALE) announced a new dividend policy on March 29. The dividends are to comprise a minimum of 3s0% adjusted EBITDA, minus sustaining capital expenditure.
Vale (VALE) considerably reduced its net debt in 2017. At the end of 2017, its net debt totaled $18.1 billion, a decline of ~28% year-over-year. The company was guiding for net debt of $15.0 billion–$17.0 billion by the end of 2017. In the latest quarter, the company recorded another reduction of $3.2 billion in net debt to reach $14.9 billion. The debt decline during the quarter was supported by the sale of its fertilizer assets to Mosaic for $3.7 billion.
Is a Valuation Rerating in the Cards for Vale Stock? Vale’s (VALE) base metal (DBB) production, including nickel and copper production, was in line with its decision to lower its footprint by putting non-competitive mines on care and maintenance. Vale’s strategy is to preserve its optionality in nickel in case of higher demand for nickel class I. Nickel production, therefore, reached 58,600 tons in the first quarter, a decline of 18% year-over-year and 25 sequentially.
Is a Valuation Rerating in the Cards for Vale Stock? Severe weather conditions in March led to power plant outages and five flooded production pits. In 2017, Vale’s coal division generated positive adjusted EBITDA for the first time since 2010.
Jun.14 -- Vale SA reached agreements to sell future cobalt production in what may set a benchmark for automakers, battery makers and tech companies looking to secure long-term supplies of the metal. A $690 million upfront payment is one of the largest ever cobalt streaming arrangements and the first large-scale, long-term deal to be signed since expectations of an electric-vehicle revolution triggered a battery commodity boom. Bloomberg's R.T. Watson talks with Bloomberg's Alix Steel about the deal.