ENP Newswire -
Release date- 01052014 - Vale's results in 1Q14.
Vale delivered a strong operational performance in 1Q14, with iron ore production reaching 71.1 Mt, the best performance for a first quarter since 1Q08 and registering record production for nickel and coal in a first quarter.
In 1Q14 we have seen progress across all our business segments despite the seasonal effects of the beginning of the year and the more challenging pricing environment. In April, Moody's recognized Vale's disciplined approach to project development, capital allocation and cost reduction, and changed Vale's rating outlook from neutral to positive.
In 1Q14 Vale posted an adjusted EBITDA of
As a result of our continued cost cutting efforts, the reduction in costs and expenses, net of depreciation charges, reached
Notwithstanding the strong production for a first quarter of the year in most of our business segments, iron ore sales volumes were below potential as we positioned around 3 Mt of the 71.1 Mt production along the supply chain to support greater flexibility and stronger sales volumes in the coming quarters. In addition to lower volumes, a
Vale's capital expenditures amounted to
Net debt fell by
We achieved solid results in ferrous minerals albeit at lower prices and with seasonal effects
Adjusted EBITDA for the ferrous minerals segment amounted to
Iron ore production, excluding 2.4 Mt related to Samarco's attributable production, reached 71.1 Mt, the best performance for a first quarter since 1Q08, helped by better weather conditions and the start-up of the Conceicao Itabiritos project.
Iron ore and pellet sales volumes reached 67.8 Mt in 1Q14, lower than in the seasonally stronger last quarter of the year, but 4.2% higher than in 1Q13.
The completion of the unloading system at our distribution center in
The average sales price was impacted by the fall of the Platt's iron ore reference price by
Iron ore cash cost was
We successfully ramped up Plant 2 (Additional 40 Mtpy) and advanced the development of
We enhanced Base Metals contribution to the business through consistent cash flow generation
Adjusted EBITDA reached
Sales revenues were
Ramp-up of projects contributed to the increase in Base Metal's adjusted EBITDA:
1. Salobo I reached close to its nominal capacity of 100,000 t,
2. Onca Puma generated
3. VNC nickel production reached 5,600 t in 1Q14 (2,700 t in March alone) and
Looking forward, the ramp-up of ongoing projects reinforces our confidence that the Base Metals segment is set to achieve its EBITDA target of
We made good progress on the logistics solution for Moatize, while facing a short term negative price environment
Our coal business delivered a negative adjusted EBITDA of
Production reached 1.8 Mt, our best first quarter ever, with the positive contribution from the ramp-up of Moatize which was partially off-set by the weak performance of Carborough Downs.
The Nacala Corridor, with
We continue our homework in Fertilizers
Adjusted EBITDA for the fertilizers business increased to
Efforts to cut costs and expenses started to show results, with savings of
2014 will be an important year for us to consolidate our cost cutting efforts, increase efficiency, deliver productivity improvements, and grow our production volume with the completion of seven new projects (
Overall, we remain strongly committed to investing only in world-class assets and will continue to manage our asset portfolio to maximize shareholder value. Our commitment is to streamline our business to generate positive free cash flow in any price scenario.
Tel: 55 21 3814-4360
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