Vale reported record 2016 iron-ore production, set to increase this year as the world's biggest iron-ore, S11D, mine ramps up
Photo by: Vale
VANCOUVER (miningweekly.com) – Brazil’s Vale, the world’s largest iron-ore producer, has swung back into the black with a net profit of $3.98-billion for 2016, boosted by higher iron-ore prices and record output.
This represents a significant swing from a loss of $12.13-billion in 2015.
For the three months ended December 31, Vale reported a profit of $525-million, compared with a loss of $8.57-billion in the fourth quarter of 2015. Adjusted earnings before interest, taxes, depreciation and amortisation more than tripled to $4.77-billion for the fourth quarter of 2016, up from $1.39-billion a year earlier, and the highest since the fourth quarter if 2013.
“With strong production and the recovery in prices, it was forecast we'd have a strong quarter and finish the year strongly. And that's exactly what happened," Vale CFO Luciano Siani said in a video posted on the company's website.
Meanwhile, Vale's net operating revenue was $29.36-billion in 2016, 14.7% higher than the $25.61-billion registered in 2015.
As at year-end, net debt stood at $25-billion, with the company reporting a cash balance of $4.28-billion.
Vale delivered a strong full-year operational performance, setting several new production records, with iron-ore output of 348.8-million tons.
The Carajás operation produced 148.1-million tons of iron-ore, 311 000 t of nickel, 453 100 t of copper, 5 799 t of cobalt, and contained gold as a by-product in the copper and nickel concentrates of 483 000 oz.
Coal production at its Moatize mine reached 5.5-million tons.