Vale (VALE3) publishes its results this Thursday; see what to expect, according to 8 analysts – Money Times

Vale reported higher than expected iron ore production for the period between July and September 2022 (Image: Vale)

A Valley (VALE3) is one of the strengths of the results of the third quarter this week. THE mining company will publish its quarterly figures this Thursday (27), after market close.

After releasing better than expected iron ore production data for July-September 2022, analysts are confident the company is on track to deliver its tipswhich forecasts between 310 and 320 million tons of iron ore produced by the end of the year.

Vale’s production and sales report shows production of 89.7 million metric tons in the third quarter, an increase of 21% compared to the volume recorded in the previous quarter and an increase of 1.1% compared to compared to the volume recorded during the same period of the previous year last year.

What does the preview say about the results?

A Valley (VALE3) appears to be on track to meet the iron ore production target for 2022, according to the Bank of America (BofA). In the cumulative result of the year, Vale produced 227 million tons of steel ingredients.

In the evaluation of XP investmentsthe recovery of the base metals segment indicates an important turning point for a division which, in recent quarters, has struggled to deliver good figures.

A Financial Eleven takes a similar view in stating that the performance of base metals demonstrates “a change in momentum” for the unit. Like BofA, the institution sees the division closest to completing the tips of iron ore production.

Despite some good surprises, analysts believe that lower prices in the iron-ore in the quarter is expected to put pressure on Vale’s results.

Ilan Arbetman, Analyst Activate investments, has a reading that revenue should arrive in line with expectations. On the other hand, the dynamics of Delivery fees shouldn’t change much from the second quarter.

“They will not be as high as at the beginning of the conflict [Rússia-Ucrânia]but above average,” he says.

Another point to consider is the decrease pricewith an impact coming from a lower average iron ore price.

“We are talking about a quarter with a lower average iron ore price. And we also see smaller prices. And those are Vale’s strengths, awards and products,” says Gabriela Joubert, chief analyst at Inter Research.

Joubert points out that Vale’s second quarter results showed a “particularity”. The company was selling inferior products, while the market valued these products better.

It’s worth paying attention to see if it’s not a one-time event,” says the analyst.

O to harvest expects Vale to generate quarterly net sales of $10.1 billion, in addition to EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.2 billion, a 42% margin.

According to the estimates of Agora InvestmentsAdjusted EBITDA is expected to reach $4.3 billion, a quarterly decline of 22%.

Ágora also forecasts Vale’s C1 (mine to port) costs at $21.5/tonne, compared to $24.20 in the second quarter, positively impacted by higher fixed cost and foreign exchange dilution. Total costs are expected to fall to $48/tonne from $52 in the prior quarter.

At Great Investmentsthe results will be lower in annual comparison.

“Cost dynamics with a slowdown in freight should help the company report improved Ebitda margin in the quarterly comparison, however, this effect will not fully offset a top line hotter in the year-over-year comparison,” the brokerage assesses.

Genial forecasts revenue of $10.2 billion for Vale, with pressure on Ebitda margin and net margin. Brokerage analysts also see the company further away from net profit in the third quarter of last year.

The magazine Luiza (MGLU3) is gone? Expensive or cheap? With a decline of more than 30% in the year, there are some notable factors that may impact the stock and competitors going forward. to access in this link More details.

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