Brazil-based iron ore producer Vale has reported a net loss of $694m in the fourth quarter of 2024 (Q4 2024), primarily attributed to impairments on base metals assets in Canada.
The company recorded a $1.4bn impairment loss related to its operation in the Thompson Nickel Belt and a $540m impairment on the Voisey’s Bay mine extension.
Excluding these impairments and one-offs, Vale’s net profit for the quarter would have been $872m, which is still a 64% drop year-on-year.
Despite this setback, Vale has approved shareholder remuneration totalling $1.98bn, to be paid in March 2025, which corresponds to an annualised dividend yield of 10.4%.
Additionally, the company has extended its share buyback programme by 18 months, allowing for the repurchase of up to 120 million shares.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter was $3.79bn, a 41% decrease from the same period last year. Net revenue for the quarter was reported at $10.1bn, a decrease of 22%.
Despite a nearly 5% decline in quarterly iron ore output compared with the previous year, Vale achieved its highest annual production since 2018. This production strategy is focused on prioritising higher-margin products.
Vale CEO Gustavo Pimenta said: “We are pleased to report a strong operational and financial performance in 2024, underscored by the highest iron ore production since 2018 and record copper production at Salobo. Our disciplined approach to cost and operational efficiency has driven significant improvements, with our C1 at $18.8/t (per tonne) in Q4, the lowest level since 2022.
“Our robust and flexible portfolio, disciplined capital allocation approach and evolving performance culture will enable us to deliver long-term value to all our stakeholders. We are enhancing our institutional relationships and ensuring that we leave a positive impact on society and the environment.”
Vale revised its projected capital expenditures for the current year, reducing the forecast from approximately $6.5bn to around $5.9bn. This adjustment is mainly due to lower planned investments in growth and energy-transition metals.
Earlier this week, Vale signed a $138m (A$216.32m) development agreement with Cyclone Metals for the development of the Iron Bear iron ore project in Canada.
