|Bid||10.70 x 39400|
|Ask||0.00 x 36900|
|Day's Range||11.62 - 11.94|
|52 Week Range||10.20 - 16.13|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||18.16|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.61|
RIO DE JANEIRO/BRASILIA/SAO PAULO, Sept 17 (Reuters) - Faced with public outrage after its second mining dam collapse in four years killed at least 240 people in Brazil, Vale SA misrepresented what it had done to shut down its riskiest dams, a review of the company's statements shows. Fabio Schvartsman, Vale's then-chief executive, said at a nationally broadcast news conference days after the dam burst in late January that the company had already decommissioned nine "upstream dams" in the wake of a 2015 disaster involving the same type of structure, and planned to dismantle 10 more over the next few years. The company repeated the claim in a statement on its website.
A criminal investigation into the fatal collapse of a dam owned by mining firm Vale SA should be concluded in the coming days, a Brazilian prosecutor said on Tuesday, with charges to follow. "State prosecutors are working with the state police, federal prosecutors and federal police, and we're of the conviction that we'll deliver a solution in the coming days," Antônio Sérgio Tonet, the top prosecutor in the state of Minas Gerais, told journalists. In January, a tailings dam at a Vale-owned mine in Minas Gerais collapsed, unleashing more than 12 million cubic meters of mining waste on the small town of Brumadinho and killing hundreds.
RIO DE JANEIRO/BRASILIA/SAO PAULO (Reuters) - Faced with public outrage after its second mining dam collapse in four years killed at least 240 people in Brazil, Vale SA misrepresented what it had done to shut down its riskiest dams, a review of the company's statements shows. Fabio Schvartsman, Vale's then-chief executive, said at a nationally broadcast news conference days after the dam burst in late January that the company had already decommissioned nine "upstream dams" in the wake of a 2015 disaster involving the same type of structure, and planned to dismantle 10 more over the next few years. The company repeated the claim in a statement on its website.
The Sao Paulo. index rose 1%, with materials stocks pushing up the index the most. Chilean stocks rose about 0.3% and were slated for a seventh straight session of gains. The Mexican peso rose about 0.4% to near a one-month high.
Brazil's development bank BNDES is mulling strategies to sell its stakes in listed companies such as state-controlled oil company Petrobras SA , two sources with knowledge of the matter said on Thursday. As discussions are still ongoing, BNDES may start divestments only next year, the sources added. BNDES, which has nearly 110 billion reais ($27.23 billion) in listed assets, has been considering either a direct sale of shares through its treasury desk or share offerings, the sources said.
Moody's Investors Service ("Moody's") today affirmed Vale S.A. ("Vale")'s Ba1 senior unsecured ratings and the ratings on the debt issues of Vale Overseas Limited, fully and unconditionally guaranteed by Vale S.A. Moody's also affirmed the Ba2 senior unsecured ratings of Vale Canada Ltd. The outlook changed to stable from negative.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Vale S.A. New York, August 29, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Vale S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
CONAKRY/LONDON, Aug 29 (Reuters) - Leading miner BHP is near a deal to divest its stake in Guinea's Nimba iron ore deposit, while three big miners are vying to develop half of the country's Simandou, the largest known untapped iron ore reserve, sources close to the talks said. Guinea has struggled for decades to extract money from its iron ore, which has been left undeveloped because of protracted legal disputes and the cost of infrastructure.
Declining debt levels and focus on improving quality, productivity and lowering costs in the iron ore business will drive Vale's (VALE) growth despite the impact of the Brumadinho disaster.
Brazil's securities regulator CVM said on Monday it has opened up an additional investigation into whether executives of iron ore miner Vale SA breached their fiduciary duties in relation to a January dam collapse which killed nearly 250 people. The investigation is related to an initial administrative probe opened on Jan. 28, when CVM started looking into potential violations of securities laws over the incident. The securities body, which has the power to impose fines and bar executives from working at listed companies in Brazil, added the investigation does not concern environmental issues, which it said other agencies are looking into.
Germany's TÜV SÜD has pulled out of conducting safety assessments of dams after the collapse of a Brazilian dam it had vetted killed almost 250 people in January, the industrial inspection firm's chief executive told Reuters. The collapse of the tailings dam, which was operated by Brazilian mining company Vale SA, flooded the town of Brumadinho with mining waste water only four months after TÜV SÜD had vouched for the safety of the structure. TÜV SÜD's September 2018 safety report had warned against operating heavy equipment on the structure which had been raised from an original height of 18 meters to 86 meters.
The Brazilian real fell about 0.5%, giving back some of Thursday's gains of more than 1% when upbeat trade data from China and a stabilizing yuan lifted risk appetite. The mood was glum again on Friday after a Bloomberg report that Washington was delaying a decision about allowing some trade between U.S. companies and Huawei reminded investors that the prolonged trade rift was far from over. President Donald Trump said on Friday that the United States was continuing trade talks with China but was not going to make a deal for now and would hold off on doing business with Huawei until a deal is in place.
Aug 8 (Reuters) - Latin American currencies broadly firmed against the dollar on Thursday, as surprisingly upbeat trade data from China and hints that Beijing officials will limit losses in the yuan eased growth worries for now. After reeling from worries in the past week about an escalating U.S.-China trade war denting global growth, emerging markets and other risk assets breathed a sigh of relief after trade data showed July exports grew more than expected in China amid U.S. tariff pressure. Signs that the People's Bank of China was stepping in to stabilize the yuan also helped bring some poise to the markets.
The first two quarters of 2019 have been challenging for Vale S.A. (NYSE:VALE). The company posted quarterly losses resulting from the dam burst in January. As a result, Vale stock has been depressed with a failure to breakout above $14 twice in 2019.However, I believe that the second half of 2019 will be better for VALE stock and investors can use the current decline to accumulate the stock.This article will discuss the company and industry-specific factors that will support a possible positive momentum in the second half of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Burden of Write-DownsFor 1Q 2019, Vale reported total write-downs of $4.95 billion. For 2Q 2019, the total write-downs were $2.0 billion. * 10 Generation Z Stocks to Buy Long This translated into quarterly losses for Vale and overshadowed positive industry developments. With nearly $7 billion in write-downs, it is likely that further write-downs will be minimal. This negative factor is therefore discounted in the stock price.I am of the opinion that market attention will now shift to the restart of production, positive industry developments, and deleveraging. Production Restart TriggerVALE had to halt production totaling 93 Metric tons per year (Mtpy) in its first quarter of 2019. The company has already resumed iron ore production of approximately 43 Mtpy.The company further expects resumption of 20 Mtpy production by the end of 2019. The remaining production of 30 Mtpy is likely to be recovered over the next two to three years.The key point here is that total iron ore production for the second half of 2019 will be higher as compared to the first half of 2019. Production growth is likely to sustain in 2020 from the lows of 2019.As sales volume trend higher, EBITDA and free cash flow visibility will improve in the next 12-18 months for Vale stock. Higher Iron Ore Price Effects Vale StockMid- and high-grade iron ore prices have trended to multi-year highs with Chinese port inventory declining to its lowest level since October 2017.Even for Vale, higher EBITDA in 2Q19 as compared to 1Q19 was primarily driven by higher ore prices coupled with higher sales volume. This trend is likely to sustain in the coming quarters.It is also important to note that the company's iron ore sales product mix indicates 86% premium products in 2Q19 as compared to 77% in 2Q18. This would imply margin expansion on a year-on-year basis on the back of a favorable product mix.In addition, stoppage and extraordinary logistics expense related to Brumadinho dam rupture was $5.7/t in 2Q19. These expenses are likely to decline by $1.5/t in 3Q19 and will also support EBITDA margin expansion. Ongoing DeleveragingFor 1Q19, Vale's gross debt had surged to $17.05 billion. In the second quarter, the company was able to reduce gross debt to $15.79 billion.I believe that VALE will continue to deleverage in the second half of 2019. The company's free cash flow from operations was $2.2 billion for 2Q19. I believe that free cash flows will increase in the next two quarters on higher sales volume and price realization (iron ore).Therefore, decline in debt will improve the company's credit metrics and potentially take the stock higher. While Vale pursues deleveraging, 65% of the company's debt is due on or after 2023. Clearly, there is no debt refinancing pressure in the foreseeable future. Risk Factors to VALE Stock Bullish OutlookChina's economic growth is the key trigger for trend in commodity prices. As mentioned earlier, iron ore prices have trended higher as a result of decline in Chinese port inventory.I do believe that China's growth has bottomed out. However, weak growth in the U.S. or Europe can possibly imply even lower GDP growth in China. Therefore, weak economic growth and its impact on commodity price is one key negative trigger that needs to be monitored.One factor that can offset this risk is an expansionary monetary policy in the United States. A weak dollar can send commodity prices surging higher.It is worth noting that commodity, as an asset class, has been an under-performer in the last two decades. It seems unlikely that there is meaningful downside in commodity prices in the coming years. Concluding Words on Vale StockVale stock has been sideways to lower in the last 12-months. In particular, the first half of 2019 has been challenging for the company.However, I am of the opinion that the second half of 2019 will be positive. I expect higher revenue driven by growth in sales volumes. Importantly, write-downs should decline significantly and Vale will continue to deleverage.These developments should translate into higher Vale stock price and current levels are attractive for exposure to the stock.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post Vale Stock to Trend Higher on Positive Industry Tailwinds appeared first on InvestorPlace.