Brazil miner and iron ore producer Vale posted a $2.1 billion net loss in Q3, attributed to low iron ore prices and to the weakening of the BRL currency over the USD, the company said on Thursday.
The company went from a $1.6 billion net profit in Q2 to a $2.1 billion net loss in Q3. According to Vale, its net loss rose 47.3 percent, year-on-year, from $1.4 billion.
Vale’s net revenue in Q3 declined 28.2 percent, year-on-year, to $6.5 billion, while adjusted EBITDA fell 37.6 percent in the same period to $1.8 billion. Adjusted EBITDA margin declined to 28.8 percent from 33.1 percent a year ago.
Vale said C1 cash cost FOB port per metric ton for iron ore fines ex-royalties reached US$12.70/mt in Q3, down from $15.80/mt in Q215. It said the cost is “the lowest in the iron ore industry,” and was “driven by the ongoing cost reduction initiatives and the ramp-up of both the N4WS and N5S extension mines and of some of the new Itabirites projects.”