Analysts expect Vale to pay large dividends after Samarco restart

Monday, 04 January 2021 21:06:07 (GMT+3)   |   Sao Paulo
       

Market analysts at BTG Pactual expect Brazilian miner and iron ore producer Vale to pay “big” dividends this year.

The analysts' confidence that Vale will better reward shareholders in 2021 follows the recent restart of Samarco, a Brazilian pellet producer owned by Vale and BHP Billiton. Samarco halted operations in November 2015, following a deadly iron ore waste dam burst in Mariana, Brazil, which killed 19 people. Samarco resumed activities in mid-December 2020.

BTG Pactual estimated Vale could pay as much as $10 billion in dividends to shareholders. The analysts said Samarco’s halt cost about $600 million to Vale in 2020 alone.

The BTG Pactual analysts said the restart of Samarco’s activities is a good “upside” for Vale in terms of cash flow.


Most Recent Related Articles

New details reported for Samarco’s first iron ore pellet shipment

Vale to report strong results in 2021 despite limited output

Minas Gerais state expects Vale to pay $5.2 billion to settle Brumadinho disaster

Vale-owned Port of Ponta da Madeira ships 191 million mt of iron ore and other products

Gerdau experiments with natural gas-fueled truck at its Varzea do Lopes iron ore mine