Brazilian iron ore and pellets producer Samarco has posted a net loss of $1.118 billion for the first quarter of 2026, more than 11 percent less than the net loss of $1.258 billion posted during the equivalent period one year earlier.
The results reflect expenses related to indemnifications paid to victims of the collapse of the Fundão Dam in 2015, for which, operations restarted in 2020.
In Q1 2026, Samarco’s net sales revenues increased by 2 percent from Q1 2025 to $403.6 million, while production costs declined by 29 percent to $203 million, leading to a gross profit reduced by 17 percent to $200.6 million.
A negative financial result of $1.253 billion in Q1 2026, against an also negative result of $1.820 billion in Q1 2025, was the main factor behind the net loss.
According to the company, the negative financial result was mainly due to exchange rate variation on liabilities ($965 million) and the accrual of financial expenses related to reparation obligations ($371 million).
By volume, pellet sales declined by 5 percent to 2.6 million mt, while iron ore fines sales increased fivefold to 600,000 mt.
The average pellet price achieved reached $130.3/mt, 8 percent lower on yearly basis.
Samarco maintains its Phase 3 project, unlocking the final stage of the operational restart, bringing the company back to its full capacity of 30 million mt per year.
