Vale's market cap could reach $100 billion, says report

Tuesday, 08 January 2019 00:54:12 (GMT+3)   |   Sao Paulo

Vale’s market cap, currently estimated at BRL 277 billion ($74.6 billion), could reach $100 billion, according to a report from BTG Pactual.

The analysts at BTG Pactual did not provide a specific timeline for the company to reach the expected market cap, but said the company’s stocks will likely rise. The report says Vale continues to dominate the high quality iron ore market and should benefit from the trend of buyers choosing higher quality iron ore.

Vale said in a presentation to investors in 2018 clients were paying higher premiums for higher quality iron ore, with a 62 to 65 Fe content, as opposed to discounts given to 58 to the 62 Fe content commodity.

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