Brazil: Vale's iron ore production rises by 4% y-o-y in CY'23

Brazilian miner, Vale, recorded iron ore production at 321.15 million tonnes (mnt) in CY23 (the calendar year 2023), up by 4.3% as against 307.79 mnt in CY22. The production was above the previous 315 mnt guidance as a result of: (i) continued initiatives to improve asset reliability at S11D; (ii) solid performance at Itabira and Vargem Grande complexes; and (iii) higher third-party purchases.

However, iron ore sales also decreased by 1.5% to 256.78 mnt in CY23 from 260.66 mnt in CY22.

Vale's pellets production recorded at 36.45 mnt in CY23, up 13.5% y-o-y as against 32.11 mnt in CY22 supported by higher pellet feed production at Brucutu.

Q4CY23 results

• Vale recorded iron ore production at 89.39 mnt in Q4CY23 (October-December 2023), up by 3.7% q-o-q as against 86.23 mnt in Q3CY23 (July-September 2023). The iron ore production increased by 10.6% y-o-y compared to 80.85 mnt in Q4CY22.
  
  
• Vale recorded iron ore sales at 77.88 mnt in Q4CY23 (October-December 2023), significantly improved by 11.7% q-o-q as against 69.71 mnt in Q3CY23 (July-September 2023). However, iron ore sales decreased by 4% y-o-y compared to 81.20 mnt in Q4CY22.
  
  
• Pellets output was recorded at 9.85 mnt in Q4CY23 increased by 7.4% q-o-q compared to Q3CY23. Output rose by 19% y-o-y as against 8.26 mnt in Q4CY22.
  
  

CY24 guidance

• Vale's iron ore production guidance remained intact at 310-320 mnt for CY24.
  
  
• Pellets production guidance for this year has been set at 38-42 mnt for CY24.