Vale: Iron Ore Production Surge in Q3 CY19 Amid Resumption at Brucutu mines

Vale- world's largest iron ore producer witnessed rise in iron ore and pellet production for third quarter CY19 amid resumption at Brucutu mines and partial resumption of the dry processing operations at the Vargem Grande Complex. The total iron ore and pellet production for the quarter recorded at 97.8 MnT, up 34% as against 73.2 MnT in Q2 CY19.

Also, production for the quarter was favored amid improvement in operational performance in the Northern System, which was impacted by unusual weather-related conditions in 2Q19.

On yearly basis, production fell 18% against 118.85 MnT in Q3 CY18.

Vale pellet production up 23% Q-o-Q

The miner recorded rise in total pellet output for the quarter Q3 CY19 at 11.1 MnT, up 23% compared to 9.1 MnT in Q2 CY19. The rise in production is attributed to higher productivity from pellet plants after maintenance period in Q2 CY19. On yearly basis, production recorded 20% drop as against 13.9 MnT in Q3 CY18.

Vale iron ore and pellet sales up 20% in Q3 CY19

Vale total iron ore and pellet sales picked up 20% to 85.1 MnT as compared to 70.7 MnT a quarter ago due to operational improvements at Ponta da Madeira port, which were impacted by abnormal rains in 2Q19.

Vale recorded iron ore sales at 74 MnT for Q3 CY19, up 19% on quarterly basis as compared to 61.9 MnT in Q2 CY19. The rise in sales is due to operation resumption at mines.

The pellet sales witnessed 25% increase Q-o-Q to 11.1 MnT against 8.84 MnT in last quarter. On yearly basis, pellet sales fell 22% compared to 14.25 MnT in Q3 CY18.

Sales volume contributed 86% of High grade product

Vale's share of premium products (pellets, Carajas, BRBF, pellet feed and sinter feed low alumina) for Q3CY19 marked at 86% stable Q-o-Q.

In Q3 CY19, Vale's product portfolio Fe content reached 64.7%, alumina 1.2% and silica 3.1%.

CY19 Guidance:
--Vale kept the iron ore sales guidance intact towards midpoint of the range 307 MnT- 332 MnT

--Vale reviewed its pellet production guidance to 43 MnT against 45 MnT set previously .

-- Vale expects about an additional production of 30 MnT for 2020 from halted operations related to Brumadinho tragedy. For 2021, the miner expects to add remaining about 25 MnT.

Vale- Iron Ore Production for Q3 CY19 v/s Q2 CY19

Fig in MnT
Source: Company Reports