- Quarterly Ebitda of $3.02 billion beats $2.7 billion estimate
- Iron ore has risen 45% this year as China demand recovers
Vale SA shares rose to the highest in two years after the world’s biggest iron-ore miner beat analysts’ earnings estimates on lower costs, stronger prices and record production.
Shares advanced for a sixth day, gaining 2.1 percent at 10:18 a.m. in Sao Paulo, after the Rio de Janeiro-based company posted adjusted earnings before interest, taxes, depreciation and amortization of $3.02 billion for the third quarter, exceeding the $2.7 billion average of nine dollar-based estimates compiled by Bloomberg.
Pummeled by the biggest commodities downturn in a generation, Vale is once again generating cash after cutting costs and selling assets as prices recover. Chief Executive Officer Murilo Ferreira is betting on new, high-grade deposits in northern Brazil to offset his transport cost disadvantage with Australian mines that are much closer to Chinese steel mills.
Reporting a decline in net debt to $26 billion and a cash...