Vale's Q3 Iron Ore Production Hits Record High

According to a Reuters report cited by Mining.com, Brazilian miner Vale reported on the 21st that its Q3 iron ore production reached the highest quarterly level since 2018, and stated that the output of its three major businesses is expected to hit the upper end of the 2025 production targets.

In Q3, Vale, one of the world's largest iron ore developers, produced 94.4 million mt, up 3.8% YoY, marking the highest quarterly output since Q4 2018.

Vale attributed the performance growth to a new quarterly production record at the S11D iron ore mine in northern Brazil during Q3, along with increased output from other projects.

The company forecasts its 2025 iron ore production to be between 325 million mt and 335 million mt. In the first nine months, its cumulative iron ore production reached 245.7 million mt.

Vale's production and sales report stated that the iron ore, copper, and nickel businesses are "progressing toward the upper end of their 2025 production targets."

In Q3, the company's iron ore sales, including pellets, totaled 86 million mt, up 5.1% YoY, while the average selling price of iron ore fines rose 4.2% to $94.4/mt.

Citigroup analysts, led by Alexander Hacking, described Vale's performance as "impressive" and said it should provide a "slight boost" to its share price.

They noted, "There are no issues with meeting production targets, and these results indicate the company can at least achieve the median level of its guidance."

Vale's Q3 copper production was 90,800 mt, up 5.7% YoY, driven by stable operations at the Salobo project in Brazil and increased output of copper concentrates in Canada.

During the same period, nickel production was approximately 46,800 mt, down 0.6% YoY, mainly because output declines at the Copper Cliff smelter offset record production growth at the Long Harbour smelter, both located in Canada.

Vale is expected to release its full Q2 earnings on October 30.