Vale sees extraordinary dividends as unlikely amid market uncertainty
SAO PAULO/RIO DE JANEIRO – Vale is unlikely to pay extraordinary dividends this year, the firm's CFO Marcelo Bacci said on Friday, after the Brazilian miner reported a 20% slump in third-quarter core profit, hit by lower iron ore prices and elevated fuel and freight costs.
Citing geopolitical uncertainty, the executive said Vale prefers to "retain a bit more cash and have a lower level of indebtedness," while also viewing share buybacks as attractive given what he described as inexpensive share prices.
CEO Gustavo Pimenta told analysts that Vale is fully covered on its fourth-quarter freight needs, with over 80% of its 2027 freight requirements already secured.
Around 10% of global seaborne iron ore supply, or 160 million metric tons, is effectively losing money and could be adjusted or shut down, Pimenta said.
About 5 million tons of Vale's third-party supply and own production at risk of going offline, the CEO added.
Vale is on track to deliver 2026 production guidance across its portfolio, sees capital expenditure and copper all-in costs ending 2026 near the lower end of guidance ranges.
Vale does not foresee major M&A alternatives at the moment, but will monitor for opportunities that may become relatively inexpensive, an executive said.
CFO said that 67% of expected 2027 bunker fuel consumption is already hedged.
