Brazilian mining giant Vale (VALE, Financial) announced its first-quarter financial results, revealing a 4% year-over-year drop in net revenue to $8.12 billion, slightly above analysts' expectations of $8.03 billion. Net profit fell 17% to $1.39 billion, missing the anticipated $1.68 billion. The decline was primarily driven by lower iron ore prices.
Vale, one of the world's leading iron ore producers, reported that decreased production costs and the appreciation of the Brazilian real against the US dollar partially offset the impact of falling iron ore prices. The company's adjusted EBITDA for the quarter was $3.12 billion, a 9% decline from the previous year, aligning closely with analysts' estimates of $3.16 billion.
According to Vale's production and sales report, iron ore output was 67.7 million tons, down 4.5% year-over-year, while sales increased by 3.6% to 66.1 million tons. Heavy rainfall affected production in its northern Brazilian mines, which the company anticipated. Vale reaffirmed its 2025 iron ore production target of 325-335 million tons.
During the quarter ending in March, the average realized price for Vale's iron ore fines was $90.80 per ton, a nearly 10% decrease year-over-year and a 2.4% drop from Q4 2024. Meanwhile, copper and nickel production both saw an 11% year-over-year increase.
