Vale showed better-than-expected earnings and significant cost reductions, despite lower revenues. Vale mitigated a major risk by resolving the Samarco accident legal provisions, enhancing its investment appeal. The company's valuation is highly attractive, trading at just 3.7x EBITDA, with a potential upside of 35% if it returns to 5x EBITDA.
The settlement between the two miners and the Brazilian government is the result of years of litigation after the dam collapse that killed 19 people and polluted more than 400 miles of river.
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An agreement by Vale , BHP and their joint venture Samarco to pay 170 billion reais ($29.85 billion) in compensation for a deadly dam collapse in Brazil could end more than a hundred lawsuits against the mining companies in the South American country and possibly limit legal action abroad, three sources close to the matter said.
Vale's 3Q24 report showed increased production but lower prices. Net revenue expected at $9.7 billion, with potential for strong 4Q24 sales. The increase in production was the largest since 2018, helped by seasonality. However, freight costs and lower ore prices are expected to squeeze margins. Despite this, the company trades at just 3.5x EBITDA, which seems like a great bargain given its robu...
IAT Community: Theron Vale Unveils Groundbreaking Platform for Investors IAT Community: Theron Vale Unveils Groundbreaking Platform for Investors
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