Brazilian mining giant Vale has announced a US$1.98 billion shareholder payout for March 2025, boasting an annualised dividend yield of 10.4 per cent, despite reporting a net loss of US$694 million in the fourth quarter of 2024 (Q4 2024).
The loss was primarily driven by impairment losses on its base metals assets in Canada.
The company recorded a US$1.4 billion impairment loss related to its operation in the Thompson Nickel Belt and a US$540 million impairment on the Voisey’s Bay mine extension.
Excluding these one-off items, Vale’s net profit for the quarter would have been US$872 million, still a 64 per cent decrease year-on-year.
Despite the reported net loss, Vale’s leadership expressed confidence in the company’s overall performance and future prospects.
In addition to the shareholder payout, Vale has extended its share buyback program by 18 months, allowing the repurchase of up to 120 million shares.
Vale’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q4 2024 was US$3.79 billion, a 41 per cent decrease compared to the same period last year.
Net revenue for the quarter was reported at US$10.1 billion, a decrease of 22 per cent.
However, the company highlighted its strong operational performance, achieving its highest annual iron ore production since 2018, despite a nearly 5 per cent decline in quarterly iron ore output compared with the previous year.
The company said this production strategy is focused on prioritising higher-margin products.
Vale CEO Gustavo Pimenta commented on the company’s performance, stating: “We are pleased to report a strong operational and financial performance in 2024, underscored by the highest iron ore production since 2018 and record copper production at Salobo.
“Our disciplined approach to cost and operational efficiency has driven significant improvements, with our C1 at US$18.8/t (per tonne) in Q4, the lowest level since 2022.”
Pimenta added: “Our robust and flexible portfolio, disciplined capital allocation approach and evolving performance culture will enable us to deliver long-term value to all our stakeholders.
“We are enhancing our institutional relationships and ensuring that we leave a positive impact on society and the environment.”
Vale has revised its projected capital expenditures for the current year, reducing the forecast from approximately US$6.5 billion to around US$5.9 billion.
This adjustment is mainly due to lower planned investments in growth and energy-transition metals.
Earlier this week, Vale signed a US$138 million ($216.32 million) development agreement with Cyclone Metals for the development of the Iron Bear iron ore project in Canada.
