Vale output goals lag forecasts, sets emission targets
Brazilian miner Vale on Wednesday unveiled iron-ore production targets that lagged previous forecasts while underlining its efforts to pay reparations related to a dam disaster and lower carbon emissions in the coming years.
Vale's new forecast output of 300-million to 305-million tonnes of iron-ore this year, disclosed as part of its investor day presentation, falls short of a previous 2020 target of at least 310-million.
Some analysts said they were also disappointed with forecast production for 2021 in the range of 315-million to 335-million tonnes, which Vale's head of ferrous metals, Marcello Spinelli, said took into account expected rainy conditions, maintenance and other operational risks.
"We think the 2021 guidance of 315-million tonnes to 335-million tonnes is particularly frustrating, especially considering management has recently stated the starting point for 2021 is 318-million," analysts at Bradesco BBI investment bank said in a research note.
Vale shares, which have surged 57% this year, were down 2.1% in afternoon trading on the Sao Paulo stock exchange.