Vale hits 6-yr high in iron ore production, all key units near top of guidance

Published 22/10/2025, 11:24
© Reuters.

Investing.com -- Vale reported its strongest quarterly iron ore output since 2018 and said it is on course to meet the upper end of its 2025 production targets across its key divisions.

The Brazilian miner produced 94.4 million metric tons of iron ore in the third quarter, up 3.8% from a year earlier, marking its highest level since the final quarter of 2018. The company attributed the performance to record third-quarter production at its S11D mine in northern Brazil and continued ramp-ups at other sites.

Vale reaffirmed its 2025 iron ore output guidance of 325 million to 335 million tons, noting that its iron ore, copper, and nickel segments “are tracking towards the upper end of the 2025 production guidance ranges.”

Production for the first nine months of the year totaled 245.7 million tons.

Iron ore and pellet sales rose 5.1% to 86 million tons, with average realized prices for fines increasing 4.2% to $94.4 per ton.

Copper output grew 5.7% to 90,800 tons, supported by steady production at the Salobo mine in Brazil and stronger concentrate volumes from operations in Canada.

Nickel production edged down 0.6% to about 46,800 tons, as maintenance work at the Copper Cliff refinery offset record output at the Long Harbour plant, both in Canada.

RBC Capital Markets analyst Marina Calero said Vale "reported a solid set of results with volumes and realised prices ahead of expectations."

"However, with shares outperforming BHP/ RIO ytd and quality/pellet premiums not expected to see a material rebound until 2027/2028, we think the near-term outlook remains neutral and may look to get more constructive should lower prices materialise," they noted. 

Vale will publish its full second-quarter earnings report on October 30.

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