The Ups and Downs of September Quarterly Reporting Season

摘要

Vale reported a 3.3% yoy increase in production to 95.2Mt for the September Quarter of 2017. Production fromthe high grade Northern System lifted 16.4% yoy with the ramp up of the 90Mtpa Carajás S11D. Production in theSouthern and Southeastern Systems decreased by an annualised equivalent of 19Mtpa reducing the output oflesser value high silica ore. The re-alignment of production increased product grade to 64.1% Fe from 63.8% Fein the previous quarter taking advantage of the quality price spread between 62% Fe and 65% Fe which widenedfrom around 25% to 35% over the quarter. Full year 2017 guidance is at the lower end of the 360Mt-380Mt rangewith a long term target of 400Mtpa.