We expect Vale to report an improvement in its Q3 2016 results, driven by the success of the company's cost reduction initiatives. Vale reported a significant reduction in its cash costs and expenses in Q2 ( as shown below) and we expect a similar performance in the third quarter as well, with cost rationalization continuing to be an important focus area for the company. In addition, higher prices of iron ore (which accounts for roughly two-thirds of Vale's revenue) will support the company's earnings, though lower copper and nickel prices will negatively impact profits.
- Vale's Full Year 2015 Pre-Earnings Report
- Vale's Q4 2015 Earnings Report: Decline In Iron Ore Prices Negatively Impacts Results
- How Important Is China To Vale's Iron Ore Sales?
- What Is China's Share Of Vale's Overall Revenue?
- What Is Vale's Revenue & EBITDA Breakdown?
- What Is Vale's Fundamental Value Based On 2015 Results?
- By What Percentage Has Vale's Revenue & EBITDA Declined Over The Last 5 Years?
- By What Percentage Can Vale's Revenue & EBITDA Increase Over The Next 3 Years?
- How Has Vale's Revenue Composition Changed Over The Last 5 Years?
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email email@example.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Vale