Vale's Q3 Profit Plummets 15% Amid Dam Collapse Contingencies and Sluggish Ore Prices

Vale, one of the world's largest iron ore producers, reported that its third-quarter net profit fell by 15% compared to the previous year. This decline was attributed to decreased prices of raw materials used in steelmaking and provisions related to the collapse of the Mariana dam. For the quarter ending in September, Vale announced a net profit of $2.41 billion, significantly exceeding analysts' forecasts of $1.65 billion. The company also reported that its net revenue decreased by 10% from the previous year to $9.55 billion, aligning closely with analysts' expectations of $9.44 billion. The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which measures core profit, dropped by 18% year-over-year to $3.62 billion, largely meeting analysts' predictions of $3.61 billion. In its earnings report, Vale stated it has set aside an additional $956 million in provisions related to the fatal collapse of an iron ore mine dam in 2015 near the city of Mariana, Brazil, which was a joint venture with BHP known as Samarco.