Vale reports Q2 iron ore production up 6% y/y

Iron ore production increased 6% y/y driven by a record output for a second quarter at S11D, followed by solid performance at Itabira and Vargem Grande complexes, improving Vale‘s average product portfolio quality. Torto dam received its license to operate, and commissioning is underway. Pellet production increased 5% y/y driven by the higher production at Tubarao plants as a result of higher pellet feed production. Iron ore fines and pellet sales increased 1% y/y as Ponta da Madeira Terminal restored productivity during Q2, after restrictions due to heavy rains affected shipments and sales in Q1. Vale expects a lower productionto-sales gap in Q3 with the sale of the inventories from the first semester, depending on market conditions. Copper production increased 41% y/y and 18% q/q largely attributed to the successful ramping up of Salobo III plant and the improved performance of the Sossego operation. Copper sales increased 43% y/y and 18% q/q as result of higher production volumes. Nickel production increased 8% y/y largely attributed to better operational performance in Sudbury and Indonesia. Q/q, production was impacted by planned maintenance shutdowns, particularly at the Long Harbour and Clydach refineries. Nickel sales increased 3% y/y driven by improved production, remaining relatively stable q/q due to inventory buildup in Q1.