Vale maintains its full-year production guidance unchanged, but faces a comprehensive upward revision in costs due to exchange rates and oil prices.

智通财经2026/07/31 14:06

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Brazilian mining giant Vale announced it will maintain its full-year 2026 production targets unchanged, with iron ore output guidance at 335 to 345 million tonnes, copper at 360 to 380 thousand tonnes, and nickel at 185 to 200 thousand tonnes.
There has been a significant adjustment on the cost side. The iron ore C1 cash cost guidance has been raised from the previous $20-$21.5 per tonne to $22.5-$23.5 per tonne, mainly due to currency fluctuations, diesel prices, inventory turnover, and other external factors.
The total cost guidance for iron ore has been simultaneously increased to $58-$62 per tonne, up from the previous $52-$56, with the adjustment reasons including oil prices, exchange rates, iron ore price and premium changes, as well as production interruptions.
The cost outlook for copper and nickel has improved. Copper's total cost guidance was significantly cut from $1,000-$1,500 per tonne to $0-$500 per tonne, and nickel's from $12,000-$13,500 per tonne down to $10,000-$11,500 per tonne. Both benefit from increased by-product revenue and cost optimisation, with copper also additionally supported by the strengthening gold price.
Rising iron ore costs mean margins will be squeezed in the same price environment, while declining copper and nickel costs enhance the profitability resilience of related businesses. The overall guidance adjustment reflects a trend of diverging cost structures across different segments.

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Vale maintains its full-year production guidance unchanged, but faces a comprehensive upward revision in costs due to exchange rates and oil prices.

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