Brazilian miner Vale SA on Wednesday reported that its third quarter net profit nearly doubled, as the company boosted iron ore production and inventories following a deadly dam disaster in January 2019.
The $2.9 billion net profit in the three months through September compared with $1.6 billion in the year-ago period, although it fell short of a Refinitiv estimate of $3.6 billion.
Results were driven by a 26% increase in realized prices for iron ore and 20% higher iron ore sales volumes in the quarter, Vale said.
The world’s second largest producer of the key steelmaking ingredient earlier this month reported a 31% recovery in iron ore output compared to the second quarter. It reached its best result in two years – 88.7 million metric tons – as a number of mines that were halted after the Brumadinho dam collapse ramped up production or came online.
Vale posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 6.1 billion, up from $4.6 billion in the year-ago period.