Vale S.A. reports Q1 net income of $1.776 bln vs $8.569 bln in Q4; Q1 revs $5.719 bln vs $5.559 bln Capital IQ consensus, which fell $180 mln QoQ
- Adjusted EBITDA was US$ 2.005 bln in 1Q16, 44% higher than in 4Q15 mainly as a result of the improvement in the EBITDA for Ferrous Minerals (US$ 329 mln) and Base Metals (US$ 218 mln). Carajás iron ore production of 32.4 Mt; (iii) Tubarão pellet production of 7.2 Mt; (iv) nickel production of 73,500 t; and (v) copper production of 109,900 t. Adjusted EBITDA for Ferrous Minerals was US$ 1.738 bln in 1Q16, US$ 329 mln higher than the US$ 1.409 bln achieved in 4Q15, mainly as a result of higher realized sales prices (US$ 565 mln) and lower costs6 (US$ 244 mln).
- Copper Outlook: The copper market is expected to remain in surplus in 2016 with no significant production cuts announced during 1Q16 and South American supply steadly increasing with the ramp-up of new projects