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Vale sees extraordinary dividends as unlikely amid market uncertainty

By Reuters News

SAO PAULO/RIO DE JANEIRO, Oct 30 (Reuters) - Vale VALE3.SA is unlikely to pay extraordinary dividends this year, the firm's CFO Marcelo Bacci said on Friday, after the Brazilian miner reported a 20% slump in third-quarter core profit, hit by lower iron ore prices and elevated fuel and freight costs.

Citing geopolitical uncertainty, the executive said Vale prefers to "retain a bit more cash and have a lower level of indebtedness," while also viewing share buybacks as attractive given what he described as inexpensive share prices.

  • CEO Gustavo Pimenta told analysts that Vale is fully covered on its fourth-quarter freight needs, with over 80% of its 2027 freight requirements already secured

  • Around 10% of global seaborne iron ore supply, or 160 million metric tons, is effectively losing money and could be adjusted or shut down, Pimenta said

  • About 5 million tons of Vale's third-party supply and own production at risk of going offline, the CEO added

  • Vale is on track to deliver 2026 production guidance across its portfolio, sees capital expenditure and copper all-in costs ending 2026 near the lower end of guidance ranges

  • Vale does not foresee major M&A alternatives at the moment, but will monitor for opportunities that may become relatively inexpensive, an executive said

  • CFO said that 67% of expected 2027 bunker fuel consumption is already hedged

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