Brazilian mining company Vale SA reported an 18.9 percent reduction in net income from the same period the previous year, mostly due to a significant drop in iron ore prices and rising expenses.
One of the biggest iron ore miners in the world, Vale, reported net profits of USD 6.15 billion.
Vale is the most recent international miner to be hurt by rising inflation-related expenses and falling commodity prices. The business said that price hikes in gasoline and freight costs, among other things, had an impact on its iron ore, nickel, and copper operations.
While Vale's net operating revenue decreased by 32% from a year earlier, its costs increased by 8% during the same time, which negatively impacted its overall performance.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) as adjusted were $5.25 billion, a 53.1 percent YoY decrease.
Vale realized USD 113.3 per tonne of iron ore in the three months that ended on June 30, a decrease from the USD 184.8 per tonne in the same period of 2021.
The business said that owing to foreign exchange impacts, the anticipated costs for the 2019 Brumadinho dam tragedy, which claimed hundreds of lives, decreased by USD 1 billion to USD 7.2 billion.
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