Vale Copper Price Jumps 56% as Ore Falls

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BRAZIL · MINING

Vale profit fell 53% to US$1.255 billion in the third quarter of 2026, the Brazilian mining giant said on Thursday 29 October. Vale is one of the world’s largest iron ore producers, and it earned US$2.685 billion a year earlier.

Its New York shares closed at a 12-month low that same day. For US investors, the report shows how cheaper ore and a strong real can squeeze a miner whose sales still grew.

In Plain English

Vale digs iron ore, which steelmakers turn into steel, and it also mines copper and nickel for wiring and batteries. Its ADRs, or American depositary receipts, are the shares US investors trade in New York.

EBITDA is profit before interest, taxes and depreciation, and it shows what the mines earn from operations. Free cash flow is the cash left after the company pays to run and build its mines.

What Happened to Vale Profit

Vale’s net income attributable to shareholders fell to US$1.255 billion, from US$2.685 billion in the third quarter of 2025. It was also 9% below the US$1.375 billion earned in the second quarter of 2026.

Earnings per share dropped to US$0.29 from US$0.63 a year earlier. Over the first nine months of 2026, profit was US$4.523 billion, down 27%.

Net operating revenue rose 2% to US$10.599 billion, helped by copper and nickel. Core earnings fell more sharply, with proforma EBITDA, which strips out one-off items, down 20% to US$3.508 billion.

The average price Vale received for its iron ore fines, the small-grain ore, was US$85.1 a tonne. That is 10% lower than a year earlier.

Costs rose as the real strengthened, with the cash cost of a tonne of ore up 12% to US$23.1. The all-in cost, with freight, rose 21% to US$60.4.

Iron Ore Output Falls While Copper Rises

Iron ore production came to 88.4 million tonnes, down 6% from a year earlier, because less rock was available at the Serra Norte mine. Sales still edged up 0.3%, and pellet output rose 7% to 8.6 million tonnes.

Copper was the bright spot, as the price Vale realised jumped 56% from a year earlier to US$15,314 a tonne. Nickel sales rose 16.1%, while copper output fell 6% to 85.5 thousand tonnes during a planned mill rebuild at the Sossego mine.

Vale booked a US$322 million adjustment on its Samarco provision, for the joint venture repairing a 2015 dam failure. A currency effect also added US$276 million in income tax.

Dividends and the Balance Sheet

Vale paid US$1.676 billion in dividends and interest on capital to shareholders in the quarter, up from US$1.485 billion a year earlier. Payments in the first nine months of 2026 reached US$4.421 billion.

The results release does not mention a new dividend. Free cash flow was US$2.23 billion, helped by a one-time cash release tied to tax incentives, while recurring free cash flow was US$1.373 billion.

Expanded net debt, which counts leases and dam-related obligations, fell to US$16.413 billion from US$16.677 billion in the second quarter. Capital spending was US$1.25 billion, and Vale expects to finish the year at the low end of its US$5.4 billion to US$5.7 billion plan.

Why It Matters

Vale is one of Brazil’s best-known companies, and iron ore is among the country’s main exports. Its shares trade on the Ibovespa, the main São Paulo stock index.

On Thursday 29 October Vale’s New York shares closed at US$11.18, the lowest close in at least 12 months. That is 37.3% below the April peak.

What It Means for You

Investors who own Vale ADRs or Brazil funds should note that revenue grew while Vale profit fell. Vale itself points to lower ore prices and higher costs, with iron ore sales up slightly.

Vale kept its 2026 targets, with iron ore at the low end of 335 million to 345 million tonnes. Copper and nickel, used in power grids and electric vehicles, are expected in the upper half of their ranges.

What Is Not Known

Vale has not announced its next dividend, so the size and date of the next payout are open. How long iron ore prices stay near US$85 a tonne, and what that means for Vale profit, is also unknown.

It is not yet clear how the Samarco provision will move in coming quarters. The effect of a strong real on Vale profit also depends on the exchange rate.

Connected Coverage

Our Vale 12-month low report covers the share price and the iron ore market on the day of the results. The Brazil stocks report of 29 October shows how the Ibovespa closed.

The Brazil Morning Call for Friday 30 October lists the day’s market events. The Latin America Power Map ranks Brazil’s political and economic weight.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

How Much Was Vale Profit in the Third Quarter?

Vale profit was US$1.255 billion attributable to shareholders, 53% less than a year earlier. Revenue was US$10.599 billion, up 2%.

Why Did Vale Profit Fall?

Lower iron ore prices and higher costs pushed down Vale profit, with the realised ore price falling 10% to US$85.1 a tonne. A Samarco provision adjustment and a tax effect also weighed.

Did Vale announce a new dividend?

The third-quarter release does not mention a new dividend. Vale did pay US$1.676 billion in dividends and interest on capital during the quarter.

Sources: Vale S.A., 3Q26 Quarterly Results (financial report), 29 October 2026; Vale S.A., investor relations: announcements, results, presentations and reports, consulted 30 October 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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