VALE: 2Q18 Results Should Be In Line With 1Q18 - CEO

(RTTNews) - Vale's second-quarter financial results are expected to come in line with first quarter's, despite a lower iron ore price, said Fabio Schvartsman, the miner's chairman, in a conference call with analysts.

"We are facing a situation of price reduction in iron ore, which is US$ 8 lower than the first quarter average, which again requires an effort by Vale to offset that," he said. "However, the market remains very stable regarding Carajas' ore premium."

The iron ore produced in Carajas' S11D mine has higher quality than products of other origins, and the market has paid a higher premium for the product. The Brazilian miner expects that this premium should remain high and aims at increasing S11D output throughout the year, blending this higher grade ore with the ore produced in other regions.

In the first quarter, Vale recorded an adjusted EBITDA of US$ 3.97 billion, slightly missing analysts' forecast (US$ 4.06 billion). Net income was US$ 1.59 billion, below the US$ 2.013 billion projection by analysts, while net revenue was $ 8.6 billion, in line with expectations.

According to Schvartsman, some hurdles, such as the unexpected shutdown of the Coleman mine in Canada, occurred in the period and affected the results. However, he believes that even then, they were satisfactory.