Vale’s coal business made a loss of US$102 million in 2Q15, an improvement on the US$128 million loss in the previous quarter, the company said in its latest earnings report.
Lower costs, which hit the company to the tune of US$18 million, were offset by improved FOB costs at its Mozambique operations and good operational performance at Carborough Downs in Australia.
CAPEX on the company’s Moatize II project in Mozambique was US$172 million, bringing the project to 93% physical progress. Spending on the Nacala Logistics Corridor totaled US$206 million and brought the project to 89% completion.
Overall, quarterly earnings were US$2.12 billion – 38% higher that the previous quarter – as a result of lower costs and higher sales volumes in most business sectors. Net income was US$1.68 billion compared to a loss of US$3.12 in 1Q15.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/30072015/vale-coal-business-loses-102-million-dollar-loss-in-2q15-2658/