Vale exceeds expectations in second quarter

Vale reported a net profit of $1.68 billion Thursday, thanks to higher outputs and cost cuts in its global business, the company reported to investors.

Net profits for the company's second quarter in 2015 were up 17.3 per cent compared to the same period last year.

Vale cut the cost of producing iron ore – the biggest part of its business – from $18.3 per tonne in the first quarter of 2015, to $15.8 per tonne in the second quarter.

But the company's base metals business, which includes its Sudbury operations, decreased in the second quarter due to lower nickel prices.
Base metals sales reached $1.6 billion in the second quarter, around $62 million less than the first quarter.

Vale produced 67,100 tonnes of nickel in the second quarter of 2015, which was in line with the first quarter.

Production of copper and gold reached 104,900 tonnes and 100,000 ounces, respectively, in the second quarter.