Vale Q2 2026 slides: record output lifts EBITDA 19% despite cost pressures

Vale raised 2026 iron-ore cost guidance, expecting C1 cash costs of US$22.50 to US$23.50 per tonne and all-in costs of US$58 to US$62, versus prior US$20 to US$21.50 and US$52 to US$56. It cut 2026 all-in copper to US$0 to US$500 per tonne and nickel to US$10,000 to US$11,500. Vale cited exchange rate and diesel for iron-ore costs and reported strong EBITDA but EPS missed expectations.

Bloomberg reported that some commodity trading firms stopped dealing with private iron ore trader Radiant World over concerns it provided banks with falsified documents. Deutsche Bank and KBC froze some Singapore accounts, while Arab Bank Switzerland stopped new letters of credit and ICBC Standard Bank suspended repo financing, according to people familiar. Rio Tinto and Vale removed Radiant World from approved customer lists. Radiant World denies wrongdoing and says it is well capitalized; annu

Vale reported Q2 net profit fell 35% to US$1.38 billion, below the US$1.85 billion analyst consensus, citing impacts from derivatives and taxes. Revenue rose 19% to US$10.5 billion, helped by the highest Q2 production volume since 2018. Adjusted EBITDA increased 9% to US$3.68 billion, supported by stronger segment sales despite higher freight, currency and other costs.

Brazil · Business Vale Q2 profit fell 35% year-on-year to US$1.37 billion, the Brazilian mining giant reported, as a negative derivatives swing overshadowed a surge in copper and nickel results and a 6.4% rise in net operating revenue. The derivatives hit that erased US$798 million The sharp drop in net income, which landed well below the roughly US$1.84 billion consensus from LSEG analysts, did not reflect operational weakness.

The Hidden Mechanics Behind Mining's Profit Paradox When a company reports revenue growth of nearly 20% in a single quarter, most investors expect profit to follow in the same direction. The reality of large-scale commodity mining is far more complex.

Brazilian miner Vale posted on Thursday a 35% fall in its second-quarter net profit from a year earlier, while lifting the lower end of its copper and nickel 2026 production outlook range and announcing a new share buyback. On the downside, Vale increased its projections for all-in costs and production costs for iron ore this year by 11%, based on the mid-points, due to a stronger Brazilian real and higher oil prices.