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Vale Earnings Disappoint as Miners Grapple With Stagflation

  • Cash costs rose 11% from a year ago on pricier logistics, fuel
  • Still, Vale will pay $3 billion to shareholders in September
Molten nickel matte is poured at the Vale Copper Cliff Nickel Smelter in Sudbury, Ontario, Canada.

Molten nickel matte is poured at the Vale Copper Cliff Nickel Smelter in Sudbury, Ontario, Canada.

Photographer: Cole Burston/Bloomberg
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Vale SA struggled more than expected with deteriorating iron ore conditions last quarter, delivering earnings that trailed estimates on rising costs and weaker prices of the steelmaking ingredient.

Adjusted earnings before items came in at $5.25 billion in the second quarter, the Rio de Janeiro-based company reported Thursday. That was well below the record result of a year ago when miners benefited from a post-pandemic commodity boom and also lagged the $6.32 billion average analyst estimate.