Vale S.A. reported a net loss of $694 million for the fourth quarter of 2024, which missed market expectations and reversed a profit from the prior year. This loss was primarily attributed to impairments taken on some of the company's Canadian base metals assets.
In response to the financial results, Vale also announced a reduction in its planned capital expenditures (CapEx) for the upcoming year. This adjustment reflects a disciplined approach to capital allocation amidst challenging market conditions.
Despite the quarterly loss, Vale's Board of Directors approved a $1.4 billion distribution in interest on capital, scheduled for payment in September 2025, implying an annualized yield of 7%. Additionally, the company authorized the potential use of derivative instruments for share buybacks, signaling a continued commitment to shareholder returns and flexible cash flow management.
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