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VALE - VALE S.A. ADS (old RIO )

post #1 of 109
Thread Starter 
Vale is the largest diversified mining company in the Americas and the second largest company in the global metals & mining industry, with an average market capitalization of approximately US$ 70.5 billion in 1Q09. Vale shares are traded on the NYSE (VALE and VALE.P), on the Euronext Paris (Vale3 and Vale5), on the BOVESPA (Vale3 and Vale5) and on Latibex (XVALP and XVALO). The ADR depositary agent is JP Morgan Chase. Vale is the world's largest producer and exporter of iron ore and pellets, the world's second largest producer of nickel and one of the leading producers of manganese and ferro-alloys. It also produces coal, copper, bauxite, kaolin, potash, alumina and aluminum. Vale is the largest logistics service provider in Brazil, where it owns and operates a series of railroads and ports.

chart.ashx?t=vale&ta=1&p=d&s=l
post #2 of 109
Thread Starter 
UPDATE 1-Vale agrees iron ore increase with China Steel
Reuters - February 25, 2008 9:01 AM ET


Related Quotes
Symbol Last Chg
RIO Trade 35.751 +0.121
Real time quote.

SAO PAULO, Feb 25 (Reuters) - Brazilian mining giant Vale VALE5.SA(RIO) said Monday it secured an iron ore price increase for 2008 ranging from 65 to 71 percent with Taiwan's China Steel Corp 2002.TW, matching a slew of price agreements with other Asian customers.

The 65 percent price increase, valid from April 1, is for iron ore fines from Vale's Southern System. Like other Vale customers, China Steel agreed to pay 71 percent more than previously for higher-quality ore from Vale's massive Carajas mine in the Amazon jungle.

Vale is the world's biggest iron ore producer and exporter.

China Steel Corp will pay $1.2517 per dry tonne Fe unit for Carajas ore and $1.1898 per dry tonne Fe unit for Southern System fines, the same as Vale's other Asian clients in China, South Korea and Japan.

One of Vale's largest clients, ArcelorMittal ISPA.AS -- the world's largest steelmaker -- is yet to settle the benchmark price with the Brazilian company.

European steelmakers such as Germany's ThyssenKrupp TKAG.DE and Italy's Ilva had agreed to pay 65 and 66 percent more respectively for Southern System fines and for Carajas iron ore.

The premium on Carajas fines for Asian clients effectively removes a discount that Vale once granted to regional customers to make up for the longer shipping distances.

Australian miners Rio Tinto (RIO)RIO.AX and BHP Billiton BHP.AXBLT.L are yet to conclude a similar deal with their Asian customers, but they are still seeking a greater price increase.

(Reporting by Todd Benson and Andrei Khalip; Editing by John Picinich)
post #3 of 109
I believe they report earnings at the end of this week (Feb 29). Should be interesting to see how this plays out.
post #4 of 109
Thread Starter 
Still going, and earnings soon.

After Hours: $ 36.25 0.04 (+0.11%)
post #5 of 109
Popping off today. Guess a lot of people waiting for these earnings...
post #6 of 109
nice run before earnings
post #7 of 109
Earnings should be blowout wish i got in sooner
post #8 of 109
Thread Starter 
Quote:
Originally Posted by semipro11 View Post
Earnings should be blowout wish i got in sooner
, yea me too, like at $25-27. woulda been nice.
post #9 of 109
Thread Starter 
Well, well took a big hit this am on this news:

S&P DOWNGRADES OPINION ON ADSS OF VALE TO SELL FROM HOLD, ON VALUATION
S&P Marketscope - February 29, 2008 10:02 AM ET


Related Quotes
Symbol Last Chg
RIO Trade 35.75 -1.47
Real time quote.

RIO posts Q4 earnings per ADS of $0.52 vs. $0.33 on an 11.6% sales increase, shy of our $0.56 estimate on unusually high SG&A expenses. However, we raise our '08 earnings per ADS estimate to $2.75 from $2.60, since we think that sharply higher iron ore prices will offset a likely drop in nickel. On our new estimate, we increase our 12-month target price to $34 from $29. We think RIO's long-term earnings prospects are attractive on a secular rise in base metals demand. But trading above our new target price following a recent rise, we reduce our opinion to sell.

But also look at the 2008 earnings estimates....
post #10 of 109
here's a monster outta PERU
Compania de Minas Buenaventura S.A.A. engages in the exploration, mining, and processing of gold, silver, and various metals in Peru and internationally. It primarily produces refined gold, and various metal concentrates, including silver-lead concentrate, silver-gold concentrate, zinc concentrate, and lead-gold-copper concentrate. The company operates six mines comprising Julcani, Recuperada, Uchucchacua, Orcopampa, Antapite, and Ishihuinca; and holds controlling interests in two mining companies, which operate the Shila-Paula and Colquijirca mines. Compania de Minas Buenaventura also owns an electric power transmission company; an engineering services consulting company; and interests in various mining companies. It sells its metal concentrates to smelters, traders, and banks principally in Peru, Europe, North America, Asia, Oceania, and South America. The company was founded in 1953 and is headquartered in Lima, Peru.




RIO conference call details
RIO Comp Vale Do Rio Conference Call Summary: this cycle is longer and stronger; stock falls as co describes issues regarding Xstrata merger talks (35.84 -1.38) -Update-

On conf call, co says the market is still very strong, with particular strength coming from China, Japan, Middle East. In 2007, the co set records in almost every category and 2008 should be better. Co notes that it is the world's largest supplier to China, the most dynamic market. Also, RIO says it's the only true global player as it's the only company on all five continents... This cycle is longer and stronger than cycles in the past. Co forecasts global GDP growth of 3.6% in 2008 vs 4.7% in 2007 and 4.2% in 2009.... Co says market should remain strong, but there are uncertainties on the supply side. The co says it has 30 major projects expected over the next few years. Co has great opportunity for organic growth. In the last 5 years, co had 20 large projects and in 2008 the co expects seven... On the M&A front, co says organic growth is the priority, but co has been buying a lot over the past 5-6 years. RIO is always looking at opportunities. Co is bullish on copper and met coal markets. Co is very bullish on nickel market. Co says it has a huge pipeline of projects... Xstrata -- co is still interested. RIO says a deal would strengthen its position. Stock is falling on its discussion of Xstrata. Co says there are some issues related to this offer, but co is trying to overcome these issues. (Note, RIO and Xstrata have been discussing a possible merger).... Regarding issues around the merger, co says it does not expect to jeopardize investment grade status even if co makes a large acquisition. Even for an Xstrata deal, co does not want to jeopardize its investment grade status. Co says Xstrata is a tough negotiator. Co thinks it can overcome major issues between the two. Co stresses there is no interference from the government despite press reports to the contrary. Co will not do anything to jeopardize its growth strategy.
post #11 of 109
Thread Starter 
Also take into consideration that 85-90% of all stocks are just following the market today. Gapped down bounced a little and we will see what the rest of the day has in store.

Right now bounced off $35 and following along with the market...


Interesting to see just who owns RIO's Stocks: http://www.cnbc.com/id/15837275?q=rio

All big players......hummmm
post #12 of 109
I'm surprised how little it has moved up the upside recently.

It's actually behind most of its competitors in terms up recent move up even though there has been a wave of good news.

Any thoughts?
post #13 of 109
dissapoitment after BHP's offer ... anyway, long term all these mining comp looking good.
Alcoa's made a nice move today, aluminum close to 3000 per ton ! Watch Alcoa's Q results monday.
post #14 of 109
Disappointment after BHP's offer?

What are you referring too?

RIO= CVRD. This is a Brazilian mineral company.

You're thinking Riot Tinto (RTP)
post #15 of 109
BHP offer for Rio. Market expected that deal to go thru ... ripple effect for Alcoa, Vale, Hydro and of cource Rio and BHP. All of them rising nicely now. money will move into Aluminum , will be an expensive comodity. I've added to MyAlcoa's position today, some analist are very bullish on Monday 1St Q report ! We sahll see.
post #16 of 109
RIO= CVRD. This is a Brazilian mineral company. Different company.

You're thinking Riot Tinto (RTP)

The ripple effect can't be a solid theory given the performance difference between BHP/RTP/AA/RIO
post #17 of 109
Everyone earnings next Friday!
post #18 of 109
rio good

huge 65-71% price increase for its iron ore and more recently concluded negotiations with some clients in Italy and the Middle East for an even bigger jump in pellets prices of 87%, which reflects high demand for the material.
post #19 of 109
entered calls today 42.5 june

4 consecutive down days

going for the continuation of the 4 month uptrend

wedgish formation short term

risky still-


nice penny piolet program and good volume

129 billion market cap
post #20 of 109
I like this for a play going into next week after all of the punishment....Approaching the 40 support line Im in as of now
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