Vale Stock Increases as It Seeks Advisors With the Intent to Sell Part of Its Stake in the Metals Industry

Vale stock NYSE:VALE

VALE stock was trading at $14.69 as of 01:37 PM EDT.

After FT claimed the company was considering selling a share in its metals division, Vale (NYSE:VALE) announced Wednesday that it has recruited experts to evaluate “long-term value-unlocking alternatives.” According to FT, Vale (NYSE:VALE) is trying to increase the output of copper and nickel to satisfy the rising demand for the energy transition. As a result, it is in talks to sell a $2.5 billion minority stake in its metals division.

The Vale (NYSE:VALE) asset is being looked at by trading firms in Japan, sovereign wealth funds in the Middle East, and auto manufacturing firms. The first round of bids is due at the beginning of November, according to the report.

Vale (NYSE:VALE) is best known for its iron ore operations, but it also has a sizable base metals business and is the largest nickel miner outside of Asia; the company is reportedly in talks about selling a 10%-15% share in the base metals section, a business that is probably worth at around $25 billion. Early trade saw Vale stock (NYSE:VALE) up 1.5%, while rival global miners BHP and Rio Tinto opened lower as copper and other base metal prices gave up some of their recent gains.

VALE Stock and Future Outlook

As its next earnings announcement approaches, VALE S.A. will want to show strength. On that day, it is anticipated that VALE S.A. will post earnings of $0.79 per share, a decrease of 31.9% from the prior year. Net sales are expected to total $12.44 billion, down 1.88% from the same time last year, according to the Zacks Consensus Estimate for revenue.

For the entire year, according to our Zacks Consensus Estimates, analysts anticipate earnings of $3.11 per share and revenue of $46.61 billion. These sums would represent -42.41% and -15.41%, respectively, changes from the previous year.

Investors should keep track of any recent modifications to analyst forecasts for VALE S.A. These updates often take into account the most recent, cyclical short-term business developments. Positive estimate revisions, therefore, represent analyst optimism over the company’s operations and profitability.

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