Update shared on05 Sep 2025
Fair value Decreased 1.36%Vale’s fair value estimate saw a negligible reduction, as consensus revenue growth and discount rate projections remained largely unchanged, resulting in only a minor decrease in the analyst price target from R$67.03 to R$66.11.
What's in the News
- Vale and BHP offered $1.4B to settle a UK class action lawsuit related to the Mariana dam disaster, but claimants’ lawyers are demanding about $3B (Financial Times).
- Vale updated that renegotiations on railway concession contracts (Carajás and Vitória a Minas Railways) with Brazilian authorities did not reach consensus, but existing extended contracts remain valid until 2057, and Vale affirmed compliance and commitment to ongoing obligations.
- Vale faces a new BRL 2 billion lawsuit filed by the Brazilian Federal Attorney General's Office regarding alleged irregular mining at the Tamandua Mine in Minas Gerais; Vale has not yet been formally summoned and will respond appropriately.
- Mark Cutifani is set to step down as Chairman of Vale Base Metals Limited (VBM) effective July 31, 2025, with Gustavo Pimenta appointed as his successor starting August 1, 2025.
- Vale held multiple board meetings recently, including agenda items on internal regulations and board member transitions.
Valuation Changes
Summary of Valuation Changes for Vale
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from R$67.03 to R$66.11.
- The Consensus Revenue Growth forecasts for Vale has fallen slightly from 1.3% per annum to 1.3% per annum.
- The Discount Rate for Vale remained effectively unchanged, moving only marginally from 20.08% to 20.31%.
Disclaimer
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