- Vale's earnings and stock price historically show a similar trend as the ore price.
- The ore price came down from 2021 highs but the company still announced a massive share buyback program.
- In Q1 22 dividends and share buybacks caused net debt to increase by US$3Bn.
- Debt increased to the upper bound of management guidance, implying there is very little in stock for the second payout of the semi-annual dividend in 2022.
- Yet, the track record and attention for shareholders make this company a Hold.
For further details see:
Vale: Buybacks Prioritized, Dividend Under Pressure