- Vale is scheduled to increase its iron ore production to 400mtpy by the end of 2022, after being reduced due to the 2019 Brumadinho dam disaster.
- Full production capacity should result in an up-valuation of 33%, based on 2020 iron ore prices.
- Potential commodities supercycle bodes well for iron ore pricing and the broader commodity markets.
- Broader macroeconomic instability could result in decreased demand for commodities such as iron ore and affect Vale's share price negatively.
- Investors need to closely monitor global developments, and particularly China, as it is the largest importer of iron ore in the world.
For further details see:
Vale S.A.: Increased Production Capacity Warrants 33% Upside Potential