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News Breaks | | | | December 20, 2012 | | 19:37 EDT |  | VALE | Vale to take $4.2B pre-tax charge in Q4
Vale S.A. informs that it has concluded the annual assessment of Onça Puma and aluminum assets, which will imply the recognition of an impairment charge before tax of $4.2B, thus affecting our earnings in Q4. The issues with the two furnaces of Onça Puma determined the total stoppage of its ferronickel operations since June. After analyzing the case, Vale decided to rebuild one of the furnaces, at an estimated cost of $188M in 2013, and plans its start up in 4Q13. Given this event and in face of the current market environment for ferronickel, the valuation of Onça Puma determined the need to recognize an impairment charge before tax of $2.848B. The book value of Onça Puma was $3.778B as of September 30. The downward volatility of aluminum prices and the macroeconomic uncertainties about the European economy have contributed to reduce the market value of our 22% stake in Hydro ASA, a Norwegian aluminum producer, to a level below the book value of our investment. Based on Hydro share prices at September 30, we are recognizing an impairment charge before tax of $1.3B, which will impact our 4Q12 net earnings. Reference Link | |
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| May 14, 2013 | | 07:29 EDT |  | VALE | BofA/Merrill to host a conference
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