Vale is bleeding at the moment (see below) and this quarter will have at least $half a billion provision for the dam spill.
IMO, now is the time for our Resources & Trade Ministers to have a pow-wow with the Brazilains about cutting back
production volumes. By the figures below, Vale should be willing to cut a production cap deal and few shareholders
in BHP, RIO or FMG would object.
The Chinese are doing us slowly like a Yum-Cha and we are too bigheaded to realise that we are dealing with a comand economy; not with the so called "Free Market"
"Net loss was US$ 2.117 billion in 3Q15 against a net income of US$ 1.675 billion in 2Q15. The US$ 3.792 billion decrease in income was mostly driven by the effect on financial results of the depreciation of the BRL against the USD of 28% in 3Q15 vs. the appreciation of the BRL against the USD of 3% in 2Q15. Underlying earnings were negative in US$ 961 million in 3Q15, against US$ 973 million in 2Q15.
Gross debt totaled US$ 28.675 billion as of September 30th, 2015,"
(source Vale Q3-2015 report)
Tald to your Pollie and ask him/her to make representation to the Ministers of Trade & Resources to moderate production to
match market demand. Otherwise, we're letting others trash our precious resources.
MM
