Brazilian mining company Vale has reported a 36% drop in net profits in Q1, which it blamed on currency losses and the falling price of iron ore. Net profit was $1.59bn compared with $2.49bn in the same period the previous year, with currency fluctuations and low interest rates costing the company $185m. Low iron ore prices hurt the bottom line as well, as prices fell to $66 per tonne from $75 per tonne last year. The Australian dollar is down by more than 10% against the US dollar, while the yen has fallen about 5% against the greenback.
Brazilian mining company Vale has reported a 36% drop in net profits in Q1, which it blamed on currency losses and the falling price of iron ore. Net profit was $1.59bn compared with $2.49bn in the same period the previous year, with currency fluctuations and low interest rates costing the company $185m. Low iron ore prices hurt the bottom line as well, as prices fell to $66 per tonne from $75 per tonne last year. Vale also moved forward with its plan to reduce investment and focus on improving the return for investors by decreasing investments to $890m over Q1.