Brazilian miner Vale reported a sharply wider fourth-quarter net loss, attributing the deterioration to a major write-down on nickel assets in Canada and the effect of a tax-related write-off. The company recorded a $3.8 billion loss for the October-to-December period, compared with a $694 million loss in the same quarter of 2024.
The company disclosed a $3.5 billion impairment tied to Vale Base Metals' nickel operations in Canada, saying the charge was "triggered by a downward revision in long-term nickel price assumptions based on market estimates." In addition, Vale reported a $2.8 billion impact related to the write-off of deferred tax assets held by subsidiaries.
Those non-recurring items were the primary drivers of the quarter's headline loss. Analysts polled by LSEG had been expecting a $2.7 billion profit for the quarter, a figure that contrasts sharply with Vale's reported result.
On an operational and revenue basis, Vale posted improvements. Net revenue for the quarter was $11.1 billion, up 9% year-on-year and close to the $11.0 billion analysts had anticipated. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21% to $4.6 billion, in line with market expectations.
When excluding non-recurring items and other effects, Vale said adjusted EBITDA reached $4.8 billion for the quarter.
The company also noted that its 2025 iron ore production reached the highest annual level since 2018, a development it reported last month.
Summary of key figures
- Net loss (Oct-Dec): $3.8 billion, versus a $694 million loss in the same quarter of 2024.
- Nickel asset impairment: $3.5 billion on Vale Base Metals’ Canadian operations.
- Deferred tax asset write-off: $2.8 billion impact.
- Net revenue: $11.1 billion, up 9% and nearly matching the $11.0 billion analysts expected.
- Adjusted EBITDA: $4.6 billion, up 21% and meeting expectations; $4.8 billion excluding non-recurring items and other effects.
Vale's latest quarterly statement presents a mix of underlying operational improvement and material one-off charges. Revenue and adjusted EBITDA show expansion versus the prior year, while the impairment and tax-related write-off were decisive in producing the wide net loss. The company’s results therefore illustrate the separation between recurring operating performance and the influence of significant non-recurring accounting items.
This report will be of particular interest to market participants tracking the mining and metals sectors, especially those focused on nickel and iron ore production and pricing assumptions.