Vale's action is cheap but risk reduction is a gradual process, says BTG

 Vale's action is reasonable but risk reduction may be a gradual process, says BTG

Risk reduction takes place on three pillars: cash return, recovery of production volumes and price reduction

BTG Pactual said during a report that although Vale's shares are 'undeniably cheap by any measure', the bank believes that reducing the danger on the stock are going to be a gradual process supported three pillars.

The first, consistent with the bank, is that the cash return. "We expect Vale to pay high dividends this year, yielding approximately 13%," he says. The second is that the gradual recovery of production volumes and therefore the reduction of costs. and eventually, the third one is predicated on improving, within the end of the day, the perception of the company's environmental commitment.

The bank commented on Vale's production report released yesterday. consistent with the bank, Vale reported strong production levels, especially in nickel and copper by a good margin (20% and 9%, respectively), which should also support short-term profits.

"We still forecast a deficit within the transoceanic ore market in 2021, and this report does little to vary that view," he says.

Regarding the agreement with the govt of Minas Gerais regarding Brumadinho, where an accident in 2019 caused the death of 272 people, the bank believes that the conditions are ripe for a reassessment of the action.

plano de saúde unimed fortaleza
hapvida fortaleza
plano de saúde hapvida
plano de saúde amil empresarial
Plano de Saúde Bradesco no Nordeste