Propaganda vs facts
Some interesting facts about Vale’s cost vs profit.
1 After by-product credits like copper and precious metals, We (Sudbury plants and mines USW 6500) are in the Top 25% of the cheapest costing when you remove the capital costing. Capital costing varies by different company’s decision-making. But to be clean and compare apples to apples, our normal “out of pocket costing” for 2021 puts us at $1.71/lb and that is in the top 25% cheapest to all other companies’ “out of pocket costing”. A far cry from saying we are in the 25% most expensive as mentioned somewhere.
2) Q1 2021, Sudbury is 7% of Vale’s overall revenue and 40% Vale base metal revenue, and NOT those lower numbers we heard.
3) The cost of retiree benefits has lowered by over $8 million from 2014 to 2020, that’s almost a 30% drop in costs. Approximately 5% per yr. so it’s not increasing…it’s
4) The EV battery revolution is only gaining momentum and the demand for nickel will make the lower grade ore more valuable. Turning what was rock into ore. We believe the continued higher pricing will deliver the required capital.
But we’re the greedy ones…..