Adjusted earnings before interest, tax, depreciation and amortisation increased 18.2% compared to the previous year, to $US22.7 billion ($A25.2 billion).
Gross operating revenues for the year rose slightly to $48.9 billion on higher sales volumes of base metals, metallurgical coal, and iron ore and pellets, which reached a record 305.6 million tonnes sold compared to the previous year’s total of 303.4Mt.
Asia represented 54.2% of total revenues in 2013, with China alone counting for 38.6%.
Vale attributed the performance to ongoing cost-control efforts, capex discipline and a refocus on the company’s core business pursuits.
The cost of goods sold was down 3.7% over the year to $972 million, while sales, general and administrative costs fell 38.6% to $865 million, while R&D spending came in 44.9% lower at $663 million.
Total capital expenditure excluding R&D and acquisitions was cut by about $2 billion over the year to $14.2 billion, coinciding with the divestment of $6 billion of non-core assets.
Production for the year reflected mostly positive momentum, with copper output up 9.9% versus the previous year at 260,000t and copper production spiking 26.9% to a record of 370,000t on ramped-up operations at the Salobo mine in Brazil.
Salobo was responsible for 18% of the company’s total copper output, having produced 65,000t of copper in 2013 versus 13,000t in 2012.
Coal production also increased 23.7% over the year to 8.8Mt, mostly due to the ramp-up of the Moatize operation in Mozambique and improved performance at the Carborough Downs mine in Queensland.
Iron ore production, however, fell 3% during the year to 299.8Mt, short of the company’s 2013 target of 306.Mt.
This was the result of abnormal rainfalls, licensing challenges at various mines and reduced operational flexibility causing lower production at the Carajas ops in Brazil.
The company, however, flagged progress with plans to grow iron ore production from 2014 to 2016, such as advancements at the Conceicao Itabiritos project, Plant 2 and the CLN 150 program, which includes Pier IV with its first berth in Ponta da Madeira.
