Vale is a global iron miner with activities across the globe, though it has a concentrated presence in Brazil. Along with Rio Tinto and BHP Billiton, it’s one of the world’s largest iron miners (some years, #1). Technically, it is a privately owned company, however, many of the larger shareholders (Brazilian banks and pension funds) are heavily influenced by the Brazilian government, which also has “golden shares” and special veto rights on some company activities. Though state influence is far less than Petrobras or Braskem for instance, it has played a role, and influenced decisions such as CEO appointments.
In this article, we’re going to look at the company from a fundamental level, compare it to peers, and consider the macro outlook. I already have a position in the company in my taxable income portfolio, and am considering increasing the position. This exploration is part of my own due diligence.