Brazilian mining giant Vale reported a 17% drop in first-quarter net profit, totaling US$1.39 billion, falling short of analysts’ forecast of US$1.68 billion. The decline was mainly driven by a 16% drop in iron ore reference prices, which offset gains from lower production costs and a stronger Brazilian real.

Despite the weaker environment, Vale managed to reduce its iron ore cash production cost (C1) by 11% to US$21 per ton. Adjusted EBITDA fell 9% to US$3.12 billion, closely aligning with market expectations.

CEO Gustavo Pimenta described the quarter as a consistent start to the year, emphasizing progress on cost management. Production volumes dropped 4.5% due to heavy rainfall, but the company boosted sales with supply from inventories.