Miner Vale up after Q1 output report, rising iron ore futures
** Shares in Brazilian miner Vale VALE3.SA are up nearly 2%after the company reported its sales and output figures for the first quarter, and as iron ore futures hit over 5-week high earlier in the day
** "Considering how cautious market participants entered this earnings season, we must acknowledge that Vale is reporting a quite satisfactory production report," analysts at BTG Pactual write in a report
** The company on Tuesday evening posted growth of 6.1% in its first-quarter iron ore production from a year earlier, to 70.84 million metric tons, driven by improved output from a key project in northern Brazil, while sales jumped almost 15%
** Itau BBA analysts increased their Q1 EBITDA estimates by $400 mln after the report, to $3.6 bln, attributing the move "mainly due to better-than-expected volumes and realized iron ore prices"
** However, they "anticipate a weaker set of results, impacted by sequentially weaker realized iron ore prices, lower volumes, and higher costs." Valeis expected to release Q1 full financial earnings on April 24
** Analysts have also noted a negative performance of Vale's base metals division; Goldman Sachs says "sales disappointed, especially for nickel", while J.P. Morganwrites "lower sales volumes and realized prices set the tone in the quarter"
** Vale's Sao Paulo-listedshares are rising 2.3% by midday to 62.87 reais ($12) each, among the top gainers in Brazil's equities benchmark Bovespa .BVSP, which is near flat
** Shares from miner CSN Mineracao CMIN3.SA also up, climbing 3.5%as iron ore futures earlier rebounded in Asia to hit a more than five-week high, helped by an improving steel market and anticipation of pre-holiday restocking in China
($1 = 5.2370 reais)
Reporting by Andre Romani; Editing by Sarah Morland
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