On Friday, we reported on Vale SA (ADR) (NYSE:VALE), and the fact that their stock had fallen over 4% at the time of writing. This was because of a horrific dam break in Brazil which sent contaminants into one of the large river regions.
Earlier today, it was reported that BHP Billiton Limited would be facing legal action from Brazil over this matter, and apparently Vale SA will see some lawsuits heading their way as well.
It appears that the government will be suing both BHP and Vale for a total of around $5.2 billion. If this wasn’t enough bad news for the company, it was also announced today that their CEO Murilo Ferreira would be resigning from his position as Petroleo Brasileiro SA Petrobras chairman. Although no official reason was given for the resignation, it can be assumed it is related to this latest disaster.
The stock is down 5.18% or $0.18 after the negative news, hitting $3.38 per share. About 13.30 million shares traded hands. VALE has declined 55.93% since April 27, 2015 and is downtrending. It has underperformed by 55.03% the S&P500.
Vale S.A. is a metals and mining company. The company has a market cap of $16.65 billion. The Firm is also a producer of iron ore and iron ore pellets, and nickel. It currently has negative earnings. The Firm also produces manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum group metals (PGMs), gold, silver, cobalt, potash, phosphates and other fertilizer nutrients.