Vale SA (ADR) (NYSE:VALE) admitted today that there were toxic elements in a river that has been flooded with mine waste, after a dam broke open in their joint venture with Samarco Mineração SA.
It is believed that 12 people have been killed when mud (now thought to be toxic) flooded towns in Brazil. The stock responded to this news today.
The stock is down 4.42% or $0.16 after the negative news, hitting $3.57 per share. About 15.48M shares traded hands. VALE has declined 52.90% since April 24, 2015 and is downtrending. It has underperformed by 51.54% the S&P500.
Out of 9 analysts covering Vale S.A. (NYSE:VALE), 4 rate it “Buy”, 0 “Sell”, while 5 “Hold”. This means 44% are positive. $10 is the highest target while $3 is the lowest. The $6.06 average target is 69.75% above today’s ($3.57) stock price. Vale S.A. was the topic in 16 analyst reports since August 3, 2015 according to StockzIntelligence Inc. Cowen & Co maintained the stock on November 20 with “Market Perform” rating. Stifel Nicolaus maintained the shares of VALE in a report on October 20 with “Buy” rating. Finally, Vetr upgraded the stock to “Strong-Buy” rating in a September 2 report.
Vale S.A. is a metals and mining company. The company has a market cap of $18.21 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.