Brazilian miner Vale and CSN Mineração, the iron ore business of Companhia Siderurgica Nacional (CSN), are benefiting from increasing iron ore prices, according to a media report by MoneyTimes.
Iron ore prices reached $208.50/mt this week, the highest level so far, the media report noted. XP Investimentos estimated that for each 5 percent increase in the prices of iron ore, the EBITDA of both companies increase about 7 percent.
CSN owns CSN Mineração, which recently filed for IPO at Brazilian stock exchange, B3. XP Investimentos said that if iron ore prices remain at a rate of $200/mt, CSN Mineração could reach an EBITDA of up to BRL 26.3 billion ($5.03 billion) by end-year 2021. As for Vale, the same estimate would result in an EBITDA of $45.3 billion by the end of 2021.