Vale’s (NYSE:VALE) Nickel Shipments declined from around 225,000 tons in 2019 to 211,000 tons in 2020. Trefis expects the metric to rise to around 222,000 tons in 2021 and 228,000 tons in 2022.
While the decline in 2020 was partly due to Covid-19, Vale has also reduced its nickel output versus historical levels, as it plans to raise production when prices realizations become more favorable.
We think Vale stock is meaningfully undervalued. We value Vale at about $20 per share, about 70% ahead of the market price.
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