Vale reported that first quarter shipment of platinum group metals reached 86,000 oz - a record in production figures despite volatility in the market.

But the firm also reported losses of $318 million compared with gains of $85 million during the same period last year.

The firm said that "high volatility" of metal prices during the first quarter led to the losses which reached $16 million for platinum, MineWeb reports.

Vale also announced that the budget for its Onca Puma nickel project soared to $2.3 billion due to the change in rate effect, a change in scope and the increases in the cost of materials, equipment and services.

"As these are forward operations, there were no margin calls. However, due to liquidation of some hedge positions, there was a $79 million negative impact in our cash flow," the firm said.

"The high volatility of metals prices during the first quarter of the year resulted in losses with derivatives operations intended to guarantee cash flow of $126 million for copper, $117 million for aluminium, $36 million for nickel and $16 million for platinum," the firm explained.

Source:

Vale sets quarterly production records in iron ore, aluminum, alumina, cobalt, PGM, 25/04/08
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