Brazilian iron ore producer Samarco remains in net loss, despite limited operational gains
Brazilian iron ore and pellets producer Samarco has posted a net loss of $1.118 bilion for the first quarter of 2026, more than 11
percent less than the net loss of $1.258 billion posted during the equivalent period one year earlier.
The results reflect expenses related to indemnifications paid to victims of the collapse of the Fundao Dam in 2015, for which.
operations restarted in 2020.
In Q1 2026, Samarco's net sales revenues increased by 2 percent from Q1 2025 to $403.6 million, while production costs declinedby 29 percent to $203 million, leading to a gross profit reduced by 17 percent to $200.6 million.
Anegative financial result of $1.253 bilion in Q1 2026, against an also negative result of $1.820 billion in Q1 2025, was the mainfactor behind the net loss.
According to the company, the negative financial resut was mainly due to exchange rate variation on liabilities ($965 milion) andthe accrual of financial expenses related to reparation obligations ($371 million).
By volume, pellet sales declined by 5 percentto 2.6 million mt, while iron ore fines sales increased fivefold to 600,000 mt.
The average pellet price achieved reached $130.3/mt, 8 percent lower on yearly basis.
Samarco maintains its Phase 3 project, unlocking the final stage of the operational restart, bringing the company back to its fullcapacity of 30 million mt per year.
From: Steel Orbis
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