CSN Mineração, a Brazilian iron-ore miner, experienced a 4.1% increase in its shares due to a favorable analyst report on its fourth-quarter outlook. The shares reached 6.82 reais ($1.41), marking a 61% increase from the end of last year. This rise in shares comes after Brazil's stock market was closed on November 15th for the Proclamation of the Republic holiday.
During the third quarter, CSN Mineração reported record output and sales, leading to an upward revision of its production guidance for the full year. Jefferies analysts attributed the company's strong third-quarter earnings to increased production and higher prices for the steel precursor.
With the guidance for the fourth quarter and the continued strength of iron ore prices, analysts believe CSN Mineração is poised for an even stronger performance. Jefferies emphasized that the company's long-term investment case relies on its ability to achieve organic growth, maintain high price realization, keep unit costs low, and provide substantial and regular capital returns, even in the face of falling ore prices.