Vale, Alcoa: Mining Winners & Losers

NEW YORK (TheStreet) -- Shares of the big three iron-ore extractors surged Thursday after one of Vale's(VALE Quote) top managers made bold statements about economic recovery and further robust demand for raw materials, especially out of China.

Other tailwinds blew mining stocks higher Thursday, not the least of which was stronger-than-expected growth in the U.S. GDP, interpreted wide and far as a signal of a gathering rebound in the world economy. Buoyed though it was by lots of government stimulus, including the cash-for-clunkers program, the GDP figure not only drove U.S. equities higher Thursday but also shares of companies in the so-called emerging markets, including Vale's Brazil.

The company's New York-listed American depositary receipts gained 10.2%, or $2.46, to $26.68. Volume surpassed 43 million ADRs; daily average turnover in the name is about 25 million.

In a conference call to discuss Vale's third quarter earnings, its finance chief, Fabio Barbosa, said, "We have no expectations of a reversal of demand." Other Barbosa soundbites, according to a Reuters report on the conference call:

"The global economic recovery is likely to be sustainable."

"We continue to be extremely confident in the future of our company."

"This has nothing to do with speculative demand; this is the result of actual growth taking place in carbon steel output, combined with a replacement of domestic ore for imported ore."

In the last comment, Barbosa was referring to the opinions of some market observers, who believe speculation and Chinese stockpiling of raw materials have created a kind of false demand for raw materials like copper, iron ore and coal.