NEW YORK (
) -- Although both
found their 2009 earnings hurt by the lower 2009 iron-ore benchmark price, credit research firm CreditSights has affirmed a favorable outlook for the iron-ore giants.
Vale, of course, has also suffered an ongoing strike at its Canadian nickel mine. Still, despite this -- and some of the gloom that surrounded the iron ore producers' results in 2009 -- CreditSights remains upbeat about both Vale and Rio Tinto, partly because of their strong iron-ore volume performance. This performance occurred amid a robust recovery of Chinese demand in 2009 and as other regions began purchasing again during the second-half of the year.
CreditSights, in affirming the overweight recommendations for both Rio Tinto and Vale, also notes a favorable 2010 iron-ore outlook, given that the major producers expect to run near full capacity. Meanwhile, it's anticipated that benchmark prices will increase significantly, as elevated spot prices prevail in today's market.
Vale American Depository Receipts (ADRs) have inched down 1.7% to $26.70 and Rio Tinto ADRs have fallen 2.5% to $201.20.
ADRs of mining giant
have also taken a tumble, down 1.9% to $71.30.
ADRs have fallen even further, down 3.9% to $17.90.
-- Reported by Andrea Tse in New York
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