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NEW YORK (TheStreet) -- Vale (VALE) - Get Vale SA Report stock is slumping by 5.88% to $2.88 in afternoon trading on Thursday, after the company reported weaker-than-expected 2015 fourth quarter iron ore production.

Iron ore output from the Rio de Janeiro-based metals and mining company declined to 85.4 million tons during the quarter, compared to 88.2 million during the previous period.

Production increased from 83 million during the year-ago period, but nonetheless missed estimates for 88.3 million, Bloomberg reports. 

Including third party purchases and its share of the Samarco joint venture with BHP Billiton (BHP), quarterly supply was 88.4 million tons.

Vale will continue with planned expansions even as iron ore prices have plunged more than 70% on excess supply, Bloomberg reports. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

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Vale's weaknesses include its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: VALE

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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