NEW YORK (TheStreet) -- Shares of Vale S.A. (VALE) were down 0.85% to $9.35 in morning trading Monday after the CEO of fellow mining company Rio Tinto (RIO) , which gets 92% of its revenue from iron ore, said he is not fazed by plunging iron ore prices.
Rio Tinto CEO Sam Walsh told Reuters over the weekend he believes his company's production costs of $20.40 per metric ton, an industry low, in the first half of 2014 will help the company through this period of falling ore prices. He added he is confident in his company's ability to increase returns to shareholders when the company announces full-year results in February, and says Rio Tinto has no plans to trim its 2015 capital spending target of $8 billion, which it announced last year.
Rio Tinto is on pace to increase its output by 9% to 290 million metric tons with an eventual climb to 360 million metric tons, which would place it second in size behind Vale and well ahead of third-place BHP Billiton (BHP) .
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Separately, TheStreet Ratings team rates VALE SA as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."