Kawa Capital Loads Up on Vale With a Purchase of 340,000 Shares

What happened

In a filing dated Oct. 6, 2025, Kawa Capital Management, Inc reported buying 340,000 additional shares of Vale (NYSE:VALE) during the third quarter of 2025, bringing its total holding to 1,020,000 shares. The estimated value of shares acquired was $3.47 million, based on the average share price for the period. For further details, see the SEC filing.

What else to know

This was a buy; after the trade, Vale represented 20.1% of Kawa Capital’s 13F assets under management as of September 30, 2025

Top holdings after the filing:

NYSE:BDN: $16.36 million (29.7% of AUM) as of September 30, 2025

NYSE:ONL: $14.78 million (26.8% of AUM) as of September 30, 2025

NYSE:VALE: $11,08 million (20.1% of AUM) as of September 30, 2025

NYSE:GGB: $6.49 million (11.8% of AUM) as of September 30, 2025

NYSE:DK: $6.45 million (11.7% of AUM) as of September 30, 2025

As of October 3, 2025, shares were priced at $11.01, underperforming the S&P 500 by 17.08 percentage points over the year ended October 3, 2025

Vale reported trailing twelve-month revenue of $36,080,663,000 and net income of $5,166,767,000 for the period ended June 30, 2025

Over the past 12 months, Vale shareholders eaned a 3.38% dividend yield. The stock was 3.3% below its 52-week high as of October 6, 2025.

Company Overview

Company Snapshot

Vale S.A. generates revenue primarily from the production and sale of iron ore, iron ore pellets, nickel, and copper, with additional contributions from gold, silver, cobalt, and other by-products.

The company operates an integrated business model, extracting and processing minerals and providing related logistics services, enabling efficient delivery to global industrial customers.

Vale serves a broad global customer base through its scale and logistics capabilities.

Vale maintains a diversified portfolio that supports the energy transition and industrial materials sectors, operating at scale and providing integrated logistics services to customers worldwide.

Foolish take

The Brazillian mining giant is famous for producing products you need to produce batteries, copper, maganese, and cobalt. It's also a top producer of iron, and nickel.

Unlike U.S. companies that usually pay even quarterly dividends, Vale distributes dividend payments twice a year. Fluctuating currency exchange rates and basic material prices have made its dividend payout highly variable. This isn't an appropriate stock for investors seeking a steadily growing stream of passive income.

In the second quarter, iron ore production rose 4% year over year. Unfortunately, the average realized iron ore fines price was 13% lower year over year.

Second quarter copper production rose 18% year over year and efficiency is way up. In July, management revised its all-in copper cost guidance to a range between $1,500 and $2,000 per ton. The previous range was between $2,800 and $3,300 per ton.

Glossary

AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.
Dividend yield: Annual dividend payments divided by the stock's current price, expressed as a percentage.
Trailing twelve months (TTM): Financial data covering the most recent 12 consecutive months.
Integrated business model: A company structure where multiple stages of production and distribution are managed within the same organization.
Iron ore pellets: Small, rounded balls of iron ore used as raw material in steel production.
Point-in-time metric: A measurement taken at a specific date, not averaged over a period.
Buy (in fund context): The purchase of additional shares or securities by an investment fund or manager.
Reportable assets: Investments that must be disclosed in regulatory filings due to size or type.
Underperforming: Delivering a lower return compared to a benchmark or index over a given period.
Energy transition: The global shift from fossil fuels to renewable and low-carbon energy sources.
Logistics services: The management of transporting and delivering goods efficiently to customers or markets.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.