SAO PAULO/RIO DE JANEIRO, July 30 (Reuters) - Brazilian

miner Vale posted on Thursday a 35% fall in its

second-quarter net profit from a year earlier, while lifting the

lower end of its copper and nickel 2026 production outlook range

and announcing a new share buyback.

On the downside, Vale increased its projections for all-in

costs and production costs for iron ore this year by 11%, based

on the mid-points, due to a stronger Brazilian real and higher

oil prices.

Vale, one of the largest iron ore producers in the world,

posted a $1.38 billion net profit for the April-June quarter,

below the $1.85 billion expected in a LSEG analyst poll, hit by

financial effects including derivatives and taxes.

Despite the decline, analysts from JPMorgan and Santander

welcomed core earnings higher than expected, signaling a

potential positive share reaction on Friday.

Adjusted earnings before interest, taxes, depreciation and

amortization (EBITDA) landed at $3.68 billion, up 9%

year-on-year.

Vale said the increase came due to higher sales across its

business segments, which offset a rise in freight and other

costs, as well as currency effects.

While the reported figure was below an LSEG adjusted EBITDA

forecast of $3.83 billion, analysts noted that, when excluding

some non-recurring items, core earnings would stand at $4.07

billion, above their expectations.

Net revenue increased 19% in the period to $10.50 billion,

roughly matching expectations of $10.47 billion.

That was boosted by Vale's highest second-quarter output

since 2018 - the year before the collapse of a dam in the

Brazilian city of Brumadinho, which killed an estimated 270

people and triggered a safety review of the firm's projects.

NEW PROJECTIONS, SHAREHOLDER PAYOUT

Vale announced a new share buyback program of up to 100

million shares to be carried out within an 18-month period, and

the payment of $1.7 billion to shareholders through dividends

and interest on equity.

Separately, it projected 2026 copper production would land

between 360,000 and 380,000 metric tons, raising the bottom end

of the range by 10,000 tons from its previous forecast.

For nickel, the firm estimated output between 185,000 and

200,000 tons this year, also up by 10,000 tons at the bottom end

of the range.