Analysts at Goldman Sachs Group led by Marcelo Aguiar said in a
report on Monday that potential sales of non-core assets at
mining giant Vale SA expected for next year "would be
one of the key drivers to improve the company's returns."
Aguiar, who cited in his report a newspaper interview with Vale
Chief Executive Officer Murilo Ferreira, said the world's
largest iron ore producer could announce the sale of two assets
in the oil and gas sector in the coming weeks and a strategic
partnership that could take a stake between 30 percent and 50
percent in the company's logistic business.
"We would view asset divestitures as a source of funds to
raise the company's dividend outlook," Aguiar said, adding that
$0.56 dividend per share excluding sales of non-core assets.
Goldman has a "buy" recommendation on Vale's U.S.-traded shares,
with a price target of $19.70.