Vale SA (VALE), the Brazilian iron ore giant, saw its stock soar 5.08% in Thursday's intraday trading session, despite reporting a net loss of $694 million for the fourth quarter of 2024. The surge was driven by the company's announcement of fresh dividends and a share buyback program, which offset the impact of the weaker-than-expected earnings.

The reported quarterly loss, stemming from impairments on some of Vale's Canadian base metals assets, missed analysts' expectations of a $1.95 billion profit. However, the company declared a dividend of 2.14 reais per share and launched a share buyback program for up to 120 million shares, representing 3% of its outstanding stock, to be executed over 18 months.

Analysts at RBC Capital Markets and Morgan Stanley (MS) anticipate a positive market reaction, citing the decreased 2025 capital expenditure forecast and the new shareholder returns as potential catalysts for consensus upgrades and stock rerating. The move signals Vale's commitment to returning cash to shareholders, despite the challenging quarter.