Brazil’s CSN Mineração posts $69.5M Q1 loss

Brazil’s CSN Mineração (CMIN3), the mining arm of steel giant CSN, reported a net loss of R$357 million (approximately $69.5 million) in the first quarter of 2025, a significant decrease from the previous quarter’s net profit of over R$2.0 billion ($389.2 million).

According to InfoMoney, the company’s downturn was primarily caused by exchange rate fluctuations affecting its foreign currency cash holdings.

Adjusted net revenue in Q1 was R$3.41 billion ($662.9 million), a 12.7% decrease from the fourth quarter of 2024.

The reduction was mostly caused by normal seasonality and significant rainfall, which hindered transit quantities.

Despite the quarter-over-quarter reduction, revenue increased by 21.7% year on year, thanks to improved operational efficiency and a more advantageous exchange rate scenario, according to InfoMoney.

Stable prices, rising costs

Unit net revenue was US$61.96 per ton, unchanged from both the prior quarter and year-ago quarter, which is consistent with relatively flat iron ore prices during the period.

COGS for 1Q25 were R$2.24 billion ($435.5 million), up 5.3% from 4Q25 due to increasing purchases of grade ore and high freight charges.

CSN Mineração achieved a strong cash cost per ton of US$21.0/t, a marginal (2.9%) increase q-o-q but a significant (11.0%) year-on-year improvement due to recent operational efficiency gains.

Gross profit for the quarter was R$1.17 billion ($227.4 million), down 34.1% from 4q24.

The gross margin fell to 34.4%, attributable mostly to a lesser dilution of fixed costs as volume fell.

However, compared to the same period the previous year, gross profit climbed by 28.4%, with a margin improvement of 1.8 percentage points.

Administrative and financial pressures

General and administrative expenses increased to R$57.6 million ($11.5 million), a 16.9% uptick quarter-over-quarter, driven by a one-off effect.

Nonetheless, despite a higher sales volume, these costs were 21.1% lower than those in Q1 2024, indicating a turnaround in cost control initiatives.

Equity income was R$37 million ($7.2 million), a decrease of 16.4% compared to the fourth quarter due to seasonality and lower rail logistics activity via the MRS railroad.

One of the reasons behind the quarterly loss was the impact of the weaker currency on CSN Mineração’s dollar-denominated cash reserves.

Shareholder returns of $252.8 million have been approved

CSN Mineração’s board approved a substantial shareholder distribution of R$1.3 billion ($252.8 million).

This included R$1.09 billion ($212 million) in interim dividends and R$210 million ($40.8 million) in interest under equity (JCP).

The business indicated that stockholders on record as of Monday, May 12, will be eligible for the distribution.

The payment will be finished by December 31, 2025, with the exact date to be revealed later.s.

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