Rio de Janeiro/ São Paulo — Investors are looking past Vale SA’s worst quarter as analysts highlight the top iron ore miner’s brightening prospects after it set aside $4.5bn to cover potential costs linked to a fatal dam disaster. Shares gained as much as 2.6% in Brazil trading on Friday, even after the company posted a net loss of $1.6bn in the three months ended in March. Provisions related to the dam breach in January took the company’s adjusted earnings before interest, taxes, depreciation and amortisation to negative $652m, the first such loss in its history. “Once Vale reaches a final agreement with authorities on compensation for families and environment [which we don’t think will surpass $4bn-$5bn), we think investor focus will shift back to fundamentals, potentially triggering a re-rating,” Thiago Lofiego, an analyst at Bradesco BBI, said in a note Friday. “This is actually the remaining overhang on the stock.” The Brazilian miner set aside provisions to cover legal costs ...

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