Brazilian iron ore miner Vale SA’s quarterly net income jumped by 47 percent but still badly missed analyst estimates, depressed by rising costs and foreign exchange related losses.

In a securities filing on Tuesday, the world’s largest iron ore producer said net income totaled $771 million in the quarter, well below a consensus estimate of $2.537 billion but still above the $525 million in profit during the same period last year.

Costs rose 11 per cent to $6.260 billion, while net operating revenue slipped 1 percent to $9.167 billion.

Vale said a loss of $1.287 billion from its financial operations was due to non-cash exchange rate variations, losses on currency derivatives and other instruments, mainly stemming from a 4.2 per cent depreciation in the real currency in the quarter.

That compares to a financial loss of $603 million in the fourth quarter of 2016.

However, cash flow increased to $2.744 billion in the quarter, helping Vale to cut net debt by a robust 14 percent on a sequential basis to $18.143 billion.

Vale has said it expects to slash debt to $10 billion by mid-2018.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 13 percent to $4.109 billion, still exceeding a consensus estimate of $3.865 billion compiled by Thomson Reuters.

Reporting by Alexandra Alper Editing by Christian Plumb and Tom Brown.

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