RIO DE JANEIRO/SAO PAULO (Reuters) -Brazilian miner Vale reported a 17% decline in its first-quarter net profit on Thursday, hit by lower iron ore prices despite improved costs.

Vale, one of the world’s largest iron ore producers, posted a net profit of $1.39 billion for the quarter through March, slightly missing a consensus estimate of $1.68 billion by analysts polled by LSEG.

The company said earnings were hit by a decline in iron ore prices but the impact was partially offset by its production cost-cutting measures and the Brazilian real’s appreciation against the U.S. dollar.

“We had a consistent start to the year, aligned with our objectives for management in 2025,” CEO Gustavo Pimenta said in the earnings report, noting a good cost momentum.

Vale posted adjusted core profit as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) at $3.12 billion, down 9% and close to the $3.16 billion expected by analysts.

The results came in line with expectations and cost performance was the highlight, Itau BBA analysts said. However, they added that “lower realized prices more than offset the improvement in volumes and lower costs in the yearly comparison”.

Vale’s so-called C1 cash cost of iron ore fines, which measures production costs from the mines to the ports, fell 11% in the quarter to $21 per ton.

The miner’s operational report last week had shown iron ore volume production falling 4.5% due to heavy rainfall in Brazil, although Vale was able to increase sales volume with supply from inventories.

Still, a 16% decline in market reference prices of iron ore, Vale’s main product, weighed on its own sales prices and led to a 4% net revenue decline to $8.12 billion, marginally above analysts’ estimate of $8.03 billion.

Santander analysts said Vale presented “solid operational figures” but they were “already priced in”.

(Reporting by Marta Nogueira in Rio de Janeiro and Andre Romani in Sao Paulo; Editing by Brendan O’Boyle and Rashmi Aich)