Vale S.A 6-K, filed Oct 25, 2024
Vale S.A. (VALE)
About this 6-K
Vale S.A filed this 6-K on October 25, 2024.
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
October 2024
Vale S.A.
Praia de Botafogo nº 186, 18º andar,
Botafogo
22250-145 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F x Form 40-F ¨
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“I am pleased to present Vale's results for the first time as the company’s CEO. Before I comment on the quarter’s performance, I would like to briefly lay out what I envisage as the path forward for the company. First, we will strive to transform Vale into a more agile and efficient company, fostering innovation and a performance culture. Having said that, safety and operational excellence are non-negotiable elements of this journey. Second, our strategic efforts will be concentrated on delivering a superior portfolio, with a greater focus on customer-centricity. On iron ore, we will accelerate our high-quality product offerings, while on base metals, we aim to continue to grow, particularly on copper. Lastly, I am committed to enhancing our institutional relationships, ensuring we leave a positive impact on people and the environment.” In the quarter, our iron ore production reached its highest levels in over five years, underscoring our continued focus on operational excellence. Our pellet production is at its peak since 2019, aligned with our strategy to deliver high-quality products. In our base metals division, copper and nickel production also showed solid progress, marked by operational improvements in Canada, with the asset review implementation already bearing fruit. We also continue to deliver on dam safety, having recently removed the Sul Superior dam from emergency Level 3. Lastly, we expect to sign the Mariana settlement very soon, aiming at a definitive resolution that will, above all, benefit the impacted people and society, through a mutually beneficial agreement for all stakeholders.” commented Gustavo Pimenta, Chief Executive Officer |
| Selected financial indicators | |||||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Net operating revenues | 9,553 | 10,623 | -10% | 9,920 | -4% | 27,932 | 28,730 | -3% | |
| Total costs and expenses¹ (ex-Brumadinho and dams)echaracterization)1 | (6,802) | (6,921) | -2% | (6,974) | -2% | (19,673) | (18,736) | 5% | |
| Expenses related to Brumadinho and dams decharacterization | (126) | (305) | -59% | 1 | n.a. | (166) | (687) | -76% | |
| Adjusted EBIT | 2,867 | 3,651 | -21% | 3,200 | -10% | 8,791 | 9,928 | -11% | |
| Adjusted EBITDA | 3,615 | 4,431 | -18% | 3,993 | -9% | 11,046 | 12,143 | -9% | |
| Adjusted EBITDA margin (%) | 38% | 42% | -4 p.p | 40% | -2 p.p | 40% | 42% | -2 p.p | |
| Proforma adjusted EBITDA 2 3 | 3,741 | 4,736 | -21% | 3,992 | -6% | 11,212 | 12,830 | -13% | |
| Free cash flow | 179 | 1,126 | -84% | (178) | n.a. | 2,001 | 4,186 | -52% | |
| Net income attributable to Vale's shareholders | 2,412 | 2,836 | -15% | 2,769 | -13% | 6,860 | 5,565 | 23% | |
| Net debt 4 | 9,536 | 10,009 | -5% | 8,590 | 11% | 9,536 | 10,009 | -5% | |
| Expanded net debt | 16,472 | 15,494 | 6% | 14,683 | 12% | 16,472 | 15,494 | 6% | |
| 1 Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23 to reflect the performance of the streaming transactions at market price. 2 Excluding expenses related to Brumadinho. 3 Including the EBITDA from associates and JVs. Historical figures were restated. 4 Including leases (IFRS 16). | |||||||||
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Results Highlights · Operational and sales performance improved across all business segments. Iron ore shipments increased by 1.3 Mt (+2%) y/y, driven by an 18% rise in pellet sales due to higher production and strong demand. · The average realized iron ore fines price was US$ 90.6/t, US$ 7.6/t lower q/q despite iron ore reference prices having decreased by US$ 12.0/t. The lower decline vs. the reference price is attributed to an enhanced product portfolio and positive provisional pricing adjustments. · Proforma Adjusted EBITDA decreased by 6% q/q and 21% y/y, totaling USD 3.7 billion. Higher volumes and lower unit costs, particularly in iron ore, partly offset the impact of lower prices. · Iron ore fines’ C1 cash cost, ex-3rd party purchases, was 17% lower q/q and 6% lower y/y, reaching US$ 20.6/t, driven mainly by: (i) fixed costs dilution due to higher production; (ii) a better production mix, with higher volumes from the Northern System where production costs are lower and (iii) continued efficiency. In September, the C1 production cost reached US$ 18.2/t, indicating a positive performance in Q4. Vale is highly confident in achieving the low-end of its 2024 C1 cash cost guidance, ex-3rd -party purchases, of US$ 21.5-23.0/t. ·
Copper and nickel all-in costs were US$ 2,851/t
and US$ 18,073/t, respectively. The
copper all-in cost guidance is again being revised down, now to US$ 2,900 - 3,300/t. On nickel, the all-in cost guidance range of · Free cash flow was US$ 179 million, US$ 947 million lower y/y, largely reflecting the decrease in EBITDA. · The Samarco-related provision was revised to US$ 4.7 billion, an increase of US$ 1.0 billion, reflecting the most updated assessment regarding the potential settlement agreement with the Brazilian authorities, the claims related to the Samarco dam failure, and the extent to which Samarco may be able to fund any future outflows. · Expanded net debt of US$ 16.5 billion as of September 30th, US$ 1.8 billion higher q/q, primarily due to the additional provisions related to Samarco’s dam failure. |
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Business Highlights
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Iron Ore Solutions · Commissioning of the Vargem Grande 1 project’s wet processing operations started in September, one month ahead of schedule. The project represents an important step towards Vale’s iron ore production guidance of 340-360 Mt in 2026, by resuming approximately 15 Mtpy of iron ore capacity and improving the site’s iron content by nearly 2 p.p. Other key projects underway: +15 Mt at Capanema and +20 Mt at S11D are 91% and 67% complete and on track to start in 1H25 and 2H26. · In September, Vale completed the joint venture transaction with Apollo for US$ 600 million. Under the agreement Vale now holds 50% of the Vale Oman Distribution Center (VODC). VODC operates a maritime terminal with a large deep-water jetty and an integrated iron ore blending and distribution center with a nominal capacity of 40 Mtpy in Sohar, Oman. Energy Transition Metals · In October, the second underground mine of the Voisey’s Bay Mine Extension (VBME) project achieved mechanical completion, which will allow the mine to begin ramping up production in the coming months. The ramp-up of the Voisey’s Bay transition is an important milestone for the competitiveness of Canadian operations and will support unit cost reduction of the nickel business segment. Recent developments · The Onça Puma plant resumed operations on October 15th after a 10-day halt due to a power outage. Nickel metal production at the furnace restarted on October 22nd. · Vale and BNDES have advanced with the creation of a private investment fund to foster Critical Minerals development in Brazil. The fund aims to raise up to R$ 1 billion, of which Vale and BNDES will contribute with an amount between R$ 100 million and R$ 250 million each. The amount raised should be invested in about 20 junior and mid-sized companies that operate in mineral research, development, and implementation of new strategic mineral mines in Brazil. |
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ESG
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Tailing Dams · Vale completed the de-characterization of Dique 1A and Dique 1B in September and October, respectively. Since 2019, Vale has de-characterized 16 structures, representing 53% of the Upstream Dam Decharacterization Program. · The Sul Superior dam, located in Barão de Cocais, had its emergency level lowered from 3 to 2 in August following the execution of geological-geotechnical investigations and safety improvement measures. Circular Mining · Vale’s Waste-to-Value program is transforming waste and tailings into valuable resources. It encompasses more than 150 initiatives, including repurposing iron ore tailings into high-grade pellet feed in Carajás and eliminating waste rock stockpiles through reprocessing to create circular iron ore products in Minas Gerais. As part of the program, an additional 7 Mt iron ore production has been identified for 2024. Decarbonization · Vale and Green Energy Park, an integrated European hydrogen company, have joined forces to deliver decarbonization solutions for the global steel sector. The companies will work on feasibility studies to develop a green hydrogen production facility to supply a future Mega Hub in Brazil, an industrial complex aimed at manufacturing low-carbon steel products . · Vale and Petrobras signed, in October, a strategic alliance for the supply of products and services focused on decarbonization. It establishes conditions for potential commercialization of co-processed diesel with renewable content, natural gas, and bunker fuel with 24% renewable content. |
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Reparation
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Brumadinho · The Brumadinho Integral Reparation Agreement continues to progress, with more than 70% of the agreed-upon commitments completed and in accordance with the settlement deadlines. Mariana · Renova continues to progress with its reparation program, with R$ 38 billion disbursed and more than 446 thousand people compensated by the end of September. · Advanced negotiations are ongoing for the Mariana settlement agreement, at a total value of approximately R$ 170 billion, considering past and future obligations to support the people, communities, and environment affected by the dam failure. |
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Financials
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Proforma Adjusted EBITDA | |||||||||
| Net operating revenues | 9,553 | 10,623 | -10% | 9,920 | -4% | 27,932 | 28,730 | -3% | |
| COGS | (6,281) | (6,309) | 0% | (6,349) | -1% | (17,997) | (17,198) | 5% | |
| SG&A | (139) | (150) | -7% | (137) | 1% | (416) | (407) | 2% | |
| Research and development | (192) | (188) | 2% | (189) | 2% | (537) | (492) | 9% | |
| Pre-operating and stoppage expenses | (89) | (115) | -23% | (91) | -2% | (272) | (342) | -20% | |
| Brumadinho & decharacterization of dams¹ | (126) | (305) | -59% | 1 | n.a. | (166) | (687) | -76% | |
| Other operational expenses2 | (101) | (159) | -36% | (208) | -51% | (451) | (297) | 52% | |
| EBITDA from associates and JVs | 242 | 254 | -5% | 253 | -4% | 698 | 621 | 12% | |
| Adjusted EBIT | 2,867 | 3,651 | -21% | 3,200 | -10% | 8,791 | 9,928 | -11% | |
| Depreciation, amortization & depletion | 748 | 780 | -4% | 793 | -6% | 2,255 | 2,215 | 2% | |
| Adjusted EBITDA | 3,615 | 4,431 | -18% | 3,993 | -9% | 11,046 | 12,143 | -9% | |
| Proforma Adjusted EBITDA3,4 | 3,741 | 4,736 | -21% | 3,992 | -6% | 11,212 | 12,830 | -13% | |
| Reconcilation of Proforma EBITDA to Net Income | |||||||||
| Proforma Adjusted EBITDA3,4 | 3,741 | 4,736 | -21% | 3,992 | -6% | 11,212 | 12,830 | -13% | |
| Brumadinho and decharacterization of dams¹ | (126) | (305) | -59% | 1 | n.a. | (166) | (687) | -76% | |
| Impairment and results on disposal of non-current assets2,5 | 1,050 | (122) | n.a. | 928 | 13% | 1,905 | (279) | n.a. | |
| EBITDA from associates and JVs | (242) | (254) | -5% | (253) | -4% | (698) | (621) | 12% | |
| Equity results on associates and JVs and other results | (574) | 94 | n.a. | 112 | n.a. | (338) | 44 | n.a. | |
| Financial results | (374) | (385) | -3% | (1,252) | -70% | (2,063) | (1,072) | 92% | |
| Income taxes | (336) | (127) | 165% | 34 | n.a. | (750) | (2,337) | -68% | |
| Depreciation, depletion & amortization | (748) | (780) | -4% | (793) | -6% | (2,255) | (2,215) | 2% | |
| Net income | 2,391 | 2,857 | -16% | 2,769 | -14% | 6,847 | 5,663 | 21% | |
| (Net income)/loss attributable to non-controlling interests | 21 | (21) | n.a. | - | n.a. | 13 | (98) | n.a. | |
| Net income attributable to Vale's shareholders | 2,412 | 2,836 | -15% | 2,769 | -13% | 6,860 | 5,565 | 23% | |
| ¹ Find more information on expenses in Annex 4: Brumadinho & Decharacterization. 2 Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23 to reflect the performance of the streaming transactions at market price. 3 Excluding expenses related to Brumadinho. 4 Starting from 1Q24 the EBITDA will be reported including the EBITDA proportionate from associates and JVs and the previous periods were restated. Previously, the EBITDA reflected solely the dividends received from associates and JVs. 5 Net. | |||||||||
EBITDA
Proforma Adjusted EBITDA of US$ 3.7 billion,
21% lower y/y and 6% lower q/q, mainly as a result of weaker realized iron ore fines prices and higher freight costs, partially offset
by the positive effect of BRL depreciation, lower costs and expenses and higher sales volumes.
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Proforma Adjusted EBITDA 3Q24 vs. 3Q23 - US$ million |
1 Excluding Brumadinho expenses. 3Q23 EBITDA was restated including associates and JV’s EBITDA (US$ 254 million). 2 Including by-products (US$ 66 million), EBITDA Energy (US$ 5 million) and Associates and JVs EBITDA (US$ -12 million).
Net Income
Net income attributable to Vale’s shareholders of US$
2.4 billion, 15% lower y/y and 13% lower q/q, mainly
due to lower Proforma EBITDA and the negative effect from Associates & JV's as a result of Samarco’s dam failure potential settlement
agreement. This was partially offset by a positive effect from the disposal of non-current assets related to VODC's 50% stake sale.
Net income attributable to Vale’s shareholders 3Q24 vs. 3Q23 – US$ million
1 Considers equity results and EBITDA from associates and JVs. 2 Impairment and disposal of non-current assets, net. Includes the sale of 50% of VODC's share capital to Apollo of which: US$ 600 million in proceedings received from the sale, US$ 600 million related to the fair value of 50% interest retained and US$ 22 million in other effects related to the deconsolidation. Includes adjustment of US$ 94 million in 3Q24 and US$ 47 million in 3Q23 to reflect the performance of the streaming transactions at market price. 3 Includes (i) US$ 32 million in depreciation, depletion & amortization, (ii) US$ 11 million in financial results and (iii) US$ 42 million net income/loss attributable to non-controlling interests.
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Capital Expenditures
Total CAPEX
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Iron Ore Solutions | 1,000 | 963 | 4% | 906 | 10% | 2,907 | 2,438 | 19% | |
| Energy Transition Metals | 376 | 453 | -17% | 405 | -7% | 1,148 | 1,209 | -5% | |
| Nickel | 298 | 365 | -18% | 344 | -13% | 948 | 936 | 1% | |
| Copper | 78 | 88 | -11% | 61 | 28% | 200 | 273 | -27% | |
| Energy and others | 22 | 48 | -54% | 17 | 29% | 66 | 155 | -57% | |
| Total | 1,398 | 1,464 | -5% | 1,328 | 5% | 4121 | 3,802 | 8% |
Growth Projects
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Iron Ore Solutions | 323 | 354 | -9% | 293 | 10% | 936 | 845 | 11% | |
| Energy Transition Metals | 49 | 96 | -49% | 33 | 48% | 121 | 263 | -54% | |
| Nickel | 46 | 67 | -31% | 29 | 59% | 107 | 151 | -29% | |
| Copper | 3 | 29 | -90% | 4 | -25% | 14 | 112 | -88% | |
| Energy and others | 4 | 18 | -78% | 2 | 100% | 14 | 62 | -77% | |
| Total | 376 | 468 | -20% | 328 | 15% | 1,071 | 1,170 | -8% |
Investments in growth projects totaled US$ 376 million,
US$ 92 million (-20%) lower y/y, mainly as a result of (i) lower expenditures with the Salobo 3 copper project; (ii) the deconsolidation
of PTVI in our Energy Transition Metals business; and (iii) lower disbursements for the Tubarão Briquette project as the physical
progress is at an advanced stage.
Sustaining Investments
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Iron Ore Solutions | 677 | 609 | 11% | 613 | 10% | 1,971 | 1,593 | 24% | |
| Energy Transition Metals | 327 | 357 | -8% | 372 | -12% | 1,027 | 946 | 9% | |
| Nickel | 252 | 298 | -15% | 315 | -20% | 841 | 785 | 7% | |
| Copper | 75 | 59 | 27% | 57 | 32% | 186 | 161 | 16% | |
| Energy and others | 18 | 30 | -40% | 15 | 20% | 52 | 93 | -44% | |
| Total | 1,022 | 996 | 3% | 1,000 | 2% | 3,050 | 2,632 | 16% |
Sustaining investments totaled US$ 1.022 billion, US$ 26 million (+3%) higher y/y mainly as a result of higher investments in equipment and asset reliability improvements partially compensated by lower expenditures in the Voisey’s Bay Mine Expansion nickel project.
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Free cash flow
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Proforma Adjusted EBITDA | 3,741 | 4,736 | -21% | 3,992 | -6% | 11,212 | 12,830 | -13% | |
| Working capital | (570) | (186) | 206% | (1,111) | n.a. | (213) | (45) | 373% | |
| Brumadinho and de-characterization expenses | (420) | (559) | -25% | (480) | -13% | (1,262) | (1,595) | -21% | |
| Income taxes and REFIS | (471) | (720) | -35% | (466) | 1% | (1,443) | (1,631) | -12% | |
| Capex | (1,398) | (1,464) | -5% | (1,328) | 5% | (4,121) | (3,802) | 8% | |
| Associates & JVs | (242) | (254) | -5% | (253) | -4% | (698) | (621) | 12% | |
| Others | (461) | (427) | 8% | (532) | -13% | (1,474) | (950) | 55% | |
| Free Cash Flow | 179 | 1,126 | -84% | (178) | n.a. | 2,001 | 4,186 | -52% | |
| Cash management and others | (2,121) | (2,087) | 2% | 3,056 | n.a. | (860) | (5,023) | -83% | |
| Increase/Decrease in cash & equivalents | (1,942) | (961) | 102% | 2,878 | n.a. | 1,141 | (837) | n.a. |
Free Cash Flow generation reached US$ 179 million in 3Q24, US$ 947 million lower y/y, mainly explained by lower Proforma EBITDA (US$ 995 million lower y/y).
In the quarter, EBITDA-to-cash conversion was impacted by a negative working capital of US$ 570 million, largely explained by an increase in accounts receivables, given higher provisional prices and accrued iron ore sales at the end of the quarter.
Vale’s cash position was impacted by: (i) the distribution of US$ 1.6 billion to shareholders in interest on capital, (ii) the continuation of debt liability management, with a negative US$ 632 million net effect, (iii) the acquisition of the 45%-stake of Aliança Energia for US$ 493 million, all partly offset by the proceeds from the sale of a 50%-stake at VODC for US$ 600 million.
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1 Includes US$ 342 million in disbursements related to the Brumadinho and de-characterization provisioned expenses and US$ 78 million in Brumadinho incurred expenses. 2 Related to Associates and Joint Ventures EBITDA that was included in the Proforma EBITDA. 3 Includes interest on loan, derivatives, leasing, payments related to Samarco dam failure and others. 4 Includes disbursements of US$ 1.586 billion in interest on capital, US$ 20 million in shares buyback, US$ 493 million for the acquisition of Aliança Energia and US$ 1.584 billion in debt repayment. These were partially offset by US$ 962 million in new loans& bonds and US$ 600 million received from VODC transaction. |
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Debt
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Gross debt¹ | 13,420 | 12,556 | 7% | 13,770 | -3% | |
| Lease (IFRS 16) | 765 | 1,480 | -48% | 1,360 | -44% | |
| Gross debt and leases | 14,185 | 14,036 | 1% | 15,130 | -6% | |
| Cash, cash equivalents and short-term investments | (4,649) | (4,027) | 15% | (6,540) | -29% | |
| Net debt | 9,536 | 10,009 | -5% | 8,590 | 11% | |
| Currency swaps2 | (128) | (722) | -82% | (26) | 392% | |
| Brumadinho provisions | 2,390 | 3,197 | -25% | 2,412 | -1% | |
| Samarco & Renova Foundation provisions3 | 4,674 | 3,010 | 55% | 3,707 | 26% | |
| Expanded net debt | 16,472 | 15,494 | 6% | 14,683 | 12% | |
| Average debt maturity (years) | 8.9 | 8.2 | 9% | 9.2 | -3% | |
| Cost of debt after hedge (% pa) | 5.6 | 5.6 | 1% | 5.8 | -3% | |
| Total debt and leases / adjusted LTM EBITDA (x) | 0.8 | 0.9 | -11% | 0.8 | 0% | |
| Net debt / adjusted LTM EBITDA (x) | 0.5 | 0.6 | -17% | 0.5 | 0% | |
| Adjusted LTM EBITDA / LTM gross interest (x) | 22.4 | 23.0 | -3% | 23.6 | -5% | |
| ¹ Does not include leases (IFRS 16). ² Includes interest rate swaps. ³ Provisions in 3Q23 do not include Germano which was reported separately at the time. With Germano, the provisions in 3Q23 would have been US$ 3,219. | ||||||
Gross debt and leases reached US$ 14.2 billion as of September 30th, 2024, US$ 0.9 billion lower q/q, mainly as a result of the net effect of liability management in the quarter (~US$ 0.6 billion) and the deconsolidation of Vale Oman Distribution Center’s liabilities (US$ 0.6 billion) after the sale of the 50% stake.
Samarco & Renova Foundation provisions: This quarter, Vale recognized an additional provision of US$ 956 million for Samarco/Renova based on advanced negotiations with Brazilian authorities for an agreement which defines the measures for the reparation and compensation related to the collapse of the Samarco dam. The amount of the additional provisions considers the extent to which Samarco may be able to fund future outflows. Total provisions for Samarco & Renova Foundation now stand at US$ 4.7 billion.
Expanded net debt increased by US$ 1.8 billion q/q, totaling almost US$ 16.5 billion, mainly as a result of a reduction in cash and cash equivalents to US$ 4.7 billion (US$ 1.9 billion lower q/q) and the increase in provisions related to Samarco and the Renova Foundation (~ US$ 1 billion). Vale’s expanded net debt target remains at US$ 10-20 billion.
Average debt maturity declined to 8.9 years at the end of 3Q24 from 9.2 years at the end of 2Q24. The average annual cost of debt after currency and interest rate swaps was 5.6%, falling from 2Q24’s 5.8%.
In October, Moody’s upgraded Vale S.A and Vale Overseas Limited’s issuer rating and senior unsecured notes rating to “Baa2” from “Baa3” and reaffirmed the positive outlook on the ratings. The rating agency also upgraded the senior unsecured notes issued by Vale Canada Ltd. to “Baa3” from “Ba1” and changed the ratings outlook from stable to positive.
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Segments’ Performance
Proforma Adjusted EBITDA from continuing operations, by business area:
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Iron Ore Solutions | 3,731 | 4,696 | -21% | 3,887 | -4% | 11,077 | 12,236 | -9% | |
| Fines | 2,844 | 3,799 | -25% | 3,071 | -7% | 8,422 | 9,670 | -13% | |
| Pellets | 790 | 751 | 5% | 724 | 9% | 2,396 | 2,200 | 9% | |
| Other | 97 | 146 | -34% | 92 | 5% | 259 | 366 | -29% | |
| Energy Transition Metals¹ | 248 | 385 | -36% | 407 | -39% | 912 | 1,434 | -36% | |
| Nickel | (66) | 100 | n.a. | 108 | n.a. | 59 | 663 | -91% | |
| Copper | 360 | 269 | 34% | 351 | 3% | 995 | 725 | 37% | |
| Other | (46) | 16 | n.a. | (52) | -12% | (142) | 46 | n.a. | |
| Others2 3 | (238) | (345) | -31% | (302) | -21% | (777) | (840) | -8% | |
| Total | 3,741 | 4,736 | -21% | 3,992 | -6% | 11,212 | 12,830 | -13% | |
| ¹ Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. ² Including a negative y/y effect of provisions related to communities’ programs, reversal of tax credit provisions, and contingency loss. 3 Includes US$ 20 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 3Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 228 million in 3Q24. | |||||||||
Segment information 3Q24
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 7,970 | (4,255) | (45) | (87) | (63) | 211 | 3,731 | |||||||
| Fines | 6,281 | (3,371) | (15) | (76) | (58) | 83 | 2,844 | |||||||
| Pellets | 1,502 | (747) | (2) | (3) | (3) | 43 | 790 | |||||||
| Other | 187 | (137) | (28) | (8) | (2) | 85 | 97 | |||||||
| Energy Transition Metals | 1,583 | (1,313) | 30 | (74) | (1) | 23 | 248 | |||||||
| Nickel² | 904 | (936) | (17) | (34) | (1) | 18 | (66) | |||||||
| Copper3 | 759 | (366) | (3) | (30) | - | - | 360 | |||||||
| Others4 | (80) | (11) | 50 | (10) | - | 5 | (46) | |||||||
| Brumadinho and decharacterization of dams | - | - | (126) | - | - | - | (126) | |||||||
| Others5 | - | - | (211) | (32) | (3) | 8 | (238) | |||||||
| Total | 9,553 | (5,568) | (352) | (193) | (67) | 242 | 3,615 | |||||||
| ¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. ⁴ Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. 5 Includes US$ 20 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 3Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 228 million in 3Q24. | ||||||||||||||
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Highlights
| 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| Average Prices (US$/t) | |||||||||
| Iron ore - 62% Fe price | 99.7 | 114.0 | -13% | 111.8 | -11% | 111.5 | 116.9 | -5% | |
| Iron ore fines realized price, CFR/FOB | 90.6 | 105.1 | -14% | 98.2 | -8% | 96.1 | 103.7 | -7% | |
| Iron ore pellets realized price, CFR/FOB | 148.2 | 161.2 | -8% | 157.2 | -6% | 158.7 | 161.3 | -2% | |
| Volume sold (‘000 metric tons) | |||||||||
| Fines | 69,344 | 69,714 | -1% | 68,512 | 1% | 190,402 | 178,904 | 6% | |
| Pellets | 10,143 | 8,613 | 18% | 8,864 | 14% | 28,232 | 25,556 | 10% | |
| ROM | 2,351 | 2,232 | 5% | 2,416 | -3% | 6,822 | 6,132 | 11% | |
| Total - Iron ore | 81,838 | 80,559 | 2% | 79,792 | 3% | 225,456 | 210,591 | 7% | |
| Financials indicators (US$ million) | |||||||||
| Net Revenues | 7,970 | 8,862 | -10% | 8,298 | -4% | 23,293 | 23,049 | 1% | |
| Costs¹ | (4,255) | (4,164) | 2% | (4,415) | -4% | (12,222) | (10,883) | 12% | |
| SG&A and Other expenses¹ | (45) | (79) | -43% | (81) | -44% | (190) | (101) | 88% | |
| Pre-operating and stoppage expenses¹ | (63) | (89) | -29% | (67) | -6% | (194) | (258) | -25% | |
| R&D expenses | (87) | (75) | 16% | (94) | -7% | (264) | (179) | 47% | |
| EBITDA Associates & JVs | 211 | 241 | -12% | 246 | -14% | 654 | 608 | 8% | |
| Adjusted EBITDA | 3,731 | 4,696 | -21% | 3,887 | -4% | 11,077 | 12,236 | -9% | |
| Depreciation and amortization | (515) | (508) | 1% | (574) | -10% | (1,570) | (1,413) | 11% | |
| Adjusted EBIT | 3,216 | 4,188 | -23% | 3,313 | -3% | 9,507 | 10,823 | -12% | |
| ¹ Net of depreciation and amortization. | |||||||||
Adjusted EBITDA per segment
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Fines | 2,844 | 3,799 | -25% | 3,071 | -7% | 8,422 | 9,670 | -13% | |
| Pellets | 790 | 751 | 5% | 724 | 9% | 2,396 | 2,200 | 9% | |
| Other | 97 | 146 | -34% | 92 | 5% | 259 | 366 | -29% | |
| Adjusted EBITDA | 3,731 | 4,696 | -21% | 3,887 | -4% | 11,077 | 12,236 | -9% |
Iron Ore Solutions EBITDA was US$ 3.7 billion, 21% lower
y/y, driven by lower prices. Cost and expenses were flat y/y.
In Iron Ore Fines, EBITDA decreased by 25% y/y, totaling US$ 2.8 billion, mostly explained by lower realized prices (US$ 1.016 billion) and higher freight costs (US$ 104 million). These effects were partially offset by the positive effect of the BRL depreciation (US$ 144 million) and slightly lower cost and expenses (US$ 63 million).
In Iron Ore Pellets, EBITDA increased by 5% y/y, totaling US$ 790 million, mostly explained by 18% higher sales volumes (US$ 139 million) and the positive effect of the BRL depreciation (US$ 57 million), partially offset by lower average realized prices (US$ 137 million).
- 9 - | |
|
EBITDA variation – US$ million (3Q24 vs. 3Q23)
1 Includes associates and JV’s EBITDA and others.
Iron Ore Fines
Product mix
| '000 metric tons | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Volume sold | |||||||||
| Fines¹ | 69,344 | 69,714 | -1% | 68,512 | 1% | 190,402 | 178,904 | 6% | |
| IOCJ | 11,709 | 14,758 | -21% | 13,180 | -11% | 34,290 | 39,599 | -13% | |
| BRBF | 34,797 | 36,454 | -5% | 30,528 | 14% | 91,018 | 89,134 | 2% | |
| Pellet feed - China (PFC1)² | 3,328 | 4,234 | -21% | 3,337 | 0% | 9,201 | 10,056 | -9% | |
| Lump | 1,971 | 2,367 | -17% | 1,782 | 11% | 5,562 | 5,626 | -1% | |
| High-silica products | 8,050 | 6,131 | 31% | 11,372³ | -29% | 26,584³ | 18,090 | 47% | |
| Other fines (60-62% Fe) | 9,489 | 5,770 | 64% | 8,313³ | 14% | 8,256³ | 16,399 | -50% | |
| 1 Including third-party purchases. 2 Products concentrated in Chinese facilities. 3 Restated from historical figures. | |||||||||
Revenues
The average realized iron ore fines price was US$ 90.6/t, US$ 7.6/t lower q/q, despite iron ore reference prices decreasing by US$ 12/t in the period. The lower decline vs. the reference price is attributed to the positive effect of provisional pricing adjustments, given higher-than-average forward prices in the last day of the quarter (US$ 4.7/t higher q/q) and an enhanced product portfolio (US$ 1.4/t higher q/q).
The iron ore fines premium totaled US$ -1.9/t, improving US$ 1.4/t q/q, driven by enhanced average quality of the product portfolio. This is a result of increased availability of high-quality products, mainly from the Northern System, allowing for higher BRBF sales and the proactive decision to reduce direct sales of high-silica products due to market conditions. The all-in premium improved by US$ 1.8/t, totaling US$ 1.7/t, driven by a higher share of pellet sales.
Price realization iron ore fines – US$/t 3Q24
1 Includes quality (US$ 0.4/t) and premiums/discounts and commercial conditions (US$ -2.3/t). 2 Adjustment as a result of provisional prices booked in 2Q24 at US$ 106.5/t. 3 Difference between the weighted average of the prices provisionally set at the end of 3Q24 at US$ 108.8/t based on forward curves and US$ 99.7/t from the 3Q24 average reference price. 4 Includes freight pricing mechanisms of CFR sales freight recognition. 5 Vale’s price is net of taxes.
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|
Costs and expenses
Iron ore fines and pellets all-in costs (cash cost break-even landed in China)
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| C1 cash cost, incl. 3rd-party purchases1 | 24.0 | 25.6 | -6% | 28.2 | -15% | 26.5 | 26.2 | 1% | |
| C1 cash cost, ex-3rd-party purchases | 20.6 | 21.9 | -6% | 24.9 | -17% | 22.9 | 22.9 | 0% | |
| 3rd-party purchases cost adjustments | 3.3 | 3.7 | -10% | 3.4 | -2% | 3.6 | 3.3 | 9% | |
| Freight cost2 | 20.6 | 18.9 | 9% | 19.0 | 8% | 19.7 | 18.2 | 9% | |
| Distribution cost | 2.5 | 2.6 | -3% | 2.6 | -6% | 2.5 | 2.7 | -6% | |
| Expenses3 & royalties | 5.4 | 6.2 | -12% | 6.3 | -14% | 6.0 | 5.8 | 4% | |
| Moisture adjustment | 4.3 | 4.6 | -5% | 4.9 | -12% | 4.7 | 4.6 | 1% | |
| Iron ore fines quality adjustment | 1.9 | (0.8) | n.a. | 3.3 | -41% | 2.3 | (0.2) | n.a. | |
| Iron ore fines all-in costs | 58.7 | 57.1 | 3% | 64.3 | -9% | 61.7 | 57.3 | 8% | |
| Pellet business contribution | (3.6) | (3.4) | 7% | (3.1) | 15% | (3.6) | (3.2) | 11% | |
| Iron ore fines and pellets all-in costs | 55.1 | 53.7 | 2% | 61.2 | -10% | 58.1 | 54.1 | 8% | |
| Sustaining investments (fines and pellets) | 8.2 | 7.8 | 5% | 7.9 | 4% | 8.9 | 7.9 | 12% | |
| Iron ore fines and pellets all-in costs⁴ | 63.3 | 61.5 | 3% | 69.1 | -8% | 67.0 | 62.0 | 8% | |
| ¹ Ex-ROM, ex-royalties and FOB (US$/t). 2 Ex-bunker oil hedge. 3 Net of depreciation and associates and JV’s EBITDA . Including stoppage expenses. ⁴ Includes sustaining. | |||||||||
Iron ore fines C1 production costs
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ t/t | 9M24 | 9M23 | ∆ y/y | |
| C1 production costs, ex-3rd-party purchases | 18.5 | 21.3 | -13% | 24.4 | -24% | 24.6 | 24.5 | 0% | |
| C1 cash cost, ex-3rd-party purchases | 20.6 | 21.9 | -6% | 24.9 | -17% | 25.2 | 23.5 | 7% |
The C1 cash cost, ex-third-party purchases, reached US$ 20.6/t in Q3, US$ 4.3/t lower q/q.
This significant C1 reduction was driven by: (i) increased production and the resulting fixed cost dilution, particularly in the Northern System; (ii) lower maintenance costs, following the strategy to concentrate activities in the 1H24; (iii) the positive impact of the BRL depreciation; and (iv) continued progress of the efficiency program. These gains were partially offset by the impact of the inventory turnover effect. The C1 production cost reached US$ 18.2/t in September, indicating a solid performance for the upcoming quarter.
C1 cash cost, ex-third-party purchase costs - US$/t, 3Q24 vs. 2Q24
1 Including demurrage (US$ -0.4/t) and others (US$ -0.2/t).
Vale's maritime freight cost averaged US$ 20.6/t, US$ 6.1/t lower than the Brazil-China C3 route average in Q3. The US$ 1.6/t sequential increase in freight cost is largely explained by a larger exposure to spot freight rates (US$ 1.1/t higher q/q), driven by Vale’s usual shipping seasonality and higher bunker fuel costs (US$ 0.4/t higher q/q). CFR sales totaled 59.8 Mt in Q3, representing 86% of total iron ore fines sales.
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|
Pellets
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Net revenues | 1,502 | 1,388 | 8% | 1,394 | 8% | 4,481 | 4,123 | 9% | |
| Cash costs1 | (747) | (669) | 12% | (705) | 6% | (2,191) | (1,991) | 10% | |
| Pre-operational & stoppage expenses | (3) | (6) | -50% | (2) | 50% | (10) | (15) | -33% | |
| Expenses2 | (5) | (1) | 400% | (1) | 400% | (1) | (8) | -88% | |
| Leased pelletizing plants EBITDA | 43 | 39 | 10% | 38 | 13% | 117 | 91 | 29% | |
| EBITDA | 790 | 751 | 5% | 724 | 9% | 2,396 | 2,200 | 9% | |
| Iron ore pellets realized price (CFR/FOB, US$/t) | 148.2 | 161.2 | -8% | 157.2 | -6% | 158.7 | 161.3 | -2% | |
| Cash costs1 per ton (US$/t) | 73.6 | 77.7 | -5% | 79.5 | -7% | 77.6 | 77.9 | 0% | |
| EBITDA per ton (US$/t) | 77.9 | 87.2 | -11% | 81.7 | -5% | 84.9 | 86.1 | -1% | |
| 1 Including iron ore, leasing, freight, overhead, energy and others. 2 Including selling, R&D and others. | |||||||||
Pellets sales reached 10.1 Mt, 14% higher q/q and 18% higher y/y, driven by higher pellet production and healthy demand.
The average realized iron ore pellets price was US$ 148.2/t, US$ 9.0/t lower q/q, due to lower 65%Fe index iron ore prices (US$ 12.0/t lower q/q), which were partially offset by the positive effect of pricing mechanisms (US$ 2.9/t).
Pellets’ cash costs per ton was 5% lower q/q, totaling US$ 73.6/t, mainly as a result of increased production and the resulting fixed cost dilution. FOB sales represented 61% of total sales.
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Highlights
| US$ million (unless otherwise stated) | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Net Revenues | 1,583 | 1,718 | -8% | 1,622 | -2% | 4,639 | 5,622 | -17% | |
| Costs¹ | (1,313) | (1,338) | -2% | (1,171) | 12% | (3,621) | (4,083) | -11% | |
| SG&A and Other expenses¹ | 30 | 75 | -60% | 22 | 36% | 58 | 81 | -28%. | |
| Pre-operating and stoppage expenses¹ | (1) | (1) | 0% | (3) | -67% | (5) | (5) | 0% | |
| R&D expenses | (74) | (75) | -1% | (70) | 6% | (195) | (187) | 4% | |
| EBITDA from associates and JVs² | 23 | 6 | 283% | 7 | 229% | 36 | 6 | 500% | |
| Adjusted EBITDA | 248 | 385 | -36% | 407 | -39% | 912 | 1,434 | -36% | |
| Depreciation and amortization | (212) | (257) | -18% | (229) | -7% | (664) | (760) | -13% | |
| Adjusted EBIT | 36 | 128 | -72% | 178 | -80% | 248 | 674 | -63% | |
| ¹ Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. ² Starting in 3Q24, PTVI EBITDA is included in EBITDA from associates and JVs, reflecting VBM's ownership of 33.9% in PTVI. | |||||||||
Adjusted EBITDA
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Nickel | (66) | 100 | n.a. | 108 | n.a. | 59 | 663 | -91% | |
| Copper | 360 | 269 | 34% | 351 | 3% | 995 | 725 | 37% | |
| Others | (46) | 16 | n.a. | (52) | -12% | (142) | 46 | n.a. | |
| Total | 248 | 385 | -36% | 407 | -39% | 912 | 1,434 | -36% |
EBITDA decreased by 36% y/y, largely impacted by the nickel segment.
In Copper, EBITDA increased by 34% y/y, positively impacted by higher realized copper prices (US$ 79 million) and stronger by-product revenues (US$ 45 million), partially offset by the impact of the conveyor belt occurred at Salobo 3 (US$ -21 million) and other effects (US$ -13 million), included in Others.
In Nickel, EBITDA decreased to US$ -66 million in Q3, mainly explained by lower realized nickel prices (US$ -192 million), the PTVI deconsolidation (US$ -167 million) and higher volumes (US$ -30 million). These were partially offset by stronger by-products revenues (US$ 21 million) and Others (US$ 192 million), largely explained by a decrease in external feed costs.
EBITDA variation – US$ million (3Q24 vs. 3Q23)
1 Includes variations of (i) negative US$ 21 million in PPA, (ii) positive US$ 46 million in currency variation, (iii) positive US$ 61 million in costs and expenses and (iv) EBITDA from associates and JVs of US$20 million in others. 2 Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027.
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|
Copper
| US$ million (unless otherwise stated) | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| LME copper price (US$/t) | 9,210 | 8,356 | 10% | 9,753 | -6% | 9,131 | 8,585 | 6% | |
| Average realized copper price (US$/t) | 9,016 | 7,731 | 17% | 9,202 | -2% | 8,651 | 7,969 | 9% | |
| Volume sold – copper (kt) | 61 | 62 | -2% | 58 | 5% | 176 | 158 | 12% | |
| Net Revenues | 759 | 660 | 15% | 779 | -3% | 2,177 | 1,722 | 26% | |
| Costs¹ | (366) | (341) | 7% | (391) | -6% | (1,086) | (930) | 17% | |
| Selling and other expenses¹ | (3) | (3) | 0% | (8) | -63% | (14) | 40 | n.a. | |
| Pre-operating and stoppage expenses¹ | - | - | - | - | - | - | (4) | -100% | |
| R&D expenses | (30) | (47) | -36% | (29) | 3% | (82) | (103) | -20% | |
| Adjusted EBITDA | 360 | 269 | 34% | 351 | 3% | 995 | 725 | 37% | |
| Depreciation and amortization | (39) | (49) | -20% | (41) | -5% | (120) | (120) | 0% | |
| Adjusted EBIT | 321 | 220 | 46% | 310 | 4% | 875 | 605 | 45% | |
| ¹ Net of depreciation and amortization | |||||||||
Adjusted EBITDA
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Salobo | 311 | 251 | 24% | 306 | 2% | 878 | 655 | 34% | |
| Sossego | 98 | 59 | 66% | 44 | 123% | 159 | 128 | 24% | |
| Other¹ | (49) | (41) | 20% | 1 | n.a. | (42) | (58) | -28% | |
| Total | 360 | 269 | 34% | 351 | 3% | 995 | 725 | 37% | |
| ¹ Includes US$ 25 million in R&D expenses related to the Hu’u project in 3Q24 and the unrealized provisional price adjustments. | |||||||||
Revenues
Net revenues increased by 17% y/y mainly because of the increase in realized copper prices, as well as higher by-products revenues. The higher by-product revenue resulted from the increase in market prices for gold.
The average realized copper price was up 17% y/y mainly due to higher average LME price. Sequentially, the average realized copper price was down 2%, on the back of lower LME prices.
Average realized copper price 3Q24 – US$/t
Note: Vale’s copper products are sold
on a provisional pricing basis, with final prices determined in a future period. The average copper realized price excludes the mark-to-market
of open invoices based on the copper price forward curve (unrealized provisional price adjustments) and includes the prior and current
period price adjustments (realized provisional price adjustments).
1 Current-period price adjustments: Final invoices that were provisionally priced and settled within the quarter. 2 Prior-period
price adjustment: Final invoices of sales provisionally priced in prior quarters. 3 TC/RCs, penalties, premiums, and discounts
for intermediate products
- 14 - | |
|
Costs & Expenses
All-in costs (EBITDA breakeven)
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| COGS | 5,962 | 5,512 | 8% | 6,726 | -11% | 6,172 | 5,895 | 5% | |
| By-product revenues | (3,710) | (2,960) | 25% | (3,714) | 0% | (3,550) | (2,952) | 20% | |
| COGS after by-product revenues | 2,252 | 2,552 | -12% | 3,012 | -25% | 2,622 | 2,943 | -11% | |
| Other expenses¹ | 96 | 152 | -37% | 168 | -43% | 137 | 70 | 96% | |
| Total costs | 2,348 | 2,704 | -13% | 3,180 | -26% | 2,759 | 3,013 | -8% | |
| TC/RCs penalties, premiums and discounts | 503 | 560 | -10% | 472 | 7% | 499 | 543 | -8% | |
| EBITDA breakeven²,³ | 2,851 | 3,264 | -13% | 3,651 | -22% | 3,258 | 3,556 | -8% | |
| ¹ Includes sales expenses, R&D associated with Salobo and Sossego, pre-operating and stoppage expenses and other expenses. ² Considering only the cash effect of streaming transactions, copper operations EBITDA break-even would increase to US$ 4,799/t. ³ The realized price to be compared to the EBITDA break-even should be the copper realized price before discounts (US$ 9,518/t), given that TC/RCs, penalties, and other discounts are already part of the EBITDA break-even build-up. | |||||||||
All-in costs decreased by 13% y/y, primarily due to higher unit by-products revenues.
Unit COGS increased by 8% y/y mainly driven by higher costs at Salobo, due to repairs after the fire occurred at the conveyor belt in June. Unit COGS at Sossego performed stably.
Unit COGS, net of by-products, decreased by 12% y/y mainly reflecting the positive impact of by-products revenues, at both Salobo and Sossego.
All-in costs (EBITDA breakeven)
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Salobo | 1,623 | 2,130 | -24% | 2,319 | -30% | 1,903 | 2,358 | -19% | |
| Sossego | 3,648 | 3,751 | -3% | 5,652 | -35% | 4,824 | 4,511 | 7% |
Unit expenses were 37% lower y/y, mainly as a result of lower R&D expenditures.
- 15 - | |
|
Nickel
| US$ million (unless otherwise stated) | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| LME nickel price (US$/t) | 16,259 | 20,344 | -20% | 18,415 | -12% | 17,072 | 22,890 | -25% | |
| Average realized nickel price (US$/t) | 17,012 | 21,237 | -20% | 18,638 | -9% | 17,478 | 23,203 | -25% | |
| Volume sold – nickel (kt) | 41 | 39 | 4% | 34 | 19% | 108 | 120 | -10% | |
| Volume sold - copper (kt) | 14 | 12 | 15% | 18 | -23% | 52 | 53 | -1% | |
| Net Revenues | 904 | 1,023 | -12% | 879 | 3% | 2,619 | 3,566 | -27% | |
| Costs¹ | (936) | (925) | 1% | (731) | 28% | (2,441) | (2,760) | -12% | |
| Selling and other expenses¹ | (17) | 31 | n.a. | (6) | 183% | (46) | (58) | -21% | |
| Pre-operating and stoppage expenses¹ | (1) | (1) | 0% | (3) | -67% | (5) | (1) | 400% | |
| R&D expenses | (34) | (28) | 21% | (31) | 10% | (86) | (84) | 2% | |
| EBITDA from associates and JVs² | 18 | - | n.a. | - | n.a. | 18 | - | n.a. | |
| Adjusted EBITDA | (66) | 100 | n.a. | 108 | n.a. | 59 | 663 | -91% | |
| Depreciation and amortization | (167) | (208) | -20% | (187) | -11% | (536) | (640) | -16% | |
| Adjusted EBIT | (233) | (108) | 116% | (79) | 195% | (477) | 23 | n.a. | |
| ¹ Net of depreciation and amortization. ² Starting in 3Q24, PTVI EBITDA is included in EBITDA from associates and JVs, reflecting VBM's ownership of 33.9% in PTVI. Historical figures were not restated. | |||||||||
Adjusted EBITDA
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Sudbury1 | 16 | 45 | -66% | 16 | -3% | 95 | 419 | -77% | |
| Voisey’s Bay & Long Harbour | (56) | (67) | -16% | (76) | -26% | (166) | (176) | -6% | |
| Standalone Refineries2 | 9 | (28) | n.a. | 21 | -57% | 24 | 39 | -38% | |
| Onça Puma | 17 | 15 | 14% | (17) | n.a. | (46) | 51 | n.a. | |
| PTVI (historical) | - | 104 | -100% | 79 | -100% | 137 | 400 | -66% | |
| Associates and JVs | 18 | - | n.a. | - | n.a. | 18 | - | n.a. | |
| Others³ | (70) | 31 | n.a. | 85 | n.a. | (3) | (70) | -96% | |
| Total | (66) | 100 | n.a. | 108 | n.a. | 59 | 663 | -91% | |
| ¹ Includes the Thompson operations. ² Comprises the sales results for Clydach and Matsusaka refineries. ³ Includes intercompany eliminations, provisional price adjustments and inventories adjustments. Hedge results have been relocated to each nickel business operation. ³ Includes proportionate EBITDA from PTVI, starting from 3Q24. Historical figures include the consolidated results from PTVI. | |||||||||
Revenues
Revenues decreased by 12% y/y mainly as a result of lower nickel prices, partially offset by higher by-products revenues. The higher by-products revenues resulted primarily from higher copper sales and prices.
The average realized nickel price was US$ 17,012/t, down 20% y/y, mainly due to 20% lower LME nickel average price. On a sequential basis, the realized nickel price was down 9% mainly as a result of 12% lower LME prices.
In 3Q24, the average realized nickel price was 5% higher than the LME average, mainly due to the 74% share of Upper Class I products in the mix of North Atlantic, with average US$ 1,080/t premiums.
Average realized nickel price 3Q24 – US$/t
- 16 - | |
|
Costs & Expenses
All-in costs (EBITDA breakeven)
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| COGS ex. external feed | 28,066 | 23,039 | 22% | 20,755 | 35% | 23,316 | 22,180 | 5% | |
| COGS² | 23,019 | 23,581 | -2% | 21,306 | 8% | 22,253 | 23,061 | -4% | |
| By-product revenues² | (5,140) | (4,807) | 7% | (7,097) | -28% | (6,725) | (6,590) | 2% | |
| COGS after by-product revenues | 17,878 | 18,774 | -5% | 14,210 | 26% | 15,528 | 16,471 | -6% | |
| Other expenses³ | 1,208 | (81) | n.a. | 1,109 | 9% | 1,203 | 1,194 | 1% | |
| EBITDA from associates & JVs4 | (442) | - | n.a. | - | n.a. | (167) | - | n.a. | |
| Total Costs | 18,644 | 18,693 | 0% | 15,319 | 22% | 16,564 | 17,665 | -6% | |
| Nickel average aggregate (premium) discount | (571) | (123) | 364% | (319) | 79% | (474) | (77) | 516% | |
| EBITDA breakeven5 | 18,073 | 18,570 | -3% | 15,000 | 20% | 16,090 | 17,588 | -9% | |
| ¹ Starting in 3Q24, COGS ex. external feed excludes 3rd party feed and PTVI offtake. Historical figures have not been adjusted. ² Excluding marketing activities. 3 Includes R&D, sales expenses and pre-operating & stoppage. 4 Starting from 3Q24, it includes the proportionate results from PTVI (33.9% owned by VBM). 5Considering only the cash effect of streaming transactions, nickel operations EBITDA break-even would increase to US$ 18,264/t in 3Q24. | |||||||||
All-in costs decreased by 3% y/y, primarily due to higher by-product revenues, lower unit COGS and higher realized premiums. Sequentially, they were 22% higher, mainly due to the increase in unit costs.
Unit COGS, excluding external feed purchases, was 22% higher y/y, mainly reflecting the impact of the PTVI deconsolidation. Excluding the effect of PTVI deconsolidation, the unit COGS, excluding 3rd-party feed purchases, was US$ 515/t lower y/y.
Unit COGS, excluding external feed purchases 3Q24 vs. 3Q23 adjusted – US$/t
¹ Reflects the cost of the PTVI offtake at the purchase price and excludes the costs associated with volumes that were not entitled to Vale Base Metals.
Unit COGS was down 2% y/y as a result of lower acquisition costs for external feed in the refineries and Canadian operations, due to nickel prices, as well as because of the continued ramp-up of Voisey’s Bay. These effects were partially offset by the increase in maintenance costs in Sudbury. Unit costs also decreased at Onça Puma, driven by higher fixed costs dilution. Sequentially, unit costs increased by 8%, mainly reflecting the impact of the PTVI deconsolidation.
Unit by-product revenues were 7% higher y/y, driven by higher copper sales and prices. Q/q, they were 26% lower, mainly driven by lower copper sales, as mine and mill maintenance performed in the quarter reduced copper concentrates availability for sale, as well as lower copper prices q/q.
Unit COGS, net of by-products, by operation
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Sudbury¹,² | 15,175 | 18,723 | -19% | 15,219 | 0% | 13,715 | 14,868 | -8% | |
| Voisey’s Bay & Long Harbour² | 21,953 | 30,316 | -28% | 31,114 | -29% | 24,130 | 29,225 | -17% | |
| Standalone refineries²,³ | 16,876 | 23,372 | -28% | 16,880 | 0% | 17,687 | 22,342 | -21% | |
| Onça Puma | 10,318 | 11,543 | -11% | 21,705 | -52% | 18,494 | 11,813 | 57% | |
| ¹ Sudbury costs include Thompson costs. ² A large portion of Sudbury, Clydach, Matsusaka and Long Harbour finished nickel production is derived from intercompany transfers, as well as from the purchase of ore or nickel intermediates from third parties. These transactions are valued at fair market value. ³ Comprises the unit cash costs for Clydach and Matsusaka refineries. | |||||||||
Expenses were higher y/y as 3Q23 was positively affected by one off settlement of royalties.
- 17 - | |
Except where otherwise indicated, the operational and financial information in this release is based on the consolidated figures in accordance
with IFRS. Our quarterly financial statements are reviewed by the company’s independent auditors. The main subsidiaries that are
consolidated are the following: Companhia Portuária da Baía de Sepetiba, Vale Manganês S.A., Minerações
Brasileiras Reunidas S.A., Vale Base Metals Ltd., Tecnored Desenvolvimento Tecnológico S.A., Aliança Geração
de Energia S.A., Vale Holdings B.V, Vale Canada Limited, Vale International S.A., Vale Malaysia Minerals Sdn. Bhd. and Vale Oman Pelletizing
Company LLC.
This press release may include statements about Vale’s current expectations about future events or results (forward-looking statements). Many of those forward-looking statements can be identified by the use of forward-looking words such as ”anticipate,” ”believe,” ”could,” ”expect,” ”should,” ”plan,” ”intend,” ”estimate” “will” and ”potential,” among others. All forward-looking statements involve various risks and uncertainties. Vale cannot guarantee that these statements will prove correct. These risks and uncertainties include, among others, factors related to: (a) the countries where Vale operates, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. Vale cautions you that actual results may differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. Vale undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information or future events or for any other reason. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports that Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and, in particular, the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.
The information contained in this press release includes financial measures that are not prepared in accordance with IFRS. These non-IFRS measures differ from the most directly comparable measures determined under IFRS, but we have not presented a reconciliation to the most directly comparable IFRS measures, because the non-IFRS measures are forward-looking and a reconciliation cannot be prepared without unreasonable effort.
- 18 - | |
 |
Annex 1: Detailed Financial Information
Simplified financial statements
| Income Statement | |||||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Net operating revenue | 9,553 | 10,623 | -10% | 9,920 | -4% | 27,932 | 28,730 | -3% | |
| Cost of goods sold and services rendered | (6,281) | (6,309) | 0% | (6,349) | -1% | (17,997) | (17,198) | 5% | |
| Gross profit | 3,272 | 4,314 | -24% | 3,571 | -8% | 9,935 | 11,532 | -14% | |
| Gross margin (%) | 34.3 | 40.6 | -6 p.p. | 36.0 | -2 p.p. | 35.6 | 40.1 | -4 p.p. | |
| Selling and administrative expenses | (139) | (150) | -7% | (137) | 1% | (416) | (407) | 2% | |
| Research and development expenses | (192) | (188) | 2% | (189) | 2% | (537) | (492) | 9% | |
| Pre-operating and operational stoppage | (89) | (115) | -23% | (91) | -2% | (272) | (342) | -20% | |
| Other operational expenses, net | (321) | (511) | -37% | (289) | 11% | (860) | (1,118) | -23% | |
| Impairment reversal (impairment and disposals) of non-current assets, net | 1,144 | (75) | n.a. | 1,010 | 13% | 2,148 | (145) | n.a. | |
| Operating income | 3,675 | 3,275 | 12% | 3,875 | -5% | 9,998 | 9,028 | 11% | |
| Financial income | 129 | 100 | 29% | 78 | 65% | 316 | 327 | -3% | |
| Financial expenses | (373) | (362) | 3% | (365) | 2% | (1,077) | (1,079) | 0% | |
| Other financial items, net | (130) | (123) | 6% | (965) | -87% | (1,302) | (320) | 307% | |
| Equity results and other results in associates and joint ventures | (574) | 94 | n.a. | 112 | n.a. | (338) | 44 | n.a. | |
| Income before income taxes | 2,727 | 2,984 | -9% | 2,735 | 0% | 7,597 | 8,000 | -5% | |
| Current tax | (320) | (278) | 15% | (638) | -50% | (1,692) | (900) | 88% | |
| Deferred tax | (16) | 151 | n.a. | 672 | n.a. | 942 | (1,437) | n.a. | |
| Net income | 2,391 | 2,857 | -16% | 2,769 | -14% | 6,847 | 5,663 | 21% | |
| Net income (loss) attributable to noncontrolling interests | (21) | 21 | n.a. | - | n.a. | (13) | 98 | n.a. | |
| Net income attributable to Vale's shareholders | 2,412 | 2,836 | -15% | 2,769 | -13% | 6,860 | 5,565 | 23% | |
| Net income | 2,391 | 2,857 | -16% | 2,769 | -14% | 6,847 | 5,663 | 21% | |
| Net income (Loss) attributable to Vale's to noncontrolling interests | (21) | 21 | n.a. | - | n.a. | (13) | 98 | n.a. | |
| Net income attributable to Vale's shareholders | 2,412 | 2,836 | -15% | 2,769 | -13% | 6,860 | 5,565 | 23% | |
| Earnings per share (attributable to the Company's shareholders - US$): | |||||||||
| Basic and diluted earnings per share (attributable to the Company's shareholders - US$) | 0.56 | 0.66 | -15% | 0.65 | -14% | 1.60 | 1.27 | 26% | |
Equity income (loss) by business segment
| US$ million | 3Q24 | % | 3Q23 | % | ∆ y/y | 2Q24 | % | ∆ q/q | 9M24 | % | 9M23 | % | ∆ y/y | |
| Iron Ore Solutions | 88 | 112 | 87 | 93 | 1% | 109 | 95 | -19% | 255 | 98 | 80 | 77 | 219% | |
| Energy Transition Metals | 5 | 6 | - | - | - | - | - | - | 5 | 2 | - | - | - | |
| Others | (14) | (18) | 7 | 7 | n.a. | 6 | 5 | n.a. | (1) | - | 24 | 23 | n.a. | |
| Total | 79 | 100 | 94 | 100 | 1% | 115 | 100 | -19% | 259 | 100 | 104 | 100 | 219% |
- 19 - | |
|
| Balance sheet | ||||||
| US$ million | 9/30/24 | 9/30/23 | ∆ y/y | 6/30/24 | ∆ q/q | |
| Assets | ||||||
| Current assets | 13,800 | 14,673 | -6% | 14,829 | -7% | |
| Cash and cash equivalents | 4,596 | 3,967 | 16% | 6,479 | -29% | |
| Short term investments | 53 | 60 | -12% | 61 | -13% | |
| Accounts receivable | 3,001 | 3,348 | -10% | 2,332 | 29% | |
| Other financial assets | 223 | 426 | -48% | 168 | 33% | |
| Inventories | 4,946 | 5,114 | -3% | 4,793 | 3% | |
| Recoverable taxes | 714 | 1,355 | -47% | 659 | 8% | |
| Judicial deposits | - | - | - | - | - | |
| Other | 267 | 403 | -34% | 337 | -21% | |
| Non-current assets held for sale | - | - | - | - | - | |
| Non-current assets | 13,378 | 14,060 | -5% | 13,294 | 1% | |
| Judicial deposits | 606 | 1,296 | -53% | 585 | 4% | |
| Other financial assets | 155 | 586 | -74% | 160 | -3% | |
| Recoverable taxes | 1,385 | 1,264 | 10% | 1,329 | 4% | |
| Deferred income taxes | 9,875 | 9,682 | 2% | 9,931 | -1% | |
| Other | 1,357 | 1,232 | 10% | 1,289 | 5% | |
| Fixed assets | 61,708 | 60,256 | 2% | 58,492 | 5% | |
| Total assets | 88,886 | 88,989 | 0% | 86,615 | 3% | |
| Liabilities | ||||||
| Current liabilities | 15,174 | 13,644 | 11% | 13,743 | 10% | |
| Suppliers and contractors | 5,353 | 5,582 | -4% | 4,769 | 12% | |
| Loans, borrowings and leases | 842 | 779 | 8% | 910 | -7% | |
| Leases | 157 | 197 | -20% | 177 | -11% | |
| Other financial liabilities | 1,550 | 1,538 | 1% | 1,467 | 6% | |
| Taxes payable | 1,257 | 630 | 100% | 1,242 | 1% | |
| Settlement program ("REFIS") | 396 | 407 | -3% | 383 | 3% | |
| Provisions for litigation | 117 | 119 | -2% | 115 | 2% | |
| Employee benefits | 887 | 824 | 8% | 724 | 23% | |
| Liabilities related to associates and joint ventures | 2,322 | 899 | 158% | 1,605 | 45% | |
| Liabilities related to Brumadinho | 978 | 1,324 | -26% | 974 | 0% | |
| De-characterization of dams and asset retirement obligations | 937 | 845 | 11% | 956 | -2% | |
| Other | 378 | 500 | -24% | 421 | -10% | |
| Liabilities associated with non-current assets held for sale | - | - | - | - | - | |
| Non-current liabilities | 34,000 | 35,858 | -5% | 34,485 | -1% | |
| Loans, borrowings and leases | 12,578 | 11,777 | 7% | 12,860 | -2% | |
| Leases | 608 | 1,283 | -53% | 1,183 | -49% | |
| Participative shareholders' debentures | 2,406 | 2,405 | 0% | 2,451 | -2% | |
| Other financial liabilities | 2,654 | 2,583 | 3% | 2,656 | 0% | |
| Settlement program (REFIS) | 1,229 | 1,744 | -30% | 1,284 | -4% | |
| Deferred income taxes | 966 | 1,343 | -28% | 806 | 20% | |
| Provisions for litigation | 814 | 1,341 | -39% | 765 | 6% | |
| Employee benefits | 1,284 | 1,231 | 4% | 1,221 | 5% | |
| Liabilities related to associates and joint ventures | 2,352 | 2,320 | 1% | 2,102 | 12% | |
| Liabilities related to Brumadinho | 1,412 | 1,873 | -25% | 1,438 | -2% | |
| Decharacterization of dams and asset retirement obligations | 5,511 | 6,111 | -10% | 5,484 | 0% | |
| Streaming transactions | 1,945 | 1,621 | 20% | 1,948 | 0% | |
| Others | 241 | 226 | 7% | 287 | -16% | |
| Total liabilities | 49,174 | 49,502 | -1% | 48,228 | 2% | |
| Shareholders' equity | 39,712 | 39,487 | 1% | 38,387 | 3% | |
| Total liabilities and shareholders' equity | 88,886 | 88,989 | 0% | 86,615 | 3% |
- 20 - | |
|
| Cash flow | ||||||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |||||
| Cash flow from operations | 2,757 | 4,128 | -33% | 2,353 | 17% | |||||
| Interest on loans and borrowings paid | (247) | (174) | 42% | (211) | 17% | |||||
| Cash received on settlement of Derivatives, net | (30) | 70 | n.a. | 81 | n.a. | |||||
| Payments related to Brumadinho | (188) | (292) | -36% | (265) | -29% | |||||
| Payments related to decharacterization of dams | (154) | (146) | 5% | (132) | 17% | |||||
| Interest on participative shareholders debentures paid | - | - | - | (149) | -100% | |||||
| Income taxes (including settlement program) paid | (471) | (720) | -35% | (466) | 1% | |||||
| Net cash generated by operating activities | 1,667 | 2,866 | -42% | 1,211 | 38% | |||||
| Cash flow from investing activities | ||||||||||
| Short-term investment | 67 | 68 | -1% | 28 | 139% | |||||
| Capital expenditures | (1,398) | (1,464) | -5% | (1,328) | 5% | |||||
| Payments related to Samarco dam failure | (113) | (317) | -64% | (105) | 8% | |||||
| Dividends received from joint ventures and associates | 12 | - | n.a. | 39 | -69% | |||||
| Cash received (paid) from disposal and acquisition of investments, net | 107 | - | n.a. | 2,610 | -96% | |||||
| Other investment activities, net | (3) | 14 | n.a. | (4) | -25% | |||||
| Net cash used in investing activities | (1,328) | (1,699) | -22% | 1,240 | n.a. | |||||
| Cash flow from financing activities | ||||||||||
| Loans and financing: | ||||||||||
| Loans and borrowings from third parties | 962 | 150 | 541% | 1,090 | -12% | |||||
| Payments of loans and borrowings from third parties | (1,584) | (13) | 12085% | (530) | 199% | |||||
| Payments of leasing | (48) | (47) | 2% | (44) | 9% | |||||
| Payments to shareholders: | ||||||||||
| Dividends and interest on capital paid to Vale's shareholders | (1,586) | (1,678) | 0% | - | n.a. | |||||
| Share buyback program | (20) | (546) | -96% | (114) | -82% | |||||
| Net cash used in financing activities | (2,276) | (2,134) | 7% | 402 | n.a. | |||||
| Net increase (decrease) in cash and cash equivalents | (1,937) | (967) | 100% | 2,853 | n.a. | |||||
| Cash and cash equivalents in the beginning of the period | 6,479 | 4,983 | 30% | 3,790 | 71% | |||||
| Effect of exchange rate changes on cash and cash equivalents | (21) | (49) | -57% | (164) | -87% | |||||
| Cash and cash equivalents from subsidiaries acquired and sold, net | 75 | - | - | - | - | |||||
| Cash and cash equivalents at the end of period | 4,596 | 3,967 | 16% | 6,479 | -29% | |||||
| Non-cash transactions: | ||||||||||
| Additions to property, plant and equipment - capitalized loans and borrowing costs | 11 | 5 | 120% | 8 | 38% | |||||
| Cash flow from operating activities | ||||||||||
| Income before income taxes | 2,727 | 2,984 | -9% | 2,735 | 0% | |||||
| Adjusted for: | ||||||||||
| Review of estimates related to Brumadinho | 48 | 184 | - | (14) | n.a. | |||||
| Review of estimates for decharacterization of dams | - | - | - | (70) | -100% | |||||
| Equity results and other results in associates and joint ventures | 574 | (94) | n.a. | (112) | n.a. | |||||
| Impairment and gains (losses) on disposal of non-current assets, net | (1,144) | 75 | n.a. | (1,010) | 13% | |||||
| Depreciation, depletion and amortization | 748 | 780 | -4% | 793 | -6% | |||||
| Financial results, net | 374 | 385 | -3% | 1,252 | -70% | |||||
| Change in assets and liabilities | ||||||||||
| Accounts receivable | (672) | (410) | 64% | (167) | 302% | |||||
| Inventories | (145) | (97) | 49% | 165 | n.a. | |||||
| Suppliers and contractors | 471 | 480 | -2% | (528) | n.a. | |||||
| Other assets and liabilities, net | (224) | (159) | 41% | (691) | -68% | |||||
| Cash flow from operations | 2,757 | 4,128 | -33% | 2,353 | 17% | |||||
- 21 - | |
|
Reconciliation of IFRS and “non-GAAP” information
| (a) Adjusted EBIT | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Net operating revenues | 9,553 | 10,623 | -10% | 9,920 | -4% | |
| COGS | (6,281) | (6,309) | 0% | (6,349) | -1% | |
| Sales and administrative expenses | (139) | (150) | -7% | (137) | 1% | |
| Research and development expenses | (192) | (188) | 2% | (189) | 2% | |
| Pre-operating and stoppage expenses | (89) | (115) | -23% | (91) | -2% | |
| Brumadinho event and dam decharacterization of dams | (126) | (305) | -59% | 1 | n.a. | |
| Other operational expenses, net1 | (101) | (159) | -36% | (208) | -51% | |
| EBITDA from associates and JVs | 242 | 254 | -5% | 253 | -4% | |
| Adjusted EBIT | 2,867 | 3,651 | -21% | 3,200 | -10% | |
| ¹ Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24 and US$ 47 million in 3Q23 to reflect the performance of the streaming transactions at market price. | ||||||
(b) Adjusted EBITDA | ||||||
|
EBITDA defines profit or loss before interest, tax, depreciation, depletion and amortization. The definition of Adjusted EBITDA for the Company is the operating income or loss plus EBITDA associates and joint ventures, and excluding the amounts charged as (i) depreciation, depletion and amortization and (ii) impairment reversal (impairment and disposals) of non-current assets. However, our adjusted EBITDA is not the measure defined as EBITDA under IFRS and may possibly not be comparable with indicators with the same name reported by other companies. Adjusted EBITDA should not be considered as a substitute for operational profit or as a better measure of liquidity than operational cash flow, which are calculated in accordance with IFRS. Vale provides its adjusted EBITDA to give additional information about its capacity to pay debt, carry out investments and cover working capital needs. The following tables shows the reconciliation between adjusted EBITDA and operational cash flow and adjusted EBITDA and net income, in accordance with its statement of changes in financial position. The definition of Adjusted EBIT is Adjusted EBITDA plus depreciation, depletion and amortization. | ||||||
| Reconciliation between adjusted EBITDA and operational cash flow | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Adjusted EBITDA | 3,615 | 4,431 | -18% | 3,993 | -9% | |
| Working capital: | ||||||
| Accounts receivable | (672) | (410) | 64% | (167) | 302% | |
| Inventories | (145) | (97) | 49% | 165 | n.a. | |
| Suppliers and contractors | 471 | 480 | -2% | (528) | n.a. | |
| Review of estimates related to Brumadinho | 48 | 184 | -74% | (14) | n.a. | |
| Review of estimates related to decharacterization of dams | - | - | - | (70) | n.a. | |
| Others | (560) | (460) | 22% | (1,026) | -45% | |
| Cash flow | 2,757 | 4,128 | -33% | 2,353 | 17% | |
| Income taxes paid (including settlement program) | (471) | (720) | -35% | (466) | 1% | |
| Interest on loans and borrowings paid | (247) | (174) | 42% | (211) | 17% | |
| Payments related to Brumadinho event | (188) | (292) | -36% | (265) | -29% | |
| Payments related to decharacterization of dams | (154) | (146) | 5% | (132) | 17% | |
| Interest on participative shareholders' debentures paid | - | - | - | (149) | n.a. | |
| Cash received on settlement of Derivatives, net | (30) | 70 | n.a. | 81 | n.a. | |
| Net cash generated by operating activities | 1,667 | 2,866 | -42% | 1,211 | 38% | |
| Reconciliation between adjusted EBITDA and net income (loss) | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Adjusted EBITDA | 3,615 | 4,431 | -18% | 3,993 | -9% | |
| Depreciation, depletion and amortization | (748) | (780) | -4% | (793) | -6% | |
| EBITDA from associates and joint ventures | (242) | (254) | -5% | (253) | -4% | |
| Impairment reversal (impairment) and results on disposals of non-current assets,net¹ | 1,050 | (122) | n.a. | 928 | 13% | |
| Operating income | 3,675 | 3,275 | 12% | 3,875 | -5% | |
| Financial results | (374) | (385) | -3% | (1,252) | -70% | |
| Equity results and other results in associates and joint ventures | (574) | 94 | n.a. | 112 | -613% | |
| Income taxes | (336) | (127) | 165% | 34 | n.a. | |
| Net income | 2,391 | 2,857 | -16% | 2,769 | -14% | |
| Net income (loss) attributable to noncontrolling interests | (21) | 21 | n.a. | - | n.a. | |
| Net income attributable to Vale's shareholders | 2,412 | 2,836 | -15% | 2,769 | -13% | |
| ¹ Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24 and US$ 47 million in 3Q23, to reflect the performance of the streaming transactions at market price. | ||||||
| (c) Net debt | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Gross debt | 13,420 | 12,556 | 7% | 13,770 | -3% | |
| Leases | 765 | 1,480 | -48% | 1,360 | -44% | |
| Cash and cash equivalents | (4,649) | (4,027) | 15% | (6,540) | -29% | |
| Net debt | 9,536 | 10,009 | -5% | 8,590 | 11% | |
- 22 - | |
|
| (d) Gross debt / LTM Adjusted EBITDA | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Gross debt and leases / LTM Adjusted EBITDA (x) | 0.8 | 0.9 | -11% | 0.8 | 0% | |
| Gross debt and leases / LTM operational cash flow (x) | 0.8 | 0.8 | 0% | 0.8 | 0% | |
| (e) LTM Adjusted EBITDA / LTM interest payments | ||||||
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Adjusted LTM EBITDA / LTM gross interest (x) | 22.4 | 23.0 | -3% | 23.6 | -5% | |
| LTM adjusted EBITDA / LTM interest payments (x) | 23.0 | 21.2 | 8% | 26.2 | -12% | |
| (f) US dollar exchange rates | ||||||
| R$/US$ | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Average | 5.5454 | 4.8803 | 14% | 5.2129 | 6% | |
| End of period | 5.4481 | 5.0076 | 9% | 5.5589 | -2% | |
- 23 - | |
|
Revenues and volumes
Net operating revenue by
business area
| US$ million | 3Q24 | % | 3Q23 | % | ∆ y/y | 2Q24 | % | ∆ q/q | 9M24 | % | 9M23 | % | ∆ y/y | |
| Iron Ore Solutions | 7,970 | 83% | 8,862 | 83% | -10% | 8,298 | 84% | -4% | 23,293 | 83% | 23,049 | 80% | 1% | |
| Fines | 6,281 | 66% | 7,331 | 69% | -14% | 6,729 | 68% | -7% | 18,302 | 66% | 18,548 | 65% | -1% | |
| ROM | 33 | 0% | 33 | 0% | 0% | 27 | 0% | 22% | 87 | 0% | 94 | 0% | -7% | |
| Pellets | 1,502 | 16% | 1,388 | 13% | 8% | 1,394 | 14% | 8% | 4,481 | 16% | 4,123 | 14% | 9% | |
| Others | 154 | 2% | 110 | 1% | 40% | 148 | 1% | 4% | 423 | 2% | 284 | 1% | 49% | |
| Energy Transition Metals | 1,583 | 17% | 1,718 | 16% | -8% | 1,622 | 16% | -2% | 4,639 | 17% | 5,588 | 19% | -17% | |
| Nickel | 692 | 7% | 833 | 8% | -17% | 639 | 6% | 8% | 1,889 | 7% | 2,777 | 10% | -32% | |
| Copper | 680 | 7% | 567 | 5% | 20% | 699 | 7% | -3% | 1,966 | 7% | 1,665 | 6% | 18% | |
| PGMs | 44 | 0% | 54 | 1% | -19% | 38 | 0% | 16% | 150 | 1% | 214 | 1% | -30% | |
| Gold as by-product¹ | 144 | 2% | 147 | 1% | -2% | 155 | 2% | -7% | 437 | 2% | 376 | 1% | 16% | |
| Silver as by-product | 13 | 0% | 8 | 0% | 63% | 12 | 0% | 8% | 35 | 0% | 30 | 0% | 17% | |
| Cobalt¹ | 8 | 0% | 14 | 0% | -43% | 2 | 0% | 300% | 20 | 0% | 57 | 0% | -65% | |
| Others² | 2 | 0% | 95 | 1% | -98% | 77 | 1% | -97% | 142 | 1% | 469 | 2% | -70% | |
| Others | - | 0% | 42 | 0% | -100% | - | 0% | 0% | - | 0% | 93 | 0% | -100% | |
| Total | 9,553 | 100% | 10,623 | 100% | -10% | 9,920 | 100% | -4% | 27,932 | 100% | 28,730 | 100% | -3% | |
| ¹ Exclude the adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23, related to the performance of streaming transactions at market price. ² Includes marketing activities. | ||||||||||||||
Net operating revenue by destination
| US$ million | 3Q24 | % | 3Q23 | % | ∆ y/y | 2Q24 | % | ∆ q/q | 9M24 | % | 9M23 | % | ∆ y/y | |
| North America | 347 | 3.6 | 398 | 3.7 | -13% | 435 | 4.4 | -20% | 1,209 | 4.3 | 1,605 | 5.6 | -25% | |
| USA | 291 | 3.0 | 323 | 3.0 | -10% | 254 | 2.6 | 15% | 788 | 2.8 | 1,265 | 4.4 | -38% | |
| Canada | 56 | 0.6 | 75 | 0.7 | -25% | 181 | 1.8 | -69% | 421 | 1.5 | 340 | 1.2 | 24% | |
| South America | 1,010 | 10.6 | 1,018 | 9.6 | -1% | 974 | 9.8 | 4% | 3,112 | 11.1 | 3,183 | 11.1 | -2% | |
| Brazil | 897 | 9.4 | 915 | 8.6 | -2% | 868 | 8.8 | 3% | 2,771 | 9.9 | 2,828 | 9.8 | -2% | |
| Others | 113 | 1.2 | 103 | 1.0 | 10% | 106 | 1.1 | 7% | 341 | 1.2 | 355 | 1.2 | -4% | |
| Asia | 6,422 | 67.2 | 7,603 | 71.6 | -16% | 6,858 | 69.1 | -6% | 18,449 | 66.0 | 18,607 | 64.8 | -1% | |
| China | 4,770 | 49.9 | 5,860 | 55.2 | -19% | 4,994 | 50.3 | -4% | 13,438 | 48.1 | 13,905 | 48.4 | -3% | |
| Japan | 732 | 7.7 | 843 | 7.9 | -13% | 927 | 9.3 | -21% | 2,341 | 8.4 | 2,356 | 8.2 | -1% | |
| South Korea | 335 | 3.5 | 289 | 2.7 | 16% | 282 | 2.8 | 19% | 823 | 2.9 | 975 | 3.4 | -16% | |
| Others | 585 | 6.1 | 611 | 5.8 | -4% | 655 | 6.6 | -11% | 1,847 | 6.6 | 1,371 | 4.8 | 35% | |
| Europe | 1,142 | 12.0 | 956 | 9.0 | 19% | 1,079 | 10.9 | 6% | 3,230 | 11.6 | 3,746 | 13.0 | -14% | |
| Germany | 413 | 4.3 | 261 | 2.5 | 58% | 286 | 2.9 | 44% | 1,025 | 3.7 | 983 | 3.4 | 4% | |
| Italy | 83 | 0.9 | 48 | 0.5 | 73% | 34 | 0.3 | 144% | 136 | 0.5 | 413 | 1.4 | -67% | |
| Others | 646 | 6.8 | 647 | 6.1 | 0% | 759 | 7.7 | -15% | 2,069 | 7.4 | 2,350 | 8.2 | -12% | |
| Middle East | 281 | 2.9 | 271 | 2.6 | 4% | 251 | 2.5 | 12% | 798 | 2.9 | 671 | 2.3 | 19% | |
| Rest of the World | 351 | 3.7 | 377 | 3.5 | -7% | 323 | 3.3 | 9% | 1,134 | 4.1 | 918 | 3.2 | 24% | |
| Total | 9,553 | 100.0 | 10,623 | 100.0 | -10% | 9,920 | 100.0 | -4% | 27,932 | 100.0 | 28,730 | 100.0 | -3% |
- 24 - | |
|
Operating Expenses
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| SG&A | 139 | 150 | -7% | 137 | 1% | 416 | 407 | 2% | ||
| Administrative | 116 | 124 | -6% | 116 | 0% | 351 | 342 | 3% | ||
| Personnel | 40 | 52 | -23% | 42 | -5% | 138 | 149 | -7% | ||
| Services | 35 | 32 | 9% | 41 | -15% | 107 | 90 | 19% | ||
| Depreciation | 13 | 12 | 8% | 9 | 44% | 33 | 37 | -11% | ||
| Others | 28 | 28 | 0% | 24 | 17% | 73 | 66 | 11% | ||
| Selling | 23 | 26 | -12% | 21 | 10% | 65 | 65 | 0% | ||
| R&D | 192 | 188 | 2% | 189 | 2% | 537 | 492 | 9% | ||
| Pre-operating and stoppage expenses | 89 | 115 | -23% | 91 | -2% | 272 | 342 | -20% | ||
| Expenses related to Brumadinho and decharacterization of dams | 126 | 305 | -59% | (1) | n.a. | 166 | 687 | -76% | ||
| Other operating expenses | 195 | 206 | -5% | 290 | -33% | 694 | 431 | 61% | ||
| Total operating expenses | 741 | 964 | -23% | 706 | 5% | 2,085 | 2,359 | -12% | ||
| Depreciation | 36 | 34 | 6% | 30 | 20% | 102 | 115 | -11% | ||
| Operating expenses, ex-depreciation | 705 | 930 | -24% | 676 | 4% | 1,983 | 2,244 | -12% |
Financial results
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Financial expenses, of which: | (373) | (362) | 3% | (365) | 2% | (1,077) | (1,079) | 0% | |
| Gross interest | (208) | (192) | 8% | (211) | -1% | (590) | (557) | 6% | |
| Capitalization of interest | 11 | 5 | 120% | 8 | 38% | 24 | 15 | 60% | |
| Others | (155) | (137) | 13% | (139) | 12% | (439) | (423) | 4% | |
| Financial expenses (REFIS) | (21) | (38) | -45% | (23) | -9% | (72) | (114) | -37% | |
| Financial income | 129 | 100 | 29% | 78 | 65% | 316 | 327 | -3% | |
| Shareholder Debentures | 92 | 30 | 207% | (241) | n.a. | 15 | 304 | -95% | |
| Derivatives¹ | 64 | (51) | n.a. | (471) | n.a. | (405) | 704 | n.a. | |
| Currency and interest rate swaps | 69 | (92) | n.a. | (455) | -115% | (400) | 682 | n.a. | |
| Others (commodities, etc) | (5) | 41 | n.a. | (16) | -69% | (5) | 22 | n.a. | |
| Foreign exchange | 4 | 206 | -98% | 53 | -92% | 29 | (247) | n.a. | |
| CTA | - | - | - | - | - | - | - | - | |
| Monetary variation | (290) | (308) | -6% | (306) | -5% | (941) | (1,081) | -13% | |
| Foreign exchange and monetary variation | (286) | (102) | 180% | (253) | 13% | (912) | (1,328) | -31% | |
| Financial result, net | (374) | (385) | -3% | (1,252) | -70% | (2,063) | (1,072) | 92% | |
| ¹ The cash effect of the derivatives was a lost of US$ 30 million in 3Q24. | |||||||||
Sustaining Investments by type
| US$ million |
Iron Ore Solutions |
Energy Transition Metals | Energy and others | Total | |
| Enhancement of operations | 353 | 172 | 2 | 527 | |
| Replacement projects | 11 | 99 | 0 | 109 | |
| Filtration and dry stacking projects | 45 | 0 | 0 | 45 | |
| Dam management | 35 | 8 | 0 | 44 | |
| Other investments in dams and waste dumps | 38 | 14 | 0 | 53 | |
| Health and safety | 66 | 21 | 1 | 88 | |
| Social investments and environmental protection | 78 | 4 | 0 | 82 | |
| Administrative & others | 50 | 8 | 14 | 73 | |
| Total | 677 | 327 | 18 | 1022 |
- 25 - | |
|
Annex 2: Segment information
Segment results 3Q24
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 7,970 | (4,255) | (45) | (87) | (63) | 211 | 3,731 | |||||||
| Fines | 6,281 | (3,371) | (15) | (76) | (58) | 83 | 2,844 | |||||||
| Pellets | 1,502 | (747) | (2) | (3) | (3) | 43 | 790 | |||||||
| Other ferrous | 187 | (137) | (28) | (8) | (2) | 85 | 97 | |||||||
| Energy Transition Metals | 1,583 | (1,313) | 30 | (74) | (1) | 23 | 248 | |||||||
| Nickel² | 904 | (936) | (17) | (34) | (1) | 18 | (66) | |||||||
| Sudbury | 507 | (469) | (2) | (20) | - | - | 16 | |||||||
| Voisey’s Bay & Long Harbour | 184 | (228) | - | (12) | - | - | (56) | |||||||
| Standalone Refineries | 246 | (237) | - | - | - | - | 9 | |||||||
| Onça Puma | 76 | (55) | (3) | (0) | (1) | - | 17 | |||||||
| Other³ | (109) | 52 | (12) | (2) | - | 18 | (52) | |||||||
| Copper4 | 759 | (366) | (3) | (30) | - | - | 360 | |||||||
| Salobo | 574 | (262) | (1) | - | - | - | 311 | |||||||
| Sossego | 206 | (104) | (1) | (3) | - | - | 98 | |||||||
| Other | (21) | - | (1) | (27) | - | - | (49) | |||||||
| Others5 | (80) | (11) | 50 | (10) | - | 5 | (46) | |||||||
| Brumadinho and decharacterization of dams | - | - | (126) | - | - | - | (126) | |||||||
| Others6 | - | - | (211) | (32) | (3) | 8 | (238) | |||||||
| Total | 9,553 | (5,568) | (353) | (192) | (67) | 242 | 3,615 | |||||||
| ¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Starting in 3Q24, PTVI's EBITDA is included in "Associates and JVs" in "Other". 4 Including by-products from our copper operations. 5 Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. 6 Includes US$ 20 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 3Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 228 million in 3Q24. | ||||||||||||||
| Segment results 3Q23 | ||||||||||||||
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 8,862 | (4,164) | (79) | (75) | (89) | 241 | 4,696 | |||||||
| Fines | 7,331 | (3,408) | (79) | (70) | (78) | 103 | 3,799 | |||||||
| Pellets | 1,388 | (669) | - | (1) | (6) | 39 | 751 | |||||||
| Other ferrous | 143 | (87) | - | (4) | (5) | 99 | 146 | |||||||
| Energy Transition Metals | 1,718 | (1,338) | 75 | (75) | (1) | 6 | 385 | |||||||
| Nickel² | 1,023 | (925) | 31 | (28) | (1) | - | 100 | |||||||
| Sudbury | 539 | (471) | (7) | (16) | - | - | 45 | |||||||
| Voisey’s Bay & Long Harbour | 199 | (271) | 11 | (6) | - | - | (67) | |||||||
| Standalone Refineries | 247 | (275) | - | - | - | - | (28) | |||||||
| Onça Puma | 78 | (58) | (4) | (1) | - | - | 15 | |||||||
| PTVI (historical) | 279 | (171) | (1) | (3) | - | - | 104 | |||||||
| Other | (319) | 321 | 32 | (2) | (1) | - | 31 | |||||||
| Copper3 | 660 | (341) | (3) | (47) | - | - | 269 | |||||||
| Salobo | 513 | (258) | (1) | (3) | - | - | 251 | |||||||
| Sossego | 148 | (83) | (1) | (5) | - | - | 59 | |||||||
| Other | - | - | (2) | (39) | - | - | (41) | |||||||
| Others4 | 35 | (72) | 47 | - | - | 6 | 16 | |||||||
| Brumadinho and decharacterization of dams | - | - | (305) | - | - | - | (305) | |||||||
| Others | 42 | (60) | (296) | (38) | - | 7 | (345) | |||||||
| Total | 10,623 | (5,562) | (606) | (188) | (90) | 254 | 4,431 | |||||||
| ¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. 4 Includes an adjustment of US$ 47 million increasing the adjusted EBITDA in 3Q23, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. | ||||||||||||||
- 26 - | |
|
| Segment information 2Q24 | ||||||||||||||
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 8,298 | (4,415) | (81) | (94) | (67) | 246 | 3,887 | |||||||
| Fines | 6,729 | (3,556) | (56) | (82) | (53) | 89 | 3,071 | |||||||
| Pellets | 1,394 | (705) | - | (1) | (2) | 38 | 724 | |||||||
| Other ferrous | 175 | (154) | (25) | (11) | (12) | 119 | 92 | |||||||
| Energy Transition Metals | 1,622 | (1,171) | 22 | (70) | (3) | 7 | 407 | |||||||
| Nickel² | 879 | (731) | (6) | (31) | (3) | - | 108 | |||||||
| Sudbury | 426 | (390) | (1) | (19) | - | - | 16 | |||||||
| Voisey’s Bay & Long Harbour | 136 | (204) | (1) | (7) | - | - | (76) | |||||||
| Standalone Refineries | 243 | (222) | - | - | - | - | 21 | |||||||
| Onça Puma | 18 | (27) | (5) | - | (3) | - | (17) | |||||||
| PTVI (historical) | 249 | (168) | - | (2) | - | - | 79 | |||||||
| Other | (193) | 280 | 1 | (3) | - | - | 85 | |||||||
| Copper3 | 779 | (391) | (8) | (29) | - | - | 351 | |||||||
| Salobo | 614 | (301) | (5) | (2) | - | - | 306 | |||||||
| Sossego | 136 | (90) | 1 | (3) | - | - | 44 | |||||||
| Other | 29 | - | (4) | (24) | - | - | 1 | |||||||
| Others4 | (36) | (49) | 36 | (10) | - | 7 | (52) | |||||||
| Brumadinho and decharacterization of dams | - | - | 1 | - | - | - | 1 | |||||||
| Others5 | - | - | (277) | (25) | - | - | (302) | |||||||
| Total | 9,920 | (5,586) | (335) | (189) | (70) | 253 | 3,993 | |||||||
| ¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. 4 Includes an adjustment of US$ 83 million increasing the adjusted EBITDA in 2Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. 5 Includes US$ 1 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 2Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 408 million in 2Q24. | ||||||||||||||
- 27 - | |
|
| Segment information 9M24 | ||||||||||||||
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 23,293 | (12,222) | (190) | (264) | (194) | 654 | 11,077 | |||||||
| Fines | 18,302 | (9,630) | (120) | (228) | (162) | 260 | 8,422 | |||||||
| Pellets | 4,481 | (2,191) | 4 | (5) | (10) | 117 | 2,396 | |||||||
| Other ferrous | 510 | (401) | (74) | (31) | (22) | 277 | 259 | |||||||
| Energy Transition Metals | 4,639 | (3,621) | 59 | (195) | (5) | 36 | 912 | |||||||
| Nickel² | 2,619 | (2,441) | (46) | (86) | (5) | 18 | 59 | |||||||
| Sudbury | 1,410 | (1,256) | (8) | (51) | - | - | 95 | |||||||
| Voisey’s Bay & Long Harbour | 466 | (604) | (5) | (23) | - | - | (166) | |||||||
| Standalone Refineries | 717 | (693) | - | - | - | - | 24 | |||||||
| Onça Puma | 94 | (122) | (12) | (1) | (5) | - | (46) | |||||||
| PTVI (historical) | 479 | (338) | (1) | (3) | - | - | 137 | |||||||
| Other | (547) | 574 | (22) | (7) | - | 18 | 15 | |||||||
| Copper3 | 2,178 | (1,086) | (14) | (82) | - | - | 995 | |||||||
| Salobo | 1,691 | (801) | (8) | (4) | - | - | 878 | |||||||
| Sossego | 454 | (285) | (1) | (9) | - | - | 159 | |||||||
| Other | 32 | - | (5) | (69) | - | - | (42) | |||||||
| Others4 | (158) | (95) | 120 | (27) | - | 18 | (142) | |||||||
| Brumadinho and decharacterization of dams | - | - | (166) | - | - | - | (166) | |||||||
| Others5 | - | - | (703) | (78) | (4) | 8 | (777) | |||||||
| Total | 27,932 | (15,844) | (1,000) | (537) | (203) | 698 | 11,046 | |||||||
| ¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. 4 Includes an adjustment of US$ 243 million increasing the adjusted EBITDA in 9M24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. 5 Includes US$ 66 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 9M24. Considering the unallocated expenses, VBM’s EBITDA was US$ 846 million in 9M24. | ||||||||||||||
| Segment information 9M23 | ||||||||||||||
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Associates and JVs EBITDA | Adjusted EBITDA | |||||||
| Iron Ore Solutions | 23,049 | (10,883) | (101) | (179) | (258) | 608 | 12,236 | |||||||
| Fines | 18,548 | (8,653) | (82) | (166) | (226) | 249 | 9,670 | |||||||
| Pellets | 4,123 | (1,991) | (6) | (2) | (15) | 91 | 2,200 | |||||||
| Other ferrous | 378 | (239) | (13) | (11) | (17) | 268 | 366 | |||||||
| Energy Transition Metals | 5,588 | (4,084) | 116 | (187) | (5) | 6 | 1,434 | |||||||
| Nickel² | 3,566 | (2,760) | (58) | (84) | (1) | - | 663 | |||||||
| Sudbury | 1,967 | (1,483) | (15) | (50) | - | - | 419 | |||||||
| Voisey’s Bay & Long Harbour | 551 | (668) | (43) | (16) | - | - | (176) | |||||||
| Standalone Refineries | 802 | (763) | - | - | - | - | 39 | |||||||
| Onça Puma | 238 | (177) | (9) | (1) | - | - | 51 | |||||||
| PTVI (historical) | 938 | (526) | (2) | (10) | - | - | 400 | |||||||
| Other | (930) | 857 | 11 | (7) | (1) | - | (70) | |||||||
| Copper3 | 1,722 | (930) | 40 | (103) | (4) | - | 725 | |||||||
| Salobo | 1,316 | (678) | 27 | (6) | (4) | - | 655 | |||||||
| Sossego | 407 | (251) | (7) | (21) | - | - | 128 | |||||||
| Other | - | - | 19 | (76) | - | - | (57) | |||||||
| Others4 | 300 | (394) | 134 | - | - | 6 | 46 | |||||||
| Brumadinho and decharacterization of dams | - | - | (687) | - | - | - | (687) | |||||||
| Others | 93 | (135) | (678) | (126) | (1) | 7 | (840) | |||||||
| Total | 28,730 | (15,101) | (1,352) | (492) | (263) | 621 | 12,143 | |||||||
|
¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. 4 Includes an adjustment of US$ 134 million increasing the adjusted EBITDA in 9M23, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027.
| ||||||||||||||
- 28 - | |
|
Annex 3: Additional information by business segment
Iron Ore Solutions: Financial results detailed
Volumes, prices, premium and revenues breakdown
| 3Q24 | % total | 3Q23 | % total | 2Q24 | % total | 9M24 | % total | 9M23 | % total | ||
| Volume sold ('000 metric tons) | |||||||||||
| Fines¹ | 69,344 | 85% | 69,714 | 87% | 68,512 | 86% | 190,402 | 84% | 178,904 | 85% | |
| IOCJ | 11,709 | 14% | 14,758 | 18% | 13,180 | 17% | 34,290 | 15% | 39,599 | 19% | |
| BRBF | 34,797 | 43% | 36,454 | 45% | 30,528 | 38% | 91,018 | 40% | 89,134 | 42% | |
| Pellet feed - China (PFC1)² | 3,328 | 4% | 4,234 | 5% | 3,337 | 4% | 9,201 | 4% | 10,056 | 5% | |
| Lump | 1,971 | 2% | 2,367 | 3% | 1,782 | 2% | 5,562 | 2% | 5,626 | 3% | |
| High-silica products | 8,050 | 10% | 6,131 | 8% | 11.372⁴ | 14% | 26.584⁴ | 12% | 18,090 | 9% | |
| Other fines (60-62% Fe) | 9,489 | 12% | 5,770 | 7% | 8.313⁴ | 10% | 8.256⁴ | 4% | 16,399 | 8% | |
| Pellets | 10,143 | 12% | 8,613 | 11% | 8,864 | 11% | 28,232 | 13% | 25,556 | 12% | |
| ROM | 2,351 | 3% | 2,232 | 3% | 2,416 | 3% | 6,822 | 3% | 6,132 | 3% | |
| Total - Iron ore sales | 81,838 | 100% | 80,559 | 100% | 79,792 | 100% | 225,456 | 100% | 210,591 | 100% | |
| Share of premium products³ (%) | 73% | 81% | 70% | 72% | 78% |
| 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| Average prices (US$/t) | |||||||||
| Iron ore - 62% Fe price index | 99.7 | 114.0 | -13% | 111.8 | -11% | 111.5 | 116.9 | -5% | |
| Iron ore - 62% Fe low alumina index | 100.6 | 116.1 | -13% | 112.6 | -11% | 112.2 | 119.2 | -6% | |
| Iron ore - 65% Fe index | 114.1 | 125.5 | -9% | 126.1 | -10% | 125.1 | 130.0 | -4% | |
| Provisional price at the end of the quarter | 108.8 | 117.0 | -7% | 106.5 | 2% | 108.8 | 117.0 | -7% | |
| Iron ore fines Vale's CFR reference (dmt) | 101.2 | 116.3 | -13% | 110.2 | -8% | 107.4 | 115.7 | -7% | |
| Iron ore fines realized price, CFR/FOB (wmt) | 90.6 | 105.1 | -14% | 98.2 | -8% | 96.1 | 103.7 | -7% | |
| Iron ore pellets realized price, CFR/FOB (wmt) | 148.2 | 161.2 | -8% | 157.2 | -6% | 158.7 | 161.3 | -2% | |
| Iron ore fines and pellets quality premium (US$/t) | |||||||||
| Iron ore fines quality and premiums | (1.9) | 0.8 | n.a. | (3.3) | -41% | (2.3) | 0.2 | n.a. | |
| Pellets business' weighted average contribution | 3.6 | 3.4 | 7% | 3.1 | 15% | 3.6 | 3.2 | 11% | |
| All-in premium - Total | 1.7 | 4.1 | -59% | (0.1) | n.a. | 1.3 | 3.4 | -62% | |
| Net operating revenue by product (US$ million) | |||||||||
| Fines | 6,281 | 7,331 | -14% | 6,729 | -7% | 18,302 | 18,548 | -1% | |
| ROM | 33 | 33 | 0% | 27 | 22% | 87 | 94 | -7% | |
| Pellets | 1,502 | 1,388 | 8% | 1,394 | 8% | 4,481 | 4,123 | 9% | |
| Others | 154 | 110 | 40% | 148 | 4% | 423 | 284 | 49% | |
| Total | 7,970 | 8,862 | -10% | 8,298 | -4% | 23,293 | 23,049 | 1% | |
| 1 Including third-party purchases. 2 Products concentrated in Chinese facilities. 3 Brazilian Blend Fines (BRBF), Carajás (IOCJ), pellets and pellet feed. 4 Restated from historical figures. | |||||||||
- 29 - | |
|
Volume sold by destination – Fines, pellets and ROM
| ‘000 metric tons | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Americas | 10,317 | 9,829 | 5% | 9,965 | 4% | 30,067 | 30,764 | -2% | |
| Brazil | 9,410 | 9,339 | 1% | 8,977 | 5% | 27,149 | 27,600 | -2% | |
| Others | 907 | 490 | 85% | 988 | -8% | 2,918 | 3,164 | -8% | |
| Asia | 64,179 | 64,801 | -1% | 62,357 | 3% | 173,408 | 159,477 | 9% | |
| China | 50,290 | 52,139 | -4% | 49,422 | 2% | 136,021 | 125,342 | 9% | |
| Japan | 6,419 | 6,317 | 2% | 6,543 | -2% | 18,027 | 18,131 | -1% | |
| Others | 7,470 | 6,345 | 18% | 6,392 | 17% | 19,360 | 16,004 | 21% | |
| Europe | 3,528 | 2,299 | 53% | 4,199 | -16% | 11,043 | 11,489 | -4% | |
| Germany | 1,395 | 494 | 182% | 1,185 | 18% | 3,356 | 1,884 | 78% | |
| France | 108 | 189 | -43% | 590 | -82% | 1,287 | 2,011 | -36% | |
| Others | 2,025 | 1,616 | 25% | 2,424 | -16% | 6,400 | 7,594 | -16% | |
| Middle East | 1,666 | 1,475 | 13% | 1,386 | 20% | 4,459 | 3,668 | 22% | |
| Rest of the World | 2,148 | 2,155 | 0% | 1,885 | 14% | 6,479 | 5,193 | 25% | |
| Total | 81,838 | 80,559 | 2% | 79,792 | 3% | 225,456 | 210,591 | 7% |
Iron ore fines pricing
Pricing system breakdown (%)
| 3Q24 | 3Q23 | 2Q24 | ||
| Lagged | 15 | 13 | 15 | |
| Current | 51 | 44 | 56 | |
| Provisional | 34 | 43 | 29 | |
| Total | 100 | 100 | 100 |
Price realization
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | |
| Average reference price (dmt) | 99.7 | 114.0 | -13% | 111.8 | -11% | |
| Quality and premiuns1 | (1.9) | 0.8 | n.a. | (3.3) | -42% | |
| Impact of pricing system adjustments | 3.4 | 1.5 | 127% | 1.6 | 113% | |
| Provisional prices in prior quarter2 | (1.2) | 0.6 | n.a. | 1.8 | n.a. | |
| Lagged prices | 1.8 | (0.5) | n.a. | 1.6 | 13% | |
| Current prices | (0.3) | 0.1 | n.a. | (0.2) | 50% | |
| Provisional prices in current quarter3 | 3.1 | 1.3 | 138% | (1.6) | n.a. | |
| CFR reference (dmt) | 101.2 | 116.3 | -13% | 110.1 | -8% | |
| Adjustments for FOB sales4 | (2.7) | (2.1) | 29% | (3.0) | -10% | |
| Moisture | (8.0) | (9.1) | -12% | (8.9) | -10% | |
| Vale realized price (wmt)5 | 90.6 | 105.1 | -14% | 98.2 | -8% | |
| 1 Includes quality (US$ 0.4/t) and premiums/discounts and commercial conditions (US$ -2.3/t). 2 Adjustment as a result of provisional prices booked in 2Q24 at US$ 106.5/t. 3 Difference between the weighted average of the prices provisionally set at the end of 3Q24 at US$ 108.8/t based on forward curves and US$ 99.7/t from the 3Q24 average reference price. 4 Includes freight pricing mechanisms of CFR sales freight recognition. 5 Vale’s price is net of taxes. | ||||||
- 30 - | |
|
Iron
ore fines costs & expenses
COGS - 3Q24 vs. 3Q23
| US$ million | 3Q23 | Volume | Exchange rate | Others | Total variation | 3Q24 | |
| C1 cash costs | 1,784 | (8) | (116) | 2 | (122) | 1,662 | |
| Freight | 1,129 | (1) | - | 104 | 103 | 1,232 | |
| Distribution costs | 179 | (1) | - | (6) | (7) | 172 | |
| Royalties & others | 316 | (2) | - | (9) | (11) | 305 | |
| Total costs before depreciation and amortization | 3,408 | (12) | (116) | 91 | (37) | 3,371 | |
| Depreciation | 357 | (2) | (24) | 14 | (12) | 345 | |
| Total | 3,765 | (14) | (140) | 105 | (49) | 3,716 |
Cash cost and freight
| 0 | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| 0 | C1 cash cost (US$ million) | ||||||||
| 0 | C1 cash cost, including third-party purchase costs (A) | 1,662 | 1,784 | -7% | 1,935 | -14% | 5,043 | 4,682 | 8% |
| 0 | Third-party purchase cost adjustment¹ (B) | 377 | 402 | -6% | 409 | -8% | 1,132 | 944 | 20% |
| 0 | C1 cash cost, ex-third-party purchase costs (C = A – B) | 1,285 | 1,383 | -7% | 1,526 | -16% | 3,911 | 3,738 | 5% |
| 0 | Sales volumes (Mt) | ||||||||
| 0 | Volume sold² (D) | 69.3 | 69.7 | -1% | 68.5 | 1% | 190.4 | 178.9 | 6% |
| 0 | Volume sold from third-party purchases (E) | 7.1 | 6.6 | 8% | 7.1 | 0% | 19.9 | 15.8 | 26% |
| 0 | Volume sold from own operations (F = D – E) | 62.2 | 63.1 | -1% | 61.4 | 1% | 170.5 | 163.1 | 5% |
| 0 | C1 cash cost², FOB (US$/t) | ||||||||
| 0 | C1 cash cost, ex-third-party purchase costs (C/F) | 20.6 | 21.9 | -6% | 24.9 | -17% | 22.9 | 22.9 | 0% |
| 0 | Average third-party purchase C1 cash cost (B/E) | 52.9 | 60.5 | -13% | 57.4 | -8% | 56.9 | 59.9 | -5% |
| 0 | Iron ore cash cost (A/D) | 24.0 | 25.6 | -6% | 28.2 | -15% | 26.5 | 26.2 | 1% |
| 0 | Freight | ||||||||
| 0 | Maritime freight costs (G) | 1,232 | 1,129 | 9% | 1,114 | 11% | 3,207 | 2,671 | 20% |
| 0 | CFR sales (%) (H) | 86% | 86% | 0 p.p. | 85% | 1 p.p. | 85% | 82% | 3 p.p. |
| 0 | Volume CFR (Mt) (I = D x H) | 59.8 | 59.8 | 0% | 58.5 | 2% | 162.8 | 147.1 | 11% |
| 0 | Freight cost (US$/t) (G/I) | 20.6 | 18.9 | 9% | 19.0 | 8% | 19.7 | 18.2 | 9% |
| ¹ Includes logistics costs related to third-party purchases. ² Excludes ROM, royalties and distribution costs. | |||||||||
Expenses
| US$ million | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| SG&A | 13 | 16 | -19% | 15 | -13% | 38 | 38 | 0% | |
| R&D | 76 | 70 | 9% | 82 | -7% | 228 | 166 | 37% | |
| Pre-operating and stoppage expenses | 58 | 78 | -26% | 53 | 9% | 162 | 226 | -28% | |
| Other expenses | 2 | 63 | -97% | 41 | -95% | 82 | 44 | 86% | |
| Total expenses | 149 | 227 | -34% | 191 | -22% | 510 | 474 | 8% |
- 31 - | |
|
Iron Ore Solutions: Projects Details
| Growth projects | Capex 3Q24 | Financial progress1 | Physical progress | Comments |
|
Northern System 240 Mtpy Capacity: 10 Mtpy Start-up: 1H23 Capex: US$ 772 MM |
23 | 92% | ~100%2 | Test operations at the port have been concluded. At the mine, the structural reinforcement of the 3rd silo has been concluded and cargo tests have been initiated. |
|
Serra Sul +203 Capacity: 20 Mtpy Start-up: 2H26 Capex: US$ 2,844 MM |
142 | 46% | 67% | All modules of the semi-mobile crusher have been positioned and the critical lifts of the transfer house have been completed. The assembly of the long-distance conveyor belt is in the final stages. Civil construction at the plant should be finished by Q4. |
|
Capanema’s Maximization Capacity: 18 Mtpy Start-up: 1H25 Capex: US$ 913 MM |
72 | 68% | 91% | The project is in the final stage of mechanical completion. |
|
Briquettes Tubarão Capacity: 6 Mtpy Start-up: 4Q23 (Plant 1) | 1Q25 (Plant 2) Capex: US$ 342 MM |
14 | 86% | 96% | Plant 1 stabilization works continue with focus on quality control, for subsequent replication in Plant 2. |
| Sustaining projects | Capex 3Q24 | Financial progress1 | Physical progress | Comments |
|
Compact Crushing S11D Capacity: 50 Mtpy Start-up: 2H26 Capex: US$ 755 MM |
38 | 34% | 55% | Civil works on the secondary crusher were completed and the assembly phase was initiated. |
|
N3 – Serra Norte Capacity: 6 Mtpy Start-up: 2H26 Capex: US$ 84 MM |
1 | 20% | 19% |
The Installation License and Vegetation Suppression Authorization are pending.
|
|
VGR 1 plant revamp3 Capacity: 17 Mtpy Start-up: 3Q24 Capex: US$ 67 MM |
9 | 71% | 100% | The project started commissioning in September, one month ahead of schedule. |
1 CAPEX disbursement until end of 3Q24 vs. CAPEX expected. 2 Considering physical progress of mine, plant and logistics. 3 VGR 1 is a program made up of three simultaneous projects, VGR I Waste Containment System, Water Adequacy and the VGR I Revamp, all aimed at boosting the recovery of production capacity. The progress data provided focuses on the program's main project, the VGR I Waste Containment System.
Projects under evaluation
| Apolo | Capacity: Under evaluation | Stage: FEL2 |
| Southeastern System (Brazil) | Growth project | |
| Vale’s ownership: 100% | Open pit mine | |
| Briquette plants | Capacity: Under evaluation | Stage: 2 plants at FEL3; 5 plants at different stages of FEL |
| Brazil and other regions | Growth project | Investment decision: 2025-2030 |
| Vale’s ownership: N/A | Cold agglomeration plant | |
| Itabira mines | Capacity: 25 Mtpy | Stage: Prefeasibility Study |
| Southeastern System (Brazil) | Replacement project | |
| Vale’s ownership: 100% | Open pit mine | Diverse pits and tailing and waste stockpile projects aimed at maintaining Itabira´s long-term production volumes. |
| Mega Hubs | Capacity: Under evaluation | Stage: Prefeasibility Study |
| Middle East | Growth project | |
| Vale’s ownership: N/A | Industrial complexes for iron ore concentration and agglomeration and production of direct reduction metallics | Vale continues to advance in negotiations with world-class players and jointly study the development of Mega Hubs |
| S11C | Capacity: Under evaluation | Stage: FEL2 |
| Northern System (Brazil) | Replacement project | |
| Vale’s ownership: 100% | Open pit mine | |
| Serra Norte N1/N21 | Capacity: Under evaluation | Stage: FEL2 |
| Northern System (Brazil) | Replacement project | |
| Vale’s ownership: 100% | Open pit mine |
1
Project scope is under review given permitting constraints.
- 32 - | |
|
Energy Transition Metals: Copper
Revenues & price realization
| 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| Volume sold | |||||||||
| Copper ('000 metric tons) | 61 | 62 | -2% | 58 | 5% | 176 | 158 | 11% | |
| Gold as by-product (‘000 oz) | 85 | 95 | -11% | 89 | -4% | 259 | 232 | 12% | |
| Silver as by-product (‘000 oz) | 202 | 242 | -17% | 242 | -17% | 632 | 653 | -3% | |
| Average prices | |||||||||
| Average LME copper price (US$/t) | 9,210 | 8,356 | 10% | 9,753 | -6% | 9,131 | 8,585 | 6% | |
| Average copper realized price (US$/t) | 9,016 | 7,731 | 17% | 9,202 | -2% | 8,651 | 7,969 | 9% | |
| Gold (US$/oz)¹ | 2,591 | 1,874 | 38% | 2,361 | 10% | 2,346 | 1,939 | 21% | |
| Silver (US$/oz) | 30 | 23 | 30% | 27 | 11% | 27 | 24 | 13% | |
| Net revenue (US$ million) | |||||||||
| Copper | 553 | 478 | 16% | 535 | 3% | 1,522 | 1,257 | 21% | |
| Gold as by-product¹ | 221 | 177 | 25% | 209 | 6% | 607 | 450 | 35% | |
| Silver as by-product | 6 | 5 | 20% | 7 | -14% | 17 | 15 | 13% | |
| Total | 780 | 660 | 18% | 751 | 4% | 2,146 | 1,722 | 25% | |
| PPA adjustments² | (21) | - | n.a. | 24 | n.a. | 31 | - | n.a. | |
| Net revenue after PPA adjustments | 759 | 660 | 15% | 775 | -2% | 2,177 | 1,722 | 26% | |
| ¹ Revenues presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions. ² PPA adjustments to be disclosed separately from 1Q24 onwards.On September 30th, 2024, Vale had provisionally priced copper sales from Sossego and Salobo totaling 51,876 tons valued at weighted average LME forward price of US$ 10,009/t, subject to final pricing over the following months. | |||||||||
Breakdown of copper realized prices
| US$/t | 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | |
| Average LME copper price | 9,210 | 8,356 | 10% | 9,753 | -6% | 9,131 | 8,585 | 6% | |
| Current period price adjustments¹ | 106 | (189) | n.a. | (204) | n.a. | (26) | (134) | -81% | |
| Copper gross realized price | 9,316 | 8,167 | 14% | 9,549 | -2% | 9,105 | 8,450 | 8% | |
| Prior period price adjustments² | 203 | 125 | 62% | 125 | 62% | 45 | 62 | -28% | |
| Copper realized price before discounts | 9,518 | 8,292 | 15% | 9,674 | -2% | 9,150 | 8,513 | 7% | |
| TC/RCs, penalties, premiums and discounts³ | (503) | (560) | -10% | (472) | 7% | (499) | (543) | -8% | |
| Average copper realized price | 9,016 | 7,731 | 17% | 9,202 | -2% | 8,651 | 7,969 | 9% | |
| Note: Vale's copper products are sold on a provisional pricing basis , with final prices determined in a future period. The average copper realized price excludes the mark-to-market of open invoices based on the copper price forward curve (unrealized provisional price adjustments) and includes the prior and current period price adjustments (realized provisional price adjustments). ¹ Current-period price adjustments: Final invoices that were provisionally priced and settled within the quarter. ² Prior-period price adjustment: Final invoices of sales provisionally priced in prior quarters. ³ TC/RCs, penalties, premiums, and discounts for intermediate products. | |||||||||
COGS - 3Q24 vs. 3Q23
| US$ million | 3Q23 | Volume | Exchange rate | Others | 3Q24 | |
| Costs | 341 | (4) | (29) | 58 | 366 | |
| Depreciation | 49 | - | (4) | (6) | 39 | |
| Total | 390 | (4) | (33) | 52 | 405 |
- 33 - | |
|
Energy Transition Metals: Nickel
Revenues & price realization
| 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| Volume sold ('000 metric tons) | |||||||||
| Nickel | 41 | 39 | 4% | 34 | 19% | 108 | 120 | -10% | |
| Copper | 14 | 12 | 17% | 18 | -22% | 52 | 53 | -2% | |
| Gold as by-product ('000 oz) | 4 | 9 | -56% | 9 | -56% | 25 | 31 | -19% | |
| Silver as by-product ('000 oz) | 209 | 122 | 71% | 206 | 1% | 660 | 634 | 4% | |
| PGMs ('000 oz) | 42 | 41 | 2% | 38 | 11% | 152 | 204 | -25% | |
| Cobalt (metric ton) | 464 | 399 | 16% | 320 | 45% | 1,249 | 1,679 | -26% | |
| Average realized prices (US$/t) | |||||||||
| Nickel | 17,012 | 21,237 | -20% | 18,638 | -9% | 17,478 | 23,203 | -25% | |
| Copper | 9,187 | 7,423 | 24% | 9,137 | 1% | 8,503 | 7,768 | 9% | |
| Gold (US$/oz) | 2,748 | 1,851 | 48% | 2,435 | 13% | 2,305 | 1,902 | 21% | |
| Silver (US$/oz) | 31.4 | 22.5 | 40% | 28.2 | 11% | 27.1 | 22.4 | 21% | |
| Cobalt | 23,850 | 35,222 | -32% | 28,258 | -16% | 27,454 | 33,428 | -18% | |
| Net revenue by product (US$ million) | |||||||||
| Nickel | 692 | 833 | -17% | 639 | 8% | 1,889 | 2,777 | -32% | |
| Copper | 127 | 89 | 43% | 164 | -23% | 444 | 409 | 9% | |
| Gold as by-product¹ | 12 | 17 | -29% | 22 | -45% | 58 | 59 | -2% | |
| Silver as by-product | 7 | 3 | 133% | 6 | 17% | 18 | 14 | 26% | |
| PGMs | 44 | 54 | -19% | 38 | 16% | 150 | 214 | -30% | |
| Cobalt¹ | 11 | 14 | -21% | 9 | 22% | 34 | 56 | -39% | |
| Others | 9 | 13 | -31% | 5 | 80% | 24 | 38 | -37% | |
| Total | 902 | 1,023 | -12% | 882 | 2% | 2,616 | 3,566 | -27% | |
| PPA adjustments² | 2 | 82 | -97% | -3 | n.a. | 3 | 433 | -99% | |
| Net revenue after PPA adjustments | 904 | 1,105 | -18% | 879 | 3% | 2,619 | 3,999 | -35% | |
| ¹ Revenues presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions. ² PPA adjustments started to disclose separately in 1Q24. | |||||||||
Breakdown of nickel volumes sold, realized price and premium
| 3Q24 | 3Q23 | ∆ y/y | 2Q24 | ∆ q/q | 9M24 | 9M23 | ∆ y/y | ||
| Volumes (kt) | |||||||||
| Upper Class I nickel | 22.8 | 21.7 | 5% | 19.0 | 20% | 62.7 | 68.2 | -8% | |
| - of which: EV Battery | 1.0 | 0.2 | 400% | 0.8 | 25% | 2.6 | 2.4 | 8% | |
| Lower Class I nickel | 6.9 | 4.6 | 50% | 3.9 | 77% | 14.3 | 13.1 | 9% | |
| Class II nickel | 10.3 | 9.4 | 10% | 6.6 | 56% | 21.3 | 26.8 | -21% | |
| Intermediates | 0.7 | 3.6 | -81% | 4.7 | -85% | 9.9 | 11.5 | -14% | |
| Total | 40.7 | 39.2 | 4% | 34.3 | 19% | 108.1 | 119.7 | -10% | |
| Nickel realized price (US$/t) | |||||||||
| LME average nickel price | 16,259 | 20,344 | -20% | 18,415 | -12% | 17,072 | 22,890 | -25% | |
| Average nickel realized price | 17,012 | 21,237 | -20% | 18,638 | -9% | 17,478 | 23,202 | -25% | |
| Contribution to the nickel realized price by category: | |||||||||
| Nickel average aggregate premium/(discount) | 571 | 123 | 364% | 319 | 79% | 474 | 77 | 516% | |
| Other timing and pricing adjustments contributions¹ | 182 | 770 | -76% | (97) | n.a. | (68) | 234 | n.a. | |
| Premium/discount by product (US$/t) | |||||||||
| Upper Class I nickel | 1,080 | 1,755 | -38% | 1,260 | -14% | 1,180 | 1,710 | -31% | |
| Lower Class I nickel | 460 | 1,368 | -66% | 610 | -25% | 550 | 1,320 | -58% | |
| Class II nickel | (360) | (2,542) | -86% | 290 | n.a. | 70 | (2,540) | n.a. | |
| Intermediates | (1,330) | (4,361) | -70% | (3,650) | -64% | (3,220) | (4,980) | -35% | |
| ¹ Comprises (i) the realized quotational period effects (based on sales distribution in the prior three months, as well as the differences between the LME price at the moment of sale and the LME average price), with a positive impact of US$48/t and (ii) fixed-price sales, with a positive impact of US$134/t. | |||||||||
- 34 - | |
|
Product type by operation
| % of sales | North Atlantic¹ | Matsusaka | Onça Puma |
| Upper Class I | 73.7 | - | - |
| Lower Class I | 22.2 | - | - |
| Class II | 3.2 | 94.8 | 97.9 |
| Intermediates | 0.9 | 5.2 | 2.1 |
¹
Comprises Sudbury, Clydach and Long Harbour refineries
COGS - 3Q24 vs. 3Q23
| US$ million | 3Q23 | Volume | Exchange rate | Others | 3Q24 | |
| Costs | 925 | 139 | (15) | (113) | 936 | |
| Depreciation | 213 | 8 | (4) | (50) | 167 | |
| Total | 1,138 | 147 | (19) | (163) | 1,103 |
- 35 - | |
|
Energy Transition Metals: Projects Details
| Growth projects | Capex 3Q24 | Financial progress1 | Physical progress |
Comments |
|
Onça Puma 2nd Furnace Capacity: 12-15 ktpy Start-up: 2H25 Capex: US$ 555 MM |
40 | 37% | 56% | The project is advancing slightly ahead of plan. Major equipment and materials are planned to arrive by the end of 2024, and the assembly of the 2nd furnace is progressing well. |
| Sustaining projects | Capex 3Q24 | Financial progress1 | Physical progress |
Comments |
|
Voisey’s Bay Mine Extension Capacity: 45 ktpy (Ni) and 20 ktpy (Cu) Start-up: 1H212 Capex: US$ 2,940 MM |
76 | 94% | 99% | All surface construction completed with commissioning of Reid Brook power plant remaining. In Eastern Deeps Mine, the Bulk Material Handling system achieved mechanical completion in early October and the focus is now on commissioning, with handover to Operations within 2024. Demobilization efforts are ongoing, with Surface contractors already fully demobilized. |
1 CAPEX disbursement until end of 3Q24 vs. CAPEX expected.
2 In 2Q21, Vale achieved the first ore production of Reid Brook deposit, the first of two underground mines to be developed in the project. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is continuing its scheduled production ramp up.
Projects under evaluation
| Copper | ||||
| Alemão | Capacity: 60 ktpy | Stage: FEL3 | ||
| Carajás, Brazil | Growth project | Investment decision: 2025 | ||
| Vale’s ownership: 100% | Underground mine | 115 kozpy Au as by-product | ||
| South Hub extension (Bacaba) | Capacity: 60-80 ktpy | Stage: FEL3¹ | ||
| Carajás, Brazil | Replacement project | Investment decision: 4Q24 | ||
| Vale’s ownership: 100% | Open pit | Development of mines to feed Sossego mill | ||
| Victor | Capacity: 20 ktpy | Stage: FEL3 | ||
| Ontario, Canada | Replacement project | Investment decision: 2025-2026 | ||
| Vale’s ownership: N/A | Underground mine | 5 ktpy Ni as co-product; JV partnership under discussion | ||
| Hu’u | Capacity: 300-350 ktpy | Stage: FEL2 | ||
| Dompu, Indonesia | Growth project | 200 kozpy Au as by-product | ||
| Vale’s ownership: 80% | Underground block cave | |||
| North Hub | Capacity: 70-100 ktpy | Stage: FEL1 | ||
| Carajás, Brazil | Growth project | |||
| Vale’s ownership: 100% | Mines and processing plant | |||
| Nickel | ||||
| Creighton Ph. 5 | Capacity: 15-20 ktpy | Stage: FEL3 | ||
| Ontario, Canada | Replacement project | Investment decision: 2025 | ||
| Vale’s ownership: 100% | Underground mine | 10-16 ktpy Cu as by-product | ||
| CCM Pit | Capacity: 12-15 ktpy | Stage: FEL3 | ||
| Ontario, Canada | Replacement project | Investment decision: 2025 | ||
| Vale’s ownership: 100% | Open pit mine | 7-9 ktpy Cu as by-product | ||
| CCM Ph. 3 | Capacity: 5-10 ktpy | Stage: FEL3 | ||
| Ontario, Canada | Replacement project | Investment decision: 2025 | ||
| Vale’s ownership: 100% | Underground mine | 7-13 ktpy Cu as by-product | ||
| CCM Ph. 4 | Capacity: 7-12 ktpy | Stage: FEL2 | ||
| Ontario, Canada | Replacement project | 7-12 ktpy Cu as by-product | ||
| Vale’s ownership: 100% | Underground mine | |||
| Nickel Sulphate Plant | Capacity: ~25 ktpy | Stage: FEL3 | ||
| Quebec, Canada | Growth project | Investment decision: 2024-2025 | ||
| Vale’s ownership: N/A | ||||
1 Refers to the most advanced projects (Bacaba and Cristalino).
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|
Annex 4: Brumadinho & Decharacterization
Brumadinho & Dam decharacterization
| US$ million | Provisions balance 30jun24 | EBITDA impact2 | Payments | FX and other adjustments3 | Provisions balance 30sep24 |
| Decharacterization | 2,738 | - | (154) | 99 | 2,683 |
| Agreements & donations¹ | 2,412 | 48 | (188) | 118 | 2,390 |
| Total Provisions | 5,150 | 48 | (342) | 217 | 5,073 |
| Incurred Expenses | - | 78 | (78) | - | - |
| Total | 5,150 | 126 | (420) | 217 | 5,073 |
1 Includes Integral Reparation Agreement, individual, labor and emergency indemnifications, tailing removal and containment works. 2 Includes the revision of estimates for provisions and incurred expenses, including discount rate effect. 3 Includes foreign exchange, present value and other adjustments.
Impact of Brumadinho and Decharacterization from 2019 to 3Q24
| US$ million | EBITDA impact | Payments | FX and other adjustments2 |
Provisions balance 30sep24 |
| Decharacterization | 5,060 | (2,001) | (376) | 2,683 |
| Agreements & donations¹ | 9,147 | (6,920) | 163 | 2,390 |
| Total Provisions | 14,207 | (8,921) | (213) | 5,073 |
| Incurred expenses | 3,248 | (3,248) | - | - |
| Others | 180 | (178) | (2) | - |
| Total | 17,635 | (12,347) | (215) | 5,073 |
¹ Includes Integral Reparation Agreement, individual, labor and emergency indemnifications, tailing removal and containment works. ² Includes foreign exchange, present value and other adjustments.
Cash outflow of Brumadinho & Decharacterization commitments1 2:
| US$ billion | Disbursed from 2019 to 3Q24 | 4Q24 | 2025 | 2026 |
2027
|
Yearly average 2028-2035³ |
| Decharacterization | (2.0) | 0.1 | 0.5 | 0.5 | 0.4 | 0.2 |
| Integral Reparation Agreement & other reparation provisions | (6.9) | 0.5 | 0.8 | 0.7 | 0.3 | 0.14 |
| Incurred expenses | (3.2) | 0.3 | 0.4 | 0.4 | 0.3 | 0.45 |
| Total | (12.1) | 0.9 | 1.7 | 1.6 | 1.0 | - |
1 Estimate cash outflow for 2024-2035 period, given BRL-USD exchange rates of 5.4481. 2 Amounts stated without discount to present value, net of judicial deposits and inflation adjustments. 3 Estimate annual average cash flow for Decharacterization provisions in the 2028-2035 period is US$ 248 million per year. 4 Disbursements related to the Integral Reparation Agreement ending in 2031. 5 Disbursements related to incurred expenses ending in 2028.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Vale S.A. (Registrant) | ||
| By: | /s/ Thiago Lofiego | |
| Date: October 24, 2024 | Director of Investor Relations | |