Vale S.A 6-K, filed Feb 23, 2024
Vale S.A. (VALE)
About this 6-K
Vale S.A filed this 6-K on February 23, 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
February 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 ¨
Vale’s performance in 4Q23 and 2023
Rio de Janeiro, February 22nd, 2024. “2023 was a remarkable year for Vale. Our results translated the evolution of our safety-driven cultural transformation and our progress towards operational excellence. Regarding our Safety Journey, in 2023 we recorded the lowest injury frequency rate in our history. Our 2023 iron ore production at 321 Mt exceeded our guidance and provided evidence of increased asset and process reliability. In addition, we started up our 1st briquette plant and entered into a partnership with Anglo American in a world-class operation, important steps to support our strategy to grow with quality. In our path to transform the Energy Transition Metals business, copper production had an impressive 50% growth in the 4th quarter, while nickel production was in line with guidance. Regarding our commitments, 2023 saw a substantial progress in the reparations of Brumadinho and Mariana. Finally, we remain focused on a disciplined capital allocation, consistently returning value to our shareholders, as evidenced by our recent dividend announcement. We have walked the talk, and I am excited that Vale is progressing towards achieving even greater performance levels”, commented Eduardo Bartolomeo, Chief Executive Officer.
| Selected financial indicators | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net operating revenues | 13,054 | 11,941 | 10,623 | 41,784 | 43,839 |
| Total costs and expenses (ex-Brumadinho and de-characterization of dams)1 | (7,278) | (7,895) | (6,921) | (26,014) | (26,253) |
| Expenses related to Brumadinho event and de-characterization of dams | (396) | (375) | (305) | (1,083) | (1,151) |
| Adjusted EBIT from continuing operations | 5,479 | 3,726 | 3,397 | 14,891 | 16,589 |
| Adjusted EBIT margin (%) | 42% | 31% | 32% | 36% | 38% |
| Adjusted EBITDA from continuing operations | 6,334 | 4,626 | 4,177 | 17,961 | 19,760 |
| Adjusted EBITDA margin (%) | 49% | 39% | 39% | 43% | 45% |
| Proforma adjusted EBITDA from continuing operations2 | 6,730 | 5,001 | 4,482 | 19,044 | 20,911 |
| Net income from continuing operations attributable to Vale's shareholders | 2,418 | 3,724 | 2,836 | 7,983 | 16,728 |
| Net debt 3 | 9,560 | 7,915 | 10,009 | 9,560 | 7,915 |
| Expanded net debt | 16,164 | 14,140 | 15,494 | 16,164 | 14,140 |
| Capital expenditures | 2,118 | 1,787 | 1,464 | 5,920 | 5,446 |
|
1 Includes adjustment of US$ 82 million in 4Q23, US$ 47 million in 3Q23 and US$ 216 million in 2023, to reflect the performance of the streaming transactions at market price. 2 Excluding expenses related to Brumadinho. 3 Including leases (IFRS 16). | |||||
Highlights
Business Results
| · | Proforma adjusted EBITDA from continued operations of US$ 6.7 billion in Q4, up 35% y/y and 50% q/q on the back of better operational performance and strong iron ore prices. Proforma adjusted EBITDA from continued operations of US$ 19.0 billion in 2023, down 9% mainly due to lower average iron ore, copper, and nickel reference prices in the year. |
| · | Iron ore fines C1 cash cost ex-3rd party purchase decreased 5% q/q, reaching US$ 20.8/t in Q4. In 2023, it reached US$ 22.3/t, below the US$ 22.5/t guidance for the year. |
| · | Free Cash Flow from Operations of US$ 2.5 billion in Q4, representing an EBITDA to cash-conversion of 37%. |
Disciplined capital allocation
| · | Capital expenditures of US$ 2.1 billion in Q4, an increase of US$ 331 million y/y, resulting primarily from increased investments in Iron Ore Solutions projects, particularly Capanema and the Carajás Railway, and higher investments to enhance our Energy Transition Metals mining operations. |
| · | Gross debt and leases of US$ 13.9 billion as of December 31st, 2023, US$ 113 million lower q/q. |
| 1 |
| · | Expanded net debt of US$ 16.2 billion as of December 31st, 2023, US$ 670 million higher q/q, mainly driven by the US$ 1.2 billion provision increase related to the Renova Foundation and a potential global agreement framework. Vale´s expanded net debt target continues to be US$ 10-20 billion. |
Value creation and distribution
| · | US$ 2.4 billion in dividends to be paid in March 2024, considering Vale’s ordinary dividend policy applied to 2H23 results. |
| · | US$ 2.0 billion in dividends and interest on capital paid in December 2023, referring to the anticipated allocation of the 2023 results. |
| · | Allocation of US$ 44 million as part of the 4th buyback program in the quarter. As of the date of this report, the 4th buyback program was 15% complete[1], with 22.6 million shares repurchased. |
Recent developments
| · | Agreement signed with Anglo American, in February, to acquire a 15% ownership interest and establish a partnership encompassing the Minas-Rio iron ore complex and Vale’s Serra da Serpentina resources in Brazil. Following completion of the transaction, Vale will receive its pro-rata share of Minas-Rio production. Minas-Rio has an estimated high-grade pellet feed production capacity of 26.5 Mtpy. |
| · | MoU signed with Hydnum Steel, in February, to jointly evaluate the feasibility of building an iron ore briquette plant in Hydnum Steel's flagship project for green steel in Puertollano, Spain. The plant will begin producing 1.5 Mtpy of rolled steel in 2026, and it is projected to have a 2.6 Mtpy capacity starting from 2030. |
2023 in review
Focusing and strengthening the core
| · | Gaining momentum on Iron Ore Solutions: |
| · | Several agreements signed with clients and partners, focused on developing solutions for carbon emission reduction and delivering high-quality products. These include agreements to supply high-quality agglomerates, joint studies for implementing green hubs and Mega hubs, and establishing co-located briquetting plants. |
| · | Building a unique Energy Transition Metals vehicle: |
| · | Vale Base Metals Limited (“VBM”) creation, the holding entity of Vale’s Energy Transition Metals business. VBM has a separate corporate structure, with a dedicated Board of Directors. |
| · | Two binding agreements signed in July, one with Manara Minerals and the other with Engine No. 1 under which the companies will separately invest in VBM. The total consideration to be paid to VBM is US$ 3.4 billion (subject to usual transaction adjustments on closing), for a 13% equity interest, implying a US$ 26 billion enterprise value. |
| · | Heads of Agreement signed, regarding the divestment obligation of PT Vale Indonesia Tbk (“PTVI”), a significant step towards a mutually beneficial outcome that meets Indonesian divestment obligations and clears the way for renewal of PTVI’s mining license beyond 2025. |
| · | Advancing our project pipeline: |
| · | The first iron ore briquette plant has started up in November at the Tubarão complex. The second plant is scheduled to start up in 1H24. |
[1] Related to the October 2023 4th buyback program for a total of 150 million shares.
| 2 |
| · | The Torto dam operations at the Brucutu site has started up in July, enabling higher pellet feed availability and an improved product mix. |
| · | The first throughput test at the Salobo complex was successfully completed in November. The three plants combined throughput capacity now exceeds 32 Mtpa, progressing towards reaching 36-Mtpa in 4Q24. The achieved production levels allowed the receipt of additional US$ 370 million related to the streaming agreement. |
| · | PTVI and the Chinese company Zhejiang Huayou Cobalt Co. signed a definitive agreement with the global automaker Ford Motor Co. for the development of the Pomalaa project in Indonesia. |
Promoting sustainable mining
| · | The B3/B4 dam had over 90% of its tailings removed, being reclassified to a level 1 protocol, and its complete decharacterization was brought forward from 2027 to 2024. |
| · | Conformance with the Global Industry Standard on Tailings Management (GISTM) successfully achieved for all prioritized tailings facilities, within the industry's timeframe. |
| · | Sol do Cerrado solar energy complex reached its 766-Megawatt full capacity in July. |
| · | Vale Base Metals and BluestOne signed a long-term agreement in October, aimed at waste reuse of 50 ktpy of slag from the Onça Puma site, promoting circular mining. |
| · | The creation of Agera, a company focused on developing and expanding our sustainable sand business. Agera will market and distribute the sand produced by processing tailings from Vale's iron ore operations in Minas Gerais, Brazil. |
Reparation
| · | The Brumadinho Integral Reparation Agreement continues to progress with 68% of the agreed-upon commitments completed and in accordance with the settlement deadlines. |
| · | In the Mariana reparation, the Renova Foundation accelerated the restitution of housing rights by delivering 575 housing solutions out of a total 675 forecast. |
| 3 |
Adjusted EBITDA
| Adjusted EBITDA | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net operating revenues | 13,054 | 11,941 | 10,623 | 41,784 | 43,839 |
| COGS | (6,891) | (7,155) | (6,309) | (24,089) | (24,028) |
| SG&A | (146) | (148) | (150) | (553) | (515) |
| Research and development | (231) | (218) | (188) | (723) | (660) |
| Pre-operating and stoppage expenses | (108) | (125) | (115) | (450) | (479) |
| Expenses related to Brumadinho event & de-characterization of dams | (396) | (375) | (305) | (1,083) | (1,151) |
| Other operational expenses¹ | 98 | (249) | (159) | (199) | (571) |
| Dividends and interests on associates and JVs | 99 | 55 | - | 204 | 154 |
| Adjusted EBIT from continuing operations | 5,479 | 3,726 | 3,397 | 14,891 | 16,589 |
| Depreciation, amortization & depletion | 855 | 900 | 780 | 3,070 | 3,171 |
| Adjusted EBITDA from continuing operations | 6,334 | 4,626 | 4,177 | 17,961 | 19,760 |
| Proforma Adjusted EBITDA from continuing operations² | 6,730 | 5,001 | 4,482 | 19,044 | 20,911 |
|
¹ Includes adjustment of US$ 82 million in 4Q23, US$ 47 million in 3Q23 and US$ 216 million in 2023, to reflect the performance of the streaming transactions at market price. ² Excluding expenses related to Brumadinho. | |||||
Proforma EBITDA – US$ million, 4Q23 vs. 4Q22
| 4 |
Sales & price realization
| Volume sold - Minerals and metals | |||||
| ‘000 metric tons | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Iron ore fines | 77,885 | 81,202 | 69,714 | 256,789 | 260,663 |
| ROM | 2,158 | 1,963 | 2,232 | 8,290 | 8,216 |
| Pellets | 10,285 | 8,789 | 8,613 | 35,840 | 33,164 |
| Nickel | 48 | 58 | 39 | 168 | 181 |
| Copper¹ | 98 | 72 | 74 | 308 | 244 |
| Gold as by-product ('000 oz)¹ | 125 | 73 | 104 | 388 | 277 |
| Silver as by-product ('000 oz)¹ | 513 | 533 | 364 | 1,800 | 1,611 |
| PGMs ('000 oz) | 59 | 54 | 41 | 263 | 215 |
| Cobalt (metric ton) | 492 | 927 | 399 | 2,172 | 2,361 |
| ¹ Including sales originated from both nickel and copper operations. | |||||
|
Average realized prices |
|||||
| US$/ton | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Iron ore - 62% Fe reference price | 128.3 | 99.0 | 114.0 | 119.8 | 120.2 |
| Iron ore fines Vale CFR/FOB realized price | 118.3 | 95.6 | 105.1 | 108.1 | 108.1 |
| Pellets CFR/FOB (wmt) | 163.4 | 165.6 | 161.2 | 161.9 | 188.6 |
| Nickel | 18,420 | 24,454 | 21,237 | 21,830 | 23,669 |
| Copper2 | 7,867 | 8,337 | 7,680 | 7,902 | 7,864 |
| Gold (US$/oz)12 | 2,125 | 1,677 | 1,872 | 1,996 | 1,785 |
| Silver (US$/oz)2 | 24.6 | 21.9 | 22.8 | 23.5 | 20.9 |
| Cobalt (US$/t)1 | 35,438 | 44,980 | 35,222 | 34,426 | 58,865 |
|
¹ Prices presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions. 2 Including sales originated from both nickel and copper operations. |
|||||
Costs
| COGS by business segment | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Iron Ore Solutions | 5,092 | 5,079 | 4,646 | 17,310 | 16,755 |
| Energy Transition Metals | 1,735 | 1,965 | 1,599 | 6,571 | 6,605 |
| Others | 64 | 111 | 64 | 208 | 668 |
| Total COGS of continuing operations¹ | 6,891 | 7,155 | 6,309 | 24,089 | 24,028 |
| Depreciation | 819 | 875 | 747 | 2,916 | 3,049 |
| COGS of continuing operations, ex-depreciation | 6,072 | 6,280 | 5,562 | 21,173 | 20,979 |
| ¹ COGS currency exposure in 4Q23 was as follows: 42.8% BRL, 51.1% USD, 5.9% CAD and 0.2% Other currencies. | |||||
Expenses
| Operating expenses | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| SG&A | 146 | 148 | 150 | 553 | 515 |
| Administrative | 121 | 121 | 124 | 463 | 430 |
| Personnel | 48 | 45 | 52 | 197 | 185 |
| Services | 41 | 44 | 32 | 131 | 125 |
| Depreciation | 10 | 9 | 12 | 47 | 41 |
| Others | 22 | 23 | 28 | 88 | 79 |
| Selling | 25 | 27 | 26 | 90 | 85 |
| R&D | 231 | 218 | 188 | 723 | 660 |
| Pre-operating and stoppage expenses | 108 | 125 | 115 | 450 | 479 |
| Expenses related to Brumadinho event and de-characterization of dams | 396 | 375 | 305 | 1,083 | 1,151 |
| Other operating expenses | (16) | 249 | 206 | 415 | 571 |
| Total operating expenses | 865 | 1,115 | 964 | 3,224 | 3,376 |
| Depreciation | 35 | 25 | 34 | 154 | 122 |
| Operating expenses, ex-depreciation | 830 | 1,090 | 930 | 3,070 | 3,254 |
| 5 |
Brumadinho
Impact of Brumadinho and De-characterization in 4Q23
| US$ million | Provisions balance as of 3Q232 | EBITDA impact | Payments | FX and other adjustments3 | Provisions balance as of 4Q23 |
| De-characterization | 3,337 | 153 | (145) | 106 | 3,451 |
| Agreements & donations¹ | 3,197 | 137 | (417) | 143 | 3,060 |
| Total Provisions | 6,534 | 290 | (562) | 249 | 6,511 |
| Incurred Expenses | - | 106 | (106) | - | - |
| Total | 6,534 | 396 | (668) | 249 | 6,511 |
|
¹ Includes Integral Reparation Agreement, individual, labor and emergency indemnifications, tailing removal and containment works. 2 Adjusted to reflect the reclassification of Pera structure to ARO. 3 Includes foreign exchange, present value and other adjustments. | |||||
Impact of Brumadinho and De-characterization from 2019 to 4Q23
| US$ million |
EBITDA impact |
Payments |
PV & FX adjust² |
Provisions balance as of 4Q23 |
| De-characterization | 5,191 | (1,596) | (144) | 3,451 |
| Agreements & donations¹ | 9,119 | (6,332) | 273 | 3,060 |
| Total Provisions | 14,310 | (7,928) | 129 | 6,511 |
| Incurred expenses | 2,979 | (2,979) | - | - |
| Others | 180 | (178) | (2) | - |
| Total | 17,469 | (11,085) | 127 | 6,511 |
|
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 & De-characterization commitments1,2:
| US$ billion |
Since 2019 until 4Q23 disbursed |
2024 | 2025 | 2026 | 2027 |
Yearly average 2028-2035³ |
| De-characterization | 1.6 | 0.6 | 0.6 | 0.6 | 0.5 | 0.3 |
| Integral Reparation Agreement & other reparation provisions | 6.3 | 1.1 | 1.0 | 0.7 | 0.3 | 0.14 |
| Incurred expenses | 3.0 | 0.5 | 0.4 | 0.4 | 0.3 | 0.45 |
| Total | 10.9 | 2.2 | 2.0 | 1.7 | 1.1 | - |
|
1 Estimate cash outflow for 2023-2035 period, given BRL-USD exchange rates of 4.8413. 2 Amounts stated without discount to present value, net of judicial deposits and inflation adjustments. 3 Estimate annual average cash flow for De-characterization provisions in the 2028-2035 period is US$ 273 million per year. 4 Disbursements related to the Integral Reparation Agreement ending in 2029. 5 Disbursements related to incurred expenses ending in 2028. | ||||||
| 6 |
Net income
| Reconciliation of proforma EBITDA to net income | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Proforma Adjusted EBITDA from continuing operations | 6,730 | 5,001 | 4,482 | 19,044 | 20,911 |
| Brumadinho event and de-characterization of dams | (396) | (375) | (305) | (1,083) | (1,151) |
| Adjusted EBITDA from continuing operations | 6,334 | 4,626 | 4,177 | 17,961 | 19,760 |
| Impairment reversal (impairment and disposals) of non-current assets, net 1 | (203) | (177) | (122) | (482) | 773 |
| Dividends received | (99) | (55) | - | (204) | (154) |
| Equity results and net income (loss) attributable to noncontrolling interests | (1,176) | 53 | 73 | (1,230) | 223 |
| Financial results | (874) | (658) | (385) | (1,946) | 2,268 |
| Income taxes | (709) | 835 | (127) | (3,046) | (2,971) |
| Depreciation, depletion & amortization | (855) | (900) | (780) | (3,070) | (3,171) |
| Net income from continuing operations attributable to Vale's shareholders | 2,418 | 3,724 | 2,836 | 7,983 | 16,728 |
| 1 Includes adjustment of US$ 82 million in 4Q23, US$ 47 million in 3Q23 and US$ 216 million in 2023, to reflect the performance of the streaming transactions at market price. | |||||
| Financial results | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Financial expenses, of which: | (380) | (291) | (362) | (1,459) | (1,179) |
| Gross interest | (190) | (149) | (192) | (744) | (612) |
| Capitalization of interest | 5 | 7 | 5 | 19 | 47 |
| Others | (163) | (110) | (137) | (586) | (462) |
| Financial expenses (REFIS) | (32) | (39) | (38) | (148) | (152) |
| Financial income | 105 | 92 | 100 | 432 | 520 |
| Shareholder Debentures | (483) | (99) | 30 | (179) | 659 |
| Financial Guarantee | - | 2 | - | - | 481 |
| Derivatives¹ | 200 | 373 | (51) | 903 | 1,154 |
| Currency and interest rate swaps | 218 | 323 | (92) | 900 | 1,130 |
| Others (commodities, etc) | (18) | 50 | 41 | 3 | 24 |
| Foreign exchange and monetary variation | (316) | (735) | (102) | (1,643) | 633 |
| Financial result, net | (874) | (658) | (385) | (1,946) | 2,268 |
| ¹ The cash effect of the derivatives was a gain of US$ 297 million in 4Q23. | |||||
Main factors that affected net income in 4Q23 vs. 4Q22
| US$ million | ||
| 4Q22 Net income from continuing operations attributable to Vale's shareholders | 3,724 | |
| Changes to: | ||
| EBITDA proforma | 1,729 | Mainly due to higher iron ore realized prices and higher copper sales volumes. |
| Brumadinho and de-characterization of dams | (21) | |
| Impairment reversal (impairment and disposals) of non-current assets, net¹ | (26) | |
| Dividends received | (44) | |
| Equity results and net income (loss) attributable to noncontrolling interests | (1,229) | Mainly due to provision increase related to Samarco’s dam failure. |
| Financial results | (216) | 4Q22 impacted by the reduction of the mark-to-market of shareholders’ debentures. |
| Income taxes | (1,544) | Mainly due to an increase in taxable income and higher operational results. |
| Depreciation, depletion & amortization | 45 | |
| 4Q23 Net income from continuing operations attributable to Vale's shareholders | 2,418 | |
| ¹ Includes adjustment of US$ 82 million in 4Q23, to reflect the performance of the streaming transactions at market price. | ||
| 7 |
CAPEX
| Growth and sustaining projects execution | ||||||||||
| US$ million | 4Q23 | % | 4Q22 | % | 3Q23 | % | 2023 | % | 2022 | % |
| Growth projects | 481 | 22.7 | 426 | 23.8 | 468 | 32.0 | 1,651 | 27.9 | 1,587 | 29.1 |
| Iron Ore Solutions | 374 | 17.7 | 285 | 15.9 | 354 | 24.2 | 1,219 | 20.6 | 866 | 15.9 |
| Energy Transition Metals | 95 | 4.5 | 100 | 5.6 | 96 | 6.6 | 358 | 6.0 | 338 | 6.2 |
| Nickel | 84 | 4.0 | 16 | 0.9 | 67 | 4.6 | 235 | 4.0 | 49 | 0.9 |
| Copper | 11 | 0.5 | 84 | 4.7 | 29 | 2.0 | 123 | 2.1 | 289 | 5.3 |
| Energy and others | 12 | 0.6 | 41 | 2.3 | 18 | 1.2 | 74 | 1.3 | 383 | 7.0 |
| Sustaining projects | 1,637 | 77.3 | 1,361 | 76.2 | 996 | 68.0 | 4,269 | 72.1 | 3,859 | 70.9 |
| Iron Ore Solutions | 946 | 44.7 | 764 | 42.8 | 609 | 41.6 | 2,539 | 42.9 | 2,236 | 41.1 |
| Energy Transition Metals | 664 | 31.4 | 567 | 31.7 | 357 | 24.4 | 1,610 | 27.2 | 1,521 | 27.9 |
| Nickel | 520 | 24.6 | 480 | 26.9 | 298 | 20.4 | 1,305 | 22.0 | 1,287 | 23.6 |
| Copper | 144 | 6.8 | 87 | 4.9 | 59 | 4.0 | 305 | 5.2 | 234 | 4.3 |
| Energy and others | 27 | 1.3 | 30 | 1.7 | 30 | 2.0 | 120 | 2.0 | 102 | 1.9 |
| Total | 2,118 | 100.0 | 1,787 | 100.0 | 1,464 | 100.0 | 5,920 | 100.0 | 5,446 | 100.0 |
Growth projects
Investments in growth projects under construction totaled US$ 481 million in Q4, a 13% increase y/y, driven by higher investments in Iron Ore Solutions, mainly in the Capanema project and the Rio Tocantins Bridge duplication, in the Carajás Railway. In Energy Transition Metals, the increase in disbursements for the Onça Puma 2nd Furnace and the Bahadopi nickel project were offset by lower disbursements at Salobo III as the ramp-up advances.
Growth projects progress indicator[2]
| Projects | Capex 4Q23 | Financial progress1 | Physical progress | Comments |
| Iron Ore Solutions | ||||
|
Northern System 240 Mtpy Capacity: 10 Mtpy Start-up: 1H23 Capex: US$ 772 MM |
37 | 83% | 94%2 | Load tests at the mine’s loading silo are programmed to start in 1Q24. For the railroad, initial works on the bridge over the Jacundá river have been completed. At the port, the load tests for the entire project route were successfully completed. |
|
Serra Sul 120 Mtpy3 Capacity: 20 Mtpy Start-up: 2H26 Capex: US$ 1,548 MM4 |
123 | 58% | 61% | Construction of the reinforced earth wall at the mine was completed. The foundations for the conveyor belts in the West Corridor and the CT-05 Transfer House have also been completed. Pre-assembly work on the semi-mobile crusher and modules of the long-distance conveyor belt has begun. At the plant, concrete is being laid according to plan. |
|
Capanema’s Maximization Capacity: 18 Mtpy Start-up: 2H25 Capex: US$ 913 MM |
66 | 43% | 68% | Assembly of equipment, crushing machinery, structures and conveyor belts is on schedule to be ready by 3Q24. The assembly of the long-distance conveyor belt galleries is on schedule. |
|
Briquettes Tubarão Capacity: 6 Mtpy Start-up: 4Q23 (Plant 1) | 1H24 (Plant 2) Capex: US$ 256 MM |
31 | 94% | 96% | Plant 1 started-up in November. Plant 2 is in the commissioning phase. |
| contd. |
[2] Pre-Operating expenses included in the total estimated capex information, according to the approvals from Vale´s Board of Directors
| 8 |
Growth projects progress indicator[3] contd.
| Projects | Capex 4Q23 | Financial progress1 | Physical progress | Comments |
| Energy Transition Materials | ||||
|
Onça Puma 2nd Furnace Capacity: 12-15 ktpy Start-up: 2H25 Capex: US$ 555 MM |
36 | 18% | 26% | Assembly of the second furnace, detailed engineering, and equipment and services’ procurement is underway. |
|
1 CAPEX disbursement until end of 4Q23 vs. CAPEX expected. 2 Considering physical progress of mine, plant and logistics. 3 The project consists of increasing the S11D mine-plant capacity by 20 Mtpy. 4 CAPEX adjusted to include Pre-operating Expenses | ||||
Sustaining projects
Investments in sustaining our operations totaled US$ 1.637 billion in Q4, a 20% increase y/y, with investments in mine equipment, mining fleet and in adjustments to meet Critical Activity Requirements.
Sustaining projects progress indicator3
| Projects | Capex 4Q23 | Financial progress1 | Physical progress | Comments |
| Iron Ore Solutions | ||||
|
Compact Crushing S11D Capacity: 50 Mtpy Start-up: 2H26 Capex: US$ 755 MM |
46 | 16% | 26% | Construction of the primary crushing structures continues according to plan with the walls of the building being built. Work on the Western Corridor conveyor belts is in final stages and is expected to be completed in 1H24. |
|
N3 – Serra Norte Capacity: 6 Mtpy Start-up: 1H26 Capex: US$ 84 MM |
1 | 18% | 18% | The Installation License and Vegetation Suppression Authorization are expected to be obtained by the end of 2024. As a result, the start-up has been revised to 1H26. |
|
VGR 1 plant revamp3 Capacity: 17 Mtpy Start-up: 2H24 Capex: US$ 67 MM |
10 | 33% | 78% | Civil works on the Sump were completed in Dec/23 and the slurry pumps were assembled. Electromechanical assembly of the slewing cranes has begun. The operational readiness plan is underway. |
| Energy Transition Materials | ||||
|
Voisey’s Bay Mine Extension Capacity: 45 ktpy (Ni) and 20 ktpy (Cu) Start-up: 1H212 Capex: US$ 2,690 MM |
120 | 92% | 92% | The main surface assets are completed and already operating. The electromechanical assembly on the remaining surface assets are well advanced (above 60% physical progress). In the underground portion, the scope in Reid Brook is completed and the project is fully focused on Eastern Deeps. The mine development is concluded and construction is ongoing. |
|
1 CAPEX disbursement until end of 4Q23 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. 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.
| ||||
[3] Pre-Operating expenses included in the total estimated capex information, according to the approvals from Vale´s Board of Directors
| 9 |
| Sustaining capex by type - 4Q23 |
| US$ million | Iron Ore Solutions | Energy Transition Materials | Energy and others | Total |
| Enhancement of operations | 533 | 400 | 2 | 935 |
| Replacement projects | 12 | 159 | - | 171 |
| Filtration and dry stacking projects | 45 | - | - | 45 |
| Dam management | 48 | 11 | - | 59 |
| Other investments in dams and waste dumps | 74 | 23 | - | 97 |
| Health and Safety | 88 | 59 | 2 | 149 |
| Social investments and environmental protection | 79 | 4 | - | 83 |
| Administrative & Others | 67 | 8 | 23 | 98 |
| Total | 946 | 664 | 27 | 1,637 |
| 10 |
Free cash flow
Free Cash Flow from Operations reached US$ 2.513 billion in 4Q23, US$ 2.526 billion higher y/y, largely explained by US$ 1.729 billion increase in Proforma EBITDA and US$ 948 million lower negative working capital impact.
In the quarter, working capital variation is explained by the US$ 832 million increase in accounts receivable mainly due to the combined effect of (i) expected seasonally higher iron ore accrual sales volume (17.3 Mt in Q4 versus 16.4 Mt in Q3) led by stronger sales at the end of Q4; and (ii) iron ore provisional prices above quarter average (US$ 139.1/t vs. US$ 128.3/t, respectively).
Vale’s cash generation and position was primarily used to distribute US$ 2.040 billion to shareholders in dividends and interest on capital.
Free Cash Flow – US$ million, 4Q23
| 11 |
Debt
| Debt indicators | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Gross debt¹ | 12,471 | 11,181 | 12,556 |
| Lease (IFRS 16) | 1,452 | 1,531 | 1,480 |
| Gross debt and leases | 13,923 | 12,712 | 14,036 |
| Cash, cash equivalents and short-term investments² | (4,363) | (4,797) | (4,027) |
| Net debt | 9,560 | 7,915 | 10,009 |
| Currency swaps³ | (664) | (211) | (722) |
| Brumadinho provisions | 3,060 | 3,312 | 3,197 |
| Samarco & Renova Foundation provisions4 | 4,208 | 3,124 | 3,010 |
| Expanded net debt | 16,164 | 14,140 | 15,494 |
| Average debt maturity (years) | 7.9 | 8.7 | 8.2 |
| Cost of debt after hedge (% pa) | 5.6 | 5.5 | 5.6 |
| Total debt and leases / adjusted LTM EBITDA (x) | 0.8 | 0.6 | 0.9 |
| Net debt / adjusted LTM EBITDA (x) | 0.5 | 0.4 | 0.6 |
| Adjusted LTM EBITDA / LTM gross interest (x) | 24.1 | 32.3 | 23.0 |
|
¹ Does not include leases (IFRS 16). ² Includes US$ 703 million related to non-current assets held for sale in 4Q23 due to the upcoming PTVI divestment. ³ Includes interest rate swaps. 4 Does not include provision for de-characterization of Germano dam in the amount of US$ 219 million in 4Q23, US$ 209 million in 3Q23 and US$ 197 million in 4Q22. | |||
Gross debt and leases were US$ 13.9 billion as of December 31st, 2023, US$ 113 million lower q/q.
This quarter we recognized a provision increase of US$1.2 billion related to Samarco’s dam failure and a potential settlement with Brazilian authorities. Although still subject to uncertainty, our assessment considers all information available from the status of the potential settlement agreement, the claims related to the Samarco dam failure and the extent to which Samarco may be able to fund any future outflows.
As such, expanded net debt increased in the quarter, totaling US$ 16.2 billion, nearly US$ 0.7 billion higher q/q. The higher cash position in December contributed to partially offset the impact of the provision increase. We maintain our US$ 10-20 billion expanded net debt target range.
The average debt maturity declined slightly to 7.9 years (compared to 8.2 years at the end of 3Q23). The average annual cost of debt after currency and interest rate swaps was 5.6%, flat q/q.
| 12 |
Performance of the business segments
| Proforma Adjusted EBITDA from continuing operations, by business area | ||||||||||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |||||||
| Iron Ore Solutions | 6,411 | 4,721 | 4,455 | 18,127 | 19,443 | |||||||
| Iron ore fines | 5,467 | 3,955 | 3,696 | 14,888 | 15,670 | |||||||
| Pellets | 925 | 743 | 712 | 3,122 | 3,653 | |||||||
| Other Ferrous Minerals | 19 | 23 | 47 | 117 | 120 | |||||||
| Energy Transition Metals¹ | 523 | 775 | 379 | 1,951 | 2,493 | |||||||
| Nickel | 152 | 594 | 100 | 815 | 1,857 | |||||||
| Copper | 375 | 165 | 269 | 1,100 | 569 | |||||||
| Other | (4) | 16 | 10 | 37 | 67 | |||||||
| Others² | (204) | (495) | (352) | (1,034) | (1,025) | |||||||
| Total | 6,730 | 5,001 | 4,482 | 19,044 | 20,911 | |||||||
|
¹ Includes an adjustment of US$ 82 million in 4Q23 and US$ 47 million 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. ² Including a negative y/y effect of provisions related to communities’ programs, reversal of tax credit provisions, and contingency loss. | ||||||||||||
Segment information 4Q23 | ||||||||||||
| Expenses | ||||||||||||
| US$ million | Net operating revenues | Cost¹ | SG&A and others¹ | R&D¹ | Pre operating & stoppage¹ | Dividends and interest received from associates and JVs | Adjusted EBITDA | |||||
| Iron Ore Solutions | 11,030 | (4,568) | 87 | (104) | (80) | 46 | 6,411 | |||||
| Iron ore fines | 9,212 | (3,704) | 95 | (90) | (67) | 21 | 5,467 | |||||
| Pellets | 1,680 | (768) | (4) | (3) | (5) | 25 | 925 | |||||
| Others ferrous | 138 | (96) | (4) | (11) | (8) | - | 19 | |||||
| Energy Transition Metals | 1,982 | (1,443) | 64 | (78) | (2) | - | 523 | |||||
| Nickel² | 1,177 | (980) | (9) | (35) | (1) | - | 152 | |||||
| Copper3 | 855 | (427) | (9) | (43) | (1) | - | 375 | |||||
| Others4 | (50) | (36) | 82 | - | - | - | (4) | |||||
|
Brumadinho event and de-characterization of dams |
- | - | (396) | - | - | - | (396) | |||||
| Others | 42 | (61) | (188) | (49) | (1) | 53 | (204) | |||||
| Total | 13,054 | (6,072) | (433) | (231) | (83) | 99 | 6,334 | |||||
|
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$ 82 million increasing the adjusted EBITDA in 4Q23, 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. | ||||||||||||
| 13 |
Iron Ore Solutions
| Selected financial indicators - Iron Ore Solutions | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net Revenues | 11,030 | 9,330 | 8,862 | 34,079 | 34,916 |
| Costs¹ | (4,568) | (4,561) | (4,164) | (15,451) | (14,946) |
| SG&A and Other expenses¹ | 87 | 94 | (79) | (14) | (51) |
| Pre-operating and stoppage expenses¹ | (80) | (102) | (89) | (338) | (381) |
| R&D expenses | (104) | (84) | (75) | (283) | (215) |
| Dividends and interests on associates and JVs | 46 | 44 | - | 134 | 120 |
| Adjusted EBITDA | 6,411 | 4,721 | 4,455 | 18,127 | 19,443 |
| Depreciation and amortization | (549) | (535) | (508) | (1,962) | (1,890) |
| Adjusted EBIT | 5,862 | 4,186 | 3,947 | 16,165 | 17,553 |
| Adjusted EBIT margin (%) | 53.1 | 44.9 | 44.5 | 47.4 | 50.3 |
| ¹ Net of depreciation and amortization. | |||||
| Iron Ore Solutions EBITDA Variation 4Q23 vs. 4Q22 | ||||||
| Drivers | ||||||
| US$ million | 4Q22 | Volume | Prices | Others | Total variation | 4Q23 |
| Iron ore fines | 3,955 | (161) | 1,763 | (90) | 1,512 | 5,467 |
| Pellets | 743 | 109 | (2) | 75 | 182 | 925 |
| Others | 23 | 2 | 16 | (22) | (4) | 19 |
| Iron Ore Solutions | 4,721 | (50) | 1,777 | (37) | 1,690 | 6,411 |
The 36% increase in EBITDA y/y is mainly explained by higher iron ore fines realized prices (US$ 1.777 billion), mainly due to 30% higher average iron ore reference price and the positive effect from forward price adjustments.
Revenues
| Iron Ore Solutions' volumes, prices, premiums and revenues | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Volume sold ('000 metric tons) | |||||
| Iron ore fines | 77,885 | 81,202 | 69,714 | 256,789 | 260,663 |
| IOCJ | 13,074 | 22,605 | 14,758 | 52,673 | 68,027 |
| BRBF | 45,199 | 41,150 | 36,454 | 134,333 | 128,800 |
| Pellet feed – China (PFC1)1 | 3,279 | 2,758 | 4,234 | 13,335 | 8,887 |
| Lump | 1,871 | 2,212 | 2,367 | 7,498 | 8,406 |
| High-silica products | 8,646 | 6,698 | 6,131 | 26,736 | 26,617 |
| Other fines (60-62% Fe) | 5,816 | 5,779 | 5,770 | 22,214 | 19,926 |
| ROM | 2,158 | 1,963 | 2,232 | 8,290 | 8,216 |
| Pellets | 10,285 | 8,789 | 8,613 | 35,840 | 33,164 |
| Share of premium products2 (%) | 80% | 83% | 81% | 79% | 80% |
| Average prices (US$/t) | |||||
| Iron ore - 62% Fe price | 128.3 | 99.0 | 114.0 | 119.8 | 120.2 |
| Iron ore - 62% Fe low alumina index | 128.4 | 99.8 | 116.1 | 121.6 | 123.0 |
| Iron ore - 65% Fe index | 138.8 | 111.4 | 125.5 | 132.2 | 139.2 |
| Provisional price at the end of the quarter | 139.1 | 116.3 | 117.0 | 139.1 | 116.3 |
| Iron ore fines Vale CFR reference (dmt) | 131.6 | 107.4 | 116.3 | 120.5 | 121.1 |
| Iron ore fines Vale CFR/FOB realized price | 118.3 | 95.6 | 105.1 | 108.1 | 108.1 |
| Pellets CFR/FOB (wmt) | 163.4 | 165.6 | 161.2 | 161.9 | 188.6 |
| contd. | |||||
| 14 |
| Iron Ore Solutions' volumes, prices, premiums and revenues contd. | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Iron ore fines and pellets quality premium (US$/t) | |||||
| Iron ore fines quality premium | (1.1) | 1.6 | 0.8 | (0.2) | 1.8 |
| Pellets weighted average contribution | 2.7 | 3.8 | 3.0 | 3.2 | 5.1 |
| Total | 1.6 | 5.4 | 3.8 | 3.0 | 6.9 |
| Net operating revenue by product (US$ million) | |||||
| Iron ore fines | 9,212 | 7,767 | 7,331 | 27,760 | 28,188 |
| ROM | 29 | 22 | 33 | 122 | 103 |
| Pellets | 1,680 | 1,456 | 1,388 | 5,803 | 6,256 |
| Others | 109 | 85 | 110 | 394 | 369 |
| Total | 11,030 | 9,330 | 8,862 | 34,079 | 34,916 |
|
1 Products concentrated in Chinese facilities. 2 Pellets, Carajás (IOCJ), Brazilian Blend Fines (BRBF) and pellet feed. |
|||||
| 15 |
Iron ore fines, excluding Pellets and ROM
Revenues & price realization
Price realization iron ore fines – US$/t, 4Q23
The average realized iron ore fines price was US$ 118.3/t, US$ 13.2/t higher q/q, largely attributed to higher benchmark iron ore prices (US$ 14.3/t higher y/y), and a positive impact from forward price adjustments (US$ 4.0/t higher y/y).
| Iron Ore fines pricing system breakdown (%) | |||
| 4Q23 | 4Q22 | 3Q23 | |
| Lagged | 12 | 12 | 13 |
| Current | 50 | 57 | 44 |
| Provisional | 38 | 31 | 43 |
| Total | 100 | 100 | 100 |
Costs
| Iron ore fines cash cost and freight | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Costs (US$ million) | |||||
| Vale’s iron ore fines C1 cash cost (A) | 1,924 | 1,759 | 1,784 | 6,606 | 5,856 |
| Third-party purchase costs¹ (B) | 468 | 274 | 402 | 1,412 | 1,100 |
| Vale’s C1 cash cost ex-third-party volumes (C = A – B) | 1,456 | 1,485 | 1,383 | 5,194 | 4,756 |
| Sales Volumes (Mt) | |||||
| Volume sold (ex-ROM) (D) | 77.9 | 81.2 | 69.7 | 256.8 | 260.7 |
| Volume sold from third-party purchases (E) | 7.8 | 5.1 | 6.6 | 23.6 | 18.5 |
| Volume sold from own operations (F = D – E) | 70.1 | 76.2 | 63.1 | 233.2 | 242.2 |
| contd. | |||||
| 16 |
| Iron ore fines cash cost and freight contd. | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Iron ore fines cash cost (ex-ROM, ex-royalties), FOB (US$ /t) | |||||
| Vale’s C1 cash cost ex-third-party purchase cost (C/F) | 20.8 | 19.5 | 21.9 | 22.3 | 19.6 |
| Average third-party purchase C1 cash cost (B/E) | 59.9 | 54.2 | 60.5 | 59.9 | 59.5 |
| Vale's iron ore cash cost (A/D) | 24.7 | 21.7 | 25.6 | 25.7 | 22.5 |
| Freight | |||||
| Maritime freight costs (G) | 1,258 | 1,312 | 1,129 | 3,929 | 4,328 |
| % of CFR sales (H) | 86% | 86% | 86% | 83% | 82% |
| Volume CFR (Mt) (I = D x H) | 66.9 | 69.8 | 59.8 | 213.9 | 214.5 |
| Vale's iron ore unit freight cost (US$/t) (G/I) | 18.8 | 18.8 | 18.9 | 18.4 | 20.2 |
| ¹ Includes logistics costs related to third-party purchases |
| Iron ore fines COGS - 4Q22 vs. 4Q23 | ||||||
| Drivers | ||||||
| US$ million | 4Q22 | Volume | Exchange rate | Others | Total variation | 4Q23 |
| C1 cash costs | 1,759 | (75) | 60 | 180 | 165 | 1,924 |
| Freight | 1,312 | (55) | - | 1 | (54) | 1,258 |
| Distribution costs | 153 | (6) | - | 6 | - | 153 |
| Royalties & others | 520 | (21) | - | (130) | (151) | 369 |
| Total costs before depreciation and amortization | 3,744 | (157) | 60 | 57 | (40) | 3,704 |
| Depreciation | 382 | (16) | 13 | (2) | (5) | 377 |
| Total | 4,126 | (173) | 73 | 55 | (45) | 4,081 |
C1 cash cost variation (excluding 3rd-party purchases) – US$/t, 4Q23 vs. 3Q23
Vale’s C1 cash cost, ex-third-party purchases, totaled US$ 22.3/t in 2023, below the US$ 22.5/t guidance for the year. In Q4, the C1 cash cost decreased US$ 1.1/t q/q, reaching US$ 20.8/t. The main cost reduction drivers were (i) continued effort to improve efficiency across the business; (ii) positive effect of exchange rate; (iii) inventory carry-over effect; and (iv) slightly higher volumes diluting fixed costs.
Vale's maritime freight cost was slightly lower q/q, reaching US$ 18.8/t, driven by a lower exposure to spot freight. CFR sales totaled 66.9 Mt in Q4, reflecting 86% of total iron ore fines sales.
| 17 |
Expenses
| Expenses - Iron Ore fines | |||||
| US$ millions | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| SG&A | 17 | 21 | 21 | 70 | 64 |
| R&D | 90 | 83 | 70 | 256 | 208 |
| Pre-operating and stoppage expenses | 67 | 92 | 78 | 293 | 342 |
| Other expenses¹ | (112) | (114) | 58 | (83) | (10) |
| Total expenses | 62 | 82 | 227 | 536 | 604 |
| ¹ Including a positive tax recovery effect. | |||||
Iron ore pellets
| Pellets – EBITDA | ||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | Comments |
| Net revenues / Realized prices | 1,680 | 1,456 | 1,388 | Driven by higher sales volumes (1.5 Mt higher y/y and 1.7 Mt higher q/q). |
| Dividends from leased pelletizing plants | 25 | 30 | - | |
| Cash costs (Iron ore, leasing, freight, overhead, energy and other) | (768) | (735) | (669) | Flat unitary cash costs. |
| Pre-operational & stoppage expenses | (5) | (5) | (6) | |
| Expenses (Selling, R&D and other) | (7) | (3) | (1) | |
| EBITDA | 925 | 743 | 712 | |
| EBITDA/t | 90 | 85 | 83 |
Iron ore fines and pellets cash break-even landed in China[4]
| Iron ore fines and pellets cash break-even landed in China | |||||
| US$/t | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Vale's C1 cash cost ex-third-party purchase cost | 20.8 | 19.5 | 21.9 | 22.3 | 19.6 |
| Third party purchases cost adjustments | 3.9 | 2.2 | 3.7 | 3.4 | 2.8 |
| Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t) | 24.7 | 21.7 | 25.6 | 25.7 | 22.5 |
| Iron ore fines freight cost (ex-bunker oil hedge) | 18.8 | 18.8 | 18.9 | 18.4 | 20.2 |
| Iron ore fines distribution cost | 2.0 | 1.9 | 2.6 | 2.5 | 2.0 |
| Iron ore fines expenses1 & royalties | 5.2 | 7.2 | 7.7 | 6.6 | 6.9 |
| Iron ore fines moisture adjustment | 4.2 | 4.3 | 4.7 | 4.6 | 4.6 |
| Iron ore fines quality adjustment | 1.1 | (1.6) | (0.8) | 0.2 | (1.8) |
| Iron ore fines EBITDA break-even (US$/dmt) | 56.0 | 52.3 | 58.7 | 58.0 | 54.4 |
| Iron ore fines pellet adjustment | (2.7) | (3.8) | (3.0) | (3.2) | (5.1) |
| Iron ore fines and pellets EBITDA break-even (US$/dmt) | 53.3 | 48.5 | 55.7 | 54.8 | 49.3 |
| Iron ore fines sustaining investments | 10.9 | 8.7 | 7.8 | 8.8 | 7.8 |
| Iron ore fines and pellets cash break-even landed in China (US$/dmt) | 64.2 | 57.2 | 63.5 | 63.6 | 57.1 |
| ¹ Net of depreciation and includes dividends received. Including stoppage expenses. | |||||
[4] Measured by unit cost + expenses + sustaining investment adjusted for quality. Does not include the impact from the iron ore fines and pellets pricing system mechanism.
| 18 |
Energy Transition Metals
| Energy Transition Metals EBITDA overview – 4Q23 | ||||||||||
| US$ million | Sudbury | Voisey’s Bay & Long Harbour | PTVI (site) | Onça Puma | Sossego | Salobo | Others | Subtotal Energy Transition Metals | Marketing activities and others¹ | Total Energy Transition Metals |
| Net Revenues | 763 | 170 | 294 | 69 | 198 | 657 | (119) | 2,032 | (50) | 1,982 |
| Costs | (698) | (196) | (188) | (87) | (113) | (314) | 189 | (1,407) | (36) | (1,443) |
| Selling and other expenses | 8 | 3 | (4) | (5) | (1) | (3) | (16) | (18) | 82 | 64 |
| Pre-operating and stoppage expenses | - | - | - | (1) | - | (1) | - | (2) | - | (2) |
| R&D | (19) | (9) | (2) | - | (5) | (13) | (30) | (78) | - | (78) |
| EBITDA | 54 | (32) | 100 | (24) | 79 | 326 | 24 | 527 | (4) | 523 |
| ¹ Includes an adjustment of US$ 82 million increasing the adjusted EBITDA in 4Q23, 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. | ||||||||||
Nickel operations
| Selected financial indicators, ex- marketing activities | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net Revenues | 1,177 | 1,795 | 1,023 | 4,742 | 5,509 |
| Costs¹ | (980) | (1,138) | (925) | (3,739) | (3,498) |
| SG&A and other expenses¹ | (9) | (20) | 31 | (67) | (38) |
| Pre-operating and stoppage expenses¹ | (1) | (1) | (1) | (2) | (1) |
| R&D expenses | (35) | (42) | (28) | (119) | (115) |
| Adjusted EBITDA | 152 | 594 | 100 | 815 | 1,857 |
| Depreciation and amortization | (236) | (272) | (208) | (876) | (883) |
| Adjusted EBIT | (84) | 322 | (108) | (61) | 974 |
| Adjusted EBIT margin (%) | (7.1) | 17.9 | (10.5) | (1.3) | 17.7 |
| ¹ Net of depreciation and amortization. | |||||
| EBITDA variation - US$ million (4Q23 vs. 4Q22), ex-marketing activities | |||||||
| Drivers | |||||||
| US$ million | 4Q22 | Volume | Prices | By-products | Others | Total variation | 4Q23 |
| Nickel excl. marketing | 594 | (24) | (291) | (82) | (45) | (442) | 152 |
| EBITDA by operations, ex-marketing activities | ||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 4Q23 vs. 4Q22 Comments |
| Sudbury¹ | 54 | 192 | (22) | Lower nickel prices. |
| Voisey’s Bay & Long Harbour | (32) | 65 | (67) | Lower nickel prices and higher consumption of external feed. |
| PTVI | 100 | 95 | 104 | Lower fixed costs alongside lower fuel prices and increase in sales volume, which have offset the lower nickel price. |
| Onça Puma | (24) | 101 | 15 | Lower sales volumes and increased fixed cost due to scheduled maintenance on the furnace. |
| Others² | 54 | 141 | 70 | Lower nickel sales volumes directly sold by Matsusaka. |
| Total | 152 | 594 | 100 | |
| ¹ Includes the Thompson operations and Clydach refinery. ² Includes Japanese operations, intercompany eliminations, purchase of finished nickel. Hedge results have been relocated to each nickel business operation. | ||||
| 19 |
Revenues & price realization
| Revenues & price realization | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Volume sold ('000 metric tons) | |||||
| Nickel | 48 | 58 | 39 | 168 | 181 |
| Copper | 21 | 27 | 12 | 74 | 78 |
| Gold as by-product ('000 oz) | 11 | 11 | 9 | 42 | 40 |
| Silver as by-product ('000 oz) | 227 | 355 | 122 | 861 | 919 |
| PGMs ('000 oz) | 59 | 54 | 41 | 263 | 215 |
| Cobalt (metric ton) | 492 | 927 | 399 | 2,172 | 2,361 |
| Average realized prices (US$/t) | |||||
| Nickel | 18,420 | 24,454 | 21,237 | 21,830 | 23,669 |
| Copper | 7,602 | 7,610 | 7,423 | 7,720 | 7,459 |
| Gold (US$/oz) | 2,065 | 1,750 | 1,851 | 1,946 | 1,713 |
| Silver (US$/oz) | 25.2 | 23.6 | 22.5 | 23.1 | 21.1 |
| Cobalt | 35,438 | 44,980 | 35,222 | 34,426 | 58,865 |
| Net revenue by product - ex marketing activities (US$ million) | |||||
| Nickel | 888 | 1,422 | 833 | 3,664 | 4,279 |
| Copper | 162 | 205 | 89 | 570 | 578 |
| Gold as by-product¹ | 23 | 20 | 17 | 82 | 68 |
| Silver as by-product | 6 | 9 | 3 | 20 | 20 |
| PGMs | 71 | 87 | 54 | 285 | 390 |
| Cobalt¹ | 18 | 42 | 14 | 75 | 139 |
| Others | 9 | 10 | 13 | 46 | 35 |
| Total | 1,177 | 1,795 | 1,023 | 4,742 | 5,509 |
| ¹ Revenues presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions. | |||||
| Breakdown of nickel volumes sold, realized price and premium | |||||
| 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 | |
| Volumes (kt) | |||||
| Upper Class I nickel | 25.7 | 28.9 | 21.7 | 93.9 | 93.4 |
| - of which: EV Battery | 0.6 | 1.8 | 0.2 | 3.6 | 5.7 |
| Lower Class I nickel | 7.2 | 7.0 | 4.6 | 20.3 | 24.2 |
| Class II nickel | 9.9 | 17.8 | 9.4 | 36.8 | 46.6 |
| Intermediates | 5.4 | 4.5 | 3.6 | 16.9 | 16.5 |
| Nickel realized price (US$/t) | |||||
| LME average nickel price | 17,247 | 25,292 | 20,344 | 21,474 | 25,605 |
| Average nickel realized price | 18,420 | 24,454 | 21,237 | 21,830 | 23,669 |
| Contribution to the nickel realized price by category: | |||||
| Nickel average aggregate (premium/discount) | 215 | (250) | 123 | 117 | (40) |
| Other timing and pricing adjustments contributions¹ | 958 | (588) | 770 | 239 | (1,895) |
| Premium/discount by product (US$/t) | |||||
| Upper Class I nickel | 1,430 | 1,520 | 1,755 | 1,630 | 1,530 |
| Lower Class I nickel | 980 | 670 | 1,368 | 1,200 | 690 |
| Class II nickel | (1,690) | (2,370) | (2,542) | (2,340) | (1,690) |
| Intermediates | (3,100) | (4,750) | (4,361) | (4,260) | (5,270) |
|
¹ Comprises (i) the 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$ 214/t , (ii) fixed-price sales, with a positive impact of US$ 187/t and (iii) the effect of the hedging on Vale’s nickel price realization, with a positive impact of US$ 579/t in the quarter and (iv) other effects with a negative impact of US$ 22/t. Note: The nickel realized price for 4Q23 was impacted by a settlement price in the quarter of circa US$ 20,342/t. The average strike price for the complete hedge position was flat at US$ 34,928/t. | |||||
The average nickel realized price was US$ 18,420/t, down 13.3% q/q, mainly due to 15.2% lower LME reference prices q/q. The average realized
nickel price in Q4 was 7% higher than the LME reference price, mainly due to the impact of positive hedging results and the higher share
of Class I products in sales mix, sold at higher premiums.
| Product type by operation | |||||
| % of source sales | North Atlantic | PTVI & Matsusaka | Onça Puma | Total 4Q23 | Total 4Q22 |
| Upper Class I | 75.6 | - | - | 53.4 | 49.7 |
| Lower Class I | 21.0 | - | - | 14.9 | 12.0 |
| Class II | 1.8 | 46.9 | 100.0 | 20.6 | 30.5 |
| Intermediates | 1.6 | 53.1 | - | 11.2 | 7.7 |
| 20 |
Costs
| Nickel COGS, excluding marketing activities - 4Q23 vs. 4Q22 | ||||||||||
| Drivers | ||||||||||
| US$ million | 4Q22 | Volume | Exchange rate | Others | Total variation | 4Q23 | ||||
| Nickel operations | 1,138 | (195) | 2 | 35 | (158) | 980 | ||||
| Depreciation | 272 | (46) | 1 | 9 | (35) | 236 | ||||
| Total | 1,410 | (241) | 3 | 44 | (194) | 1,216 | ||||
Unit cash cost of sales by operation, net of by-product credits | ||||||||||
| US$/t | 4Q23 | 4Q22 | 3Q23 | 4Q23 vs. 4Q22 Comments | ||||||
| Sudbury¹,² | 16,007 | 16,435 | 21,645 | Higher fixed cost dilution in Clydach. | ||||||
| Voisey’s Bay & Long Harbour² | 21,392 | 17,797 | 30,316 | Higher consumption of external feed. | ||||||
| PTVI | 9,116 | 12,150 | 9,915 | Higher dilution of fixed costs and lower fuel costs. | ||||||
| Onça Puma | 17,430 | 10,412 | 11,543 | Lower dilution of fixed costs and higher maintenance costs due to furnace rebuild. | ||||||
|
¹ Sudbury figures include Thompson and Clydach costs. ² A large portion of Sudbury, including Clydach, and Long Harbour finished nickel production is derived from intercompany transfers, as well as from the purchase of ore or nickel intermediates from third parties. These transactions are valued at fair market value. | ||||||||||
EBITDA break-even – nickel operations
| EBITDA break-even | |||||
| US$/t | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| COGS ex. 3rd-party feed | 19,329 | 18,660 | 23,039 | 21,268 | 18,346 |
| COGS¹ | 20,320 | 19,577 | 23,581 | 22,274 | 19,351 |
| By-product revenues¹ | (6,003) | (6,390) | (4,807) | (6,421) | (6,798) |
| COGS after by-product revenues | 14,317 | 13,187 | 18,774 | 15,853 | 12,553 |
| Other expenses² | 919 | 1,017 | (81) | 1,117 | 847 |
| Total Costs | 15,236 | 14,204 | 18,693 | 16,970 | 13,400 |
| Nickel average aggregate (premium) discount | (215) | 250 | (123) | (117) | 40 |
| EBITDA breakeven³ | 15,021 | 14,454 | 18,570 | 16,854 | 13,440 |
|
¹ Excluding marketing activities. ² Includes R&D, sales expenses and pre-operating & stoppage. ³ Considering only the cash effect of streaming transactions, nickel operations EBITDA break-even would increase to US$ 15,297/t in 4Q23. | |||||
Unit COGS, excluding 3rd-party feed purchases, have increased by US$ 669 y/y mainly due to costs associated with the Onça Puma furnace rebuild and lower own source volumes in Voisey’s Bay.
All-in costs have increased by US$ 567 y/y, primarily due to: (i) higher unit COGS, as mentioned above, and (ii) lower by-products revenues especially resulting from lower copper volumes.
| 21 |
Copper operations – Salobo and Sossego
| Selected financial indicators - Copper operations, ex-marketing activities | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net Revenues | 855 | 498 | 660 | 2,577 | 1,779 |
| Costs¹ | (427) | (279) | (341) | (1,357) | (1,049) |
| SG&A and other expenses¹ | (9) | (16) | (3) | 31 | (21) |
| Pre-operating and stoppage expenses¹ | (1) | (5) | - | (5) | (13) |
| R&D expenses | (43) | (33) | (47) | (146) | (127) |
| Adjusted EBITDA | 375 | 165 | 269 | 1,100 | 569 |
| Depreciation and amortization | (56) | (34) | (49) | (176) | (132) |
| Adjusted EBIT | 319 | 131 | 220 | 924 | 437 |
| Adjusted EBIT margin (%) | 37.3 | 26.3 | 33.3 | 35.9 | 24.6 |
| ¹ Net of depreciation and amortization | |||||
| EBITDA variation - US$ million (4Q23 vs. 4Q22) | |||||||
| Drivers | |||||||
| US$ million | 4Q22 | Volume | Prices | By-products | Others | Total variation | 4Q23 |
| Copper | 165 | 55 | (43) | 143 | 55 | 210 | 375 |
| EBITDA by operation | ||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 4Q23 vs. 4Q22 Comments |
| Salobo | 326 | 142 | 251 | Higher copper sales volumes and by-products revenues as Salobo III ramps up. |
| Sossego | 79 | 51 | 59 | Higher copper sales volumes and by-products revenues. |
| Others copper¹ | (30) | (28) | (41) | |
| Total | 375 | 165 | 269 | |
| ¹ Includes R&D expenses of US$ 30 million related to the Hu’u project in 4Q23. | ||||
Revenues & price realization
| Revenues & price realization | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Volume sold (‘000 metric tons) | |||||
| Copper | 76 | 45 | 62 | 234 | 166 |
| Gold as by-product (‘000 oz) | 114 | 62 | 95 | 346 | 237 |
| Silver as by-product (‘000 oz) | 286 | 178 | 242 | 939 | 692 |
| Average prices (US$/t) | |||||
| Average LME copper price | 8,159 | 8,001 | 8,356 | 8,478 | 8,797 |
| Average copper realized price | 7,941 | 8,774 | 7,731 | 7,960 | 8,052 |
| Gold (US$/oz)¹ | 2,131 | 1,663 | 1,874 | 2,002 | 1,797 |
| Silver (US$/oz) | 24 | 18 | 23 | 24 | 21 |
| Revenue (US$ million) | |||||
| Copper | 605 | 392 | 478 | 1,862 | 1,339 |
| Gold as by-product¹ | 243 | 103 | 177 | 693 | 426 |
| Silver as by-product | 7 | 3 | 5 | 22 | 14 |
| Total | 855 | 498 | 660 | 2,577 | 1,779 |
| ¹ Revenues presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions. | |||||
| 22 |
Price realization – copper operations
| US$/t | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Average LME copper price | 8,159 | 8,001 | 8,356 | 8,478 | 8,797 |
| Current period price adjustments¹ | 546 | 514 | (189) | 56 | (259) |
| Copper gross realized price | 8,705 | 8,514 | 8,167 | 8,533 | 8,538 |
| Prior period price adjustments² | (201) | 736 | 125 | (24) | (25) |
| Copper realized price before discounts | 8,504 | 9,250 | 8,292 | 8,510 | 8,513 |
| TC/RCs, penalties, premiums and discounts³ | (563) | (476) | (560) | (550) | (461) |
| Average copper realized price | 7,941 | 8,774 | 7,731 | 7,960 | 8,052 |
|
Note: Vale's copper products are sold on a provisional pricing basis during the quarter, with final prices determined in a future period. ¹ Current-period price adjustments: at the end of the quarter, mark-to-market of open invoices based on the copper price forward curve. Includes a small number of final invoices that were provisionally priced and settled within the quarter. ² Prior-period price adjustment: based on the difference between the price used in final invoices (and in the mark-to-market of invoices from previous quarters still open at the end of the quarter) and the provisional prices used for sales in prior quarters ³ TC/RCs, penalties, premiums, and discounts for intermediate products.
| |||||
Average copper realized price was down 10% y/y in 2023, mainly due to the increase in TC/RCs and decrease in Purchase Price Adjustments (PPA). The negative effect of the PPA was the result of the lower forward curve[5].
In the quarter, average copper realized price was US$ 7,941/t, 2.7% higher q/q, mainly resulting from positive provisional price adjustments, as the average LME reference price was lower than the average forward curve at the end of the quarter.
Costs
| COGS - 4Q23 vs. 4Q22 | ||||||||||
| Drivers | ||||||||||
| US$ million | 4Q22 | Volume | Exchange rate | Others | Total variation | 4Q23 | ||||
| Copper operations | 279 | 202 | 11 | (65) | 148 | 427 | ||||
| Depreciation | 34 | 26 | 1 | (6) | 21 | 55 | ||||
| Total | 313 | 228 | 12 | (71) | 169 | 482 | ||||
|
Copper operations – unit cash cost of sales, net of by-product credits | ||||||||||
| US$/t | 4Q23 | 4Q22 | 3Q23 | 4Q23 vs. 4Q22 Comments | ||||||
| Salobo | 1,783 | 3,644 | 2,130 | Higher fixed costs dilution and higher by-products credits as Salobo III plant ramps up. | ||||||
| Sossego | 3,822 | 4,409 | 3,751 | Higher fixed costs dilution and higher by-products credits. | ||||||
EBITDA break-even – copper operations
| US$/t | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| COGS | 5,613 | 6,264 | 5,512 | 5,803 | 6,304 |
| By-product revenues | (3,269) | (2,372) | (2,960) | (3,055) | (2,644) |
| COGS after by-product revenues | 2,344 | 3,892 | 2,552 | 2,747 | 3,660 |
| Other expenses¹ | 693 | 1,201 | 812 | 514 | 970 |
| Total costs | 3,037 | 5,093 | 3,364 | 3,261 | 4,630 |
| TC/RCs penalties, premiums and discounts | 563 | 476 | 560 | 550 | 461 |
| EBITDA breakeven² | 3,600 | 5,569 | 3,924 | 3,811 | 5,091 |
| EBITDA breakeven ex-Hu'u | 3,212 | 4,938 | 3,264 | 3,437 | 4,502 |
|
¹ Includes sales expenses, R&D, 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$ 5,162/t. | |||||
[5] On December 31st, 2023, Vale had provisionally priced copper sales from Sossego and Salobo totaling 68,476 tons valued at weighted average LME forward price of US$ 8,597/t, subject to final pricing over the following months.
| 23 |
The realized price to be compared to the EBITDA break-even should be the copper realized price before discounts (US$ 8,504/t), given that TC/RCs, penalties, and other discounts are already part of the EBITDA break-even build-up.
Webcast Information
Vale will host a webcast on Friday, February 23rd, 2024, at 11:00 a.m. Brasilia time (09:00 a.m. New York time; 2:00 p.m. London time). Internet access to the webcast and presentation materials will be available on Vale website at www.vale.com/investors. A webcast replay will be accessible at www.vale.com beginning shortly after the completion of the call.
Further information on Vale can be found at: vale.com
Investor Relations
Vale.RI@vale.com
Thiago Lofiego: thiago.lofiego@vale.com
Luciana Oliveti: luciana.oliveti@vale.com
Mariana Rocha: mariana.rocha@vale.com
Pedro Terra: pedro.terra@vale.com
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., Salobo Metais S.A, Tecnored Desenvolvimento Tecnológico S.A., PT Vale Indonesia Tbk, Vale Holdings B.V, Vale Canada Limited, Vale International S.A., Vale Malaysia Minerals Sdn. Bhd., Vale Oman Pelletizing Company LLC e Vale Oman Distribution Center 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.
| 24 |
Annexes
Simplified financial statements
|
Income Statement |
|||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Net operating revenue | 13,054 | 11,941 | 10,623 | 41,784 | 43,839 |
| Cost of goods sold and services rendered | (6,891) | (7,155) | (6,309) | (24,089) | (24,028) |
| Gross profit | 6,163 | 4,786 | 4,314 | 17,695 | 19,811 |
| Gross margin (%) | 47.2 | 40.1 | 40.6 | 42.3 | 45.2 |
| Selling and administrative expenses | (146) | (148) | (150) | (553) | (515) |
| Research and development expenses | (231) | (218) | (188) | (723) | (660) |
| Pre-operating and operational stoppage | (108) | (125) | (115) | (450) | (479) |
| Other operational expenses, net | (380) | (624) | (511) | (1,498) | (1,722) |
| Impairment reversal (impairment and disposals) of non-current assets, net | (121) | (177) | (75) | (266) | 773 |
| Operating income | 5,177 | 3,494 | 3,275 | 14,205 | 17,208 |
| Financial income | 105 | 92 | 100 | 432 | 520 |
| Financial expenses | (380) | (291) | (362) | (1,459) | (1,179) |
| Other financial items, net | (599) | (459) | (123) | (919) | 2,927 |
| Equity results and other results in associates and joint ventures | (1,152) | 72 | 94 | (1,108) | 305 |
| Income before income taxes | 3,151 | 2,908 | 2,984 | 11,151 | 19,781 |
| Current tax | (475) | (72) | (278) | (1,375) | (2,020) |
| Deferred tax | (234) | 907 | 151 | (1,671) | (951) |
| Net income from continuing operations | 2,442 | 3,743 | 2,857 | 8,105 | 16,810 |
| Net income (loss) attributable to noncontrolling interests | 24 | 19 | 21 | 122 | 82 |
| Net income from continuing operations attributable to Vale's shareholders | 2,418 | 3,724 | 2,836 | 7,983 | 16,728 |
| Discontinued operations | |||||
| Net income (Loss) from discontinued operations | - | - | - | - | 2,060 |
| Net income from discontinued operations attributable to noncontrolling interests | - | - | - | - | - |
| Net income (Loss) from discontinued operations attributable to Vale's shareholders | - | - | - | - | 2,060 |
| Net income | 2,442 | 3,743 | 2,857 | 8,105 | 18,870 |
| Net income (Loss) attributable to Vale's to noncontrolling interests | 24 | 19 | 21 | 122 | 82 |
| Net income attributable to Vale's shareholders | 2,418 | 3,724 | 2,836 | 7,983 | 18,788 |
| 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 | 0.82 | 0.66 | 1.83 | 4.05 |
| Equity income (loss) by business segment | ||||||||||
| US$ million | 4Q23 | % | 4Q22 | % | 3Q23 | % | 2023 | % | 2022 | % |
| Iron Ore Solutions | 21 | 53 | 65 | 90 | 87 | 93 | 101 | 70 | 213 | 87 |
| Energy Transition Metals | - | - | - | - | - | - | - | - | 3 | 1 |
| Others | 19 | 47 | 7 | 10 | 7 | 7 | 43 | 30 | 30 | 12 |
| Total | 40 | 100 | 72 | 100 | 94 | 100 | 144 | 100 | 246 | 100 |
| 25 |
| Balance sheet | |||
| US$ million | 12/31/2023 | 9/30/2023 | 12/31/2022 |
| Assets | |||
| Current assets | 18,700 | 14,673 | 15,526 |
| Cash and cash equivalents | 3,609 | 3,967 | 4,736 |
| Short term investments | 51 | 60 | 61 |
| Accounts receivable | 4,197 | 3,348 | 4,319 |
| Other financial assets | 271 | 426 | 342 |
| Inventories | 4,684 | 5,114 | 4,482 |
| Recoverable taxes | 900 | 1,355 | 1,272 |
| Judicial deposits | 611 | - | - |
| Other | 444 | 403 | 314 |
| Non-current assets held for sale | 3,933 | - | - |
| Non-current assets | 13,587 | 14,060 | 14,394 |
| Judicial deposits | 798 | 1,296 | 1,215 |
| Other financial assets | 593 | 586 | 280 |
| Recoverable taxes | 1,374 | 1,264 | 1,110 |
| Deferred income taxes | 9,565 | 9,682 | 10,770 |
| Other | 1,257 | 1,232 | 1,019 |
| Fixed assets | 61,899 | 60,256 | 56,974 |
| Total assets | 94,186 | 88,989 | 86,894 |
| Liabilities | |||
| Current liabilities | 14,655 | 13,644 | 13,891 |
| Suppliers and contractors | 5,272 | 5,582 | 4,461 |
| Loans and borrowings | 824 | 779 | 307 |
| Leases | 197 | 197 | 182 |
| Other financial liabilities | 1,676 | 1,538 | 1,672 |
| Taxes payable | 1,314 | 630 | 470 |
| Settlement program ("REFIS") | 428 | 407 | 371 |
| Provisions for litigation | 114 | 119 | 106 |
| Employee benefits | 964 | 824 | 930 |
| Liabilities related to associates and joint ventures | 837 | 899 | 1,911 |
| Liabilities related to Brumadinho | 1,057 | 1,324 | 944 |
| De-characterization of dams and asset retirement obligations | 1,035 | 845 | 661 |
| Dividends payable | - | - | 1,383 |
| Other | 376 | 500 | 493 |
| Liabilities associated with non-current assets held for sale | 561 | - | - |
| Non-current liabilities | 38,550 | 35,858 | 35,645 |
| Loans and borrowings | 11,647 | 11,777 | 10,874 |
| Leases | 1,255 | 1,283 | 1,349 |
| Participative shareholders' debentures | 2,874 | 2,405 | 2,725 |
| Other financial liabilities | 3,373 | 2,583 | 2,843 |
| Settlement program (REFIS) | 1,723 | 1,744 | 1,869 |
| Deferred income taxes | 870 | 1,343 | 1,413 |
| Provisions for litigation | 885 | 1,341 | 1,186 |
| Employee benefits | 1,381 | 1,231 | 1,260 |
| Liabilities related to associates and joint ventures | 3,590 | 2,320 | 1,410 |
| Liabilities related to Brumadinho | 2,003 | 1,873 | 2,368 |
| De-characterization of dams and asset retirement obligations | 6,694 | 6,111 | 6,520 |
| Streaming transactions | 1,962 | 1,621 | 1,612 |
| Others | 293 | 226 | 216 |
| Total liabilities | 53,205 | 49,502 | 49,536 |
| Shareholders' equity | 40,981 | 39,487 | 37,358 |
| Total liabilities and shareholders' equity | 94,186 | 88,989 | 86,894 |
| 26 |
| Cash flow | |||||
| US$ million | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Cash flow from operations | 5,591 | 2,902 | 4,128 | 17,252 | 18,762 |
| Interest on loans and borrowings paid | (200) | (135) | (174) | (743) | (785) |
| Cash received (paid) on settlement of Derivatives, net | 325 | (65) | 70 | 567 | (83) |
| Payments related to Brumadinho event | (417) | (287) | (292) | (1,330) | (1,093) |
| Payments related to de-characterization of dams | (145) | (102) | (146) | (458) | (349) |
| Interest on participative shareholders debentures paid | (106) | (136) | - | (233) | (371) |
| Income taxes (including settlement program) paid | (259) | (265) | (720) | (1,890) | (4,637) |
| Net cash generated by operating activities from continuing operations | 4,789 | 1,912 | 2,866 | 13,165 | 11,444 |
| Net cash generated by operating activities from discontinued operations | - | - | - | - | 41 |
| Net cash generated by operating activities | 4,789 | 1,912 | 2,866 | 13,165 | 11,485 |
| Cash flow from investing activities | |||||
| Capital expenditures | (2,118) | (1,787) | (1,464) | (5,920) | (5,446) |
| Additions to investment | (11) | - | - | (19) | |
| Dividends received from joint ventures and associates | 99 | 55 | - | 204 | 219 |
| Short-term investment | 47 | 39 | 68 | 127 | 260 |
| Payments related to Samarco dam failure | (128) | (224) | (317) | (553) | (338) |
| Proceeds (payments) from disposal of investments, net | (72) | - | - | (139) | 577 |
| Other investment activities, net | (44) | 53 | 14 | (19) | 145 |
| Net cash used in investing activities from continuing operations | (2,227) | (1,864) | (1,699) | (6,319) | (4,583) |
| Net cash used in investing activities from discontinued operations | - | - | - | - | (103) |
| Net cash used in investing activities | (2,227) | (1,864) | (1,699) | (6,319) | (4,686) |
| Cash flow from financing activities | |||||
| Loans and financing: | |||||
| Loans and borrowings from third parties | - | 500 | 150 | 1,950 | 1,275 |
| Payments of loans and borrowings from third parties | (25) | (24) | (13) | (658) | (2,300) |
| Payments of leasing | (94) | (78) | (47) | (233) | (224) |
| Payments to shareholders: | |||||
| Dividends and interest on capital paid to Vale's shareholders | (2,040) | - | (1,678) | (5,513) | (6,603) |
| Dividends and interest on capital paid to noncontrolling interest | (33) | (2) | - | (41) | (12) |
| Share buyback program | (44) | (966) | (546) | (2,714) | (6,036) |
| Acquisition of stake in VOPC | - | - | - | (130) | - |
| Net cash used in financing activities from continuing operations | (2,236) | (570) | (2,134) | (7,339) | (13,900) |
| Net cash used in financing activities from discontinued operations | - | - | - | - | (11) |
| Net cash used in financing activities | (2,236) | (570) | (2,134) | (7,339) | (13,911) |
| Net increase (decrease) in cash and cash equivalents | 326 | (522) | (967) | (493) | (7,112) |
| Cash and cash equivalents in the beginning of the period | 3,967 | 5,182 | 4,983 | 4,736 | 11,721 |
| Effect of exchange rate changes on cash and cash equivalents | 19 | 76 | (49) | 69 | 138 |
| Effect of transfer PTVI to non-current assets held for sale | (703) | - | - | (703) | - |
| Cash and cash equivalents from subsidiaries sold, net | - | - | - | - | (11) |
| Cash and cash equivalents at the end of period | 3,609 | 4,736 | 3,967 | 3,609 | 4,736 |
| Non-cash transactions: | |||||
| Additions to property, plant and equipment - capitalized loans and borrowing costs | 4 | 7 | 5 | 19 | 47 |
| Cash flow from operating activities | |||||
| Income before income taxes | 3,151 | 2,908 | 2,984 | 11,151 | 19,781 |
| Adjusted for: | |||||
| Provisions related to Brumadinho event | 137 | 133 | 184 | 461 | 400 |
| Provision for de-characterization of dams | 153 | - | - | 153 | 72 |
| Equity results and other results in associates and joint ventures | 1,152 | (72) | (94) | 1,108 | (305) |
| Impairment (impairment reversal) and results on disposal of non-current assets, net | 121 | 177 | 75 | 266 | (773) |
| Depreciation, depletion and amortization | 855 | 900 | 780 | 3,070 | 3,171 |
| Financial results, net | 874 | 658 | 385 | 1,946 | (2,268) |
| Change in assets and liabilities | |||||
| Accounts receivable | (832) | (2,107) | (410) | 197 | (325) |
| Inventories | 403 | 940 | (97) | (214) | 45 |
| Suppliers and contractors | (308) | (435) | 480 | 637 | 495 |
| Other assets and liabilities, net | (115) | (200) | (159) | (1,523) | (1,531) |
| Cash flow from operations | 5,591 | 2,902 | 4,128 | 17,252 | 18,762 |
| 27 |
Reconciliation of IFRS and “non-GAAP” information
| (a) Adjusted EBIT | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Net operating revenues | 13,054 | 11,941 | 10,623 |
| COGS | (6,891) | (7,155) | (6,309) |
| Sales and administrative expenses | (146) | (148) | (150) |
| Research and development expenses | (231) | (218) | (188) |
| Pre-operating and stoppage expenses | (108) | (125) | (115) |
| Brumadinho event and dam de-characterization of dams | (396) | (375) | (305) |
| Other operational expenses, net1 | 98 | (249) | (159) |
| Dividends received and interests from associates and JVs | 99 | 55 | - |
| Adjusted EBIT from continuing operations | 5,479 | 3,726 | 3,397 |
| ¹ Includes adjustment of US$ 82 million in 4Q23 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 dividends received and interest from 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 | 4Q23 | 4Q22 | 3Q23 |
| Adjusted EBITDA from continuing operations | 6,334 | 4,626 | 4,177 |
| Working capital: | |||
| Accounts receivable | (832) | (2,107) | (410) |
| Inventories | 403 | 940 | (97) |
| Suppliers and contractors | (308) | (435) | 480 |
| Provisions related to Brumadinho event | 137 | 133 | 184 |
| Provisions related to de-characterization of dams | 153 | - | - |
| Others | (296) | (255) | (206) |
| Cash flow from continuing operations | 5,591 | 2,902 | 4,128 |
| Income taxes paid (including settlement program) | (259) | (265) | (720) |
| Interest on loans and borrowings paid | (200) | (135) | (174) |
| Payments related to Brumadinho event | (417) | (287) | (292) |
| Payments related to de-characterization of dams | (145) | (102) | (146) |
| Interest on participative shareholders' debentures paid | (106) | (136) | - |
| Cash received (paid) on settlement of Derivatives, net | 325 | (65) | 70 |
| Net cash generated by operating activities from continuing operations | 4,789 | 1,912 | 2,866 |
| Net cash generated by operating activities from discontinued operations | - | - | - |
| Net cash generated by operating activities | 4,789 | 1,912 | 2,866 |
| Reconciliation between adjusted EBITDA and net income (loss) | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Adjusted EBITDA from continuing operations | 6,334 | 4,626 | 4,177 |
| Depreciation, depletion and amortization | (855) | (900) | (780) |
| Dividends received and interest from associates and joint ventures | (99) | (55) | - |
| Impairment reversal (impairment) and results on disposals of non-current assets,net¹ | (203) | (177) | (122) |
| Operating income | 5,177 | 3,494 | 3,275 |
| Financial results | (874) | (658) | (385) |
| Equity results and other results in associates and joint ventures | (1,152) | 72 | 94 |
| Income taxes | (709) | 835 | (127) |
| Net income from continuing operations | 2,442 | 3,743 | 2,857 |
| Net income (loss) attributable to noncontrolling interests | 24 | 19 | 21 |
| Net income attributable to Vale's shareholders | 2,418 | 3,724 | 2,836 |
| ¹ Includes adjustment of US$ 82 million in 4Q23 and US$ 47 million in 3Q23 to reflect the performance of the streaming transactions at market price. | |||
|
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| 28 |
| (c) Net debt | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Gross debt | 12,471 | 11,181 | 12,556 |
| Leases | 1,452 | 1,531 | 1,480 |
| Cash and cash equivalents¹ | (4,363) | (4,797) | (4,027) |
| Net debt | 9,560 | 7,915 | 10,009 |
| ¹ Including financial investments and includes US$ 703 million related to non-current assets held for sale in 4Q23. | |||
| (d) Gross debt / LTM Adjusted EBITDA | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Gross debt and leases / LTM Adjusted EBITDA (x) | 0.8 | 0.6 | 0.9 |
| Gross debt and leases / LTM operational cash flow (x) | 0.8 | 0.7 | 0.8 |
| (e) LTM Adjusted EBITDA / LTM interest payments | |||
| US$ million | 4Q23 | 4Q22 | 3Q23 |
| Adjusted LTM EBITDA / LTM gross interest (x) | 24.1 | 32.3 | 23.0 |
| LTM adjusted EBITDA / LTM interest payments (x) | 24.2 | 25.2 | 21.2 |
| (f) US dollar exchange rates | |||
| R$/US$ | 4Q23 | 4Q22 | 3Q23 |
| Average | 4.9553 | 5.2554 | 4.8803 |
| End of period | 4.8413 | 5.2177 | 5.0076 |
| 29 |
Revenues and
volumes
| Net operating revenue by destination | ||||||||||
| US$ million | 4Q23 | % | 4Q22 | % | 3Q23 | % | 2023 | % | 2022 | % |
| North America | 473 | 3.6 | 613 | 5.1 | 398 | 3.7 | 2,078 | 5.0 | 2,239 | 5.1 |
| USA | 358 | 2.7 | 433 | 3.6 | 323 | 3.0 | 1,623 | 3.9 | 1,643 | 3.7 |
| Canada | 115 | 0.9 | 180 | 1.5 | 75 | 0.7 | 455 | 1.1 | 596 | 1.4 |
| South America | 1,014 | 7.8 | 913 | 7.6 | 1,018 | 9.6 | 4,197 | 10.0 | 4,740 | 10.8 |
| Brazil | 927 | 7.1 | 829 | 6.9 | 915 | 8.6 | 3,755 | 9.0 | 4,137 | 9.4 |
| Others | 87 | 0.7 | 84 | 0.7 | 103 | 1.0 | 442 | 1.1 | 603 | 1.4 |
| Asia | 9,497 | 72.8 | 8,484 | 71.0 | 7,603 | 71.6 | 28,104 | 67.3 | 28,857 | 65.8 |
| China | 7,672 | 58.8 | 7,072 | 59.2 | 5,860 | 55.2 | 21,577 | 51.6 | 22,203 | 50.6 |
| Japan | 863 | 6.6 | 803 | 6.7 | 843 | 7.9 | 3,219 | 7.7 | 3,535 | 8.1 |
| South Korea | 390 | 3.0 | 310 | 2.6 | 289 | 2.7 | 1,365 | 3.3 | 1,311 | 2.9 |
| Others | 572 | 4.4 | 299 | 2.5 | 611 | 5.8 | 1,943 | 4.7 | 1,808 | 4.2 |
| Europe | 1,282 | 9.8 | 1,109 | 9.3 | 956 | 9.0 | 5,028 | 12.0 | 5,357 | 12.2 |
| Germany | 368 | 2.8 | 321 | 2.7 | 261 | 2.5 | 1,351 | 3.2 | 1,521 | 3.5 |
| Italy | 96 | 0.7 | 153 | 1.3 | 48 | 0.5 | 509 | 1.2 | 708 | 1.6 |
| Others | 818 | 6.3 | 635 | 5.3 | 647 | 6.1 | 3,168 | 7.6 | 3,128 | 7.1 |
| Middle East | 343 | 2.6 | 317 | 2.7 | 271 | 2.6 | 1,014 | 2.4 | 1,241 | 2.8 |
| Rest of the World | 445 | 3.4 | 505 | 4.2 | 377 | 3.5 | 1,363 | 3.3 | 1,405 | 3.2 |
| Total | 13,054 | 100.0 | 11,941 | 100.0 | 10,623 | 100.0 | 41,784 | 100.0 | 43,839 | 100.0 |
| Volume sold by destination – Iron ore and pellets | |||||
| ‘000 metric tons | 4Q23 | 4Q22 | 3Q23 | 2023 | 2022 |
| Americas | 9,667 | 9,659 | 9,829 | 40,431 | 39,200 |
| Brazil | 8,912 | 8,904 | 9,339 | 36,512 | 35,550 |
| Others | 755 | 755 | 490 | 3,919 | 3,650 |
| Asia | 73,341 | 74,370 | 64,801 | 232,818 | 232,587 |
| China | 60,180 | 64,172 | 52,139 | 185,522 | 190,107 |
| Japan | 6,825 | 5,473 | 6,317 | 24,956 | 22,801 |
| Others | 6,336 | 4,725 | 6,345 | 22,340 | 19,679 |
| Europe | 2,941 | 3,403 | 2,299 | 14,429 | 17,363 |
| Germany | 654 | 698 | 494 | 2,538 | 3,220 |
| France | 685 | 587 | 189 | 2,696 | 3,313 |
| Others | 1,602 | 2,118 | 1,616 | 9,195 | 10,830 |
| Middle East | 1,815 | 1,654 | 1,475 | 5,483 | 5,797 |
| Rest of the World | 2,564 | 2,868 | 2,155 | 7,758 | 7,095 |
| Total | 90,328 | 91,954 | 80,559 | 300,919 | 302,042 |
| Net operating revenue by business area | ||||||||||
| US$ million | 4Q23 | % | 4Q22 | % | 3Q23 | % | 2023 | % | 2022 | % |
| Iron Ore Solutions | 11,030 | 84% | 9,330 | 78% | 8,862 | 83% | 34,079 | 82% | 34,916 | 80% |
| Iron ore fines | 9,212 | 71% | 7,767 | 65% | 7,331 | 69% | 27,760 | 66% | 28,188 | 64% |
| ROM | 29 | 0% | 22 | 0% | 33 | 0% | 122 | 0% | 103 | 0% |
| Pellets | 1,680 | 13% | 1,456 | 12% | 1,388 | 13% | 5,803 | 14% | 6,256 | 14% |
| Others | 109 | 1% | 85 | 1% | 110 | 1% | 394 | 1% | 369 | 1% |
| Energy Transition Metals | 1,982 | 15% | 2,549 | 21% | 1,718 | 16% | 7,569 | 18% | 8,398 | 19% |
| Nickel | 888 | 7% | 1,422 | 12% | 833 | 8% | 3,664 | 9% | 4,279 | 10% |
| Copper | 767 | 6% | 597 | 5% | 567 | 5% | 2,432 | 6% | 1,917 | 4% |
| PGMs | 71 | 1% | 87 | 1% | 54 | 1% | 285 | 1% | 390 | 1% |
| Gold as by-product¹ | 185 | 1% | 123 | 1% | 147 | 1% | 561 | 1% | 494 | 1% |
| Silver as by-product | 13 | 0% | 12 | 0% | 8 | 0% | 42 | 0% | 34 | 0% |
| Cobalt¹ | 16 | 0% | 42 | 0% | 14 | 0% | 73 | 0% | 139 | 0% |
| Others² | 42 | 0% | 266 | 2% | 95 | 1% | 512 | 1% | 1,145 | 3% |
| Others | 42 | 0% | 62 | 1% | 42 | 0% | 136 | 0% | 525 | 1% |
| Total of continuing operations | 13,054 | 100% | 11,941 | 100% | 10,623 | 100% | 41,784 | 100% | 43,839 | 100% |
|
¹ Exclude the adjustment of US$ 82 million in 4Q23 and US$ 47 million in 3Q23, related to the performance of streaming transactions at market price. ² Includes marketing activities. | ||||||||||
| 30 |
Projects under evaluation and growth options
| Copper | ||
| Alemão | Capacity: 60 ktpy | Stage: FEL3 |
| Carajás, Brazil | Growth project | Investment decision: 2025 |
| Vale’s ownership: 100% | Underground mine | 115 kozpy Au as byproduct |
| South Hub extension | Capacity: 60-80 ktpy | Stage: FEL3¹ |
| Carajás, Brazil | Replacement project | Investment decision: 2024 |
| 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 |
| 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 byproduct |
| 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 | ||
| Sorowako Limonite | Capacity: 60 ktpy | Stage: FEL3 |
| Sorowako, Indonesia | Growth project | Investment decision: 2024 |
| Vale’s ownership: N/A² | Mine + HPAL plant | 8 kpty Co as by-product |
| 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: 2024 |
| 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 | 7-13 ktpy Cu as by-product |
| Vale’s ownership: 100% | Underground mine | |
| 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 | ||
| Iron ore | ||
| Concentration Plant | Capacity: 12-15 Mtpy pellet feed | Stage: FEL3 |
| Sohar, Oman | Asset-light partnership | Investment decision: 2024 |
| Vale’s ownership: N/A | Located next to Oman’s pellet plant | |
| Green briquette plants | Capacity: Under evaluation | Stage: FEL3 (two plants) |
| Brazil and other regions | Growth project | Investment decision: 2024-2029 |
| Vale’s ownership: N/A | Cold agglomeration plant | 8 plants under engineering stage, including co-located plants in clients’ facilities |
| Serra Leste expansion | Capacity: +4 Mtpy (10 Mtpy total) | Stage: FEL2 |
| Northern System (Brazil) | Growth project | |
| Vale’s ownership: 100% | Open pit mine | |
| S11C | Capacity: Under evaluation | Stage: FEL2 |
| Northern System (Brazil) | Growth project | |
| Vale’s ownership: 100% | Open pit mine | |
| Serra Norte N1/N23 | Capacity: Under evaluation | Stage: FEL2 |
| Northern System (Brazil) | Replacement project | |
| Vale’s ownership: 100% | Open pit mine | |
| 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 signed three agreements with Middle East local authorities and clients to jointly study the development of Mega Hubs |
|
1 Refers to the most advanced projects (Bacaba and Cristalino). 2 Indirect ownership through Vale’s 44.34% equity in PTVI. PTVI will own 100% of the mine and has the option to acquire up to 30% of the plant as part of the JV agreement. 3 Project scope is under review given permitting constraints. | ||
| 31 |
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: February 22, 2024 | Director of Investor Relations | |