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 ¨
| |
“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). |
| |
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
US$ 15,000-16,500/t is maintained and on track to be delivered.
·
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. |
| | | |
| | - 1 - |  |
Business Highlights
|
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. |
| |
| |
|
ESG
|
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. |
|
Reparation
|
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. |
| | | |
| | - 2 - | |
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.
| | | |
| | - 3 - | |
|
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.
| | | |
| | - 4 - | |
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.
| | | |
| | - 5 - | |
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.
|
Free Cash Flow 3Q24 - US$ million
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. |
| | | |
| | - 6 - | |
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.
| | | |
| | - 7 - | |
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. |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | |
| | - 8 - | |
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.
| | | |
| | - 10 - | |
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.
| | | |
| | - 11 - | |
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.
| | | |
| | - 12 - | |
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.
| | | |
| | - 13 - | |
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% |