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.

   
 

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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.

   
 

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Financials

 

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Proforma Adjusted EBITDA                
  Net operating revenues 9,553 10,623 -10% 9,920 -4% 27,932 28,730 -3%
  COGS (6,281) (6,309) 0% (6,349) -1% (17,997) (17,198) 5%
  SG&A (139) (150) -7% (137) 1% (416) (407) 2%
  Research and development (192) (188) 2% (189) 2% (537) (492) 9%
  Pre-operating and stoppage expenses (89) (115) -23% (91) -2% (272) (342) -20%
  Brumadinho & decharacterization of dams¹ (126) (305) -59% 1 n.a. (166) (687) -76%
  Other operational expenses2 (101) (159) -36% (208) -51% (451) (297) 52%
  EBITDA from associates and JVs 242 254 -5% 253 -4% 698 621 12%
  Adjusted EBIT 2,867 3,651 -21% 3,200 -10% 8,791 9,928 -11%
  Depreciation, amortization & depletion 748 780 -4% 793 -6% 2,255 2,215 2%
  Adjusted EBITDA 3,615 4,431 -18% 3,993 -9% 11,046 12,143 -9%
  Proforma Adjusted EBITDA3,4 3,741 4,736 -21% 3,992 -6% 11,212 12,830 -13%
  Reconcilation of Proforma EBITDA to Net Income                
  Proforma Adjusted EBITDA3,4 3,741 4,736 -21% 3,992 -6% 11,212 12,830 -13%
  Brumadinho and decharacterization of dams¹ (126) (305) -59% 1 n.a. (166) (687) -76%
  Impairment and results on disposal of non-current assets2,5 1,050 (122) n.a. 928 13% 1,905 (279) n.a.
  EBITDA from associates and JVs (242) (254) -5% (253) -4% (698) (621) 12%
  Equity results on associates and JVs and other results (574) 94 n.a. 112 n.a. (338) 44 n.a.
  Financial results (374) (385) -3% (1,252) -70% (2,063) (1,072) 92%
  Income taxes (336) (127) 165% 34 n.a. (750) (2,337) -68%
  Depreciation, depletion & amortization (748) (780) -4% (793) -6% (2,255) (2,215) 2%
  Net income 2,391 2,857 -16% 2,769 -14% 6,847 5,663 21%
  (Net income)/loss attributable to non-controlling interests 21 (21) n.a. - n.a. 13 (98) n.a.
  Net income attributable to Vale's shareholders 2,412 2,836 -15% 2,769 -13% 6,860 5,565 23%
¹ Find more information on expenses in Annex 4: Brumadinho & Decharacterization. 2 Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23 to reflect the performance of the streaming transactions at market price. 3 Excluding expenses related to Brumadinho. 4 Starting from 1Q24 the EBITDA will be reported including the EBITDA proportionate from associates and JVs and the previous periods were restated. Previously, the EBITDA reflected solely the dividends received from associates and JVs. 5 Net.

 

 

 

EBITDA


Proforma Adjusted EBITDA of US$ 3.7 billion, 21% lower y/y and 6% lower q/q, mainly as a result of weaker realized iron ore fines prices and higher freight costs, partially offset by the positive effect of BRL depreciation, lower costs and expenses and higher sales volumes.

 

 

 

 

 

 

   
 

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Proforma Adjusted EBITDA 3Q24 vs. 3Q23 - US$ million

 

1 Excluding Brumadinho expenses. 3Q23 EBITDA was restated including associates and JV’s EBITDA (US$ 254 million). 2 Including by-products (US$ 66 million), EBITDA Energy (US$ 5 million) and Associates and JVs EBITDA (US$ -12 million).

 

Net Income


Net income attributable to Vale’s shareholders of US$ 2.4 billion, 15% lower y/y and 13% lower q/q, mainly due to lower Proforma EBITDA and the negative effect from Associates & JV's as a result of Samarco’s dam failure potential settlement agreement. This was partially offset by a positive effect from the disposal of non-current assets related to VODC's 50% stake sale.

Net income attributable to Vale’s shareholders 3Q24 vs. 3Q23 – US$ million

 

 

 

 



1 Considers equity results and EBITDA from associates and JVs. 2 Impairment and disposal of non-current assets, net. Includes the sale of 50% of VODC's share capital to Apollo of which: US$ 600 million in proceedings received from the sale, US$ 600 million related to the fair value of 50% interest retained and US$ 22 million in other effects related to the deconsolidation. Includes adjustment of US$ 94 million in 3Q24 and US$ 47 million in 3Q23 to reflect the performance of the streaming transactions at market price. 3 Includes (i) US$ 32 million in depreciation, depletion & amortization, (ii) US$ 11 million in financial results and (iii) US$ 42 million net income/loss attributable to non-controlling interests.

 

   
 

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Capital Expenditures

 

Total CAPEX

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Iron Ore Solutions 1,000 963 4% 906 10% 2,907 2,438 19%
  Energy Transition Metals 376 453 -17% 405 -7% 1,148 1,209 -5%
    Nickel 298 365 -18% 344 -13% 948 936 1%
    Copper 78 88 -11% 61 28% 200 273 -27%
  Energy and others 22 48 -54% 17 29% 66 155 -57%
  Total 1,398 1,464 -5% 1,328 5% 4121 3,802 8%

 

Growth Projects

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Iron Ore Solutions 323 354 -9% 293 10% 936 845 11%
  Energy Transition Metals 49 96 -49% 33 48% 121 263 -54%
    Nickel 46 67 -31% 29 59% 107 151 -29%
    Copper 3 29 -90% 4 -25% 14 112 -88%
  Energy and others 4 18 -78% 2 100% 14 62 -77%
  Total 376 468 -20% 328 15% 1,071 1,170 -8%

 


Investments in growth projects totaled US$ 376 million, US$ 92 million (-20%) lower y/y, mainly as a result of (i) lower expenditures with the Salobo 3 copper project; (ii) the deconsolidation of PTVI in our Energy Transition Metals business; and (iii) lower disbursements for the Tubarão Briquette project as the physical progress is at an advanced stage.

 

Sustaining Investments

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Iron Ore Solutions 677 609 11% 613 10% 1,971 1,593 24%
  Energy Transition Metals 327 357 -8% 372 -12% 1,027 946 9%
    Nickel 252 298 -15% 315 -20% 841 785 7%
    Copper 75 59 27% 57 32% 186 161 16%
  Energy and others 18 30 -40% 15 20% 52 93 -44%
  Total 1,022 996 3% 1,000 2% 3,050 2,632 16%


 

Sustaining investments totaled US$ 1.022 billion, US$ 26 million (+3%) higher y/y mainly as a result of higher investments in equipment and asset reliability improvements partially compensated by lower expenditures in the Voisey’s Bay Mine Expansion nickel project.

 

 

   
 

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Free cash flow

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Proforma Adjusted EBITDA 3,741 4,736 -21% 3,992 -6% 11,212 12,830 -13%
  Working capital (570) (186) 206% (1,111) n.a. (213) (45) 373%
  Brumadinho and de-characterization expenses (420) (559) -25% (480) -13% (1,262) (1,595) -21%
  Income taxes and REFIS (471) (720) -35% (466) 1% (1,443) (1,631) -12%
  Capex (1,398) (1,464) -5% (1,328) 5% (4,121) (3,802) 8%
  Associates & JVs (242) (254) -5% (253) -4% (698) (621) 12%
  Others (461) (427) 8% (532) -13% (1,474) (950) 55%
  Free Cash Flow 179 1,126 -84% (178) n.a. 2,001 4,186 -52%
  Cash management and others (2,121) (2,087) 2% 3,056 n.a. (860) (5,023) -83%
  Increase/Decrease in cash & equivalents (1,942) (961) 102% 2,878 n.a. 1,141 (837) n.a.

 

Free Cash Flow generation reached US$ 179 million in 3Q24, US$ 947 million lower y/y, mainly explained by lower Proforma EBITDA (US$ 995 million lower y/y).

In the quarter, EBITDA-to-cash conversion was impacted by a negative working capital of US$ 570 million, largely explained by an increase in accounts receivables, given higher provisional prices and accrued iron ore sales at the end of the quarter.

Vale’s cash position was impacted by: (i) the distribution of US$ 1.6 billion to shareholders in interest on capital, (ii) the continuation of debt liability management, with a negative US$ 632 million net effect, (iii) the acquisition of the 45%-stake of Aliança Energia for US$ 493 million, all partly offset by the proceeds from the sale of a 50%-stake at VODC for US$ 600 million.


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.

 

 

   
 

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Debt

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q
  Gross debt¹ 13,420 12,556 7% 13,770 -3%
  Lease (IFRS 16) 765 1,480 -48% 1,360 -44%
  Gross debt and leases 14,185 14,036 1% 15,130 -6%
  Cash, cash equivalents and short-term investments (4,649) (4,027) 15% (6,540) -29%
  Net debt 9,536 10,009 -5% 8,590 11%
  Currency swaps2 (128) (722) -82% (26) 392%
  Brumadinho provisions 2,390 3,197 -25% 2,412 -1%
  Samarco & Renova Foundation provisions3 4,674 3,010 55% 3,707 26%
  Expanded net debt 16,472 15,494 6% 14,683 12%
  Average debt maturity (years) 8.9 8.2 9% 9.2 -3%
  Cost of debt after hedge (% pa) 5.6 5.6 1% 5.8 -3%
  Total debt and leases / adjusted LTM EBITDA (x) 0.8 0.9 -11% 0.8 0%
  Net debt / adjusted LTM EBITDA (x) 0.5 0.6 -17% 0.5 0%
  Adjusted LTM EBITDA / LTM gross interest (x) 22.4 23.0 -3% 23.6 -5%
¹ Does not include leases (IFRS 16). ² Includes interest rate swaps. ³ Provisions in 3Q23 do not include Germano which was reported separately at the time. With Germano, the provisions in 3Q23 would have been US$ 3,219.

 

Gross debt and leases reached US$ 14.2 billion as of September 30th, 2024, US$ 0.9 billion lower q/q, mainly as a result of the net effect of liability management in the quarter (~US$ 0.6 billion) and the deconsolidation of Vale Oman Distribution Center’s liabilities (US$ 0.6 billion) after the sale of the 50% stake.

Samarco & Renova Foundation provisions: This quarter, Vale recognized an additional provision of US$ 956 million for Samarco/Renova based on advanced negotiations with Brazilian authorities for an agreement which defines the measures for the reparation and compensation related to the collapse of the Samarco dam. The amount of the additional provisions considers the extent to which Samarco may be able to fund future outflows. Total provisions for Samarco & Renova Foundation now stand at US$ 4.7 billion.

Expanded net debt increased by US$ 1.8 billion q/q, totaling almost US$ 16.5 billion, mainly as a result of a reduction in cash and cash equivalents to US$ 4.7 billion (US$ 1.9 billion lower q/q) and the increase in provisions related to Samarco and the Renova Foundation (~ US$ 1 billion). Vale’s expanded net debt target remains at US$ 10-20 billion.

Average debt maturity declined to 8.9 years at the end of 3Q24 from 9.2 years at the end of 2Q24. The average annual cost of debt after currency and interest rate swaps was 5.6%, falling from 2Q24’s 5.8%.

In October, Moody’s upgraded Vale S.A and Vale Overseas Limited’s issuer rating and senior unsecured notes rating to “Baa2” from “Baa3” and reaffirmed the positive outlook on the ratings. The rating agency also upgraded the senior unsecured notes issued by Vale Canada Ltd. to “Baa3” from “Ba1” and changed the ratings outlook from stable to positive.

 

   
 

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Segments’ Performance

 

Proforma Adjusted EBITDA from continuing operations, by business area:

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Iron Ore Solutions 3,731 4,696 -21% 3,887 -4% 11,077 12,236 -9%
    Fines 2,844 3,799 -25% 3,071 -7% 8,422 9,670 -13%
    Pellets 790 751 5% 724 9% 2,396 2,200 9%
    Other 97 146 -34% 92 5% 259 366 -29%
  Energy Transition Metals¹ 248 385 -36% 407 -39% 912 1,434 -36%
    Nickel (66) 100 n.a. 108 n.a. 59 663 -91%
    Copper 360 269 34% 351 3% 995 725 37%
    Other (46) 16 n.a. (52) -12% (142) 46 n.a.
  Others2 3 (238) (345) -31% (302) -21% (777) (840) -8%
  Total 3,741 4,736 -21% 3,992 -6% 11,212 12,830 -13%
¹ Includes adjustment of US$ 94 million in 3Q24, US$ 83 million in 2Q24, US$ 243 million in 9M24, US$ 47 million in 3Q23 and US$ 134 million in 9M23, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. ² Including a negative y/y effect of provisions related to communities’ programs, reversal of tax credit provisions, and contingency loss. 3 Includes US$ 20 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 3Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 228 million in 3Q24.

 

Segment information 3Q24

  US$ million Net operating revenues Cost¹ SG&A and others¹ R&D¹ Pre operating & stoppage¹ Associates and JVs EBITDA Adjusted EBITDA
  Iron Ore Solutions  7,970  (4,255)  (45)  (87)  (63)  211  3,731
     Fines  6,281  (3,371)  (15)  (76)  (58)  83  2,844
     Pellets  1,502  (747)  (2)  (3)  (3)  43  790
     Other  187  (137)  (28)  (8)  (2)  85  97
  Energy Transition Metals  1,583  (1,313)  30  (74)  (1)  23  248
     Nickel²  904  (936)  (17)  (34)  (1)  18  (66)
     Copper3  759  (366)  (3)  (30)  -  -  360
     Others4  (80)  (11)  50  (10)  -  5  (46)
  Brumadinho and decharacterization of dams  -  -  (126)  -  -  -  (126)
  Others5  -  -  (211)  (32)  (3)  8  (238)
  Total  9,553  (5,568)  (352)  (193)  (67)  242  3,615
¹ Excluding depreciation, depletion and amortization. ² Including copper and by-products from our nickel operations. ³ Including by-products from our copper operations. Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. 5 Includes US$ 20 million in unallocated expenses from Vale Base Metals Ltd ("VBM") in 3Q24. Considering the unallocated expenses, VBM’s EBITDA was US$ 228 million in 3Q24.
                 
                             

 

 

 

 

 

 

 

   
 

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Highlights

    3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Average Prices (US$/t)                
  Iron ore - 62% Fe price 99.7 114.0 -13% 111.8 -11% 111.5 116.9 -5%
  Iron ore fines realized price, CFR/FOB 90.6 105.1 -14% 98.2 -8% 96.1 103.7 -7%
  Iron ore pellets realized price, CFR/FOB 148.2 161.2 -8% 157.2 -6% 158.7 161.3 -2%
  Volume sold (‘000 metric tons)                
  Fines 69,344 69,714 -1% 68,512 1% 190,402 178,904 6%
  Pellets 10,143 8,613 18% 8,864 14% 28,232 25,556 10%
  ROM 2,351 2,232 5% 2,416 -3% 6,822 6,132 11%
  Total - Iron ore 81,838 80,559 2% 79,792 3% 225,456 210,591 7%
  Financials indicators  (US$ million)                
  Net Revenues 7,970 8,862 -10% 8,298 -4% 23,293 23,049 1%
  Costs¹ (4,255) (4,164) 2% (4,415) -4% (12,222) (10,883) 12%
  SG&A and Other expenses¹ (45) (79) -43% (81) -44% (190) (101) 88%
  Pre-operating and stoppage expenses¹ (63) (89) -29% (67) -6% (194) (258) -25%
  R&D expenses (87) (75) 16% (94) -7% (264) (179) 47%
  EBITDA Associates & JVs 211 241 -12% 246 -14% 654 608 8%
  Adjusted EBITDA 3,731 4,696 -21% 3,887 -4% 11,077 12,236 -9%
  Depreciation and amortization (515) (508) 1% (574) -10% (1,570) (1,413) 11%
  Adjusted EBIT 3,216 4,188 -23% 3,313 -3% 9,507 10,823 -12%
¹ Net of depreciation and amortization.

Adjusted EBITDA per segment

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Fines 2,844 3,799 -25% 3,071 -7% 8,422 9,670 -13%
  Pellets 790 751 5% 724 9% 2,396 2,200 9%
  Other 97 146 -34% 92 5% 259 366 -29%
  Adjusted EBITDA 3,731 4,696 -21% 3,887 -4% 11,077 12,236 -9%

 


Iron Ore Solutions EBITDA was US$ 3.7 billion
, 21% lower y/y, driven by lower prices. Cost and expenses were flat y/y.

In Iron Ore Fines, EBITDA decreased by 25% y/y, totaling US$ 2.8 billion, mostly explained by lower realized prices (US$ 1.016 billion) and higher freight costs (US$ 104 million). These effects were partially offset by the positive effect of the BRL depreciation (US$ 144 million) and slightly lower cost and expenses (US$ 63 million).

In Iron Ore Pellets, EBITDA increased by 5% y/y, totaling US$ 790 million, mostly explained by 18% higher sales volumes (US$ 139 million) and the positive effect of the BRL depreciation (US$ 57 million), partially offset by lower average realized prices (US$ 137 million).

   
 

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EBITDA variation – US$ million (3Q24 vs. 3Q23)

 

1 Includes associates and JV’s EBITDA and others.

Iron Ore Fines

Product mix

  '000 metric tons 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Volume sold                
  Fines¹ 69,344 69,714 -1% 68,512 1% 190,402 178,904 6%
  IOCJ 11,709 14,758 -21% 13,180 -11% 34,290 39,599 -13%
  BRBF 34,797 36,454 -5% 30,528 14% 91,018 89,134 2%
  Pellet feed - China (PFC1)² 3,328 4,234 -21% 3,337 0% 9,201 10,056 -9%
  Lump 1,971 2,367 -17% 1,782 11% 5,562 5,626 -1%
  High-silica products 8,050 6,131 31% 11,372³ -29% 26,584³ 18,090 47%
  Other fines (60-62% Fe) 9,489 5,770 64% 8,313³ 14% 8,256³ 16,399 -50%
1 Including third-party purchases. 2 Products concentrated in Chinese facilities. 3 Restated from historical figures.


 

Revenues

The average realized iron ore fines price was US$ 90.6/t, US$ 7.6/t lower q/q, despite iron ore reference prices decreasing by US$ 12/t in the period. The lower decline vs. the reference price is attributed to the positive effect of provisional pricing adjustments, given higher-than-average forward prices in the last day of the quarter (US$ 4.7/t higher q/q) and an enhanced product portfolio (US$ 1.4/t higher q/q).

The iron ore fines premium totaled US$ -1.9/t, improving US$ 1.4/t q/q, driven by enhanced average quality of the product portfolio. This is a result of increased availability of high-quality products, mainly from the Northern System, allowing for higher BRBF sales and the proactive decision to reduce direct sales of high-silica products due to market conditions. The all-in premium improved by US$ 1.8/t, totaling US$ 1.7/t, driven by a higher share of pellet sales.

Price realization iron ore fines – US$/t 3Q24

 

1 Includes quality (US$ 0.4/t) and premiums/discounts and commercial conditions (US$ -2.3/t). 2 Adjustment as a result of provisional prices booked in 2Q24 at US$ 106.5/t. 3 Difference between the weighted average of the prices provisionally set at the end of 3Q24 at US$ 108.8/t based on forward curves and US$ 99.7/t from the 3Q24 average reference price. 4 Includes freight pricing mechanisms of CFR sales freight recognition. 5 Vale’s price is net of taxes.

 

   
 

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Costs and expenses


Iron ore fines and pellets all-in costs (cash cost break-even landed in China)

  US$/t 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  C1 cash cost, incl. 3rd-party purchases1 24.0 25.6 -6% 28.2 -15% 26.5 26.2 1%
  C1 cash cost, ex-3rd-party purchases 20.6 21.9 -6% 24.9 -17% 22.9 22.9 0%
  3rd-party purchases cost adjustments 3.3 3.7 -10% 3.4 -2% 3.6 3.3 9%
  Freight cost2 20.6 18.9 9% 19.0 8% 19.7 18.2 9%
  Distribution cost 2.5 2.6 -3% 2.6 -6% 2.5 2.7 -6%
  Expenses3 & royalties 5.4 6.2 -12% 6.3 -14% 6.0 5.8 4%
  Moisture adjustment 4.3 4.6 -5% 4.9 -12% 4.7 4.6 1%
  Iron ore fines quality adjustment 1.9 (0.8) n.a. 3.3 -41% 2.3 (0.2) n.a.
  Iron ore fines all-in costs 58.7 57.1 3% 64.3 -9% 61.7 57.3 8%
  Pellet business contribution (3.6) (3.4) 7% (3.1) 15% (3.6) (3.2) 11%
  Iron ore fines and pellets all-in costs 55.1 53.7 2% 61.2 -10% 58.1 54.1 8%
  Sustaining investments (fines and pellets) 8.2 7.8 5% 7.9 4% 8.9 7.9 12%
  Iron ore fines and pellets all-in costs⁴ 63.3 61.5 3% 69.1 -8% 67.0 62.0 8%
¹ Ex-ROM, ex-royalties and FOB (US$/t).  2 Ex-bunker oil hedge. 3 Net of depreciation and associates and JV’s EBITDA . Including stoppage expenses. Includes sustaining.

 

Iron ore fines C1 production costs

  US$/t 3Q24 3Q23 ∆ y/y 2Q24 ∆ t/t 9M24 9M23 ∆ y/y
  C1 production costs, ex-3rd-party purchases 18.5 21.3 -13% 24.4 -24% 24.6 24.5 0%
  C1 cash cost, ex-3rd-party purchases 20.6 21.9 -6% 24.9 -17% 25.2 23.5 7%

 

The C1 cash cost, ex-third-party purchases, reached US$ 20.6/t in Q3, US$ 4.3/t lower q/q.

This significant C1 reduction was driven by: (i) increased production and the resulting fixed cost dilution, particularly in the Northern System; (ii) lower maintenance costs, following the strategy to concentrate activities in the 1H24; (iii) the positive impact of the BRL depreciation; and (iv) continued progress of the efficiency program. These gains were partially offset by the impact of the inventory turnover effect. The C1 production cost reached US$ 18.2/t in September, indicating a solid performance for the upcoming quarter.

C1 cash cost, ex-third-party purchase costs - US$/t, 3Q24 vs. 2Q24

 

1 Including demurrage (US$ -0.4/t) and others (US$ -0.2/t).

Vale's maritime freight cost averaged US$ 20.6/t, US$ 6.1/t lower than the Brazil-China C3 route average in Q3. The US$ 1.6/t sequential increase in freight cost is largely explained by a larger exposure to spot freight rates (US$ 1.1/t higher q/q), driven by Vale’s usual shipping seasonality and higher bunker fuel costs (US$ 0.4/t higher q/q). CFR sales totaled 59.8 Mt in Q3, representing 86% of total iron ore fines sales.

   
 

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Pellets

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Net revenues 1,502 1,388 8% 1,394 8% 4,481 4,123 9%
  Cash costs1 (747) (669) 12% (705) 6% (2,191) (1,991) 10%
  Pre-operational & stoppage expenses (3) (6) -50% (2) 50% (10) (15) -33%
  Expenses2 (5) (1) 400% (1) 400% (1) (8) -88%
  Leased pelletizing plants EBITDA 43 39 10% 38 13% 117 91 29%
  EBITDA 790 751 5% 724 9% 2,396 2,200 9%
  Iron ore pellets realized price (CFR/FOB, US$/t) 148.2 161.2 -8% 157.2 -6% 158.7 161.3 -2%
  Cash costs1 per ton (US$/t) 73.6 77.7 -5% 79.5 -7% 77.6 77.9 0%
  EBITDA per ton (US$/t) 77.9 87.2 -11% 81.7 -5% 84.9 86.1 -1%
1 Including iron ore, leasing, freight, overhead, energy and others.  2 Including selling, R&D and others.

 

Pellets sales reached 10.1 Mt, 14% higher q/q and 18% higher y/y, driven by higher pellet production and healthy demand.

The average realized iron ore pellets price was US$ 148.2/t, US$ 9.0/t lower q/q, due to lower 65%Fe index iron ore prices (US$ 12.0/t lower q/q), which were partially offset by the positive effect of pricing mechanisms (US$ 2.9/t).

Pellets’ cash costs per ton was 5% lower q/q, totaling US$ 73.6/t, mainly as a result of increased production and the resulting fixed cost dilution. FOB sales represented 61% of total sales.

   
 

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Highlights

  US$ million (unless otherwise stated) 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Net Revenues 1,583 1,718 -8% 1,622 -2% 4,639 5,622 -17%
  Costs¹ (1,313) (1,338) -2% (1,171) 12% (3,621) (4,083) -11%
  SG&A and Other expenses¹ 30 75 -60% 22 36% 58 81 -28%.
  Pre-operating and stoppage expenses¹ (1) (1) 0% (3) -67% (5) (5) 0%
  R&D expenses (74) (75) -1% (70) 6% (195) (187) 4%
  EBITDA from associates and JVs² 23 6 283% 7 229% 36 6 500%
  Adjusted EBITDA 248 385 -36% 407 -39% 912 1,434 -36%
  Depreciation and amortization (212) (257) -18% (229) -7% (664) (760) -13%
  Adjusted EBIT 36 128 -72% 178 -80% 248 674 -63%
¹ Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027. ² Starting in 3Q24, PTVI EBITDA is included in EBITDA from associates and JVs, reflecting VBM's ownership of 33.9% in PTVI.

Adjusted EBITDA

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Nickel (66) 100 n.a. 108 n.a. 59 663 -91%
  Copper 360 269 34% 351 3% 995 725 37%
  Others (46) 16 n.a. (52) -12% (142) 46 n.a.
  Total 248 385 -36% 407 -39% 912 1,434 -36%

 

EBITDA decreased by 36% y/y, largely impacted by the nickel segment.

In Copper, EBITDA increased by 34% y/y, positively impacted by higher realized copper prices (US$ 79 million) and stronger by-product revenues (US$ 45 million), partially offset by the impact of the conveyor belt occurred at Salobo 3 (US$ -21 million) and other effects (US$ -13 million), included in Others.

In Nickel, EBITDA decreased to US$ -66 million in Q3, mainly explained by lower realized nickel prices (US$ -192 million), the PTVI deconsolidation (US$ -167 million) and higher volumes (US$ -30 million). These were partially offset by stronger by-products revenues (US$ 21 million) and Others (US$ 192 million), largely explained by a decrease in external feed costs.

EBITDA variation – US$ million (3Q24 vs. 3Q23)

1 Includes variations of (i) negative US$ 21 million in PPA, (ii) positive US$ 46 million in currency variation, (iii) positive US$ 61 million in costs and expenses and (iv) EBITDA from associates and JVs of US$20 million in others. 2 Includes an adjustment of US$ 94 million increasing the adjusted EBITDA in 3Q24, to reflect the performance of the streaming transactions at market prices, which will be made until the proceeds received on the streaming transactions are fully recognized in the adjusted EBITDA of the business. Based on the current projections for volumes and commodities prices, it will be fully realized by 2027.

 

 

   
 

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Copper

  US$ million (unless otherwise stated) 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  LME copper price (US$/t) 9,210 8,356 10% 9,753 -6% 9,131 8,585 6%
  Average realized copper price (US$/t) 9,016 7,731 17% 9,202 -2% 8,651 7,969 9%
  Volume sold – copper (kt) 61 62 -2% 58 5% 176 158 12%
  Net Revenues 759 660 15% 779 -3% 2,177 1,722 26%
  Costs¹ (366) (341) 7% (391) -6% (1,086) (930) 17%
  Selling and other expenses¹ (3) (3) 0% (8) -63% (14) 40 n.a.
  Pre-operating and stoppage expenses¹ - - - - - - (4) -100%
  R&D expenses (30) (47) -36% (29) 3% (82) (103) -20%
  Adjusted EBITDA 360 269 34% 351 3% 995 725 37%
  Depreciation and amortization (39) (49) -20% (41) -5% (120) (120) 0%
  Adjusted EBIT 321 220 46% 310 4% 875 605 45%
¹ Net of depreciation and amortization

 

Adjusted EBITDA

 

  US$ million 3Q24 3Q23 ∆ y/y 2Q24 ∆ q/q 9M24 9M23 ∆ y/y
  Salobo 311 251 24% 306 2% 878 655 34%
  Sossego 98 59 66% 44 123% 159 128 24%
  Other¹ (49) (41) 20% 1 n.a. (42) (58) -28%
  Total 360 269 34% 351 3% 995 725 37%
¹ Includes US$ 25 million in R&D expenses related to the Hu’u project in 3Q24 and the unrealized provisional price adjustments.

 

Revenues

Net revenues increased by 17% y/y mainly because of the increase in realized copper prices, as well as higher by-products revenues. The higher by-product revenue resulted from the increase in market prices for gold.

The average realized copper price was up 17% y/y mainly due to higher average LME price. Sequentially, the average realized copper price was down 2%, on the back of lower LME prices.


Average realized copper price 3Q24 – US$/t

Note: Vale’s copper products are sold on a provisional pricing basis, with final prices determined in a future period. The average copper realized price excludes the mark-to-market of open invoices based on the copper price forward curve (unrealized provisional price adjustments) and includes the prior and current period price adjustments (realized provisional price adjustments).
1 Current-period price adjustments: Final invoices that were provisionally priced and settled within the quarter. 2 Prior-period price adjustment: Final invoices of sales provisionally priced in prior quarters. 3 TC/RCs, penalties, premiums, and discounts for intermediate products

 

 

   
 

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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.



   
 

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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

   
 

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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.

   
 

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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.

 

 

 

   
 

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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%