Morning, ladies and gentlemen. At this time, we would like to welcome you to CSN Mineração's conference call to present results for the second quarter 2022. Today, we have with us the company executive officers. This event is being recorded, and all participants will be in listen-only mode during the company presentation. Ensuing this, there will be a question and answer section when further instructions will be provided. Should any participant need assistance during this call, please press star zero to reach the operator. We have simultaneous webcasts that can be accessed through CSN Mineração's investor relation website, ri.csnmineracao.com.br/english, where the presentation is also available. There will be a replay service for this call on the website. Please bear in mind that some of the forward-looking statements herein are mere expectations or trends and are based on the current assumptions and opinions of the company management. They may differ materially from those expressed herein as they are future results and do not constitute projections. In fact, actual results, performance, or events may differ materially from those expressed or implied by the forward-looking statements as a result of several factors, overall general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, future rescheduling or prepayment of debt denominated in foreign currencies, protectionist measures in the U.S., Brazil, and other countries, changes in laws and regulations, and general competitive factors at a global, regional, or national basis. We will now turn the conference over to Mr. Pedro Oliva, the CFO and IRO, who will begin the presentation. Mr. Oliva, you may proceed. Good morning, and I would like to begin by thanking all of you for your presence at our call. We're going to begin with the highlights. Despite a 9.3% increase in sales, the retraction of flat prices and the increase in freight costs and the negative impact of provisional price adjustments, these were the main drivers of the results. Our adjusted EBITDA reached BRL 907 million, with a 35.1% margin. Positive free cash flow was positive in BRL 1.2 billion, reversing the negative result of the previous quarter. This points to CMIN's resiliency in delivering solid cash generation despite the pressures. We issued the second debentures amounting to BRL 1.4 billion to finance the expansion project of Tecar Port Terminal. In the ESG front, we would like to highlight the publication of the 2021 integrated report, highlighting the company's sustainability and governance initiatives. Additionally, the auxiliary Vigia Dam was unregistered from the SIGBM registry, one dam less. In the next slide, we show you the growth of 28% in total production. These are the past period. Below, of course, the first quarter of 2022 due to the impact of rainfall and because the priority was quality in this case. Regarding the iron ore inventory, we had a growth of 11%, reaching 4,551 tons, a greater production than the shipments. These shipments were impacted by the strong rainfall in the coast of Rio de Janeiro in April of this year. In the next slide, the growth of 9% sales to 7,574 tons and the FOB net revenue chart, which ended at $71 in the second quarter 2022, lower than the first quarter 2022 due to the Platts prices and the negative impact of the provisional pricing. In the next slide, you'll see our price realization. We had a drop of $35.28 in the unit price, basically due to three factors that explain more than 90% of this variation. In former periods where it was positive in $17.7. It was negative in $6.7. This is a variation of $24 in the net unit revenue. The drop in Platts for the quarter of $3.7 and an increase in the freight price of $5.5 quarter-over-quarter. In the next slide, we share with you our COGS and EBITDA information. We had a growth of 13.4% due to a greater sales volume in iron ore and because of movements in the mine and an increase in the cost of diesel and other inputs in this very inflationary period in which we live. The EBITDA stood at BRL 907 million with a margin of 35.1%. The reduction of the prices realized, costs and a greater volume of purchases from third parties. The adjusted EBITDA in the next slide is compared with the first quarter, and the great highlight is the difference in terms of the provision of prices vis-à-vis the present day situation. We also had the impact of freight, an increase in cost, a drop in Platts, and a change in mix where we favored more products and opportunities, and this allowed us some better margins as we had anticipated in the results call in the first quarter. In the next slide, we see our investments going to BRL 404 million in the second quarter. A highlight in operational continuity, spare parts, and the expenses with the P15 project and expansion of the Tecar port during the period. In terms of net working capital, there was a reduction in accounts receivable, once again due to the drop in the iron ore prices in the second quarter. In the next slide, the company continues with a very strong balance, BRL 7.6 billion, and net cash also very good within amortization schedule that is quite lengthened and comfortable for our balance. In the next slide, we show you our free cash flow standing at BRL 1.2 billion vis-a-vis the adjusted EBITDA. We observe a normalization vis-a-vis the previous quarter, reverting the negative result of the first quarter, where we had the payment of taxes and extraordinary disbursements. In the next slide, a bit more color on the second debentures issuance. We're working with two series amounting to BRL 1.4 billion. The first with 10 years with an interest rate of IPCA plus 5.95%. The second, 15 years with IPCA plus 6.15%. This is a very competitive period that will enable us to work with our expansion plan. Now, this specific event is associated to the expansion of our Tecar port terminal. In the next slide, we would like to refer to the acquisition of the Quebra-Queixo hydroelectric plant, a very important plant with 120 MW. With this asset, the company will be 100% self-sufficient beginning in 2023, enabling us to capture the benefits of self-production in energy, which in Brazil are relevant and savings of more than 75% in energy costs. This concession is valid until 2040. Our disbursement was BRL 427 million, and we have already announced this through a material fact. In terms of our environmental and social management, some items do deserve to be underscored. The publication of 2021, the integrated report based on the TCFD reporting structure and the completion of the GHG inventory reporting to the public emissions registry in dams, as we mentioned. The deregistration of the auxiliary Vigia dam that has been removed from the SIGBM registry, which means that CSN Mining has one dam less. We were at the level of stability and maximum level. In terms of diversity, we continue to increase the participation of women. We have a program devoted to that. Training labor, we went from 18% in the second quarter 2021 to 20.5% in the second quarter 2022. With that, I would like to end the presentation, and we can now go on to Q&A. With me, I have Mr. Helena Guerra, our Director of Sustainability. Well, thank you. We're now going to go on to the question and answer session for investors and analysts. Should you have a question, please press star one. If at any point your question is answered, you may withdraw yourself from the queue by pressing star two. Please pick up your phone when posing the question, enabling us to have optimum sound quality. Please hold while we pull our questions. Our first question comes from Thiago Lofiego from Bradesco BBI. Good morning to all of you, and we have two questions at our end. First, in terms of the product and quality, if you could remark on your expectations on the evolution of these two factors in the coming quarter so that we can work with modeling? The second question refers to recurrent funding. Your competitors are speaking about difficulties. How do you look upon this? If this could truly bring about difficulties for your production, and if you could speak about your realization guidance for production, if this is also a factor underlying all of this? Well, thank you very much for the question regarding our product mix. This quarter, we had sales with average quality with 60% iron content. As we had mentioned the previous quarter, we were going to work with opportunities. This is also due to the ramp up of CSMC3, and we will have a quality improvement going forward. In the third quarter, we will have fulfilled a quality improvement, and the next year this will be more stable. We still have several windows of opportunity to access the market with our products, but the structural trend is to have a quality improvement in the company. Regarding the licensing, we have obtained the licenses that we need for our mining plan. During the second quarter, we obtained the license for Corpo Norte e Mascate. This is a license that is renewed year after year. This has not represented a bottleneck for CSN Mineração. Now, when we speak about the update of our guidance, we did have very heavy rainfalls at the beginning of the year, compromising the results of the first quarter. During the second quarter, unexpectedly, there was rainfall in April, and there is a negative impact of rains. Of course, we had places where we were capturing water. We had to work with dredging. There was that rainfall impact that we had not expected. Along with this, the impact of the integration of CMIN3 plants connected to our central plant, and this represents two-thirds of our installed capacity. The plant shutdowns to carry out the integration did have an impact on volume. Throughout the third quarter, this will be fully surpassed, and we're quite confident about the improvement in our volumes for the third and fourth quarters, along with an improvement of quality at our central plant, an increase of volume. Beginning in 2023, because of the synergy, we will reach a very sustainable level at the company. We're already witnessing a drop in the freight prices, $27.7 in the first quarter. In the spot market, this has dropped to $20, a relevant drop that will also work in favor of the cost reduction in the company. Well, thank you. If you allow me to return to the first question. In broad figures, could you explain to us the type of products that you have sold in bulk and what you expect in terms of percentages for the second half of the year? Very well. Well, the bulk of our sales are sinter feed. In the second quarter, we had an increase in the opportunity sales, representing approximately 20%. In terms of volume, the forecast, what we will add to our production and during the period should be close to 5%. It's not highly relevant, but we will take this to the market or not, depending on the opportunity windows that open up. If the margins are not interesting, we will leave this aside, which is what happened in the second quarter. Thank you. Simply to complete this, the characteristics of this opportunity product, the purity. If you could also share with us broad figures. Well, once again, we don't tend to share this information. It is within that average of quality of 60% iron content. I don't know if the commercial team will be at ease in disclosing these figures. It seems not. Thank you very much. Thank you. Our next question comes from Carlos de Alba from Morgan Stanley. You may proceed, sir. Yeah, thank you. Good morning, everyone. I would like to touch base on a little bit of, you know, the further outlook, whatever you can comment on how you see production ramping up in the coming years? I mean, clearly the story of the company has always been an expansion of high quality iron ore. And yet, the market doesn't seem to recognize that. Could you remind us how you- It seems that they cannot hear you. Can you hear me? Proceed with your question. All right. Thank you. Yeah. My question has to do with the outlook for the coming years in terms of volume growth. If you could maybe tell us not only the total expected volume, but also what projects will be driving that growth as well as the impact that that volume growth and the particularities of the projects will do to your cash cost in those years, particularly now that you're gonna be self-sufficient in energy with a significant reduction in energy costs going forward? Thank you. Carlos, thank you for your question. We are planning an update in the project schedule during the CMIN day. That should happen in the fourth quarter. What I can already advance is that we will prioritize P15, which is the main company project at this point. The present day schedule for P15, it will be coming into operation in 2024, where we will have the beginning of phase one with a considerable impact on quality. The comment you made about energy is very relevant. That change in the mix of production for Itabirito, or beginning with Itabirito, is more energy intensive. Therefore, the strategy of the company is to verticalize energy, and this will lead to a reduction of social charges, which will be relevant. This will happen at the end of the year. All of this will make our C1 cost ever more competitive vis-à-vis the positions we had. Now, this was pointing to a flat cost with an increase in the cost of processing, especially in the more intensive industrial process. Although we had a reduction in the cost of the mine or the port, which tend to be fixed cost. At the mine, a better ratio for iron ore cost. We have hematite, which is a mineral rich in iron ore coming to the mine now, and we're putting it into piles without adding it to our production volume. Once we process this hematite, it will represent greater efficiency at our mine. The cost components, of course, will vary. Some will increase, others will have a drop. We're comparing this with our normalized cost that we will only have in the third or fourth quarter, a better cost than we had in the first half of the year because of our internal production factors. All right. Thank you. Just then to clarify on the volume side. Given that P15 will come online on 2024, if I understood you correctly, should we consider relatively flattish volumes between now and 2024? How long or how do you see the ramp-up of P15? When do you expect to reach the 50 million ton production level? Carlos, our last forecast that we shared with the market points towards a marginal growth in the volume in 2023, something above 40 million tons, 42 million tons. In 2024, with the beginning of production of P15, we would get to 48 million tons. Of course, this impact will take some months. It's only beginning in 2025 that we would go beyond the 60 million tons. Now, the materialization of P15 will take some months. With this, we will be operating at full steam beginning in 2025. All right. Thank you very much. Well, thank you for the question, Carlos. Thank you. We would like to remind you that should you wish to pose a question, please press star one. Please hold while we poll for questions. Our next question comes from Marcio Farid from Goldman Sachs. Good day to all of you. Thank you for taking my question. My question is regarding the market. What do you think will be the evolution of production and demand? What will happen at the end of the year? Especially because there are discounts and quality premiums being given. What will happen in the second half of this year? Thank you. Well, thank you for the question, Farid. The latest data that we have from the industry is from civil construction, and there is an improvement now. We do have infrastructure with a relevant growth vis-a-vis former periods, this because it is a government effort. What we perhaps cannot expect is a drop in interest rate and more liquidity in the market. Now, there is a situation in China and our elections in the third quarter this year. All of this should sustain relevant incentives for the economy going forward. With this, we hope to have better indicators in the second half of the year vis-a-vis the present day ones. When it comes to the numbers for production, I think there's a general frustration in terms of the iron ore players in the first half of the year. We do expect a recovery in the second half of the year, and the inventories in the Chinese steel market are relatively low. I think capacity got to 74%, went to 90%, and presently is at 80%. We do expect an improvement in the use of the installed capacity with the entry of the effects of these initiatives that the government will be implementing in the second half of the year. There will be a scenario of instability, of volatility, high inflation globally, and of course, with this, an increase in the interest rates in some of the economies. All of this will have an impact on the steel production volume of these markets, and it should benefit Brazilian iron ore in detriment of others. Now, when it comes to merits and premiums, as you mentioned, what we have witnessed is a gradual drop. There was an increase in the last few weeks, but there has been, in the last few months, a gradual drop in premiums and merits in the sector for the six-five. The curves of six-five and five-eight have come ever closer. We're going to see how sustainable this coming together is, but it is happening at present. From the viewpoint of freight, we had an expressive drop vis-a-vis the previous quarter. We are at $20 or $22. There is a structural problem, which is the cost of fuel linked to the dynamic of the war between Russia and Ukraine and the behavior of the countries in Europe. The increase has been excessive in some countries of the world. We think that this price should eventually go down. Thank you. Thank you very much. Thank you for the question, Marcio Farid. Our next question comes from Guilherme Rossetto from Bank of America. Thank you for taking my question. A question in terms of capital allocation. Apparently, there has been a reduction since April, and you're paying dividends as well. Is there any other idea in terms of capital allocation? Is the trend to be more careful now that you have price changes? Thank you very much. Yes, we do have to be very cautious because of the present day scenario, but this does not compromise our policy for the payout of dividends that has been maintained at 75% of net profit. We're also maintaining our projects, of course, prioritizing them. The priority is P15 and the expansion of the Tecar port. This is a necessary expansion. Now, the buyback has been approved. It's a buyback of 106 million shares with maturity in May of 2023. Regarding the CMIN shares, we're trying to be very careful with the liquidity of these securities. The price of the share is unpegged from the fundamentals, and I think it's simply a matter of time until we are able to execute these shares properly again. Well, thank you very much, Pedro. Ladies and gentlemen, we would like to remind you that should you wish to pose a question, please press star one. Please hold while we poll for new questions. As we have no further questions, we will return the floor to Mr. Pedro Oliva, the CFO and IRO, for the closing remarks. Well, thank you once again for participating in the CSN Mineração results call. We do have a more challenging external macro scenario. However, the company is now entering the second half of the year with an expectation of an increase in volume, a drop in costs associated also to volumes, and, of course, because of the verticalization, we will be working with clean and renewable energy. The outlook of a drop in freight, $20 at present in the spot market compared to $27 in the second quarter, and a solid cash position enabling us to maintain our dividend position and the strategic projects for the company expansion. Thank you very much. Thank you. CSN Mineração's results conference call ends here. Thank you for participating, and have a good day.