Good morning, ladies and gentlemen. Welcome to Vale's conference call to discuss Q4 2020 results. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will be given at the time. If you should require assistance during the call, please press star followed by zero. As a reminder, this conference is being recorded and the recording will be available on the company's website at vale.com at the Investors link. This conference call is accompanied by a slide presentation, also available at the Investors link at the company's website, and is transmitted via internet as well. The broadcasting via internet, both the audio and the slide exchanges, has a few seconds delay in relation to the audio transmitted via phone. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual performance could differ materially from that anticipated in any forward-looking comment as a result of macroeconomic conditions, market risks, and other factors. With us today are Mr. Eduardo de Salles Bartolomeo, Chief Executive Officer, Mr. Luciano Siani Pires, CFO, Mr. Marcello Spinelli, Executive Officer for Ferrous Minerals, Mr. Mark Travers, Executive Officer for Base Metals, Mr. Carlos Medeiros, Executive Officer for Safety and Operational Excellence, Mr. Alexandre Pereira, Executive Officer for Global Business Support, Mr. Luiz Eduardo Osorio, Executive Officer for Institutional Relations and Communication, Mr. Paulo Couto, Director of Coal, Mr. Alexandre D'Ambrosio, General Counsel, and Mrs. Marina Quental, Director of People. First, Mr. Eduardo Bartolomeo will proceed to the presentation of Vale's 4Q20 performance, and after that, he will be available for questions and answers. It is now my pleasure to turn the call over to Mr. Eduardo Bartolomeo. Sir, you may now begin. Well, thank you. Good morning, everyone. First, I hope you are all well. 2020 will be remembered as one of the most challenging years in our history. As we were making progress with the reparation of Brumadinho and resuming our iron ore operations, we saw the COVID-19 pandemic changing our lives around the world. In early December, a few days after our meeting at Vale Day, we all got more hopeful with the start of vaccinations in several countries. However, our priorities remain intact, safety, people, and the reparation of Brumadinho. While the government's vaccination plans are advancing, Vale will keep its guard high. The safety of our people comes first, along with the reparation of Brumadinho. Next, please. As I have been saying at each of our meetings, Vale is determined to fully repair the damage caused by the Brumadinho tragedy. Besides contributing even more to the development of the communities where we operate. A major step towards this direction was the global agreement announced on February 4th, signed with the public authorities who are the legitimate representatives of the people of Minas Gerais. The economic value of the global settlement was BRL 37.7 billion, which includes obligations to pay and to do, in addition to expenses already incurred by Vale, such as the payment of the emergency aid and environmental recovery works. However, it's important to note that with this, we have a clear number on our balance sheet from the obligations to compensate and repair Brumadinho, eliminating a great uncertainty related to our provisions. The bottom line is that this governance allows for a speedy reparation and compensation, the legitimacy of these actions, and the legal certainty. Elements that we have always emphasized in our meetings as fundamental for the settlement. I invite now Alex D'Ambrosio to provide a little bit more details about it. Thanks, Eduardo. Well, as Eduardo was just mentioning, the agreement has two essential components from Vale's perspective. First, it brings finality to all class actions and to all collective lawsuits. Second, it has what we call legal certainty to the extent that it was signed by all the petitioners of those class actions. In fact, it was signed by the Attorney General himself, Brazil's Attorney General, and it was ratified by the Court of Justice of the State of Minas Gerais, which is the highest court in the state. The agreement resolves all claims relating to collective moral damages and to compensation to communities and to the state of Minas Gerais. The agreement was structured with both payment obligations and performance obligations. Vale's payment obligations are twofold. We established a fixed amount that will revert to the communities directly that were impacted by the disaster, and will be distributed and invested according to criteria yet to be established by the public defenders in consultation with the communities. Another fixed amount will be used by the state government for infrastructure and mobility projects in the regions that were most impacted by the disaster. These amounts represent approximately two-thirds of the value of the agreement. These are the fixed amounts, and Vale will deposit these amounts in a judicial account to be managed by the Court of Appeals. Vale is then released from payment obligations upon depositing these amounts in the court, and we will have no further influence in how these amounts will be employed or dispersed. All we do is deposit these amounts, and we are released from that part. The second part of the agreement relates to Vale's performance obligations, and these are essentially environmental recovery obligations, monitoring of water quality, and the continuity of certain health and safety programs. These obligations were constructed jointly with the petitioners and were based on independent technical studies, which became part of the agreement and were validated by all the parties involved. For that reason, we're confident that these measures, these obligations, are adequate and sufficient to address the reparations for the region. Vale will be released from these performance obligations once we show evidence of the completion step by step to the court. I think that explains the global agreement in a nutshell. Back to you, Eduardo. Thank you. Thanks, Alex. Finally, it's important to note that the reparation of individual damage will continue and is not part of the global settlement. Since 2019, almost 9,100 people have entered into civil or labor indemnification agreements with Vale, which total more than BRL 2.4 billion. This is evidence that we will spare no effort, nor resources, for a fair and quick reparation for Brumadinho and the region. Next. We are committed to transforming Vale's culture into a culture that puts people and safety at the center of every decision we make. We have our levers to accelerate this transformation, and I highlight the role of our management model, the VPS, in this process. At the end of 2020, we have completed the first global assessment of the VPS implementation, and now we'll design the plan to address the gaps identified. We also continue to accelerate the implementation of our new tailings and dam management model and other process safety tools such as HIRA, previously mentioned here. The message is clear: We do not tolerate deviations in conduct and procedures which expose people to safety risks. The culture transformation which is underway has the full commitment of the executive board and our board of directors. Next. As you know, we have a plan to address our ESG gaps, which was built based on what we heard from communities and society. This first plan firstly encompassed 52 gaps, which 37 already addressed, of which 11 were resolved in 2020. Continuing with our open dialogue and active listening, we identified 11 more opportunities for improvement. Some important gaps in governance have already been sent by the board of directors for shareholders' decision at the extraordinary general meeting called for March 12th. One of the gaps, for example, deals with expanding the number of independent members of the board, which currently has three members reportedly independent and, according to the proposed amendments of the bylaws, will reach at least seven. The proposed changes seek to align Vale with international governance practices and are the result of a process of listening to our investors. On another note, to support Vale in its bold commitments regarding the ESG theme, the board of directors approved the creation of an executive office dedicated to sustainability. Maria Luiza Paiva, who has extensive experience in making this happen, will lead this front and will report to me from March 15th. I take this opportunity to welcome Maria Luiza and to thank Luis Osorio for the important advances he has brought in the topic of sustainability. Osorio will continue with his functions as Executive Director of Institutional Relations and Communications. As it can be seen, our ambition is to transform Vale into a reference in ESG practice. With these actions, we will contribute to a more sustainable mining and will act in accordance with our new purpose society. Well, now talking about the operational performance of our business. We ended 2020 with the partial resumption of all iron ore operations that were halted in 2019. We are on track to reach the capacity of 400 million tons per year by the end of 2022. In December, we resumed Serra Leste and dry processing at Fábrica. In January, we resumed pellet production in Vargem Grande. We ended 2020 with a production in line with 2019, but stronger than we were when we started the year in a very complex condition, given the pandemic scenario. We managed to replenish our inventories, ensuring the maintenance of our product portfolio, and we expect more robust sales for 2021. A fact that you have already noticed in our Q4 result, which became our second best in the history of iron ore, which was obtained by strong sales and prices. In the long-term strategy, we were granted the necessary licenses to implement the Capanema project, which should start operations in 2023 and will bring 14 million tons of capacity to Vale in the first years. It's a project of almost half a billion dollars, an important step towards the creation of Vale's capacity buffers. In short, we are taking the necessary actions to ensure the stability we need to operate efficiently and the growth options required by the market. On these topics, Marcello Spinelli will present more information to you ahead. We also had an excellent quarter in base metals. I would like to highlight Onça Puma's record production and EBITDA. In copper, we also had a record EBITDA. In Salobo, we operated with cash cost at the lowest level in its history. Mark can give more details about it in the Q&A sessions. To conclude, we remain firm on de-risking Vale to build a better Vale. Summarizing for you the most important recent advances I would like highlight would be, first, the global settlement for the integral reparation of Brumadinho. Second, the progress of Vale's cultural transformation into a safer company. Third, the continuous and consistent resumption of our production under safe conditions. Finally, keeping the focus on capital discipline, addressing our cash drains, prioritizing organic projects in ferrous and base metals where we are competitive, and allocating an important portion of our cash generation to the payment of dividends for our shareholders. About this last topic, we resumed our shareholder compensation policy last year. We announced, together with our results, the approval of dividends in the amount of R$4.26 per share, referring to the H2 of 2020. This decision reflects our confidence in Vale's cash generation capacity, our healthy balance sheet, and above all, our commitment to return value to Vale's shareholders. Finally, we intend to continue creating and sharing value with all stakeholders. Most importantly, I assure you that we are doing and will continue to do everything we can to ensure the safety of the people in our operations in our communities. Also, I would like to thank our 123,000 employees and contractors, our suppliers and customers who made it possible for Vale to overcome 2020 with all the challenges brought by the pandemic. Thank you. Now I give the floor to Spinelli, who will provide more details on the iron ore production resumption. Thank you. Thank you, Eduardo. Good afternoon to all. Well, we've been talking about the reception plan to raise the 400 million tons. It's always a good time to reinforce our commitment to reach this goal next year. I want to emphasize, Eduardo also said that we have an addition of 50 million tons. That's our buffer capacity, Capanema pro is a good example of an action in this direction. Well, our production guidance for 2021 is a range between 315 million tons and 335 million tons. We are really confident to deliver this goal this year. You had a chance to see the production report. I don't need to go in real details here, you saw that we have a checklist, we can follow up all the achievements one by one in the checkbox in the production report. I want to drag your attention for five points here. The first one, as Eduardo said, we brought back all of our operational sites. That's a good sign that we're ready to grow now. Second, we've been progressing, bringing the authorizations and permits to test the operations in the southeastern system. Now Fábrica is already operating in dry process, now we already have the license to test the wet processes. It's a very important information because we can increase volumes and quality in this site. The third information you saw this week, we just announced that we brought back the Itabiruçu dam. That's Itabira complex. Itabiruçu will be really important. We have a remaining capacity, we have to breach this operation today to the filtration process that will be in place in early 2021. We also need to finalize the raising works that we have in Itabiruçu dam. We are not in a rush. It's important to emphasize that this capacity in the future in Itabiruçu dam is not in the critical path for the full operation in Itabira. The way to do this in a safe mode, we need to go in details and check the mode we are doing this operation. We are not in a rush to do that. The fourth information is about the north. In the north range, we've been talking about that we need always to bring new pits online. This is a new information here. We just approved in our board of the directors, the N3 mine, it's N3 pit. It's like Urucum. We are now with all the contractors, and moving forward the actions, activities, and we are waiting for the final license in the H1. To finalize this section, I'm going to talk about Timbopeba. Timbopeba, last year we brought back three lines in six. Now operating in wet processing. We have a milestone to the end of March to bring back the remaining three lines. We are already testing those lines. We expect to bring earlier than we have in our plan. We will let you know as soon as we have the full operation there. In the next slide, we have the roadmap for this year. I'm not going to talk in details about this, but if you have any question, please let me know in the Q&A. I want to give you two more information. In last year, we mentioned the La Niña effect. We were worried about this, the effect and the consequence in our operation. We had in the end of the year, last year, an impact in our operations, with the rainy season we call the winter in the north. We start the heavy rainy season. Suddenly in January, we had a great opportunity in the north with the dry month. We could take advantage and increase our production in this month. Just to conclude with all of this, new assets, resumption in many operations and also this possibility to increase in the north in the dry month. Now we already have the winter in place, since the H2 of February. Combining all of these, we are really confident that we can deliver higher volume in Q1 this year compared to Q1 last year. I'll pass to Luciano. Good morning and good afternoon, everyone. Great results. Second-largest EBITDA ever. Interestingly, once we saw the reports of the other mining companies of their H2 results, Vale's EBITDA was actually the largest in the industry. Obviously, there are circumstances to that because of the relative prices of iron ore to the other commodities, but it shows the potential of our business because we are also operating under a lot of impairments in our operations and still we posted the highest EBITDA in the industry for the H2 of 2020. We've got a lot of momentum. Cashflow wise, for example, we increased our accounts receivable by BRL 1.3 billion in the Q4. We already collected all those proceeds in this quarter together with the sales of the quarter. The volumes are better than they were last year, there's a lot of momentum. Carajás premiums are very good right now. They ended the Q4 at BRL 12, BRL 13 per ton. They now stand at BRL 25 per ton. Pellet premiums are on the rise. For the Q2, they will be above $40 per ton, and they were very compressed in the Q4. There's a lot of positive momentum for the business in the first and Q2 of this year. Talking a little bit about costs, just to highlight, although you saw costs increase in the quarter from 14.9- 15.3, the relevant measure for costs is costs without the purchase of third party ore. Because of the increase in iron ore prices, now we're paying over $60 per ton in our opportunistic purchases of iron ore from third parties. When you average all of this, costs have increased. If you strip out this effect, we have costs stable at below $13 per ton. It's a better measure of our productivity. We can discuss further the trends of cost in iron ore. In base metals, as Eduardo said, Onça Puma first full quarter without any problems on the operation, be it injunctions or problems of maintenance in furnaces or whatever, $50 million in EBITDA. At today's prices, it could be generating as much as $70 million in EBITDA per quarter. From zero in the past two years, so this is another contributor to EBITDA going forward. Negative cash costs in Salobo for the Q2 in a row. Pay attention to the prices of byproducts. Very good for copper, not only for that. In Canada, there's lots of byproducts that are selling at good prices. That's the reason why also the EBITDA for base metals was above $1.1 billion. Very good performance. We had a very interesting quarter in reshaping our business. A lot of movements in our portfolio. We collected more than $600 million in divestitures this quarter. For example, we sold a 25% stake in a coal mine in China, a stake in a pelletizing plant in China. We sold our palm oil company with over 3,000 employees. Yes, Vale had a palm oil company, not anymore. We finally left our Potasio Río Colorado project in Argentina. We collected the proceeds from the divestiture of PTVI. Looking forward, we also signed the binding put option agreement with a consortia, with the presence of Trafigura for the sale of VNC, which we shall discuss in the Q&A. We're hopeful that this may come to a good conclusion. We also signed the heads of agreement with Mitsui. We're working into definitive documents for the exit in Moatize. A lot happening in the portfolio. For those of you who also look at the portfolio and do sum of the parts, valuations of Vale, we have this company, this general cargo company called VLI, which we're studying the IPO of that company in Brazil. BNDES, the Brazilian Development Bank, exercised an old option, call option that they had against us. That option that they exercised values our stake in this general cargo company at around $1 billion, and probably more given that the Development Bank exercised because it sees prospects on this investment. Also our stake in Mosaic, with the very good performance of Mosaic, very good improvement in margins, costs coming down. They're doing their homework. It's now worth also more than $1 billion, so to speak. Finally, one last comment from a financial perspective on Brumadinho, the definitiveness of the provisions. You saw we added provisions on three different lines. First, de-characterization of dams, $617 million. They mostly relate to the end of the studies for de-characterization. We determined where we need new backup dams to be built. These were accounted for. Future changes in those numbers should be marginal. There are a few small dikes that need to be also assessed, the cost of de-c.haracterization. Minor engineering adjustments could be made. Pretty much in terms of big numbers, we are now very confident about the numbers for de-characterization. In terms of the global agreement, you saw $3.9 billion being added to our provisions. As Alex described, two-thirds of that amount to be spent is a fixed amount, so there's no uncertainty around those. The other remaining third relates to performance obligations. Obligations which by now have been widely studied. Technical studies were mentioned. If there are changes, if any, they are towards just a third of the amounts to be spent, not to the full amount. Finally, we added, there are additional provisions beyond the agreement, beyond de-characterization, which relate to individual indemnifications and which relates to ARO, asset retirement obligations on the old site of the dam that collapsed. Some geotechnical studies, we need to recover the area. We added another $237 million. Now we're also concluded those studies. Within those 237, there are also three months of extension of the emergency payments as a precedent condition for the agreement. Bottom line is, unless there are minor engineering adjustments on geotechnics or performance obligations, which are a smaller proportion of the whole, the provisions in the balance sheet now are pretty much done as regards to Brumadinho. Now let's move on to Q&A. Thank you. We will now begin the questions and answer session. If you have a question, please press star one. Please restrict your questions to two at a time. Our first question comes from Timna Tanners, Bank of America. Oh, hey there. Happy Friday. Thanks a lot. Wanted to ask two, if I could. One is, from the slide deck, it's clear that you're running at already within your range, even though the Q1 tends to be seasonally weak. I was just wondering if you continue to progress, if it's safe to say that we should assume you'd be closer to the high end of your guided production range? My second question is just, we got a lot of questions recently about potential government intervention and higher taxes. I think you know why. I'm wondering if you could comment on that. Thanks a lot. Okay, Timna. I'll let Spinelli bring your first question. Happy Friday, by the way. I'll get back to the government discussion. Hi, Timna. Thank you for your question. We are really happy about the progress of this quarter. We are much more prepared for the rainy season than ever. Every time we learn with this and we can bring other lessons from the past. Everything is in place, and we expect to deliver this, as I mentioned, this quarter, better shape than the quarter before and the Q1 last year. We are in the guidance. Yeah, we are confident to deliver the guidance. We're the beginning of the year, obviously, but we are really confident to deliver the guidance. Okay. Timna, by means of a government intervention, we have to understand the trajectory that Vale has been going since. We went to the Novo Mercado right four years ago. We started to establish several changes inside the company. As we speak, in November last year, the shareholders agreement has ended. We are under what we call a true corporation. Obviously, the new election of the board that is coming on April, will consolidate that movement. That movement has to be understood, as I mentioned before, historically. When we started the Novo Mercado, then when we brought two independents, then we had the third independent, we created the nomination committee just recently. The nomination committee, as I mentioned in my initial speech, was called in a general assembly, extraordinary general assembly, to improve the governance, to prepare ourselves and the company to this next step. We are going to have, as just an example, seven independents on the board. We don't see any kind of possibility of government intervention in Vale, because we are, as a diffuse control company, guided by our shareholders and by who has the interest in the company. I don't think that is any issue for Vale. The fact of tax increases, of course, sometimes there are some noises. I would like to ask Alex just to clarify one recent noise, because it's natural that there are some tax movements that we are talking about the tax reform. The tax reform that has been played by the government, the federal government, is always under the principle there's gonna be an equilibrium. Brazilian is already really burdened on tax, so taxing is not the best way to improve our economy. That, I think, if you're referring specifically to CSLL, I think Alex can give some more color on that. Yeah. Thanks, Eduardo. It's a very good question that Timna raised. In fact, as Eduardo said, every now and then we see initiatives for increasing taxes in the mining sector. Recently we saw a new tax bill proposing to increase this, what we call the social contribution tax, the CSLL, and that's been brought in the lower house of Congress. We're very confident that this bill will not succeed, because we view it essentially as unconstitutional. It violates a constitutional principle known as isonomy, to the extent that it adds another layer of taxation on a sector that's already very highly taxed, and effectively that it discriminates against this sector. Also, it's not clear in the proposal about which entities will be taxed and which will not. There's no justified reason, in our view, to increase taxes on the mining sector much higher than in any other sector. Also, the project fails to take into account global benchmarks for taxation in the mining sector, which that has always been a rule in defining the amount of taxes in Brazil. For these reasons, we're very confident that this new bill will not evolve. I'd like to take the opportunity to address a point that on the other part of Timna's question about government intervention, and to add, just to complement what Eduardo said. Everyone knows that there are some golden shares that are still, at Vale, they're held by the government. The opportunity to clarify that these golden shares have veto power on very limited amount of matters, and I will state which matters these are for clarification. First, the federal government with these golden shares can veto a change in Vale's name, a change in Vale's location of Vale's headquarters, a change in Vale's corporate purpose with regard to mining activities, meaning that we cannot cease to be a mining company. Disposal or winding down of activities in any part of Vale's iron ore, mining integrated systems, mineral deposits or deposits railways, ports, and maritime terminals. Also, Vale cannot change the bylaws with regard to these golden shares, which would otherwise defeat the purpose. These are the only matters which the golden shares have veto power, and that's the limit of government intervention in any of the voting processes. I hope we answered the question. Thank you. Back to you, Eduardo. Thanks, Alex. Our next question comes from Carlos de Alba, Morgan Stanley. Hello. Good afternoon. Good morning, everyone. Thank you very much. A couple of questions. One is the capital generation obviously was really strong in the Q1, and iron ore prices remained quite high. I wonder if you could elaborate as to how you see capital returns to shareholders in the coming months. Should we only expect another dividend in September as per the traditional policy? What about share buybacks? With some of your former controlling shareholders selling or potentially selling their stake, the stock may have been under pressure because of that. Any plans to maybe come into the market and do a buyback, given, again, the strong balance sheet and the solid cash flow generation? If I may ask a question on the Brumadinho process, obviously a very solid comprehensive agreement with the authorities. Just one question on something that it doesn't seem to have been included there, which is the lawsuit that the prosecutors have brought against Vale under the anti-corruption law. Any update there? How should we think about that particular process? What are the next steps? I guess what is the company's position towards that? Thank you very much. Okay. Thanks, Carlos. Good morning for you as well. It's true, the cash generation is really strong. We've been extremely conservative on how we view our balance sheet, you know that because of the commitments that we had, and we just assumed this commitment with Brumadinho, that didn't impede us to pay a solid dividend on this Q1. First semester, sorry. It's a matter of using up the proceeds against the cash generation. I don't think we would move from our policy of doing that on September. Obviously, if you look at the trajectory, even the expanded liabilities that we have, we are going to be under the $10 billion, and obviously any excess cash will be returned to the shareholders. We have a very well-behaved, if it's a word in English, CapEx. We have nothing in our horizon besides growing our platform to take profit of this cycle. We are very bullish on copper, so we're going to invest. We said that in Vale Day. We are going to expand our buffers in iron ore. Those are marginal CapEx. There's nothing very big. The liabilities are known, as Luciano mentioned. The natural way that the money to flow is to the shareholders, as I think this is the natural way, and as long as we can keep our business growing and safe, the excess cash goes to the shareholders. Specifically about buybacks, we're always talking about that. We're always thinking it's something in our agenda. We're talking to the shareholders and seeing what they see and what they want, and it's truly in our agenda. It's nothing that we have taken decision yet. I would ask Luciano to help me to elaborate on that, and then we get back to the Brumadinho lawsuit. Just to highlight, we are paying $4 billion in dividends in the same quarter that we're taking on our shoulders another $6 billion in liabilities, right? There's not only Brumadinho, there's VNC, for the divestiture of VNC and Renova. It's quite a sign of disposition to return money to shareholders. That's one thing. The second thing is on buybacks. We want to establish a track record of paying hefty dividends. That's a goal that we have. Buybacks are subordinated to that. The second thing is we don't want to be pro-cyclical, so we're gonna be very mindful of where we are in the cycle not to buy at a high. However, it bothers us a lot, the relative valuation, if you compare to other mining companies, and the gap has actually been increasing. These are all factors that will be taken into account when making a decision. Yeah. Together with the board, right, Luciano? Yes. Specifically about the law, the anti-corruption law, we think there is no merit on that, but I'm not the legal counsel, so I ask my legal counsel to just give some more details to you, okay, Carlos? Thanks, Eduardo, and thanks, Carlos. I was hoping you'd ask that question, so I have a chance to clarify it. Well, we purposefully did not include the corruption lawsuit in the settlement agreement because, as Eduardo said, we view it as having no merit whatsoever. Remember that the charges brought in this lawsuit, they are not supported by the facts, and in our view, they have no connection with Anti-Corruption Law. As you may recall by reading the allegations, the lawsuit contains no allegations that Vale corrupted a government official, and that is what defines corruption. In our understanding, that is the purpose of the Anti-Corruption Law. We also have legal opinions from the lawmakers who drafted the Anti-Corruption Law and who agree with that position. For these reasons, we believe that the charges or allegations will not prosper, and we saw no reason to include that in the settlement and give any sort of adherence to the charges. That's why we will fight this, and we will win this in court. Thanks. Back to you, Eduardo. Thank you. I hope we answered you, Carlos. Thank you. Our next question comes from Jonathan Brent, HSBC. Hi. Morning, good. My questions. Luciano, I first wanted to ask you, I guess it's sort of a capital allocation question. Obviously you have some liabilities coming up, the dividend, and I think you bought back some debt that was announced today. Still, cash generation this quarter should be pretty robust from collecting on the working capital and high iron ore prices. I'm just wondering if you can comment a little bit on how you see the ideal cash position going forward and on the global settlement. I know there's a timeline of payments, in terms of liability management, is that something that you can prepay, or should we expect that to follow the payment schedule. Just sort of secondary to that, you mentioned a potential IPO of VLI. If you could just comment a little bit on the rationale for doing that, just given you don't really need the cash. Is that just to sort of create and unlock some shareholder value? Then I guess the second question for Mark, just as it relates to the copper projects, and not so much Salobo, but really the projects that you have in Southeast Asia, which I understand are pretty attractive. Given the high copper prices, is that something that you're looking to potentially accelerate, or how should we think about a timeline for those projects? Thank you. Jonathan, thank you. Our cash position is way too high. It needs to be used. The first direction could be pay down gross debt. Most bonds are trading at a very high premiums because of the low yields. We are observing with a lot of attention, the trajectory of yields that started to increase U.S. Treasury yields more recently. We will be looking into opportunities to perhaps reduce our gross debt as well. That's one thing. The second thing you mentioned, prepayments of values associated with the agreement. That will be looked into. We might be looking into prepayments of our concession fees for the renewal of the concession because the regulatory interest rates are really high. We have the project finance to refinance as well. It is an obligation that was contracted at a time when interest rates were higher, and it embeds the Mozambique risk. That's something to be looking upon. Bottom line is we are looking into a number of alternatives. None of these alternatives have any interference with our ability to pay dividends. The level of cash is too high and needs to come down. Yes, you're right. It continues to increase. As you pointed out, in Brumadinho itself, there are some lump sum payments to be made over the course of the next six months, significant. Still, the reality is that we need to decrease those cash balances. Jonathan, just in terms of the projects in Asia, I believe you are referring to our project in Indonesia called Project Hu'u. It is a project, let us call it, say, in the pre-feasibility stage. Based on what we see already, we see a very large ore body, high potential annual production of copper, let us call it around the 250,000 tons per annum. We are looking to optimize that with significant gold production as well. We believe it is a potential first quartile cost mine with about 45+ years mine life. We are currently doing some studies to optimize this, looking at recoveries, renewable energy options, and extending the mine life. We are very positive about this project. One thing we would do is look towards bringing in potential partners to de-risk the project for approval sometime around the 2025 period. There's a very significant amount of study work and to get ready for that project approval. We believe this can add some great optionality to the robust copper projects opportunities that we have in Carajás, which were outlined in the Vale Day. Thank you. Our next question comes from Andreas Bokkenheuser, UBS. Thank you very much. A couple of questions from me today. One is on your cost base, especially your break-even cost to China. Obviously Vale used to be a break-even cost producer to China at about mid-30s dollars per ton. I realize that obviously sustaining CapEx has gone up and so on. What's your long-term goal here? I mean, do you think we're gonna get back to sort of the mid-30s, even with sustaining CapEx a bit higher? I would imagine with some cost dilution as you ramp up towards 400 million tons, there will be some cost dilution and then potentially some cost savings there, because potentially you could probably unlock another $2 billion-$3 billion of EBITDA. That's achievable, I would think. Could you give us a sense of kind of how you're thinking about the longer-term break-even cost to China? That's the first question. If I may, on the second question, obviously you're thinking about, or you obviously got capacity or getting to capacity of 450, even though the initial production rate will be 400 annualized by 2022, but full year to 2023. What takes you to 450, I guess, is the question? I realize this is not a 2023, or it's not a consideration until 2023. What takes you to 450? Is that a purely an iron ore price consideration where you say, all right, well, if iron ore is above 100 or whatever, effectively then you'll push for 450? When do you make that decision? I'm obviously asking because iron ore today is $170, so presumably that would be something worth considering. Okay, Andreas. Yes, we intend to get back to mid thirties, even considering sustaining. Number of levers for that. One is cost dilution for sure. The other thing is lowering the pre-operational expenses. We're spending a lot of money, and this is impacting our break even with idle operations still. There is some components which are pro-cyclical on the cash break even, namely royalties and third-party purchases, like the higher the annual prices, the higher the royalties and the third-party purchase costs. Also sustaining CapEx is going through a bump now, especially because of the intensity of the investments in filtration. It is not expected that we'll have a longer-term $7 per ton sustaining capital. We should go back in two years' time, let's say, to $4 per ton once those investments are done. Therefore, we see ourselves as a 30 and even sub-$30 per ton EBITDA breakdown in China, and when you add sustaining, a sub-$35 in the medium term in 2- 3 years. Luciano, about the 450, just to be clear, Andreas, and then Spinelli can help me with that. The idea behind the 450 is much more on creating flexibility and buffers to our situation and creating growth optionality in the North, right? Although we just announced the Capanema project. It's not based on the actual prices. Vale is truly committed to the value over volume. We are always looking at margins. We are always going to look at the way the market behaves. We're not going to be producing 450. We always said we want to have the capacity of 450 to have buffers to absorb problems or else, even if the market demands, we are able to do the 450. If you can add something else, Spinelli, it would be great. Yep. Through this element of the price that we are looking now, we're not looking at the price of now to get to the 450. Exactly this. This is a decision before any spike of price. The way we manage that is the swing capacity. We can regulate the operations in the South or in the North. We can use the portfolio flexibility to improve premium products or not. It should bring a reliability to the plan, to the 400 million tons plan, and give optionality if you have a market for that. Margin over volume is the key for that. Our next question comes from Chris Terry, Deutsche Bank. Hi, Eduardo and team. I had two questions I wanted to ask. The first is around production versus sales. I just wondered if you could comment a little bit on where your general inventory levels are at at some of your blending sites, and how you're thinking about the build of inventory on any of those blending sites and overall grade optimization for your selling products. The second question I wanted to ask was just around the exposure to batteries, lithium-ion batteries through nickel in particular. I just wondered if you could give an update on your latest thinking on what the company's working on there. Thank you. Thank you, Chris. Go ahead, Spinelli. Thank you, Chris. We are not planning any gap in our inventory for that. Last year, the Q3, we had a huge, very important gap to recover all the supply chain, to fulfill all the supply chain that we lost one year before. Now we are with our inventories in an operational level that we can give flexibility to sometimes go from a specific product like Carajás or to blend product. Obviously you see some gaps. It's not the number of production and the number of the sales can sometimes be different, but not a huge gap during the quarters. Mark, please. Of course, Eduardo. Chris, just in terms of batteries for the electric vehicle space, maybe just to start, I think we're seeing great evidence that the electric vehicle market is here and is going to grow dramatically over the coming years. It's going to be a dramatic opportunity for the nickel business. While there are discussions around the form of batteries, lithium-ion for sure is going to take a significant portion of that market. There are places for things like the lithium phosphate, iron phosphate battery. We believe that nickel will take a preeminent position in the battery space, and it will be demanded by the industry. Moving to the opportunities for Vale, what we see is an acceleration of discussions around creating the value chain or the supply chain in the European and U.S. markets. We are seeing lots of evidence and participating in many discussions on a number of different fronts around how we can participate. We have a strong portfolio of nickel, and the nickel that we produce, including our Class 1 nickel out of our North Atlantic flow sheet in U.K. and Canada, seems to be well demanded or strong demand for that product. That's something in the short term, and we are very heavily engaged in those discussions. That's demand that comes from our current flow sheet, and we will be participating in that. I think we look towards the more short to medium to long-term opportunities, and we start to look at opportunities within our flow sheet and potential joint ventures and partnerships, and we're in discussions around that as well. Just in terms of how we look to supply that, we obviously are very heavily engaged in our exploration drilling activities and looking at other opportunities for innovation to fully participate in this opportunity. Next question comes from Alex Hacking, Citi. Hi. Good morning. If I could just follow up on that last question with Mark, I guess first, which is, Mark, are you seeing, in your discussions, demand for sustainable Class 1 nickel? If so, how does Vale fit on that spectrum, and are there initiatives that you're undertaking on that front? The second question, just coming back to iron ore. In particular in the North, Carajás. When S11D was built, I think it was built for 230 million tons of export capacity. I think the system has never really done much more than 190 million tons. I know Serra Leste's coming back online. Is there a pathway there for the northern system to achieve that 230 million ton rate? If so, when do you think that would be? Thanks. Alex, thank you for asking that complimentary question, because absolutely, we see significant opportunity in providing nickel that meets strong ESG standards. We are seeing a lot of discussion. We're hearing a lot of discussion around the type of nickel that's being provided in terms of ESG standards, whether it's low carbon or coming from well-regulated, well-run jurisdictions. Clearly we can position, and we do position our nickel in the top of that spectrum. If you take a look at our nickel coming from our Canadian flow sheet, for example, it has an average carbon intensity significantly below comparable products, and we have an opportunity to decrease it dramatically. For example, removing diesel production or diesel fuel out of our Voisey's Bay operations will dramatically reduce our carbon intensity in our product coming from Long Harbour. We absolutely do see that opportunity, and we are positioning our nickel in that way. Certainly the suppliers are looking for that. Spinelli, you're. Yeah. Thank you, Alex. Well, yes. Our plan is to reach the 230 million tons next year, the capacity in the end of the year. I want to just check with you. We have three systems there. We have the North Range, the East Range, and the South Range. S11D is only one of this. First information that was good news from the last year. It was the East Range. We can add six million tons. We stopped this operation two years ago. Now we are back. We are adding in this number of 230 millions. The North Range, the challenge is to bring the new pits online. We always need to bring pits and have the construction and the license. The good news is the N3 operation that I mentioned in my initial speech. In S11D, that is the South Range, is going really well. This year, we need to adapt some crushers. It's in our plan this year. It came with the use of the S11D. We are improving the operation there, but we will be ready at the end of the year, beginning of next year to have full operation there. We have the plan to reach the 230 to the end of next year. Thank you. Our next question comes from Christian Georg, Société Générale. Thank you very much. Good morning to all. I have two questions for you. The first one on your pellets production. How should we look at the production target? Should we anticipate a gradual return to a 50,000 or 60,000 tons per annum in coming years? Associated to that, what should we anticipate for your cost of operations, leasing and pelletizing going forward? That the first question. The second is on the stoppage expenses that from Brumadinho, those costs which are not covered by the settlement, around something like $100 million per quarter. How should we expect those to evolve over the next two years? On the side, you seem to be very confident on your ability to deliver production this year. Should we look already at being more likely at the upper end of your 315, 335 million ton target? Thank you. Yeah, thank you, Christian. This is Spinelli here. Pellets production, we expect to improve slightly this year comparing to last year. Our main restriction is the production of pellet feed. We have all the evolutions to face in the southeastern system with all the dams that I mentioned. To the end of the year, we still have the bridge of this production using the remaining capacity in the dams. In the next year, we gradually will go back to the level of the production used to have. It'll be around the ramp-up to 50-60 of capacity. Obviously, it depends on the demand. Again, the margin of volumes is part of the strategy, but in terms of you can consider this year a slight recovery, and next year, after the production of pellet feed, we can improve more. In terms of costs, the dilution of cost will come, that we are operating a part of our capacity with idle capacity. Definitely the dilution of costs will be important to reach the best of our operations next year. Stoppage expenses should decline in the same proportion that the operations come back into production. With the exception of Vargem Grande, they should come to zero at the other sites by the end of 2022. Thank you. Our next question comes from Amos Fletcher, Barclays. Yeah, morning, gents. Had a couple of questions. First one on capital allocation. Can you clarify that once the expanded net debt gets below $10 billion, can we expect all surplus cash flow to be returned to shareholders? The second question is just on your Base Metals business. Once upon a time, you looked quite seriously at separating off the Base Metals business. When we look at the huge valuation differential between the pure play nickel and copper miners compared to iron ore mining companies, do you think there's a rationale to consider a separate listing of the Base Metals business again to highlight the value there? Thanks. Okay. Thanks, Amos. Yes, look at the understanding of the trajectory of the expanded debt is even more important. Obviously, if you are below 10x, all excess cash is going to be returned to shareholders in forms of dividends or else. Secondly, about base metals, obviously we understand that you have a strong point. We see the same. We see that in iron ore today with the valuation that we are undergoing. We need to correct both valuations and build the business. Of course, optionalities like that are always in the table to look at. We still have to do big homework at base metals business, grow the copper as we mentioned before, strengthen the nickel. Truly it's something that we're always going to be looking at, but for sure it's not the time. Capital allocation, just to be clear, everything in excess is going to be returned to shareholders. Always on a trajectory because we paid a strong dividend this semester and we had the $13.3 billion expanded debt. Okay, thank you. Thanks for the question. This concludes today's question and answer session. Mr. Eduardo Bartolomeo, at this time you may proceed with your closing statement, please. Okay. Thank you. Thank you a lot for your attention, your questions, your interest. I think as you saw, we had a very good, I would say even excellent, Q4. As I've been saying to you, this is not a sprint, it's a marathon. Marathon that goes through derisking the company, reshaping the company, and rerating the company. We are truly committed to the risk. We did strides very importantly in Brumadinho as with the global agreement. In safety, we're improving. We're bringing our with safety consistently. Capital discipline, we are extremely conservative and we're gonna return what we have to do to our shareholders in a disciplined way. We are reshaping the company. Luciano mentioned several initiatives to clean up from biodiesel, from palm oil to the VNC problem to other assets that are draining cash. We're gonna rerate when we are truly a safe, a sustainable, a reliable company. Thanks a lot for your attention and see you in the next call. That does conclude Vale's conference call for today. Thank you very much for your participation. You may now disconnect.