Good morning, ladies and gentlemen. Welcome to Vale's conference call to discuss the Q1 2021 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 the 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 Investors Link. This conference call is accompanied by a slide presentation, also available at Investors Link at the company's website, and is transmitted via internet as well. The broadcasting via internet, both the audio and the slides change, has a few seconds delay in relation to the audio transmitted via phone. Before proceeding, let me mention the 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 statements as a result of macroeconomic conditions, market risks, and other factors. With us today are Mr. Eduardo Bartolomeo, Chief Executive Officer, Mr. Luciano Siani Pires, Executive Vice President, Finance and Investor Relations, Mr. Marcello Spinelli, Executive Vice President, Iron Ore, Mr. Mark Travers, Executive Vice President, Base Metals, Mr. Carlos Henrique Senna Medeiros, Executive Vice President, Safety and Operational Excellence, and Mr. Alexandre D'Ambrosio, Executive Vice President, Legal and Tax. Mr. Eduardo Bartolomeo will proceed to the presentation on Vale's Q1 2020 performance, and after that, he'll be available for questions and answers. It's now my pleasure to turn the call over to Mr. Eduardo Bartolomeo. Sir, you may now begin. Thank you. Good morning, everyone. First of all, I hope you're all fine. In the Q1 of 2021, we kept our guards up in our operations as the COVID pandemic accelerated in Brazil. We have kept all safety measures and prevention procedures adopted in our operations, and I want to reinforce that only essential professionals are allowed in our sites. In April, we completed 13 months since the start of restrictive measures against the pandemic, and over 25% of our workforce is still working remotely. Safety, people, and reparation. These three words have been our priority since 2019, and they continue to make more sense now in this very critical moment for all of us. Well, a crisis of this dimension requires the urgency to do what's within our reach in the best way and as effectively as possible. We have been collaborating with governments and communities since the beginning, we continue to focus our efforts on the most critical items in this fight. For this reason, Vale and other companies have forces to buy and donate 3.4 million medicines for intubation. In contribution to the National Immunization Plan, Vale allocated resources for the expansion of the vaccine production of the Butantan Institute with an estimated production capacity of up to 100 million doses per year, and for the donation of 50 million syringes to the Ministry of Health of Brazil. We are attentive so that our support is accurate and effective, that our help directly reach the people in need. This is part of our new pact with society. As I have been saying at each of our meetings, Vale is determined to fully repair the damage caused by the Brumadinho tragedy. A major step in that direction was the signing of the global settlement in February. The decision that ratified the agreement became final at the end of March, bringing another layer of legal certainty for the reparation. One of the fronts that progresses consistently is that of water security. We are working on the commissioning of the construction works for a new water pipeline to supply the metropolitan region of Belo Horizonte with around 6 million people. At the same time, the reparation of individual damage is progressing. Since 2019, more than 10,000 people have been part of civil or labor indemnity agreements with Vale, which sum up to almost BRL 2.5 billion. We remain committed to a fair and prompt reparation for Brumadinho and the affected region. Talking about dam safety, at the works to improve stability, we have already removed the emergency level of four structures this year. We hope to reduce or remove the emergency level of another four structures still in 2021. With stabilization works and actions, and respecting the safety of the process, by the end of 2025, we hope to achieve satisfactory conditions for all 29 structures, which are at the emergency level today, as can be seen in the graph. We remain firm and progressing in the culture transformation towards a safer life. Last April 15th, we launched our integrated report with the main information on Vale's economic, environmental, and social impacts. This is another delivery from Vale as a result of listening to our stakeholders. This document, in addition to presenting our ESG performance in detail, helps to demonstrate how strongly our ESG strategy is connected to our business. Another important point is that it provides detailed information about our risk management, including our assessment of emerging long-term risks. With that, we closed one more ESG gap planned for 2021, totaling 39 gaps since 2019. As can be seen, our ambition is to transform Vale into a reference in ESG practice. Well, now talking about our operational results, we started 2021 with a performance as expected, with a good improvement compared to the Q1 of last year. Our adjusted EBITDA was $8.5 billion, the highest in our history for our first quarter, which is seasonally weaker in volumes. In iron ore, we made progress in stabilizing production, resuming the rest of the capacity halted at the Timbopeba site and at the Vargem Grande pelletizing plant. Our beginning of the year was stronger than 2020. We produced in this Q1, which is seasonally weaker, the same as we produced in the Q2 of 2020. This gives us a lot of confidence in reaching our production guidance for this year. Spinelli will give more details on that later. In nickel, we also performed as planned with a stable operation in Onça Puma and in the North Atlantic Operations, with Long Harbour reaching record production levels in the Q1. In copper, however, we underperformed with a drop of 20%-30% in volumes of Salobo and Sossego. This is because we are reviewing Salobo's processes, aiming to improve the safety of our operations at that site, therefore impacting mine movement. In Sossego, we had a longer maintenance due to the difficulty of mobilizing contractors because of COVID-19. On another front, in terms of addressing our cash drains, the sale of VNC operations was an important step in the commitment to transform our business. This commitment was made to our shareholders in the end of 2019 and delivered in a very responsible way with the creation of a local solution that meets the demand of all stakeholders. We also signed the agreement for the acquisition of Mitsui's stake in the coal and logistics operations in Mozambique, an important step towards our divestment in that business. Another commitment made to our shareholders. In this sense, another relevant step was the conclusion of the revamp of the Moatize processing plants, which will allow us to achieve a production rate of 15 million tons per year in the second half of 2021. In summary, we continue to take the necessary actions to stabilize our production, ensure growth options, and allocate capital in a disciplined way. Speaking of discipline and capital allocation, we presented one more evidence of our commitment to returning value to our shareholders with the announcement of the share buyback program this month. We are confident of our ability to deliver our de-risking and maximize value creation for our shareholders in the long term. We believe the buyback is one of the best investments for the company and one that does not compromise the continuity of dividends higher than the minimum set by our policy. With that, to conclude, summarizing for you, we are making progress with the reparation of Brumadinho quickly and fairly. We continue on the path to build a culture of safety at Vale. We are working hard to make our operations more stable and predictable. Our ESG commitments and strategy are increasingly linked with our business. Finally, our capital discipline remains unchanged. Most importantly, I assure you that we are doing everything we can to ensure the safety of the people in our operations in our communities. I would like to thank our 70,000 employees, our contractors, suppliers, and customers for their resilience and high guard during this critical moment through the COVID-19 pandemic. I pass the floor to Spinelli, who will give more details on the performance of iron ore. Thank you very much. Thank you, Eduardo. Good afternoon, all. Well, we've been updating about the resumption plan to reach 400 million tons next year. I'm gonna use the same slide to facilitate our explanation and start off in my left-hand side. You see the bar today. Today, remember that the concept that don't evolve from now, that's the capacity we have for a year. We came from a number, the 320 last quarter. Now we have the 327. We had an additional capacity in Timbopeba, seven million tons. Remember that we were running with three lines. We had the startup of other three lines, we have full capacity in Timbopeba now. Should be 325. We have a minus two, that we already update the forecast of Itabira. Itabira, the last call, we said that could reach a minus nine. We still have this minus seven as a buffer for Itabira. Itabira, we have a temporary problem there with a lack of capacity for the disposal of the. As we evolve during the year, we can update this minus seven, but we already put here the minus two. That's the number of capacity today. I want to highlight also, in the right-hand side, in the bottom the information that Vargem Grande now have the startup of the tailings filtration plant. We're not adding yet a capacity here. It will be important the second half when you have the whole picture of Vargem Grande growing. It's important milestone. That's the first plant of a sequence of plants coming from Brucutu and Itabira, and it's an important milestone to highlight. I want to emphasize that we are really committed to deliver the production guidance for this year. Our range from between 315 million tons - 335 million tons. What support this affirmation? Well, firstly, we started this year in a very better way compared to the Q1 last year. As Eduardo said, we added eight million tons this year compared to last year. Seasonally, the Q2 is better than the Q1. You know very well that. Due to the end of the rainy season in the south and the southeast of Brazil. Even in the north, we still have the rainy season there, but June is usually drier than the other months in the rainy season. We're counting on that to improve our production, and we can affirm that we have our guidance in perspective. As Eduardo said, it's another information. The last Q2 last year was the same one last year, that's another information that we are growing to achieve the guidance. Also, we have many actions that I will follow up with you in the next slide, in our roadmap to achieve the 400 million tons. First, information in the Southern System, Vargem Grande, next week we are advancing our tests with the conveyor belt. This test is a vibration test. We must check the impact in our upstream dam in that site. Fábrica is already testing the wet processing. We expect to have the final permit from ANM, the National Mining Agency, to keep the operation. We expect to do this in the end of this quarter. Still in the Southern System, in Vargem Grande, we are bringing online Maravilhas III dam. This is a very important asset for second half. We have some civil works there to finish. The important information, we already have all the permits to start up this asset. Only missing the declaration of stability, that's only in the end of the construction we can get. I also want to drag your attention to the southeastern system. It's as important information. Good news here in Itabira. We are anticipating a partial operation of the filtration plant. This will allow us to offset that buffer, the risk capacity that we have in Itabira is a minus seven that I mentioned the first. We are keeping here. We are trying to anticipate it now already having our plan, the anticipation to use the filtration and try stack the tailings. I want to update you also about Brucutu site. An important asset that are also coming online that is Torto Dam. We are during the middle of the construction. We expect to finalize this construction during this year. Differently from Maravilhas III, we don't have the final permit. Still have to apply in the process of one month to two month. Both processes, construction and permit, we intend to have all completed this year. If you have any delay, it's important to say that we have a backup position with the startup of the filtration in Brucutu. Remember that we have filtration coming Vargem Grande and Itabira, and this is expected to start up in the first quarter of next year. I'll be here for further questions in the Q&A session. I pass to Luciano Good morning. Good afternoon. Some highlights on the financial results. Starting by cash flows. As you saw, they were very strong in a quarter. Working capital had a positive contribution of BRL 550 million. You may have been surprised, actually the very strong sales of the Q4 of last year were collected this quarter. More than BRL 1.4 billion in reduction in accounts receivable. Remember that prices spiked at the end of December, remained strong in January. That was the reason why working capital evolved positively. Despite also the Q1 being very heavy on other payments like payment to suppliers, inventory build, profit share with employees, still working capital moved positively. Still on working capital, you may have noticed that the price realization didn't actually move in parallel with the Platts price. Why was that? If you look at the Q4, the average iron ore price, 62% for the quarter was $134, whereas the provisional price at the end of the quarter was $158 because of the increase in December. There was a very strong recording of EBITDA in the Q4 on the back of the provisional sales. Whereas in the Q4, what happened was the opposite. The average price for the quarter was $167, and the provisional price at the end of the quarter was still $158, $159 actually. The opposite, provisional prices dragged down the average price realization for the quarter even more so compared to the fourth quarter in which they pulled up. Something to notice is that those sales that were recorded at $159 this quarter, they will be repriced at today's prices once ships arrive at ports. Therefore, you could expect a carryover of EBITDA of maybe about $300 million U.S. from sales from the Q1 towards the Q2, cash and EBITDA. Talking about costs. C1 costs before third-party purchases. We need to look before third-party purchases because the prices have been going up sequentially. They were in line, $14.80 per ton compared - $15 per ton in the same quarter of last year. However, despite the depreciated Brazilian real, and we now can see that for the year 2021, the costs are going to stay, like I said in the last call, slightly higher, about $1 higher than last year on average. Why is that? We have about $0.70 of impact from diesel prices, which increased substantially in dollar terms from last year. There's another $0.30 that will come from a shift in the mix because of the very high prices that we are experiencing. We are doing some opportunistic production in sales, especially from the Midwestern system, which is very high cost, has costs around $40, $50 per ton. We're increasing sales from there. Although by a small proportion, it does impact about $0.30 the mix as a whole and C1 before third party purchases. Also on our competitiveness, some words on freight. You saw the recent spike in freight rates towards spot freight rates toward $28 per ton. Under this backdrop, actually, the freight rates within Vale, they did not increase much from just to $15.70 per ton. If things stay this way, and as we use more spot freight in the second half because of our higher production, we should expect about a dollar and a half increase on average freight for Vale in the second half because of that spike in spot freight rates. Finally, a word on New Caledonia and Base Metals. Just a reminder, from now on, you will not record under the Base Metals EBITDA the losses on New Caledonia, which were running at around $50 million, $60 million per quarter. Remember also about one year ago, you didn't have Onça Puma also operating. Today as compared to one year ago, we have Onça Puma generating around $50 million per quarter and New Caledonia out saving another $50 million per quarter. A net $100 million per quarter improvement in results at the same conditions of price as compared to last year. These things start to make a difference as time builds up. Finally, on capital allocation, this is no doubt the big questioning. What are you going to do with the money with these higher prices? I want to call your attention. We have had a lot of consistency and things are evolving quite quickly. Just a year ago, we were with the dividend policy suspended. We were in the middle of the first wave of COVID-19. A lot of uncertainty, markets diving. The reparation of Brumadinho not consolidated. In the second half of last year, once the first wave ended and reparation advanced, we resumed the dividend policy, and we paid over $3 billion. In November, actually early December, prices started to increase from the level of $120 towards higher prices. Brumadinho agreement was still in discussion, so we didn't know what to expect. Finally in February, once we reached the agreement and prices kind of situated at a higher level than $120, we decided to pay another $4 billion in dividend despite the burden from the Brumadinho agreement. Prices then were still fluctuating from a peak of $170, then down to $145. After they're stabilized at $160 in April, we announced earlier this month the $5 billion buyback. Now here we are again, running after prices, which are now at over $190. Naturally, it will create more options for cash flow allocation. As you can see, the recent story has been of progress within Vale and upward surprises in the market. What will be our response? There's nothing new in our response. As we have been doing, we will make decisions and we will announce those decisions that will prioritize return to shareholders. The story remains the same. We're going to be consistent. It could be an acceleration of the buyback. We can finish the buyback earlier. It could be another increase in dividends above the minimum. It could be both of them. You should expect that we will continue to follow this track record of returning consistently money to shareholders. The next question on the balance sheet, is it inefficient? A lot of people start to ask this. First, a note here, with low interest rates, about three percent on a 10-year bond for Vale, the value of the tax shield, if you increase leverage, is relatively small. For example, if you add $10 billion on debt at three percent rates, you're gonna save approximately $90 million per year in tax payments for $10 billion additional debt. If you want a meaningful reposition on the balance sheet in order to really take advantage of tax shields, you should add $30 billion, $40 billion in debt to the balance sheet, which obviously in a cyclical industry, you wouldn't do that. Right? These tax savings, they should be weighted against the opportunities that the financial flexibility that today we have that may bring in the future. That's the calculation we're making. However, I also note that these $10 billion expanded net debt target, we established that two, three years ago when prices were around about $80 per ton. With the expectation of stronger for longer prices, we obviously could increase leverage, and we are evaluating that. Most importantly, if we have the opportunity to deploy the additional capital in a smart way. That's how we're thinking now about the balance sheet. Now let's hand over to Q&A. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Please restrict your questions to two at a time. Our first question comes from Alex Hacking from Citi. Yeah. Good morning, everyone, and thanks for the time. I guess I wanted to ask about the potential for a base metal spinoff that's creating some headlines this morning. If you could just give us some color on where you are in your thought process there, what kind of potential transaction you would be considering, what kind of assets you would be considering putting in it, and then what would be the sort of logic behind any potential transaction. Thank you very much. Okay. Thanks, Alex. Well, let me be clear here. Obviously, we are always analyzing this opportunity. Okay? That's the main, how can I say, driver behind us. What is really pushing us to that situation, I think is twofold. One is that we are in the midst of the foundation of recovering the business, and we believe we are on the right track. Secondly, we are undervalued, both on the Vale as a whole and on base metal story. It's a clear way to unlock value just in the basis of the multiples. What we said, and I will be clear now to give you where our minds are, it's in the exactly conceptual phase of analyzing what does that mean. First of all, let's put it this way. We have assets, as you know, in Carajás that are intertwined with the iron ore assets. We need to find out a way to how we deal with that. That's one issue that we have to deal with, how we organize ourselves inside. There are several aspects within the precondition to do the business that we are studying. That said, analyzing. What is important, and then I might, because now we're in English, probably I can ask Mark to help me on that. We have, first of all, as I mentioned before, to work on the foundations and on the narrative. The foundations are very clear since the beginning. We need to get the North Atlantic operations productive and operating adequately. We need to replace capacity, so Voisey's Bay, Salobo III, Copper Cliff Mine, and the sales of VNC. One of the things that triggered us as well, as you asked about our mines, where they are, is the sales of VNC. It unleashes us to think differently about the business. I'll ask Mark, because he's heading the business and I was heading beforehand as well. What is the narrative? I think Vale has a unique narrative here that we might be able to exploit. Not to be overly repetitive, we are on a phase of studying it, analyzing the possibility. Could you help me on that, Mark? Sure. Eduardo and Alex, I think Eduardo set out very well. The path really is to make sure that we get the optimal value for Base Metals, and he spoke about the need to build the foundation. Maybe the narrative or maybe the strategic direction to optimize value, I can spend a minute or two on it. I think more and more, we're focusing in on copper nickel in our business as a key for our participation in the decarbonization of the economy. We clearly have lots of opportunities, which we've described in previous calls and on Vale Day around copper, where we have a current pipeline of projects that should bring us to about 500,000 tons of copper per year in the next few years with Salobo III, Cristalino, Alemão. We also have a number of projects around the Carajás area, which can optimize through synergies with the iron ore business and the current infrastructure in the area. Plus some other options, for example, Victoria project in Canada and Project Two that can get us up to 900,000 tons. Clearly, even within the internal pipeline, we have significant opportunities for growth. On the nickel side, we spent a lot of time recently talking about the dynamic of electric vehicles and what it's bringing to the industry. Clearly, we are going down that path of the electric vehicle penetration in the auto industry and the inclusion of nickel in the batteries for those vehicles. Our approach is that we have the products. We have the products that have diversity and quality and form to go into the electric vehicle battery. We have the ESG credentials, and we continue to try and build those. Those credentials relate to the low carbon intensity of our product coming from well-regulated, respected regimes such as Canada. Really, what we're going to really focus in on is seeing that narrative or opportunity to build in this area. Currently, just to give a little bit of an update, we have buyers who are very interested in the products that we produce right now in the electric vehicle space. We recently signed a significant multi-year contract with an OEM. It represents about five percent of our Class one nickel, and we see further opportunities to grow the sale of our Class 1 nickel into this space. We have some other opportunities there in terms of moving our products around. We have some opportunities with maybe some relatively smaller investments to repurpose some of our production lines to get a little bit more out. We have other opportunities for growth, which we look at. We have a lot of government interest talking to us to try and tease some of this out. In the end, we're looking to build up to about 30%-40% of our Class one nickel going into the EV space. Eduardo, I think that's probably the narrative that I would give in terms of how we increase value within the base metals business. Yeah. Alex, just to conclude, it's a process that, as you asked, there are several questions that have to be answered. We are in the initial phase of going back to that view that we had in 2014, but in a much different way. Now we think we have a better foundation. We are still work to do in the foundation. We have a better narrative now. Of course, there are several questions that has to be answered. As you asked, how would be the potential transaction? We didn't get to that yet. We're just in the beginning phase of analyzing the possibility to unlock value. I hope I have answered your question. Our next question comes from Timna Tanners with Bank of America. Hey, good afternoon, and thanks for the color. Wanted to get your perspective on the situation in China. It's been interesting to watch iron ore prices rise even as China talks about cutting production, and yet very little production actually cut, as you point out in your release in the first quarter. Just wanted a little bit more of your perspective on what's happening there and what you see happening as the year progresses. Then if I could, a second question is just on any impact that we should think about or prepare for with regard to the Samarco bankruptcy filing. Thanks, guys. Go ahead, Mr. Marcello Spinelli. Hi, Timna. Thank you for the question. Well, China, as you said, we have two points, two main questions, actually. We have a solid demand based on the stimulus and based on all trade war problem that started some time ago. China is going really well. All the indicators we can see coming from properties, 7.8% growth rate considering we use manufacturing and infrastructure. A lot of new starts last year are under construction this year. We have the scenario of a fantastic demand coming. The question that we have open here, for how long we're going to have this stimulus? In our perspective, we don't see a huge process to stop this. We see as a smooth process coming on the second half. We don't see this in this half. We are going to face a stronger demand the next quarter. For the last of the year, we can see something going on in a smoother way. On the other hand, the steel supply, as you said, China, just after the two sessions with the party meeting, they came to the world as a country that definitely are going after the decarbonization. They are being really strong about this. We saw Tangshan, as you see. The second question is, how will be the rollout of these cuts? Our market intelligence, we can see that they are coming really seriously this time. We can see CISA try to control this process with their three actions that they see, two or three don't do. They say that if you want to cut the guys that didn't do their homework, the swap production, or they didn't follow the permit to cut something two or three years ago. They are not compliant to the ultra low emissions that they should comply on. Although they say that if you are compliant to the ultra emission, part of the production are going really well in this area, you should allow. Again, what we can see, inventory is declining. Blast furnace in a very high utilization. The scenario, Timna, for instance, is to have high prices. You can decline in the second half. Mostly high premiums. We can see a support for the premiums for the whole year. If you consider that the utilization of blast furnace will be high, price of steel will be high, margins high. The scenario for our forecast is to have the premiums in this level for the whole year. Now pass to Luciano for Samarco. Timna, Vale is going to be, and BHP as well, we're going to be spectators in this Samarco JR bankruptcy filing. The company has started to operate. The creditors have got some sentences in their favor, left the company no alternative but to file for JR. The process will take at least 240 days by law, likely more. The company is generating operational cash flows. Those cash flows will be available for distribution to the creditors. This is going to be done through an organized process in court. We don't have any expectation to have residual equity value from Samarco. Also, there's no expectation whatsoever of any additional capital injections to support operations at Samarco, given that the debt is no recourse to Vale and BHP. We're going to be at the stands watching what's going on. Participants who have already pressed star one, please press star one again. Our next question comes from Mr. David Gagliano with BMO. Hi, thanks for taking my questions. I just wanted to drill down a little bit more on the capital allocation questions and issues. First of all, has Vale bought back any of the 270 million shares associated with the buyback that was announced in April? Okay, David. Yes, we have. You're going to see the monthly reports we're required to file with the securities regulator in Brazil. It's going to be available for everyone. Just notice that we had a blackout period because of these results issued yesterday. Therefore, in the 15 days prior to the issue of the results, we were not able to buy back any shares by regulation. Okay. Just going forward, obviously, you mentioned it, obviously after regular dividends, total CapEx, Bermudino payments, there's still a lot of cash here. The question, in terms of a little more detail in terms of how we should expect from a cadence, from a timing perspective, and in what form should we expect these incremental shareholder returns over and above the regular dividends. Is this something we should be expecting before, say, for example the next regular dividend payment? We haven't discussed that. As you said, the regular payments occur just in March and September. The more obvious way to allocate return cash to shareholders in between is through an acceleration of the buyback. This could be discussed with the upcoming board, which will be elected if we should or not do something interim. Luciano, just to add on that, I think the key word here, David, is consistency, right. We don't wanna be stuck to the September, March dates. Of course, we need always to gauge the market that we are in. Sometimes overly optimistic, sometimes over-pessimistic, like last year in March. We did the buyback in between because it was clear that we had to do it. Normally we would be willing to do consistently, but as Luciano mentioned, we have to talk to the board. You should expect, of course, dividends above minimum payment. Our next question comes from Mr. Carlos De Alba with Morgan Stanley. Thank you very much. Good afternoon. I guess, on the same topic, Eduardo, Luciano, clearly the company generates a lot of cash flows. It was surprisingly strong quarter on that regard. As you mentioned, prices are higher. Are there any caps or limits to the amount of dividends, special dividends, that you would propose the company or the board for the company to pay? I guess, the regular dividends are very clearly defined by a formula. We can probably look at the growth CapEx, or potential growth projects on base metals. Other than that, is there any cap or limit to the amount of dividends that the company would consider paying back to shareholders? My second question, if I may, is on the Moatize divestiture process. What are the expectations in terms of timing or next steps that we should expect from that process? Also, Luciano, maybe you can walk us through how the process or the incorporation of Moatize, Nacala into Vale's books would look like? I guess you have to increase your debt, and your interest payments in the coming quarters. Thank you. Okay. Luciano, just to get the first one, I think there is no cap. There's always a balance, of course. Again, we need to assess market conditions, debt structure, CapEx structure. Again, as I think you pointed out very correctly, our CapEx is pretty well behaved. It's all around platforms of growth. You shouldn't expect extreme CapEx. There's nothing in our radar like that. Secondly, a question that a lot of people make, so I'll take the opportunity to make it clear, there's no transformation in M&A in our radar as well. With that said, and Luciano mentioned in the beginning, I'm just paraphrasing Luciano, the return is gonna go to the shareholders. Right, Luciano? On Moatize, we just finalized the revamp, which started to ramp up. We hope it will be quick. We hope by the beginning of the second half, we'll be already producing at 15 million tons. By the end of the year, we should receive equipment on site in order to upgrade the production to 18 million tons. If you consider today's thermal coal prices and met coal prices a little higher than that, maybe BRL 130, BRL 140, the business can turn maybe that positive quite soon and be cash flow positive at the beginning of next year, without the burden of the project finance. That goes to your following question. The burden of the project finance was always felt within Vale's financial results through the EBITDA of coal. Coal EBITDA is penalized today because the mine pays a tariff for the corridor, which is punitive, because it needs to be so in order to repay the project finance. When you watch last BRL 150 million, for example, EBITDA for coal, about BRL 100 million negative is just a service of the project finance funded through the tariff. Once you purchase Mitsui, what's going to happen is that everything is going to be consolidated, and therefore, the project finance will become Vale's debt. Those BRL 400 million a year, BRL 300 million, BRL 400 million, they will be seen at the financial statements, part of it as interest and part of it as just debt repayment. On the other hand, the coal EBITDA will immediately improve by the same amount. That's why I'm saying that you don't need much in order to turn coal EBITDA as a business positive. You just need to produce and prices slightly better than what you're seeing today. That leads us to the next stage, which will be, given that I do have a project finance which bears Mozambican risk and higher interest rates, there's obviously the opportunity to refinance at much lower Vale corporate rates and save money with that. That's what we're going to do. In terms of timing for the divestiture, we already have over 20 NDAs signed with interested parties. There's a way to go between people wanting to look at the asset and offering a firm intention to bid. We hope that we'll start to have those intentions again by beginning of the second half. People were going to do a lot of diligence on that. If we succeed, hopefully the target would be to try to sign a deal before year-end. Some variables put some risk on that. There's this dispute between China and Australia, which is weighing on met coal prices. You have all the COVID-19 situation in India, which is a big importer of thermal coal and also could weigh on international thermal coal prices. Let's see. If we're a little lucky, I believe we can sign a deal still by the end of the year. Our next question comes from Mr. Alfonso Salazar with Scotiabank. On the update, good morning, everyone. I want to ask about the outlook of the pellet market, if you can provide some guidance regarding production for the rest of the year and in the coming years. If you can give us some color on that. Okay, Alfonso. It is Benatti here. Thank you for your question. Well, pellet market, let's talk about the demand side. You can split this in blast furnace pellet and direct reduction pellet. The blast furnace pellet is quite the same as iron ore. We are not in China. China is doing really well. It is related to the problem of necessity to improve the use of the blast furnaces there. The same pattern you see in ex-China, that is our market. Very good prices, steel prices, margins, and necessity to improve the production. From this perspective, you can see a room for sales and premiums. The supply side, in the other hand, there is a limitation today, and Vale is the key producer and the key opportunity today. We expect the production this year slightly better than the year before. The limitation is the pellet feed production. We have temporary restrictions to dispose of our tailings in the main sites, Brucutu and Itabira. We don't expect to produce more than this year. We are targeting to go back to the 60 million tons capacity for next year. I'm not saying that we are going to do 60 million tons, but we want to be ready to do that. It depends on the demand perspective, the market perspective to define that. As a conclusion, we see a market that we double the premiums in the Q1 compared to the last quarter last year. This current quarter, we again have another increase in the premiums, and we expect there is room for another increase in the premiums as you have the demand is really tight, supply demand is tight. Just an update about the direct reduction market. That's quite the same determination for blast furnace. We have two more ingredients here. The USA coming really fast in their economy and all the stimulus that are coming. They produce, they use a lot of scrap, but they need pellets to improve their production, direct reduction. The Middle East is our main market because of the U.S., the increase of the use of scraps. The price of scrap in Turkey is really high. That make our clients, they can charge higher price. They have good margins now. Definitely there is room again to improve the margins, improve the premiums in this market. The outlook for this year, the supply is limited and we can see good premiums because of the demand that is strong in place. Our next question comes from Mr. Christian George with Société Générale. Thank you very much. Well done with your medical assistance in Brazil. Seems it looks very good indeed. I have two questions for you. One of them is, you just said no transformative M&A, even in a scenario of higher prices for longer and large cash flow. Does that exclude also some small M&A on copper? In your statement, you seem to be very positive near term and long term on copper outlook. Is this an area where you may consider putting some cash in a large cash availability scenario? On the side of that, would you consider any investment in hydrogen in the context of your customers in steel sector in trying to move to green steel, decarbonize? Can you be part of that or is that something which you're just looking at from a distance? The second question is on nickel. You're out of New Caledonia. You're still obviously in Indonesia. What was the situation with Class two nickel out there, being able to do sulfate and serve the battery market? Is it something you're still looking at down there, or is it something you're looking at only doing from Canada and Brazil? Thank you. Hey, Christian. First of all, thank you for the acknowledgment of the medical assist. Okay. Thanks very much to your thought team. Yes, you're right. There's no transformative M&A. We are always looking for copper. It's very hard, as you might understand, but we shouldn't stop. That obviously is one area of interest. Another area of interest is energy. We have a very bold goal to eliminate our clean energy, to not eliminate, substitute all of our matrix for clean. Might happen to have some very small acquisitions on that environment. Hydrogen specifically, it brings us to another subject that is very dear to our heart because we just announced the Scope three targets, one of the few that did that, by the way. We are following up some players that are doing that, but necessarily, I think more on a watching, how can I say that, seat. We are actually working very close to our customers as good goal. I think because of time constraints, we wouldn't go there that far. We're looking to help our clients with high quality iron ore and high quality metallics that will be needed if hydrogen, and we believe hydrogen is the best together with carbon capture best alternatives for the steel industry. We are watching closely what the hydrogen it's happening, but no investments on that. Okay. I think for nickel, I think it's better to Mark Travers to answer. He'll be more short and more objective. Okay. Sure, Christian. In terms of class, sorry, the sulfate. You're right that the primary area of focus would be the Canadian nickel, but there are opportunities in Indonesia. The most prominent of which is the Pomalaa HPAL project that is being studied and being discussed with Sumitomo Metal Mining. That product would clearly go into the sulfate market. That one's right in front of us. The other ones are, I would say, aspirational or early. There are opportunities, but nothing really of significance at that point in time. For example, there are HPAL projects that are on the books by others in Indonesia, and there are parties that are interested in our limonite, for example, but there's nothing significant at this point in time. Our next question comes from Mr. Andreas with UBS. Thank you very much for taking my question. I hope you're all safe and well. Well, two questions, a volume question and a freight question. The volume question is kind of two parts, you talked about it a little bit already. Vale obviously has a number of licenses that are kind of required to reach your production goal of 400 million tons down the line. Is there any kind of comfort or clarity that you can give us on these licenses? I mean, are they merely a formality? Do you obviously expect to get them, is there any kind of visibility you can get that they're not going to be significantly delayed at this point in time, either conversations with the state or federal governments on this? That's the first part of the first question. Within that, you obviously have always had a focus on value over volume, as has your Australian peers. One of the things I'm thinking about there is your additional capacity as it kind of materializes out of the northern system in particular. Vale's consolidated capacity could be 450 million tons. We're sitting at almost BRL 200 ton on iron ore. If ever there was a time to kind of monetize that additional capacity, I would think it would be now. Basically add additional volumes beyond the 400 million tons with iron ore BRL 200. How do you think about that strategy value over volume, given where prices are and given that you could have additional capacity throughout Vale's system going forward? That's kind of the first, sorry, slightly long volume question. Then the second question is on freight. Luciano, you talked about a bit of freight inflation, obviously, and how it impacts your second half of the year. If we look beyond the second half of the year, and if we look into 2022, 2023, Vale is obviously going to be putting more volume into the market. That could keep freight rates high. If we're still sitting at $28 a ton by the end of next year, is there additional freight inflation that kind of flows through your P&L, or are you still well protected on your freight contracts? That's just a longer-term view on the freight cost. Those are my two questions. Sorry if they were a little bit long. No, no problem Andreas. Spinelli speaking. Thank you for your question. Regarding the risk to achieve the volumes. Obviously, licenses or authorizations are always in our track, and we try to plan with some extra delay to keep our planning okay. What you see, if you split the challenges in three, the North, we need to keep the license as a rolling process. We just got the license of pit in Serra Sul in S11D. It's business as usual. It's going well. We don't see any delay. In the Southeastern system, we are really close to bridge the gap of the lack of dam's capacity to install the filtration. It's in our hands, actually. We have final licenses. Yes, we have, but we don't see any big deal. I explained about the Torto dam that we still have to do this, but if you have delay, we have a fallback position for that. I'm emphasizing that we are trying to bring in our planning process buffers, contingencies to be reliable in the end of the day. Jumping to the second part of your question. Vale performance is a mantra. We are ready to bring back the 400 million tons, and we are building the extra 50 million tons. This is 450 million tons. Why? We want to be okay with that. We want to be reliable with our target of 400 million tons. We can use an extra 50 million if the market demands that. That's our mantra. We're going to decide this as we evolve in the market. Again, definitely we need to be ready for an extra capacity. About the freight, Luciano, I think I can start, you can finalize. The freight side, we can say that we are less exposed this quarter, this first half. Luciano said the second half, it's seasonally more exposed to spot freight. You must have in mind that we are bringing an additional 18 Guaibamax for this year that will match for the demand of 400 million tons, and an extra six Newcastlemax for our fleet. We're talking about 170 vessels in our fleet today. We are growing this natural hedge for the spot market freight. Definitely we consider the inflation today, and the last problem was really related to small vessels, to Panamax that just came the soybean seasons that make this happen and contaminated the vessels market. Again, we need to live this. We're not forecasting any big inflation for the spot market. We are working hard to have our own fleet to offset any problem in the market. An additional point is, total fleet today, we have installed all these scrubbers. That's another point that we are not being affected to the gap between the high sulfur and low sulfur also. The shipping business for us is very important to be stable. Said it all. Thanks. This concludes today's question and answer session. Mr. Eduardo Bartolomeo, at this time, you may proceed with your closing statements. Okay. Thank you. Thank you very much for your attention and questions and interest to talk to us. I think we've been repetitive in that way from day one. It's a marathon that we're going through. I think in the Vale Day we said de-risking, reshaping, and rerating. De-risking is advancing pretty well. Still a lot of milestones to achieve. Example, be better on safety, be more assertive on production, but we did strides very good on Brumadinho. Capital discipline is zero doubt that we are on that. Reshaping the NC, it's a tremendous good example of how to do it with respect, with communities. Mozambique's gonna be another one. Rerating is gonna be our final mark. We're gonna be a more reliable, more safe, and a more human organization that will be priced correctly. Thanks a lot. Thanks a lot for your questions because that moves us to the right direction. Hope to 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 your line.