Good morning, ladies and gentlemen. Welcome to Vale's Conference Call to Discuss the 2023 Second Quarter Results. All participants are currently in a listen-only mode. At the end of the presentations, we will provide instructions on how to participate in the question and answer session. This call is being translated simultaneously to Portuguese. If you should require assistance during the call, please press the star key, 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 in the area for investors. The slide presentation that accompanies this call is being broadcast on the internet, and is also available in the investors' area of the company's website. There's a slight two second delay between the audio and slide changes compared to the audio transmitted via phone. Before proceeding, let me mention that forward-looking statements may be provided in this presentation, including Vale's expectations about future events or results, encompassing those matters listed in the respective presentation. We caution you that forward-looking statements are not guarantees of future performance and involve risks and uncertainties. To obtain information on factors that may lead to results different from those forecasted by Vale, please consult the reports, Vale's files with the U.S. Securities and Exchange Commission, SEC, the Brazilian Comissão de Valores Mobiliários, CVM, and in particular, the factors discussed under forward-looking statements and risk factors in Vale's annual report on Form 20-F. With us today are Mr. Eduardo de Salles Bartolomeo, Chief Executive Officer; Mr. Gustavo Pimenta, Executive Vice President of Finance and Investor Relations; Mrs. Deshnee Naidoo, CEO, Vale Base Metals; Mr. Carlos Medeiros, Executive Vice President of Operations. Mr. Eduardo Bartolomeo will begin the presentation on Vale's second quarter 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. Thank you very much. Good morning, everyone. I hope you are all well. Let me start with a very significant milestone that we delivered and announced last night. We signed a strategic partnership with world-class diversified investors for the Energy Transition Metals business. This partnership attributed a very attractive valuation for our ETM business, which shows that our partners recognize the value generation potential of our assets and how uniquely positioned they are. This is an encouraging starting point for what we believe is a powerful platform for growth. I will give you more details during the presentation. Let me cover our operating results. We delivered a solid production performance for our business this quarter. In Iron Ore Solutions, we are growing quarterly output year-on-year, while our all-in costs declined yearly and quarterly. We are also commissioning Torto Dam, which will increase availability of pellet feed for Brucutu operations and improve the average quality of our portfolio. In Energy Transition Metals, Salobo-III is ramping up ahead of schedule with a solid contribution to our corporate growth year to date. In Nickel, we are firmly marching towards our annual guidance. Moving on to dam management, we reached the first deadline for implementing the Global Industry Standard for Tailings Management, the GISTM, with a positive outlook. All of our prioritized structures are in conformance with the standard, with ongoing action plans to ensure that the best practices are in place. This is part of our commitment to being a safer company for our employees, communities, and society. On top of that, our discipline in capital allocation remains pristine. We announced the distribution of $1.74 billion in shareholder remuneration with payment in September. Since 2021, the total amount distributed in dividends and Interest on Capital translated into a 27% yield to our shareholders. This shows Vale's solid track record in creating and sharing value. In addition, our third share buyback program is now 69% complete. Since launching our first share buyback program in 2021, Vale has repurchased about 16% of its share base, representing a concentration in shareholder future earnings of almost 20%. With that, we are walking the talk, delivering in our commitments. Let me go now over some details of our performance. Next slide. We reached the end of the first half of 2023 with strong results and a positive outlook, being well-positioned to deliver the production guidance for 2023. In Iron Ore Solutions - Asset reliability initiatives have started to bear fruits this quarter, and driving the solid performance across our three systems. We set a new production record for a second quarter at S11D. Itabira and Vargem Grande performed very well as well, and our mix improved substantially. As I mentioned, Torto is finally commissioned, which should allow for more pellet production, improving our mix and average price premium. In Energy Transition Metals, copper production in the second quarter grew 41% year-on-year, mainly due to successful ramp-up of Salobo III and improved performance at Sossego, benefiting from the extended SAG mill maintenance done last year. Copper sales were exceptional for the period, growing 43% year-on-year. Finished nickel production grew 8% year-on-year, giving continued solid performance from our Sudbury mines and improved production sourced from Indonesia. With planned maintenance in the quarter, Voisey's Bay and Long Harbuor operations had a lower output. Onça Puma Furnace is currently operating at a lower rate in preparation for the furnace rebuild later this year. Despite that, our outlook for 2023 Nickel production remains solid. Next slide. We are ramping up Salobo III ahead of schedule with strong production rates. We had an increment of 10 kilotons this quarter versus the first quarter, with a total output of 16 kilotons in the first half of 2023, meaning 9% of our total copper output in the same period. Once at peak capacity, expected at the end of 2024, Salobo III will add 30,000-40,000 kilotons per year of copper to our total Salobo complex output. Next slide. In 2020, we committed to implement the GISTM, the Global Industry Standard for Tailings Management, within the industry timeframe. I'm glad to inform that we have implemented the standard for all of our prioritized structures within the first deadline, with ongoing action plans to ensure full conformance. This is an important milestone in the evolution of our dam management towards the safety of our employees, neighboring communities, and society. In addition, we are on track to full conformance for all our tailing facilities, not in state of closure by 2025. We are consistently reducing risks associated with our dams and implementing the best international practice in dam management, while developing alternative solutions to reduce dam use. We will continue to deliver on our ESG commitments so that Vale becomes a leader in sustainable mining and a benchmark in safety. Next slide. Finally, talking about our ETM business. As you all know, we have been working over the last 18 months on a series of initiatives to position our ETM business for success. We have completely redesigned our organization, ring-fenced the business into a single vehicle and a linear structure, and a dedicated governance. We attracted industry experts for the board, top talents like Jérôme Guillen and Mark Cutifani, who needs no introduction. In addition, we defined management incentive plans tailored to foster business development. All of that to establish a more fit-for-purpose organization that will allow us to unlock the ETM business value over the next several years. Today, I am very proud to announce the formation of a partnership with world-class strategic investors to ETM, which I am confident will create substantial long-term value to all of our shareholders. I am honored to partner with Manara Minerals Investment Company, a new venture between Ma'aden and PIF, the Public Investment Fund, that brings in experience and help us in accessing strategic geographies for Vale, including the iron ore business with our Mega Hubs. I am also honored to partner with Engine No. 1, a reference in sustainability-focused investments with solid ESG credentials. The future ahead of us is very promising. The need for a lower carbon economy is a generational challenge, but at the same time is an enormous opportunity, as this simply will not be achieved without a significant increase in the supply of critical minerals. We see ETM uniquely positioned to play a relevant role in this process, not only because we have a tremendous mineral endowment, but also because we are building the leading ESG future-facing minerals platform in our space, one that pursues long-term value creation to all stakeholders. We all share the same vision for long-term growth and value creation, the terms of our partnership is a validation of that. I said we would close a deal only at the right value and with the right partners. That is exactly what we achieved today. Now I pass the floor to Gustavo, who will detail the transaction and our financial results. I'll get back to you on our Q&A at the end, and thank you for your attention. Thanks, Eduardo. Good morning, everyone. As Eduardo explained it, this partnership is another important milestone in building a leading, future-facing commodities platform, with significant mineral endowment and resources, inclusive of reserves amounting over 30 million tons for copper and 90 million tons for nickel. We see potential for ETM to invest $25 billion-$30 billion in highly accretive projects over the next decade, growing its copper production from approximately 350 kilotons per year to 900 kilotons per year, and its nickel production from around 175 kilotons per year to 300 kilotons per year. With this exciting outlook, I now turn to the transaction details in the next slide. Given the strong interest to partner with ETM and the high caliber of potential partners, we, together with our board, decided to accommodate a greater share of investors and increased the equity capitalization to 13%, considering an enterprise value of $26 billion. The implied pre-money equity value for Vale was $25.1 billion. The total net proceeds are expected to reach $3.4 billion, out of which $1 billion will stay with VBM, and the balance will be returned to the parent company for future use as per our capital allocation framework. Moving to our financial performance in the second quarter. Let's start with our EBITDA. As you can see, we delivered an EBITDA of $4.1 billion, $1.4 billion below the same period in 2022. This decrease is explained by $15 per ton lower iron ore fines realized price, and by the $3,000 per ton lower nickel realized prices, following the decline in the reference prices since second quarter 2022. The impact of costs and expenses on EBITDA was relatively small, at $96 million, mainly from transitory effects in the nickel business related to the maintenance and higher third-party nickel feed purchases. In iron ore and copper, despite the year-on-year inflationary pressure, costs and expenses improved EBITDA by $218 million. I will go into more details on costs later in my presentation. Sales volumes and byproducts helped increase our EBITDA by $154 million as a result of initiatives to improve asset reliability. We expect to continue seeing these positive results in the second half of 2023. Now on to iron ore costs. Our C1 cash cost, ex third-party purchases, came down slightly to $23.5 per ton, quarter-on-quarter, even considering a $0.70 per ton negative effect from the Brazilian currency appreciation. Given the significant appreciation of the Brazilian real, now considering an average exchange rate of 4.95 for the year versus our previous assumption of 5.20 reais per dollar, we have adjusted our C1 guidance for the year to $21.5-$22.5 per ton. This means an expected C1 below $22 per ton in the second half of this year, driven by more northern system production in the mix and the continuous rollout of our productivity program, with gains in asset reliability and procurement initiatives. With regards to all-in costs, our EBITDA breakeven reached $53 per ton, roughly flat year-on-year, and $5.2 per ton lower, quarter-on-quarter. This can be attributed to the improved product portfolio mix, with more northern system ore and lower high-silica product sales, in addition to greater volumes. We also adjusted our iron ore all-in cost guidance to $52-$54 per ton for the year. This change is essentially a result of external factors, such as the lower all-in premiums due to market conditions and the adjustments in C1 due to the Brazilian real appreciation. Just to give a sensitivity, a $0.10 appreciation of the Brazilian real converts into a $0.30 per ton increase in C1 cash cost, ex third-party purchases, and a $0.50 per ton increase in all-in costs in 2023. In copper, we continue to see gains from higher production at both Salobo and Sossego, which supports the dilution of fixed costs at our operations. Higher gold prices and the one-off effect on tax credits contributed to reducing our total costs lower than in the first quarter, which is in line with our expectations with the continued ramp-up of Salobo III. At our nickel operations, our COGS, ex third-party feed, increased about $5,000 year-on-year due to lower availability of our own feed, which we were already expecting with the ongoing transition in Voisey's Bay mine and the relatively longer planned maintenance period at Long Harbour. In connection with Voisey's Bay transition and Long Harbour maintenance, this quarter, we have recognized a one-off decrease in the recoverable value of inventories, which were produced at higher costs. As a result, our all-in costs increased year-on-year, but stayed essentially flat quarter-on-quarter at just over $17,000 per ton. The all-in cost guidance for Nickel in 2023 has been adjusted to $15,500-$16,000 per ton, mostly reflecting lower than expected by-product prices and volumes, which we expected to continue throughout the second half of 2023. For the second half, we expected all-in costs to decline as production increases and no other one-off event materializes. Now moving to cash generation. As you can see, Q2 free cash flow was negatively impacted by working capital, as we had 7 million tons higher accrual sales volumes in iron ore, in addition to higher Brumadinho related commitments. In the second quarter, Vale raised $1.5 billion from bond issues, whose proceeds were mostly used to repurchase $500 million of higher cost debt and to repurchase $1.4 billion of shares as part of our buyback program. Looking specifically at our capital location strategy, yesterday, our board of directors approved a distribution of $1.7 billion in Interest on Capital to be paid in September, based on financial results from the first half of the year. Since 2021, Vale generated 27% of dividend yield. Additionally, we continue to see the repurchase of our shares as one of the best ways to create long-term value for our shareholders. Since the beginning of our share buyback program, Vale has repurchased 16% of our share base, representing a concentration in shareholder future earnings of almost 20%. Before we move on to the Q&A session, I'd like to reinforce the key messages from today's call. We continue to make substantial progress in our operational performance and are extremely confident in delivering our production targets for the year. At our Energy Transition Metals business, we are thrilled with today's announcement and believe the actions we have taken over the last 18 months will position the business to be a winner in the global energy transition. At the same time, we have been taking immediate and consistent actions to improve dam safety, being now adherent to the GISTM for all critical structures. Finally, we remain highly committed to a disciplined capital allocation process, as evidenced by today's dividend announcement and the continuous execution of our highly accretive buyback program. Now, I'd like to open the call for questions. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press the star key followed by the one key on your touchtone phone now. If at any time you would like to remove yourself from the questioning queue, press star two. Please ask your question in English and limit your questions to two at a time. Our first question comes from Daniel Sasson, Itaú BBA. Hi, guys. Good morning. Thanks for, for the presentation. My first question is on the cost front. If you could give us more details on, on, on the cost difference between your northern and southern systems, that would be helpful and help us understand the evolution of your costs going forward, given the increase of participation of the northern system in your total mix and your total sales mix in the second half. If you could remind us of your exposure, what percent of your C1 is actually denominated in AIs, that would be great? My second question, congrats on the transaction for the, the base metals division. If you could give us more, more color on your expectations on the potential contributions from Ma'aden and the PIF from a strategic standpoint to the development and stabilization of operations in your base metals division, that would be great, right? I'm trying to understand that in addition from the interest evaluation that you were able to reap, what is your what your partners could bring to the table and help us with those with unlocking value in those operations? Thanks a lot. First in the cost, and we're gonna detail a little bit more the, the partnership later. Thanks, thanks, Eduardo. Thanks, Daniel, for your question. On the northern system, C1 is on, on the mid things. You, you can do the math, you see there is certainly a contribution as we bring more volume from the north, to, to our overall mix, right? We've seen some improvement in Q2, and we'll continue to see in the second half of the year. Regarding your FX, question, I think the best way to look into that is to look to t o assess the sensitivity that I've talked about in my prep remarks. Every $ 0.10 of BRL appreciation is about $0.30 of increase in our C1. I think that's the best way to look into the overall exposure that we have, and $ 0.50 at the all-in. I'll pass the third question to Eduardo. Thanks, Gustavo. I think, Daniel, thanks for the question. When we discussed the unlocking value for base metals, we always said it's a conjunction of factors, right? It wasn't only the participation. The participation would come, as I mentioned, at the right value with the right partner, one that would see the opportunity down the road and the ability of ourselves to execute it. Well, obviously, as you, as Gustavo mentioned, there were several interested in Manara and Ma'aden together with PIF, and then Engine No. 1 as well. They came up exactly on this, on these two fundamental elements that we believe will unlock value. First of all, they validate the thesis. They are long-term investors. They are not here for the, for a spring. They're coming here for the long term. They bring sector experience in Ma'aden. Ma'aden has partnerships with other several miners, they will help us as well. PIF, as I mentioned already, is a long-term value investor, and Engine No. 1 bring SEG credentials. That is key as we are in a business of Energy Transition. I believe the validation, the strength in the governance that will happen with them, their help in the sector, and there, and there's a collateral that, of course, is a benefit from us, is that we have interests in the Middle East as well, with the Mega Hubs, as you know. There were several elements that added to bring the right partner, people that share the same view, share the same values, they have, they have the SG credentials. I think they will be very helpful on strengthening the governance, because as we've been saying repeatedly, it's all about execution and growth. With Mark Cutifani leading the board, attracting talents like him, like Jerome, having a fit for purpose organization, having partners, this will add up to a convergence of interests. How can I say that? Objectives that will unlock a tremendous values because we're gonna execute faster and grow faster. Thanks for your question, Daniel. We are very excited, by the way. I think we are beginning a new phase in Vale that will unlock tremendous value for all shareholders and fundamentally for the base metals business. Our next question comes with Leonardo Correa, Banco BTG Pactual. Good morning, everyone. Thank you. My first question for is, is on base metals. Gustavo, you mentioned during the presentation, the initial presentation, that $3.4 billion was the total, right, injection, in the transaction. You mentioned that $1 billion would stay at VBM, and $2.4 billion would be returning to Vale, right? I guess there were some doubts on how much would stay at the energy transition unit. I think you, you clarified that. I just wanted to confirm. This $2.4 billion that's flowing back into Vale, I mean, where, where would we see that being allocated? I mean, I, I can imagine the key question would be if, if that would be returned to shareholders in the form of a special dividend or continued aggressive buyback. The question is: What will Vale do with the $2.4 billion that's returning to the company or that's staying at Vale and not being allocated to VBM? The second question, still on cash returns, and still on, still for you, Gustavo. I mean, from, from your approach, I'm just analyzing what Vale has been doing, right? You announced you're basically paying the minimum dividend based on the formula, right? You're allocating all the extra, right, towards a very aggressive buyback, which has been on, which has been on pretty much Vale's cards over the past quarters. You're allocating something around $1.4 billion-$1.5 billion per quarter of buybacks. Even with the changes in interest on equity, right, which in the world will probably be extinguished, I mean, do you think that's the same tone going forward? We should expect minimum dividends being paid and all the balance on the buyback. Is that still the way to go? Those are the two questions. Thank you very much. Thanks, Leo, for your question. On, on the first one, yeah, we wanted to provide more clarity in terms of where the money will stay. Based on what VBM is able to generate on an ongoing basis, plus their own balance sheet, we came to the conclusion that $1 billion was sufficient to fund the business for the next three to four years, based on the plan that they have. The rest is indeed moving back to the parent. It will come into our overall pool of cash, and we'll then allocate based on our capital allocation framework that we all know very well. That links to the second conversation. I, I'm very happy with the way we've been allocating capital over the last couple of years. I think we are... creating significant value for our shareholders, either through a very healthy dividend payment or the share buyback at a very attractive level. This is certainly a conversation that, that we have, constantly with our board, and, you know, we'll bring more clarity in terms of how we, we keep going on this one. You should continue to expect us to be very disciplined, and very focused on creating long-term value for, for our shareholders. Our next question comes with Vanessa Quiroga, Credit Suisse. Thank you, and congrats on the transaction. I have a couple of questions. One of them is regarding the agreement with the partners. Is there any optionality for off take for the partners as part of the agreement? Will they have any distri- dividend, I mean, any rights to receive dividends from Vale in the future? The second question is related to, I would like you to review basically your corporate governance protection to be able to avoid any sudden change in leadership at the company, Vale. Thank you. All right. Gustavo here. On the first one, there is no special dividend, anything like that on the agreement. I think the agreement is very proportional to the final stake of each one of the partners. There is some commercial discussions that we've had and agreement that we've had with our partners, and it's all based on market conditions. And that's pretty much it. It's very attractive from a governance standpoint for us. If anything, it just opens up new markets for Vale, right? Including the opportunity for us to deploy our products in the Middle Eastern. Our next question. No, no, no, no, no. Bear with a minute. We have to answer the second question still. On the corporate governance, I think it's a very, very important question from Vanessa, is that we've been, since I think 2017, if I'm not mistaken, when we entered Novo Mercado, we've been improving the governance. I think Vale's governance is, is fit for purpose for, for a world-class organization like ours. I believe that we are in good shape. We have independence, we, we have representation, we have lead independent directors. I, I think the corporate governance is, is it's, it's, it's right-sized to avoid any problems that we, we would eventually have. Our next question is from Carlos de Alba, Morgan Stanley. Yeah. Good morning, thank you very much, and congratulations on finally executing the, the transaction. I, I wanted to, to maybe step back and, and think about how you see the, the path forward now for VBM, given, given that you accomplished, I guess, what presumably is, is the first step or, or, or the first two steps in, in that, you know, in, in, in, in, in, in what you wanna do with this company in the future. Do, do you want now to concentrate on improving operations, and then potentially do an IPO or, or see what opportunities are there to buy or merge with another entity and you further increase the already attractive pipeline of credit that, that you have? If you could comment and provide any color, that would be really useful. I have another question, but maybe I can ask it after the first one. Okay, Carlos, thanks. Your question is extremely important because as I mentioned before, it's, it's a path, right? It's first of all, it's execute. That's why the partners are relevant on that sense, because they're not, how can I say that? Short-term investors or short-term viewers on the, on this, on this matter. That interest, that, that fit for purpose organization that we mentioned, that is being that is designed already, is ring-fenced, as I mentioned, is the first step. The acquisition of talents like Jerome and Mark will go under the first hurdle, that is execute on existing assets. Of course, we still have the gaps to fulfill. There are still projects that are ramping up, so we believe that's the first and most important challenge that we have to keep on doing as we are being, as we've been doing. The difference, I believe, with this new design or this new arrangement, is, is speed. The second one is growth. With a more dedicated organization, we believe that the projects, the attention, the drives are, will help us on accelerate that growth. ... When those two things merge, and will take a while, it's not something you need, it takes two, three years, I don't know. We will see what kind of demands we will have, what kind of opportunities we will have. I don't know if Gustavo wants to complement, but fundamentally, it's a, it's, it's a path to execution, a path to growth, and eventually opportunities that will, that will arise later, right? Of course, there's capital allocation opportunities as well. Yeah, no, I think you covered, you covered well, Eduardo. I think, the key message for us here is also optionality. I think this, this transaction creates options that otherwise Vale wouldn't have, right? To fund the opportunities that will come along. We are very excited because I think we are through a series of actions over the last 18 months. I think we are setting this business for success, creating options that otherwise we would not have, and a more focused organization, which over time, I think we all believe strongly that will create significant value for our shareholders. Thank you, Eduardo and Gustavo. Gustavo, maybe, the second question I have you could address is the following: Vale has a dividend policy that is based on EBITDA generation minus sustaining CapEx. Assuming that iron prices were to come into some pressure, EBITDA would come down. Sustaining CapEx, you, you may have some space to, to bring it down, but well, presumably there's a minimum level that you wanna do so, so that you maintain the integrity of your operations and assets. There is a little bit of little room to maneuver if EBITDA comes down, but not as much as your free cash flow generation impacted by the repayments of the Brumadinho-Mariana accident, rather than the characterization. Meaning, it, it, it is conceivable that your free cash flow yield could be lower than your dividend yield, as suggested by your, by your dividend, dividend policy. How do you see this situation? What would the company do in such a scenario? Clearly, the balance sheet is strong, and you could sustain a dividend yield higher than the free cash flow yield, but potentially not for too long. Yeah, I just wanted to explore how, how you see this, and, and if there is a possibility potentially to change the dividend policy, or maybe I'm just mistaken, and the, the payments and the expenses on Brumadinho and that are adjusted out on EBITDA in some calculations are not adjusted out for the dividend policy purposes. Yeah. That, that's a good question, Carlos. Those, you know, I think first thing is those expenses or disbursements are temporary, right? Over a period of time, they, they, they'll be heavier, and then they will, over time, reduce, which will free up cash down the road. In the very immediate term, under the scenario frame, I think we will have the ability to even use our balance sheet, and we've been doing this, as you've noticed. We have a very strong balance sheet, amortizations. That amortization is very smooth over the years. You've seen us doing a lot of liability management in the last two, three years, pushing out amortization, which give us a lot of breathing room for us to accommodate and continue to, to deliver on our dividend policy. We are, this is, this is very critical for us, and we'll continue to be very disciplined, in terms of delivering on the policy that we have. Our next question is from Thiago Lofiego, Bradesco BBI. Hi, good morning, everyone. First question, congratulations on the on the Base Metals deal. If I, if I may go back to Carlos' question, which was, you know, on, in the lines of what, what next steps are? I'll be more specific in my question here, which is, would you consider a next step being a potential sale to a larger strategic shareholder, now that you have, you know, the, the valuation, kind of like a stamp, would you pursue, you know, larger steps in terms of bringing in larger partners to develop the Vale Base Metals? Is an IPO a higher probability scenario, or you're not thinking about any of those two scenarios and just thinking about the operating turnaround? My, my second question, to Medeiros, if I may. Medeiros, could you please talk a little bit about the main initiatives you're focusing on at the operating side? What the main upsides are. We understand the licensing bottlenecks, the resuming, production story, but from your perspective, are there any other, you know, major levers that you're working on, to increase, you know, production efficiency and, and operating efficiency? Thank you. Okay, Thiago, thanks for, for the congrats, and thanks for the very specific question. Yes, there is no. The path now is execution. The focus now as we arranged every piece of the puzzle, we have a partner, we have a structure, we have the people, we have Mark, we have Jerome, we have Deshnee, we have our, the structure is execution. That's the, that's the, our primary focus. As Gustavo has mentioned, the amount of investment that this business will require down the road, the optionality is in our hands. Is that an IPO? It could, could be. Is a merger? Could be, but it's not in our minds now. Our minds are totally focused on the execution. Okay, I hope, I hope, I hope I have been more clear now. This is something for down the road, 2-3 years to think about. For now, now, now, now that we did the deal, let's focus on accelerating the, how can I say that? The filling the gaps or closing the gaps on the execution and accelerating growth, as I mentioned before. Then two, three years down the road, well, I don't know, we might-- then as, as Gustavo mentioned, the optionalities will be all in our hands. We haven't think about that yet. Okay, I hope I, I hope I have been specific and answered you this time. I'll pass to Medeiros to answer your second question. Hey Thiago for me the main point ve been working in the operational side is basically asset reliability in all systems. That's the point where we believe that there is the most room for improvement. Clearly, we saw some results in the last quarter. Besides the reliability, there are some specific points that vary from system to system and also the geography where I believe there is the biggest opportunity for upsides is S11D, in terms of reliability. Yes, this is the main point. Our next question is from Amos Fletcher, with Barclays. Yeah. Morning, gentlemen, and thanks for the opportunity. I just wanted to ask a question about the separation of VBM. Will it be run effectively with a separate balance sheet? Will that influence Vale's net debt target and cash returns policy? For example, if VBM is free cash flow negative, for example, you know, are you gonna carve that out from Vale's adjusted net debt when you think about shareholder returns? Thanks. Hey, Amos Fletcher, Gustavo Pimenta here. Given the, the larger share of participation, it'll be all consolidated still. Certainly, they will, they will be able to fund themselves with their own either generated cash, being able to raise capital and, and debt. That debt, it's for now, we are expecting to be recourse, but over time, as the business matures, we may, we may, we may be able to change it. At this point, given the, the, the size of the participation from Vale, it will continue to be consolidated and treated as such. No change in the policies at this point. Our next question is from Rodolfo Angele, Banco JP Morgan. Hey, hi, good morning. My first question, just wanted to confirm, the cash that stays at VBM of $1 billion, you mentioned this is what you see as what the company will need for the next three to four years. Did I get this right, Gustavo, can you just confirm, please? Yes, Rodolfo, because the company, I mean, the way we are setting the company up is there is no debt. Day one, right? Very conservative balance sheet. We are adding $1 billion of cash, plus they do generate, good cash flow. That combination will allow them to fund what they have planned for the next,three to four years. Certainly as SaaS may, you know, new opportunities to invest may come up, but at this point, based on the plan, that's what we have. The rest, the $2.4, will come up to the parent. The next question is from Rafael Barcellos, Banco Santander. Good morning. Thanks for taking my question. My first question about the base metals. I mean, firstly, congratulations for the deal. You mentioned that the Vale Base Metals division is expected to invest around $25 billion-$30 billion in the next decade in strategic projects, right? Could you please give us more call on how would you, would you believe that the funding of this investment plan would be? I mean, overall, how are you thinking about the capital allocation strategy for this division? If there is any risk that you could change the dividend policy to have the dividend policy more related to the iron ore division, just to understand, how are you thinking about that? The second question, I mean, about the iron ore business. Vale finally received the license to operate the Torto Dam, which of course, will improve its ability to produce more pellet feed. My question is, is just to understand, what can we expect in terms of ramp-up? I mean, I mean, we will a-already see these effects in the third Q or more to the fourth Q? In order to that, I mean, I remember that Bl- the Brucutu complex used to produce like 30 million tons before the Brumadinho tragedy, a-and it's now at a run rate of 20 million tons. Just to understand whether or not the Brucutu complex could return to a run rate of 30 million tons in the short term. Okay, thank you. Thanks, Rafael. Gustavo here. On base metals, there will be a ramp up for us to get to $25 billion-$30 billion of investment in the next decade, right? I think the deal that we are doing now allows us, as I mentioned a couple of times here, to create options for us to fund those growth. Could be internally generated cash, their own balance sheet, but could be others, right? Vale could continue to fund, it's proportional, but we could also access capital markets, either public or private, as we just did. I think we are opening up different alternatives, and we will assess at its due time, right? Three to four years from now, if we need to make a, a large investment, we will assess, assess where the market is and what is best for our shareholders. That's the first one. On Torto, it's already in operations, in terms of benefit, it's about $50 million a month, not in terms of volume, but quality. It's already there. In terms of bringing up to 29, the, the number that we've quoted, it will take some time, a couple of years still, because there is some work that we need to do in terms of waste disposal, which will require some licenses. The first stage was really, really to, you know, to improve the quality of the 21, 20 million tons that we currently produce. We'll start to see this already in the PNL. The ability to ramp up, it still requires some licensee, especially for waste disposal, which we are working on. The next question is from Rodolfo Angele, JP Morgan. Yeah, thanks for getting back to me. I had a second question for management. The question is, is really about, you know, VBM again, the, the ambition is, is really, you know, enormous, right? We're talking about tripling copper, doubling nickel. The question is really, do you have that mapped out? Is this going to be done at the current assets, or is that, at this point, a target, a goal for the company and, and you're going to be evaluating, you know, greenfields, M&As? And kind of this ties back to my first question, 'cause I felt like $1 billion was a bit shy, given the ambition. Just wanted to hear your thoughts on that. Thanks again for getting me back online. Thanks, Rodolfo. Apologies for cutting you off earlier. So yeah, the $1 billion is mostly due to the ramp up profile, so it takes time for us to materialize some of those opportunities. But look, I think one of the unique competitiveness of our ETM business, and from our perspective, that is what attracted these partners and many others that were interested in being part of this, is the fact that ETM or Vale Base Metals is sitting in a tremendous amount of resources, right? In three of the most relevant mineral jurisdictions in the world. So Brazil, with Carajas, you have Canada, and then you have Indonesia, right? So we have a tremendous endowment. So I think the key message that we want to convey here is there's two elements of value unlocking. There is one, which is continued stabilization of the operations that we have, which Mark is working with Deshnee and being very focused on that. Then there's a second stage, which is how we anticipate the development of that endowment, right? How we bring more projects faster to the market. We see tremendous opportunity to unlock value, good level of returns, mid to high double-digit returns, and that's what we are gonna go after. We don't need to do any M&A, large M&A, a large transaction to get to that, to that future. I think we can do with their own resources that we could currently have. Our next question is from Tyler Broda, RBC. Great. Thanks very much, gentlemen. Congratulations on the transaction. My question is on the nickel assets in Canada. I guess, in general, both Voisey's Bay and Sudbury have kind of underperformed this year. I know from the site visit last year that this is gonna be a multi-year process, but I guess, how do you, how do you sort of assess what's gone wrong this year? Secondly, with that, I guess, is how does Mark Cutifani's presence start to affect that? Like, what's Mark, you know, doing in particular in his role? Thanks very much. Okay, okay, Tyler. I'll, I'll let Deshnee go over the first point about Voisey's Bay, and I don't agree that it's not going like as planned. I think it is like planned. That's why exactly we, we have this gap between the, the, the seed for Long Harbour. Anyhow, Mark Cutifani is a person that had worked with us. I worked with him when, when he was still in Inco at that time, and when we acquired Vale. I think Mark brings a total alignment in the way we see how to fix a problem, but he has done it and a, a track record, so he already is, it's, is with us. We are doing an asset review with top specialists to see exactly how we can accelerate things that are already undergoing and other elements that are. He's gonna chair the board, of course. I will be there together with Pimenta. This kind of focus will, will, as I, as I've been saying, help us to accelerate. Mark is. The right asset, the right guy, at the right time, in the right place with the right partners. Exactly like our other partners that I mentioned before. I asked Deshnee to go up over Voisey's Bay because we are very excited how we can actually go down underground and extract value that Voisey's Bay has. Thank you for that, Eduardo, and thank you, Tyler. As you mentioned, the Investor Day that we had. In Sudbury, the challenge has been on development. I'm very happy to say that the development that the team is achieving this year is more than double what we've achieved last year, and the tons are coming to plan. As we guided at Vale Day, the challenge we have in Sudbury, some of the one-off maintenance activities that we have, you know, including things like the Creighton cage, one-off. That's why you're seeing the slight decrease. Exactly as Eduardo is saying, the tons are actually coming to plan, and we're very satisfied with the performance. As we also guided in Vale Day regarding Voisey's Bay, Voisey's Bay, and in fact, the entire VNL entity, will be in transition for another 18 months or so. The reason for that is we are busy ramping down the open pit, which is you know, near completion right now, and ramping up to the underground mines. Sticking very disciplined to our PMP schedule, we then took Long Harbour down for a two month PMP this past quarter. Both transitions, in terms of the tons as well as the PMP, came together to give us what looks like a horrible quarter, but I can assure you it is to plan. Just echoing what Eduardo said about Mark. Mark and I have already started working together. We are putting together something that looks like a pathway to value plan. In, and in addition to what Mark brings from an ex-expertise point of view, in terms of helping the management team and myself, we do have the likes of Tony O'Neill and some of the other industry experts helping us with an asset review, that we will then use to look at how we can unlock the full potential outside of the current initiatives to fix and get back to the run rates that we need. Thank you. Our next question is from Alexander Hacking, with Citi. Yeah, good morning. Thanks for the call. Two questions. Firstly, could you maybe give us an update on the outlook for mining taxes in Brazil? Secondly, could you maybe discuss the role that Engine No.1 will play in, in base metals? You know, the fund does have some history of being quite active in its investments. Thank you. Thanks, Alex. On mining tax, I think we are following closely all the discussions in, in Brazil lately. It's also important to remind, always important to remind that our sector is, is highly taxed already compared to, to others when you take the full taxation in consideration. We are feeling good about where we are heading towards. Of course, everybody, like everybody monitoring closely potential impacts, but so far so good. We'll continue to monitor that closely. In terms of Engine No. 1, we've, we've met them, talked to Chris James and team over the last several months about this opportunity, and we are highly aligned in terms of the value we see long term. I'm sure he, he and his team are very excited to join Vale Base Metals, and we are thrilled to have them joining. I think he will be a very important strategic voice to help us drive value in the long term. We are excited, very aligned long term, and looking forward to working with them. This concludes today's question and answer session. Mr. Eduardo Bartolomeo, at this time, you may proceed with your closing statements. Okay. Thank you. I'm just gonna echo, Gustavo's point in the end. I think, we are very confident at the middle of the year that, we are with a stronger operational performance in all of our assets. ETM, as, as we were able to discuss today, has a tremendous opportunity ahead. The puzzle is, is done, now it's a matter of execution and growth. Very happy to be able to conform with GISTM, Vale. It is going to be a reference in dam management. We started earlier, and, of course, we have the obligation with society to be a reference on that, and GISTM is a very welcome standard to protect ourselves and society. Lastly, as was discussed during the call as well, there is no doubt about our capital discipline. Everything that we do here is on the way to create value for our shareholders and of course, for all stakeholders, society, our employees, and the ones that we thank, by the way, that had a hard time to create this transaction, that everybody perceived how much value there is in the assets that Vale owns and will extract. As I always say, we are in a marathon, and we are in the kilometer 25 now, and we're gonna get there, and the ones that come together with us, surely you're gonna benefit from that. Thanks a lot for your attention, and see you in the next call. Vale's conference call for today is now concluded. Thank you very much for your participation. You may now disconnect.