Slides
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1 Vale’s 4Q24 Performance February 20th, 2025
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2 Vale’s 4Q24 Performance 1. Opening remarks 2. Financial Performance February 20th, 2025
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Disclaimer “This presentation may include statements that present Vale's expectations about future events or results, including without limitation (i) our ability to deliver decharacterization projects as planned on slides 5; (ii) our ability to deliver growth projects as planned on slide 6; (iii) our revised expectations for capex on slide 9, and (v) cost guidance on slide 14. These risks and uncertainties include factors relating to our ability to perform our production plans and to obtain applicable environmental licenses. It include risks and uncertainties relating to the following: (a) the countries where we operate, especially Brazil, Canada and Indonesia; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; (e) global competition in the markets in which Vale operates; (f) the estimation of mineral resources and reserves, the exploration of mineral reserves and resources and the development of mining facilities, our ability to obtain or renew licenses, the depletion and exhaustion of mines and mineral reserves and resources. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.
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1. Opening remarks
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Vale 2030: A trusted partner with the most competitive and resilient portfolio PerformanceDriven TrustedPartner Superior Portfolio Vale 2030 Cultivating institutional relationships Generating a positive impact for people and nature Ensuring greater trust through increased transparency Delivering a high quality, and flexible iron ore portfolio Focusing on customer-oriented solutions Accelerating copper growth Reference in safety and operational excellence Securing competitiveness as a talent-driven and agile company Fostering innovation and digital solutions 5
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Strong deliveries in 2024 Advancing on dam management Safety is our core value Total recordable injury frequency rate (TRIFR) 3.5 1.1 2019 2024 -68% 57% of the Upstream Dam Decharacterization Program complete +5 dams removed from emergency level in 2024 On track No dams at emergency level 3 by 2025 Mariana agreement Railway negotiation VGR, Capanema and VBME start-up Key achievements All guidances met Minas-Rio and Sohar partnerships
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Delivering operational stability and focusing on a flexible iron ore portfolio Iron ore production reached 328 Mt, the highest level since 2018 Start-up of Vargem Grande and Capanema: increasing flexibility Iron Ore Production (Mt) 89 85 4Q23 4Q24 Vale’s Conference Call: Superior Portfolio 321 328 2023 2024 Original Guidance: 310-320Mt Iron ore portfolio (%) 11% 12% 68% 70% 8% 12% 17% 4Q23 1% 4Q24 Others High-silica IOCJ+BRBF +Pellet feed Agglomerates +$2.9/t all-in premium y/y, optimizing our portfolio according to market conditions Fe Sales 62.4% 63.2%
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Highest copper production since 2020 Vale’s Conference Call: Superior Portfolio 1After PTVI deconsolidation. Copper (kt) Nickel (kt) 99 102 4Q23 4Q24 3% 327 348 2023 2024 6% 45 46 4Q23 4Q24 1% 165 160 2023 2024 -3% 8 Stronger performance at our Salobo and Sudbury mines Highest quarterly production since 2020 VBME: Eastern Deeps was commissioned in Nov/24 Original guidance1: 153-168kt Original guidance: 320-355kt Thompson under strategic review
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Focus on improving competitiveness Vale’s Conference Call: Superior Portfolio 9 Copper all-in costs (‘000 US$/t) Nickel all-in costs (‘000 US$/t) Iron Ore Cash Cost (C1) ex-third-party purchases (US$/t) 22.3 21.8 20.5-22 <20 3.4 2.6 2.8-3.3 16.8 15.4 14-15.5 4Q24 C1 <$19/t, with efficiency initiatives gaining momentum Lowest copper all-in since 4Q20 VBME start-up and asset review to support lower costs 2023 2024 2025E 2026E 2023 2024 2025E 2023 2024 2025E 1Excludig
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US$ 2 bn shareholder remuneration, new buyback program and capex optimization Vale’s Conference Call: Superior Portfolio Revised capex (US$ bn) 10 2.0-2.5 4.0-4.5 2025 Previous guidance ~1.6 ~4.3 2025 New guidance Growth Sustaining ~5.9 Projects Optimization FX update BRL -USD @5.70 ~6.5 US$ 2 billion in dividends and interest on capital Buyback program up to 120 million shares (~3% of outstanding shares)
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Vale’s Conference Call: Superior Portfolio Novo Carajás: unique mineral endowment
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Novo Carajás: largest mining province in the world Salobo PGGBreves 4Alfa Osasco Itacaiunas Copaíba Núcleo Urbano Parauapebas N5 Serra Leste (SL1) Serra Norte (N4) Pium Gameleira Norte South East North Serra Norte Serra Sul Canaã dos Caraj Sossego Cristalino 118 Bacaba Visconde Barão Borrachudo Cristalino 88 Estrela Alemão Itacaré Alemão Furnas Paulo Afonso CururuAN34 Salobo Leite Onça Puma Novo Carajás: unique mineral endowment Investment (2025-2030) of R$ 70 billion 10% of global iron ore seaborne market Unique iron ore and copper endowments, with significant growth potential 5.2 bn tons @ 65.2% Fe 1.2 bn tons @ 0.62% Cu Positioning Brazil as a key player in critical minerals and a leader in decarbonization Vale’s Conference Call: Superior Portfolio
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13 2. Financial Performance
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14 EBITDA: solid portfolio improvement and cost performance Vale’s Conference Call: Financial Performance 1 Excluding Brumadinho expenses and one-off events. 2 Including FX impact ex-iron ore C1 cash cost (US$ 141 million), by-products revenues (US$ 233 million) and others (US$ -175 million). EBITDA Proforma 4Q24 vs. 3Q24 US$ million 188 46 181 199 Proforma EBITDA 3Q241 Price Iron ore premiums (portfolio optimization) Volume Freight C1 cash cost (iron ore) Others2 Proforma EBITDA 4Q241 -202 -66 3,773 4,119
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15 1 Not including sustatining invetments. Iron Ore: delivering all-in <$50/t Vale’s Conference Call: Financial Performance C1 cash cost, ex-third-party purchases (US$/t) Iron ore & Pellets all-in costs1 (US$/t) Main effects in 4Q24 (y/y) ◼ Inventory turnover (US$ -1.1/t) ◼ FX effect (US$ -0.7/t) ◼ Efficiency initiatives (US$ -0.3/t) Main effects in 4Q24 (y/y) ◼ C1 cash cost, ex-3rd-party (US$ -2.0/t) ◼ All-in premiums (US$ -2.9/t) ◼ Higher freight rates (US$ +1.2/t) 4Q23 3Q24 4Q24 20.8 20.6 18.8 4Q23 3Q24 4Q24 52.3 55.1 49.5 -10% -5%
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16 Energy Transition Metals: strong cost reductions taking advantage of polymetallic orebodies Vale’s Conference Call: Financial Performance Copper all-in costs (‘000 US$/t) Nickel all-in costs (‘000 US$/t) Main effects in 4Q24 (y/y) ◼ Higher by-product revenues (US$ -1.5k/t) ◼ Lower COGS (US$ -0.4k/t) Main effects in 4Q24 (y/y) ◼ Higher by-product revenues (US$ -1.3k/t) 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 -66% -8% 3.2 15.02.9 1.1 18.1 13.9
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1 Includes interest in loans and borrowings (US$ 224 million), income taxes (US$ 416 million) and others. 2 Related to Associates and Joint Ventures EBITDA that was included in the Proforma EBITDA. 3 Includes dam decharacterization expenses (US$ 128 million) and Brumadinho incurred expenses (US$ 98 million). 4 Includes regular railway payments (US$ 134 million), streaming effects (US$ 114 million), derivatives (US$ 83 million), shareholder debentures (US$ 94 million) and others. 5 Includes advanced payment related to renegotiation of railway concession contracts (US$ 656 million), Minas-Rio transaction (US$ 30 million) and other non-recurring items. 6 Payments related to Brumadinho (US$321 million) and Samarco (US$ 504 million) agreements. 7 Includes new funds raised (US$ 1.933 billion), partially offset by debt repayment (US$ 429 million). Free cash flow – 4Q24 US$ million 817 579 -825 -917 One-off effects5 -100 Free Cash Flow 4Q24 Proforma EBITDA 168 1,504 Cash/liability management and Others7 Increase in cash and cash equivalents Working capital -1,766 CAPEX -690 Net financial expenses & income taxes1 -242 Associates & JVs2 -226 Brumadinho incurred expenses & dam decharacterization.3 -546 Others4 Free Cash Flow (recurring) 4,119 Brumadinho & Samarco6 Vale’s Conference Call: Financial Performance FCF: eliminating overhangs to pave the way for 2025 Cash flow Debt & commitments amortization and cash/liability management
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Vale’s Conference Call: Financial Performance Expanded net debt: stable q/q Expanded net debt US$ million Cash effects Accounting effects Expanded net debt target range maintained US$ 10 bn US$ 20 bn 917 462 38 Expanded net debt 3Q24 Recurring FCF One-off FCF effects Provisions adjustments (PV & FX) Swaps adjustments (mark-to- market) Debt, leases and cash adjustments (FX, others) Expanded net debt 4Q24 -817 -606 16,472 16,466
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aleda Key takeaways Delivering operational stability Highest iron ore and copper volumes since 2018 Accelerating efficiency initiatives C1 below $19 in Q4 and capex optimization Ramping up transformational projects Vargem Grande and Capanema already increasing flexibility Building the right portfolio Novo Carajás program launched, unique endowment enhancing value Healthy shareholder returns Balancing capex, growth and strong shareholder returns