• Northern System: production increased by 1.9 Mt y/y, driven by S11D’s robust performance at 22.1 Mt (+2.7 Mt y/y), making this the seventh quarter of y/y production improvements. Serra Norte’s output was slightly lower y/y (-0.5 Mt y/y), in line with the production plan. Shipments from the Ponta da Madeira port set a quarterly record since 2021, totaling 50.6 Mt, reflecting enhanced operational stability. 
   
• Southeastern System: production increased by 3.6 Mt y/y, driven by (i) enhanced performance at the Conceição 1 & 2 plants in Itabira, as a result of reduced maintenance downtime following the concentration of activities in the first semester, during the rainy season, and (ii) higher output at Brucutu, attributed to the resumption of three wet processing lines last year and the commissioning of a fourth line in September this year, with the site achieving its highest quarterly production since 2019. 
   
• Southern System: production was 0.9 Mt lower y/y, primarily due to (i) lower third-party purchases and (ii) reduced high-silica products output at the Vargem Grande complex due to market conditions. These effects were partially offset by increased production at Viga, following maintenance works in the 3Q23. In September, the commissioning of wet processing operations in the Vargem Grande 1 Project started. This will allow the Vargem Grande complex to resume approximately 15 Mtpa of iron ore production and improve the average quality by approximately 2% of contained iron. 
   
• Pellets: production was 1.2 Mt higher y/y, achieving its highest quarterly production since 2018, driven by higher pellet feed availability from the Brucutu and Itabira mines, increasing pellet production at the Tubarão site. 
   
• Iron ore sales were 1.3 Mt higher y/y, totaling 81.8 Mt, supported by 18% higher pellet sales. Considering the higher pellet production and healthy demand in the quarter, pellet sales increased to 10.1 Mt (+18% y/y), supporting overall iron ore sales, which totaled 81.8 Mt (+2% y/y). The 5.5 Mt inventory build-up was mainly due to cargos in transit along the supply chain as production seasonally increased in Q3. These inventories will be converted into sales in Q4. 
   
• The all-in premium improved by US$ 1.8/t q/q, totaling US$ 1.7/t¹, driven by higher average quality of the product portfolio. This improvement is a result of the increased availability of high-quality products, mainly from the Northern System, allowing for higher BRBF sales and the proactive decision to reduce direct sales of high-silica products, due to market conditions. 
   
• The average realized iron ore fines price was US$ 90.6/t, US$ 7.6/t lower q/q despite iron ore reference prices having decreased by US$ 12.0/t in the period. The lower decline vs. the reference price is attributed to an enhanced product portfolio and the positive eĊect from provisional pricing adjustments, given higher-than-average forward prices in the last day of the quarter. The average realized iron ore pellet price was US$ 148.2/t, US$ 9.0/t lower q/q, due to lower iron ore prices. 

​​​​​​​¹ Iron ore fines premium of US$ -1.9/t and the weighted average contribution of the pellet business of US$ 3.6/t.