"I am pleased to present Vale's results for the first time as the company’s CEO. Before I comment on the quarter’s performance, I would like to briefly lay out what I envisage as the path forward for the company. First, we will strive to transform Vale into a more agile and efficient company, fostering innovation and a performance culture. Having said that, safety and operational excellence are non-negotiable elements of this journey. Second, our strategic efforts will be concentrated on delivering a superior portfolio, with a greater focus on customer-centricity. On iron ore, we will accelerate our high-quality product offerings, while on base metals, we aim to continue to grow, particularly on copper. Lastly, I am committed to enhancing our institutional relationships, ensuring we leave a positive impact on people and the environment."

"In the quarter, our iron ore production reached its highest levels in over five years, underscoring our continued focus on operational excellence. Our pellet production is at its peak since 2019, aligned with our strategy to deliver high-quality products. In our base metals division, copper and nickel production also showed solid progress, marked by operational improvements in Canada, with the asset review implementation already bearing fruit. We also continue to deliver on dam safety, having recently removed the Sul Superior dam from emergency Level 3. Lastly, we expect to sign the Mariana settlement very soon, aiming at a definitive resolution that will, above all, benefit the impacted people and society, through a mutually beneficial agreement for all stakeholders." commented Gustavo Pimenta, Chief Executive Officer. 

Results Highlights

• Operational and sales performance improved across all business segments. Iron ore shipments increased by 1.3 Mt (+2%) y/y, driven by an 18% rise in pellet sales due to higher production and strong demand.

• 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. The lower decline vs. the reference price is attributed to an enhanced product portfolio and positive provisional pricing adjustments.

• Proforma Adjusted EBITDA decreased by 6% q/q and 21% y/y, totaling USD 3.7 billion. Higher volumes and lower unit costs, particularly in iron ore, partly offset the impact of lower prices.

• Iron ore fines’ C1 cash cost, ex-3rd party purchases, was 17% lower q/q and 6% lower y/y, reaching US$ 20.6/t, driven mainly by: (i) fixed costs dilution due to higher production; (ii) a better production mix, with higher volumes from the Northern System where production costs are lower and (iii) continued efficiency. In September, the C1 production cost reached US$ 18.2/t, indicating a positive performance in Q4. Vale is highly confident in achieving the low-end of its 2024 C1 cash cost guidance, ex-3rd -party purchases, of US$ 21.5-23.0/t.

• Copper and nickel all-in costs were US$ 2,851/t and US$ 18,073/t, respectively. The copper all-in cost guidance is again being revised down, now to US$ 2,900 - 3,300/t. On nickel, the all-in cost guidance range of US$ 15,000-16,500/t is maintained and on track to be delivered.

• Free cash flow was US$ 179 million, US$ 947 million lower y/y, largely reflecting the decrease in EBITDA.

• The Samarco-related provision was revised to US$ 4.7 billion, an increase of US$ 1.0 billion, reflecting the most updated assessment regarding the potential settlement agreement with the Brazilian authorities, the claims related to the Samarco dam failure, and the extent to which Samarco may be able to fund any future outflows.

• Expanded net debt of US$ 16.5 billion as of September 30th, US$ 1.8 billion higher q/q, primarily due to the additional provisions related to Samarco’s dam failure.

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