Vale SA Q4 FY2024 earnings call

• Safety: Lowered injury frequency rate to 1.1%, 57% of upstream dams characterized, aiming to have no dams at level 3 by 2025.
• Projects: Vargem Grande and Capanema iron ore projects started up ahead of schedule, adding 30 million tons of low-cost capacity.
• Base Metals: First ore from VBME project's second deposit, 15% acquisition of Minas-Rio, and initiation of Sohar concentration plant construction.
• Financial: Pro forma EBITDA over $4.1 billion in Q4 2024, 9% QoQ growth due to portfolio optimization and cost efficiency.

Iron Ore: Production reached 328 million tons, the highest since 2018. In Q4 2024, C1 cash costs were $18.8 per ton, the lowest since Q1 2022. Realized iron ore premiums improved due to portfolio optimization. Base Metals: Copper production was the highest since 2020, driven by Salobo. Nickel achieved a milestone with the VBME project completion. All-in costs in copper and nickel decreased year-on-year.

• Production: Expecting similar production to 2024 in 2025 with flexibility on value over volume.
• CapEx: Reduced CapEx guidance for 2025 to $5.9 billion.
• Dividends: Board approved $2 billion in dividends and a buyback program for up to 3% of outstanding shares.

• Market Cyclicality: Cost competitiveness is key to protecting against market cycles.
• Regulatory/Operational: Uncertainties related to municipal decisions in Brazil regarding Mariana accident settlement.

Q: Daniel Sasson asked about inventory levels and sales mix.

A: Gustavo Pimenta and Rogério Nogueira responded that inventory levels may increase due to value-focused commercial strategy, with focus on maximizing value through flexible portfolio.

Q: Carlos De Alba asked about Base Metals progress and Thompson review.

A: Shaun Usmar discussed Base Metals progress in cost and production, and Gustavo Pimenta commented on Thompson review.

Q: Caio Ribeiro asked about Thompson review and China's steel supply-side reforms.

A: Shaun Usmar talked about Thompson review and Rogério Nogueira commented on China's steel supply-side reforms impact on iron ore.

Q: Leonardo Correa asked about extraordinary dividends and M&A.

A: Marcelo Bacci and Gustavo Pimenta responded on dividend policy and M&A evaluation.

Q: Rafael Barcellos asked about company evolution and iron ore inventory strategy.

A: Gustavo Pimenta and Rogério Nogueira discussed company evolution and inventory strategy focused on cash flow maximization.

Q: Marcio Farid asked about institutional relationships and buyback.

A: Gustavo Pimenta and Marcelo Bacci commented on institutional relationships and buyback approach.

Q: Myles Allsop asked about buyback vs special dividend and base metals permits.

A: Marcelo Bacci and Shaun Usmar responded on buyback and base metals permit progress.

Q: Timna Tanners asked about Q1 volumes, costs, and cost-lowering measures.

A: Carlos Medeiros and Marcelo Bacci discussed Q1 performance and cost optimization efforts.

Q: Liam Fitzpatrick asked about buyback flexibility.

A: Marcelo Bacci responded on buyback flexibility.

Q: Marina Calero asked about CapEx drivers and future efficiencies.

A: Marcelo Bacci commented on CapEx drivers and future efficiency plans.

Q: Yuri Pereira asked about CapEx revision and financial debt.

A: Marcelo Bacci responded on CapEx revision and financial debt monitoring