Vale S.A. Q4 FY2025 earnings call

Safety: 21% reduction in high potential incidents. Tailings dams: Eliminated all emergency level 3 dams by 2025, expect 86% reduction by end of 2026. Reparations: 81% execution of Brumadinho agreement, disbursed BRL 73 billion under Mariana agreement. Operational: Exceeded production guidances across businesses, delivered cost reductions. Launched Novo Carajás program. Capital allocation: Robust, with new projects advancing, CapEx optimized to below $6 billion, dividends announced.

Iron ore: Production reached 336 million tons in 2025, 3% higher y-o-y, the highest since 2018. All-in costs were $54 per ton, a $2 per ton y-o-y reduction. Vale Base Metals: Copper production was 382,000 tons, 10% higher y-o-y; nickel production was 177,000 tons, 11% higher y-o-y. Copper all-in costs were negative, nickel all-in costs declined 35% y-o-y.

2026 C1 cash costs expected to range between $20 and $21.5 per ton. Vale Base Metals to continue reducing operating costs. 2026 CapEx expected $5.4 billion to $5.7 billion. Dividends and interest on capital announced, with potential for more shareholder returns based on cash generation.

Potential impact of events like Fabrica and Viga overflow on operations; need to upgrade safety parameters. Impact of Indonesian license changes on nickel market supply and price.

Q: First question for Shaun on copper and nickel costs and guidance.

A: Shaun discussed cost improvements, ongoing focus on costs and volumes, well on track with guidance.

Q: Second question for Gustavo on Base Metals value.

A: Gustavo talked about market recognition of Base Metals value, ongoing growth projects.

Q: Question for Rogério on iron ore price realization.

A: Rogério explained price realization factors, focus on contribution margin.

Q: Question for Shaun on nickel cost reduction.

A: Shaun discussed asset integrity, reliability, and operational goals.

Q: Question on Indonesian nickel licenses.

A: Shaun was cautiously optimistic.

Q: Question on Fabrica, Viga and restricted AUM.

A: Gustavo and Marcelo discussed the events and restricted AUM status.

Q: Question on iron ore commercial strategy.

A: Rogério talked about CMRG and benchmark pricing.

Q: Question on iron ore grade and CMRG.

A: Rogério and Shaun discussed grade impact and CMRG negotiations.

Q: Question on iron ore business environment.

A: Rogério and Shaun discussed iron ore market fundamentals and copper growth.

Q: Question on capital allocation and returning cash to shareholders.

A: Marcelo talked about potential buybacks and dividends.

Q: Question on mid-grade volume and M&A.

A: Rogério and Gustavo discussed mid-grade strategy and M&A focus