Business

Vale announced on Wednesday, July 31th, its financial result for the second quarter of 2019. The company remains committed to increase the safety of people and to repair the damage caused by the breach of Brumadinho dam.

Eduardo Bartolomeo, Chief Executive Officer, commented: "As we progress towards full and effective reparation, 2Q19 has been a transitional quarter for the business”. He also complemented: “Our response (to dam´s breach) started to bear fruit to ensure the safety of people and of the company’s operations, as well as to reduce uncertainties and to deliver sustainable results through the supply of a high-quality product portfolio, which will already be reflected in the next quarter".

Repair

Vale signed 15 agreements with local, state and federal entities to provide a stable legal framework for reparation. The company became part of the Federal Government's “Alliance for Brumadinho” program, that will leave a legacy for the area, and advanced with the Preliminary Agreements for indemnifications with the authorities. We know there is still a lot to be done, and we are committed to do it.

On our website, we report the actions taken so far: www.vale.com/repairoverview

On 2Q19, the Ferrous Minerals EBITDA totaled US$ 4.2 billion, US$ 621 million higher than 1Q19.

Base Metals EBITDA totaled US$ 465 million in 2Q19, US$ 40 million lower than 1Q19, mainly as a result of lower copper prices, as well as lower VNC (Vale at New Caledonia) production resulting in lower fixed cost dilution.

Our cash generation of US$ 2.2 billion in 2Q19 enabled us to resume our trajectory of debt reduction and strengthened our balance sheet further. Consequently, our net debt decreased from US$ 12.0 billion in 1Q19 to US$ 9.7 billion in 2Q19.