Results
In 3T20, proforma adjusted EBITDA reached US$ 6.224 billion, US$ 2.638 billion higher than in 2Q20
and the highest since 4Q13. While EBITDA improved in all Vale’s business, the better result was
mainly driven by the 26% increase of iron ore realized prices and 20% higher iron ore sales volumes
in 3Q20. Adjusted EBITDA, after US$ 129 million of expenses related to Brumadinho and COVID-19-
related donations to support initiatives to fight the pandemic, totaled US$ 6.095 billion.
Ferrous Minerals business segment achieved in 3Q20 its largest adjusted EBITDA level since 4Q13, US$
5.856 billion, 67% higher than in 2Q20. The adjusted EBITDA per ton for Ferrous Minerals, excluding
Manganese and Ferroalloys, totaled US$ 79.0/t, an increase of US$ 22.4/t when compared to 2Q20.
Vale had a Free Cash Flow from Operations of US$ 3,751 million in 3Q20, mainly driven by the strong
EBITDA and small increase in working capital versus production and shipments acceleration. Working
capital increase of US$ 288 million was mostly driven by a combined effect of higher inventories
across the iron ore supply chain and strong accrual sales in the end of the quarter at a higher
price than sales collected during the quarter, both as a consequence of the logistics lead time
between production and CFR sales.