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Vale released this Thursday, July 27, its financial results for the second quarter of 2023.

As business results, Vale reported proforma adjusted EBITDA from continued operations of US$ 4.1 billion in Q2, down US$ 1.4 billion y/y, mainly reflecting lower realized prices of iron ore fines and nickel. 

Free Cash Flow from Operations of US$ 0.8 billion in Q2, representing an EBITDA-to-cash conversion of 19%. 
Below you can see the main highlights, as well as the full report: 
We continue to make substantial progress on operational excellence across all businesses. In Iron Solutions we set a new production record for a second quarter at S11D, alongside solid performances from Itabira and Vargem Grande. The Torto dam license is a significant milestone, enhancing our portfolio's overall quality. Our Energy Transition Metals (ETM) business has also performed very well with the successful ramp-up of Salobo III and improved performance at Sossego. Today´s annoucement to form a strategic partnership with Manara Minerals and Engine No.1 is another major milestone in ETM´s journey to accelerate accretive growth and unlock significant long-term value for all our stakeholders. Furthermore, we delivered on our commitment and implemented GISTM for our prioritized tailings facilities. This is an important milestone in the evolution of our dam management and the safety of our operations and surrounding communities. We will continue advancing with the incorporation of the best international practices so that Vale becomes an increasingly safe and sustainable company" 

Eduardo Bartolomeo

Chief Executive Officer

Fotógrafo: Ricardo Teles


  • Capital expenditures of US$ 1.2 billion in Q2, including growth and sustaining investments, in line y/y.  
  • Gross debt and leases of US$ 13.9 billion as of June 30, 2023, US$ 1.0 billion higher q/q, resulting from a US$ 1.5 billion bond issuance and US$ 0.5 million tender offer in the quarter, as part of Vale’s liability management.  
  • Expanded Net Debt of US$ 14.7 billion as of June 30, 2023, US$ 0.3 billion higher q/q mainly driven by the US$ 1.4 billion share buyback program in the quarter and the US$ 0.8 billion in Free Cash Flow from Operations. Vale’s target leverage is US$ 10- 20 billion. 
  • Disbursement in Q2 as part of the 3rd buyback program was US$ 1.4 billion. At the end of Q2, the 3rd buyback program was 64% complete, with a disbursement of US$ 4.9 billion to repurchase approximately 320 million shares. 
  • Today, the Board of Directors approved the distribution of US$ 1.7 billion in interest on capital, scheduled to be paid in September. The amount is based on the financial results from the first half of the year, in accordance with the Shareholder Remuneration Policy.
Delivering iron solutions:  
  • The Torto dam, at the Brucutu site, has obtained its operating license and commissioning is underway. The dam, together with the tailings filtering plant, will substantially improve overall ore quality, resulting in increased availability of pellet feed to Vale’s pellets plants and an improved product mix, which will command higher price premiums.  
  • In May, several Memorandums of Understanding (“MoUs”) and land reservation agreements were signed with authorities and partners in the United Arab Emirates, Saudi Arabia, and Oman. These agreements aim to advance studies to develop industrial complexes, Mega Hubs, to produce low-carbon emission products for steelmaking.  
  • Also in May, an MoU was signed with GravitHy, a French Direct Reduction Iron (“DRI”) producer, to jointly evaluate the construction of a co-located briquetting plant in GravitHy’s DRI plant project in Fos-sur-Mer, France. The plant is expected to start-up production in 2027 with a 2 Mtpy DRI production capacity.  

Building a unique Energy Transition Metals vehicle:  
  • Signed a binding agreement with Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund, under which Manara Minerals will invest in Vale Base Metals (“VBM”), the holding entity of Vale’s Energy Transition Metals business, at an implied enterprise value of US$ 26.0 billion. Concurrently, entered into a binding agreement with the investment firm Engine No. 1 pursuant to which Engine No. 1 will make an equity investment in VBM under the same economic terms. The total consideration to be paid to VBM under both agreements is US$ 3.4 billion, for a 13% equity interest. These strategic partnerships will accelerate value generation from the unique set of assets and projects, being a key enabler of the global energy transition. 
  • Successfully achieved conformance with the Global Industry Standard on Tailings Management (GISTM) for all prioritized tailings facilities, within the industry's timeframe. As of now, the company implemented the GISTM for 48 tailings facilities, 37 of them located in Brazil and 11 in Canada, with actions plans in place. By August 2025, all 50 tailings facilities will be in conformance.  
  • De-characterization works have started at the Campo Grande dam at the Alegria mine, as well as the Grupo and Área IX dams at the Fábrica mine. With that, a total of 8 out of the remaining 18 upstream dams to be eliminated have started decharacterization works. Since 2019, significant progress has been made, with 12 out of the 30 upstream dams already eliminated, representing 40% of the overall program.  
  • The Sol do Cerrado solar energy complex, one of the largest solar parks in Latin America has reached its full capacity of 766 Megawatts. The complex, located in Minas Gerais state, will supply 16% of all energy requirements from operations in Brazil, in line with the company´s strategy to zero CO2 emissions by 2050. 

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