10/30/26
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Investors
Our third-quarter results reflect disciplined execution of our strategy and a continued focus on operational excellence. In a dynamic market environment, our portfolio flexibility, affreightment strategy, and hedging program helped protect margins and support solid cash flow generation, further strengthening our balance sheet. In iron ore, we are building a more flexible and competitive operating platform. The start-up of the Serra Sul +20 project, together with the commissioning of the Compact Crushing project, will further enhance S11D's performance and reinforce its position as a world-class asset. Combined with solid performance across our asset base, these initiatives positions us well to finish the year strongly. Vale Base Metals continues to gain momentum, with Salobo delivering record third-quarter production and both copper and nickel on track to reach the upper half of the production guidances. With the approval of the Salobo CPF project, we take another important step in our copper growth journey, leveraging our existing assets and infrastructure to grow with capital efficiency. Together, these achievements strengthen Vale's resilience and position us to create sustainable value over the long term", commented Gustavo Pimenta, CEO
Results Highlights
- Robust sales performance. Iron ore sales increased by 0.3% (0.3 Mt) y/y, despite a 6% (6 Mt) decline in production over the same period. Copper sales declined 4%, as expected, reflecting the planned Sossego SAG mill rebuild. Nickel sales increased 16.1% (6.9 kt) y/y, supported by stronger production. All 2026 production guidances reaffirmed, with copper and nickel pointing to the upper half of the ranges.
- Iron ore price realization reflecting external factors. The average realized iron ore fines price was US$ 85.1/t, down 10% q/q and y/y, due to lower reference prices and temporary adjustments related to CFR sales.
- Higher realized copper price realization. Realized copper prices increased to US$ 15.314/t (+9% q/q, +56% y/y), above the LME price variation. Realized nickel prices reached US$ 16,898/t (-6% q/q, +9% y/y), with higher premiums partly offsetting lower reference prices.
- Iron ore costs impacted by BRL and oil prices. C1 cash cost was US$ 23.1/t (+12% y/y), mainly reflecting the BRL appreciation and diesel costs, while all-in costs reached US$ 60.4/t (+21% y/y), further pressured by higher freight costs.
- Copper costs continue to improve. Copper all-in costs at US$ -175/t (US$ -1.2k/t y/y), supported by strong by-product revenues. Nickel all-in costs increased in line with expectations, up 18% y/y to US$ 14,552/t, reflecting higher planned maintenance.
- Proforma EBITDA of US$ 3.5 billion, down 20% y/y (-14% q/q), mainly driven by the decrease in iron ore fines realized prices and external cost pressures, including the BRL appreciation and higher bunker prices.
- Capital expenditures of US$ 1.3 billion, flat y/y, with full-year investments expected to be at the lower end of the US$ 5.4-5.7 billion guidance range.
- Recurring Free Cash Flow of US$ 1.4 billion, US$ 0.2 billion lower y/y, as successful hedging and working capital management partly offset lower Proforma EBITDA. Total Free Cash Flow reached US$ 2.2 billion.
- Expanded net debt of US$ 16.4 billion, US$ 0.2 billion lower q/q, driven by cash flow generation.