Vale employee smiling in green landscape. She is wearing a green Vale
uniform, goggles, helmet and ear plugs. Visual wave artifact Vale
A Vale employee, in uniform and protective gear, smiles for a photograph. She is in an operational environment. A Vale employee, in uniform and protective gear, smiles for a photograph. She is in an operational environment.

Vale released this Wednesday, April 26, its financial results for the first quarter of 2023.

As business results, Vale reported proforma adjusted EBITDA from continued operations of US$ 3.7 billion in Q1, down US$ 2.7 billion y/y, mainly reflecting lower realized prices of iron ore fines and pellets, lower sales of iron ore fines and higher costs.

Free Cash Flow from Operations of US$ 2.3 billion, representing 62% EBITDA to cash-conversion versus 19% in 1Q22, largely explained by the strong cash collection from 4Q22 sales and seasonally higher income tax paid in 1Q22.

Below you can see the main highlights, as well as the full report:
Our Q1 results showed stronger iron ore production, supported by S11D improved performance, thanks to our truckless system improved reliability and the new crushers. Despite the weather-related loading restrictions that impacted our sales, we remain confident in our ability to achieve our 2023 goals. Our Energy Transition Metals results were solid, with continued ramp up at Salobo III, resulting in a strong performance in copper. In Sudbury, our mines had their highest production rates since 2017. While the mining industry faces inflationary pressure, we remain focused on cost efficiency and productivity gains. We are also making progress in managing our tailings dams. In April, two geotechnical structures received their declaration of stability, which led to removing their emergency level. Since 2022, we have successfully revoked the emergency level protocols for 10 structures. We remain strongly committed to building a safer and more reliable company while delivering value to our shareholders.”

Eduardo Bartolomeo

Chief Executive Officer

Fotógrafo: Ricardo Teles


  • Capital expenditures of US$ 1.1 billion in Q1, including growth and sustaining investments, in line y/y. 
  • Gross debt and leases of US$ 13.0 billion as of March 31, 2023, slightly higher q/q, mainly due to US$ 300 million debt issued as part of Vale’s liability management. 
  • Expanded Net Debt of US$ 14.4 billion as of March 31, 2023, in line q/q and within the targeted leverage of US$ 10- 20 billion.
  • US$ 1.8 billion in dividends paid in March 2023.
  • Disbursement for the 3rd buyback program in quarter was US$ 763 million. Overall, the 3rd buyback program is 47% complete, with a disbursement of US$ 3.7 billion to repurchase 233.7 million shares¹.
¹Related to the April 2022 3rd buyback program for a total of 500 million shares.
  • Progressing in the electric vehicles value chain: 

    -    PTVI and China’s Zhejiang Huayou Cobalt Co. signed a definitive agreement with global automaker Ford Motor Co. for the development of the Pomalaa project in Indonesia. The three-party collaboration enables to advance more sustainable nickel production in Indonesia and help make electric vehicle batteries more affordable. 

    -    In February, we inaugurated the construction of the Morowali project, an integrated nickel mining and processing plant (RKEF) powered by natural gas, with an expected nickel capacity of 73 ktpy, to start-up in 2025. The project is a JV between PTVI, which will own 100% of the mine and two Chinese partners, who will hold a 51% stake in the RKEF. 
  • Delivering iron solutions: 

    -    Shipment of the first briquettes cargo for international tests in blast furnace in April. The cargo was shipped from the Port of Açu for testing at a client’s blast furnace in Europe. The green briquette is an innovative product, which reduces CO2 emissions in steelmaking by 10%. 

    -    Emergency plan for Torto dam was approved in March, and our expectation is to obtain the operating license by the end of Q2. The dam will enable us to increase the overall quality and volume of pellets, improving mix and average price premium.
  • Two geotechnical structures received declaration of stability condition in April, having their emergency level condition removed. Since the beginning of 2022, 10 structures had emergency level protocols revoked. 
  • Vale’s ESG Risk Rating, assessed by Sustainalytics, was upgraded from 39.1 to 35.3, indicating further recognition of our efforts in building a safer and more sustainable company. 
  • Agreement with United States Securities and Exchange Commission (“SEC”) to terminate a lawsuit filed by the SEC against the Company was signed in March 2023. Vale will make payments totaling US$ 55.9 million to the SEC.

Quick links