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com.liferay.portal.kernel.util.DateUtil_IW@11a54903
Photo: Vale Archive
com.liferay.portal.kernel.util.DateUtil_IW@11a54903
Photo: Vale Archive

Vale released, this Wednesday, February 19th, its performance for the fourth quarter of 2024.  

  • Operational performance was solid across all business segments; all guidances met. Iron ore shipments were flat q/q and 9.1 Mt lower y/y, as a result of portfolio optimization towards higher-margin products. 
     

  • As a result, the all-in premium improved by US$ 2.9/t q/q and y/y, totaling US$ 4.6/t, with the average premium for iron ore fines reaching US$ 1.0/t in the quarter (vs. US$ -1.9/t in Q3). The average realized iron ore fines price was US$ 93/t, 3% higher q/q, while realized prices were 21% lower y/y, driven by lower benchmark prices. 

  • The C1 cash cost for iron ore fines, ex-third-party purchases, decreased by 9% q/q and 10% y/y, reaching US$ 18.8/t, the lowest since 1Q22. In 2024, C1 came in at the low end of the guidance range (US$ 21.5-23/t) at US$ 21.8/t, 2% lower y/y. The cost reduction was a result of operational stability, eĊiciency initiatives and the BRL depreciation. 

  • Copper and nickel all-in costs were US$ 1,098/t and US$ 13,881/t, respectively. The all-in cost for cooper was the lowest since 4Q20 and for nickel, since 1Q22. In 2024, all-in costs totaled US$ 2,616/t and US$ 15,420/t, within guidance. 
     

  • Proforma EBITDA increased by 9% q/q and decreased by 40% y/y, totaling USD 4.1 billion in Q4. Proforma EBITDA for 2024 was US$ 15.4 billion, 22% lower y/y, mainly reflecting lower iron ore prices. 
     

  • Capital expenditures of US$ 6.0 billion in 2024 was stable y/y. Project effciencies were identified in the portfolio, triggering the revision of the CAPEX guidance for 2025 to ~US$ 5.9 billion (vs. ~US$ 6.5 billion previously). 
     

  • Recurring free cash flow was US$ 817 million, US$ 2.251 lower y/y, largely reflecting lower EBITDA generation, and implying a recurring 10% FCF yield for the year. 

  • An additional currency hedge of US$ 3.1 billion was contracted for 2025 at a fixed rate of 6.31 BRL:USD in Q4, totaling US$ 5.9 billion for the year at 6.25 BRL:USD, covering a significant portion of the projected BRL cash outflows. 
     

  • Expanded net debt remained stable q/q, reaching US$ 16.5 billion as of December 31st, 2024. 
     

  • Approval of US$ 1.984 billion¹ in dividends and interest on capital to be paid in March 2025, implying an annualized dividend yield of 10.4%², along with the renewal of the buyback program by 18 months, of up to 120 million shares 

 

¹ US$ 1.596 billion in dividends approved on February 19th, and US$ 388 million in interest on capital approved on November 28th, 2024.  

² Considering the market cap as of December 31st, 2024, adjusted for interest on capital ex-date. 

We are pleased to report a strong operational and financial performance in 2024, underscored by the highest iron ore production since 2018 and record copper production at Salobo. Our disciplined approach to cost and operational efficiency has driven significant improvements, with our C1 at US$ 18.8/t in Q4, the lowest level since 2022. Regarding safety and dam management, we have made meaningful progress by eliminating four additional dams in 2024 and completing 57% of our dam decharacterization program. This year, we expect to remove the last dam at emergency level 3. We begin 2025 highly optimistic about our ability to meet our annual targets and advance our strategic priorities. Our robust and flexible portfolio, disciplined capital allocation approach and evolving performance culture will enable us to deliver long-term value to all our stakeholders. We are enhancing our institutional relationships and ensuring that we leave a positive impact on society and the environment.” 

Gustavo Pimenta

CEO 
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Fotógrafo: Ricardo Teles

Highlights

Iron Ore Solutions 

  • The Capanema project, which will add 15 Mtpy of iron ore to the Mariana complex, started commissioning in November. The project will produce sinter feed using the natural moisture process, reducing waste and enhancing Vale’s product portfolio flexibility. 
     

  • Vale has concluded negotiations with the US Department of Energy (DoE) Office of Clean Energy Demonstrations to develop an industrial-scale briquette plant and will commence Phase 1 of the project in Louisiana. In this phase, over US$ 3.8 million of awarded funds will be used to conduct engineering studies and community engagement throughout 2025. 

Energy Transition Metals 

  • In December, construction and commissioning of the VBME project were completed. The project’s production capacity is around 45 ktpy of nickel with another 20 ktpy of copper and 2.6 ktpy of cobalt as by-products, and the full ramp-up is expected by 2H26. 

Recent developments 

  • In February 2025, Vale has launched the Novo Carajás program. The program aims to leverage Carajás'mining potential, including mines in operation and expansions, both in iron ore and copper. It also includes a series of investments in technology, health and safety, operations maintenance, and sustainability, further boosting Vale’s positioning in the region. 
     

  • In January 2025, Vale Base Metals launched a strategic review related to the nickel operation in Thompson, in order to explore and evaluate a range of business alternatives, including the potential sale of its mining and exploration assets. As part of the review, Thompson’s business plan was revised, and an impairment loss of US$ 1.4 billion was recognized. 
     

  • An impairment of US$ 540 million related to VBME (Voisey’s Bay Mine Extension) was also recognized. 
     

  • Renegotiation of railway concession contracts. In December 2024, Vale, together with the Brazilian National Land Transportation Agency (ANTT) and the Brazilian Federal Government, through the Ministry of Transportation, set the general basis for the renegotiation of the railway concession contracts. This renegotiation resulted in the recognition of an additional provision of R$ 1.6 billion (US$ 256 million). Also in December, Vale made an advance payment of R$ 4 billion (US$ 656 million) associated with the railway concessions. 

Tailings Dams 

  • Vale completed the de-characterization of Area IX dam in December. This was the 17th structure decharacterized since 2019, completing 57% of the Upstream Dam Decharacterization Program. 

Decarbonization 

  • Vale and GreenIron have signed a Memorandum of Understanding (MoU) to collaborate on key initiatives in Brazil and Sweden for the decarbonization of the mining and metals supply chain. Both companies will develop a feasibility study for an innovative direct reduction facility in Brazil to be operated by GreenIron. The MoU also focuses on the supply of Vale’s iron ore to GreenIron’s commercial operations in Sandviken, Sweden. 
     

Brumadinho 

  • The Brumadinho Integral Reparation Agreement continues to progress, with approximately 75% of the agreed-upon commitments completed by 2024 and in accordance with the deadlines outlined in the settlement. In addition, R$ 3.8 billion has been paid in individual compensation since 2019. 

Mariana 

  • The Samarco reparation continues to progress, with R$ 45 billion disbursed and more than 448 thousand people compensated by the end of 2024. 
     

  • Definitive settlement related to the Fundão dam collapse. In October, Vale, Samarco and BHP, together with the Brazilian Federal Government, the State Governments of Minas Gerais and Espírito Santo, the Federal and State Public Prosecutors’ and Public Defenders’ Offices and other Brazilian public entities signed the definitive settlement of claims related to the Fundão dam collapse. The total financial value of the settlement was approximately R$ 170 billion, comprising past and future obligations, to serve the people, communities and the environment impacted by the dam failure. 

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