"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." commented Gustavo Pimenta, Chief Executive Officer.

Results Highlights

• 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, efficiency initiatives and the BRL depreciation.

• Cooper 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 efficiencies 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 billion[1] 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.

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