Vale SA

04/26/2021 | Press release | Distributed by Public on 04/27/2021 01:36

Vale's Performance in 1Q21 USD - xls (EN)

Vale's Performance in 1Q21 USD - xls

SFI

Selected financial indicators
US$ million 1Q21 4Q20 1Q20
Net operating revenues 12.645 14.769 6.969
Total costs and other expenses 4.989 6.607 4.818
Expenses related to Brumadinho 115 4.854 159
Adjusted EBIT 7.619 3.402 2.067
Adjusted EBIT margin (%) 0.6 0.23 0.3
Adjusted EBITDA 8.35 4.24 2.882
Adjusted EBITDA margin (%) 0.66 0.29 0.41
Proforma adjusted EBITDA¹ 8.467 9.103 3.041
Iron ore - 62% Fe reference price 166.9 133.7 89.0
Net income (loss) 5.546 739 239
Net debt ² -2.136 -898 4.808
Capital expenditures³ 1.009 1.444 1.124
¹ Excluding expenses related to Brumadinho and COVID-19.
² Does not include leases (IFRS 16).
³ Does not includes Boston Metal investment of US$ 6 million
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EBITDA

Adjusted EBITDA
US$ million 1Q21 4Q20 1Q20
Net operating revenues 12.645 14.769 6.969
COGS -4.627 -5.733 -4.278
SG&A -105 -188 -115
Research and development -100 -153 -95
Pre-operating and stoppage expenses -145 -193 -268
Expenses related to Brumadinho -115 -4.854 -159
Expenses related to COVID-19 donations -2 -9 -
Other operational expenses -10 -331 -62
Dividends and interests on associates and JVs 78 94 75
Adjusted EBIT 7.619 3.402 2.067
Depreciation, amortization & depletion 731 838 815
Adjusted EBITDA 8.35 4.24 2.882
Proforma adjusted EBITDA¹ 8.467 9.103 3.041
¹ Excluding expenses related to Brumadinho and COVID-19 donations.
Adjusted EBITDA by business area¹
US$ million 1Q21 4Q20 1Q20
Ferrous Minerals 7.811 8.8 2.847
Base Metals 1.011 1.171 556
Coal -159 -291 -158
Others -196 -577 -204
Brumadinho expenses -115 -4.854 -159
Expenses related to COVID-19 donations -2 -9 -
Total 8.35 4.24 2.882
1 VNC results are reported in Others segment Information and previous quarters Base Metals results adjusted accordingly.
Impact of Brumadinho provisions and expenses since 2019
US$ million Provisions balance EBITDA impact Payments PV & FX adjust Provisions balance
31dec20 44286
Decharacterization 2.289 - -84 -243 1.962
Global Settlement 3.99 - -12 -437 3.541
Other reparation provisions1 585 - -58 -54 473
Total Provisions 6.864 - -154 -596734 5.976
Incurred expenses -115 -115
Total 115 -269
¹ Includes Individual, labor and emergency indemnifications and tailing removal and containment works
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REVENUES

Net operating revenue by business area¹
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 10.505 83.1 12.203 82.6 5.296 76.0
Iron ore fines 9.154 72.4 10.765 72.9 4.311 61.9
ROM 24 0.2 6 0.0 6 0.1
Pellets 1.208 9.6 1.295 8.8 852 12.2
Manganese ore 28 0.2 40 0.3 23 0.3
Ferroalloys 18 0.1 20 0.1 23 0.3
Others 73 0.6 77 0.5 81 1.2
Base Metals 1.988 15.7 2.27 15.4 1.339 19.2
Nickel 846 6.7 1.028 7.0 564 8.1
Copper 670 5.3 670 4.5 350 5.0
PGMs 183 1.4 178 1.2 210 3.0
Gold as by-product 135 1.1 231 1.6 179 2.6
Silver as by-product 8 0.1 15 0.1 12 0.2
Cobalt 19 0.2 19 0.1 17 0.2
Others 127 1.0 129 0.9 7 0.1
Coal 92 0.7 128 0.9 148 2.1
Metallurgical coal 58 0.5 91 0.6 94 1.3
Thermal coal 34 0.3 37 0.3 54 0.8
Others 60 0.5 168 1.1 186 2.7
Total 12.645 100.0 14.769 100.0 6.969 100.0
1 VNC results are reported in Others segment Information and previous quarters Base Metals results adjusted accordingly.
Net operating revenue by destination
US$ million 1Q21 % 4Q20 % 1Q20 %
North America 481 3.8 302 2.0 494 7.1 1277
USA 383 3.0 297 2.0 289 4.1
Canada 98 0.8 5 0.0 204 2.9
Mexico - - - - 1 0.0
South America 1.353 10.7 1.045 7.1 819 11.8
Brazil 1.134 9.0 938 6.4 725 10.4
Others 219 1.7 107 0.7 94 1.3
Asia 8.572 67.8 11.105 75.2 4.291 61.6 23.968
China 6.966 55.1 9.208 62.3 3.196 45.9
Japan 623 4.9 775 5.2 484 6.9
South Korea 356 2.8 477 3.2 240 3.4
Others 627 5.0 645 4.4 371 5.3
Europe 1.95 15.4 1.815 12.3 1.087 15.6
Germany 635 5.0 498 3.4 376 5.4
Italy 144 1.1 105 0.7 58 0.8
Others 1.171 9.3 1.212 8.2 653 9.4
Middle East 71 0.6 348 2.4 108 1.5
Rest of the World 218 1.7 154 1.0 170 2.4
Total 12.645 100.0 14.769 100.0 6.969 100.0
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COGS SEGMENT

COGS by business segment¹
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 2.922 63.2 3.664 63.9 2.569 60.1
Base Metals 1.188 25.7 1.371 23.9 999 23.4
Coal 329 7.1 400 7.0 393 9.2
Others 188 4.1 298 5.2 317 7.4
Total COGS 4.627 100.0 5.733 100.0 4.278 100.0
Depreciation 688 791 729
COGS2, ex-depreciation 3.939 4.942 3.549
1 VNC results are reported in Others segment Information and previous quarters Base Metals results adjusted accordingly.
2 COGS currency exposure in 1Q21 was as follows: 52% USD, 40% BRL, 7.5% CAD and 0.5% Other currencies.
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EXPENSES

Operating expenses
US$ million 1Q21 4Q20 1Q20
SG&A ex-depreciation 96 179 98
SG&A 105 188 115
Administrative 87 158 98
Personnel 47 87 47
Services 17 35 18
Depreciation 9 9 17
Others 14 27 16
Selling 18 30 17
R&D 100 153 95
Pre-operating and stoppage expenses 145 193 268
Depreciation 34 38 69
Expenses related to Brumadinho 115 4.854 159
Provisions - 4.726 -
Incurred expenses 115 128 159
Expenses related to COVID-19 donations 2 9 -
Other operating expenses 10 331 62
Total operating expenses 477 5.728 699
Depreciation 43 47 86
Operating expenses ex-depreciation 434 5.681 613
Pre-operating and stoppage expenses break-down
US$ million 4Q20 3Q20 4Q19
Pre-operating and stoppage expenses 193 188 314
Depreciation 38 39 75
Pre-operating and stoppage expenses, ex-depreciation 155 149 239
Brumadinho - stoppage expenses 104 111 182
Itabira Complex (Cauê, Conceição and others) 0 0 0
Minas Centrais Complex (Brucutu and others) 28 22 11
Mariana Complex (Alegria, Timbopeba and others) 4 4 29
Paraopeba Complex (Mutuca, Fábrica¹ and others) 42 52 57
Vargem Grande Complex (Vargem Grande¹, Pico and others) 30 33 79
Others Brumadinho 0 0 6
Tubarão pellet plants 7 7 8
Onça Puma 0 0 20
Voisey's Bay 0 0 0
Others 44 31 29
¹ Including pelletizing plants.
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PRE-OPER. EXPENSES

Pre-operating and stoppage expenses break-down
US$ million 1Q21 4Q20 1Q20
Pre-operating and stoppage expenses 145 193 268
Depreciation 34 38 69
Pre-operating and stoppage expenses, ex-depreciation 111 155 199
Brumadinho - stoppage expenses 85 104 163
Itabira Complex (Cauê, Conceição and others) 0 0 6
Minas Centrais Complex (Brucutu and others) 22 28 26
Mariana Complex (Alegria, Timbopeba and others) 3 4 19
Paraopeba Complex (Mutuca, Fábrica¹ and others) 35 42 55
Vargem Grande Complex (Vargem Grande¹, Pico and others) 25 30 57
Others Brumadinho 0 0 0
Tubarão pellet plants 7 7 15
Onça Puma 0 0 0
Voisey's Bay 0 0 0
Others 19 44 21
¹ Including pelletizing plants.

FINANC. RESULTS

Financial results
US$ million 1Q21 4Q20 1Q20
Financial expenses -1.386 -958 -525
Gross interest -207 -204 -214
Capitalization of interest 16 13 32
Shareholder debentures¹ -983 -732 -49
Others -205 -27 -269
Financial expenses (REFIS) -7 -8 -25
Financial income 74 64 107
Derivatives² -439 447 -1.384
Currency and interest rate swaps -482 325 -1.091
Others (commodities, etc) 43 122 -293
Foreign Exchange 1.452 -148 -464
Net foreign exchange gain (losses) 320 -148 -464
Reclassification of cumulative translation adjustment on VNC sale 1.132 - -
Monetary variation 222 -86 -19
Financial result, net -77 -681 -2.285
¹ In 1Q21, there wasn't remuneration on shareholder debentures.
² The cash effect of the derivatives was a loss of US$ 199 million in 1Q21.

Capex1

Project Execution and Sustaining by business area
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 608 60.3 763 52.8 627 55.8
Base Metals 359 35.6 566 39.2 352 31.3
Coal 29 2.9 65 4.5 80 7.1
Energy and others 13 1.3 50 3.5 65 5.8
Total 1.009 100.0 1.444 100.0 1.124 100.0
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Capex2

Project execution by business area
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 82 53.9 69 47.9 91 62.8
Base Metals 68 44.7 55 38.2 52 35.9
Energy and others 2 1.3 20 13.9 2 1.4
Total 152 100.0 144 100.0 145 100.0
Capital projects progress indicator³
Projects Capacity Estimated Executed capex Estimated capex Physical progress (%)
(per year) start-up1 (US$ million) (US$ million)
1Q21 Total 2021 Total
Ferrous Minerals Project
Northern System 240 Mtpy 10 Mt 2H22 55 236 229 772 70%1
Capanema 18 Mt2 2H23 - - 47 495 0.01
Serra Sul 120 Mtpy3 20 Mt 1H24 4 4 168 1.502 0
Base Metals Project
Salobo III 30-40 kt 1H22 63 410 262 816 0.73
1 Considering mine-plant project front physical progress.
2 Capanema project adds 14 Mtpy capacity in Timbopeba site expedition in its first years.
3 The project consists of increasing the S11D mine-plant capacity by 20 Mtpy.
Sustaining capex by business area
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 526 61.4 694 53.4 536 54.7
Base Metals 291 34.0 511 39.3 300 30.6
Nickel 266 31.0 465 35.8 238 24.3
Copper 25 2.9 46 3.5 62 6.3
Coal 29 3.4 65 5.0 80 8.2
Energy and others 11 1.2 30 2.3 63 6.4
Total 857 100.0 1.3 100.0 979 100.0
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Capex3

Sustaining capex by type 1Q21
US$ million Ferrous Minerals Base Metals Coal Energy and others TOTAL
Enhancement of operations 218 146 23 1 388
Replacement projects 34 110 - - 144
Filtration and dry stacking projects 128 - - - 128
Dam management 12 6 1 - 19
Other investments in dams and waste dumps 17 3 - - 20
Health and Safety 55 16 3 - 74
Social investments and environmental protection 20 3 1 - 24
Administrative & Others 42 7 1 9 59
Total 526 291 29 11 857
Replacement projects progress indicator
Projects Capacity Estimated Executed capex Estimated capex Physical progress (%)
(per year) start-up (US$ million) (US$ million)
1Q21 Total 2021 Total
Gelado 9.7 Mt 1H22 25 200 100 428 0.79
Voisey's Bay Mine Extension 45 kt 1H21 107 1.015 449 1.694 0.62
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DEBT

Debt indicators
US$ million 1Q21 4Q20 1Q20
Gross debt ¹ 12.176 13.36 17.075
Cash, cash equivalents and short-term investments 14.312 14.258 12.267
Net debt ¹ -2.136 -898 4.808
Leases (IFRS 16) 1.631 1.667 1.694
Currency swaps² 1.077 883 971
Refis 2.432 2.744 2.964
Brumadinho provisions 5.976 6.864 3.975
Samarco & Renova Foundation provisions 1.732 2.074 1.274
Expanded net debt 10.712 13.334 15.686
Total debt / adjusted LTM EBITDA (x) 0.6 0.8 1.2
Net debt / adjusted LTM EBITDA (x) (0.1) (0.1) 0.3
Adjusted LTM EBITDA / LTM gross interest (x) 27.2 20.3 14.8
¹ Does not include leases (IFRS 16).
² Includes interest rate swaps.
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INFO SEGMENT

Segment information 1Q21
Expenses
US$ million Net operating revenues Cost¹ SG&A and others¹ R&D¹ Pre operating & stoppage¹ Dividends and interest received from associates and JVs Adjusted EBITDA
Ferrous Minerals 10.505 -2.559 8 -34 -109 - 7.811
Iron ore fines 9.154 -2.087 -22 -33 -92 - 6.92
ROM 24 - - - - - 24
Pellets 1.208 -383 29 -1 -13 - 840
Others ferrous 73 -66 2 - - - 9
Mn & Alloys 46 -23 -1 - -4 - 18
Base Metals2 1.988 -937 -10 -29 -1 - 1.011
Nickel3 1.434 -771 -10 -11 - - 642
Copper4 554 -166 - -18 -1 - 369
Coal 92 -329 2 -2 - 78 -159
Others 60 -114 -106 -35 -1 - -196
Brumadinho impact - - -115 - - - -115
COVID-19 donations - - -2 - - - -2
Total 12.645 -3.939 -223 -100 -111 78 8.35
¹ Excluding depreciation, depletion and amortization.
2 VNC results are reported in Others segment Information
3 Including copper and by-products from our nickel operations.
4 Including by-products from our copper operations.
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FERROUS MINERALS

Iron ore fines and pellets quality premium
US$/t 1Q21 4Q20 1Q20
Iron ore fines quality premium 6.9 3.2 4.6
Pellets weighted average contribution 1.5 1.1 0.6
Iron ore fines and pellets total quality premium 8.3 4.3 5.2
Share of premium products¹ (%) 0.89 0.9 0.87
¹ Composed of pellets, Carajás (IOCJ), Brazilian Blend Fines (BRBF) and pellet feed.
Volume sold by destination - Iron ore and pellets
'000 metric tons 1Q21 4Q20 1Q20
Americas 9.261 8.543 7.986
Brazil 7.099 7.126 6.558
Others 2.162 1.417 1.428
Asia 50.525 75.848 43.119
China 40.798 63.933 34.239
Japan 4.422 6.272 4.355
Others 5.305 5.643 4.525
Europe 4.622 4.048 6.069
Germany 1.087 505 2.5
France 783 376 994
Others 2.752 3.167 2.575
Middle East 276 2.061 707
Rest of the World 885 811 1.086
Total 65.569 91.311 58.967
Net operating revenue by product
US$ million 1Q21 4Q20 1Q20
Iron ore fines 9.154 10.765 4.311
ROM 24 6 6
Pellets 1.208 1.295 852
Manganese & Ferroalloys 46 60 46
Others 73 77 81
Total 10.505 12.203 5.296
Average prices
US$/ metric ton 1Q21 4Q20 1Q20
Iron ore - Metal Bulletin 65% index 191.2 145.9 104.3
Iron ore - Metal Bulletin 62% low alumina index 167.9 133.7 91.0
Iron ore - 62% Fe reference price 166.9 133.7 89.0
Provisional price at the end of the quarter 159.9 157.6 82.6
Iron ore fines Vale CFR reference (dmt) 171.1 143.4 93.5
Iron ore fines Vale CFR/FOB realized price 155.5 130.7 83.8
Pellets CFR/FOB (wmt) 192.6 152.6 116.6
Manganese ore 109.7 87.5 107.4
Ferroalloys 1,158.6 1,027.2 870.7
Volume sold
'000 metric tons 1Q21 4Q20 1Q20
Iron ore fines 58.872 82.391 51.445
ROM 426 434 211
Pellets 6.271 8.486 7.311
Manganese ore 258 461 219
Ferroalloys 14 15 27
Selected financial indicators - Ferrous Minerals
US$ million 1Q21 4Q20 1Q20
Net Revenues 10.505 12.203 5.296
Costs¹ -2.559 -3.237 -2.215
Expenses¹ 8 -50 -14
Pre-operating and stoppage expenses¹ -109 -150 -195
R&D expenses -34 -52 -25
Dividends and interests on associates and JVs - 86 -
Adjusted EBITDA 7.811 8.8 2.847
Depreciation and amortization -397 -465 -422
Adjusted EBIT 7.414 8.335 2.425
Adjusted EBIT margin (%) 70.6 68.3 45.8
¹ Net of depreciation and amortization
Selected financial indicators - Iron ore fines
US$ million 1Q21 4Q20 1Q20
Adjusted EBITDA (US$ million) 6.92 7.881 2.411
Volume Sold (Mt) 58.9 82.4 51.4
Adjusted EBITDA (US$/t) 118 96 47
Selected financial indicators - Pellets
US$ million 1Q21 4Q20 1Q20
Adjusted EBITDA (US$ million) 840 894 424
Volume Sold (Mt) 6.3 8.5 7.3
Adjusted EBITDA (US$/t) 134 105 58
Selected financial indicators - Ferrous ex Manganese and Ferroalloys
US$ million 1Q21 4Q20 1Q20
Adjusted EBITDA (US$ million) 7.793 8.791 2.851
Volume Sold (Mt)¹ 65.6 91.3 59.0
Adjusted EBITDA (US$/t) 119 96 48
¹ Volume including iron ore fines, pellets and ROM.
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IO_UNIT COST

Iron ore fines cash cost and freight
1Q21 4Q20 1Q20
Costs (US$ million)
Vale's iron ore fines C1 cash cost (A) 1.029 1.26 832
Third-party purchase costs¹ (B) 198 271 91
Vale's C1 cash cost ex-third-party volumes (C = A - B) 832 989 741
Sales volumes (Mt)
Volume sold (ex-ROM) (D) 58.9 82.4 51.4
Volume sold from third-party purchases (E) 2.8 4.5 2.0
Volume sold from own operations (F = D - E) 56.1 77.9 49.4
Iron ore fines cash cost (ex-ROM, ex-royalties), FOB (US$ /t)
Vale's C1 cash cost ex-third-party purchase cost (C/F) 14.8 12.7 15.0
Average third-party purchase C1 cash cost (B/E) 70.8 60.8 45.6
Vale's iron ore cash cost (A/D) 17.5 15.3 16.2
Freight
Maritime freight costs (G) 747 1.054 646
% of CFR sales (H) 0.8 0.85 0.73
Volume CFR (Mt) (I = D x H) 47.3 69.7 37.7
Vale's iron ore unit freight cost (US$/t) (G/I) 15.8 15.1 17.1
¹ Includes logistics costs related to third-party purchases.
Iron ore and pellets cash break-even landed in China¹
US$/t 1Q21 4Q20 1Q20
Vale's C1 cash cost ex-third-party purchase cost 14.8 12.7 15.0
Third party purchases cost adjustments 2.7 2.6 1.2
Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t) 17.5 15.3 16.2
Iron ore fines freight cost (ex-bunker oil hedge) 15.8 15.1 17.1
Iron ore fines distribution cost 1.3 1.1 1.1
Iron ore fines stoppage expenses² related to Brumadinho 1.3 1.1 3.0
Iron ore fines expenses² & royalties 5.2 4.7 4.1
Iron ore fines moisture adjustment 3.5 3.3 3.6
Iron ore fines quality adjustment (6.9) (3.2) (4.6)
Iron ore fines EBITDA break-even (US$/dmt) 37.7 37.4 40.5
Iron ore fines pellet adjustment (1.5) (1.1) (0.6)
Iron ore fines and pellets EBITDA break-even (US$/dmt) 36.2 36.3 39.9
Iron ore fines sustaining investments 8.4 7.9 9.4
Iron ore fines and pellets cash break-even landed in China (US$/dmt) 44.6 44.2 49.3
¹ Measured by unit cost + expenses + sustaining investment adjusted for quality
² Net of depreciation and includes dividends received
Expenses - iron ore fines
US$ millions 1Q21 4Q20 1Q20
Selling 11 14 11
R&D 33 48 23
Pre-operating and stoppage expenses 92 122 169
Brumadinho stoppage expenses 78 93 153
Others 14 29 16
Other expenses 11 38 14

COGS BUSINESS QUARTER

Iron ore cogs 4Q20 vs 1Q21
Variance drivers
US$ million 4Q20 Volume Exchange rate Others Total variation 1Q21
C1 cash costs 1.26 -353 -5 127 -231 1.029
Freight 1.054 -339 - 32 -307 747
Distribution costs 87 -25 - 14 -11 76
Royalties & others 284 -81 - 32 -49 235
Total costs before depreciation and amortization 2.685 -798 -5 205 -598 2.087
Depreciation 304 -86 -4 41 -49 255
Total 2.989 -884 -9 246 -647 2.342
Nickel cogs 4Q20 vs 1Q21
Variance drivers
US$ million 4Q20 Volume Exchange rate Others Total variation 1Q21
Nickel operations¹ 884 -121 17 -9 -113 771
Depreciation 240 -35 5 10 -20 220
Total 1.124 -156 22 1 -133 991
¹ Includes costs associated with tradings activities of US$ 121 million in 4Q20 and 1Q21
Copper cogs 4Q20 vs 1Q21
Variance drivers
US$ million 4Q20 Volume Exchange rate Others Total variation 1Q21
Copper operations 212 -68 -2 24 -46 166
Depreciation 35 -11 - 7 -4 31
Total 247 -79 -2 31 -50 197
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PELLETS-EBITDA

Pellets - EBITDA
1Q21 4Q20
US$ million US$/wmt US$ million US$/wmt
Net revenues / Realized price 1.208 192.6 1.295 152.6
Dividends received (Leased pelletizing plants) - - 63 7.4
Cash costs (Iron ore, leasing, freight, overhead, energy and other) -383 (61.1) -441 (52.0)
Pre-operational & stoppage expenses -13 (2.1) -18 (2.1)
Expenses (Selling, R&D and other) 28 4.5 -5 (0.6)
EBITDA 840 134.0 894 105.3
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BASE METALS

Base Metals EBITDA overview 1Q21
US$ million North Atlantic PTVI Site Onça Puma Sossego Salobo Others Total Base Metals
Net Revenues 1.127 207 99 164 390 1 1.988
Costs -604 -116 -46 -61 -105 -5 -937
Selling and other expenses -4 -1 - - - -5 -10
Pre-operating and stoppage expenses - - - - -1 - -1
R&D -10 -1 - -2 - -16 -29
EBITDA 509 89 53 101 284 -25 1.011
Average prices
US$/ metric ton 1Q21 4Q20 1Q20
Nickel - LME 17.57 15.93 12.723
Copper - LME 8.504 7.166 5.637
Nickel - realized prices 17.63 17.387 15.38
Copper - realized prices¹ 9.493 7.133 3.858
Gold (US$/oz) 1.781 1.895 1.636
Silver (US$/oz) 24.58 29.90 15.81
Cobalt (US$/t) 44.834 56.097 33.58
¹Considers Salobo and Sossego operations.
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NICKEL

Nickel operations - EBITDA by operation
US$ million 1Q21 4Q20 1Q20
North Atlantic operation¹ 509 485 289
PTVI 89 74 55
Onça Puma 53 50 -
Others² -9 117 52
Total 642 726 396
¹ Includes the operations in Canada and in the United Kingdom.
² Includes the PTVI and VNC off-takes, intercompany sales eliminations, purchase of finished nickel and trading activities. Hedge results have been relocated to each nickel business operation.
Net operating revenue by product - Nickel operations
US$ million 1Q21 4Q20 1Q20
Nickel 846 1.028 564
Copper 239 195 124
Gold as by-product 16 30 25
Silver as by-product 4 9 9
PGMs 183 178 210
Cobalt 19 19 17
Others¹ 127 129 6
Total 1.434 1.588 955
¹ Includes US$ 121 million in 1Q21 and US$ 122 million in 4Q20 of revenues associated with trading activities
Volume sold - Nickel operations
'000 metric tons 1Q21 4Q20 1Q20
Nickel¹ 48 59 37
Upper Class I nickel 25 18 23
Lower Class I nickel 8 18 5
Class II nickel 12 19 10
Intermediates 3 6 4
VNC eliminations² 0 -2 -5
Copper 26 26 31
Gold as by-product ('000 oz) 10 16 16
Silver as by-product ('000 oz) 163 292 581
PGMs ('000 oz) 60 82 91
Cobalt (metric ton) 428 350 517
¹ Nickel sales volumes were adjusted in the financial report to reflect VNC divestment
² Volumes associated with revenues from VNC that are accounted for as Other in segment information.
Premiums / discount by nickel product
US$/t 1Q21 4Q20 1Q20
Upper Class I nickel 820 1.035 960
Lower Class I nickel 140 74 320
Class II nickel -750 -530 -240
Intermediates -3.86 -2.72 -3.22
Selected financial indicators - Nickel operations
US$ million 1Q21 4Q20 1Q20
Net Revenues 1.434 1.587 956
Costs¹ -771 -884 -528
Expenses¹ -10 35 -19
Pre-operating and stoppage expenses¹ - -1 -
R&D expenses -11 -11 -13
Adjusted EBITDA 642 726 396
Depreciation and amortization -220 -240 -224
Adjusted EBIT 422 486 172
Adjusted EBIT margin (%) 29.4 30.6 18.0
¹ Net of depreciation and amortization
Nickel products by source 1Q21
% of source sales North Atlantic PTVI Onça Puma VNC¹ Total 1T21 Total 4T20
Upper Class I 0.72 0 0 0 0.52 0.3
Lower Class I 0.23 0 0 0 0.17 0.3
Class II 0.05 0.55 1 1 0.25 0.32
Intermediates 0 0.45 0 0 0.06 0.08
¹ Figures reflect refined product sales sourced from VNC
Nickel realized price
US$/t 1Q21 4Q20 1Q20
LME average nickel price 17.57 15.93 12.723
Average nickel realized price 17.63 17.387 15.38
Contribution to the NRP by category:
Nickel average aggregate premium -10 -90 190
Other timing and pricing adjustments contribution 70 1.547 2.467
Nickel operations - unit cash cost of sales, net of by-product credits
US$/t 1Q21 4Q20 1Q20
North Atlantic operations¹ 3.774 6.531 3.004
PTVI 7.836 7.109 7.037
Onça Puma 7.763 7.257 13.141
¹ North Atlantic figures include Clydach refining costs.

COPPER

Copper - EBITDA by operation
US$ million 1Q21 4Q20 1Q20
Salobo 284 339 145
Sossego 101 122 29
Others Copper¹ -16 -16 -14
Total 369 445 160
¹ Includes research expenses related to the Hu'u project.
Copper operations - unit cash cost of sales, net of by-product credits
US$/t 1Q21 4Q20 1Q20
Salobo 106 -808 -264
Sossego 2.711 1.742 2.985
Net operating revenue by product - Copper operations
US$ million 1Q21 4Q20 1Q20
Copper 431 476 226
Gold as by-product 119 201 154
Silver as by-product 4 5 3
Total 554 682 383
Volume sold - Copper operations
'000 metric tons 1Q21 4Q20 1Q20
Copper 45 67 59
Gold as by-product ('000 oz) 66 106 93
Silver as by-product ('000 oz) 152 199 186
Selected financial indicators - Copper operations
US$ million 1Q21 4Q20 1Q20
Net Revenues 554 682 383
Costs¹ -166 -212 -207
Expenses¹ - -3 1
Pre-operating and stoppage expenses¹ -1 -1 -
R&D expenses -18 -21 -17
Adjusted EBITDA 369 445 160
Depreciation and amortization -31 -35 -40
Adjusted EBIT 338 410 120
Adjusted EBIT margin (%) 61.0 60.0 31.3
¹ Net of depreciation and amortization

COAL

Net operating revenue by product
'000 metric tons 1Q21 4Q20 1Q20
Metallurgical coal 474 884 706
Thermal coal 541 651 860
Total 1.015 1.535 1.566
Volume sold
US$ million 1Q21 4Q20 1Q20
Metallurgical coal 58 91 94
Thermal coal 34 37 54
Total 92 128 148
Selected financial indicators - Coal
US$ million 1Q21 4Q20 1Q20
Net Revenues 92 128 148
Costs¹ ² -329 -400 -374
Expenses¹ 2 -15 2
R&D expenses -2 -4 -9
Dividends and interests on associates and JVs 78 - 75
Adjusted EBITDA -159 -291 -158
Depreciation and amortization - - -19
Adjusted EBIT -159 -291 -177
Adjusted EBIT margin (%) -173 -227 -120
¹ Net of depreciation and amortization
² Including idle capacity
Coal prices
US$/ metric ton 1Q21 4Q20 1Q20
Metallurgical coal index price¹ 127.1 108.1 155.1
Vale's metallurgical coal realized price 122.1 103.3 132.9
Thermal coal index price² 90.8 72.8 78.0
Vale's thermal coal realized price 62.7 56.7 63.5
Vale's average realized price 90.4 83.6 94.8
¹ Reference price Premium Low Vol Hard Coking Coal FOB Australia.
² McCloskey FOB Richards Bay.
Pro-forma cash cost
US$/ metric ton 1Q21 4Q20 1Q20
Pro-forma operational costs¹ (A) 99.4 113.7 144.8
Nacala non-operational tariff ² (B) 29.9 13.4 58.3
Other costs (C) ³ (10.4) 0.3 35.4
Cost at Nacala Port (D = A+B+C) 118.9 127.5 238.5
NLC's debt service to Vale (E) 77.1 - 47.9
Pro-forma C1 cash cost (F = D-E) 41.8 127.5 190.6
Idle capacity 205.1 133.7 -
Total 246.9 261.2 190.6
¹ Includes the inferred NLC tariff components related to fixed and variable costs and excludes royalties.
² Includes the inferred NLC tariff components related to sustaining capex, working capital, taxes and other financial items.
³ Average costs of inventories are monthly tested vs. the expected sales prices leading to positive or negative variations, depending on previous provisions recorded.
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INCOME STATEM

Income Statement
US$ million 1Q21 4Q20 1Q20
Net operating revenue 12.645 14.769 6.969
Cost of goods sold and services rendered -4.627 -5.733 -4.278
Gross profit 8.018 9.036 2.691
Gross margin (%) 63.4 61.2 38.6
Selling and administrative expenses -105 -188 -115
Research and evaluation expenses -100 -153 -95
Pre-operating and operational stoppage -145 -193 -268
Brumadinho event -115 -4.854 -159
Other operational expenses, net -12 -340 -62
Impairment and disposal of non-current assets -161 -1.513 -29
Operating income 7.38 1.795 1.963
Financial income 74 64 107
Financial expenses -1.386 -958 -525
Other financial items, net 1.235 213 -1.867
Equity results and other results in associates and joint ventures -16 -322 -166
Income (loss) before income taxes 7.287 792 -488
Current tax -1.515 -1.982 -347
Deferred tax -295 1.834 996
Net income 5.477 644 161
Loss attributable to noncontrolling interests -69 -95 -78
Net income attributable to Vale's stockholders 5.546 739 239
Earnings per share (attributable to the Company's stockholders - US$):
Basic and diluted earnings per share (attributable to the Company's stockholders - US$) 1.09 0.14 0.05
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EQUITY INCOME

Equity income (loss) by business segment
US$ million 1Q21 % 4Q20 % 1Q20 %
Ferrous Minerals 15 -54 13 -28 -18 16
Base Metals - - - - - -
Coal - - - - - -
Others -43 154 -59 128 -92 84
Total -28 100 -46 100 -110 100
1 VNC results are reported in Others segment Information
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BALANCE SHEET

Balance sheet
US$ million 3/31/2021 12/31/2020 3/31/2020
Assets
Current assets 23.173 24.403 19.944
Cash and cash equivalents 12.883 13.487 11.788
Short term investments 1.429 771 479
Accounts receivable 3.515 4.993 2.096
Other financial assets 289 329 510
Inventories 4.274 4.061 4.09
Recoverable taxes 466 509 571
Others 317 253 410
Non-current assets 14.217 15.129 16.396
Judicial deposits 1.146 1.268 2.436
Other financial assets 2.111 1.784 2.247
Recoverable taxes 1.107 1.091 1.095
Deferred income taxes 9.207 10.335 10.06
Others 646 651 558
Fixed assets 49.594 52.475 48.242
Total assets 86.984 92.007 84.582
Liabilities
Current liabilities 11.827 14.594 11.578
Suppliers and contractors 3.113 3.367 3.009
Loans, borrowings and leases 989 1.136 1.166
Other financial liabilities 2.082 1.906 1.565
Taxes payable 830 952 385
Settlement program (REFIS) 311 340 336
Provisions 903 1.826 787
Liabilities related to associates and joint ventures 846 876 453
Liabilities related to Brumadinho 1.847 1.91 990
De-characterization of dams 367 381 274
Dividends payable 21 1.22 1.218
Others 518 680 1.395
Non-current liabilities 39.728 42.592 39.747
Loans, borrowings and leases 12.818 13.891 17.603
Participative stockholders' debentures 4.045 3.413 2.023
Other financial liabilities 4.418 4.612 2.34
Settlement program (REFIS) 2.121 2.404 2.628
Deferred income taxes 1.944 1.77 1.741
Provisions 7.445 8.434 7.478
Liabilities related to associates and joint ventures 886 1.198 821
Liabilities related to Brumadinho 2.167 2.665 1.173
De-characterization of dams 1.595 1.908 1.538
Streaming transactions 1.986 2.005 2.046
Others 303 292 356
Total liabilities 51.555 57.186 51.325
Stockholders' equity 35.429 34.821 33.257
Total liabilities and stockholders' equity 86.984 92.007 84.582
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CASH FLOW

Cash flow
US$ million 1Q21 4Q20 1Q20
Cash flow from operations 8.673 7.33 2.005
Interest on loans and borrowings paid -288 -140 -244
Cash received (paid) on settlement of Derivatives, net -199 -63 273
Interest on participative stockholders debentures paid - -95 -
Income taxes (including settlement program) -1.164 -539 -349
Net cash provided by operating activities 7.022 6.493 1.685
Cash flows from investing activities:
Short-term investment -716 - 181
Investment in fund applications - -697 -
Capital expenditures -1.009 -1.444 -1.124
Additions to investments -42 -56 -75
Cash paid on the disposal of VNC -555 - -
Dividends received from joint ventures and associates - 94 -
Other investment activities, net -24 205 -53
Net cash used in investing activities -2.346 -1.898 -1.071
Cash flows from financing activities:
Loans and financing:
Loans and borrowings from third-parties 290 - 5
Payments of loans and borrowings from third-parties -1.233 -308 -375
Lease payments -55 -75 -50
Payments to stockholders:
Dividends and interest on capital paid to stockholders -3.884 -23 -
Dividends and interest on capital paid to noncontrolling interest -3 -3 -3
Transactions with noncontrolling stockholders - 171 -
Net cash provided by (used in) financing activities -4.885 -238 4.572
Increase (decrease) in cash and cash equivalents -209 4.357 5.186
Cash and cash equivalents in the beginning of the period 13.487 8.845 7.35
Effect of exchange rate changes on cash and cash equivalents -395 300 -748
Effects of disposals of subsidiaries, net of cash and cash equivalents - -15 -
Cash and cash equivalents at the end of period 12.883 13.487 11.788
Non-cash transactions:
Additions to property, plant and equipment - capitalized loans and borrowing costs 16 13 32
Cash flows from operating activities:
Income before income taxes 7.287 792 -488
Adjusted for:
Provisions related to Brumadinho - 4.727 -
Equity results and other results in associates and joint ventures 16 322 166
Impairment and disposal of non-current assets 161 1.513 29
Depreciation, depletion and amortization 731 838 815
Financial results, net 77 681 2.285
Change in assets and liabilities -
Accounts receivable 1.401 -1.963 621
Inventories -174 470 -227
Suppliers and contractors -256 85 -674
Provision - Payroll, related charges and other remunerations -289 138 -208
Payments related to Brumadinho -149 -221 -217
Other assets and liabilities, net -132 -52 -97
Cash flow from operations 8.673 7.33 2.005
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AVG PRICES

Average prices
US$/ton 1Q21 4Q20 1Q20
Iron ore fines CFR reference (dmt) 171.1 143.4 93.5
Iron ore fines Vale CFR/FOB realized price 155.5 130.7 83.8
Pellets CFR/FOB (wmt) 192.6 206.0 116.6
Manganese ore 109.7 87.5 107.4
Ferroalloys 1,158.6 1,027.2 870.7
Thermal coal 62.7 56.7 63.5
Metallurgical coal 122.1 103.3 132.9
Nickel² 17.63 17.387 15.38
Copper¹ 9.409 7.209 3.924
Gold (US$/oz) 1.781 1.895 1.636
Silver (US$/oz) 24.58 29.93 15.81
Cobalt (US$/t)² 44.834 56.097 33.58
¹Considers Salobo, Sossego and North Atlantic operations.
² VNC results are reported in Others segment Information.
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Volume

Volume sold - Minerals and metals
'000 metric tons 1Q21 4Q20 1Q20
Iron ore fines 58.872 82.391 51.445
ROM 426 434 211
Pellets 6.271 8.486 7.311
Manganese ore 258 461 219
Ferroalloys 14 15 27
Thermal coal 541 651 860
Metallurgical coal 474 884 706
Nickel¹ 48 59 37
Copper 71 93 89
Gold as by-product ('000 oz) 76 122 109
Silver as by-product ('000 oz) 315 491 767
PGMs ('000 oz) 60 82 91
Cobalt (metric ton)¹ 428 350 517
¹ Excludes VNC volumes
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OPERATING MARGIN

Operating margin by segment (EBIT adjusted margin)
% 1Q21 4Q20 1Q20
Ferrous Minerals 70.1 68.3 45.8
Base Metals¹ 38.2 39.5 21.8
Coal (172.8) (227.3) (119.6)
Total 60.3 23.0 29.7
¹ VNC results are reported in Others segment Information.
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ANNEX 3

(a) Adjusted EBIT
US$ million 1Q21 4Q20 1Q20
Net operating revenues 12.645 14.769 6.969
COGS -4.627 -5.733 -4.278
Sales and administrative expenses -105 -188 -115
Research and development expenses -100 -153 -95
Pre-operating and stoppage expenses -145 -193 -268
Brumadinho event -115 -4.854 -159
Other operational expenses, net -12 -340 -62
Dividends received and interests from associates and JVs 78 94 75
Adjusted EBIT 7.619 3.402 2.067
Reconciliation between adjusted EBITDA and operational cash flow
US$ million 1Q21 4Q20 1Q20
Adjusted EBITDA 8.35 4.24 2.882
Working capital:
Accounts receivable 1.401 -1.963 621
Inventories -174 470 -227
Suppliers and contractors -256 85 -674
Provision - Payroll, related charges and other remunerations -289 138 -208
Payments related to Brumadinho -264 -221 -217
Provisions related to Brumadinho - 4.727 -
Others -95 -146 -172
Cash provided from operations 8.673 7.33 2.005
Income taxes paid - including settlement program -1.164 -539 -349
Interest on loans and borrowings paid -288 -140 -244
Interest on participative shareholders' debentures paid - -95 -
Cash received (paid) on settlement of Derivatives, net -199 -63 273
Net cash provided by (used in) operating activities 7.022 6.493 1.685
Reconciliation between adjusted EBITDA and net income (loss)
US$ million 1Q21 4Q20 1Q20
Adjusted EBITDA 8.35 4.24 2.882
Depreciation, depletion and amortization -731 -838 -815
Dividends received and interest from associates and joint ventures -78 -94 -75
Impairment and disposal of non-current assets -161 -1.513 -29
Operating income 7.38 1.795 1.963
Financial results -77 -681 -2.285
Equity results and other results in associates and joint ventures -16 -322 -166
Income taxes -1.81 -148 649
Net income 5.477 644 161
Loss attributable to noncontrolling interests -69 -95 -78
Net income attributable to Vale's stockholders 5.546 739 239
(c) Net debt
US$ million 1Q21 4Q20 1Q20
Total debt 12.176 13.36 17.075
Cash and cash equivalents¹ 14.312 14.258 12.267
Net debt -2.136 -898 4.808
¹ Including financial investments
(d) Gross debt / LTM Adjusted EBITDA
US$ million 1Q21 4Q20 1Q20
Gross debt / LTM Adjusted EBITDA (x) 0.6 0.8 1.2
Gross debt / LTM operational cash flow (x) 0.6 0.9 1.5
(e) LTM Adjusted EBITDA / LTM interest payments
US$ million 1Q21 4Q20 1Q20
Adjusted LTM EBITDA / LTM gross interest (x) 27.2 20.3 14.8
LTM adjusted EBITDA / LTM interest payments (x) 27.6 22.0 11.9
LTM operational profit / LTM interest payments (x) 20.7 14.7 4.6
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