07/28/2021 | Press release | Distributed by Public on 07/29/2021 01:27
Selected financial indicators | ||||
US$ million | 2Q21 | 1Q21 | 2Q20 | |
Net operating revenues | 16.675 | 12.645 | 7.518 | |
Total costs and other expenses | 6.344 | 4.989 | 4.901 | |
Expenses related to Brumadinho | 185 | 115 | 130 | |
Adjusted EBIT | 10.189 | 7.619 | 2.564 | |
Adjusted EBIT margin (%) | 61% | 60% | 34% | |
Adjusted EBITDA | 11.038 | 8.35 | 3.371 | |
Adjusted EBITDA margin (%) | 66% | 66% | 45% | |
Proforma adjusted EBITDA¹ | 11.239 | 8.467 | 3.586 | |
Iron ore - 62% Fe reference price | 200.0 | 166.9 | 93.3 | |
Net income | 7.586 | 5.546 | 995 | |
Net debt ² | -738 | -505 | 6.349 | |
Capital expenditures³ | 1.139 | 1.009 | 967 | |
¹ Excluding expenses related to Brumadinho and COVID-19. | ||||
² Including leases (IFRS 16). | ||||
³ Does not includes Boston Metal investment of US$ 6 million in 1Q21 |
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Adjusted EBITDA | ||||||||
US$ million | 2Q21 | 1Q21 | 2Q20 | |||||
Net operating revenues | 16.675 | 12.645 | 7.518 | |||||
COGS | -5.805 | -4.627 | -4.212 | |||||
SG&A | -133 | -105 | -124 | |||||
Research and development | -141 | -100 | -90 | |||||
Pre-operating and stoppage expenses | -191 | -145 | -238 | |||||
Expenses related to Brumadinho | -185 | -115 | -130 | |||||
Expenses related to COVID-19 donations | -16 | -2 | -85 | |||||
Other operational expenses | -58 | -10 | -152 | |||||
Dividends and interests on associates and JVs | 43 | 78 | 77 | |||||
Adjusted EBIT | 10.189 | 7.619 | 2.564 | |||||
Depreciation, amortization & depletion | 849 | 731 | 807 | |||||
Adjusted EBITDA | 11.038 | 8.350 | 3.371 | |||||
Proforma adjusted EBITDA¹ | 11.239 | 8.467 | 3.586 | |||||
¹ Excluding expenses related to Brumadinho and COVID-19 donations. | ||||||||
Adjusted EBITDA by business area | ||||||||
US$ million | 2Q21 | 1Q21 | 2Q20 | |||||
Ferrous Minerals | 10.679 | 7.811 | 3.502 | |||||
Base Metals | 866 | 1.011 | 611 | |||||
Coal | -164 | -159 | -269 | |||||
Others | -142 | -196 | -258 | |||||
Brumadinho expenses | -185 | -115 | -130 | |||||
Expenses related to COVID-19 donations | -16 | -2 | -85 | |||||
Total | 11.038 | 8.350 | 3.371 | |||||
Impact of Brumadinho provisions and expenses since 2019 | ||||||||
US$ million | EBITDA impact | Payments | FX and other adjustments | Provisions balance 31dec20 | EBITDA impact | Payments 1H21 | FX and other adjustments 1H21 | Provisions balance 31jun21 |
by 2020 | By 2020 | in 1H21 | ||||||
Decharacterization | 3.241 | -451 | -501 | 2.289 | - | -163 | 29 | 2.155 |
Agreements & donations¹ | 8.056 | -2.66 | -821 | 4.575 | - | -294 | 210 | 4.491 |
Total Provisions | 11.297 | -3.111 | -1.322 | 6.864 | - | -457 | 239 | 6.646 |
Incurred expenses | 1.24 | -1240 | -300 | -300 | ||||
Others | 122 | - | ||||||
Total | 12.569 | -4.351 | -300 | -757 | 126 | |||
¹ Includes Integral Reparation Agreement, individual, labor and emergency indemnifications and tailing removal and containment works |
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Net operating revenue by business area | |||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % | |
Ferrous Minerals | 14.297 | 85.7 | 10.505 | 83.1 | 5.895 | 78.4 | |
Iron ore fines | 12.2 | 73.2 | 9.154 | 72.4 | 4.852 | 64.5 | |
ROM | 14 | 0.1 | 24 | 0.2 | 3 | 0.0 | |
Pellets | 1.947 | 11.7 | 1.208 | 9.6 | 900 | 12.0 | |
Manganese ore | 29 | 0.2 | 28 | 0.2 | 58 | 0.8 | |
Ferroalloys | 23 | 0.1 | 18 | 0.1 | 10 | 0.1 | |
Others | 84 | 0.5 | 73 | 0.6 | 72 | 1.0 | |
Base Metals | 2.180 | 13.1 | 1.988 | 15.7 | 1.414 | 18.8 | |
Nickel | 815 | 4.9 | 846 | 6.7 | 542 | 7.2 | |
Copper | 711 | 4.3 | 670 | 5.3 | 491 | 6.5 | |
PGMs | 169 | 1.0 | 183 | 1.4 | 120 | 1.6 | |
Gold as by-product | 163 | 1.0 | 135 | 1.1 | 191 | 2.5 | |
Silver as by-product | 13 | 0.1 | 8 | 0.1 | 7 | 0.1 | |
Cobalt | 24 | 0.1 | 19 | 0.2 | 19 | 0.3 | |
Others¹ | 285 | 1.7 | 127 | 1.0 | 44 | 0.6 | |
Coal² | 161 | 1.0 | 92 | 0.7 | 94 | 1.3 | |
Metallurgical coal | 99 | 0.6 | 58 | 0.5 | 52 | 0.7 | |
Thermal coal | 60 | 0.4 | 34 | 0.3 | 42 | 0.6 | |
Others | 37 | 0.2 | 60 | 0.5 | 58 | 0.8 | |
Total | 16.675 | 100.0 | 12.645 | 100.0 | 7.518 | 100.0 | |
¹ Includes marketing activities | |||||||
² Includes US$ 2 million of general cargo in 2Q21 | |||||||
Net operating revenue by destination | |||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % | |
North America | 578 | 3.5 | 481 | 3.8 | 221 | 2.9 | 1280 |
USA | 449 | 2.7 | 383 | 3.0 | 177 | 2.4 | |
Canada | 129 | 0.8 | 98 | 0.8 | 44 | 0.6 | |
South America | 1.780 | 10.7 | 1.353 | 10.7 | 543 | 7.2 | |
Brazil | 1.531 | 9.2 | 1.134 | 9.0 | 528 | 7.0 | |
Others | 249 | 1.5 | 219 | 1.7 | 15 | 0.2 | |
Asia | 11.426 | 68.5 | 8.572 | 67.8 | 5.413 | 72.0 | |
China | 8.976 | 53.8 | 6.966 | 55.1 | 4.32 | 57.5 | 20.262 |
Japan | 1.082 | 6.5 | 623 | 4.9 | 396 | 5.3 | |
South Korea | 439 | 2.6 | 356 | 2.8 | 265 | 3.5 | |
Others | 929 | 5.6 | 627 | 5.0 | 432 | 5.7 | |
Europe | 2.191 | 13.1 | 1.950 | 15.4 | 1.035 | 13.8 | |
Germany | 617 | 3.7 | 635 | 5.0 | 351 | 4.7 | |
Italy | 231 | 1.4 | 144 | 1.1 | 49 | 0.7 | |
Others | 1.343 | 8.1 | 1.171 | 9.3 | 635 | 8.4 | |
Middle East | 456 | 2.7 | 71 | 0.6 | 178 | 2.4 | |
Rest of the World | 244 | 1.5 | 218 | 1.7 | 128 | 1.7 | |
Total | 16.675 | 100.0 | 12.645 | 100.0 | 7.518 | 100.0 |
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COGS by business segment | ||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % |
Ferrous Minerals | 3.879 | 66.8 | 2.922 | 63.2 | 2.632 | 62.5 |
Base Metals | 1.459 | 25.1 | 1.188 | 25.7 | 952 | 22.6 |
Coal | 340 | 5.9 | 329 | 7.1 | 361 | 8.6 |
Others | 127 | 2.2 | 188 | 4.1 | 267 | 6.3 |
Total COGS¹ | 5.805 | 100.0 | 4.627 | 100.0 | 4.212 | 100.0 |
Depreciation | 800 | 688 | 734 | |||
COGS, ex-depreciation | 5.005 | 3.939 | 3.478 | |||
¹ COGS currency exposure in 2Q21 was as follows: 55.8% USD, 38.4% BRL, 5.6% CAD and 0.2% Other currencies. |
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Operating expenses | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
SG&A ex-depreciation | 123 | 96 | 110 |
SG&A | 133 | 105 | 124 |
Administrative | 108 | 87 | 104 |
Personnel | 52 | 47 | 40 |
Services | 22 | 17 | 33 |
Depreciation | 10 | 9 | 14 |
Others | 24 | 14 | 17 |
Selling | 25 | 18 | 20 |
R&D | 141 | 100 | 90 |
Pre-operating and stoppage expenses | 191 | 145 | 238 |
Depreciation | 39 | 34 | 59 |
Expenses related to Brumadinho | 185 | 115 | 130 |
Provisions | - | - | 21 |
Incurred expenses | 185 | 115 | 109 |
Expenses related to COVID-19 donations | 16 | 2 | 85 |
Other operating expenses | 58 | 10 | 152 |
Total operating expenses | 724 | 477 | 819 |
Depreciation | 49 | 43 | 73 |
Operating expenses ex-depreciation | 675 | 434 | 746 |
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Pre-operating and stoppage expenses break-down | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Pre-operating and stoppage expenses | 191 | 145 | 238 |
Depreciation | 39 | 34 | 59 |
Pre-operating and stoppage expenses, ex-depreciation | 152 | 111 | 179 |
Brumadinho - stoppage expenses | 66 | 85 | 104 |
Minas Centrais Complex (Brucutu and others) | 6 | 22 | 19 |
Mariana Complex (Alegria, Timbopeba and others) | 0 | 3 | 7 |
Paraopeba Complex (Mutuca, Fábrica¹ and others) | 32 | 35 | 44 |
Vargem Grande Complex (Vargem Grande¹, Pico and others) | 28 | 25 | 34 |
Tubarão pellet plants | 7 | 7 | 17 |
Ontario | 59 | 0 | 0 |
Onça Puma | 0 | 0 | 0 |
Voisey's Bay | 0 | 0 | 29 |
Others | 20 | 19 | 29 |
¹ Including pelletizing plants. |
Financial results | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Financial expenses | -177 | -1.386 | -585 |
Gross interest | -176 | -207 | -193 |
Capitalization of interest | 14 | 16 | 12 |
Shareholder debentures¹ | -278 | -983 | -231 |
Others | 273 | -205 | -161 |
Financial expenses (REFIS) | -10 | -7 | -12 |
Financial income | 86 | 74 | 135 |
Derivatives² | 856 | -439 | -86 |
Currency and interest rate swaps | 788 | -482 | -230 |
Others (commodities, etc) | 68 | 43 | 144 |
Foreign Exchange | -390 | 1.452 | 107 |
Net foreign exchange gain (losses) | -390 | 320 | 107 |
Reclassification of cumulative translation adjustment on VNC sale | - | 1.132 | - |
Monetary variation | -25 | 222 | -56 |
Financial result, net | 350 | -77 | -485 |
¹ In 2Q21, there remuneration on shareholder debentures was US$ 193 million. | |||
² The cash effect of the derivatives was a gain of US$ 60 million in 2Q21 and a loss of US$ 199 million in 1Q21. |
Project Execution and Sustaining by business area | ||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % |
Ferrous Minerals | 648 | 56.9 | 608 | 60.3 | 541 | 55.9 |
Base Metals | 426 | 37.4 | 359 | 35.6 | 358 | 37.0 |
Coal | 36 | 3.2 | 29 | 2.9 | 31 | 3.2 |
Energy and others | 29 | 2.5 | 13 | 1.3 | 37 | 3.8 |
Total | 1.139 | 100.0 | 1.009 | 100.0 | 967 | 100.0 |
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Project execution by business area | |||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % | |
Ferrous Minerals | 113 | 53.8 | 82 | 53.9 | 59 | 47.6 | |
Base Metals | 69 | 32.9 | 68 | 44.7 | 63 | 50.8 | |
Energy and others | 28 | 13.3 | 2 | 1.3 | 2 | 1.6 | |
Total | 210 | 100.0 | 152 | 100.0 | 124 | 100.0 | |
Capital projects progress indicator[1] | |||||||
Projects | Capacity | Estimated | Executed capex | Estimated capex | Physical progress (%) | ||
(per year) | start-up1 | (US$ million) | (US$ million) | ||||
2Q21 | Total | 2021 | Total | ||||
Ferrous Minerals Project | |||||||
Northern System 240 Mtpy | 10 Mt | 2H22 | 56 | 292 | 229 | 772 | 80%1 |
Capanema | 18 Mt2 | 2H23 | 1 | 1 | 47 | 495 | 1% |
Serra Sul 120 Mtpy3 | 20 Mt | 2H24 | 22 | 26 | 168 | 1.502 | 1% |
Base Metals Project | |||||||
Salobo III | 30-40 kt | 2H22 | 61 | 471 | 329 | 1.056 | 77% |
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. | |||||||
[1] Pre-operating expenses were not included in the estimated capex for the year, although included in the total estimated capex column, in line with Vale's Board of Directors approvals. Estimated capex for the year is only reviewed once a year. | |||||||
Sustaining capex by business area | |||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % | |
Ferrous Minerals | 535 | 57.6 | 526 | 61.4 | 482 | 57.2 | |
Base Metals | 357 | 38.4 | 291 | 34.0 | 295 | 35.0 | |
Nickel | 325 | 35.0 | 266 | 31.0 | 255 | 30.2 | |
Copper | 32 | 3.4 | 25 | 2.9 | 40 | 4.7 | |
Coal | 36 | 3.9 | 29 | 3.4 | 31 | 3.7 | |
Energy and others | 1 | 0.1 | 11 | 1.3 | 35 | 4.2 | |
Total | 929 | 100.0 | 857 | 100.0 | 843 | 100.0 |
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Sustaining capex by type - 2Q21 | |||||||
US$ million | Ferrous Minerals | Base Metals | Coal | Energy and others | TOTAL | ||
Enhancement of operations | 228 | 165 | 28 | 1 | 422 | ||
Replacement projects | 33 | 149 | - | - | 182 | ||
Filtration and dry stacking projects | 138 | - | - | - | 138 | ||
Dam management | 6 | 4 | - | - | 10 | ||
Other investments in dams and waste dumps | 32 | 2 | 1 | - | 35 | ||
Health and Safety | 42 | 27 | 4 | - | 73 | ||
Social investments and environmental protection | 22 | 3 | 1 | - | 26 | ||
Administrative & Others | 34 | 7 | 2 | - | 43 | ||
Total | 535 | 357 | 36 | 1 | 929 | ||
Replacement projects progress indicator | |||||||
Projects | Capacity | Estimated | Executed capex | Estimated capex | Physical progress (%) | ||
(per year) | start-up | (US$ million) | (US$ million) | ||||
2Q21 | Total | 2021 | Total | ||||
Gelado | 9.7 Mt | 2H22 | 23 | 223 | 100 | 428 | 81% |
Voisey's Bay Mine Extension | 45 kt | 1H21 | 140 | 1,155¹ | 449 | 1.694 | 66% |
¹ Total expenditure on accrual basis as of June 30, 2021 was US$ 1.323 billion |
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Debt indicators | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Gross debt ¹ | 12.154 | 12.176 | 16.903 |
Lease (IFRS 16) | 1.708 | 1.631 | 1.652 |
Gross debt and leases | 13.862 | 13.807 | 18.555 |
Cash, cash equivalents and short-term investments | 14.6 | 14.312 | 12.206 |
Net debt | -738 | -505 | 6.349 |
Currency swaps² | 357 | 1.077 | 1.133 |
Refis | 2.692 | 2.432 | 2.749 |
Brumadinho provisions | 6.646 | 5.976 | 3.409 |
Samarco & Renova Foundation provisions | 2.491 | 1.732 | 1.669 |
Expanded net debt | 11.448 | 10.712 | 15.309 |
Total debt / adjusted LTM EBITDA (x) | 0.5 | 0.6 | 1.3 |
Net debt / adjusted LTM EBITDA (x) | (0.02) | (0.02) | 0.44 |
Adjusted LTM EBITDA / LTM gross interest (x) | 37.4 | 27.2 | 16.5 |
¹ Does not include leases (IFRS 16). | |||
² Includes interest rate swaps. |
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Segment information ― 2Q21, as per footnote of financial statements | |||||||
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 | 14.297 | -3.446 | -59 | -44 | -91 | 22 | 10.679 |
Iron ore fines | 12.2 | -2.816 | -61 | -43 | -74 | - | 9.206 |
Pellets | 1.947 | -520 | 2 | - | -13 | 22 | 1.438 |
Others ferrous | 98 | -71 | 1 | -1 | - | - | 27 |
Mn & Alloys | 52 | -39 | -1 | - | -4 | - | 8 |
Base Metals | 2.180 | -1.188 | -26 | -39 | -61 | - | 866 |
Nickel² | 1.492 | -959 | -25 | -18 | -60 | - | 430 |
Copper³ | 688 | -229 | -1 | -21 | -1 | - | 436 |
Coal | 161 | -323 | - | -2 | - | - | -164 |
Others | 37 | -48 | -96 | -56 | - | 21 | -142 |
Subtotal | 16.675 | -5.005 | -181 | -141 | -152 | 43 | 11.239 |
Brumadinho impact | - | - | -185 | - | - | - | -185 |
COVID-19 donations | - | - | -16 | - | - | - | -16 |
Total | 16.675 | -5.005 | -382 | -141 | -152 | 43 | 11.038 |
¹ Excluding depreciation, depletion and amortization. | |||||||
² Including copper, by-products from our nickel operations and marketing activities. | |||||||
³ Including by-products from our copper operations. |
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Iron ore fines and pellets quality premium | |||
US$/t | 2Q21 | 1Q21 | 2Q20 |
Iron ore fines quality premium | 3.0 | 6.9 | 5.3 |
Pellets weighted average contribution | 5.4 | 1.5 | 2.2 |
Iron ore fines and pellets total quality premium | 8.4 | 8.3 | 7.5 |
Share of premium products¹ (%) | 82% | 89% | 83% |
¹ Composed of pellets, Carajás (IOCJ), Brazilian Blend Fines (BRBF) and pellet feed. | |||
Volume sold by destination - Iron ore and pellets | |||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 |
Americas | 9.939 | 9.261 | 4.937 |
Brazil | 7.633 | 7.099 | 4.459 |
Others | 2.306 | 2.162 | 478 |
Asia | 56.381 | 50.525 | 51.011 |
China | 45.142 | 40.798 | 43.144 |
Japan | 6.054 | 4.422 | 3.428 |
Others | 5.185 | 5.305 | 4.439 |
Europe | 6.215 | 4.622 | 3.629 |
Germany | 825 | 1.087 | 720 |
France | 1.539 | 783 | 114 |
Others | 3.851 | 2.572 | 2.795 |
Middle East | 1.566 | 276 | 1.139 |
Rest of the World | 765 | 885 | 849 |
Total | 74.866 | 65.569 | 61.565 |
Net operating revenue by product | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Iron ore fines | 12.2 | 9.154 | 4.852 |
ROM | 14 | 24 | 3 |
Pellets | 1.947 | 1.208 | 900 |
Manganese & Ferroalloys | 52 | 46 | 68 |
Others | 84 | 73 | 72 |
Total | 14.297 | 10.505 | 5.895 |
Average prices | |||
US$/ metric ton | 2Q21 | 1Q21 | 2Q20 |
Iron ore - Metal Bulletin 65% index | 232.9 | 191.2 | 108.5 |
Iron ore - Metal Bulletin 62% low alumina index | 202.1 | 167.9 | 95.9 |
Iron ore - 62% Fe reference price | 200.0 | 166.9 | 93.3 |
Provisional price at the end of the quarter | 206.9 | 159.9 | 94.3 |
Iron ore fines Vale CFR reference (dmt) | 202.0 | 171.1 | 100.4 |
Iron ore fines Vale CFR/FOB realized price | 182.8 | 155.5 | 88.9 |
Pellets CFR/FOB (wmt) | 254.7 | 192.6 | 129.4 |
Manganese ore | 171.8 | 109.7 | 214.3 |
Ferroalloys | 1,508.1 | 1,158.6 | 1,005.9 |
Volume sold | |||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 |
Iron ore fines | 66.740 | 58.872 | 54.569 |
ROM | 479 | 426 | 46 |
Pellets | 7.647 | 6.271 | 6.950 |
Manganese ore | 169 | 258 | 270 |
Ferroalloys | 15 | 14 | 10 |
Selected financial indicators - Ferrous Minerals | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Net Revenues | 14.297 | 10.505 | 5.895 |
Costs¹ | -3.446 | -2.559 | -2.214 |
Expenses¹ | -59 | 8 | -56 |
Pre-operating and stoppage expenses¹ | -91 | -109 | -149 |
R&D expenses | -44 | -34 | -27 |
Dividends and interests on associates and JVs | 22 | - | 53 |
Adjusted EBITDA | 10.679 | 7.811 | 3.502 |
Depreciation and amortization | -455 | -397 | -478 |
Adjusted EBIT | 10.224 | 7.414 | 3.024 |
Adjusted EBIT margin (%) | 71.5 | 70.6 | 51.3 |
¹ Net of depreciation and amortization | |||
Selected financial indicators - Iron ore fines | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted EBITDA (US$ million) | 9.206 | 6.920 | 2.907 |
Volume Sold (Mt) | 66.7 | 58.9 | 54.6 |
Adjusted EBITDA (US$/t) | 138 | 118 | 53.0 |
Selected financial indicators - Pellets | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted EBITDA (US$ million) | 1.438 | 840 | 560 |
Volume Sold (Mt) | 7.6 | 6.3 | 7.0 |
Adjusted EBITDA (US$/t) | 188 | 134 | 81 |
Selected financial indicators - Ferrous ex Manganese and Ferroalloys | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted EBITDA (US$ million) | 10.671 | 7.793 | 3.487 |
Volume Sold (Mt)¹ | 74.9 | 65.6 | 61.6 |
Adjusted EBITDA (US$/t) | 143 | 119 | 57 |
¹ Volume including iron ore fines, pellets and ROM. |
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Iron ore fines cash cost and freight | |||
2Q21 | 1Q21 | 2Q20 | |
Costs (US$ million) | |||
Vale's iron ore fines C1 cash cost (A) | 1.479 | 1.029 | 933 |
Third-party purchase costs¹ (B) | 378 | 198 | 139 |
Vale's C1 cash cost ex-third-party volumes (C = A - B) | 1.102 | 832 | 793 |
Sales volumes (Mt) | |||
Volume sold (ex-ROM) (D) | 66.7 | 58.9 | 54.6 |
Volume sold from third-party purchases (E) | 4.8 | 2.8 | 3.1 |
Volume sold from own operations (F = D - E) | 61.9 | 56.1 | 51.5 |
Iron ore fines cash cost (ex-ROM, ex-royalties), FOB (US$ /t) | |||
Vale's C1 cash cost ex-third-party purchase cost (C/F) | 17.8 | 14.8 | 15.4 |
Average third-party purchase C1 cash cost (B/E) | 78.6 | 70.8 | 45.5 |
Vale's iron ore cash cost (A/D) | 22.2 | 17.5 | 17.1 |
Freight | |||
Maritime freight costs (G) | 925 | 747 | 597 |
% of CFR sales (H) | 78% | 80% | 81% |
Volume CFR (Mt) (I = D x H) | 52.3 | 47.3 | 44.2 |
Vale's iron ore unit freight cost (US$/t) (G/I) | 17.7 | 15.8 | 13.5 |
¹ Includes logistics costs related to third-party purchases. | |||
Iron ore fines and pellets cash break-even[1] | |||
Iron ore and pellets cash break-even landed in China¹ | |||
US$/t | 2Q21 | 1Q21 | 2Q20 |
Vale's C1 cash cost ex-third-party purchase cost | 17.8 | 14.8 | 15.4 |
Third party purchases cost adjustments | 4.4 | 2.7 | 1.7 |
Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t) | 22.2 | 17.5 | 17.1 |
Iron ore fines freight cost (ex-bunker oil hedge) | 17.7 | 15.8 | 13.5 |
Iron ore fines distribution cost | 1.2 | 1.3 | 0.9 |
Iron ore fines stoppage expenses² related to Brumadinho | 0.9 | 1.3 | 1.8 |
Iron ore fines expenses² & royalties | 6.7 | 5.2 | 4.9 |
Iron ore fines moisture adjustment | 4.2 | 3.5 | 3.4 |
Iron ore fines quality adjustment | (3.0) | (6.9) | (5.3) |
Iron ore fines EBITDA break-even (US$/dmt) | 49.9 | 37.7 | 36.3 |
Iron ore fines pellet adjustment | (5.4) | (1.5) | (2.2) |
Iron ore fines and pellets EBITDA break-even (US$/dmt) | 44.5 | 36.2 | 34.1 |
Iron ore fines sustaining investments | 7.5 | 8.4 | 8.1 |
Iron ore fines and pellets cash break-even landed in China (US$/dmt) | 52.0 | 44.6 | 42.2 |
¹ Measured by unit cost + expenses + sustaining investment adjusted for quality | |||
² Net of depreciation and includes dividends received | |||
[1] Does not include the impact from the iron ore fines and pellets pricing system mechanism. | |||
Expenses - iron ore fines | |||
US$ millions | 2Q21 | 1Q21 | 2Q20 |
Selling | 17 | 11 | 13 |
R&D | 43 | 33 | 25 |
Pre-operating and stoppage expenses | 74 | 92 | 122 |
Brumadinho stoppage expenses | 61 | 78 | 97 |
Others | 13 | 14 | 25 |
Other expenses | 44 | 11 | 46 |
Total expenses | 178 | 147 | 206 |
IRON ORE COGS - 1Q21 x 2Q21 | ||||||
Variance drivers | ||||||
US$ million | 1Q21 | Volume | Exchange rate | Others | Total variation | 2Q21 |
C1 cash costs | 1.029 | 139 | 22 | 289 | 450 | 1.479 |
Freight | 747 | 79 | - | 99 | 178 | 925 |
Distribution costs | 76 | 10 | - | -6 | 4 | 80 |
Royalties & others | 235 | 31 | - | 66 | 97 | 332 |
Total costs before depreciation and amortization | 2.087 | 259 | 22 | 448 | 729 | 2.816 |
Depreciation | 255 | 33 | 9 | 15 | 57 | 312 |
Total | 2.342 | 292 | 31 | 463 | 786 | 3.128 |
Nickel COGS, excluding marketing activities - 1Q21 x 2Q21 | ||||||
Variance drivers | ||||||
US$ million | 1Q21 | Volume | Exchange rate | Others | Total variation | 2Q21 |
Nickel operations | 650 | -1 | 12 | 35 | 46 | 696 |
Depreciation | 220 | -7 | 5 | 12 | 10 | 230 |
Total | 870 | -8 | 17 | 47 | 56 | 926 |
Copper COGS - 1Q21 x 2Q21 | ||||||
Variance drivers | ||||||
US$ million | 1Q21 | Volume | Exchange rate | Others | Total variation | 2Q21 |
Copper operations | 166 | 37 | 4 | 22 | 63 | 229 |
Depreciation | 31 | 22 | - | -12 | 10 | 41 |
Total | 197 | 59 | 4 | 10 | 73 | 270 |
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Pellets - EBITDA | ||||
2Q21 | 1Q21 | |||
US$ million | US$/wmt | US$ million | US$/wmt | |
Net revenues / Realized price | 1.947 | 254.7 | 1.208 | 192.6 |
Dividends received (Leased pelletizing plants) | 22 | 2.9 | - | - |
Cash costs (Iron ore, leasing, freight, overhead, energy and other) | -520 | (68.0) | -383 | (61.1) |
Pre-operational & stoppage expenses | -13 | (1.7) | -13 | (2.1) |
Expenses (Selling, R&D and other) | 2 | 0.3 | 28 | 4.5 |
EBITDA | 1.438 | 188.0 | 840 | 134.0 |
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Base Metals EBITDA overview - 2Q21 | |||||||||
US$ million | North Atlantic | PTVI Site | Onça Puma | Sossego | Salobo | Others | Subtotal | Marketing activities | Total Base Metals |
Base Metals | |||||||||
Net Revenues | 1.003 | 208 | 80 | 195 | 493 | -63 | 1.916 | 264 | 2.180 |
Costs | -600 | -135 | -42 | -87 | -142 | 81 | -925 | -263 | -1.188 |
Selling and other expenses | -12 | - | -3 | -2 | 1 | -10 | -26 | - | -26 |
Pre-operating and stoppage expenses | -59 | - | - | - | -1 | -1 | -61 | - | -61 |
R&D | -15 | -1 | - | -6 | - | -17 | -39 | - | -39 |
EBITDA | 317 | 72 | 35 | 100 | 351 | -10 | 865 | 1 | 866 |
Average prices | |||||||||
US$/ metric ton | 2Q21 | 1Q21 | 2Q20 | ||||||
Nickel - LME | 17.359 | 17.570 | 12.215 | ||||||
Copper - LME | 9.700 | 8.504 | 5.356 | ||||||
Nickel - realized prices | 17.183 | 17.630 | 14.436 | ||||||
Copper - realized prices¹ | 9.653 | 9.493 | 5.994 | ||||||
Gold (US$/oz) | 1.708 | 1.781 | 1.743 | ||||||
Silver (US$/oz) | 25.05 | 24.58 | 18.09 | ||||||
Cobalt (US$/t) | 43.039 | 44.834 | 36.009 | ||||||
¹Considers Salobo and Sossego operations. |
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Nickel operations, excluding marketing activities - EBITDA by operation | |||||
US$ million | 2Q21 | 1Q21 | 2Q20 | ||
North Atlantic operation¹ | 317 | 509 | 195 | ||
PTVI | 72 | 89 | 59 | ||
Onça Puma | 35 | 53 | 8 | ||
Others² | 5 | -9 | 29 | ||
Total | 429 | 642 | 291 | ||
¹ Includes the operations in Canada and in the United Kingdom. | |||||
² Includes the PTVI, intercompany sales eliminations, purchase of finished nickel. Hedge results have been relocated to each nickel business operation. | |||||
Net operating revenue by product - Nickel operations, excluding marketing activities | |||||
US$ million | 2Q21 | 1Q21 | 2Q20 | ||
Nickel | 815 | 846 | 542 | ||
Copper | 173 | 239 | 133 | ||
Gold as by-product | 18 | 16 | 28 | ||
Silver as by-product | 8 | 4 | 5 | ||
PGMs | 169 | 183 | 120 | ||
Cobalt | 24 | 19 | 19 | ||
Others | 21 | 6 | 6 | ||
Total | 1.228 | 1.313 | 853 | ||
Volume sold - Nickel operations | |||||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 | ||
Nickel¹ | 47 | 48 | 38 | ||
Upper Class I | 26 | 25 | 18 | ||
Lower Class I nickel | 8 | 8 | 3 | ||
Class II nickel | 10 | 12 | 13 | ||
Intermediates | 3 | 3 | 5 | ||
VNC eliminations² | - | - | -1 | ||
Copper | 18 | 26 | 24 | ||
Gold as by-product ('000 oz) | 11 | 10 | 16 | ||
Silver as by-product ('000 oz) | 334 | 163 | 232 | ||
PGMs ('000 oz) | 69 | 60 | 91 | ||
Cobalt (metric ton) | 568 | 428 | 540 | ||
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$/t | 2Q21 | 1Q21 | 2Q20 | ||
Upper Class I nickel | 820 | 820 | 1.130 | ||
Lower Class I nickel | 170 | 140 | 300 | ||
Class II nickel | -760 | -750 | -280 | ||
Intermediates | -4.040 | -3.860 | -2.560 | ||
Selected financial indicators - Nickel operations, excluding marketing activities | |||||
US$ million | 2Q21 | 1Q21 | 2Q20 | ||
Net Revenues | 1.228 | 1.313 | 853 | ||
Costs¹ | 696 | 650 | -508 | ||
Expenses¹ | -25 | -10 | -16 | ||
Pre-operating and stoppage expenses¹ | -60 | - | -29 | ||
R&D expenses | -18 | -11 | -9 | ||
Adjusted EBITDA | 429 | 642 | 291 | ||
Depreciation and amortization | -230 | -220 | -193 | ||
Adjusted EBIT | 199 | 422 | 98 | ||
Adjusted EBIT margin (%) | 16.2 | 32.1 | 11.5 | ||
¹ Net of depreciation and amortization | |||||
Product type by operation | |||||
% of source sales | North Atlantic | PTVI | Onça Puma | Total 2Q21 | Total 1Q21 |
Upper Class I | 74% | 0% | 0% | 54% | 52% |
Lower Class I | 23% | 0% | 0% | 17% | 17% |
Class II | 2% | 55% | 100% | 21% | 25% |
Intermediates | 1% | 45% | 0% | 8% | 6% |
Nickel realized price | |||||
US$/t | 2Q21 | 1Q21 | 2Q20 | ||
LME average nickel price | 17.359 | 17.570 | 12.215 | ||
Average nickel realized price | 17.183 | 17.630 | 14.436 | ||
Contribution to the NRP by category: | |||||
Nickel average aggregate premium | 0 | -10 | 90 | ||
Other timing and pricing adjustments contribution | -176 | 70 | 2.131 | ||
Nickel operations - unit cash cost of sales, net of by-product credits | |||||
US$/t | 2Q21 | 1Q21 | 2Q20 | ||
North Atlantic operations¹ | 5.840 | 3.774 | 4.183 | ||
PTVI | 8.492 | 7.836 | 6.401 | ||
Onça Puma | 8.248 | 7.763 | 9.532 | ||
¹ North Atlantic figures include Clydach refining costs. |
Copper - EBITDA by operation | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Salobo | 351 | 284 | 259 |
Sossego | 100 | 101 | 74 |
Others Copper¹ | -15 | -16 | -13 |
Total | 436 | 369 | 320 |
¹ Includes research expenses related to the Hu'u project. | |||
Copper operations - unit cash cost of sales, net of by-product credits | |||
US$/t | 2Q21 | 1Q21 | 2Q20 |
Salobo | 422 | 106 | -431 |
Sossego | 3.623 | 2.711 | 2.055 |
Net operating revenue by product - Copper operations | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Copper | 538 | 431 | 358 |
Gold as by-product | 145 | 119 | 163 |
Silver as by-product | 5 | 4 | 2 |
Total | 688 | 554 | 523 |
Volume sold - Copper operations | |||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 |
Copper | 56 | 45 | 60 |
Gold as by-product ('000 oz) | 84 | 66 | 93 |
Silver as by-product ('000 oz) | 188 | 152 | 181 |
Selected financial indicators - Copper operations, excluding marketing activities | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Net Revenues | 688 | 554 | 523 |
Costs¹ | -229 | -166 | -185 |
Expenses¹ | -1 | - | -3 |
Pre-operating and stoppage expenses¹ | -1 | -1 | - |
R&D expenses | -21 | -18 | -15 |
Adjusted EBITDA | 436 | 369 | 320 |
Depreciation and amortization | -41 | -31 | -33 |
Adjusted EBIT | 395 | 338 | 287 |
Adjusted EBIT margin (%) | 57.4 | 61.0 | 54.9 |
¹ Net of depreciation and amortization |
Net operating revenue by product | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Metallurgical coal | 99 | 58 | 52 |
Thermal coal | 60 | 34 | 42 |
Total¹ | 161 | 92 | 94 |
¹ It includes US$ 2 million of general cargo | |||
Volume sold | |||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 |
Metallurgical coal | 713 | 474 | 516 |
Thermal coal | 831 | 541 | 869 |
Total | 1.544 | 1.015 | 1.385 |
Selected financial indicators - Coal | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Net Revenues | 161 | 92 | 94 |
Costs¹ ² | -323 | -329 | -361 |
Expenses¹ | - | 2 | 3 |
R&D expenses | -2 | -2 | -5 |
Dividends and interests on associates and JVs | - | 78 | - |
Adjusted EBITDA | -164 | -159 | -269 |
Depreciation and amortization | -17 | - | - |
Adjusted EBIT | -181 | -159 | -269 |
Adjusted EBIT margin (%) | -112 | -173 | -286 |
¹ Net of depreciation and amortization | |||
² Including idle capacity | |||
Coal prices | |||
US$/ metric ton | 2Q21 | 1Q21 | 2Q20 |
Metallurgical coal index price¹ | 137.5 | 127.1 | 118.3 |
Vale's metallurgical coal realized price | 139.7 | 122.1 | 100.9 |
Thermal coal index price² | 104.7 | 90.8 | 54.8 |
Vale's thermal coal realized price | 72.4 | 62.7 | 48.1 |
Vale's average realized price | 103.5 | 90.4 | 67.7 |
¹ Reference price Premium Low Vol Hard Coking Coal FOB Australia. | |||
² McCloskey FOB Richards Bay | |||
Pro-forma cash cost | |||
US$/ metric ton | 2Q21 | 1Q21 | 2Q20 |
Pro-forma operational costs¹ (A) | 103.2 | 99.4 | 133.8 |
Nacala non-operational tariff ² (B) | 34.8 | 29.9 | 56.7 |
Other costs (C) ³ | 8.7 | (10.4) | (0.7) |
Cost at Nacala Port (D = A+B+C) | 146.7 | 118.9 | 189.8 |
NLC's debt service to Vale (E) | - | 77.1 | - |
Pro-forma C1 cash cost (F = D-E) | 146.7 | 41.8 | 189.8 |
Idle capacity | 62.8 | 205.1 | 70.6 |
Total | 209.5 | 246.9 | 260.4 |
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 Statement | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Net operating revenue | 16.675 | 12.645 | 7.518 |
Cost of goods sold and services rendered | -5.805 | -4.627 | -4.212 |
Gross profit | 10.870 | 8.018 | 3.306 |
Gross margin (%) | 65.2 | 63.4 | 44.0 |
Selling and administrative expenses | -133 | -105 | -124 |
Research and evaluation expenses | -141 | -100 | -90 |
Pre-operating and operational stoppage | -191 | -145 | -238 |
Brumadinho event | -185 | -115 | -130 |
Other operational expenses, net | -74 | -12 | -237 |
Impairment and disposal of non-current assets | -432 | -161 | -403 |
Operating income | 9.714 | 7.380 | 2.084 |
Financial income | 86 | 74 | 135 |
Financial expenses | -177 | -1.386 | -585 |
Other financial items, net | 441 | 1.235 | -35 |
Equity results and other results in associates and joint ventures | -454 | -16 | -535 |
Income (loss) before income taxes | 9.610 | 7.287 | 1.064 |
Current tax | -1.201 | -1.515 | -326 |
Deferred tax | -872 | -295 | 181 |
Net income | 7.537 | 5.477 | 919 |
Loss attributable to noncontrolling interests | -49 | -69 | -76 |
Net income attributable to Vale's stockholders | 7.586 | 5.546 | 995 |
Earnings per share (attributable to the Company's stockholders - US$): | |||
Basic and diluted earnings per share (attributable to the Company's stockholders - US$) | 1.49 | 1.09 | 0.19 |
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Equity income (loss) by business segment | ||||||
US$ million | 2Q21 | % | 1Q21 | % | 2Q20 | % |
Ferrous Minerals | 55 | 52 | 15 | -54 | 36 | 84 |
Base Metals | - | - | - | - | - | - |
Coal | - | - | - | - | - | - |
Others | 50 | 48 | -43 | 154 | 7 | 16 |
Total | 105 | 100 | -28 | 100 | 43 | 100 |
1 VNC results are reported in Others segment Information |
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Balance sheet | |||
US$ million | 6/30/2021 | 3/31/2021 | 6/30/2020 |
Assets | |||
Current assets | 25.403 | 23.173 | 20.307 |
Cash and cash equivalents | 13.649 | 12.883 | 12.113 |
Short term investments | 951 | 1.429 | 93 |
Accounts receivable | 4.954 | 3.515 | 2.597 |
Other financial assets | 214 | 289 | 554 |
Inventories | 4.701 | 4.274 | 4.058 |
Recoverable taxes | 668 | 466 | 540 |
Others | 266 | 317 | 352 |
Non-current assets | 14.235 | 14.217 | 15.851 |
Judicial deposits | 1.326 | 1.146 | 2.07 |
Other financial assets | 1.43 | 2.111 | 2.3 |
Recoverable taxes | 1.44 | 1.107 | 1.099 |
Deferred income taxes | 9.338 | 9.207 | 9.804 |
Others | 701 | 646 | 578 |
Fixed assets | 57.078 | 49.594 | 46.989 |
Total assets | 96.716 | 86.984 | 83.147 |
Liabilities | |||
Current liabilities | 14.335 | 11.827 | 11.152 |
Suppliers and contractors | 3.777 | 3.113 | 2.934 |
Loans, borrowings and leases | 992 | 989 | 1.208 |
Other financial liabilities | 1.547 | 2.082 | 1.269 |
Taxes payable | 1.678 | 830 | 395 |
Settlement program (REFIS) | 356 | 311 | 321 |
Provisions | 1.156 | 903 | 850 |
Liabilities related to associates and joint ventures | 1.467 | 846 | 709 |
Liabilities related to Brumadinho | 2.223 | 1.847 | 1.013 |
De-characterization of dams | 454 | 367 | 312 |
Dividends and interest on capital | 27 | 21 | 1.159 |
Others | 658 | 518 | 982 |
Non-current liabilities | 40.022 | 39.728 | 39.061 |
Loans, borrowings and leases | 12.870 | 12.818 | 17.347 |
Participative stockholders' debentures | 4.687 | 4.045 | 2.061 |
Other financial liabilities | 3.027 | 4.418 | 2.364 |
Settlement program (REFIS) | 2.336 | 2.121 | 2.428 |
Deferred income taxes | 1.985 | 1.944 | 1.631 |
Provisions | 8.003 | 7.445 | 7.808 |
Liabilities related to associates and joint ventures | 1.024 | 886 | 960 |
Liabilities related to Brumadinho | 2.268 | 2.167 | 710 |
De-characterization of dams | 1.701 | 1.595 | 1.374 |
Streaming transactions | 1.961 | 1.986 | 2.031 |
Others | 160 | 303 | 347 |
Total liabilities | 54.357 | 51.555 | 50.213 |
Stockholders' equity | 42.359 | 35.429 | 32.934 |
Total liabilities and stockholders' equity | 96.716 | 86.984 | 83.147 |
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Cash flow | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Cash flow from operations | 9.277 | 8.673 | 2.111 |
Interest on loans and borrowings paid | -138 | -288 | -168 |
Cash received (paid) on settlement of Derivatives, net | 60 | -199 | -114 |
Interest on participative stockholders debentures paid | -193 | - | -95 |
Income taxes (including settlement program) | -1.280 | -1.164 | -398 |
Net cash provided by operating activities | 7.726 | 7.022 | 1.336 |
Cash flows from investing activities: | |||
Short-term investment | 543 | -716 | 449 |
Investment in fund applications | - | - | -96 |
Capital expenditures | -1.139 | -1.009 | -967 |
Additions to investments | - | -42 | - |
Acquisition of NLC, net of cash | -2.345 | - | - |
Cash paid on the disposal of VNC | - | -555 | - |
Dividends received from joint ventures and associates | 43 | - | 77 |
Other investment activities, net | -189 | -24 | -133 |
Net cash used in investing activities | -3.087 | -2.346 | -670 |
Cash flows from financing activities: | |||
Loans and financing: | |||
Loans and borrowings from third-parties | 10 | 290 | - |
Payments of loans and borrowings from third-parties | -179 | -1.233 | -116 |
Lease payments | -49 | -55 | -49 |
Payments to stockholders: | |||
Dividends and interest on capital paid to stockholders | -2.208 | -3.884 | - |
Dividends and interest on capital paid to noncontrolling interest | -3 | -3 | -5 |
Share buyback program | -2.004 | - | - |
Net cash used in financing activities | -4.433 | -4.885 | -170 |
Increase (decrease) in cash and cash equivalents | 206 | -209 | 496 |
Cash and cash equivalents in the beginning of the period | 12.883 | 13.487 | 11.788 |
Effect of exchange rate changes on cash and cash equivalents | 560 | -395 | -171 |
Cash and cash equivalents at the end of period | 13.649 | 12.883 | 12.113 |
Non-cash transactions: | - | - | |
Additions to property, plant and equipment - capitalized loans and borrowing costs | 14 | 16 | 12 |
Cash flows from operating activities: | - | - | |
Income before income taxes | 9.610 | 7.287 | 1.064 |
Adjusted for: | - | - | |
Provisions related to Brumadinho | - | - | 21 |
Equity results and other results in associates and joint ventures | 454 | 16 | 535 |
Impairment and disposal of non-current assets | 432 | 161 | 403 |
Depreciation, depletion and amortization | 849 | 731 | 807 |
Financial results, net | -350 | 77 | 485 |
Change in assets and liabilities | - | - | - |
Accounts receivable | -1.105 | 1.401 | -922 |
Inventories | -188 | -174 | -125 |
Suppliers and contractors | 291 | -256 | 108 |
Provision - Payroll, related charges and other remunerations | 82 | -289 | 115 |
Payments related to Brumadinho | -303 | -149 | -155 |
Other assets and liabilities, net | -495 | -132 | -225 |
Cash flow from operations | 9.277 | 8.673 | 2.111 |
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Average realized prices | |||
US$/ton | 2Q21 | 1Q21 | 2Q20 |
Iron ore fines CFR reference (dmt) | 202.0 | 171.1 | 100.4 |
Iron ore fines Vale CFR/FOB realized price | 182.8 | 155.5 | 88.9 |
Pellets CFR/FOB (wmt) | 254.7 | 192.6 | 129.4 |
Manganese ore | 171.8 | 109.7 | 214.3 |
Ferroalloys | 1,508.1 | 1,158.6 | 1,005.9 |
Thermal coal | 72.4 | 62.7 | 48.1 |
Metallurgical coal | 139.7 | 122.1 | 100.9 |
Nickel | 17.183 | 17.630 | 14.436 |
Copper¹ | 9.590 | 9.409 | 5.884 |
Gold (US$/oz) | 1.708 | 1.781 | 1.743 |
Silver (US$/oz) | 25.05 | 24.58 | 18.09 |
Cobalt (US$/t) | 43.039 | 44.834 | 36.009 |
¹Considers Salobo, Sossego and North Atlantic operations. |
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Volume sold - Minerals and metals | |||
'000 metric tons | 2Q21 | 1Q21 | 2Q20 |
Iron ore fines | 66.740 | 58.872 | 54.569 |
ROM | 479 | 426 | 46 |
Pellets | 7.647 | 6.271 | 6.950 |
Manganese ore | 169 | 258 | 270 |
Ferroalloys | 15 | 14 | 10 |
Thermal coal | 831 | 541 | 869 |
Metallurgical coal | 713 | 474 | 516 |
Nickel | 47 | 48 | 38 |
Copper | 74 | 71 | 83 |
Gold as by-product ('000 oz) | 95 | 76 | 110 |
Silver as by-product ('000 oz) | 522 | 315 | 413 |
PGMs ('000 oz) | 69 | 60 | 91 |
Cobalt (metric ton) | 568 | 428 | 540 |
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Operating margin by segment (EBIT adjusted margin) | |||
% | 2Q21 | 1Q21 | 2Q20 |
Ferrous Minerals | 71.5 | 70.6 | 51.3 |
Base Metals | 26.4 | 38.2 | 27.2 |
Coal | (112.4) | (172.8) | (286.2) |
Total | 61.1 | 60.3 | 34.1 |
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(a) Adjusted EBIT | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Net operating revenues | 16.675 | 12.645 | 7.518 |
COGS | -5.805 | -4.267 | -4.212 |
Sales and administrative expenses | -133 | -105 | -124 |
Research and development expenses | -141 | -100 | -90 |
Pre-operating and stoppage expenses | -191 | -145 | -238 |
Brumadinho event | -185 | -115 | -130 |
Other operational expenses, net | -74 | -12 | -237 |
Dividends received and interests from associates and JVs | 43 | 78 | 77 |
Adjusted EBIT | 10.189 | 7.619 | 2.564 |
Reconciliation between adjusted EBITDA and operational cash flow | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted EBITDA | 11.038 | 8.35 | 3.371 |
Working capital: | |||
Accounts receivable | -1.105 | 1.401 | -922 |
Inventories | -188 | -174 | -125 |
Suppliers and contractors | 291 | -256 | 108 |
Provision - Payroll, related charges and other remunerations | 82 | -289 | 115 |
Payments related to Brumadinho | -303 | -149 | -155 |
Provisions related to Brumadinho | - | - | 21 |
Others | -538 | -210 | -302 |
Cash provided from operations | 9.277 | 8.673 | 2.111 |
Income taxes paid - including settlement program | -1.28 | -1.164 | -398 |
Interest on loans and borrowings paid | -138 | -288 | -168 |
Interest on participative shareholders' debentures paid | -193 | - | -95 |
Cash received (paid) on settlement of Derivatives, net | 60 | -199 | -114 |
Net cash provided by (used in) operating activities | 7.726 | 7.022 | 1.336 |
Reconciliation between adjusted EBITDA and net income (loss) | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted EBITDA | 11.038 | 8.350 | 3.371 |
Depreciation, depletion and amortization | -849 | -731 | -807 |
Dividends received and interest from associates and joint ventures | -43 | -78 | -77 |
Impairment and disposal of non-current assets | 432 | -161 | -403 |
Operating income | 9.714 | 7.380 | 2.084 |
Financial results | -350 | -77 | -485 |
Equity results and other results in associates and joint ventures | 454 | -16 | -535 |
Income taxes | 2.073 | -1.81 | -145 |
Net income | 7.537 | 5.477 | 919 |
Loss attributable to noncontrolling interests | -49 | -69 | -76 |
Net income attributable to Vale's stockholders | 7.586 | 5.546 | 995 |
(c) Net debt | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Gross debt | 12.154 | 12.176 | 16.903 |
Leases | 1.708 | 1.631 | 1.652 |
Cash and cash equivalents¹ | 14.6 | 14.312 | 12.206 |
Net debt | -738 | -505 | 6.349 |
¹ Including financial investments | |||
(d) Gross debt / LTM Adjusted EBITDA | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Gross debt and leases / LTM Adjusted EBITDA (x) | 0.5 | 0.6 | 1.3 |
Gross debt and leases / LTM operational cash flow (x) | 0.5 | 0.6 | 1.7 |
(e) LTM Adjusted EBITDA / LTM interest payments | |||
US$ million | 2Q21 | 1Q21 | 2Q20 |
Adjusted LTM EBITDA / LTM gross interest (x) | 37.4 | 27.2 | 16.5 |
LTM adjusted EBITDA / LTM interest payments (x) | 38.7 | 27.6 | 12.9 |
LTM operational profit / LTM interest payments (x) | 31.4 | 20.7 | 5.0 |
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