Vale (VALE) 28 Feb 212020 Q4 Earnings call transcript

Good morning ladies and gentlemen, welcome to Vale's conference call to discuss 4Q '20 results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and- answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded and the recording will be available on the company's website at vale.com at the Investors link. This conference call is accompanied by a slide presentation, also available at the Investors link at the company's website and is transmitted via Internet as well. both second and the delay via Internet, has slide audio via phone. few a in broadcasting the the audio changes transmitted The relation to

are Executive under Marcello forward-looking let Base for result Reform Mr. Mr. Litigation support; Minerals, Eduardo of Eduardo Metals; as Bartolomeo, risks Coal; Spinelli, anticipated Mr. Mr. Pires, XXXX. Paulo Mr. Global for Relations Osorio, differ Ferrous Medeiros, market Luiz are D'Ambrosio, for mention in of Executive Marina proceeding, Director could Carlos of harbor Mr. Pereira, People. Mr. and Officer Quental, that Officer Counsel; Executive macroeconomic Chief performance CFO; Communication; With from Before Executive being Excellence; the conditions, Alexandre Officer me Act Executive us Mr. made General Salles Operational other a for materially Officer; Director Couto, the Mrs. of Actual Safety Securities and any safe Business of comments, today Mark for statements De Officer factors. Institutional Executive that Officer Siani and Travers, forward-looking Alexandre and Luciano Mr.

will Mr. performance. Eduardo Eduardo answers. Bartolomeo. Sir, will to proceed presentation Mr. may XQ now the my begin. 'XX is It Bartolomeo First, available for Vale's the turn And over call on he that, and after to be questions pleasure now to you

everyone. morning good you, thank Well

most well. are years hope I be as history. of all you will challenging First remembered one in our XXXX the

lives all hopeful several few Vale our countries. early in the COVID-XX at our day after reparation around Brumadinho start vaccinations our resuming saw ore with with meeting [Ph] iron operations, the progress making of changing In days we more we December, the world. are got the of we As a pandemic and

However, and remain safety, intact, their our people [Indiscernible]. reparational priorities

keep of along our the reparation Vale high. people plans Brumadinho. government’s it’s advancing of with will the While first comes vaccination guard are The safety

please. Next

the with even each signed step development repair the of is X, Mina authorities to and The are economic of by already the contributing settlement sites at people determined as includes the environmental pay global payment with the announced global towards February saying legitimate and R$XX.X expenses been of have to the tragedy major our addition public the in communities representatives billion, to operate. who direction Gerais. Vale was on this fully do the obligations caused of emergency more A incurred recovery damage Brumadinho the value was I As agreement we meetings, where to of aid to the Bob, by of such which works.

that reparation to and for invite of our is important balance as a have a legitimacy we these always and I emphasized Alex provide the settlement. meetings it. certainty with more governance actions that Brumadinho, berline it's obligations our little to about for eliminating to a our have compensation, the and related of a elements provisions. to on fundamental details bit the this, number The in However, D'Ambrosio, now, legal clear speedy compensate we repair uncertainty from sheet that great allows note this

Well, as Eduardo essential Thanks, perspective. Vale’s agreement has mentioning, components from just two a Eduardo was the

was what of actions, it lawsuits. all those legal second, it all class extent First, we the by And petitioners and signed that it class to all to finality actions. to brings has certainty, collective call the

in the highest General, was by Attorney court the signed that himself, was the of Mina ratified Gerais state. General which of appeals Attorney and is fact, by the Brazil's court In it

from structured fixed state the with by will the The payment obligations. be all and and the mobility fixed And the defenders approximately the these by state depositing thirds established So used a impacted judicial regions amount that consultation be These Vale’s according criteria and that we yet obligations we managed amounts and amounts Appeals. disaster. by to with value in the by be agreement invested these these the moral is Vale distributed the agreement, have most payment obligations communities of or will for a public collective relating then government and will revert employed disaster, compensation these the impacted in infrastructure be to were the payment account communities. be the will will no influence to upon dispersed. to twofold, amounts projects Gerais. are directly fixed in and to are and by of of in another was the established released resolves represent how damages, in amounts Vale were Court the deposit that to both will two communities claims performance agreement to of to and court, Mina the to obligations amounts, amount further

part. that So deposit are do amounts all we we and from is released these

And part relates by certain involved. programs. these were are independent on technical essentially agreement recovery obligations. all based Vale’s quality, became jointly were of safety to water continuity obligations agreement by these constructed of the based the were the monitoring the with The are the and and and second parties and performance studies, of obligations, validated And which part health environmental petitioners

released for confident adequate step by will the show we reparations that to the reason, and the So completion Vale performance these these these are we're measures sufficient step to obligations obligations court. be from evidence region. address once of for that

agreement that I explains global wraps a nutshell. that think So the up, in

So you, Eduardo, thank you. back to

Thanks, Alex.

the people which Brumadinho nor labor Vale, that Since no evidence not Finally resources is that quick will of entered of or R$X.X totaled have a than reparation This XXXX will reparation is to we the with It's spare more XXX important and effort and agreements into note settlement. the billion. region. almost indemnification fair for XXXX, the for civil individual damage global continue. part

of the decision make. Next, we at a culture into to committed we and center well, every are people puts that safety Vale's transforming culture

VPS of accelerate this levers of have I address find the process. implementation. We first in gaps now management we the plan the model At the VPS role we And have identified. this XXXX, end highlight of the our to global to the And our transformation. the assessment completed

not and tolerate deviations board We tailings the which and risks. also people to in as here safety and process mentioned board transformation, underway The of expose model The is clear. such is the of other new commitment accelerate conduct of previous management do message the and their which procedures full continue executive quarter year. directors. to tools, our safety implementation our has We

and our plan, to first heard ESG to of XXXX. as XX which with XX active Next, XX have link a This our address gaps, already and on more improvement. were from built was we society. gaps, dialogue know, first compares Continuing communities you XX opportunities open plan based listening, a which in identified what with we for addressed, resolved we

already board decision in of shareholders directors been general gaps the have XX. sent for important March governance by meeting extraordinary at for called the Some

One approved seek of with the to has of its a proposed of reportedly bylaws, to note, and the gaps proposed office governance experience expanding result support who the least for at independent, three The are the theme, members to happen. which of seven. amendments of commitments in number to reach fiverr with and has example, international practices currently align this regarding another Vale we dedicated bold members investors. the independent making is executive process board, creation Vale of our sustainability. according On chains of will a deals of ESG to the the the an listening Maria extensive Directors Board in the

to continue Executive to Communications. functions me Director report we and the topic front will sustainability. Institutional to this Relations Mr. of has thank opportunity in his important this take from he of Luisa. lead And will as Maria advances Osorio We brought XX. for I with and Osorio March the welcome

As it our seen, reference can ESG to into ambition is transform in practice. be Vale a

sustainable to mining with new actions, with partial the these ore in now will XXXX operational of our society. and ended of accordance operations halted we XXXX. practice business. resumption will all our were We in With about the act iron contribute talking more that Well, performance a

were dry the in Vargem are Capanema the we ended long managed the bring to noticed efficiently options reach operations necessary we We iron pandemic ore, we step tonnes year, the we of our years. operate by with necessary started second a will almost implement granted taking prices. a In fourth XXXX, in with XXX resumed replenish capacity expect we for stronger line pellet our but that the in when year a by have than We in of we ensuring already and maintenance scenario. production you given We million XXXX the very of sales we Fábrica. January, quarter track December, are more Leste, production processing, per the XXXX. condition in portfolio inventories on XXXX. complex and Serra growth to project the licenses Grande. A our resumed by which of XX In obtained and to became an fact result, end value In tonnes robust were required product In term short, market. XXXX the a and in the to stability the first best important which half capacity towards It's dollars, capacity strong billion should Vale’s which project, strategy, start history to of and the million buffers. of the actions sales of ensure was we creation need the the in our

information more you ahead. On these will Marcello present to topic, Spinelli

We more in level cash firm advances, copper for to the first, global and better give an reparation operated integral important in you conclude, Vale would base with in its I be Vale. would Puma’s excellent most also the EBITDA on highlight would a Salobo like of in the recent also Brumadinho. production the record history. we had had for the settlement To Summarizing quarter to details we Q&A remained the lowest about metals. Mark I also risking like build it EBITDA. can in And record at we cost highlight a sessions.

a of company. Second, into safer the progress cultural transformation Vale’s

focus Third, our the cash drains, shareholders. discipline, prioritizing generation consistent are keeping this we production payment important safe under of topic, projects to an capital metals ferrous of where base last continuous we and portion our allocating finally, the and And About the on and of the our We conditions. sheet, our share, cash competitive half in organic addressing decision our shareholders. return XXXX. above compensation commitment the value shareholder of to and of second reflects Vale’s cash year. results to of together balance with This announced capacity, last [Indiscernible] in per our generation our referring the our R$X.XX all, Vale’s in amount policy healthy approval to resumed confidence our resumption

contractors, like sharing assure XXX,XXX ensure in will to now our safety the thank the intend production made creating XXXX of to floor customers you and employees our you. give would with that Spinelli we to Vale challenges who Most iron do operations all possible you. who by provide our will continue are to the overcome a can pandemic. people we and brought the doing we stakeholders. for to communities. value with our continue ore Thank to resumption. it And and suppliers importantly, and we the Finally, I Also, everything on the details more our Thank I I in

Thank XXXX tonnes. Eduardo our talking that, tonnes that million to XXX good Well, you, a XXX. XX year. buffer reception about we've action an Eduardo. Capanema production to example a million of guidance emphasize capacity the time an the been our Well, plan additional XXX want in Good this a next product said to I in reach our this is for have good range afternoon It's direction. commitment all. between goal to always reinforce and also to another And is reach we that's

to goal this confident this really deliver this this are We year.

see one in we one follow for production to details to need report, the don't but I the I the five in your that achievements, draw you points all So have But chance a so the a up we real to checkbox production here. we, go checklist report. want saw in had you attention can here. by

now. one, our all that's that bought you're operational good to our sites as back of of sites, Eduardo a first we said, ready we, The grow sign

to bringing progressing, system. in test eastern been and we've the the south authorizations we Second, the permits operations

information operating Fabrica in can process important already this quality very So is we site. now, wet in the because it's license to in in test volumes now, we already dry increase the have processes, so

have Itabiruçu that back capacity. complex. saw important, we we just these Itabiruçu The we operations its have filtration to place that we the the announced to this really a Itabira XXXX. you process, third formation, dam, early brought will breach be remaining will in be And in week, today

dam. Itabiruçu have to We works also need raising finalize in finish, that the we

this days, And that this in in need important do we capacity safe doing We rush, dam critical future this in Itabirea. path are into the a to the go not operation very in check Itabiruçu operation. in for and the way not is with full it's a emphasize we are to the in to mode mode, the

not lines about it's in in actions waiting Last first license in activities, do of Pebble. It's north the that. section, fourth talk moving about we approved this with Chimba we NX In in beats the year, is half. we don't bring and a North. here, now NX To we always like been all for a So to this talking finalize [Indiscernible] just the our contractors brought a pit. we're The forward I’m government that we information are need rush in the range, three about is information And board mine, to to online. new The we've six. final directors. the new going back the

in in, operating wet Now processing.

milestone three are our back testing as the we there. to lines have as the end But of you next slide. those we bring we plan. let bring the we soon to expect will then and In have lines, the we operation full a March to have We in know earlier already than remaining

roadmap this have We the for year.

But talk Last in you But So going year, let the please me linear effect. if the in I'm have to I we question two you about Q&A. not information. details give more know to mentioned want this. any

with last operation year, consequences worried our the in we we we north, this. call that rainy So suddenly the year with of operations dry month. But fact in rainy end a north start season a had rainy impact season. January, we we the winter in about season great the the in the were a in in had heavy in opportunity The our the the

take in could production advantage, month. we this in our So increase this

and many the to dry conclude this operations in new just in with this all also month. So patient to assets, possibility increase resumption in north the

the now we are Now can that since we February. we higher second already in this the we of half have last QX QX year, to winter confident year. these compared place since Combining all deliver in really volume

pass to I’ll Luciana. So

the our of in in we highest for still And lot half wise, of we afternoon, saw impairments we've mining operations. was posted flow Interestingly, morning increase the the this momentum. in example, EBITDA Cash other And we largest for everyone. of second EBITDA Good second Great a half the of ever. our of XXXX. volumes year. the of Vale’s industry of results, actually proceeds the EBITDA once reports their and companies largest results, good than second the the those the to are relative there commodities, accounts iron the we X.X by with to that are lot We under but collected were circumstances in business other the Obviously, quarter because in quarter. billion the quarter. this all industry. of fourth receivable also the sales already are our Together got last operating because shows of ore a prices better potential they the it

Carajas premiums of good per premiums a quarter now ton. They were fourth at quarter, compressed fourth there's they be are rise are now. at in second ended per for they they stands and very the lot will the right ton, quarter. $XX ton, above $XX on per the $XX momentum, $XX, very So the Pellet

first the of costs, and about year. of highlight. a business a a this little Talking bit there's second lot momentum the in positive for So quarter just

to prices. Although the of ore the The in a from purchase increase because relevant is third quarter, party of measure you increase for costs costs ore costs saw in XX.X XX.X. without

in of costs purchases this, of increased. When parties. Now $XX you from ton over all ore opportunistic iron have average third we're our paying per

tonne. of maintenance junctions problems or generating strip iron first any it stable prices, quarter. problems EBITDA it base effect, today's per the in EBITDA we out Puma in in without whatever in on at better $XX could a trends full per further as said at below cost productivity. million discuss or have much you this the If It's operation $XX as can $XX ore. furnaces million measure of our as be be quarter in Eduardo on metals, We In Onca costs of

So years. past in from the zero two

another Salobo is row. in cash Negative contributor cost quarter this for So forward. in the going a to second EBITDA

in XXX million very very a reshaping by-products quarter to for business. prices in above byproducts of collected there's pay performance. metals Canada, good And that's billion than lots this base more lot are So not prices. U.S. copper only our the A interesting quarter. portfolio. in the in at had was of selling attention that why for of good X.X very our reason divestitures movements the We for that good EBITDA also We price

the example, Vale coal finally in project collected palm XXXX VNC looking We of in the PTVI. sold We in in with consortium divestiture company option with from also mining China, And forward had oil Palm left plant we signed the a Yes, the a the a we sale we over employees Potash a binding a Argentina. the For XX% for which port not pelletizing Hill the company our Q&A. We agreement, proceeds Colorado stake stake Trafigura of sold a China. agreement oil of our anymore. discuss shall presence in with

hopeful this a good conclusion. to may that come We are

for heads We of we're the agreement Mitsui, also in documents signed the Moatize. working with the into exit definitive

us. cargo exercise company And stake Brazil, billion or of they costs one studying on than this provisions. the last to exercise comment that given and U.S. good in look valuations option coming company cargo So sees portfolio now option of general of of a more the X old the down of Bank around those option you do Development US also probably performance parts, general on happening the Bank from their X mosaic stake lots just in we in of against company they're And at VLI, the mosaic exercise billion that the in of with Vale, a and have an Development the lot some for a this worth values IPO they also NDS, finally homework, we're because that Brazilian this in which improvement margins that who it's in called portfolio. Brumadinho, on definitiveness it had speak. the also dollars investment. very that the And at that And company perspective the good prospects more doing our financial call very

on added we provisions different three saw You lines.

de-characterization XXX the of the them of to need dams backup determined studies mostly They First we where million U.S. be relate de-characterization end for built. new we to

about So changes in cost a are Future the made. in much But for be pretty There characterization big marginal. these of be need few were accounted minor that be numbers are very adjustments small engineering tweaks confident the to those assessed the de-characterization. now terms we numbers, numbers could for. should also of and

terms to In being a X.X spent described, global our is two be fixed of amount. billion amount added provisions, the saw you US of Alex thirds agreement, that to as

on And that characterization spent, to to we kind collapse the provisions indemnifications. the and towards to by site amount. individual performance which of -- the to of uncertainty which if relates amounts are mind changes, to are have agreement ARO, Obligations now the And obligations. are were beyond Asset no if the studies just mentioned. if beyond which a relates dam Obligations, there around they Retirement third added the there's studied, old the not the So the be And of there third if collapsed. any, other remaining full those the changes, that been finally, technical relate additional widely

So area. need some geotechnical we recover the studies, to

of within also million those $USXXX the payments the another those months emergency added there agreement. for as of condition now also we we're extension And three concluded precedent XXX a are So studies.

the So pretty bottom And now Q&A. line engineering minor of sheet much to Brumadinho. or done regards obligations, which are a whole. there techniques in on your provisions or are unless is let's now move adjustments as the are performance smaller The balance on proportion

you. Thank Timna Bank comes Instructions] Our [Operator Tanners, from first America. question of

seasonally know ask just your you're already from a to there, that Wanted though tends One I the deck, Hey within two Thanks clear Friday. could. quarter even lot. slide it's be to if is, range, weak. at running Happy the you first

and that you got of was potential closer then if, If is question just my So it's production say questions higher guided a recently wondering your to know continue be second I to if progress. we we should just, about And safe end to range. lot you'd taxes. intervention the assume of you high government

could lot. you think why? that. you on know, if I a Thanks Wondering comment

Okay, and government the your I'll Tina? And, Oh, way. by Friday, let first bring get Happy discussion. question. Spinelli I'll back the to

Timna, Hi, thank for you a question.

yes, the are we about quarter. this So happy we really are

lessons the every prepared more We than we are time from with We, show. for the season bring ever. this, learn rainy much past and we can other

first And everything the expect deliver year. And shape So mentioned as before the is this place. quarter last in this I quarter in better than quarter the we are to guidance. in we

We the year, to guidance. of beginning but deliver guidance, really obviously, deliver confident to are we the confident are the the

intervention, we the to we market, means Okay. been by to since several government inside going company. started ago, we of the that years right. changes trajectory has Vale new Four have to went establish Timna, the understand

As we has the agreement in year, last shareholders speak, November ended.

new that to that under understood. is through coming that movement, new what on are we board cooperation. movement election the it Obviously, the has the but we will of consolidate be So, call April

example the an called to As we the to in when extraordinary, committee improve before, an are committee, on created board. ourselves I my prepare panels market, the we assembly, general extraordinary new I in independence. the nomination assembly, just company historically, step, the a general just have and next brought speech recently, going seven the governance was as the to started we this to nomination independence, we to We mentioned when third the then mentioned initial had as then

shareholders diffused involved, of the So are as intervention has possibility and guided we interest company. company, by kind on by any we our a of the by government don't see because control the who

sometimes is fact tax Alex, there The natural of movements the it's I ask, government, issue on would noises. some like course, any are an to we think is of one, some are Brazilian don't talking because are there already just burden reform tax tax clarify some, played for recent So really I the there one to that increases, to I noise Vale. don't we about federal that tax be is principal, government equilibrium. there's on taxed. been by reform. has the the the always are But going that

So best more that. referring not improve taxing the specifically if think think to But on is way I CSLL, economy. I to you're our some Alex can color give

Yes, thanks, Eduardo. Timna, That's that question raised. Timna a very good

isonomy on to will in sector. as it the taxes our doesn't, it's not. There the higher reason, other and no be sector effectively the as fact, of very extent this, this succeed for which it and house taxes view than a that tax, new already that's confident lower any it as In every We're against the the proposal layer in increasing constitutional we Congress. sector. in increase recently, about brought will taxed, proposing this mining in not that it social CSSLL. clear And been will It that discriminates very mining we essentially to we taxed, because sector, tax violates contribution much the the bill then increase the unconstitutional. sector. said, Eduardo we bill taxation justified see which there saw known initiatives on call that's is entities not now what view, principle another in to Also, a of and And the adds highly

in for the has and fails sector, to into global project of the mining taxes rule also, which in the take taxation defining a benchmarks always Brazil. been in account So amount

matters like on the we're intervention address about to that to confident that state take the are amount knows opportunity said, limited bill very part other and still held Eduardo clarification. opportunity to are shares Timna's to will everyone shares reasons at that government Vale these this and new complement I'd what But I question that of which the golden evolve. add not that very some to government for matters clarify point will have For veto these there golden a power these the are of just and that are by and

on and defeat in in regard Any government or disposal Vale’s systems, name, mining corporate golden cease to part purpose the which mining with activities, change Vale’s be change these or the that government liquidation a government these Vale’s And integrated to federal we change activities location of Vale’s of maritime First, of Vale’s deposits, the meaning any veto ore a golden of in Vale mineral veto a railways, also the Vale headquarters, with can we company. shares the otherwise cannot iron shares, have change would winding regard down bylaws and mining would can't, deposits, ports to with terminals. cannot purpose. in

And matters these the are golden power. shares So processes. that's veto government any limit which have the only that's of intervention in of voting the

answered Back you, to you. the Eduardo. we question. I hope Thank So

Alex. Thanks,

Carlos from De Stanley. comes next Morgan Alba, Our question

everyone. Hello, And much. morning, you Good afternoon. thank very good

questions. generation quarter a know in capital and So I remain prices is strong high. was quite One the first really of couple the

returns policy? some with could expect stake, what wonder another the shareholders of we to buybacks elaborate how per in potentially I as as capital if should coming only September you And share traditional the in the coming to So selling or shareholders your see the in months dividend former controlling about selling you or market the obviously, store Any a plans under a very may the authorities. on been process, then Brumadinho to ask the the do maybe given and balance solid to sheet buyback come question because agreement a if the And and strong pressure solid of in with regeneration? cash comprehensive have I again, may the that.

any under company's is the to particular there, which steps? we towards I very been Thank Vale is Just brought against the have it the doesn't on that included should that the think one was about you What process? lawsuit How what are there? prosecutor that? next the question update seem much. something guess, anticorruption that And law, position

and thanks, Good, we It's for conservative first first you view us how had, really we good is that balance been that just sorry. this with morning because dividend Carlos. our pay of that well. Okay, generation commitment sheet, extremely the, of assumed We've strong. the solid know you a impede being semester, on we Brumadinho, quarter, commitments to on cash as true, didn't it's this

you going now matter be that we the of the be proceeds move policy of we against using from obviously, billion. generation. the don't it's a So we XX obviously, even shareholders. think have, if have, the are on liability are expanded cash any we look, But And the excess to that of we if would And the doing cash our will September. under I returned trajectory, to

We have it's very English a word if a in well behaved CapEx.

have in cycle the take proper. growing platform very [Ph] nothing on bullish profits of besides We our we're no horizon our to

to going in there. we're that We've So Vale said invest.

We There's not are are Luciano big. liabilities known are in our iron Those marginal going nothing mention. buffers as The very ore. to expand effects.

And decision but the it's they the would shareholders and want ask agenda, Luciano what that. to help the are get and is that as So buybacks, natural the our truly, about and, can talking goes yet. on way, to as the to see then and we the in the agenda. thinking we money not the We're about they elaborate always thinking we way flow safe, natural we nothing is to it's lawsuit. long we keep growing think that to that talking had our in taken cash to something our Specific me is and Brumadinho shareholders. shareholders I I business back this to excess what

money to in for sign billion there's so we in VMC that taking were divestiture it's not thing. in dividends paying disposition as the return X liabilities, a to another the Because quarter to shoulders, we're our of That's Hanover, on there's right? VNC, highlight only one shareholders. Brumadinho, Just for quite same the billion and $X

paying second is We a to track The a that hefty that. establish of buybacks. thing record That's want we buybacks have, on so goal subordinated dividends. are to

The is thing second don't want pro-cyclical. to we be

going very buy are we to of cycle be not the we're it high. where So to to mindful in

compare it the you However, actually valuation to relative has a other and us lot. increasing. bothers if gap companies, been The mining

when So account these into that making a will decision. taken factors be all are

no corruption than merit that law I'm legal soon. We that. Yes, together I board with not there's But law. the the counsel. rather about think And think the governs

asked some So my you. details more give just counsel to I to legal

Carlos. Okay,

you'd then And I was that question. Eduardo. thanks, Thanks, hoping Carlos. ask

corruption clarify our no we view have to we I not Eduardo supported connection no anti-corruption as because the view, brought in not they this the with Remember in a merit And lawsuit. appropriately chance purposefully in the did that whatsoever. it settlement as facts. the to So law. include charges having Well, have by lawsuit said, it. They're agreement,

our contains that's As government reading the that allegations, recall, official. no law. that corrupted And defines in the And purpose the corruption. by anticorruption of the allegation lawsuit what is understanding, Vale you may

lawmakers So we the have legal also position. the and who drafted opinions agree from anticorruption who that with law,

will prosper. these give for charges any we the allegations And adherence no to reasons, saw the So, that in or to that sort settlement charges. of and not believe the include reason we to,

So why fight in this will Thanks, we you that's court. to back we will win Eduardo. this and

you. Thank answered I Carlos. we have I you hope hope,

Thank you.

from Brant, HSBC. comes question Jonathan Our next

to it's Difficulty] [technical a afternoon. guess ask good Luciano, I of Hi, Good my wanted question. capital allocation first you, sort I morning questions.

obviously But have with bought cash debt You ended from, still on you think with high should up was And cash generation, robust today. liabilities coming iron the pretty the prices. announced position. the dividend. some I ore that very capital you some this working quarter be a and quarter And back collecting high

Mark, Or timeline forward you a wondering global sort bit a settlement. comment how just if you're cash given the unlock in projects about just logo. timeline should Southeast in potentially a but that can guess can that I'm something schedule? accelerate? you follow Asia, that the how prices? high for I given are we pretty those really ideal and potential of But, IPO which a think is on little just little shareholder the if management, on could question that of of you projects, for So relates it you not I don't of liability we the to and that just there's I And payments, really bit should that then to to much that on the the that mentioned, to see for copper Thank the so copper have Or cash the secondary sort as then is and position create some payment just that you something second a looking just of the terms sort comment to going And an need is VLI, but prepay? Is to you projects? of rationale you know doing attractive, you. value? expect understand

you. Okay, Jonathan, thank

too be is to be Our way to cash needs position used. it high,

debt. The first gross direction could pay be down

the are premiums high at because yields. low trading of very most a However, bonds

with are increase to we more observing of lot of started that the So to Treasury U.S. yields recently. yields, attention trajectory a very,

looking gross debt So perhaps into we well. to as opportunities be reduce will our

thing. that's So one

into. concession the prepayments The second the associated concession, you be prepayments mentioned, that really looked fees of that the rates will high. renewal that are because the our regulatory be thing looking for the rates, values of We might of agreement into interest interest with

and is financed project a an that was at were as time Mozambique risk. the rates well. have We it when contracted refinance It higher, to interest obligation embeds the

something looking that's to be So upon.

pointed be balances. you Brumadinho to And number cash is continues we significant. interference to to our and and dividends. the of into to a pay increase. need over there reality high to are it too out right, any lumpsum we you're looking with None So these course level line some those six needs in ability to itself, is that of is yes, decrease next bottom alternatives. made are the have down of still, as come the months the But cash alternatives pay But of payments

production in in terms a Hu'u. body, it Indonesia stage. we say Based see, in It's just tonnes gold mine mine it first as per production let's We that high XXX,XXX quartile around plus a potential potential annual significant about the copper, it's cost to optimize we're years life. I project see to XX what in already, believe well. the let's call project Project Jonathan, you're of called call we a to ore looking of large referring with the but projects Asia, on very with believe our annum, prefeasibility

doing to risk the do to period. and significant XXXX And some project. would we to to is renewable mine very opportunities studies project of work add So copper Vale some There's believe can about and the get in the ready towards great a this bringing one We're the we're we around approval. for optionality which life. energy looking encourage amount project in at day. projects outlined us look that this optimize that very were study de for thing have robust we this to the And partners options very, approval positive recoveries sometime currently potential extending

Thank you.

comes Our next question UBS. from Andreas Bokkenheuser,

you imagine higher, sustaining you I you with a ramp bit sort going much. whatnot. Thank could from you is CapEx to China, I achievable. on the not of and produce of what's be, think. sustaining to XXX savings there. $XX back gone some potentially, to tonne. there to But Vale very some rates cost ask breakeven think you million would your your questions that's A XXs. as to to breakeven per CapEx mean, mean, would mid at probably $X get with cost, that up used be forecast couple up But I I'm two China cost will I another especially about what kind to a of here? dilution, goal I of so to some obviously mid freight to term to today. One Because has cost billion cost long we're even and it obviously, your on. you potentially And dilution EBITDA unlock tons, going and realized

is production So XXX first could I about longer year XXX? you purely That's will Well, And you're obviously it's an realized the until XXX, it if second push to whatever, by XXX, to of even question, XXXX. kind term to you'll that XXXX, give us be I of the you're XXXX. make this not all price know And how I ore capacity consideration to consideration above a where on takes what of may got obviously, China? asking for But thinking question. the annualized you're effectively, full decision? a obviously breakeven or the you What is initial iron thinking I XXX. Or if guess, that by right, to you lot, cost I'm XXXX. XXX? Is And sense say, because question. a of a you XXXX. pass takes but XXX. getting goes today you well, when it, do rate is you though not then the a

would So be presumably that something considering. worth

to get considering dilution for that, number is to even mid-XXs cost levers intend one Okay, back Andreas. sustaining of for sure. Yes, we

purchases, in CapEx now, breakeven lot the The in and and And pro-cyclical like costs. expenses, the party is higher lowering the purchase third with the on components, third royalties, of especially there our a party a cash annual thing of other sustaining the higher prices, filtration. which still, of pre we're the is this investments the spending bump through operations, impacting breakeven, And namely are the money. is some idle operational royalties is the going because the intensity also

that will sustaining we expected a it is not So have $X ton capital. longer term per

let's those in was $X go done. per are two back should ton we the investments say time years’ So two are

a even years. in as three two see therefore, XX, a $XX breakdown sustaining to $XX the a when medium ourselves you if in and sub China in and add we ton So sub per term

So the situation with creating flexibility clear about in me to just then and north. behind know functionalities The creating the be is buffers that. to Right. on our much idea XXX, Spinelli and Andreas, XXX grow can help and the more

we're to margins, way you able Although to market that always It’s were value said going over of be volume, at the But the is, are announced the we're can, now we just great. the producing not going looking I'm market look prices, the always truly capacity at the else been get looking else, we we the have committed they to be XXX if not now, the added even off we're to to to the project. behaves, demands, actual to Capanema and to have XXX if always XXX. has problems on buffers based at something Vale the price want to looking or, absorb would XXX do

way any manage for decision swing is a the price is this we and of that -- spike this, Exactly capacity. we the

We can premium improve So in or in to products the or we use regulate can, the the operations portfolio not. south flexibility north. the

plant reliability for plant it volume the give to have is the million So optionality that, you the and for tons XXX margin king that. if market to but over should bring to a

Our Terry, next Chris question comes Deutsche Bank. from

Hi, Eduardo wanted I two I questions team. had and to ask.

first The versus sales. around is production

around build about levels just the planning I little sites your and if products. sites to optimization you comment you lithium your general the question company just And and batteries just on ask if particular, how Thank on and selling your the inventory are give I where is is So in you're could overall ion at to nickel bit wondering a through thinking update there. thinking inventory exposure the grade working of of some any could want of batteries, those wondered latest on on what you. say second on an blending

Go Chris. Spinelli. ahead you, Thank

Chris. you, Thank

had that a last or year, gap You're very quarter, not the the fulfill chain year know supply you're all supply not chain that would to before. one planning in last this order gap the our we record important event, to over order, any all third huge, you

ventures, we with level our problem flexibility give we goes like specific or to can to an blend from sometimes are Carajas a operational that So now in products.

you So see some obviously, gaps.

gap of number production, be So it's not the the but a can not during the can and the different, number huge sometimes sales of quarters.

please? Mark, And

start. terms Eduardo. the Chris, electric maybe to space, just just of vehicle batteries course, for Of in

it's think the I the great vehicle seeing to we're years. to it's opportunity evidence grow here, market for the going over business. dramatic dramatically electric be and a is nickel that going And is, coming

like the in industry. things battery significant and lithium of in preeminent And believe position by if are space, will batteries, While of battery, the take the there is lithium phosphate, demanded to be but nickel a for ion discussions phosphate the market. going in portion it for places there we even iron form take that will the that are a sure around

So how creating a lots many the the participate. is chain are we fronts can and markets. seeing of or we the to evidence discussions of around European getting an chain in the we of moving Vale, we on in discussions number acceleration U.S. what what opportunities value for supply around see different participating And and

to of nickel, seems of nickel a and nickel or North well flow Atlantic and Canada for have portfolio We class, produce, demanded we our be our including out that and the strong one product. that U.K. strong demand sheet

term, something so in that's heavily discussions. are and the very short And engaged we in those

to well. sheet looking that flow that supply And demand more within to And that's and we from opportunity. towards be opportunities will in at start participate current participating our we we're we around comes sheet. for this discussions drilling and, the how long with look think we And, to to fully opportunities And that, at and I just our terms obviously partnerships. participate opportunities. our look medium innovation that Now, as activities very in in that. other to short flow in, And engaged then potential then joint in look exploration, term of and we in meet, we and are heavily ventures

Citi. Next comes Hacking, Alex question from

one built. when back there follow guess And the I Good If which demand are Carajas, just so, class And that fit north I could seeing SXXD does initiatives morning. know, the discussions on nickel? on is that to just first, spectrum? how with your that sustainable question then And you up in I front? coming last on are for if iron that second in ore. kind Mark, of question, you're Vale undertaking Mark, you In was particular,

was for tons XXX of I think it export built million capacity.

XXX million the tons. I really much never than more has system think done

know there Northern if do so, million a I ton -- pathway I XXX system online. But the for like you what that is Thanks. that achieve to back coming is Leste there when Serra rate? be? think would And Now,

in nickel seeing opportunity absolutely, discussion a jurisdictions. ESG Okay, of provided standards, of in strong coming Because we're run so that a lot low Alex, discussion, it's that's complimentary from for we significant question. of lot you hearing whether that of thank asking the and or regulated, terms we carbon, standards well are see being meets type around ESG nickel providing well

in nickel can clearly and do we the our spectrum. so that And position position of we top

nickel products. our from If we decrease example, opportunity flow take look carbon at below our And an it average a sheet, significantly dramatically. Canadian to intensity has it comparable you an coming for have

production, carbon will Bay Voisey's coming example, removing diesel diesel long reduce our product operations or dramatically from out our For in of our intensity fuel taking harbor.

looking suppliers certainly see So we we And positioning are absolutely see for we that. way. And that nickel the and that do our do in opportunity. are supply

you. to over Spinelli

the the Yes. there. is to tons with year to Well, capacity we you, yes, What of checked have three year. end XXX next I in reach we Thank just the million you, our plan systems have Alex.

SXXD the South We this. have one only Ranch, North is that's Ranch the East the of and Ranch,

and that We that this good was million it news two tons. add years we can last the first Ranch, a year, operation East The information X ago. from was stopped

Now we're back.

challenge this So the this of bring adding millions. in is in number we are The is XXX online. North the Ranch to new pits

bring the we construction So pits always have need license. and to and the

the So SXX plan in And my to entry it going our is of that operation South is the of the use some that news need good range really with year, this the crushers, year, came the This it's SXX. I speech. is mentioned with adapt we some the the initial have well.

the year full we next there. beginning operation improving have are to So, be end year But the we the will of in there. of ready operation

year. next should of plan the end have the we till XXX So be

you. Thank

Our from Société comes next question Christian Générale Georges,

much I’ve for got morning. two you. very and Thank you good questions

you of in on more question. was prioritizing years. million And and those ton costs we this your you end associated to look Brumadinho your to tons production to the should like should very ability target? to so for anticipate XX the being which from gradual your anticipate on That Should settlement you. The first XX at is a forward? we how in confident annum XX at the we for should XX to on evolve operation, your first quarter, return two that, that expect over are the upper next target? to do and $XXX million releasing year, and not one what or those production, ton covered million coming per pellets and we something seem cost on And years of should going deliver around we expenses how per we the stoppage already upper should and by the the be Thank production second likely at side,

Christian. production year. expect you, this This here. slightly Thank year we last Pellet Spinelli is to compared improve to

main feed. Our production is pellet the restriction of

remaining of have in dams after all will capacity with production margin back I the the the go to you XX we consider this the XX mentioned, to production all We year on slight the face volumes you the to year, south gradually we production In know have a be dams. demand. year the the we evolutions that more. using all strategy eastern we'll of next pellet obviously have in the breach so the system Again, end year, capacity so the of to level feed, but this depends to the terms part the and of around the used to the ramp still of next can up this the of can is recover the of improve in of

Stoppage in dilusion operating will In next of expenses operations with be come reach terms declining best should the proportion come part to of year. dilution idle our operations the capacity will our in course definitely costs, the our into capacity that that of of same of we the production. important the back are show, of

at XXXX. they the Vargem come by other exception should Grande, with zero of of the to So, sites the end

Thank you.

Fletcher, comes question next Barclays. from Amos Our

Yes, morning, gentlemen. Had a couple of questions.

to pure clarify base And that just separating can listing at there? to rationale look to and to be value expect Thanks. question second base $XX off once metals And think can ore separate below the a companies. on highlight expanded again, net look billion, is time, to nickel metal all a seriously cash between mining play differential consider metals flow we business copper shareholders? First allocation, the surplus miners Do the quite one of compared returned there's upon iron base on the valuation business you you the a we your once then you capital the business. huge debt the at gets

look understanding the the Amos. expand the is of more that even Yes, but important. of Thanks, trajectory depth

metals about see point that we are obviously, below understand iron dividends cash shareholders be the you So is that same, all of going at but with today we excess obviously, the or if to returned in base undergoing. strong we have we ore else. in a to secondly, are XXx forms see we And that valuation

look build of to So we to the we correct and always need to that homework still optionality valuations we are that not something base in at. at. business. course, copper, the But both big as have before, like do the And in at the then to always we it's business, metals the But But grow be the nickel. mentioned truly, it's strengthen time. looking going table

paid $X.X to clear going billion not because strong and But of be it's had we we shareholders. capital on always be time that. it's sure, returned semester, location a and dividend the For to except just a trajectory to extended everything, this

please. proceed statements, session. at Eduardo this today's concludes closing Bartolomeo you Mr. your time, may question-and-answer This with

Okay, your, thank your interest. you. Thank a questions, for your you lot for

saying a even saw good, this marathon quarter. think fourth company we, say, excellent a rewriting through the as it's the not marathon had we a company, the the reshaping But would very is goes sprint, that as been I I've I in you company. risking very, to you,

the with committed truly risk. are We

my conservative extremely global with we have a our very capital the bringing on through strides did way. safety, and as shareholders discipline, in what importantly we we we're consistently, to return are with do ouput disciplined to are with safety improving. going We agreement, we're [Indiscernible] We're

we up to other to reiterate problem truly the are two several going But reliable draining from We see a VNC and company. automation to clean are are reshaping safe, palm when diesel that a cash. initiatives bio the sustainable company to oil we're to assets

in attention. I'll lot a next your thanks call. see So the And you for

you much That your for very today. Vale's call participation. for conclude does conference Thank

now disconnect. may You