Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Brazil
  4. Bolsa de Valores de Sao Paulo
  5. Vale S.A.
  6. News
  7. Summary
    VALE3   BRVALEACNOR0

VALE S.A.

(VALE3)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Vale S A : Performance in 2Q21 USD - xls

07/29/2021 | 03:37am EDT
Vale's Performance in 3Q20 USD - xls
SFI
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

Menu

EBITDA
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

Menu

REVENUES
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

Menu

COGS SEGMENT
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.

Menu

EXPENSES
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

Menu

PRE-OPER. EXPENSES
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.
FINANC. RESULTS
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.
Capex1
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

Menu

Capex2
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

Menu

Capex3
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

Menu

DEBT
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.

Menu

INFO SEGMENT
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.

Menu

FERROUS MINERALS
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.

Menu

IO_UNIT COST
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
COGS BUSINESS QUARTER
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

Menu

PELLETS-EBITDA
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

Menu

BASE METALS
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.

Menu

NICKEL
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
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
COAL
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.

Menu

INCOME STATEM
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

Menu

EQUITY INCOME
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

Menu

BALANCE SHEET
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

Menu

CASH FLOW
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

Menu

AVG PRICES
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.

Menu

Volume
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

Menu

OPERATING MARGIN
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

Menu

ANNEX 3
(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

Menu

Disclaimer

Vale SA published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 07:36:10 UTC.


© Publicnow 2021
All news about VALE S.A.
11:52aVALE S A : Contribute to Vale's 2021 materiality survey
PU
09:51aVALE S A : UBS Downgrades Vale S.A to Sell from Buy, Adjusts Price Target to $15..
MT
06:12aVALE S A : EXCERPT OF THE MINUTES OF THE ORDINARY BOARD OF DIRECTORS MEETING (Fo..
PU
06:12aVALE S A : announces shareholders remuneration and cancellation of treasury shar..
PU
09/16VALE S A : Excerpt of the Minutes of the Ordinary Board of Directors Meeting
PU
09/10VALE S A : reaffirms its commitment to return the financial compensation from Ri..
PU
09/09VALE S A : reaffirms its commitment to return the financial compensation from Ri..
PU
09/09VALE S A : announces 'green briquette' capable of reducing CO2 emissions of stee..
PU
09/09VALE S A : announces “green briquette” which can reduce CO2 emission..
PU
09/09VALE S A : releases its first Ethics & Compliance Program Report
PU
More news
Analyst Recommendations on VALE S.A.
More recommendations
Financials (USD)
Sales 2021 61 537 M - -
Net income 2021 26 909 M - -
Net cash 2021 5 049 M - -
P/E ratio 2021 2,74x
Yield 2021 13,8%
Capitalization 84 034 M 83 446 M -
EV / Sales 2021 1,28x
EV / Sales 2022 1,35x
Nbr of Employees 74 316
Free-Float 89,6%
Chart VALE S.A.
Duration : Period :
Vale S.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends VALE S.A.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 11
Last Close Price 16,68 $
Average target price 25,61 $
Spread / Average Target 53,5%
EPS Revisions
Managers and Directors
Eduardo De Salles Bartolomeo Chief Executive Officer
José Maurício Pereira Coelho President & Director
Luciano Siani Pires Executive VP-Finance & Investor Relations
Denis Cuenca Chief Compliance Officer
Lucio Azevedo Independent Director
Sector and Competitors
1st jan.Capi. (M$)
VALE S.A.0.55%84 313
FORTESCUE METALS GROUP LIMITED-26.38%38 662
KUMBA IRON ORE LIMITED-6.86%12 763
NMDC LIMITED33.00%6 058
FERREXPO PLC16.91%2 675
LABRADOR IRON ORE ROYALTY CORPORATION28.89%2 120