VALE S.A. Vale informs on estimates update
Rio de Janeiro, December 7th, 2022 - Vale S.A. ("Vale") informs that it has updated its estimates and that these must be considered as such:
Estimated production volumes
| Year | 2022 | 2023 | 2026 | 2030+ |
| Iron ore (Mt) | ~310 | 310-320 | 340-360 | >360 |
| Pellets & briquettes (Mt) | ~33 | 36-40 | 50-55 | ~100 |
| Nickel (kt) | ~180 | 160-175 | 230-245¹ | >300² |
| Copper (kt) | ~260 | 335-370 | 390-420 | ~900 |
¹Including indirect exposure to total nickel sourced from PTVI mines for Bahodopi and Pomalaa.
²Including indirect exposure to total nickel sourced from PTVI mines for Bahodopi, Pomalaa and Sorowako HPAL.
All-in components
| Year | 2022 | 2023 | 2026 | 2030+ |
| Iron ore Premiums¹ (US$/t) | ~7 | ~8 | 8 - 12 | 18 - 25 |
| Iron ore C1 cash cost - ex 3rd party purchase² (US$/t) | 19.5 - 20 | 20 - 21 | - | - |
| Iron ore All-in costs3 (US$/t) | 49 | 47 | 42 | - |
| Nickel All-in costs4 (US$/t) | 13,000 | 13,000 | 10,000 | - |
| Copper All-in costs5 (US$/t) | 4,000 | 3,200 | 2,600 | - |
¹ Including iron ore fines quality adjustment and iron ore fines pellet adjustment.
² 2022 BRL/USD exchange rate of 5.16 and 2023 BRL/USD exchange rate of 5.20. In 2023 includes tailing filtration plants ramp-up, health & safety, dam management, geotechnics, risk and sustainability costs.
3 Approximately all-in costs after by-products before sustaining investment. Decrease in next years considers higher premiums and share of agglomerated products, lower bunker costs, higher volumes, and fixed cost dilution.
4 Approximately all-in costs after by-products before sustaining investment. Decrease in next years considers higher volume of premium materials in the mix including by-products, and fixed cost dilution (VBME and CCM 1 ramp-up), Onça Puma 2nd Furnace.
5 Approximately all-in costs after by-products before sustaining investment. Decrease in next years considers higher volumes and fixed cost dilution, Salobo 3 ramp-up and productivity improvements.
Potential contribution of EBITDA generated by higher Iron ore premiums and volumes
In Ferrous business, higher iron ore all-in premium and volumes could potentially contribute with US$ 4 billion EBITDA by 2026, based on 3Q22 Iron Ore EBITDA margin of approximately US$ 50/t and expected iron ore volumes of approximately 310Mt in 2022.
Mineral exploration R&D expenses
| Year | 2022 | 2023 | 2024 | 2025 | 2026 |
| Exploration (US$ million) | ~170 | ~180 | ~250 | ~300 | ~350 |
Capital expenditure (US$ billion)
| Year | 2022 | 2023 | 2024-2027 (average per year) |
| CAPEX (US$ billion) | ~5.5 | 6.0 | 6.0 - 6.5 |
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Disclaimer
Vale SA published this content on 07 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2022 12:41:01 UTC.
