CSN Mineração (CMIN3) investor relations material

Executive summary

• Achieved record iron ore production of 11.6 million tons, up 11.3% year-over-year and 13.6% sequentially, with record sales of 11.8 million tons, up 9.6% year-over-year.

• Net income of R$116 million reversed the previous quarter's loss, driven by higher sales and favorable exchange impacts.

• Adjusted EBITDA was R$1.27 billion with a margin of 37.2%, down year-over-year due to lower iron ore prices despite operational efficiency.

• Operational efficiency, logistics optimization, and cost control offset lower iron ore prices and higher sea freight costs.

• Distributed R$1.51 billion in dividends and interest on equity in July 2025.

Financial highlights

• Net revenue reached R$3.41 billion, up 2.5% year-over-year and stable sequentially, as higher volumes offset lower prices.

• Adjusted free cash flow was R$768 million, up 40.6% sequentially, supported by working capital release.

• C1 cash cost at US$20.8/ton, a 1% decrease from the previous quarter and below guidance.

• EBITDA margin dropped 11.5 percentage points year-over-year due to iron ore price decline.

• Gross profit fell 12.4% sequentially and 25.3% year-over-year to R$1.03 billion; gross margin at 30.2%.

Outlook and guidance

• Confident in meeting or exceeding 2025 production guidance of 42–43.5 million tons, with 21.8 million tons produced in 1H25.

• Expansion capex increased, with focus on P15 project and dam tailings recovery; capex was R$500 million in Q2.

• Expectation for iron ore prices to remain in the US$100–$110/ton range, closely tied to Chinese demand.

• P15 project ramp-up expected to enhance product quality and premiums from 2027.