Vale (VALE3) Investor Day 2024 summary

Safety and Operational Excellence

• Achieved an industry benchmark injury frequency rate of 1.1 in 2024, with significant progress in dam de-characterization, eliminating 53% of upstream dams and reducing high-risk dams to one, targeted for removal by 2025.

• Implemented the Global Industry Standard for Tailings Management (GISTM) across all structures, with two more to be compliant by August 2025.

• Enhanced asset monitoring and AI-driven maintenance, reducing corrective maintenance and increasing production efficiency, notably at S11D and Vargem Grande.

• Safety improvements have led to a 46% reduction in process safety events and a 33% reduction in lost time accidents over two years.

Strategic Direction and Portfolio Evolution

• New leadership is emphasizing a performance-oriented culture, innovation, and talent development, aiming for a resilient, competitive portfolio by 2030.

• Focus on high-grade iron ore with increased flexibility to adjust product mix to market needs, and a customer-centric approach through Mega Hubs and tailored solutions.

• Accelerating copper growth, targeting 420-500kt by 2030 and up to 700kt by 2035, leveraging brownfield expansions, new projects, and partnerships.

• Asset-light model for new supply chain hubs, with over 30Mt of DR feed secured for the next decade and partnerships in key regions like Oman.

• Portfolio optimization aligns with decarbonization trends, supporting new steelmaking processes and regional energy advantages.

Financial Guidance and Cost Management

• 2024 iron ore production expected at 328Mt, with 2025 guidance at 325-335Mt, 2026 at 340-360Mt, and 2030 at ~360Mt; agglomerates guidance set at 60-70Mt by 2030.

• C1 cash cost for iron ore closing 2024 at ~$22/t, guided to $20.5-22/t in 2025, below $20/t by 2026, and $18-19.5/t by 2030, driven by efficiency programs and higher volumes.

• All-in cost for iron ore revised to ~$50/t for 2026 and targeted below $50/t by 2030, mainly due to lower market premiums, while controllable costs continue to improve.

• CapEx target maintained at $6.5B annually, with a focus on creative, high-return growth projects and disciplined capital allocation.

• Expanded Net Debt target range set at $10-20B, with a $15B sweet spot; excess cash to be returned to shareholders.