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 structures 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.

• Near-miss reports increased 420% year-on-year, with 80% addressed, and process safety events reduced by 46%.

• Asset monitoring centers and AI-driven maintenance have reduced corrective maintenance and improved productivity, notably at S11D.

• Circularity initiatives target 30+ million tons of reprocessed materials annually by 2030, supporting waste-to-value and decarbonization.

Strategic Vision and Portfolio Evolution

• New 2030 vision focuses on a resilient, competitive portfolio with flexibility to adapt to market cycles, emphasizing high-grade iron ore, copper growth, and customer-centric solutions.

• Mega Hubs strategy advances with agreements in five countries, targeting over 30 Mt of direct reduction feed demand in the next decade and new concentration facilities in Oman and other regions.

• Copper production is targeted to reach 500 kt by 2030, with potential to double to 700 kt by 2035 through brownfield expansions, new projects, and partnerships.

• Iron ore production guidance is 328 Mt for 2024, targeting 340-360 Mt by 2026 and ~360 Mt by 2030, with reused tailings contributing over 30 Mt by 2035.

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

Financial Guidance and Cost Management

• C1 cash cost for iron ore stabilized at $22/t in 2024, targeted to fall to $20.5-$22 in 2025, below $20 by 2026, and $18-$19.5 by 2030 (nominal terms).

• All-in iron ore cost guidance for 2026 revised upward to ~$50/t, with a target below $50/t by 2030, mainly due to lower market premiums, but C1 cost improvements remain on track.

• CapEx target maintained at ~$6.5 billion annually, with fixed expenditures for Iron Ore Solutions at ~$6.1B in 2024 and ~$6.0B in 2025.

• Expanded Net Debt target range reaffirmed at $10-$20 billion, with $15 billion as the sweet spot; excess cash to be returned to shareholders.

• Cash disbursements for legacy issues (Brumadinho, Samarco) are set to decline after peaking at $3.7B in 2025, with most agreements completed by 2031.