¹ Excluding expenses related to Brumadinho and COVID-19.
² Including leases (IFRS 16).
³ Including recoverable taxes in 3Q20 (US$ 23 million)
Menu
EBITDA
Adjusted EBITDA
US$ million
3Q21
2Q21
3Q20
Net operating revenues
12,682
16,675
10,762
COGS
-5,836
5,805
-4,816
SG&A
-115
-133
-127
Research and development
-136
-141
-105
Pre-operating and stoppage expenses
-165
-191
-188
Expenses related to Brumadinho
-161
-185
-114
Expenses related to COVID-19 donations
-10
-16
-15
Other operational expenses
-26
-58
-98
Dividends and interests on associates and JVs
5
43
22
Adjusted EBIT
6,238
10,189
5,321
Depreciation, amortization & depletion
700
849
774
Adjusted EBITDA
6,938
11,038
6,095
Proforma adjusted EBITDA¹
7,109
11,239
6,224
¹ Excluding expenses related to Brumadinho and COVID-19 donations.
Adjusted EBITDA by business area
US$ million
3Q21
2Q21
3Q20
Ferrous Minerals
6,730
10,679
5,856
Base Metals
505
866
-792
Coal
32
-164
-213
Others
-158
-142
-211
Brumadinho expenses
-161
-185
-114
Expenses related to COVID-19 donations
-10
-16
-15
Total
6,938
11,038
6,095
Impact of Brumadinho provisions and expenses since 2019
US$ million
EBITDA impact
Payments
PV & FX adjust
Provisions balance 31dec20
EBITDA impact
Payments 9M21
FX and other adjustments² 9M21
Provisions balance 30set21
by 2020
By 2020
in 9M21
Decharacterization
3,241
-451
-501
2,289
-
-254
-178
1,857
Agreements & donations¹
8,056
-2,660
-821
4,575
-
-384
165
4,356
Total Provisions
11,297
-3,111
-1,322
6,864
-
-638
-13
6,213
Incurred expenses
1,240
-1240
-461
-461
Others
122
-
Total
12,569
-4,351
-461
-1.099
-13
¹ Includes Global Settlement, individual, labor and emergency indemnifications and tailing removal and containment works
2 Includes foreign exchange, present value and other adjustments
Menu
REVENUES
Net operating revenue by business area
US$ million
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
10,678
84.2
14,297
85.7
8,684
80.7
Iron ore fines
8,530
67.3
12,200
73.2
7,357
68.4
ROM
17
0.1
14
0.1
5
0
Pellets
2,009
15.8
1,947
11.7
1,195
11.1
Manganese ore
18
0.1
29
0.2
37
0.3
Ferroalloys
27
0.2
23
0.1
14
0.1
Others
77
0.6
84
0.5
76
0.7
Base Metals
1,574
12.4
2,180
13.1
1,904
17.7
Nickel
761
6
815
4.9
882
8.2
Copper
519
4.1
711
4.3
519
4.8
PGMs¹
-20
-0.2
169
1
155
1.4
Gold as by-product
166
1.3
163
1
218
2
Silver as by-product
5
0
13
0.1
13
0.1
Cobalt
31
0.2
24
0.1
28
0.3
Others²
112
0.9
285
1.7
88
0.8
Coal³
352
2.8
161
1
103
1
Metallurgical coal
222
1.8
99
0.6
76
0.7
Thermal coal
122
1
60
0.4
27
0.3
Others
78
0.6
37
0.2
71
0.7
Total
12,682
100
16,675
100
10,762
100.0
¹ In 3Q21, PGMs revenue was impacted by negative provisional price adjustments along with lower sales volumes
² Includes marketing activities
³ Includes US$ 8 million of general cargo in 3Q21 and US$ 2 million in 2Q21
Net operating revenue by destination
US$ million
3Q21
%
2Q21
%
3Q20
%
North America
387
3.1
578
3.5
283
2.6
867.1
USA
345
2.7
449
2.7
278
2.6
Canada
42
0.3
129
0.8
5
0
South America
1,846
14.6
1,780
10.7
862
8
Brazil
1,580
12.5
1,531
9.2
717
6.7
Others
266
2.1
249
1.5
145
1.3
Asia
8,506
67.1
11,426
68.5
7,800
72.5
China
5,673
44.7
8,976
53.8
6,416
59.6
15505.4
Japan
1,451
11.4
1,082
6.5
558
5.2
South Korea
555
4.4
439
2.6
296
2.8
Others
827
6.5
929
5.6
530
4.9
Europe
1,348
10.6
2,191
13.1
1,400
13
Germany
350
2.8
617
3.7
441
4.1
Italy
159
1.3
231
1.4
58
0.5
Others
839
6.6
1,343
8.1
901
8.4
Middle East
136
1.1
456
2.7
249
2.3
Rest of the World
459
3.6
244
1.5
168
1.6
Total
12,682
100
16,675
100
10,762
100
Menu
COGS SEGMENT
COGS by business segment
US$ million
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
4,178
71.6
3,879
66.8
2,961
61.5
Base Metals
1,187
20.3
1,459
25.1
1,230
25.5
Coal
364
6.2
340
5.9
321
6.7
Others
107
1.8
127
2.2
304
6.3
Total COGS¹
5,836
100
5,805
100
4,816
100
Depreciation
653
800
726
COGS, ex-depreciation
5,183
5,005
4,090
¹ COGS currency exposure in 3Q21 was as follows: 53.9% USD, 41.8% BRL, 4.1% CAD and 0.2% Other currencies
Menu
EXPENSES
Operating expenses
US$ million
3Q21
2Q21
3Q20
SG&A ex-depreciation
104
123
118
SG&A
115
133
127
Administrative
90
108
106
Personnel
29
52
50
Services
29
22
28
Depreciation
11
10
9
Others
21
24
19
Selling
25
25
21
R&D
136
141
105
Pre-operating and stoppage expenses
165
191
188
Depreciation
36
34
39
Expenses related to Brumadinho
161
185
114
Incurred expenses
161
185
114
Expenses related to COVID-19 donations
10
16
15
Other operating expenses
26
58
98
Total operating expenses
613
724
647
Depreciation
47
49
48
Operating expenses ex-depreciation
566
675
599
Menu
PRE-OPER. EXPENSES
Pre-operating and stoppage expenses break-down
US$ million
3Q21
2Q21
3Q20
Pre-operating and stoppage expenses
165
191
188
Depreciation
36
39
39
Pre-operating and stoppage expenses, ex-depreciation
129
152
149
Brumadinho - stoppage expenses
52
66
111
Minas Centrais Complex (Brucutu and others)
0
6
22
Mariana Complex (Alegria, Timbopeba and others)
0
0
4
Paraopeba Complex (Mutuca, Fábrica¹ and others)
25
32
52
Vargem Grande Complex (Vargem Grande¹, Pico and others)
27
28
33
Tubarão pellet plants
6
7
7
Ontario
53
59
0
Others
18
20
31
¹ Including pelletizing plants.
NET INCOME
Reconciliation of proforma EBITDA to net income
US$ million
3Q21
2Q21
3Q20
EBITDA Proforma
7,109
11,239
6,224
Brumadinho & COVID-19 donations
-171
-201
-129
Depreciation, depletion & amortization
-700
-849
-774
Dividends received
-5
-43
-22
Impairment & disposal of non-current assets
-2,390
-432
-298
Financial results
-373
350
-1,360
Equity results
56
-405
61
Income taxes
360
-2,073
-794
Net income
3,886
7,586
2,908
FINANC. RESULTS
Financial results
US$ million
3Q21
2Q21
3Q20
Financial expenses
-136
-177
-1,215
Gross interest
-157
-176
-208
Capitalization of interest
14
14
13
Shareholder debentures¹
152
-278
-553
Others
-128
273
-457
Financial expenses (REFIS)
-17
-10
-10
Financial income
91
86
69
Derivatives²
-458
856
-187
Currency and interest rate swaps
-472
788
-145
Others (commodities, etc)
14
68
-42
Foreign Exchange
372
-390
-18
Monetary variation
-242
-25
-9
Financial result, net
-373
350
-1,360
¹ The cash effect of the derivatives was a gain of US$ 22 million in 3Q21 and a gain of US$ 60 million in 2Q21.
Capex1
Project Execution and Sustaining by business area
US$ million
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
724
58
648
56.9
461
51.5
Base Metals
438
35.1
426
37.4
378
42.2
Coal
49
3.9
36
3.2
27
3
Energy and others
37
3
29
2.5
29
3.2
Total
1,248
100
1,139
100
895
100
Menu
Capex2
Project execution by business area
US$ million
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
136
47.7
113
53.8
40
36.4
Base Metals
113
39.6
69
32.9
69
62.7
Energy and others
36
12.6
28
13.3
1
0.9
Total
285
100
210
100
110
100
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
37
329
229
772
86%1
Capanema
18 Mt2
2H23
5
6
47
495
4%
Serra Sul 120 Mtpy3
20 Mt
2H24
50
76
168
1,502
3%
Base Metals Project
Salobo III
30-40 kt
2H22
107
578
329
1,056
81%
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
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
588
61.1
535
57.6
421
53.6
Base Metals
325
33.7
357
38.4
308
39.2
Nickel
290
30.1
325
35
282
35.9
Copper
35
3.6
32
3.4
26
3.3
Coal
49
5.1
36
3.9
27
3.4
Energy and others
1
0.1
1
0.1
27
3.4
Total
963
100
929
100
785
100
Menu
Capex3
Sustaining capex by type - 3Q21
US$ million
Ferrous Minerals
Base Metals
Coal
Energy and others
TOTAL
Enhancement of operations
242
139
36
1
418
Replacement projects
40
138
5
-
183
Filtration and dry stacking projects
130
-
-
-
130
Dam management
6
4
-
-
10
Other investments in dams and waste dumps
47
3
0
0
50
Health and Safety
47
23
3
0
73
Social investments and environmental protection
20
4
4
-
28
Administrative & Others
56
14
1
0
71
Total
588
325
49
1
963
Replacement projects progress indicator
Projects
Capacity
Estimated
Executed capex
Estimated capex
Physical progress (%)
(per year)
start-up
(US$ million)
(US$ million)
3Q21
Total
2021
Total
Gelado
9.7 Mt
2H22
24
247
100
428
85%
Voisey's Bay Mine Extension
45 kt
1H21
127
1,282
449
1,694
70%
Menu
DEBT
Debt indicators
US$ million
3Q21
2Q21
3Q20
Gross debt ¹
11,951
12,154
13,444
Lease (IFRS 16)
1,634
1,708
1,621
Gross debt and leases
13,585
13,862
15,065
Cash, cash equivalents and short-term investments
11,378
14,600
8,970
Net debt
2,207
-738
6,095
Currency swaps²
786
357
1,161
Refis
2,410
2,692
2,600
Brumadinho provisions
6,213
6,646
3,124
Samarco & Renova Foundation provisions
2,265
2,491
1,485
Expanded net debt
13,881
11,448
14,465
Total debt / adjusted LTM EBITDA (x)
0.4
0.5
0.8
Net debt / adjusted LTM EBITDA (x)
0.7
-0.02
0.44
Adjusted LTM EBITDA / LTM gross interest (x)
41.1
37.4
19.4
¹ Does not include leases (IFRS 16).
² Includes interest rate swaps.
Menu
INFO SEGMENT
Segment information ― 3Q21, 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
10,678
-3,785
-33
-55
-75
-
6,730
Iron ore fines
8,530
-3,064
-32
-53
-61
-
5,320
Pellets
2,009
-612
-2
-1
-10
-
1,384
Others ferrous
94
-76
-
-
-
-
18
Mn & Alloys
45
-33
1
-1
-4
-
8
Base Metals
1,574
-1,024
51
-43
-53
-
505
Nickel²
896
-782
57
-20
-52
-
99
Copper³
678
-242
-6
-23
-1
-
406
Coal
352
-314
-5
-1
-
-
32
Others
78
-60
-143
-37
-1
5
-158
Subtotal
12,682
-5,183
-130
-136
-129
5
7,109
Brumadinho impact
-
-
-161
-
-
-
-161
COVID-19 donations
-
-
-10
-
-
-
-10
Total
12,682
-5,183
-301
-136
-129
5
6,938
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$/t
3Q21
2Q21
3Q20
Iron ore fines quality premium
1.9
3
3.7
Pellets weighted average contribution
4.6
5.4
0.9
Iron ore fines and pellets total quality premium
6.6
8.4
4.6
Share of premium products¹ (%)
80%
82%
83%
¹ Composed of pellets, Carajás (IOCJ), Brazilian Blend Fines (BRBF) and pellet feed.
Volume sold
'000 metric tons
3Q21
2Q21
3Q20
Iron ore fines
67,304
66,740
65,607
ROM
540
479
162
Pellets
8,037
7,647
8,464
Manganese ore
111
169
428
Ferroalloys
16
15
15
Net operating revenue by product
US$ million
3Q21
2Q21
3Q20
Iron ore fines
8,530
12,200
7,357
ROM
17
14
5
Pellets
2,009
1,947
1,195
Manganese & Ferroalloys
45
52
51
Others
77
84
76
Total
10,678
14,297
8,684
Average prices
US$/ metric ton
3Q21
2Q21
3Q20
Iron ore - Metal Bulletin 65% index
190.4
232.9
129.2
Iron ore - Metal Bulletin 62% low alumina index
164.7
202.1
118.7
Iron ore - 62% Fe reference price
162.9
200
118.2
Provisional price at the end of the quarter
117.7
206.9
119.8
Iron ore fines Vale CFR reference (dmt)
142.5
202
123.1
Iron ore fines Vale CFR/FOB realized price
126.7
182.8
112.1
Pellets CFR/FOB (wmt)
249.9
254.7
141.2
Manganese ore
163.9
171.8
85.3
Ferroalloys
1,792.30
1,508.10
968.2
Volume sold by destination - Iron ore and pellets
'000 metric tons
3Q21
2Q21
3Q20
Americas
9,135
9,939
7,663
Brazil
7,666
7,633
5,639
Others
1,469
2,306
2,024
Asia
60,020
56,381
60,833
China
47,350
45,142
50,448
Japan
7,337
6,054
5,314
Others
5,333
5,185
5,071
Europe
4,722
6,215
3,104
Germany
1,096
825
468
France
625
1,539
591
Others
3,001
3,851
2,045
Middle East
486
1,566
1,616
Rest of the World
1,518
765
1,017
Total
75,881
74,866
74,233
Selected financial indicators - Ferrous Minerals
US$ million
3Q21
2Q21
3Q20
Net Revenues
10,678
14,297
8,684
Costs¹
-3,785
-3,446
-2,599
Expenses¹
-33
-59
-53
Pre-operating and stoppage expenses¹
-75
-91
-146
R&D expenses
-55
-44
-32
Dividends and interests on associates and JVs
-
22
2
Adjusted EBITDA
6,730
10,679
5,856
Depreciation and amortization
-412
-455
-403
Adjusted EBIT
6,318
10,224
5,453
Adjusted EBIT margin (%)
59.2
71.5
62.8
¹ Net of depreciation and amortization
Selected financial indicators - Iron ore fines
US$ million
3Q21
2Q21
3Q20
Adjusted EBITDA (US$ million)
5,320
9,206
5,090
Volume Sold (Mt)
67.3
66.7
65.6
Adjusted EBITDA (US$/t)
79
138
78
Selected financial indicators - Pellets
US$ million
3Q21
2Q21
3Q20
Adjusted EBITDA (US$ million)
1,384
1,438
748
Volume Sold (Mt)
8
7.6
8.5
Adjusted EBITDA (US$/t)
172
188
88
Selected financial indicators - Ferrous ex Manganese and Ferroalloys
US$ million
3Q21
2Q21
3Q20
Adjusted EBITDA (US$ million)
6,722
10,671
5,861
Volume Sold (Mt)¹
75.9
74.9
74.2
Adjusted EBITDA (US$/t)
89
143
79
¹ Volume including iron ore fines, pellets and ROM.
Menu
IO_UNIT COST
Iron ore fines cash cost and freight
3Q21
2Q21
3Q20
Costs (US$ million)
Vale's iron ore fines C1 cash cost (A)
1,529
1,479
977
Third-party purchase costs¹ (B)
397
378
209
Vale's C1 cash cost ex-third-party volumes (C = A - B)
1.132
1.102
768
Sales volumes (Mt)
Volume sold (ex-ROM) (D)
67.3
66.7
65.6
Volume sold from third-party purchases (E)
4.8
4.8
4.1
Volume sold from own operations (F = D - E)
62.5
61.9
61.5
Iron ore fines cash cost (ex-ROM, ex-royalties), FOB (US$ /t)
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$/t
3Q21
2Q21
3Q20
Vale's C1 cash cost ex-third-party purchase cost
18.1
17.8
12.5
Third party purchases cost adjustments
4.6
4.4
2.4
Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t)
22.7
22.2
14.9
Iron ore fines freight cost (ex-bunker oil hedge)
20.2
17.7
15.7
Iron ore fines distribution cost
1.2
1.2
0.7
Iron ore fines stoppage expenses² related to Brumadinho
0.7
0.9
1.6
Iron ore fines expenses² & royalties
7.1
6.7
4.5
Iron ore fines moisture adjustment
4.5
4.2
3.3
Iron ore fines quality adjustment
-1.9
-3
-3.7
Iron ore fines EBITDA break-even (US$/dmt)
54.6
49.9
37
Iron ore fines pellet adjustment
-4.6
-5.4
-0.9
Iron ore fines and pellets EBITDA break-even (US$/dmt)
49.9
44.5
36.1
Iron ore fines sustaining investments
8.1
7.5
5.8
Iron ore fines and pellets cash break-even landed in China (US$/dmt)
58
52
41.9
¹ Measured by unit cost + expenses + sustaining investment adjusted for quality
² Net of depreciation and includes dividends received
[1] Does not include the impact from the iron ore fines and pellets pricing system mechanism.
Expenses - iron ore fines
US$ millions
3Q21
2Q21
3Q20
Selling
19
17
13
R&D
53
43
31
Pre-operating and stoppage expenses
61
74
121
Brumadinho stoppage expenses
49
61
102
Others
12
31
19
Other expenses
13
44
38
Total expenses
146
178
203
COGS BUSINESS QUARTER
IRON ORE COGS - 2Q21 x 3Q21
Variance drivers
US$ million
2Q21
Volume
Exchange rate
Others
Total variation
3Q21
C1 cash costs
1,479
13
8
29
50
1,529
Freight
925
17
-
135
152
1,077
Distribution costs
80
1
-
1
2
82
Royalties & others
332
3
-
41
44
376
Total costs before depreciation and amortization
2,816
34
8
206
248
3,064
Depreciation
312
3
3
-31
-25
287
Total
3,128
37
11
175
223
3,351
Nickel COGS, excluding marketing activities - 2Q21 x 3Q21
Variance drivers
US$ million
2Q21
Volume
Exchange rate
Others
Total variation
3Q21
Nickel operations
696
-67
-11
52
-26
670
Depreciation
230
-3
-4
-96
-103
127
Total
926
-70
-15
-44
-129
797
Copper COGS - 2Q21 x 3Q21
Variance drivers
US$ million
2Q21
Volume
Exchange rate
Others
Total variation
3Q21
Copper operations
229
33
2
-22
13
242
Depreciation
41
27
-
-31
-4
37
Total
270
60
2
-53
9
279
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PELLETS-EBITDA
Pellets - EBITDA
3Q21
2Q21
3Q20
US$ million
US$/wmt
US$ million
US$/wmt
US$ million
US$/wmt
Net revenues / Realized price
2,009
249.9
1,947
254.7
1,195
141.2
Dividends received (Leased pelletizing plants)
-
-
22
2.9
-
-
Cash costs (Iron ore, leasing, freight, overhead, energy and other)
-612
-76.1
-520
-68
-431
(50.9)
Pre-operational & stoppage expenses
-10
-1.2
-13
-1.7
-17
(2.0)
Expenses (Selling, R&D and other)
-3
-0.4
2
0.3
1
0.1
EBITDA
1,384
172.2
1,438
188
748
88.4
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BASE METALS
Base Metals EBITDA overview - 3Q21
US$ million
North Atlantic
PTVI Site
Onça Puma
Sossego
Salobo
Others
Subtotal
Marketing activities
Total Base Metals
Base Metals
Net Revenues
611
271
87
248
430
-189
1,458
116
1,574
Costs
-635
-145
-55
-83
-159
165
-912
-112
-1,024
Selling and other expenses
55
-
-2
-3
-
1
51
-
51
Pre-operating and stoppage expenses
-51
-
-
-
-1
-1
-53
-
-53
R&D
-18
-1
-
-8
-
-16
-43
-
-43
EBITDA
-38
125
30
154
270
-40
501
4
505
Average prices
US$/ metric ton
3Q21
2Q21
3Q20
Nickel - LME
19,125
17,359
14,210
Copper - LME
9,372
9,700
6,519
Nickel - realized prices
18,211
17,183
15,824
Copper - realized prices¹
8,187
9,653
6,268
Gold (US$/oz)
1,798
1,708
2,177
Silver (US$/oz)
24.15
25.05
22.53
Cobalt (US$/t)
56,859
43,039
55,876
¹Considers Salobo and Sossego operations.
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NICKEL
Nickel operations, excluding marketing activities - EBITDA by operation
US$ million
3Q21
2Q21
3Q20
North Atlantic operation¹
-38
317
294
PTVI
125
72
85
Onça Puma
30
35
1
Others²
-22
5
32
Total
95
429
412
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
3Q21
2Q21
3Q20
Nickel
761
815
794
Copper
9
173
129
Gold as by-product
2
18
27
Silver as by-product
1
8
7
PGMs
-20
169
155
Cobalt
31
24
19
Others
-4
21
4
Total
780
1,228
1,135
Volume sold - Nickel operations
'000 metric tons
3Q21
2Q21
3Q20
Nickel¹
42
47
50
Upper Class I
23
26
15
Lower Class I nickel
6
8
20
Class II nickel
9
10
12
Intermediates
4
3
5
VNC eliminations²
-
-
-2
Copper
3
18
18
Gold as by-product ('000 oz)
1
11
14
Silver as by-product ('000 oz)
34
333
367
PGMs ('000 oz)
11
69
60
Cobalt (metric ton)
538
568
333
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.
¹ Includes the inferred NLC tariff components related to fixed and variable costs and excludes royalties.
² Up until 2Q21, it included 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
3Q21
2Q21
3Q20
Net operating revenue
12,682
16,675
10,762
Cost of goods sold and services rendered
-5,836
-5,805
-4,816
Gross profit
6,846
10,870
5,946
Gross margin (%)
54
65.2
55.2
Selling and administrative expenses
-115
-133
-127
Research and evaluation expenses
-136
-141
-105
Pre-operating and operational stoppage
-165
-191
-188
Brumadinho event
-161
-185
-114
Other operational expenses, net
-36
-74
-113
Impairment and disposal of non-current assets
-2,390
-432
-298
Operating income
3,843
9,714
5,001
Financial income
91
86
69
Financial expenses
-136
-177
-1,215
Other financial items, net
-328
441
-214
Equity results and other results in associates and joint ventures
128
-454
-40
Income (loss) before income taxes
3,598
9,610
3,601
Current tax
-2,464
-1,201
-743
Deferred tax
2,824
-872
-51
Net income
3,958
7,537
2,807
Loss attributable to noncontrolling interests
72
-49
-101
Net income attributable to Vale's stockholders
3,886
7,586
2,908
Earnings per share (attributable to the Company's stockholders - US$):
Basic and diluted earnings per share (attributable to the Company's stockholders - US$)
0.76
1.49
0.57
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EQUITY INCOME
Equity income (loss) by business segment
US$ million
3Q21
%
2Q21
%
3Q20
%
Ferrous Minerals
58
29
55
52
19
-317
Base Metals
-
-
-
-
-1
17
Coal
-
-
-
-
-
-
Others
140
71
50
48
-24
400
Total
198
100
105
100
-6
100
1 VNC results are reported in Others segment Information
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BALANCE SHEET
Balance sheet
US$ million
9/30/2021
6/30/2021
9/30/2020
Assets
Current assets
19,991
25,403
17,544
Cash and cash equivalents
10,857
13,649
8,845
Short term investments
521
951
125
Accounts receivable
873
4,954
3,014
Other financial assets
1,366
214
454
Inventories
5,085
4,701
4,329
Recoverable taxes
824
668
474
Others
405
266
303
Non-current assets held for sale
60
-
-
Non-current assets
14,790
14,235
15,799
Judicial deposits
1,221
1,326
2,040
Other financial assets
162
1,430
2,472
Recoverable taxes
1,322
1,440
1,071
Deferred income taxes
11,402
9,338
9,610
Others
683
701
606
Fixed assets
52,099
57,078
46,638
Total assets
86,880
96,716
79,981
Liabilities
Current liabilities
16,074
14,335
10,684
Suppliers and contractors
4,096
3,777
3,099
Loans, borrowings and leases
1,345
992
1,024
Other financial liabilities
1,557
1,547
1,782
Taxes payable
2,594
1,678
807
Settlement program (REFIS)
330
356
313
Provisions
1,176
1,156
1,016
Liabilities related to associates and joint ventures
1,551
1,467
688
Liabilities related to Brumadinho
2,336
2,223
936
De-characterization of dams
435
454
320
Dividends and interest on capital
35
27
-
Others
606
658
699
Liabilities associated with non-current assets held for sale
13
-
-
Non-current liabilities
36,717
40,022
36,088
Loans, borrowings and leases
12,240
12,870
14,041
Participative stockholders' debentures
4,128
4,687
2,533
Other financial liabilities
2,825
3,027
2,756
Settlement program (REFIS)
2,080
2,336
2,287
Deferred income taxes
1,928
1,985
1,635
Provisions
7,274
8,003
7,781
Liabilities related to associates and joint ventures
714
1,024
797
Liabilities related to Brumadinho
2,020
2,268
614
De-characterization of dams
1,422
1,701
1,254
Streaming transactions
1,936
1,961
2,017
Others
150
160
373
Total liabilities
52,791
54,357
46,772
Stockholders' equity
34,089
42,359
33,209
Total liabilities and stockholders' equity
86,880
96,716
79,981
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CASH FLOW
Cash flow
US$ million
3Q21
2Q21
3Q20
Cash flow from operations
10,194
9,277
5,567
Interest on loans and borrowings paid
-173
-138
-203
Cash received (paid) on settlement of Derivatives, net
22
60
-130
Interest on participative stockholders debentures paid
-
-193
-
Income taxes (including settlement program)
-992
-1,280
-450
Net cash provided by operating activities
9,051
7,726
4,784
Cash flows from investing activities:
Short-term investment
424
543
-
Capital expenditures
-1248
-1139
-872
Additions to investments
0
0
0
Investment in fund applications
-
-
-31
Acquisition of NLC, net of cash
-
-2345
-
Dividends received from joint ventures and associates
5
43
2
Other investment activities, net
18
-189
-106
Net cash used in investing activities
-801
-3,087
-1,007
Cash flows from financing activities:
Loans and financing:
Loans and borrowings from third-parties
-
10
1,800
Payments of loans and borrowings from third-parties
-111
-179
-5,265
Lease payments
-58
-49
-45
Payments to stockholders:
Dividends and interest on capital paid to stockholders
-7,391
-2,208
-3,327
Dividends and interest on capital paid to noncontrolling interest
-3
-3
-3
Share buyback program
-2,841
-2,004
-
Net cash used in financing activities
-10,404
-4,433
-6,840
Increase (decrease) in cash and cash equivalents
-2,154
206
-3,063
Cash and cash equivalents in the beginning of the period
13,649
12,883
12,113
Effect of exchange rate changes on cash and cash equivalents
-638
560
-205
Cash and cash equivalents at the end of period
10,857
13,649
8,845
Non-cash transactions:
-
-
Additions to property, plant and equipment - capitalized loans and borrowing costs
14
14
13
Cash flows from operating activities:
-
-
Income before income taxes
3,598
9,610
3,601
Adjusted for:
-
-
Provisions related to Brumadinho
-
-
-
Equity results and other results in associates and joint ventures
-128
454
40
Impairment and disposal of non-current assets
2,390
432
298
Depreciation, depletion and amortization
700
849
774
Financial results, net
373
-350
1,360
Change in assets and liabilities
-
-
-
Accounts receivable
3,889
-1,105
-276
Inventories
-574
-188
-298
Suppliers and contractors
338
291
214
Provision - Payroll, related charges and other remunerations
60
82
177
Payments related to Brumadinho
-186
-303
-218
Other assets and liabilities, net
-266
-495
-105
Cash flow from operations
10,194
9,277
5,567
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AVG PRICES
Average realized prices
US$/ton
3Q21
2Q21
3Q20
Iron ore fines CFR reference (dmt)
142.5
202
123.1
Iron ore fines Vale CFR/FOB realized price
126.7
182.8
112.1
Pellets CFR/FOB (wmt)
249.9
254.7
141.2
Manganese ore
163.9
171.8
85.3
Ferroalloys
1,792.30
1,508.10
968.2
Thermal coal
98.6
72.4
47
Metallurgical coal
193.2
139.7
93.8
Nickel
18,211
17,183
15,824
Copper¹
7,933
9,590
6,441
Gold (US$/oz)
1,798
1,708
2,177
Silver (US$/oz)
24.15
25.05
22.53
Cobalt (US$/t)
56,859
43,039
55,876
¹Considers Salobo, Sossego and North Atlantic operations.
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Volume
Volume sold - Minerals and metals
'000 metric tons
3Q21
2Q21
3Q20
Iron ore fines
67,304
66,740
65,607
ROM
540
479
162
Pellets
8,037
7,647
8,464
Manganese ore
111
169
428
Ferroalloys
16
15
15
Thermal coal
1,490
831
572
Metallurgical coal
1,150
713
809
Nickel
42
47
50
Copper
65
74
81
Gold as by-product ('000 oz)
92
95
100
Silver as by-product ('000 oz)
210
522
560
PGMs ('000 oz)
11
69
60
Cobalt (metric ton)
538
568
333
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OPERATING MARGIN
Operating margin by segment (EBIT adjusted margin)
%
3Q21
2Q21
3Q20
Ferrous Minerals
59.2
71.5
62.8
Base Metals
20.5
26.4
31.3
Coal
-5.4
-112.4
-206.8
Total
49.2
61.1
49.4
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ANNEX 3
(a) Adjusted EBIT
US$ million
3Q21
2Q21
3Q20
Net operating revenues
12,682
16,675
10,762
COGS
-5,836
-5,805
-4,816
Sales and administrative expenses
-115
-133
-127
Research and development expenses
-136
-141
-105
Pre-operating and stoppage expenses
-165
-191
-188
Brumadinho event
-161
-185
-114
Other operational expenses, net
-36
-74
-113
Dividends received and interests from associates and JVs
5
43
22
Adjusted EBIT
6,238
10,189
5,321
Reconciliation between adjusted EBITDA and operational cash flow
US$ million
3Q21
2Q21
3Q20
Adjusted EBITDA
6938
11038
6,095
Working capital:
Accounts receivable
3,889
-1,105
-276
Inventories
-574
-188
-298
Suppliers and contractors
338
291
214
Provision - Payroll, related charges and other remunerations
60
82
177
Payments related to Brumadinho
-186
-303
-218
Provisions related to Brumadinho
-
-
-
Others
-271
-538
-127
Cash provided from operations
10,194
9,277
5,567
Income taxes paid - including settlement program
-992
-1280
-450
Interest on loans and borrowings paid
-173
-138
-203
Interest on participative shareholders' debentures paid
-
-193
-
Cash received (paid) on settlement of Derivatives, net
22
60
-130
Net cash provided by (used in) operating activities
9,051
7,726
4,784
Reconciliation between adjusted EBITDA and net income (loss)
US$ million
3Q21
2Q21
3Q20
Adjusted EBITDA
6,938
11,038
6,095
Depreciation, depletion and amortization
-700
-849
-774
Dividends received and interest from associates and joint ventures
-5
-43
-22
Impairment and disposal of non-current assets
-2,390
-432
-298
Operating income
3,843
9,714
5,001
Financial results
-373
350
-1,360
Equity results and other results in associates and joint ventures
128
-454
-40
Income taxes
360
-2,073
-794
Net income
3,958
7,537
2,807
Loss attributable to noncontrolling interests
72
-49
-101
Net income attributable to Vale's stockholders
3,886
7,586
2,908
(c) Net debt
US$ million
3Q21
2Q21
3Q20
Gross debt
11,951
12,154
13,444
Leases
1,634
1,708
1,621
Cash and cash equivalents¹
11,378
14,600
8,970
Net debt
2,207
-747
6,095
¹ Including financial investments
(d) Gross debt / LTM Adjusted EBITDA
US$ million
3Q21
2Q21
3Q20
Gross debt and leases / LTM Adjusted EBITDA (x)¹
0.4
0.5
0.9
Gross debt and leases / LTM operational cash flow (x)¹
Vale SA published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2021 07:18:06 UTC.
Vale S.A. is one of the world's leading metallurgy and mining groups. Revenues break down by family of products as follows:
- ferrous minerals and metals (80,2%): ferrous minerals (85.1% of revenues; 254 Mt sold in 2020), ferrous mineral granules (13.2%; 31.2 Mt), iron alloys and manganese (0.7%; 1.4 Mt), and other (1%);
- non-ferrous minerals and metals (17.9%): nickel, precious metals, and cobalt (69.7% of revenues; 211 Kt of nickel sold) and copper (30.3%; 247 Kt);
- coal (1.2%): metallurgical coal (2.9 Mt sold) and thermal coal (3 Mt);
- other (0.7%).
Revenues are distributed geographically as follows: Brazil (7.3%), the United States (2.6%), Americas (1.5%), China (57.8%), Japan (5.5%), Asia (8.2%), Europe (13.3%) and Middle East/Africa/Oceania (3.8%).
VALE S.A. 
