6-K 1 vale20241015_6k.htm 6-K

 

 

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the

Securities Exchange Act of 1934

 

For the month of

 

October 2024

 

Vale S.A.

 

Praia de Botafogo nº 186, 18º andar, Botafogo
22250-145 Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

(Check One) Form 20-F x Form 40-F ¨

 

 

 

 
 



·Vale’s Q3 performance was marked by record iron ore output since 4Q18 and an increase in the production guidance for 2024. In copper, ore processed at Salobo 1 & 2 increased by 30% y/y supported by stronger mill performance. In nickel, performance of the Sudbury mines drove a 20% increase in mill throughput y/y.
·Iron ore production reached 91.0 Mt, 4.7 Mt (+5%) higher y/y, driven by improved performance at S11D, Itabira and Brucutu. As previously announced, Vale has revised its production guidance upward to 323-330 Mt (from 310-320 Mt), reflecting continued improvements on operational stability and asset reliability. Pellets production totaled 10.4 Mt, 1.2 Mt (+13%) higher y/y. Iron ore sales were 81.8 Mt, up 1.3 Mt (+2%) y/y.
·Copper production totaled 85.9 kt, 4.3 kt (+5%) higher y/y, reflecting stronger performance across all operations, which was partially offset by the impact of an incident in a conveyor belt at the Salobo 3 plant in June.  
·Nickel production totaled 47.1 kt, 5.0 kt (+12%) higher y/y, mainly reflecting stronger asset performance in Sudbury and the continued ramp-up of Voisey’s Bay underground mines.

 

 

 

 

 

Highlights

 


  Production Summary		                  
000’ metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y 2024 guidance
Iron ore1 90,971 80,598 12.9% 86,238 5.5% 242,395  231,755      4.6% 323-330 Mt
Pellets 10,363 8,895 16.5% 9,175 12.9% 27,724 26,604      4.2% 38-42 Mt2
Copper 85.9 78.6 9.3% 81.6 5.3% 246.3 227.5      8.3% 320-355 kt
Nickel 47.1 27.9 68.8% 42.1 11.9% 114.4 120.0    -4.7% 153-168 kt3
                                   

 

1 Including third-party purchases, run-of-mine and feed for pelletizing plants.

2 Iron ore agglomerates guidance, including iron ore pellets and briquettes.

3 Nickel guidance was updated on September 11, 2024, to reflect the impact of PTVI deconsolidation, following the partial divestment completed in June 2024.

 


  Sales Summary		                  
000’ metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Iron ore 81,838 79,792 2.6% 80,559 1.6% 225,456 210,591 7.1%
Fines1 69,344 68,512 1.2% 69,714 -0.5% 190,402 178,904 6.4%
Pellets 10,143 8,864 14.4% 8,613 17.8% 28,232 25,556 10.5%
ROM 2,351 2,416 -2.7% 2,232 5.3% 6,822 6,132 11.3%
Copper 75.2 76.1 -1.2% 73.8 1.9% 228.1 210.3 8.5%
Nickel 40.7 34.3 18.7% 39.2 3.8% 108.1 119.6 -9.6%
                               

 

1 Including third-party purchases.

 


  Price Realization Summary		              
US$/t 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Iron ore fines (CFR/FOB, wmt) 90.6 98.2 -7.7% 105.1 -13.8% 96.1 103.7 -7.3%
Iron ore pellets (CFR/FOB, wmt) 148.2 157.2 -5.7% 161.2 -8.1% 158.7 161.3 -1.6%
Copper1 9,016 9,202 -2.0% 7,731 16.6% 8,651 7,969 8.6%
Nickel 17,012 18,638 -8.7% 21,237 -19.9% 17,477 23,203 -24.7%
                           

 

1 Average realized price for copper operations only (Salobo and Sossego). Average realized copper price for all operations, including copper sales originated from nickel operations, was US$ 9,053/t in 3Q24.

 
 

 

Iron ore and pellets operations

·Northern System: production increased by 1.9 Mt y/y, driven by S11D’s robust performance at 22.1 Mt (+2.7 Mt y/y), making this the seventh quarter of y/y production improvements. Serra Norte’s output was slightly lower y/y (-0.5 Mt y/y), in line with the production plan. Shipments from the Ponta da Madeira port set a quarterly record since 2021, totaling 50.6 Mt, reflecting enhanced operational stability.

 

·Southeastern System: production increased by 3.6 Mt y/y, driven by (i) enhanced performance at the Conceição 1 & 2 plants in Itabira, as a result of reduced maintenance downtime following the concentration of activities in the first semester, during the rainy season, and (ii) higher output at Brucutu, attributed to the resumption of three wet processing lines last year and the commissioning of a fourth line in September this year, with the site achieving its highest quarterly production since 2019.

 

·Southern System: production was 0.9 Mt lower y/y, primarily due to (i) lower third-party purchases and (ii) reduced high-silica products output at the Vargem Grande complex due to market conditions. These effects were partially offset by increased production at Viga, following maintenance works in the 3Q23. In September, the commissioning of wet processing operations in the Vargem Grande 1 Project started. This will allow the Vargem Grande complex to resume approximately 15 Mtpa of iron ore production and improve the average quality by approximately 2% of contained iron.

 

·Pellets: production was 1.2 Mt higher y/y, achieving its highest quarterly production since 2018, driven by higher pellet feed availability from the Brucutu and Itabira mines, increasing pellet production at the Tubarão site.

 

·Iron ore sales were 1.3 Mt higher y/y, totaling 81.8 Mt, supported by 18% higher pellet sales. Considering the higher pellet production and healthy demand in the quarter, pellet sales increased to 10.1 Mt (+18% y/y), supporting overall iron ore sales, which totaled 81.8 Mt (+2% y/y). The 5.5 Mt inventory build-up was mainly due to cargos in transit along the supply chain as production seasonally increased in Q3. These inventories will be converted into sales in Q4.

 

·The all-in premium improved by US$ 1.8/t q/q, totaling US$ 1.7/t[1], driven by higher average quality of the product portfolio. This improvement is a result of the increased availability of high-quality products, mainly from the Northern System, allowing for higher BRBF sales and the proactive decision to reduce direct sales of high-silica products, due to market conditions.

 

·The average realized iron ore fines price was US$ 90.6/t, US$ 7.6/t lower q/q despite iron ore reference prices having decreased by US$ 12.0/t in the period. The lower decline vs. the reference price is attributed to an enhanced product portfolio and the positive effect from provisional pricing adjustments, given higher-than-average forward prices in the last day of the quarter. The average realized iron ore pellet price was US$ 148.2/t, US$ 9.0/t lower q/q, due to lower iron ore prices.

 

 

 

 

 

[1] Iron ore fines premium of US$ -1.9/t and the weighted average contribution of the pellet business of US$ 3.6/t.

   
 

- 2 -

 

Copper operations

 

·Salobo: copper production decreased by 3.0 kt y/y, mainly reflecting the impact of the conveyor belt fire that occurred at the Salobo 3 plant and lower feed grades, as per plan. Salobo 1&2 plants continue to perform well, reporting a 30% increase in ore processed y/y.

 

·Sossego: copper production increased by 2.6 kt y/y, mainly because of higher mined volumes and higher feed grade to the mill, as per the plan. Sequentially, production increased by 4.3 kt as the mine’s operational license was reestablished, enabling the processing of higher-feed grades from mined material.

 

·Canada: copper production increased by 4.7 kt y/y, mainly reflecting improved mining performance in Sudbury and shorter mine and mill maintenance periods y/y. Also, production was positively impacted by the ramp-up of VBME and higher copper precipitates output in Thompson.

 

·Payable copper sales[2] totaled 75.2 kt in the quarter, up 1.4 kt y/y, mainly reflecting higher production. Sales in the quarter were lower than production, mainly due to in-transit volumes and Vale Base Metals’ commercial strategy.

 

·The average copper realized price was US$ 9,016/t, 2.0% lower q/q, mainly due to lower LME reference prices.

[2] Sales volumes are lower than production volumes due to payable copper vs. contained copper: part of the copper contained in the concentrates is lost in the smelting and refining process, hence payable quantities of copper are approximately 3.5% lower than contained volumes.

   
 

- 3 -

 

 

Nickel operations

 

 

·Sudbury-sourced ore: finished nickel production increased by 5.6 kt y/y, esulting from the improved performance of the mine-mill-smelter-refinery flowsheet. Sudbury mines and mill performed well, with a 20% increase in ore production and mill throughput y/y. On a sequential basis, production increased by 9.2 kt as smelter and refinery operations resumed after biennial maintenance.

 

·Thompson-sourced ore: finished nickel production was 1.1 kt higher y/y, mainly because of the higher availability of the Long Harbour refinery.

 

 

·Voisey’s Bay-sourced ore: finished nickel production increased by 2.2 kt y/y, driven by the availability of Voisey’s Bay-sourced feed at Long Harbour, as higher nickel grade from underground mines continued to ramp-up, as well as higher availability of the Long Harbour refinery.

 

·Onça Puma: nickel production increased by 0.4 kt y/y, as in 3Q23 the furnace was operating at a lower rate in preparation for the furnace rebuild. The operation has been running steadily since the conclusion of the furnace rebuild. The plant has experienced a power disruption after a severe windstorm has damaged the local utility company’s transmission line on October 5th.

 

·External feed: finished nickel production from external feed was 19.3 kt in the quarter. Third-party feed decreased by 2.5 kt y/y, as planned. PTVI-sourced production decreased by 1.9 kt y/y, mainly reflecting the deconsolidation[3] of PTVI, partially offset by higher nickel production at the Matsusaka refinery.

 

·Nickel sales totaled 40.7 kt, 1.5 kt higher y/y, driven by higher production. In the quarter, nickel sales were 6.4 kt lower than production due to an inventory build-up, as well as due to Vale Base Metals’ sales strategy.

 

·The average nickel realized price was US$ 17,012/t, down 9% q/q, due to lower LME reference prices, partially offset by higher realized premiums.

 

[3] Starting from 3Q24, PTVI sourced production is reported as “External feed” and reflects solely the 80%-offtake attributable to Vale Base Metals processed at downstream facilities. Before, PTVI production was 100% consolidated by Vale.

   
 

- 4 -

 

 

Annex 1: Production and sales summary

Iron ore

000’ metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Northern System 50,137 39,534 26.8% 48,187 4.0% 125,600 124,115 1.2%
Serra Norte and Serra Leste 28,044 20,012 40.1% 28,833 -2.7% 66,273 69,283 -4.3%
S11D 22,094 19,522 13.2% 19,355 14.2% 59,327 54,832 8.2%
Southeastern System 24,000 21,228 13.1% 20,350 17.9% 64,779 60,748 6.6%
Itabira (Cauê, Conceição and others) 9,492 8,003 18.6% 7,619 24.6% 25,094 23,185 8.2%
Minas Centrais (Brucutu and others) 7,250 6,152 17.8% 5,939 22.1% 19,799 18,071 9.6%
Mariana (Alegria, Timbopeba and others) 7,258 7,073 2.6% 6,791 6.9% 19,886 19,492 2.0%
Southern System 16,833 19,836 -15.1% 17,701 -4.9% 52,016 46,892 10.9%
Paraopeba (Mutuca, Fábrica and others) 7,103 7,970 -10.9% 8,214 -13.5% 21,598 19,982 8.1%
Vargem Grande (VGR, Pico and others) 9,730 11,866 -18.0% 9,488 2.6% 30,418 26,910 13.0%
Iron Ore Production1 90,971 80,598 12.9% 86,238 5.5% 242,395 231,755 4.6%
Own production 84,063 73,282 14.7% 79,073 6.3% 222,358 215,584 3.1%
Third-party purchases 6,908 7,316 -5.6% 7,165 -3.6% 20,037 16,171 23.9%
Iron Ore Sales 81,838 79,792 2.6% 80,559 1.6% 225,456 210,591 7.1%
Fine Sales2 69,344 68,512 1.2% 69,714 -0.5% 190,402 178,904 6.4%
IOCJ 11,709 13,180 -11.2% 14,758 -20.7% 34,290 39,599 -13.4%
BRBF 34,797 30,528 14.0% 36,454 -4.5% 91,018 89,134 2.1%
Pellet feed – China (PFC1)3 3,328 3,337 -0.3% 4,234 -21.4% 9,201 10,056 -8.5%
Lump 1,971 1,782 10.6% 2,367 -16.7% 5,562 5,626 -1.1%
High-silica products 8,050 11,3724 -29.2% 6,131 31.3% 26,5844 18,090 47.0%
Other fines (60-62% Fe) 9,489 8,3134 14.1% 5,770 64.5% 8,2564 16,399 -49.7%
Pellet Sales 10,143 8,864 14.4% 8,613 17.8% 28,232 25,556 10.5%
Rom Sales 2,351 2,416 -2.7% 2,232 5.3% 6,822 6,132 11.3%
Sales from 3rd party purchase 7,118 7,122 -0.1% 6,646 7.1% 19,888 15,764 26.2%

1 Including third party purchases, run-of-mine and feed for pelletizing plants. Vale’s product portfolio Fe content reached 62.3%, alumina 1.4% and silica 5.9% in 3Q24.
2 Including third-party purchases.
3 Products concentrated in Chinese facilities.
4 Restated from historical figures.



Pellets

‘000 metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Northern System 818 489 67.3% 1,037 -21.1% 2,074 2,486 16.6%
  São Luis 818 489 67.3% 1,037 -21.1% 2,074 2,486 16.6%
Southeastern System 5,978 4,789 24.8% 4,403 35.8% 15,620 13,705 14.0%
  Itabrasco (Tubarão 3) 908 761 19.3% 801 13.4% 2,227 2,756 -19.2%
  Hispanobras (Tubarão 4) 531 729 -27.2% 720 -26.3% 1,948 777 150.7%
  Nibrasco (Tubarão 5 and 6) 1,935 1,261 53.4% 837 131.2% 4,350 3,175 37.0%
  Kobrasco (Tubarão 7) 1,071 489 119.0% 557 92.3% 2,412 2,305 4.6%
  Tubarão 8 1,532 1,549 -1.1% 1,488 3.0% 4,682 4,692 -0.2%
Southern System 1,238 1,058 17.0% 1,107 11.8% 3,515 3,454 1.8%
  Fábrica - - - - - - - -
  Vargem Grande 1,238 1,058 17.0% 1,107 11.8% 3,515 3,454 1.8%
Oman 2,328 2,557 -9.0% 2,628 -11.4% 6,515 6,960 -6.4%
Pellet Production 10,363 8,895 16.5% 9,175 12.9% 27,724 26,604 4.2%
Pellet Sales 10,143 8,864 14.4% 8,613 17.8% 28,232 25,556 10.5%
   
 

- 5 -

 

 

Copper - Finished production by source

000’ metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Brazil 66.3 61.3 8.2% 66.7 -0.6% 188.2 170.5 10.4%
Salobo 46.6 46.0 1.3% 49.6 -6.0% 140.9 125.1 12.6%
Sossego 19.7 15.3 28.8% 17.1 15.2% 47.3 45.4 4.2%
Canada 19.6 17.3 13.3% 14.9 31.5% 58.1 57.0 1.9%
Sudbury 11.6 13.9 -16.5% 9.4 23.4% 42.3 42.4 -0.2%
Thompson 3.2 - n.a. 1.6 100.0% 3.7 1.8 105.6%
Voisey's Bay 3.6 2.7 33.3% 2.7 33.3% 9.1 7.0 30.0%
Feed from third parties1 1.1 0.7 57.1% 1.2 -8.3% 3.0 5.8 -48.3%
Copper Production 85.9 78.6 9.3% 81.6 5.3% 246.3 227.5 8.3%
Copper Sales 75.2 76.1 -1.2% 73.8 1.9% 228.1 210.3 8.5%
Copper Sales Brazil 61.3 58.2 5.3% 61.8 -0.8% 175.9 157.7 11.5%
Copper Sales Canada 13.9 18.0 -22.8% 12.0 15.8% 52.2 52.5 -0.6%

1 External feed purchased from third parties and processed into copper in our Canadian operation.

Nickel

‘000 metric tons 3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Finished Production by Source                
Canada 21.5 7.3 194.5% 12.6³ 70.6% 45.7 43.0³ 6.3%
Sudbury 12.3 3.1 296.8% 6.7³ 83.6% 25.6 26.2³ -2.3%
Thompson 3.1 1.8 72.2% 2.0³ 55.0% 7.3 6.8³ 7.4%
Voisey's Bay 6.1 2.4 154.2% 3.9 56.4% 12.9 10.0 29.0%
Brazil 6.2 3.0 106.7% 5.8 6.9% 9.2 16.4 -43.9%
Indonesia - 16.2 -100.0% 17.1 -100.0% 34.9 44.3 -21.2%
External feed 19.3 1.4 1.278.6% 6.6 192.4% 9.4 16.3 -42.3%
Feed from third-parties¹ 4.1 1.4 192.9% 6.6³ -37.9% 9.4 16.3³ -42.3%
PTVI offtake4 15.2 - n.a. - n.a. 15.2 - n.a.
Finished Production by Site                
Sudbury 17.4 4.6 278.3% 12.8 35.9% 35.8 41.4 -13.5%
Voisey’s Bay & Long Harbour 9.5 4.2 126.2% 6.9 37.7% 21.3 19.4 9.8%
Onça Puma 6.2 3.0 106.7% 5.8 6.9% 9.2 16.4 -43.9%
Clydach 8.0 5.5 45.5% 8.6 -7.0% 23.7 20.9 13.4%
Matsusaka 5.5 6.3 -12.7% 4.0 37.5% 15.1 11.4 32.5%
Others2 0.5 4.3 -88.4% 4.0 -87.5% 9.3 10.5 -11.4%
Nickel Production 47.1 27.9 68.8% 42.1 11.9% 114.4 120.0 -4.7%
Nickel Sales 40.7 34.3 18.7% 39.2 3.8% 108.1 119.6 -9.6%


1 External feed purchased from third parties and processed into finished nickel in our Canadian operations. It does not include feed purchased from PTVI.

2 Includes intermediates produced in Thompson and PTVI, tolling and others.

3 Restated from historical figures.

4 Starting from 3Q24, PTVI sourced production is reported as “External feed” and reflects solely the 80%-offtake attributable to Vale Base Metals processed at downstream facilities. Before, PTVI production was 100% consolidated by Vale.

 

Energy Transition Metals by-products - Finished production

  3Q24 2Q24 ∆ q/q 3Q23 ∆ y/y 9M24 9M23 Δ y/y
Cobalt (metric tons) 714 189 277.8% 452 58.0% 1,384 1,410 -1.8%
Platinum (000’ oz troy) 23 17 35.3% 24 -4.2% 71 94 -24.5%
Palladium (000’ oz troy) 20 24 -16.7% 24 -16.7% 82 110 -25.5%
Gold (000’ oz troy)1 103 102 1.0% 117 -12.0% 309 287 7.7%
Total by-Products (000’ metric tons Cu eq.)2 3 35 31 12.9% 38 -7.9% 104 111 -6.3%


1 Includes Gold from Copper and Nickel operations.

2 Includes Iridium, Rhodium, Ruthenium and Silver.

3 Copper equivalent tons calculated using average market metal prices for each quarter. Market reference prices: for copper and cobalt: LME spot; for Gold, Silver, Platinum, and Palladium: Bloomberg; for other PGMs: Johnson Matthey.

   
 

- 6 -

 

 

Annex 2: Energy Transition Metals:
Maintenance scheduled in 2024

 

  Q1 Q2 Q3 Q4
Copper operations        
Salobo        
Salobo I & II < 1 week 1 week 1 week 1 week
Salobo III < 1 week 3 weeks 2.5 weeks <1 week
Sossego        
Sossego 4.5 weeks 4 weeks 1.5 weeks 1 week
Nickel operations        
Sudbury        
Coleman     4.5 weeks  
Creighton   1 week 5.5 weeks  
Copper Cliff North     4 weeks  
Copper Cliff South     2 weeks  
Garson     4 weeks  
Totten     2 weeks  
Clarabelle mill   1 week 3 weeks  
Sudbury Smelter   7 weeks    
Sudbury Refinery   6 weeks    
Port Colborne (Ni, Co & PGMs)   6 weeks    
Thompson        
Thompson mine     4.5 weeks  
Thompson mill     4.5 weeks  
Voisey’s Bay & Long Harbour        
Voisey’s Bay   2.5 weeks   1 week
Long Harbour Refinery   4.5 weeks    
Standalone Refineries        
Clydach   5.5 weeks    
Matsusaka 6.5 weeks      
Brazil        
Onça Puma 11 weeks1  <1 week <1 week <1 week
Indonesia        
PTVI (furnaces/kilns only) 0 weeks 1.5 weeks n.a. n.a


¹ Refers to the furnace rebuild. The ramp up after maintenance is not included in the number of weeks.

Note: The maintenance schedule may be deliberately adjusted if it proves beneficial for operations and the overall business.

The number of weeks is rounded to 0.0 or 0.5 and may involve more than one maintenance activity within the quarter.

   
 

- 7 -

 

 

 

Investor Relations

 


Vale.RI@vale.com

 

 

Thiago Lofiego
thiago.lofiego@vale.com

 

Mariana Rocha
mariana.rocha@vale.com

 

Luciana Oliveti
luciana.oliveti@vale.com

 

Pedro Terra
pedro.terra@vale.com

 

Patricia Tinoco
patricia.tinoco@vale.com

  

This press release may include statements about Vale's current expectations about future events or results (forward-looking statements), including in particular expectations for production and sales of iron ore, nickel and copper on pages 1, 2, 3 and 4. Many of those forward-looking statements can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" “will” and "potential," among others. All forward-looking statements involve various risks and uncertainties. Vale cannot guarantee that these statements will prove correct. These risks and uncertainties include, among others, factors related to: (a) the countries where Vale operates, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. Vale cautions you that actual results may differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. Vale undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information or future events or for any other reason. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports that Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and, in particular, the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

  

 

   
 

- 8 -

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Vale S.A.
(Registrant)  
   
  By: /s/ Thiago Lofiego
Date: October 15, 2024   Director of Investor Relations