Vale Stock Earnings Reports

Vale reported a strong Q3 2025 with operational records, cost reductions and robust cash generation. Iron ore production reached 94 Mt (highest quarterly output since 2018) and sales rose to 86 Mt. Copper production improved (best Q3 since 2019) and nickel production benefited from Voisey's Bay ramp‑up and the second furnace at Onça Puma, which came in on schedule and ~13% below planned CapEx. Pro forma EBITDA was $4.4 billion (+17% y/y), driven by higher realized prices, quality premiums and lower all‑in costs across iron ore, copper and nickel. Iron ore fines premiums rose nearly $2/ton q/q (portfolio actions represent ~+$500m annualized EBITDA). Iron ore all‑in costs are on track for 2025 guidance ($20.5–$22/t); copper and nickel all‑in cost guidances were lowered (copper $1,000–$1,500/t; nickel $13,000–$14,000/t). Recurring free cash flow was $1.6 billion in Q3 and total free cash flow $2.6 billion (including Aliança Energia), leading to expanded net debt of $16.6 billion and expected reduction toward the midpoint of the $10–$20 billion target range in Q4. Management signaled the possibility of extraordinary dividends in coming months while completing a participating debenture tender offer. Safety progress was emphasized: the last dam on emergency Level 3 was lowered to Level 2, Vale implemented the GISTM, and 18 structures have been decharacterized. Key growth projects continue: Bacaba (preliminary license received, construction to start pending license), Serra Sul +20 Mtpa expansion (80% complete, start-up by end‑2026), Serra Leste expansion (6 → 10 Mtpa), and ongoing drilling and portfolio optimization in Carajás and Base Metals (more drilling, potential accelerated copper options). Samarco operations are ramping with the second concentrator (~15 Mt) and potential further expansion. Management reiterated disciplined capital allocation, focus on safety and operational excellence, and intent to be selective on returns-driven growth rather than pursuing aggressive M&A.