Business
Vale S A : informs on estimates update
Vale S A : informs on estimates
About this update from Vale S.a.
Press Release Vale informs on estimates update Rio de Janeiro, May 12th, 2026 - Vale S.A. ("Vale" or the "Company") informs the market of the update of its estimates, which now include: (i) the free cash flow variation of the Iron Ore Solutions segment in 2026, considering the market conditions resulting from the conflict in the Middle East; and (ii) the EBITDA and cash flow sensitivities of the Nickel segment of Vale Base Metals Ltd. ("VBM"). These estimates are part of a presentation to be delivered by the Company on this date at the Bank of America Metals, Mining and Steel Conference in the United States. Iron Ore Solutions - 2026 free cash flow variation (US$ million): Considering the market conditions observed before and after the onset of the conflict in the Middle East, the Company estimates an increase of approximately US$1.5 billion in free cash flow in 2026, comprised of: (i) an increase of approximately US$1.2 billion in the segment's EBITDA; (ii) generation of approximately US$425 million through foreign exchange and fuel hedging programs; and (iii) an increase of approximately US$0.1 billion in sustaining capital expenditures. This estimate assumes the following premises: (i) pre-conflict scenario: average prices of January and February 2026 applied to 2026 full year: iron ore at US$102/t, Brent at US$67/bbl, bunker at US$490/t, and BRL/USD exchange rate of 5.27; and (ii) post-conflict scenario: realized performance between January and April 2026 and spot prices applied to the period from May to December 2026: iron ore at US$112/t, Brent at US$104/bbl, bunker at US$675/t, and BRL/USD exchange rate of 4.90. Nickel - EBITDA generation sensitive to price, per year (in US$ million per tonne): Nickel price (US$/tonne) 16,000 18,000 20,000 2026 ~1,150 ~1,550 ~2,000 2027 ~1,600 ~2,000 ~2,450 Nickel - Free cash flow generation sensitive to price, per year (in US$ million per tonne): Nickel price (US$/tonne) 16,000 18,000 20,000 2026 ~5 ~350 ~700 2027 ~300 ~650 ~1,000 The estimates for the Nickel segment above assume, as reference, analysts' consensus prices for 2026 of: US$12,660/t for copper; US$54,650/t for cobalt; US$5,000/troy ounce for gold; US$2,170/troy ounce for platinum; and US$1,680/troy ounce for palladium; and, for 2027, of: US$12,220/t for copper; US$48,550/t for cobalt; US$5,000/troy ounce for gold; US$2,070/troy ounce for platinum; and...