Vale S A : Performance in 3Q23

Vale's performance in 3Q23

Rio de Janeiro, October 26th, 2023. "We continue to make significant progress on our strategic and business priorities. In Iron Solutions, we remain on track to meet guidance, with increased production year-to-date, enhanced average quality and a reduced production-to-sales gap in the quarter. In Energy Transition Metals, we are progressing with an asset review to achieve operational excellence. The transition of the Voisey's Bay mine to underground and the maintenance activities will support sustainable asset performance. In Copper, the successful ramp-up of Salobo III contributes to a higher total output and lower unit costs. We are advancing toward our long-term objectives, by starting loading tests at our 1st briquetting plant and signing two new agreements for the development of Mega Hubs. We have also completed the decharacterization of Dique 2, and B3/B4 dam's emergency level was reduced to 1, in line with our new framework for dam management established in 2019. We will continue delivering on our strategy to turn Vale into a reference in creating and sharing value to all of our stakeholders." commented Eduardo Bartolomeo, Chief Executive Officer.

Selected financial indicators

US$ million	3Q23	3Q22	2Q23
Net operating revenues	10,623	9,929	9,673
Total costs and expenses (ex-Brumadinho and de-characterization of dams)1	(6,921)	(6,730)	(6,412)
Expenses related to Brumadinho and de-characterization of dams	(305)	(336)	(271)
Adjusted EBIT from continuing operations	3,397	2,891	3,095
Adjusted EBIT margin (%)	32%	29%	32%
Adjusted EBITDA from continuing operations	4,177	3,666	3,874
Adjusted EBITDA margin (%)	39%	37%	40%
Proforma adjusted EBITDA from continuing operations2	4,482	4,002	4,145
Net income from continuing operations attributable to Vale's shareholders	2,836	4,455	892
Net debt 3	10,009	6,980	8,908
Capital expenditures	1,464	1,230	1,208

1. Includes adjustment of US$ 47 million in 3Q23 and US$ 52 million in 2Q23, to reflect the performance of the streaming transactions at market price.
2. Excluding expenses related to Brumadinho.
3. Including leases (IFRS 16).

Highlights

Business Results

• Proforma adjusted EBITDA from continued operations of US$ 4.5 billion in Q3, up 12% y/y and 8% q/q. EBITDA from the Iron Solutions business was up 18% y/y and 13% q/q, mainly due to higher iron ore realized prices and sales volumes.
• Iron ore C1 cash cost ex-3rd party purchases decreased 7% q/q, reaching US$ 21.9/t, on track to meet the US$21.5 - 22.5/t guidance for the year.
• Free Cash Flow from Operations of US$ 1.1 billion in Q3, representing an EBITDA to cash-conversion of 25%.

Disciplined capital allocation

• Capital expenditures of US$ 1.5 billion in Q3, including growth and sustaining investments, US$ 0.3 billion higher y/y, resulting primarily from the continuous progress of key projects such as Serra Sul 120 Mtpy, Capanema, Voisey's Bay Mine Expansion, and Salobo III.
• Gross debt and leases of US$ 14.0 billion as of September 30th, 2023, flat q/q.

1

• Expanded Net Debt of US$ 15.5 billion as of September 30th, 2023, US$ 0.8 billion higher q/q, mostly reflecting interest on capital paid to shareholders in the quarter.

Value creation and distribution

• Interest on capital of US$ 1.7 billion paid in September, as part of the Shareholder Remuneration Policy.
• Allocation of US$ 0.5 billion as part of the 3rd buyback program in the quarter. As of the date of this report, the 3rd buyback program was 72% complete, with US$ 5.5 billion used to repurchase 360 million shares1.
• Today, the Board of Directors has approved the distribution of US$ 2.0 billion in dividends and interest on capital, scheduled to be paid December 1st.
• In addition, the Board of Directors has approved a 4th buyback program to repurchase up to 150 million shares over the next 18 months. The new program will essentially cover the remaining shares from the 3rd buyback program.

Focusing and strengthening the core

• Delivering iron solutions:
• • A letter of intent with Essar was signed, in September, to supply iron ore agglomerates for the Green Steel Arabia project in Saudi Arabia. Vale will supply 4 Mtpy of iron ore agglomerates for the direct reduction route, which will be produced at the Saudi Arabian Mega Hub, in the case of briquettes, and in Oman or Brazil, for pellets.
  • An agreement with H2 Green Steel was signed in September, to jointly study the feasibility of developing green industrial hubs in Brazil and North America. These hubs will focus on producing low-carbonproducts, including green hydrogen and hot briquetted iron (HBI), using iron ore briquettes produced by Vale as input material and renewable electricity as the energy source for its hydrogen production.
  • An MoU with the Port of Açu was announced in September to jointly study the development of a Mega Hub at the port located in São João da Barra in the state of Rio de Janeiro to produce HBI (hot briquetted iron) using the direct reduction route. The Mega Hub will initially receive pellets from Vale and could, in the future, include an iron ore briquette plant at the site to supply the direct reduction route at the industrial complex.
• Advancing the project pipeline:
• • Approval of the development of the Pomalaa2 mine in October, marking a significant step towards growth in the Energy Transition Metals business. The investment in the mine is US$ 925 million. The mine will provide feed to the HPAL plant project, a three-party collaboration between PTVI, Huayou and Ford Motor Company. The Pomalaa project will have an overall production capacity of up to 120 ktpy of nickel in the form of mixed hydroxide precipitate and is expected to start-up in 2025.
  • Load tests have started as part of commissioning the first of two iron ore briquette plants in Tubarão. After ramping-up,the combined capacity of the two plants will reach 6 Mtpy. The briquettes will assist in reducing greenhouse gas emissions from the steel industry.

Promoting sustainable mining

• In October, the B3/B4 dam had its emergency level reduced to 1. The advancement in the decharacterization process of B3/B4 dam, with the removal of about 85% of the reservoir content, has improved the stability conditions of the dam and facilitated the reduction of the emergency level, as required by current legislation.

1. Related to the April 2022 3rd buyback program for a total of 500 million shares.
2. PTVI owns 100% of the mine and has a call option to acquire up to 30% of the HPAL project upon mechanical completion.

2

• Completion of the decharacterization of Dique 2, located at the Cauê mine, the 13th structure of our Upstream Dam Decharacterization Program to be eliminated. The decharacterization of the remaining 17 upstream structures is on track within the timeframe agreed with authorities, while they continue to be permanently monitored by Vale's Geotechnical Monitoring Centers.
• A long-term agreement between Vale Base Metals and BluestOne, signed in October, will look to reuse waste in Brazil and promote circular mining. The agreement entails the purchase of 50 ktpy of waste from the Onça Puma operations in Pará for the next ten years to produce low-carbon emission fertilizers.
• A protocol of intent with Petrobras was signed in September, to jointly assess decarbonization opportunities, including the development of sustainable fuels - such as hydrogen, green methanol, biobunkers, green ammonia and renewable diesel - and CO2 capture and storage technologies.
• Vale has set a new target to reduce freshwater use per ton of production by 7% on average until 2030. This target would represent a total reduction of 27% (baseline 2018), alongside the 20% reduction already reached3, and considers water stress scenarios in areas where we have sites, the implementation of stricter water management processes and the execution of a structured engagement plan.

3 Our previous target was to reduce freshwater withdrawal for our production processes by 10% by 2030. As of 2021, we have already achieved a 20% reduction since the baseline year, surpassing our target.

3

Adjusted EBITDA

Adjusted EBITDA

US$ million	3Q23	3Q22	2Q23
Net operating revenues	10,623	9,929	9,673
COGS	(6,309)	(6,301)	(5,940)
SG&A	(150)	(119)	(139)
Research and development	(188)	(170)	(165)
Pre-operating and stoppage expenses	(115)	(89)	(103)
Expenses related to Brumadinho and de-characterization of dams	(305)	(336)	(271)
Other operational expenses¹	(159)	(51)	(65)
Dividends and interests on associates and JVs	-	28	105
Adjusted EBIT from continuing operations	3,397	2,891	3,095
Depreciation, amortization & depletion	780	775	779
Adjusted EBITDA from continuing operations	4,177	3,666	3,874
Proforma Adjusted EBITDA from continuing operations²	4,482	4,002	4,145

• Includes adjustment of US$ 47 million in 3Q23 and US$ 52 million in 2Q23, to reflect the performance of the streaming transactions at market price. ² Excluding expenses related to Brumadinho.

Proforma EBITDA - 3Q23 vs. 3Q22

4

Sales & price realization

Volume sold - Minerals and metals

'000 metric tons	3Q23	3Q22	2Q23
Iron ore fines	69,714	65,381	63,329
ROM	2,232	3,668	2,236
Pellets	8,613	8,521	8,809
Nickel	39	44	40
Copper¹	74	71	74
Gold as by-product ('000 oz)¹	104	79	88
Silver as by-product ('000 oz)¹	364	346	518
PGMs ('000 oz)	41	65	89
Cobalt (metric ton)	399	569	660

¹ Including sales originated from both nickel and copper operations.

Average realized prices

US$/ton	3Q23	3Q22	2Q23
Iron ore - 62% Fe reference price	114.0	103.3	111.0
Iron ore fines Vale CFR/FOB realized price	105.1	92.6	98.5
Pellets CFR/FOB (wmt)	161.2	194.3	160.4
Nickel	21,237	21,672	23,070
Copper2	7,680	6,479	6,986
Gold (US$/oz)12	1,872	1,748	2,082
Silver (US$/oz)2	22.80	17.19	23.96
Cobalt (US$/t)1	35,222	49,228	34,694

• Prices presented above were adjusted to reflect the market prices of products delivered related to the streaming transactions.
  2 Including sales originated from both nickel and copper operations.

Costs

COGS by business segment

US$ million	3Q23	3Q22	2Q23
Iron Solutions	4,646	4,317	4,282
Energy Transition Metals	1,599	1,882	1,617
Others	64	102	41
Total COGS of continuing operations¹	6,309	6,301	5,940
Depreciation	747	752	737
COGS of continuing operations, ex-depreciation	5,562	5,549	5,203

¹ COGS currency exposure in 3Q23 was as follows: 47.10% BRL, 46.39% USD, 6.29% CAD and 0.22% Other currencies.

Expenses

Operating expenses

US$ million	3Q23	3Q22	2Q23
SG&A	150	119	139
Administrative	124	103	118
Personnel	52	42	52
Services	32	28	30
Depreciation	12	9	14
Others	28	24	22
Selling	26	16	21
R&D	188	170	165
Pre-operating and stoppage expenses	115	89	103
Expenses related to Brumadinho and de-characterization of dams	305	336	271
Other operating expenses	206	51	117
Total operating expenses	964	765	795
Depreciation	34	23	42
Operating expenses, ex-depreciation	930	742	753

5

Brumadinho

Impact of Brumadinho and De-characterization in 3Q23

			Provisions balance		EBITDA				FX and other		Provisions
	US$ million				Payments			balance
		30jun23		impact			adjustments2
			30sep23
	De-characterization	3,661	-	(146)	(99)	3,416
	Agreements & donations¹		3,276		184		(292)		29		3,197
	Total Provisions		6,937		184		(438)		(70)		6,613
	Incurred Expenses	-	121	(121)	-	-
	Total		6,937		305		(559)		(70)		6,613

• Includes Integral Reparation Agreement, individual, labor and emergency indemnifications, tailing removal and containment works.
  2 Includes foreign exchange, present value and other adjustments.

Impact of Brumadinho and De-characterization from 2019 to 3Q23

			EBITDA				PV & FX		Provisions
	US$ million			Payments			balance
		impact			adjust ²
							30sep23
	De-characterization	5,038	(1,457)	(165)	3,416
	Agreements & donations¹		8,982		(5,915)		130		3,197
	Total Provisions		14,020		(7,372)		(35)		6,613
	Incurred expenses	2,873	(2,873)	-	-
	Others		180		(178)		(2)		-
	Total		17,073		(10,423)		(37)		6,613

• Includes Integral Reparation Agreement, individual, labor and emergency indemnifications, tailing removal and containment works. ² Includes foreign exchange, present value and other adjustments

Cash outflow of Brumadinho & De-characterization commitments1,2:

		Since
US$ billion		2019 until		4Q23
		3Q23
De-characterization		disbursed		0.1
1.4
Integral Reparation Agreement and other reparation provisions		5.9		0.6
Incurred expenses	2.9		0.2
Total		10.2		0.9

1. Estimate cash outflow for 2023-2035 period, given BRL-USD exchange rates of 5.0076.
2. Amounts stated without discount to present value, net of judicial deposits and inflation adjustments.
3. Estimate annual average cash flow for De-characterization provisions in the 2028-2035 period is US$ 277 million per year.
4. Disbursements related to the Integral Reparation Agreement ending in 2029.

							Yearly
							average
2024	2025		2026		2027		2028-
							2035³
0.6	0.5	0.6	0.5	0.3
1.2	1.0		0.6		0.2		0.14
0.4	0.3	0.2	0.1	-
2.2	1.8		1.4		0.8		-

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Net income

Reconciliation of proforma EBITDA to net income

US$ million	3Q23	3Q22	2Q23
EBITDA Proforma	4,482	4,002	4,145
Brumadinho and de-characterization of dams	(305)	(336)	(271)
Adjusted EBITDA from continuing operations	4,177	3,666	3,874
Impairment reversal (impairment and disposals) of non-current assets, net 1	(122)	(40)	(118)
Dividends received	-	(28)	(105)
Equity results and net income (loss) attributable to noncontrolling interests	73	89	(31)
Financial results	(385)	2,347	(157)
Income taxes	(127)	(804)	(1,792)
Depreciation, depletion & amortization	(780)	(775)	(779)
Net income from continuing operations attributable to Vale's shareholders	2,836	4,455	892

1 Includes adjustment of US$ 47 million in 3Q23 and US$ 52 million in 2Q23, to reflect the performance of the streaming transactions at market price.

Financial results

US$ million	3Q23	3Q22	2Q23
Financial expenses, of which:	(362)	(221)	(397)
Gross interest	(192)	(140)	(185)
Capitalization of interest	5	9	5
Others	(137)	(48)	(179)
Financial expenses (REFIS)	(38)	(42)	(38)
Financial income	100	141	106
Shareholder Debentures	30	470	321
Financial Guarantee	-	-	-
Derivatives¹	(51)	190	563
Currency and interest rate swaps	(92)	232	558
Others (commodities, etc)	41	(42)	5
Foreign exchange and monetary variation	(102)	1,767	(750)
Financial result, net	(385)	2,347	(157)

¹ The cash effect of the derivatives was a gain of US$ 70 million in 3Q23.

Main factors that affected net income for 3Q23 vs. 3Q22

3Q22 Net income from continuing operations attributable to Vale's stockholders

• EBITDA proforma
• Brumadinho and de-characterization of dams
• Impairment & disposal of non-current assets
• Dividends received
• Equity results and net income (loss) attributable to noncontrolling interests
• Financial results
• Income taxes
• Depreciation, depletion & amortization

3Q23 Net income from continuing operations attributable to Vale's shareholders

D: difference between 3Q23 and 3Q22 figures

US$ million

4,455

480 Mainly due to higher iron ore realized prices and higher iron ore and pellets sales volumes.

31

(82)

28

(16)
		Mostly driven by (i) cumulative translation adjustment in 2022; and (ii)
(2,732)
	mark-to-market prices of shareholders debentures.
677
	Mainly due to a decrease in taxable income.
(5)
2,836

7

CAPEX

Growth and sustaining projects execution

US$ million	3Q23	%	3Q22	%	2Q23	%
Growth projects	468	32.0	375	30.5	376	31.2
Iron Solutions	354	24.2	200	16.3	255	21.1
Energy Transition Metals	96	6.6	81	6.6	95	7.9
Nickel	67	4.6	19	1.5	63	5.2
Copper	29	2.0	62	5.0	32	2.6
Energy and others	18	1.2	94	7.6	26	2.2
Sustaining projects	996	68.0	855	69.5	832	68.8
Iron Solutions	609	41.6	497	40.4	472	39.1
Energy Transition Metals	357	24.4	341	27.7	326	26.9
Nickel	298	20.4	288	23.4	282	23.3
Copper	59	4.0	53	4.3	44	3.6
Energy and others	30	2.0	17	1.4	34	2.8
Total	1,464	100.0	1,230	100.0	1,208	100.0

Growth projects

Investments in growth projects under construction totaled US$ 468 million in Q3, a 25% increase y/y, driven by higher investments in Iron Solutions projects, especially Serra Sul 120 Mtpy and Capanema projects, partially offset by the conclusion of Sol do Cerrado solar project.

Growth projects progress indicator4

	Projects		Capex 3Q23		Financial		Physical		Comments
			progress1		progress
	Iron Solutions
	Northern System 240 Mtpy								For the railway, the pile excavation and the temporary bridge
								construction over the Jacundá River have been completed, with
	Capacity: 10 Mtpy					92%2
	39	79%		conclusion of works expected in 2024. For the port, the no-load tests
	Start-up: 1H23								on the reclaimer, the silo building, and the conveyor have been
	Capex: US$ 772 MM
								completed.
	Serra Sul 120 Mtpy3								For the mine, precast panel fabrication for the semi-mobile crusher's
								reinforced earth wall has been completed. In addition, the mobilization
	Capacity: 20 Mtpy		144		52%		56%		for the electromechanical assembly of the new conveyor belt has
	Start-up: 2H25					begun. For the plant, the secondary crushing piles have been
	Capex: US$ 1,502 MM								installed, and concrete structure works are in progress on the crushing
									and classification area.

Capanema's Maximization

Capacity: 18 Mtpy	72	36%	57%
Start-up: 1H25
Capex: US$ 913 MM

Briquettes Tubarão

Capacity: 6 Mtpy
	36		82%		95%
Start-up: 4Q23 (Plant 1) | 1H24 (Plant 2)

Capex: US$ 256 MM

The assembly of the primary and secondary circuit connecting gallery, the Capanema's stacker forearm, and the tertiary screening substation was completed. The environmental approval for the conveyor belt foundations has been granted.

The first phase of the load tests, along with the environmental control tests, was successfully completed in August. Commissioning of Plant1 is expected in Q4.

Energy Transition Materials

Onça Puma 2nd Furnace

Capacity: 12-15 ktpy	26	12%	24%	Construction is progressing, with main activities ongoing, including the
Start-up: 2H254	detailed engineering, furnace disassembly and procurement.

Capex: US$ 555 MM

1. CAPEX disbursement until end of 3Q23 vs. CAPEX expected.
2. Considering physical progress of mine, plant and logistics.
3. The project consists of increasing the S11D mine-plant capacity by 20 Mtpy.
4. Start-updeadline has been postponed from 1H25 to 2H25.

4 Pre-operating expenses included in the total estimated capex information, in line with Vale's Board of Directors approvals.

8

Sustaining projects

Investments in sustaining our operations totaled US$ 996 million in Q3, a 16% increase y/y, as expected, driven by higher investments in the enhancement of operations and dam management in the Iron Solutions business.

Sustaining projects progress indicator5

				Financial		Physical
Projects		Capex 3Q23
		progress1		progress
Iron Solutions
Compact Crushing S11D
Capacity: 50 Mtpy	27	10%	18%
Start-up: 2H26
Capex: US$ 755 MM
N3 - Serra Norte
Capacity: 6 Mtpy
	1		16%		18%
Start-up: 2H25
Capex: US$ 84 MM
VGR 1 plant revamp
Capacity: 17 Mtpy	7	17%	51%
Start-up: 2H24

Capex: US$ 67MM

Comments

The piling works have been completed, and the concrete structures works for the primary crushing have begun.

The postponement of the obtainment of the Installation License and Vegetation Suppression Authorization until August 2024 is impactingthe beginning of the construction works.

The foundation piling for the drainage sump and the construction works of the substation have been completed. The suppliers have been mobilized to start the electromechanical assembly.

Energy Transition Materials

Voisey's Bay Mine Extension				The paste system commissioning has concluded, with performance
			testing ongoing. Reid Brook's bulk material handling system is near
Capacity: 45 ktpy (Ni) and 20 ktpy (Cu)
123	89%	88%	mechanical completion, with the	commissioning of	sub-systems
Start-up: 1H212
			currently taking place. Assembly	of the bulk material	handling at
Capex: US$ 2,690 MM
			Eastern Deeps continues.

1. CAPEX disbursement until end of 3Q23 vs. CAPEX expected.
2. In 2Q21, Vale achieved the first ore production of Reid Brook deposit, the first of two underground mines to be developed in the project. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is continuing its scheduled production ramp-up.

Sustaining capex by type - 3Q23

				Energy		Energy and
	US$ million	Iron Solutions		Transition			Total
			others
				Materials
	Enhancement of operations	297		158		4		459
	Replacement projects	12		139		-		151
	Filtration and dry stacking projects	45		-		-		45
	Dam management	30		4		-		34
	Other investments in dams and waste dumps	64		22		-		86
	Health and Safety	48		25		2		75
	Social investments and environmental protection	66		2		-		68
	Administrative & Others	47		7		24		78
	Total	609		357		30		996

5 Pre-operating expenses included in the total estimated capex column, in line with Vale's Board of Directors approvals.

9

Free cash flow

Free Cash Flow from Operations reached US$ 1.126 billion in 3Q23, US$ 1.038 billion lower y/y, largely explained by the negative effect of working capital (US$ 963 million lower y/y) as a result of the increase in sales volumes and changes in accounts payable.

In the quarter, there was a negative working capital movement of US$ 186 million affecting cash generation, largely explained by higher accrual sales, resulting from higher iron ore provisional prices at the end of the quarter and higher iron ore accrual sales volumes (16.4 Mt in 3Q23 versus 14.7 Mt in 2Q23).

Vale's cash generation and position was primarily used to distribute US$ 1.678 billion to shareholders in interest on capital and the repurchase US$ 546 million in shares.

Free Cash Flow 3Q23

10