Vale's Performance in 3Q22
Vale's Performance in 3Q22: Finance
C1 cash cost reduction partially offset by freight
increase and lower premiums
Iron ore fines & pellets EBITDA break-even – 3Q22
US$/t
2Q22
3Q22
Vale's C1 cash cost ex-third-party purchase cost
20.9
19.4)
Third-party purchases cost adjustments
3.3
3.4
Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB
24.2
22.8
Iron ore fines freight cost
21.3
(22.4
Iron ore fines distribution cost
2.2
2.2
Iron ore fines expenses & royalties
6.9
5.8
Iron ore fines moisture adjustment
4.9
4.7
•
Iron ore fines quality adjustment
(1.1)
((0.6)
Iron ore fines EBITDA break-even (US$/dmt)
58.4
57.3
Iron ore fines pellet adjustment
(6.2)
((6.0)
•
Iron ore fines and pellets EBITDA break-even (US$/dmt)
52.2
51.3
Exchange rate: - US$ 1.0/t
Fixed costs dilution: - US$ 1.0/t
•
Demurrage: US$ 0.4/t
•
Consumption of Q2 inventories: + US$ 0.5/t
Diesel: + US$ 0.5/t
• Seasonally larger spot affreightment: + US$ 1.4/t
• Lagged effect of higher bunker costs: + US$ 0.4/t
• Lower spot freight rates: - US$ 0.7/t
US$ 5.6/t of cost avoidance by scrubbers' installation
Lower unit market premiums: US$ 1.4/t
Positive mix effect: US$ 0.9/t
Record contractual pellet premium
Lower 65%Fe index spread
Absence of dividends received
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