Vale Investor Day Presentation Deck
48
3
Maximize flight-to-quality in Iron Ore
Altogether, Vale is rebuilding its
competitiveness: capacity, value and green
Vale's iron ore fines and pellets EBITDA break-even
US$/t
~45
2021E
Roadmap
~3
C1 ex-3rd
party purchase
▪ Dilution of
fixed costs
▪ Removal of
inefficiencies
and cost
savings
New way to
operate
||
||
||
||
~3
Freight
efficiency
▪ Normalization
of spot freight
rates and
bunker prices
▪ Fleet
optimization
(Valemax/
Guaibamax)
2-6
Premium
Pellet capacity
resumption
▪ Northern
System
production
increase
||
||
11
11
I
~2.5
Others¹
No stoppage
expenses
- Dilution of
expenses
¹ Includes expenses, stoppage expenses related to Brumadinho, distribution costs and moisture adjustment.
~35
400 Mtpy
production level
Iron ore
price effect
▪ Potential
lower effect
of prices on
royalties
and third-
party
purchase
30-35
400 Mtpy
production level
(price adjusted)
0-6
Future
premiums
(potential)
▪ Vale's future
portfolio
▪ Carbon
pricing
▪ Transition to
more direct
reduction
demand
<30
Potential
breakeven in a
decarbonized
world
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