Vale has announced its financial performance for the first quarter of 2025, showing improvements in sales across all business segments. Iron ore sales rose by 4% year-over-year, while copper and nickel sales increased by 7% and 18%, respectively.
The average realized price for iron ore fines was $90.8 per ton, remaining stable quarter-over-quarter but decreasing by 10% year-over-year due to a lower 62% Fe price index. Proforma EBITDA decreased by 8% year-over-year to $3.2 billion, with higher sales volumes and lower unit costs in iron ore partially offsetting the impact of lower prices.
Iron ore fines' C1 cash cost, excluding third-party purchases, fell by 11% year-over-year to $21.0 per ton. Vale is confident in meeting its C1 cash cost guidance for 2025 of $20.5-22.0 per ton.
Copper all-in costs dropped by 63% year-over-year to $1,212 per ton due to consistent operating performance and higher revenues from by-products. Nickel all-in costs were down by 4% year-over-year at $15,730 per ton.
Capital expenditures amounted to $1.2 billion, which is $221 million lower than the previous year and aligns with the revised plan for 2025. The CAPEX guidance remains at $5.9 billion for the year.
Recurring free cash flow generation was reported at $504 million, a decrease of $1.7 billion compared to last year due to lower EBITDA and higher working capital requirements.
As of March 31st, expanded net debt stood at $18.2 billion, an increase of $1.8 billion quarter-over-quarter influenced by dividends and interest on capital payments.
Gustavo Pimenta, CEO of Vale stated: "We had a consistent start to the year...Our value-accretive projects continue to progress...we are building an even more competitive company that can thrive in any market condition."
Vale continues advancing its autonomous program with recent completion at Terminal Ilha da Guaíba (TIG port) in Brazil and progressing projects like Vargem Grande 1 and Capanema towards full capacity in early 2026.
In energy transition metals, Salobo completed a throughput test for Salobo 3 project achieving significant milestones with Wheaton providing financial recognition upon completion.
A new joint venture agreement has been reached with Global Infrastructure Partners (GIP) involving Aliança Geração de Energia S.A., expecting completion later this year pending conditions.
On ESG initiatives: Vale's project with Green Energy Park has been recognized under the EU's Global Gateway Program aiming at sustainable investments; transparency reports are set for release including ISSB standards adoption aimed at enhancing climate risk reporting; reparation agreements related to Brumadinho and Mariana disasters continue progressing as planned.
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