Vale S.A.

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Hello everyone, and welcome to Vale's second quarter 2025 conference call. First, I would like to take a moment to remind you of our strategic direction as defined by our Vale 2030 vision. We are building a leading mining platform with the right portfolio of assets, as we leverage our unique endowment to deliver accretive growth opportunities in both copper and iron ore. We are also highly focused on continuing to gain competitiveness across all commodities, and this quarter's performance only reinforces that we are on the right track to achieve our stated goals. Another key element of our strategy is the increased focus on talent development and leadership. To that end, I'm very happy to have a world-class executive committee team fully in place now, with the recent arrivals of Samir Rappi as our General Counsel and Grazi Parenti as our VP of Sustainability. Both professionals bring enormous experience and expertise and will certainly help us to deliver on our long-term strategy. Now let's move on to the highlights of this quarter. On safety, we are pleased to see clear progress towards creating an accident-free work environment across all of our operations. Our safety indicators for the first half of 2025 have clearly improved compared to last year. as represented by a 55% reduction in the High Potential Recordable Injuries indicator, and we continue to lead our peers in tree fear. These results are reassuring and confirm that we are on the right path to becoming the safest mining company in the world. This quarter was also marked by another solid operational performance across all business segments. This shows that our focus on operational excellence and on building a superior portfolio are paying off, putting us on track to meet all of our guidances for the year. Iron ore production reached 84 million tons this quarter, 4% higher year-on-year, and our highest second quarter output since 2018. Growth was mainly driven by the ramp-up of new assets, such as Kappa NEMA, along with a strong and consistent performance from other sites. S11D, for example, hit another production record this quarter. We remain committed to increasing the flexibility of our product portfolio which allows us to respond more effectively to market conditions and capture greater value through our commercial strategy. In our energy transition metals business, we continue to make solid progress. Nickel production rose 44% year-on-year. driven by productivity initiatives and the successful ramp-up of the Voices Bay underground mine. I am also happy to announce that we have started on Sapuma's second furnace commissioning. The furnace, when fully ramped up, will contribute with 12 to 15 kilotons of nickel production and will be very cost-competitive. Copper production also performed strongly. increasing 18% compared to the same period last year, our best second quarter since 2019. The strong performance at VBM highlights the great work Sean and the team are doing to unlock value from our existing assets and position the company to deliver on our long-term goals, including the highly promising copper growth. Early in the year, we launched the new Carajás program with the vision to accelerate the development of essential projects in one of the most attractive mineral deposits globally. Since then, the team has been working on several fronts to advance those projects, including increasing the exploration spend to better understand the endowment in the region, with very promising results to date. The first important milestone for the new Carajás program was the preliminary license for Bacaba, granted in June. Bacaba will extend the life of our sossego plant with 50 kilotons a year and a very competitive capital intensity of $5,400 per ton, a clear demonstration of the potential value creation we have in the region. As we advance on our growth story, one thing remains clear. Being a performance-driven company is at the core of our strategy. Our efficiency program, driven by innovation and technology, is enabling us to consistently reduce costs at a time when much of the industry is struggling to contain inflation. This was the fourth consecutive quarter of year-on-year reduction in our C1 cash cost. putting us on track to meet our 2025 guidance of $20.5 to $22 per tonne. Becoming more competitive and efficient is a top priority for our team, and we will continue to pursue this objective as a key element of our strategy and cultural evolution. Finally, talking about the third pillar of our vision, which is on becoming a trusted partner for society. Vale recently published its first sustainability-related financial information report, being the first company in Brazil and the first major mining company globally to do so. The report outlines climate-related risks, making clear how Vale is managing those, while identifying key opportunities for the company. such as the steel industry decarbonization and the increasing need for critical metals like copper and nickel. I encourage you all to explore this report, which reflects our commitment to leading the industry in transparency and sustainable mining initiatives. I will now pass the floor to Marcelo Bacci to discuss our financial performance. I will be back for closing remarks before the Q&A. Marcelo, please go ahead.

Thanks, Gustavo, and good morning, everyone. Our pro forma EBITDA reached $3.4 billion in the second quarter of 2025, improving 7% quarter-on-quarter but down 14% year-on-year, driven by the 13% decline in R&R reference prices. We once again delivered a solid operating performance with production volumes rising and costs declining year-over-year across all commodities. This efficiency-driven mindset is increasingly shaping the way we operate, and our results reflect the commitment and discipline of our teams. Let's take a closer look at the details of this quarter. Starting in Iron Ore, our cost performance continues to show strong momentum, marking the fourth consecutive quarter of year-on-year decline. In Q2, our C1 cash cost reached $22.2 per tonne, down 11% year-on-year, driven by our efficiency initiatives and a favorable exchange rate. Yalling cost declined 10% year-on-year, reaching $55.3 per ton. This improvement was not only driven by a lower C1, but also by lower expenses and improved premium realization on R&R fines. we are starting to see the benefits of our portfolio optimization strategy, with more to come in the coming quarters. We remain highly confident in achieving our full-year guidances for both our C1 and all-in costs, implying year-over-year cost reductions despite inflationary pressure. Our energy transition metals business delivered another strong quarterly result, with substantial improvements across all assets, reflecting the impact of the asset review initiative led by Sean. In copper, the all-in cost decreased by 60%, reaching $1,400 per ton. This reduction was driven by strong performance at both Salobo and Sosebo, along with higher by-product revenues, benefiting from higher gold prices. The lower than expected costs in the first half of the year, combined with a more favorable outlook for by-product revenues, allow us to revise down our 2025 all-in cost guidance for copper. We now expect a range of $1.5 to $2,000 per ton, which, considering everything else constant, would imply a $300 million EBITDA improvement for the year. In nickel, the all-in cost decreased by 30% year-on-year, as a result of robust operating improvements in Sudbury and Voices Bay, with the ramp-up of the underground mines, as well as higher revenues from by-products. Now moving on to cash generation. recurring free cash flow reached $1 billion in Q2, $500 million higher than in Q1, driven by a higher-performing EBITDA and a lower working capital variation. Our CAPEX continues to trend downward, reflecting gains from our efficiency program and the completion of key projects like VBME and Capanema. We remain confident in delivering the $5.9 billion CAPEX guidance for the year. Additionally, yesterday our Board of Directors approved a distribution of $1.4 billion in interest on capital to be paid in September, in line with our dividend policy, reinforcing our continued commitment to return value to shareholders. As you can see on this slide, our recurring free cash flow enabled a reduction in our expanded net debt, which ended the quarter at $17.4 billion. Our target range for expanded net debt remains between $10 and $20 billion. We expect to gradually move back towards the midpoint of that range in the coming quarters, supported by a strong cash flow generation in the second half of the year and the positive impact of the Allianz Energia deal, which we expect to close in Q3. To conclude, I would like to reinforce our continued disciplined capital allocation approach, keeping our expanded net debt within our target range, controlling CAPEX, investing in creative projects, and delivering strong shareholder returns through dividends and buybacks. As Gustavo mentioned earlier, we also remain firmly committed to our efficiency program, ensuring we become an even more competitive company. With that, I would like to pass the floor back to Gustavo for the key takeaways.