| Cash flows reconciliation |
9. Cash flows reconciliation
a) Cash flow from operating activities
| Schedule of cash flow from operating activities |
|
|
|
| |
|
Six-month period ended June 30, |
| |
Notes |
2025 |
2024 |
| Cash flow from operating activities: |
|
|
|
| Income before income taxes |
|
4,146 |
4,870 |
| Adjusted for: |
|
|
|
| Equity results and other results in associates and joint ventures |
14 |
9 |
(236) |
| Impairment and gains (losses) on disposal of non-current assets, net |
15(a), 15(b), 16 and 17 |
385 |
(1,004) |
| Review of estimates related to the provision of Brumadinho |
23 |
49 |
(20) |
| Review of estimates related to the provision of de-characterization of dams |
25 |
(65) |
(131) |
| Depreciation, depletion and amortization |
|
1,484 |
1,507 |
| Financial results, net |
6 |
(352) |
1,689 |
| Changes in assets and liabilities: |
|
|
|
| Accounts receivable |
10 |
157 |
1,768 |
| Inventories |
11 |
(383) |
(461) |
| Suppliers and contractors |
12 |
722 |
(150) |
| Other assets and liabilities, net |
|
(756) |
(1,000) |
| Cash flow from operations |
|
5,396 |
6,832 |
b) Cash flow from investing activities
| Schedule of cash flow from investing activities |
|
|
|
| |
|
Six-month period ended June 30, |
| |
Notes |
2025 |
2024 |
| Proceeds from the partial disposal of VBML shares |
15(c) |
— |
2,455 |
| Proceeds from the partial disposal of PTVI shares |
15(b) |
— |
155 |
| Cash received from disposal of investments, net |
|
– |
2,610 |
c) Reconciliation of debt to cash flows arising from
financing activities
| Schedule of reconciliation of debt to cash flows |
|
|
|
|
| |
Quoted in the secondary market |
Other debt contracts in Brazil |
Other debt contracts on the international market |
Total |
| December 31, 2024 |
8,539 |
337 |
5,916 |
14,792 |
| Additions |
1,830 |
– |
1,457 |
3,287 |
| Payments |
(361) |
(22) |
(587) |
(970) |
| Interest paid (i) |
(309) |
(9) |
(191) |
(509) |
| Cash flow from financing activities |
1,160 |
(31) |
679 |
1,808 |
| Transfer to held for sale (Energy Assets) |
(210) |
(30) |
– |
(240) |
| Effect of exchange rate |
168 |
24 |
24 |
216 |
| Interest accretion |
393 |
9 |
168 |
570 |
| Non-cash changes |
351 |
3 |
192 |
546 |
| June 30, 2025 |
10,050 |
309 |
6,787 |
17,146 |
| |
|
|
|
|
| December 31, 2023 |
7,474 |
250 |
4,747 |
12,471 |
| Additions |
1,000 |
– |
960 |
1,960 |
| Payments |
(51) |
(24) |
(517) |
(592) |
| Interest paid (i) |
(227) |
(11) |
(159) |
(397) |
| Cash flow from financing activities |
722 |
(35) |
284 |
971 |
| Effect of exchange rate |
(53) |
(30) |
29 |
(54) |
| Interest accretion |
227 |
11 |
144 |
382 |
| Non-cash changes |
174 |
(19) |
173 |
328 |
| June 30, 2024 |
8,370 |
196 |
5,204 |
13,770 |
(i) Classified as operating activities
in the statement of cash flows.
Funding
| • | In June 2025, the
Company issued debentures of US$1,080 (R$6 billion) indexed to IPCA plus 6.76% to 6.89% per year, paid semi-annually. The issuance was
structured in three series of R$2 billion each, maturing in 2032, 2035, and 2037. The proceeds will be used in infrastructure projects
related with the railway concessions. |
| • | In June 2025, the
Company contracted loan of US$150 with Bank of China indexed to SOFR plus spread adjustments and maturing in 2030. |
| • | In June 2025, the
Company contracted a loan of US$100 with HSBC Bank indexed to SOFR plus spread adjustments and maturing in 2028. |
| • | In June 2025, the
Company contracted a loan of US$247 with Industrial and Commercial Bank of China indexed to SOFR plus spread adjustments and maturing
in 2030. |
| • | In May 2025, the Company
contracted a loan of US$100 with Oversea-Chinese Banking Corporation indexed to SOFR plus spread adjustments and maturing in 2026. |
| • | In March 2025, the
Company contracted a loan of US$50 with DBS Bank indexed to SOFR plus spread adjustments and maturing in 2026. |
| • | In March 2025, the
Company contracted a loan of US$270 with Credit Agricole Bank indexed to SOFR plus spread adjustments and maturing in 2029. |
| • | In February 2025,
the Company issued bonds of US$750 with a coupon of 6.40% per year, payable semi-annually, and maturing in 2054. |
| • | In February 2025,
the Company contracted a loan of US$270 with Credit Agricole Bank indexed to SOFR plus spread adjustments and maturing in 2029. |
| • | In January 2025, the
Company contracted a loan of US$271 with Credit Agricole Bank indexed to SOFR plus spread adjustments and maturing in 2029. |
| • | In March 2024, the
Company contracted a loan of US$360 with the Japan Bank of International Cooperation (“JBIC”) indexed to SOFR plus spread
adjustments and maturing in 2035. |
| • | In March 2024, the
Company contracted a loan of US$60 with the CIBC indexed to SOFR plus spread adjustments and maturing in 2024. |
| • | In February 2024,
the Company contracted a loan of US$166 with Banco Santander indexed to SOFR plus spread adjustments and maturing in 2025. |
| • | In February 2024, the Company contracted a loan
of US$34 with Credit Agricole Bank indexed to SOFR plus spread adjustments and maturing in 2025. |
| • | From January to February
2024, the Company contracted a loan of US$250 with Banco Bradesco with a fixed rate maturing in 2025. |
Payments
| • | In April 2025, the
Company paid principal and interest of debentures, in the amount of US$28. |
| • | In March 2025, Vale
redeemed notes maturing in 2034, 2036 and 2039, in the total amount of US$329 and paid a premium of US$44, recorded as “Bond premium
repurchase” in the financial results for the six-month period ended June 30, 2025. |
| • | In March 2025, the
Company partially settled the loan contracted with The New Development Bank ("NDB"), in the amount of US$150. |
| • | In January 2024, the
Company paid principal and interest of debentures, in the amount of US$46. |
d) Non-cash transactions
| Schedule of non-cash transactions |
|
|
| |
Six-month period ended June 30, |
| |
2025 |
2024 |
| Non-cash transactions: |
|
|
| Additions to PP&E with capitalized loans and borrowing costs |
12 |
13 |
|