Financial and capital risk management (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Notes and other explanatory information [abstract] |
|
| Schedule of derivatives effects on statement of financial position |
| Schedule
of derivatives effects on statement of financial position |
|
|
|
|
| |
December 31, 2025 |
December 31, 2024 |
| |
Assets |
Liabilities |
Assets |
Liabilities |
| Foreign exchange and interest rate risk |
588 |
133 |
52 |
601 |
| Commodities price risk |
29 |
13 |
16 |
23 |
| Embedded derivatives |
– |
– |
– |
1 |
| Total |
617 |
146 |
68 |
625 |
|
| Schedule of net exposure |
| Schedule
of net exposure |
|
|
| |
December 31, 2025 |
December 31, 2024 |
| Foreign exchange and interest rate risk (i) |
455 |
(549) |
| Commodities price risk |
16 |
(7) |
| Embedded derivatives |
– |
(1) |
| Total |
471 |
(557) |
(i) Includes a positive (negative)
balance of US$181 and US$(334) as of 31 December 2025 and 2024, respectively, related to transactions to mitigate foreign exchange and
interest rate fluctuations on loans, borrowings and provisions related to Brumadinho and Samarco.
|
| Schedule of effects of derivatives on income |
| Schedule
of effects of derivatives on income |
|
|
|
| |
Gain (loss) recognized in the income statement |
| Year ended December 31, |
2025 |
2024 |
2023 |
| Foreign exchange and interest rate risk |
1,605 |
(1,187) |
900 |
| Commodities price risk |
10 |
(23) |
– |
| Embedded derivatives |
1 |
1 |
3 |
| Total |
1,616 |
(1,209) |
903 |
|
| Schedule of effects of derivatives on cash flows |
| Schedule
of effects of derivatives on cash flows |
|
|
|
| |
Financial settlement inflows (outflows) |
| Year ended December 31, |
2025 |
2024 |
2023 |
| Foreign exchange and interest rate risk |
592 |
5 |
476 |
| Commodities price risk |
(13) |
6 |
6 |
| Derivatives designated as cash flow hedge accounting |
– |
– |
85 |
| Total |
579 |
11 |
567 |
|
| Schedule of foreign exchange and interest rates volatility |
| Schedule
of foreign exchange and interest rates volatility |
|
|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
2026 |
2027 |
2028+ |
| Foreign Exchange and Interest Rate Derivatives |
US$ 9,201 |
US$ 11,490 |
455 |
(549) |
305 |
64 |
86 |
|
| Schedule of sensitivity analysis financial instruments |
| Schedule
of sensitivity analysis financial instruments |
|
|
|
| Instrument's main risk events |
Fair value |
Scenario I (∆ of 25%) |
Scenario II (∆ of 50%) |
| R$ depreciation |
455 |
(934) |
(2,324) |
| US$ interest rate inside Brazil decrease |
455 |
286 |
90 |
| Brazilian interest rate increase |
455 |
101 |
(191) |
| TJLP interest rate decrease |
455 |
453 |
451 |
| IPCA index decrease |
455 |
268 |
97 |
| SOFR interest rate decrease |
455 |
429 |
403 |
|
| Schedule of protection program for product price |
| Schedule of protection program for product price |
|
|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
2026 |
2027 |
2028+ |
| Brent crude oil (bbl) |
|
|
|
|
|
|
|
| Options |
22,224,999 |
24,050,625 |
(5) |
11 |
(5) |
– |
– |
| |
|
|
|
|
|
|
|
| Forward Freight Agreement (days) |
|
|
|
|
|
|
|
| Freight forwards |
2,070 |
3,240 |
15 |
(11) |
15 |
– |
– |
| |
|
|
|
|
|
|
|
| Fixed price Nickel sales protection (ton) |
|
|
|
|
|
|
|
| Nickel forwards |
3,557 |
4,978 |
5 |
(7) |
5 |
– |
– |
| |
|
|
|
|
|
|
|
| Fixed price Cobalt sales protection (tons) |
|
|
|
|
|
|
|
| Cobalt forwards |
26 |
– |
1 |
– |
1 |
– |
– |
|
| Schedule of derivative financial instruments |
| Schedule
of derivative financial instruments |
|
|
|
|
| Instrument |
Instrument's main risk events |
Fair value |
Scenario I (∆ of 25%) |
Scenario II (∆ of 50%) |
| Brent crude oil (bbl) |
Decrease in fuel oil price |
(5) |
(125) |
(423) |
| Forward Freight Agreement (days) |
Decrease in freight price |
15 |
2 |
(11) |
| Hedge for fixed-price nickel sales (tons) |
Decrease in nickel price |
5 |
5 |
5 |
| Hedge for fixed-price cobalt sales (tons) |
Decrease in cobalt price |
1 |
– |
– |
|
| Schedule of embedded derivatives |
| Schedule
of embedded derivatives |
|
|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
2026 |
2026 |
2027+ |
| Embedded derivative (pellet price) in natural gas purchase (volume/month) |
|
|
|
|
|
|
|
| Call options |
746,667 |
746,667 |
– |
(1) |
– |
– |
– |
|
| Schedule of sensitivity analysis of other derivatives financial instruments |
| Schedule
of sensitivity analysis of other derivatives financial instruments |
|
|
|
|
| Instrument |
Instrument's main risk events |
Fair value |
Scenario I (∆ of 25%) |
Scenario II (∆ of 50%) |
| Embedded derivative (pellet price) in natural gas purchase agreement (volume/month) |
|
|
|
|
| Embedded derivatives - Gas purchase |
Pellet price increase |
– |
– |
– |
|
| Schedule of effects of derivatives on other comprehensive income |
| Schedule
of effects of derivatives on other comprehensive income |
|
|
|
| |
Gain (loss) recognized in the other comprehensive income |
| Year ended December 31, |
2025 |
2024 |
2023 |
| Net investments hedge |
273 |
(500) |
139 |
| Cash flow hedge |
– |
– |
(19) |
|
| Schedule of carrying amount of the financial assets that represent the exposure to credit risk |
| Schedule of carrying amount of the financial assets that represent the exposure to credit risk |
|
|
|
| |
Notes |
December 31, 2025 |
December 31, 2024 |
| Cash and cash equivalents |
19(a) |
7,372 |
4,953 |
| Short-term investments |
19(a) |
194 |
53 |
| Restricted cash |
23 |
9 |
13 |
| Judicial deposits |
|
651 |
537 |
| Derivative financial instruments |
|
617 |
68 |
| Investments in equity securities |
23 |
63 |
54 |
| Total |
|
8,906 |
5,678 |
|
| Schedule of ratings published by Moody's regarding the main financial institutions |
| Schedule
of ratings published by Moody's regarding the main financial institutions |
|
|
|
|
| |
December 31, 2025 |
December 31, 2024 |
| |
Cash and cash equivalents and investment |
Derivatives |
Cash and cash equivalents and investment |
Derivatives |
| Aa2 |
721 |
1 |
391 |
1 |
| A1 |
2,918 |
169 |
1,874 |
28 |
| A2 |
1 |
– |
520 |
13 |
| A3 |
1,339 |
61 |
709 |
2 |
| Baa1 |
– |
– |
1 |
– |
| Baa2 |
2 |
– |
4 |
– |
| Baa3 |
55 |
– |
– |
– |
| Ba1 (i) |
1,658 |
198 |
719 |
18 |
| Ba2 (i) |
872 |
188 |
788 |
6 |
| |
7,566 |
617 |
5,006 |
68 |
(i) A substantial part of the balances
is held with financial institutions in Brazil which are deemed investment grade in local currency.
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