Financial and capital risk management (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Notes and other explanatory information [abstract] |
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| Schedule of derivatives effects on statement of financial position |
| Schedule of derivatives effects on statement of financial position |
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|
|
|
| |
June 30, 2026 |
December 31, 2025 |
| |
Assets |
Liabilities |
Assets |
Liabilities |
| Foreign exchange and interest rate risk |
918 |
181 |
588 |
133 |
| Commodities price risk |
117 |
137 |
29 |
13 |
| Embedded derivatives |
– |
2 |
– |
– |
| Total |
1,035 |
320 |
617 |
146 |
|
| Schedule of net exposure |
| Schedule of net exposure |
|
|
| |
June 30, 2026 |
December 31, 2025 |
| Foreign exchange and interest rate risk (i) |
737 |
455 |
| Commodities price risk |
(20) |
16 |
| Embedded derivatives |
(2) |
– |
| Total |
715 |
471 |
(i) Includes a positive balance of US$367 and
US$181 as of June 30, 2026 and December 31, 2025, respectively, related to transactions to mitigate foreign exchange and interest rate
fluctuations on loans, borrowings and provisions related to Brumadinho and Samarco.
|
| Schedule of effects of derivatives on income |
| Schedule of effects of derivatives on income |
|
|
|
|
| |
Gain (loss) recognized in the income statement |
| |
Three-month period ended June 30, |
Six-month period ended June 30, |
| |
2026 |
2025 |
2026 |
2025 |
| Foreign exchange and interest rate risk |
192 |
557 |
554 |
1,321 |
| Commodities price risk |
(254) |
(9) |
111 |
(9) |
| Embedded derivatives |
– |
– |
(2) |
1 |
| Total |
(62) |
548 |
663 |
1,313 |
|
| Schedule of effects of derivatives on cash flows |
| Schedule of effects of derivatives on cash flows |
|
|
| |
Financial settlement inflows (outflows) |
| Six-month period ended June 30, |
2026 |
2025 |
| Foreign exchange and interest rate risk |
306 |
297 |
| Commodities price risk |
147 |
(14) |
| Total |
453 |
283 |
|
| Schedule of foreign exchange and interest rates volatility |
| Schedule of foreign exchange and interest rates volatility |
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|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
June 30, 2026 |
December 31, 2025 |
June 30, 2026 |
December 31, 2025 |
2027 |
2028 |
2029+ |
| Foreign Exchange and Interest Rate Derivatives |
US$ 12,578 |
US$ 9,201 |
737 |
455 |
271 |
182 |
284 |
|
| 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 |
737 |
(1,005) |
(2,834) |
| US$ interest rate inside Brazil decrease |
737 |
522 |
276 |
| Brazilian interest rate increase |
737 |
46 |
(520) |
| TJLP interest rate decrease |
737 |
738 |
738 |
| IPCA index decrease |
737 |
550 |
377 |
| SOFR interest rate decrease |
737 |
716 |
693 |
|
| Schedule of protection program for product price |
| Schedule
of protection program for product price |
|
|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
June 30, 2026 |
December 31, 2025 |
June 30, 2026 |
December 31, 2025 |
2027 |
2028 |
2029+ |
| Brent crude oil (bbl) |
|
|
|
|
|
|
|
| Options |
28,959,063 |
22,224,999 |
(43) |
(5) |
50 |
(93) |
– |
| |
|
|
|
|
|
|
|
| Bunker (tons) |
|
|
|
|
|
|
|
| Bunker fowards |
480 |
– |
(11) |
– |
– |
(11) |
– |
| |
|
|
|
|
|
|
|
| Forward Freight Agreement (days) |
|
|
|
|
|
|
|
| Freight forwards |
4,020 |
2,070 |
16 |
15 |
12 |
3 |
1 |
| |
|
|
|
|
|
|
|
| Fixed price Nickel sales protection (ton) |
|
|
|
|
|
|
|
| Nickel forwards |
28,398 |
3,557 |
18 |
5 |
18 |
– |
– |
|
| 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 |
(54) |
(464) |
(938) |
| Forward Freight Agreement (days) |
Decrease in freight price |
16 |
(11) |
(39) |
| Hedge for fixed-price nickel sales (tons) |
Decrease in nickel price |
18 |
(18) |
(83) |
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| Schedule of embedded derivatives |
| Schedule
of embedded derivatives |
|
|
|
|
|
|
|
| |
Notional |
Fair value |
Fair value by year |
| Flow |
June 30, 2026 |
December 31, 2025 |
June 30, 2026 |
December 31, 2025 |
2027 |
2028 |
2029+ |
| Embedded derivative (pellet price) in natural gas purchase agreement (volume/month) |
|
|
|
|
|
|
|
| Call options |
746,667 |
746,667 |
(2) |
– |
– |
– |
(2) |
|
| 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 |
(2) |
(5) |
(12) |
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| Schedule of effects of derivatives on other comprehensive income |
| Schedule of effects of derivatives on other comprehensive income |
|
|
|
|
| |
Gain recognized in the other comprehensive income |
| |
Three-month period ended June 30, |
Six-month period ended June 30, |
| |
2026 |
2025 |
2026 |
2025 |
| Net investment hedge |
33 |
115 |
169 |
286 |
|
| Schedule of ratings published by Moody's regarding the main financial institutions |
| Schedule of ratings published by Moody's regarding the main financial institutions |
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|
|
|
| |
June 30, 2026 |
December 31, 2025 |
| |
Cash and cash equivalents and investment |
Derivatives |
Cash and cash equivalents and investment |
Derivatives |
| Aa2 |
507 |
7 |
721 |
1 |
| Aa3 |
32 |
– |
– |
– |
| A1 |
2,139 |
307 |
2,918 |
169 |
| A2 |
1 |
17 |
1 |
– |
| A3 |
887 |
104 |
1,339 |
61 |
| Baa1 |
– |
– |
– |
– |
| Baa2 |
13 |
– |
2 |
– |
| Baa3 |
28 |
– |
55 |
– |
| Ba1 (i) |
1,383 |
295 |
1,658 |
198 |
| Ba2 (i) |
775 |
305 |
872 |
188 |
| |
5,765 |
1,035 |
7,566 |
617 |
(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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