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Vale(VALE) - 2024 Q4 - Annual Report
VALEVale(VALE)2025-03-18 10:11

Financial Performance - Vale reported R206.0billioninnetoperatingrevenueandR 206.0 billion in net operating revenue and R 31.6 billion in net income attributable to shareholders for 2024, marking a significant financial performance[9]. - The company achieved 328 Mt of iron ore production, a 6.3% increase year-over-year, and 307 Mt of iron ore sales, reflecting a 1.9% increase[9][12]. - Vale's copper production reached 348 kt, exceeding the 2024 guidance with a 6.6% year-over-year increase, while nickel production decreased by 3.0% to 160 kt[10]. - The company allocated R32.7billionininvestments,includingR 32.7 billion in investments, including R 24.8 billion in sustaining CAPEX, and approved R4.76pershareindividendsforFY2024[10].−Valeclosed2024withamarketcapitalizationofapproximatelyR 4.76 per share in dividends for FY 2024[10]. - Vale closed 2024 with a market capitalization of approximately R 232.9 billion, down from R331.9billionin2023,reflectingayear−over−yeardecreaseof29.3 331.9 billion in 2023, reflecting a year-over-year decrease of 29.3%[84]. - The average trading volume for VALE3 was R 1,449 million in 2024, compared to R1,855millionin2023[86].OperationalAchievements−Valeachievedallproductionguidancefor2024,withironoreproductionat328Mt,pelletsat37Mt,nickelat160kt,andcopperat348kt[45].−ThecommissioningoftheVargemGrandeandCapanemaprojectsisunderway,expectedtoincreaseproductioncapacityby30Mtpyuponcompletion[1].−Vale′soperationalefficiencyimprovementsledtothelowestC1ironorecostforaquartersince2021andthelowestAll−inCoppercostsince2020[46].SustainabilityInitiatives−Vale′ssustainabilityinitiativesincludeda68 1,855 million in 2023[86]. Operational Achievements - Vale achieved all production guidance for 2024, with iron ore production at 328 Mt, pellets at 37 Mt, nickel at 160 kt, and copper at 348 kt[45]. - The commissioning of the Vargem Grande and Capanema projects is underway, expected to increase production capacity by 30 Mtpy upon completion[1]. - Vale's operational efficiency improvements led to the lowest C1 iron ore cost for a quarter since 2021 and the lowest All-in Copper cost since 2020[46]. Sustainability Initiatives - Vale's sustainability initiatives included a 68% reduction in the Total Recordable Injury Frequency Rate (TRIFR) compared to the baseline year 2019[13]. - The company has protected over 200,000 hectares cumulatively by 2024, focusing on environmental and social commitments, particularly in the Amazon[34]. - The company is committed to eliminating all level 3 emergency dams by 2025, having reduced the number of such structures by 60% compared to the historical peak in 2020[43]. - Vale aims for a 27% cumulative reduction in specific freshwater use by 2030, with ongoing sustainability projects[156]. - The company is committed to helping lift 500,000 people out of extreme poverty by 2030, with around 51,000 people currently involved in proof-of-concept projects[161]. - The company completed 75% of total obligations under the Judicial Settlement for Integral Reparation related to the Brumadinho dam collapse, including 39% of performance obligations and 91% of payment obligations[188]. Community Engagement and Social Responsibility - In 2024, the company engaged with 1,215 local communities, implementing 368 Local Community Engagement Plans, with 93.5% coverage of priority communities in Brazil[165]. - The company recorded 98 accidents involving community members in 2024, a 3% increase from 2023, resulting in 12 fatalities, and aims to reduce such incidents by 40% by 2027[169]. - The company achieved R 11.6 billion in social, environmental, and institutional expenditures in 2024, with R4,956millionallocatedforsocialinitiativesandR 4,956 million allocated for social initiatives and R 6,618 million for environmental initiatives[169]. - 434 local associations and small businesses supported, benefiting over 16,000 people[193]. - 550+ water supply facilities built, potentially benefiting over 5 million people[196]. Diversity and Employee Engagement - Vale reached a 26.5% representation of women in its workforce, doubling its goal set for 2024[108]. - Vale's employee engagement survey recorded an 83% approval rate, reflecting a 1 percentage point increase from 2023[99]. - The company achieved a 57% reduction in "very high" risk situations in 2024 compared to previous years[115]. - Vale's commitment to diversity led to a 37.7% representation of black individuals in leadership positions, progressing towards a goal of 40% by 2026[109]. Environmental Management - The company implemented the Global Industry Standard on Tailings Management (GISTM) for 48 of its 50 Tailings Storage Facilities by August 2023[142]. - The company has reduced the number of structures at any emergency level in Brazil by 60% since 2020, from a peak of 35 structures to 14[135]. - The maximum emergency level of the Sul Superior dam was reduced from level 3 to level 2 in 2024 due to new geotechnical surveys and monitoring[136]. - 48% of disturbed land under environmental rehabilitation, out of a total of 658 hectares[196]. - 228,000 native seedlings planted in Minas Gerais[199].