Solid Operational Performance: Vale reported a pro forma EBITDA of $3.4 billion for Q2 2025, a 7% increase quarter-on-quarter, but down 14% year-on-year, attributed mainly to a 13% decline in iron ore reference prices. Notably, iron ore production reached 84 million tons, a 4% increase YOY, reflecting the ramp-up of new assets and operational excellence.

Cost Reductions Across Commodities: The company achieved significant reductions in cash costs: a 10% decline in iron ore costs to $22.2 per ton; a 60% reduction in copper costs to $1,450 per ton; and a 30% decrease in nickel costs, attributed to efficiency initiatives and favorable conditions. This positions Vale well to meet its 2025 cost guidance.

Dividend and Capital Allocation: Vale's Board approved a distribution of $1.4 billion in interest on capital, reaffirming the company¡¯s commitment to returning value to shareholders. There are plans to evaluate potential buyback programs in the second half of 2025, contingent upon cash flow and debt levels. Investors are encouraged by this commitment but expect clarity on extraordinary dividends.