Vale Q3 2025 presentation slides: EBITDA jumps 17% as production reaches multi-year highs

Vale SA (NYSE:VALE) delivered a strong performance in the third quarter of 2025, with significant growth in EBITDA and production volumes reaching their highest levels in several years, according to the company’s latest presentation released on October 31, 2025.

Quarterly Performance Highlights

The Brazilian mining giant reported a proforma EBITDA of $4.4 billion for Q3 2025, representing a 16.6% increase compared to the $3.77 billion recorded in the same period last year. This improvement was primarily driven by higher production volumes, improved pricing, and cost optimization across its key business segments.

Iron ore production reached 94 million tonnes in Q3 2025, a 4% year-over-year increase, while copper production grew 6% to 91,000 tonnes. Nickel production remained relatively stable at 47,000 tonnes, a slight 1% decrease from Q3 2024. The company indicated it is on track to reach the upper end of its production guidance across these segments.

As shown in the following chart detailing production performance across Vale’s key segments:

The company’s iron ore sales reached 86 million tonnes in Q3 2025, up from 81.8 million tonnes in Q3 2024. However, the presentation noted that production exceeded sales by 8.4 million tonnes due to inventory build-up and value chain mass loss, indicating potential for increased sales in coming quarters.

The following chart illustrates the relationship between iron ore production and sales:

Strategic Initiatives

Vale has successfully launched operations at the second furnace at Onça Puma in September 2025, adding 15,000 tonnes per year of nickel capacity and bringing the total site capacity to 40,000 tonnes annually. The project was completed with a CAPEX of $480 million, 13% below budget, and is expected to position in the first quartile of the cost curve with an anticipated unit cost of approximately $9,500 per tonne.

The following image shows the Onça Puma industrial complex:

The company also highlighted its Novo Carajás Program, a strategic initiative aimed at unlocking value from its iron and copper resources with an investment of R$70 billion planned for 2025-2030. The program includes expansions at Serra Leste, Serra Sul, and the development of Bacaba, with significant capacity additions for both iron ore and copper production.

ESG and Safety Improvements

Vale demonstrated substantial progress in its dam safety initiatives, reducing the number of dams at emergency levels by 71% since 2020. The company reported that 60% of its dam decharacterization program has been completed, with 18 of 30 dams eliminated.

The presentation also highlighted improvements in ESG ratings, with upgrades from MSCI (from CCC to B), Sustainalytics (from High risk 54.5 to Medium risk 27), and ISS Governance (from 8 to 1), reflecting the company’s commitment to sustainability and responsible mining practices.

Financial Analysis

Vale’s financial performance showed significant improvement, with EBITDA growth driven by multiple factors including higher production volumes, improved pricing, and cost optimization.

The following waterfall chart breaks down the EBITDA growth from Q3 2024 to Q3 2025:

The company reported a recurring free cash flow of $1.56 billion for Q3 2025. After accounting for one-time items, including the Aliança Energia deal ($1.01 billion), Brumadinho & Samarco payments (-$1.28 billion), and interest on capital payments (-$1.49 billion), Vale achieved a net increase in cash and equivalents of $357 million.

The comprehensive breakdown of Vale’s free cash flow components is illustrated in this chart:

Cost performance has been a key focus area, with iron ore C1 cash costs at $20.7 per tonne in Q3 2025, slightly higher than the $20.6 per tonne in Q3 2024 but within the guidance range of $20.5-22.0 per tonne. All-in costs for iron ore and pellets decreased to $52.9 per tonne from $55.1 per tonne a year earlier, primarily due to higher fines quality premiums and lower freight costs.

Base metals costs showed significant improvement, with copper all-in costs dropping from $2,900 per tonne in Q3 2024 to $1,000 per tonne in Q3 2025, while nickel all-in costs decreased from $18,100 per tonne to $12,300 per tonne. The company has revised its cost guidance downward for both metals.

The following chart illustrates the base metals cost trends:

Vale’s expanded net debt decreased from $17.45 billion in Q2 2025 to $16.64 billion in Q3 2025, moving toward the mid-range of its target between $10 billion and $20 billion.

Forward-Looking Statements

Looking ahead, Vale is focused on continuing its operational excellence initiatives, portfolio optimization, and strategic growth projects. The company emphasized its commitment to balancing capital expenditure, growth investments, and shareholder returns.

According to the earnings call transcript, CEO Gustavo Pimenta expressed confidence in Vale’s strategic direction: "Our vision to become a trusted partner with the most competitive and resilient portfolio in the industry remains solid."

The company’s ongoing projects, particularly the Novo Carajás Program, are expected to enhance production capacity and profitability in the coming years, while continued focus on ESG improvements and safety standards should strengthen Vale’s market position as a responsible mining company.

With its strong operational performance, strategic expansions, and improved financial position, Vale appears well-positioned for sustainable growth despite potential challenges from market volatility and regulatory changes in the global mining industry.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.