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Cash flows reconciliation
 12 Months Ended
Dec. 31, 2022
Cash Flows Reconciliation  
Cash flows reconciliation

 

10.Cash flows reconciliation

 

 

a) Cash flow from operating activities:

 

               
        Year ended December 31,
    Notes   2022   2021   2020
Cash flow from operating activities:                
Income before income taxes       19,781   29,541   6,990
Adjusted for:                
Equity results and other results in associates and joint ventures   15 and 25   (305)   1,271   1,020
Impairment and disposals (impairment reversal) of non-current assets, net   19   (773)   426   1,308
Provisions related to Brumadinho   24   400   201   4,130
Provision for de-characterization of dams   26   72   1,725   617
Depreciation, depletion and amortization       3,171   3,034   3,215
Financial results, net   6   (2,268)   (3,119)   4,813
Changes in assets and liabilities:                
Accounts receivable   11   (325)   1,029   (2,544)
Inventories   12   45   (503)   (183)
Suppliers and contractors   13   495   251   (222)
Other assets and liabilities, net       (1,531)   (442)   (250)
Cash flow from operations       18,762   33,414   18,894

 

 

b) Cash flow from investing activities

 

               
        Year ended December 31,
    Notes   2022   2021   2020
Disbursement related to VNC sale   16(f)    -   (555)   -
Proceeds from sale of CSI   16(c)   437   -   -
Proceeds from sale of Midwestern System, net of cash    16(b)   140   -   -
Proceeds from disposal of Mosaic shares   16(l)   -   1,259   -
Proceeds from sale of Vale Florestar    -   9   10   10
Proceeds from disposal of VLI shares   16(h)    -   -   241
Proceeds from sale of Longyu   16(j)    -   -   156
Proceeds from disposal of investments, net       586   714   407

 

c) Reconciliation of debt to cash flows arising from financing activities

 

               
    Quoted in the secondary market   Debt contracts in Brazil   Debt contracts on the international market   Total
December 31, 2020   9,046   959   3,355   1,336
Additions   -       930   930
Payments (i)   (922)   (373)   (632)   (1,927)
Interest paid (ii)   (501)   (117)   (75)   (693)
Cash flow from financing activities   (1,423)   (490)   223   (1,690)
                 
Effect of exchange rate   (118)   (199)   177   (140)
Interest accretion   469   110   71   650
Non-cash changes   351   (89)   248   510
                 
December 31, 2021   7,974   380   3,826   12,180
Additions                         -                           -     1,275   1,275
Payments (i)   (1,441)   (220)   (639)   (2,300)
Interest paid (ii)   (650)   (45)   (90)   (785)
Cash flow from financing activities   (2,091)   (265)   546   (1,810)
Effect of exchange rate   126   7   (55)   78
Interest accretion   488   158   87   733
Non-cash changes   614   165   32   811
December 31, 2022   6,497   280   4,404   11,181

 

(i)Includes bond premium repurchase.
(ii)Classified as operating activities in the statement of cash flows.

 

Funding

 

·In November 2022, the Company contracted a loan with the Export-Import Bank of China of US$300 (R$1,582 million) indexed to the Secured Overnight Financing Rate (“SOFR”) and maturing in 2025. The Company also drawdown US$200 (R$1,055 million) from a line of credit with Japan Bank International Cooperation (“JBIC”), which is maturing in 2032.

 

·In July 2022, the Company contracted a loan of US$150 (R$805 million) with SMBC Bank indexed to SOFR and maturing in 2027.

 

·In May 2022, the Company contracted a loan of US$200 (R$967 million) with MUFG Bank indexed to SOFR and maturing in 2027.

 

·In January 2022, the Company contracted two loans indexed to LIBOR, in the amount of US$425 (R$2,361 million) with maturity in 2027 with the Bank of Nova Scotia. Vale is in discussions to replace the reference interest rate from LIBOR to SOFR and does not expect a material change in the costs of this transaction.

 

·In October and December 2021, the Company contracted a loan indexed to LIBOR in the amounts of US$350 (R$1,953 million) and US$280 (R$1,563 million), maturing in 2027 and 2032, with a commercial bank and a Japanese development bank, respectively. Vale is in discussions to replace the reference interest rate from LIBOR to SOFR and does not expect a material change in the costs of this transaction.

 

·In January 2021, the Company contracted a loan of US$300 (R$1,633 million) with The New Development Bank maturing in 2035 and indexed to LIBOR + 2.49% per year. Vale is in discussions to replace the reference interest rate from LIBOR to SOFR and does not expect a material change in the costs of this transaction.

 

Payments

 

·In January 2023 (subsequent event), the Company paid principal and interest of debentures, in the amount of US$24 (R$124 million).

 

·In August 2022, the Company settle its infrastructure debentures of the 2nd series, by a payment of US$170 (R$865 million).

 

·In June 2022, the Company repurchased US$1,291 (R$6,520 million) of its bonds and paid a premium of US$113 (R$568 million), which has been recorded and is presented as “bond premium repurchase” under the financial results for the year ended December 31, 2022.

 

·In January 2022, the Company prepaid US$200 (R$993 million) of a line of credit maturing in 2023 with the Bank of Nova Scotia.

 

·In March 2021, the Company redeemed all of its 3.75% bonds due January 2023, in the total amount of US$884 (R$4,946 million) (EUR750 million) and paid a premium of US$63 (R$354 million), which was recorded and is presented as “bond premium repurchase” under the financial results for the year ended December 31, 2021.

 

d) Non-cash transactions

 

             
      Year ended December 31,
      2022   2021   2020
Non-cash transactions:              
Additions to property, plant and equipment - capitalized loans and borrowing costs     47   59   70