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v3.23.3

Loans, borrowings, leases, cash and cash equivalents and short-term investments | 6 Months Ended
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Jun. 30, 2023
Notes and other explanatory information [abstract] |
Loans, borrowings, leases, cash and cash equivalents and short-term investments |
| 21. | Loans, borrowings, leases, cash and cash equivalents and short-term investments
a) Net debt The Company monitors the net debt with the objective of ensuring the continuity of its business in the long term.
Schedule of net debt |  |  |  |
|  | June 30, 2023 |  | December 31, 2022
Debt contracts |  | 12,417 |  | 11,181
Leases |  | 1,520 |  | 1,531
Total of loans, borrowings and leases |  | 13,937 |  | 12,712
(-) Cash and cash equivalents |  | 4,983 |  | 4,736
(-) Short-term investments (i) |  | 46 |  | 61
Net debt |  | 8,908 |  | 7,915
(i) | Substantially comprises investments in exclusive investment fund, whose portfolio is composed of committed transactions and Selic Treasury Notes (“LFTs”), which are floating-rate securities issued by the Brazilian government.
b) Cash and cash equivalents
Schedule of cash and cash equivalents |  |
| June 30, 2023 | December 31, 2022
R$ | 1,147 | 1,770
US$ | 3,598 | 2,798
Other currencies | 238 | 168
| 4,983 | 4,736
| c) | Loans, borrowings, and leases
i) Total debt
Schedule of total debt |  |  |
|  | Current liabilities | Non-current liabilities
| Average interest rate (i) | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022
Quoted in the secondary market: |  |  |  |  |
US$ Bonds | 6.02% | - | - | 7,157 | 6,157
R$ Debentures (ii) | 10.07% | 95 | 47 | 132 | 186
Debt contracts in Brazil in (iii): |  |  |  |  |
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI | 10.62% | 50 | 46 | 226 | 232
R$, with fixed interest | 3.04% | - | 2 | - | -
Debt contracts in the international market in: |  |  |  |  |
US$, with variable and fixed interest | 5.37% | 400 | 54 | 4,112 | 4,212
Other currencies, with variable interest | 4.10% | - | - | 9 | 9
Other currencies, with fixed interest | 3.87% | 12 | 11 | 68 | 78
Accrued charges |  | 156 | 147 | - | -
|  | 713 | 307 | 11,704 | 10,874
(i) | In order to determine the average interest rate for debt contracts with floating rates, the Company used the rate applicable as of June 30, 2023.
(ii) | The Company has debentures in Brazil obtained for the Company's infrastructure investment projects.
(iii) | The Company entered into derivatives to mitigate the exposure to cash flow variations of all floating rate debt contracted in Brazil, resulting in an average cost of 3.42% per year in US$.
Future flows of debt payments, principal and interest
Schedule of reconciliation of debt to cash flows arising from financing activities |  |
| Principal | Estimated future interest payments (i)
2023 | 39 | 387
2024 | 657 | 759
2025 | 451 | 733
2026 | 572 | 702
2027 | 1,700 | 609
Between 2028 and 2030 | 3,125 | 1,519
2031 onwards | 5,717 | 2,173
Total | 12,261 | 6,882
(i) | Based on interest rate curves and foreign exchange rates applicable as of June 30, 2023 and considering that the payments of principal will be made on their contracted payments dates. The amount includes the estimated interest not yet accrued and the interest already recognized in the interim financial statements.
Covenants Some of the Company’s debt agreements with lenders contain financial covenants. The primary financial covenants in those agreements require maintaining certain ratios, such as debt to EBITDA (as defined in note 4a) and interest coverage. The Company did not identify any instances of noncompliance as of June 30, 2023. ii) Lease liabilities
Schedule of lease liabilities |  |  |  |  |  |
| December 31, 2022 | Additions and contract modifications | Payments (i) | Interest | Translation adjustment | June 30, 2023
Ports | 690 | - | (34) | 12 | 6 | 674
Vessels | 441 | 5 | (32) | 8 | (2) | 420
Pelletizing plants | 222 | 12 | (2) | 5 | 18 | 255
Properties | 105 | - | (19) | 2 | 8 | 96
Energy plants | 52 | - | (2) | 2 | - | 52
Mining equipment | 21 | 2 | (3) | 1 | 2 | 23
Total | 1,531 | 19 | (92) | 30 | 32 | 1,520
Current liabilities | 182 |  |  |  |  | 199
Non-current liabilities | 1,349 |  |  |  |  | 1,321
Total | 1,531 |  |  |  |  | 1,520
(i) | The total amount of the variable lease payments not included in the measurement of lease liabilities for the six-month period ended June 30, 2023 was US$74 (2022: US$143).
Annual minimum payments and remaining lease term The following table presents the undiscounted lease obligation by maturity date. The lease liability recognized in the statement of financial position is measured at the present value of such obligations.
Schedule of annual minimum payments related |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 onwards |  | Total |  | Average remaining term (years) |  | Discount rate
Ports |  | 49 |  | 66 |  | 65 |  | 52 |  | 697 |  | 929 |  | 3 to 20 |  | 3% to 5%
Vessels |  | 46 |  | 60 |  | 59 |  | 54 |  | 292 |  | 511 |  | 2 to 10 |  | 3% to 4%
Pelletizing plants |  | 59 |  | 50 |  | 47 |  | 17 |  | 115 |  | 288 |  | 1 to 10 |  | 2% to 5%
Properties |  | 25 |  | 28 |  | 18 |  | 16 |  | 38 |  | 125 |  | 1 to 10 |  | 1% to 6%
Energy plants |  | 5 |  | 7 |  | 7 |  | 6 |  | 46 |  | 71 |  | 1 to 7 |  | 5% to 6%
Mining equipment |  | 6 |  | 6 |  | 6 |  | 5 |  | 2 |  | 25 |  | 1 to 5 |  | 2% to 6%
Total |  | 190 |  | 217 |  | 202 |  | 150 |  | 1,190 |  | 1,949 |  |  |  |

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- Definition The disclosure of borrowings. [Refer: Borrowings] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 + Details
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