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Cash flows reconciliation
 6 Months Ended
Jun. 30, 2023
Cash Flows Reconciliation  
Cash flows reconciliation

 

9.Cash flows reconciliation

 

a) Cash flow from operating activities:

 

         
       
    Three-month period ended June 30, Six-month period ended June 30,
  Notes 2023 2022 2023 2022
Cash flow from operating activities:          
Income before income taxes   2,720 5,056 5,016 11,625
Adjusted for:          
Equity results and other results in associates and joint ventures 14 and 23 (5) 56 50 (155)
Impairment (impairment reversal) and results on disposal of non-current assets, net 15 and 17 66 82 70 (990)
Provisions related to Brumadinho 22 140 126 140 126
Provision for de-characterization of dams 24 - - - 37
Depreciation, depletion and amortization   779 810 1,435 1,496
Financial results, net 6 157 (821) 687 (579)
Changes in assets and liabilities:          
Accounts receivable 10 (247) 902 1,439 1,779
Inventories 11 (157) (305) (520) (609)
Suppliers and contractors 12 570 432 465 (240)
Other assets and liabilities, net   (764) (600) (1,243) (1,221)
Cash flow from operations   3,259 5,738 7,539 11,269

 

b) Cash flow from investing activities

 

 

         
   

Three-month period ended

June 30,

Six-month period ended

June 30,

  Notes 2023 2022 2023 2022
Cash received from the sale of California Steel Industries 15(d) - - - 437
Cash received from the sale of Companhia Siderúrgica do Pecém   - - 1,082 -
Cash contribution to Companhia Siderúrgica do Pecém 15(a) - - (1,149) -
Proceeds (payments) from disposal of investments, net   - - (67) 437
           
           

 

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

 

 

Reconciliation of debt to cash flows        
 

Quoted in the

secondary market

 Debt contracts in Brazil

Debt contracts on the

international market

 Total
December 31, 2022 6,497 280 4,404 11,181
Additions 1,500                       -   300 1,800
Payments (517) (38) (65) (620)
Interest paid (i) (237) (16) (116) (369)
Cash flow from financing activities 746 (54) 119 811
Effect of exchange rate 7 34 3 44
Interest accretion 234 16 131 381
Non-cash changes 241 50 134 425
June 30, 2023 7,484 276 4,657 12,417
         
  Quoted in the secondary market Debt contracts in Brazil Debt contracts on the international market Total
December 31, 2021 7,974 380 3,826 12,180
Additions - - 625 625
Payments (1,317) (174) (337) (1,828)
Interest paid (i) (388) (37) (31) (456)
Cash flow from financing activities (1,705) (211) 257 (1,659)
Effect of exchange rate 71 77 (76) 72
Interest accretion 318 89 31 438
Non-cash changes 389 166 (45) 510
June 30, 2022 6,658 335 4,038 11,031

 

(i)Classified as operating activities in the statement of cash flows.

 

Additions - In March 2023, the Company contracted a loan of US$300 with the Industrial and Commercial Bank of China Limited, Panama Branch (“ICBC”) indexed to Secured Overnight Financing Rate (“SOFR”) with spread adjustments and maturing in 2028.

 

In June 2023, Vale issued notes of US$1,500 with a coupon of 6.125% per year, payable semi-annually, and maturing in 2033. The notes were sold at a price of 99.117% of the principal amount, resulting in a yield to maturity of 6.245%.

 

In January 2022, the Company contracted two loans of US$425 with The Bank of Nova Scotia, indexed to Libor and maturing in 2027.

 

In May 2022, the Company contracted a loan of US$200 with MUFG Bank indexed to SOFR with spread adjustments and maturing in 2027.

 

Payments - In January 2023, the Company paid principal and interest of debentures, in the amount of US$24. 

In June 2023, Vale redeemed notes with maturity date in 2026, 2036 and 2039, in the total amount of US$500, and paid a premium of US$22, recorded as “Bond premium repurchase” in the financial results for the three-month period ended June 30, 2023. 

In January 2022, the Company prepaid US$200 of a loan maturing in 2023 with The Bank of Nova Scotia. 

In June 2022, the Company repurchased US$1,291 of its bonds and paid a premium of US$113, which has been recorded and is presented as “Bond premium repurchase” in the financial results for the three-month period ended June 30, 2022.

 

d) Non-cash transactions

 

       
     
  Three-month period ended June 30, Six-month period ended June 30,
  2023 2022 2023 2022
Non-cash transactions:        
Additions to property, plant and equipment - capitalized loans and borrowing costs 5 17 10 31