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Cash flows reconciliation
 6 Months Ended
Jun. 30, 2024
Cash Flows Reconciliation  
Cash flows reconciliation

9. Cash flows reconciliation

 

a) Cash flow from operating activities

 

     
    Six-month period ended June 30,
  Notes 2024 2023
Cash flow from operating activities:      
Income before income taxes   4,870 5,016
Adjusted for:      
Equity results and other results in associates and joint ventures 14 (236) 50
Impairment and results on disposal of non-current assets, net                 5(c) (1,004) 70
Review of estimates related to Brumadinho 23 (20) 140
Review of estimates related to de-characterization of dams 25 (131) -
Depreciation, depletion and amortization   1,507 1,435
Financial results, net 6 1,689 687
Changes in assets and liabilities:      
Accounts receivable 10 1,768 1,439
Inventories 11 (461) (520)
Suppliers and contractors 12 (150) 465
Other assets and liabilities, net   (1,000) (1,243)
Cash flow from operations   6,832 7,539
       

b) Cash flow from investing activities

 

     
    Six-month period ended June 30,
  Notes 2024 2023
Proceeds from the partial disposal of VBML shares 15(b) 2,455 -
Proceeds from the partial disposal of PTVI shares 15(a) 155 -
Proceeds from the divestment of Companhia Siderúrgica do Pecém 15(f) - 1,082
Cash contribution to Companhia Siderúrgica do Pecém 15(f) - (1,149)
Cash received (payments) from disposal of investments, net   2,610 (67)
       

 

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

 

       
  Quoted in the secondary market Other debt contracts in Brazil Other debt contracts on the international market Total
December 31, 2023 7,474 250 4,747 12,471
Additions 1,000 - 960 1,960
Payments (51) (24) (517) (592)
Interest paid (i) (227) (11) (159) (397)
Cash flow from financing activities 722 (35) 284 971
Effect of exchange rate (53) (30) 29 (54)
Interest accretion 227 11 144 382
Non-cash changes 174 (19) 173 328
June 30, 2024 8,370 196 5,204 13,770
         
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

 

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

 

 

Funding

 

·In June 2024, the Company issued bonds of US$1 billion with a coupon of 6.45% per year, payable semi-annually, and maturing in 2054. In July 2024 (subsequent event), Vale redeemed notes with maturity date in 2026, 2036 and 2039, in the total amount of US$970 and paid a premium of US$38.

 

·In April 2024, the Company contracted a loan of US$90 with the Canadian Imperial Bank of Commerce (“CIBC”) indexed to SOFR plus spread adjustments and maturing in 2024.

 

·In March 2024, the Company contracted a loan of US$360 with the Japan Bank of International Cooperation (“JBIC”) indexed to SOFR plus spread adjustments and maturing in 2035.

 

·In March 2024, the Company contracted a loan of US$60 with the CIBC indexed to SOFR plus spread adjustments and maturing in 2024.

 

·In February 2024, the Company contracted a loan of US$166 with Banco Santander indexed to SOFR plus spread adjustments and maturing in 2025.

 

·In February 2024, the Company contracted a loan of US$34 with Credit Agricole Bank indexed to SOFR plus spread adjustments and maturing in 2025.

 

·From January to February 2024, the Company contracted a loan of US$250 with Banco Bradesco with a fixed rate maturing in 2025.

 

·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 SOFR plus 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.

 

Payments

 

·In January 2024, the Company paid principal and interest of debentures, in the amount of U$46.

 

·In January 2023, the Company paid principal and interest of debentures, in the amount of U$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.

 

d) Non-cash transactions

 

   
  Six-month period ended June 30,
  2024 2023
Non-cash transactions:    
Additions to PP&E with capitalized loans and borrowing costs 13 10