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Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa

Vale Sa · Aug 5, 2015 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 1
    0 Vale goes to the BM&F Bovespa Stock Exchange August 2015 Luciano Siani Vale CFO
  2. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 2
    2 We have been working in several dimensions to further improve Vales highly competitive position Increasing Volumes Reducing Costs and expenses Setting the basis Delivering for strong Free projects Cash Flows Increasing…
  3. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 3
    3 We have reduced our expenses1,2 significantly US millions One off impact -51% -22% 7,117 1,204 2955 4,5213 809 3,547 6384 633 2012 2013 2014 3Q14 4Q14 1Q15 2Q15 Net of depreciation and amortization. Includes…
  4. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 4
    4 We have also made significant progress on cost reductions, as per the example of iron ore C1 Cash Cost FOB port Brazil Freight Costs Expenses US/t US/t US/t -30% -25% -34% 9.3 22.5 22.3 21.5 21.7 18.3 17.2 16.8 15.8…
  5. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 5
    5 And we remain committed to delivering additional productivity gains Completed In implementation Example of initiatives Status Improvement in availability of the transportation fleet in the Northern System Mine Resizing of…
  6. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 6
    6 We obtained the operational licenses for new mines and started the ramp up of three Itabiritos projects High quality products will replace lower grade material N4WS and N5S in Carajs Itabirites Projects Plant 2 N4W Plant 2…
  7. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 7
    7 And our iron ore break-even is being reduced US/dmt, adjusted by quality Delta vs 1Q15 Base case price US 50/t 1Q15 2Q15 C1 Cash Cost Port 18.3 15.8 2.5 Break-even Royalties 1.5 1.2 reduced to US 39.1/dmt Freight…
  8. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 8
    8 Our production volumes have increased across all business segments with the completion of our projects Iron Ore Nickel Mt 160 Kt 136 151 130 129 135 1H13 1H14 1H15 1H13 1H14 1H15 Mozambique Coal Copper Mt 2.4 Kt 212…
  9. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 9
    9 The iron ore supply in 2016 will be defined according to margins Mt 376 340 The installed capacity will be 376 Mt in 2016 The potential production increase will be defined 340 according to the margins optimizations…
  10. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 10
    10 We expect nickel production to increase in 2H15 Nickel Kt Ramp-up of VNC Increase in PTVIs production after the maintenance of furnaces Higher production in Canada in 2H15 with the anticipation of the preventive maintenance…
  11. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 11
    11 Our capex has reduced as we completed our projects Status of Vales project portfolio Capex 2Q15 US billion 8 projects delivered in 2014 S11D advancing as planned: mine and logistics physical progress of 67% and 41%,…
  12. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 12
    12 And we are seeking to further reduce our capex in 2015 Capex US billion Structural reduction in sustaining capex Change in scope of some projects Positive impact from BRL depreciation 4.0 8.0-8.5 2.1 4.3 2.2…
  13. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 13
    13 Our investment cycle is almost over Executed capex Estimated capex Capacity Estimated US million US million Physical Project Mtpy start-up progress 2015 Total 2015 Total Carajs Serra Sul S11D 90 2H16 568 4,060 1,321 6,878…
  14. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 14
    14 The S11D project is at an advanced stage of implementation Main facts (mine and processing plants) Truckless system Start-up: 2H16 Capacity: 90 Mtpy Estimated cash cost1: US 10/t Fe %: 66.7% Production process:…
  15. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 15
    15 The S11D project will help us further reduce our costs US/dmt, adjusted by quality, 2018(F) with S11D Gap in relation to 2Q15 Base case price: US 50/t 3.3 0.6 2.4 1.7 8.3 2.8 3.7 1.5 30.8 16.2 1.5 12.5 C1…
  16. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 16
    16 Meanwhile, we continue to divest non-core assets and form strategic partnerships Belo Monte Tres Valles Fosbrasil Log-in 8 VLOCs Reference US 1 billion Norsk Hydro Goldstream II CADAM Oil and Gas Concessions I MBR…
  17. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 17
    17 From these divestments and partnerships we expect to raise US 6-7 billion in cash proceeds in 2015 Cash Impact Initiatives Transaction details in 2015 Status Timing Goldstream Sale of an additional 25% of Completed with US 900…
  18. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 18
    18 In parallel we continue to manage our current debt profile US billion Schedule of amortization of the debt Committed lines of credit 1.6 7.3 29.4 0.7 5.0 19.9 3.8 1.4 1.9 2.4 Revolvinig credit Financing Financing of…
  19. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 19
    19 Results from our initiatives are already setting the basis for strong free cash flow generation as of 2018 Capex will be around US 4 billion Volumes will increase by about 40% in iron ore, 20% in copper and 15% in nickel…
  20. Vale Goes to the BMF Bovespa Stock Exchange – Vale Sa – slide 20
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