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Brazilian mining group Vale's EBITDA and net income down in 2022 on lower iron ore prices

Kitco News

(Kitco News) - Brazilian mining group Vale S.A. announced Thursday that its proforma adjusted EBITDA from continued operations was $20.9 billion in 2022, 38% lower than 2021 mainly due to 23.6% lower iron ore fines realized prices.

Free cash flow from operations was $5.7 billion in 2022, which is a decline compared to free cash flow from operations of $20.0 billion in 2021 due to lower EBITDA.

Net income from continuing operations attributable to Vale's shareholders was $16.7 billion, compared to net income of $24.7 billion in 2021.

The company said it paid $12.6 billion in dividends, interest on capital and share repurchases in 2022, adding that since 2020, Vale has returned $35 billion to shareholders, representing around 46% of its market cap.

Vale also noted that $1.8 billion in dividends to be paid in March 2023, considering Vale’s ordinary dividend policy applied to 2H22 results.

"3rd share buyback program now 43% complete, with a disbursement of $3.4 billion to repurchase 213 million shares. With the three buyback programs, earnings and dividends on a per share basis have each increased 15% since April 2021," the company said.

In 2023, Vale expects to produce between 310 million and 320 million tonnes of iron ore (2022: produced 308 million tonnes), between 160,000 and 175,000 tonnes of nickel (2022: produced 179,100 tonnes), and between 335,000 and 370,000 tonnes of copper (2022: produced 253,100 tonnes).

Originally established on June 1, 1942 as the state-owned Companhia Vale do Rio Doce, Vale became a private company ranking among the largest miners in the world. The company's operations abroad cover approximately 30 countries.

In addition to mining, Vale works with logistics – railways, ports, terminals and state-of-the-art infrastructure –, energy, and steel making. Vale is the world's largest producer of iron ore, pellets, and nickel.

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