Vale S.A. - ADR

Strong operating performance + guidance confidence (iron ore, copper, nickel) - Iron ore (Q2 2026): highest second-quarter production since 2018, supported by ramp-ups at Capanema and Vargem Grande and record output at S11D; sales volumes +3% YoY. - Copper (Q2 2026): strongest Q2 production in 9 years; production +6% YoY, sales +10% YoY led by record output at Salobo and strong Sossego. - Nickel (Q2 2026): production +4% YoY, sales +7% YoY supported by additional volumes from Onça Puma and Voisey’s Bay. - Outlook: management states confidence in meeting full-year production guidance; VBM has narrowed copper and nickel guidance ranges (higher midpoints) reflecting continued strong operations.

Major growth/capacity milestones (opportunities for value creation) - Serra Sul (iron ore ecosystem): - Plus 20 project: commissioning started (key enabler—second long-distance conveyor belt at S11D in July). - Compact Crushing: expected to begin commissioning in Q4 to improve dusting/light ore handling and strengthen production consistency/reliability. - Together: ~20 million tons incremental capacity at Serra Sul. - Copper growth via Bacaba (VBM): earlier start-up—Bacaba now planned to begin commissioning in Q3 2027 (vs original first half 2028), with 50,000 tons capacity; described as the first of 6 accretive copper growth projects to support the ambition to reach ~700,000 tons/year by 2035. - Copper pipeline acceleration (learning/replicability): Bacaba schedule/return improvements attributed to VBM’s restructured execution model (decentralized organization, capital allocation/project execution simplification), plus fast removal of bottlenecks and drilling/resource upside.

Shareholder returns: dividends + buybacks (good) - Dividends/interest on capital: Board approved $1.7B to be paid in September (based on strong H1 cash generation). - Buybacks: - $140M repurchased in Q2; $214M YTD. - New program approved: up to 100 million shares (≈ 2.3% of outstanding) over next 18 months. - Capital allocation posture: management signaled dividends/buybacks remain priorities but will be influenced by 2H cash flow and balance sheet dynamics.