Vale today released its financial results for the second quarter of 2021.
"Vale continues to move forward under the guidance of security, people and compensation, which have been the key to our achievements. We have dismantled six upstream DAMS as we continue to restore iron ore capacity and continue to advance the ESG agenda. We are committed to safe production and operational excellence, so we are on high alert and against COVID-19 in all countries and regions where we operate. We are confident that we will continue with our strategy of reducing risk, reshaping the company and re-rating." "Said Eduardo Bartolomeo, Vale's chief executive.
Highlights of q2 2021 results:
Pro forma adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of $11.239 billion, a new record; Net profit reached $7.586 billion, up $2.04 billion from the first quarter.
Free cash flow from operations was $6.527 billion, up $680 million from the first quarter. The cash generated from operations enabled us to deliver a $2.208 billion dividend to shareholders in June, proceed with our $2.004 billion outstanding share repurchase program, and make a $2.517 billion advance payment for the Nakala Logistics Corridor project financing.
Total debt at the end of the quarter was $12.154 billion, unchanged from the first quarter. Net debt for the same period was negative us $738 million and total net debt was US $11.448 billion.
In the case of Brumadiniu compensation, we are moving forward with the implementation of the commitments made in 2019 and the Global Settlement Agreement signed in February 2021.
In terms of dam management, we have completed the decommissioning of the Fernandinho dam and the construction of the lower envelope of the Forquilhas Dam no. 1, 2, 3 and 4 and the Grupo dam, which is close to the Faba mine. So far, vale has decommissioned six of its 30 buildings built using the tourist method. We have improved the safety situation at the Doutor mine dam and the Sul Inferior mine dam, bringing the emergency level down to Level 1.
In the iron ore business, we have an annual iron ore capacity of 330 million tons due to the full utilization of the Serra Leste mine at 6 million tons per year; The Timbopeba mine has been boosted by driverless trains; The Madeira Marine Terminal has completed the repair work of shippage no.6 on schedule.
On the base metals side, significant project milestones were reached, including the first nickel ore production in June at the Reid Brook mine in The Voisey's Bay expansion in Northern Labrador, Canada.
Two milestones in the coal divestment plan :(1) in April, we completed the maintenance of the Moatize coal mine and plant, which is now on track to reach production capacity of 15 million tonnes per annum in the second half of 2021.
