Vale "VBM Site Tour: Mind those optionalities" (Neutral) Greiner

Research evidence excerpt

Vale "VBM Site Tour: Mind those optionalities" (Neutral) Greiner

Global Research

9 June 2026ab

Vale Equities

BrazilVBM Site Tour: Mind those optionalities

Mining

12-month rating Neutral *

Turnaround well underway; Growth and optionalities now in focus

We were pleased to attend Vale/VBM's Investor Tour in Voisey's Bay and Long 12m price target US$16.00

Harbour, hosted by both companies' top management teams. In our view,

management tried to reinforce the message that the turnaround process is well

Price (09 Jun 2026) US$15.14

underway (nearing steady state), and that investor focus should continue to shift

towards the existing growth pipeline and even further optionalities. There was a RIC: VALE.N BBG: VALE US

greater nickel focus this time around, with the business already FCF positive, ready

Trading data and key metrics

to capitalize on mine/mill debottlenecking and further polymetallic exploration

52-wk range US$17.82-9.06

beyond current technical disclosures - ultimately increasing self-sourced ore. At the

copper side, the roadmap to ~700ktpa by 2035 continues to progress well, although Market cap. US$64.6b

management did indicate an internal ambition to grow well beyond the guided Shares o/s 4,265m (COM)

levels, mostly through (i) the quadrupling Carajás drilling activities and (ii) progress Free float 40%

on the technical studies of the Hu’u project in Indonesia, likely to be developed Avg. daily volume ('000) 5,327

with a partner. VBM is generating decent FCF and should turn to a net cash position Avg. daily value (m) US$85.7

by year-end - making the asset fully-funded for the upcoming expansion cycle. Common s/h equity (12/26E) US$41.2b

While we acknowledge the operational progress and the quality of VBM's asset base, P/BV (12/26E) 1.6x