Vale S.A. (VALE): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of one of the world's biggest miners, and honestly, what you find at Vale S.A. is a masterclass in commodity dominance that demands a closer look. For years, this was the low-cost iron ore machine, targeting 325-335 million tons this year, with a C1 cash cost as low as $22.2/t in Q2 2025, which is why iron ore still accounts for over 80% of their Q3 2025 revenue. But the real story now is the strategic pivot: they are aggressively shifting focus to copper and nickel, critical metals for the energy transition, which already brought in $1.997 billion in Q3 2025 revenue. Let's break down exactly how Vale S.A. balances this massive legacy business with its future-facing bet using their Business Model Canvas, because understanding this dual strategy is key to valuing the company right now.

Vale S.A. (VALE) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Vale S.A. (VALE) has cemented to secure future production and drive its digital and sustainability agendas. These partnerships are essential for de-risking capital deployment and ensuring market access for its energy transition metals.

The evaluation of a potential joint venture with Glencore Canada for copper deposits in the Sudbury Basin is a major near-term focus. This proposed 50:50 partnership aims to leverage Glencore's existing infrastructure, specifically the shaft and facilities at the Nickel Rim South Mine, which ceased production in July 2024. The project is estimated to produce about 880 kilotons of copper over 21 years, with a combined estimated capital cost ranging from US$1.6 billion to US$2.0 billion. Detailed engineering and permitting work is scheduled for 2026, with a final investment decision targeted for the first half of 2027. This collaborative approach is designed to unlock orebodies on adjacent properties that might otherwise be uneconomical for individual development.

Vale continues to deepen strategic alliances with technology firms to advance its digital mining goals. For instance, a partnership involving Nokia and Vivo provides private LTE wireless services for Vale's Carajas iron mine. This deployment supports Vale's Industry 4.0 project, enabling the use of autonomous drill platforms and trucks to boost productivity and worker safety. This move replaces older WiMax networks, offering more reliable support for operating and controlling remote equipment, and also supports environmental monitoring applications.

Long-term supply and commercial relationships with major Chinese steel mills remain foundational to Vale's iron ore revenue. China still accounts for approximately 60% of Vale's total iron ore sales. However, the relationship is evolving as Chinese steel production has flattened to around 1 billion metric tons/year and may see a slight decline in the near term. Vale is actively diversifying, but its commitment to the market is underscored by agreements like the Project Investment Agreement signed in March 2023 with Taiyuan Iron & Steel Co. Ltd. (Tisco) and Shangdong Xinhai Technology Co. Ltd. (Xinhai) for a ferronickel processing plant in Morowali, Indonesia.

A significant financial partnership involves Manara Minerals Investment Company, a joint venture between Saudi Arabian Mining (Ma'aden) and the Public Investment Fund (PIF). Manara Minerals closed the acquisition of a 10% equity stake in Vale Base Metals Limited (VBM), the holding entity for Vale's energy transition metals business. The transaction was valued at approximately US$2.5 billion, based on an implied enterprise value for VBM of US$26.0 billion. This capital injection is intended to catalyze VBM's growth plans, which target a substantial increase in copper production from 350 kilotonnes (kt) per year to 900kt/year over the next decade.

Collaboration with suppliers for Environmental, Social, and Governance (ESG) training and responsible sourcing is a core operational partnership focus. In 2024, Vale provided ESG training to 925 suppliers, which represented 59% of those deemed critical based on the ESG Matrix Brazil. Furthermore, 270 internal buyers received training on the Responsible Purchasing Program in 2024 to reinforce strategic procurement processes. Vale Base Metals enforces its Responsible Sourcing Policy Statement through due diligence across its supply chains for nickel, copper, and cobalt. Between 2019 and 2024, 314 human rights inspections were conducted at supplier sites across Brazil, Malaysia, and Oman.

Here is a snapshot of the scale and nature of these key alliances:

Vale's engagement extends across various operational and strategic fronts, as seen in the following areas:

• The Sudbury JV targets production of 880,000 metric tons of copper over 21 years.
• VBM aims to increase copper production from 350kt/year to 900kt/year by 2035.
• Vale signed seven agreements in China in March 2023 covering projects and finance.
• Internal training reached 270 buyers on the Responsible Purchasing Program in 2024.
• 314 human rights inspections were performed at suppliers between 2019 and 2024.

Vale S.A. (VALE) - Canvas Business Model: Key Activities

High-volume iron ore extraction and processing, targeting 325-335 million tons in 2025. Production is on track to meet the guidance, with Q2 2025 output reaching 83.6 million metric tons.

Vale S.A. is focused on delivering its iron ore output, which is expected to be between 325 million and 335 million metric tons for the full year 2025.

Mining and production of energy transition metals: nickel and copper. The company is pushing to increase output in these areas, with specific guidance set for 2025.

The expected production volumes for base metals by the end of 2025 are:

• Copper production expected to reach around 370,000 tons.
• Nickel production expected to be between 160,000 and 175,000 tons.

The copper all-in cost guidance for 2025 was revised down to US$ 1,500-2,000/t.

Operating and maintaining a vast proprietary logistics network (railroads, ports). This network is integral, as C1 production costs, which cover mining, rail, and port expenses, are estimated at $21.3/mt for 2025.

De-characterization of upstream tailings dams to enhance safety and compliance. This is a major ongoing activity following commitments made since 2019.

Key achievements and figures related to the Dam Decharacterization Program as of late 2025 include:

• Reached 60% completion of the Dam Decharacterization Program as of September 2025.
• Eliminated the company's 18th upstream facility.
• Achieved 100% conformance with the GISTM (Global Industry Standard for Tailing Management) in 2025.
• No longer has any structures at the highest emergency level (Level III) in 2025.
• Disbursed USD 2.3 billion for the De-characterization Program ending on June 31, 2025.
• Invested over R$ 12 billion in the Decharacterization Program since 2019.

Digital transformation and automation of mining operations (e.g., autonomous trucks). Vale S.A. is applying technologies like AI, Machine Learning, IoT, and mobile applications to operations.

Specific data points reflecting this activity include:

• Annual ICT spending was estimated at $389.4 million in 2024.
• Automation includes all yard operations, such as collision avoidance and 3D yard mapping.

Vale S.A. (VALE) - Canvas Business Model: Key Resources

You're looking at the core assets that make Vale S.A. a powerhouse in the global materials market as of late 2025. These aren't just line items; they are the physical and financial foundations of the business.

The company holds world-class iron ore reserves, with the Carajás (S11D) complex being a major contributor, which achieved record production in the third quarter of 2025. Vale expects its total iron ore production for 2025 to be between 325 million and 335 million metric tons. For context, Q3 2025 iron ore output alone reached 94.4 million metric tons.

Vale's operational scale is supported by extensive logistics infrastructure. This includes approximately 2,000 kilometers of railroad network in Brazil, connecting key mining areas like Carajás to maritime terminals such as Ponta da Madeira. This network is critical for moving product efficiently.

The focus on future-facing materials is evident in their significant deposits of nickel and copper. The company has set its 2025 copper production guidance between 340,000 and 370,000 tons, and nickel production guidance between 160,000 and 175,000 tons. Furthermore, Vale is actively pursuing growth in copper, evidenced by the agreement with Glencore Canada to evaluate a potential brownfield copper development in the Sudbury Basin, estimated to produce about 880 thousand tonnes of copper over 21 years with a capital cost between US$ 1.6 billion and US$ 2.0 billion.

Financially, the company demonstrates strength, reporting a recurring free cash flow of $1.6 billion in Q3 2025, which was $1.0 billion higher year-over-year. This robust cash generation supports its capital structure, with expanded net debt at US$ 16.6 billion at the end of Q3 2025, within the target range of $10 billion to $20 billion.

Vale's technical resources include intellectual property and expertise in dry processing technology. For instance, the Capanema project, which adds approximately 15 million tons per year of iron ore, will use the natural moisture process to reduce waste. Additionally, in its Energy Transition Metals segment, Phase 1 of developing an industrial-scale briquette plant in Louisiana involves using over US$ 3.8 million of awarded funds for engineering studies throughout 2025.

Here's a look at the 2025 guidance and recent cost performance for the base metals, which are key to the EV battery supply chain:

The operational efficiency is also reflected in iron ore costs, with C1 cash costs at $20.7 per tonne in Q3 2025, and all-in costs for iron ore and pellets decreasing to $52.9 per tonne year-over-year.

You can see the strategic asset deployment in the capital expenditure plan, where for 2026, capital investments are projected between US$ 5.4 billion and US$ 5.7 billion, with US$ 1.6 billion allocated to Vale Base Metals.

• Iron ore sales in Q3 2025 reached 86 million tonnes.
• The company has a 25-year history of consistent dividend payments.
• The Capanema project is set to add about 15-million tons a year of iron-ore to the Mariana complex.
• Vale's expanded net debt was US$ 16.64 billion at the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Vale S.A. (VALE) - Canvas Business Model: Value Propositions

You're looking at the core value Vale S.A. (VALE) delivers to its customers and the market as of late 2025. It's a mix of essential raw materials and a growing commitment to cleaner production methods. Honestly, their ability to keep costs low while pivoting their product mix is a major part of the proposition right now.

A primary value is supplying high-grade iron ore products designed to help steel mills cut down on their environmental impact. This focus on quality supports the decarbonization efforts of their downstream partners. For instance, Vale's proprietary iron ore briquettes, developed over 18 years, can enable emissions reductions as high as 10% in the steel industry, with their low-temperature production process using up to 80% less CO2 compared to traditional agglomeration routes. The first briquette plant has been operating since the end of 2023 at Tubarão, with a second plant commissioning in 2024, aiming for a combined capacity of 6 million metric tons of briquettes per year.

Vale also offers a reliable, large-scale supply of critical metals needed for the energy transition. Their base metals segment is seeing strong growth momentum. In Q2 2025, copper production hit 92.6 kt, the highest Q2 output since 2019, with copper sales at around 89 kt. Nickel production in Q2 2025 surged to 40.3 kt, the best Q2 since 2021, with nickel sales at nearly 41.4 kt. The company is backing this with significant investment, projecting base metals CAPEX between USD 25 billion and USD 30 billion over the next decade for new projects.

The commitment to low-carbon solutions and sustainable mining practices is embedded in their targets. Vale achieved its goal to consume 100% renewable electricity in Brazil by 2025, two years ahead of schedule (achieved in 2023). The global renewable electricity target is 2030. They are targeting a 33% reduction in absolute Scope 1 and 2 GHG emissions by 2030 (from a 2017 baseline of 10.5 MtCO2e) and aim for net zero Scope 1 and 2 by 2050. Furthermore, they have an ESG workforce goal to double the presence of women from 13% to 26% by 2025.

Cost competitiveness is a clear differentiator, especially given market volatility. The Q2 2025 iron ore C1 cash cost came in at $22.2/t, marking the fourth consecutive quarter of year-over-year cost reduction. For context, the 2025 forecast for C1 iron ore cash cost is $21.3/t, with all-in iron ore costs guided around ~$55/t for 2025. This discipline helps them remain competitive even with rising tariffs.

You see portfolio flexibility in how Vale adjusts its output based on market signals. For example, in Q2 2025, they redirected pellet feed to iron ore fines sales by pausing production at the São Luís pelletising plant earlier than scheduled. This is a direct response to market conditions, as pellet production fell 12% year-on-year to 7.9 Mt in that quarter, while iron ore sales were down 3% year-on-year to 77.3 Mt, reflecting a strategy to prioritize medium-grade products offering better value realization.

Here's a quick look at some key operational metrics supporting these value propositions:

The value proposition also includes specific commitments to ESG and operational safety:

• Eliminate dams in critical safety condition (level 3) by 2025.
• Achieve 100% adherence to Global Standard for Dam Management (GISTM) for other structures by 2025.
• Increase representation of women in senior leadership to 26% by 2025.
• Reach 40% of leadership in Brazil made up of black people by 2026.
• Reduce exposure to harmful health agents by 50% by 2025.

To be fair, the flexibility is also about managing down less favorable products, like the Q2 2025 pellet production which was down 12% year-on-year to 7.9 Mt, aligning with the revised 2025 guidance.

Finance: draft 13-week cash view by Friday.

Vale S.A. (VALE) - Canvas Business Model: Customer Relationships

You're looking at how Vale S.A. manages the relationships that keep the ore and metal flowing to the world's largest consumers. It's all about long-term commitment and de-risking the supply chain for them.

Dedicated B2B sales teams managing long-term, high-volume contracts

Vale S.A. maintains a strong focus on its core B2B clientele, which dictates much of its operational planning. For instance, the company projected iron ore production toward the upper end of guidance for 2025, hitting $\text{335 mt}$ for the year, with copper production estimated at $\text{370 kt}$. The relationship-driven approach is evident in product pricing; the average realized iron ore fines price in the third quarter of $\text{2025}$ was $\text{USD } 94.4/\text{t}$, an $\text{11\%}$ increase quarter-over-quarter. This is supported by a $\text{USD } 2/\text{t}$ improvement in iron ore fines premiums quarter-over-quarter, driven by the product portfolio strategy.

The operational efficiency achieved directly benefits contract stability, as the C1 cash cost for iron ore fines (excluding third-party purchases) was $\text{USD } 20.7/\text{t}$ in Q3 $\text{2025}$, keeping the company on track to meet its $\text{2025}$ guidance of $\text{USD } 20.5-\text{USD } 22/\text{t}$.

Co-creation with customers on low-carbon solutions and supply chain sustainability

Vale S.A. is actively engaging customers to meet decarbonization targets, which is a key area for future contract value. The company has signed more than 50 MOUs (memorandums of understanding) with customers to advance low-carbon iron ore product hubs. The patented iron ore briquettes, for example, can enable customers to achieve greenhouse gas emissions reductions as high as 10% in the steel industry.

The commitment to this relationship is backed by capital allocation. The estimated decarbonization expenditure for $\text{2025}$ is approximately USD 137 million, following a total spend of approximately USD 1.4 billion since $\text{2020}$ on mitigating Scope 1, 2, and 3 emissions. The long-term strategy aims for a production volume of approximately 100 million metric tons of agglomerates beyond $\text{2030}$.

• Iron ore briquettes offer up to 10% GHG reduction for customers.
• Over 93% of base metals electricity use comes from renewable sources.
• Estimated $\text{2025}$ decarbonization spend: USD 137 million.

Direct, relationship-driven engagement with major global steel producers

Engagement goes beyond just sales; it involves technical partnership and satisfaction measurement. In the $\text{2024}$ Customer Satisfaction Survey, which targeted final iron ore customers (excluding traders), around 93% reported being satisfied or very satisfied with the Technical Assistance offered. Furthermore, the survey achieved a response rate representing approximately 87.8% of Vale S.A.'s iron ore sales volume. This direct feedback loop helps tailor the product portfolio, as seen by the $\text{USD } 2/\text{t}$ premium improvement in Q3 $\text{2025}$ driven by product quality.

The company is also exploring specific development synergies, such as the agreement with Glencore in December $\text{2025}$ to evaluate a copper development project in the Sudbury Basin, expected to produce $\text{880 kt}$ over $\text{21}$ years.

Investor relations focused on transparency and shareholder value creation

Transparency is managed through regular, detailed disclosures. As of December $\text{5, 2025}$, Vale S.A.'s Market Cap stood at USD 56.77B. The company reinforced its commitment to shareholders by using recurring free cash flow, which reached USD 1 billion in Q2 $\text{2025}$, to support returns. Specifically, $\text{USD } 1.984$ billion in dividends and interest on capital was approved for payment in March $\text{2025}$.

Managing the balance sheet is also a key part of this relationship. Expanded net debt ended Q2 $\text{2025}$ at USD 17.4 billion, with management targeting a range between USD 10 and USD 20 billion. The Director of Investor Relations signed the July $\text{2025}$ SEC compliance report, underscoring the commitment to regulatory transparency.

The Chairman of the Board of Directors explicitly noted in the $\text{2025}$ shareholder meetings that engagement stimulates continuous improvement and reinforces confidence in the work developed with a focus on sustainable results.

Finance: draft $\text{13}$-week cash view by Friday.

Vale S.A. (VALE) - Canvas Business Model: Channels

You're looking at how Vale S.A. moves its massive output-iron ore, nickel, and copper-from mine to customer across the globe. It's all about owning the critical path, which means heavy investment in logistics infrastructure.

Direct sales via global commercial offices in Asia, Europe, and the Americas

Vale S.A. executes direct sales through a global footprint, ensuring proximity to major consuming markets, particularly in Asia. The company maintains operations across the Americas, Europe, and Asia, with its headquarters coordinating from Rio de Janeiro, Brazil. Specific commercial offices support these sales efforts, with known subsidiaries like Vale Japan Limited indicating a direct sales channel presence in Asia. The company's operations span five continents, supporting its role as a global supplier.

• Global operational presence across the Americas, Europe, Asia, the Middle East, Africa, and Oceania.
• Head Office functions managed from Rio de Janeiro, Brazil.

Proprietary shipping fleet and maritime terminals for global distribution

The backbone of Vale S.A.'s export channel is its dedicated maritime capability, centered around the massive Valemax Very Large Ore Carriers (VLOCs). These ships, with capacities ranging from 380,000 to 400,000 tons deadweight (DWT), are designed to meet the Chinamax standard for efficient long-haul transport to Asian customers. As of 2020, the total Valemax fleet stood at 68 vessels, a key component of their sea-based distribution strategy. This proprietary control over shipping mitigates reliance on the volatile spot charter market for a significant portion of its volume.

The company also operates several high-capacity maritime terminals in Brazil to load these vessels. For instance, the Port of Tubarão alone ships around 80 million metric tonnes of iron ore, representing approximately 30% of the company's annual production. This integrated system is crucial, especially considering Vale S.A.'s 2024 iron ore sales volume of 77.3 million metric tons.

Global network of distribution centers and blending facilities

To manage product quality and meet specific customer requirements globally, Vale S.A. utilizes a network of distribution centers and blending facilities worldwide. This allows the company to blend different grades of material to achieve precise specifications before final delivery. This capability supports the premium pricing often commanded by its high-grade products, such as the Carajas iron ore maintaining an industry-leading 66.7% Fe content.

• Supports product customization via blending operations.
• Maintains product quality consistency for global customers.
• Owned and operated centers support worldwide iron ore delivery.

Rail and port systems in Brazil for domestic transport and export

Domestic logistics within Brazil rely heavily on Vale S.A.'s owned and operated rail infrastructure, which connects major mining complexes to export ports. This captive network is a major cost advantage, helping the company target a 2025 C1 cash cost guidance of $20.5 to $22 per ton.

The two primary lines are the Carajas railroad and the Vitória a Minas railroad (EFVM). The Carajas line runs for 892 km, linking the Pará mines to the Ponta da Madeira port. The EFVM is 905 km long, connecting the Iron Quadrangle in Minas Gerais to the Port of Tubarão. Furthermore, Vale S.A. is actively enhancing this channel, with a $7.43 billion investment for the Anchieta branch of the EFVM, which is expected to add capacity to transport up to 15 million tons of cargo annually.

The company is also advancing on its growth story, with iron ore production reaching 84 million tons in Q2 2025, driven by ramp-ups like the Capanema project and strong performance at S11D, all dependent on these integrated rail and port channels.

Vale S.A. (VALE) - Canvas Business Model: Customer Segments

You're looking at the core of Vale S.A.'s (VALE) business, and honestly, it's all about scale and where the world needs its raw materials right now. The customer base is dominated by heavy industry, but the future growth story is clearly leaning into the energy transition.

Large, multinational steel manufacturers represent the bedrock of Vale S.A.'s financial performance. This group is the primary destination for the company's massive iron ore and pellet output. Through the first nine months of 2025, the Iron Solutions segment, which includes iron ore and pellets, was the primary revenue source, contributing roughly 80.8% of the total Q3 2025 revenue, which itself was $10.42 billion. The company is tracking towards the upper end of its 2025 iron ore production guidance, which is in the range of 325-335 million tonnes. For context on recent activity, Vale S.A.'s iron ore sales totaled 77.3 million tonnes in Q2 2025, and in Q3 2025, sales rose by 5.1% year-on-year to 86 million tons. While the company prioritizes medium-grade products, the sheer volume moved to steelmakers defines the near-term financial picture.

The shift toward electrification means that Electric Vehicle (EV) battery and component manufacturers are becoming strategically vital customers for Vale S.A.'s Base Metals division. Vale S.A. accounts for about 6%-7% of the global nickel supply. In 2024, Vale S.A. produced 179,000 metric tons of nickel, with operations spanning Brazil, Canada, and Indonesia. The company has secured a long-term deal to supply Tesla with class 1 nickel from its Canadian facilities. Nickel production saw a significant surge in Q2 2025, reaching approximately 40,300t, a 44% year-on-year increase. Nickel contributed approximately 12% of Vale S.A.'s 2024 revenue, which amounted to $4.2 billion.

The customer base also includes established users of Vale S.A.'s other products, which you see reflected in the overall sales figures.

Here's a quick look at the production and sales volumes for the key commodities sold to these customer groups in recent quarters:

The remaining customer groups, such as Nickel alloy and stainless steel producers and Ferroalloy and manganese producers, are largely captured within the Ferrous Minerals and Base Metals reporting segments, though specific revenue splits aren't itemized granularly in the latest reports. The Base Metals division, which includes nickel, is projected by Vale S.A. to grow to represent 25% of earnings by 2030.

You should keep an eye on these specific customer-facing trends:

• The primary market for iron ore remains heavily concentrated in Asia, with China being a key focus area for Vale S.A..
• The push for low-carbon nickel from Vale S.A.'s Canadian assets is a specific value proposition for EV battery makers focused on ESG metrics.
• Vale S.A.'s nickel division is undergoing a strategic review due to short-term market oversupply pressures, which could affect future supply agreements with these segments.
• The company is actively working to lower costs across its base metals, with nickel all-in costs at $12,396/t in Q2 2025, down 30% year-on-year.

Finance: draft a sensitivity analysis on Q4 2025 revenue assuming a 10% drop in realized iron ore prices by Friday.

Vale S.A. (VALE) - Canvas Business Model: Cost Structure

You're looking at the heavy lifting costs that keep Vale S.A. running, and honestly, it's dominated by the sheer scale of mining and moving material. The cost structure is inherently high in fixed costs, which you'd expect from an operation relying on massive mines, huge fleets of heavy equipment, and extensive logistics infrastructure like railways and port facilities. These assets require constant, non-negotiable spending just to keep the lights on, regardless of daily iron ore prices.

Operating expenses are where the day-to-day cash burn happens, driven heavily by labor, the energy needed to power everything from crushers to conveyor belts, and the relentless maintenance required for that heavy gear. For instance, in Q2 2025, the total Cost of Revenue, which covers mining, processing, and logistics, clocked in at $6.09 billion. Beyond that core cost, general Operating Expenses were reported at $715 million in the same quarter.

When we look at capital expenditures (CapEx), Vale S.A. has guided its spending for 2025 between $5.4 billion and $5.7 billion for the year, focusing on sustaining operations and measured growth projects. This spending is split between Iron Ore Solutions, projected around $3.9 billion, and Vale Base Metals, around $1.6 billion for 2025.

Also, you can't ignore the significant, non-operational costs tied to legacy issues. Vale S.A. booked an additional provision of about $500 million in its 2025 financial statements specifically to cover obligations linked to the Fundão dam disaster. This latest commitment brings the total recognized Vale Fundão dam provisions to approximately $2.9 billion. The broader Integral Reparation Agreement, which covers the full reparation to be concluded, has a total financial value of approximately R$170 billion.

The good news for Vale S.A. is its position as a low-cost producer, which is its primary defense against commodity price swings. The all-in iron ore cost for Q2 2025 was reported at $55.3/t. This efficiency is a key part of their strategy, as seen in the breakdown of unit costs for that same quarter:

These unit costs reflect intense focus on operational excellence. You can see where the money goes in the general ledger, too. For Q2 2025, the breakdown of key operating expenses looked like this:

• Cost of Revenue (Mining, Processing, Logistics): $6.09B
• Total Operating Expenses: $715M
• Research & Development (R&D): $159M
• Sales, General & Administrative (SG&A): $124M

Also, you should note the expected cash outflows for decharacterization, Brumadinho, and Samarco commitments were estimated to total $4.2 billion for the 2025 fiscal year. That's a substantial, non-discretionary cash item you have to factor in.

The main drivers keeping the overall cost base competitive, despite the fixed overhead, are:

• Efficiency gains across all segments, leading to lower unit costs.
• High output from core iron ore operations, leveraging existing fixed assets.
• Strategic investment in maintenance CapEx, projected near $4.3 billion in 2025.
• Ramp-up of lower-cost copper production, with guidance revised down to $1,500-2,000/t for 2025.

Vale S.A. (VALE) - Canvas Business Model: Revenue Streams

You're looking at how Vale S.A. brings in the money, which is heavily concentrated in a few key areas as of late 2025. The total net operating revenue for the third quarter of 2025 hit $10,420 million.

The primary engine remains the sale of iron ore and pellets, which the company groups under Iron Solutions. This segment consistently contributes the lion's share of the top line, accounting for over 80% of the Q3 2025 revenue. The average realized iron ore fines price in that quarter was $94.4/t, reflecting strong quality premiums.

Here's a look at the key revenue drivers based on the Q3 2025 performance data:

• Iron Ore and Pellets sales: Contributing over 80% of Q3 2025 revenue.
• Base Metals sales (nickel, copper, cobalt): Reported Q3 2025 revenue of $1.997 billion.
• Logistics services revenue from third-party use of rail and port assets.
• Sales of by-products like gold and silver from polymetallic sites.

The operational performance in Q3 2025 supported these streams, with iron ore sales reaching 86.0 million metric tons, a 5% increase year-over-year. Pellet output was 8.0 Mt, though this was adjusted down 23% year-over-year based on market conditions, with that feed material redirected to fines sales for optimization.

The Base Metals segment showed strong operational results, which feeds directly into this revenue stream. Copper production was 90.8 kt, marking its best third quarter since 2019. Nickel production totaled 46.8 kt for the quarter. These metal sales, alongside by-product revenues, form the second major pillar.

To give you a clearer picture of the Q3 2025 revenue composition, based on reported figures and required data points, here is the breakdown:

The logistics component is a steady earner, leveraging Vale S.A.'s extensive infrastructure, including its dedicated rail network and port facilities, for third-party customers when internal needs allow. Also, don't overlook the by-products; the revenue from gold and silver, for instance, helped drive down the all-in costs for copper to $994/t in the quarter, effectively boosting the profitability of the Base Metals segment.

Finance: draft 13-week cash view by Friday.