Brazilian miner Vale has modified its financial perspectives for 2026, considering prevailing market conditions resulting from the conflict in the Middle East, the company said today in a statement.
The company estimates an increase of approximately $1.5 billion in the free cash flow from its iron ore business, considering conditions observed before and after the onset of the conflict in the Middle East on Feb. 28.
Such increase includes $1.2 billion in the EBITDA from the iron ore business, the generation of $425 million through foreign exchange, fuel hedging programs, and an increase of $100 million in sustaining capital expenditures.
This estimate assumes that pre-conflict scenario average prices of January and February 2026 are applied to 2026 full year, including iron ore at $112/mt, Brent at $104/barrel, bunker at $675/mt and the BRL/USD exchange rate at 4.90.
Vale has also updated estimates for other business areas: nickel, copper, cobalt, gold, platinum and palladium.