And with Mark Cutifani leading the board, attracting talents like him, like Jerome, having a fit-for-purpose organization, having partners, this will add up to a convergence of interest? And how can I say that objectives that will unlock at tremendous values because we’re going to execute faster and grow faster. Thanks for your question, Daniel. And we are very excited by the way. I think we are beginning a new phase in Vale that will unlock tremendous value for our shareholders and fundamentally for the base metals business
Operator: Our next question comes with Leonardo Correa, Banco — BTG Pactual.
Leonardo Correa: Good morning, everyone. Thank you. so, my first question is on base metals. Gustavo, you mentioned during the presentation — the initial presentation that $3.4 billion was the total injection in the transaction, but you mentioned that $1 billion would stay at VBM and $2.4 billion would be returning to Vale, right? I guess there were some doubts on how much would stay at the energy transition unit. So, I think you clarified that. I just wanted to confirm. And this $2.4 billion that’s flowing back into Vale, I mean, where would we see that being allocated? I mean I can imagine the key question would be if that would be return to shareholders in a form of a special dividend or continued aggressive buyback. So, the question is, what will Vale do with the $2.4 billion that’s returning to the company.
or that’s staying at Vale and not being allocated to VBM? The second question still on cash returns and still for you Gustavo, I mean from your approach and just analyzing what Vale has been doing, right, you announced you’re basically paying the minimum dividend based on the formula, right? And you’re allocating all the exit, right, towards a very aggressive buyback, which has been on pretty much Vale’s cards over the past quarters, you allocating something around $1.4 billion, $1.5 billion per quarter of buybacks. Even with the changes in interest on equity, right, which in — will probably be extinguished, I mean, do you think that’s the same tone going forward. We should expect minimum dividends being paid and all the balance on the buyback.
Is that still the way to go? So those are the two questions. Thank you very much.
Gustavo Pimenta: Thanks, Leo, for your questions. So, on the first one, yes, we wanted to provide more clarity in terms of where the money will stay. So, based on what VBM is able to generate on an ongoing basis plus their own balance sheet, we’ve — we came to the conclusion that $1 billion was sufficient to fund the business for the next three to four years based on the plan that they have. So the rest is indeed moving back to the parent. It will come into our overall pool of cash, and we will then allocate based on our capital allocation framework that we know very well. So — that links to the second conversation. I’m very happy with the way we’ve been allocating capital over the last couple of years. I think we are creating significant value for our shareholders, either through a very healthy dividend payment or the share buyback at a very attractive level.
This is certainly a conversation that we have constantly with our Board, and we’ll bring more clarity in terms of how we keep going on this one, but you should continue to expect us to be very disciplined and very focused on creating long-term value for our shareholders.
Operator: Our next question comes with Vanessa Quiroga, Credit Suisse.
