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    Leonardo Correa • BTG Pactual

    Leonardo Correa's questions to Suzano SA (SUZ) leadership

    Leonardo Correa's questions to Suzano SA (SUZ) leadership • Q2 2025

    Question

    Leonardo Correa questioned the extent of supply rationalization seen across the pulp industry given depressed prices and asked if Suzano sees room to lower its full-year cash cost guidance given management's confident tone.

    Answer

    EVP of Pulp Commercial & Logistics, Leonardo Grimaldi, noted that 15% of global hardwood capacity is operating below cash cost and expects more commercial downtime from competitors now that tariff uncertainties are clearer. EVP of Pulp Operations, Aires Galhardo, stated that while challenging, hitting the annual cost target requires sub-BRL 800/ton performance in H2, aided by the Eldorado deal. CEO João Alberto Fernandez de Abreu reinforced the focus on reducing total operational disbursement.

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    Leonardo Correa's questions to Suzano SA (SUZ) leadership • Q4 2024

    Question

    Leonardo Correa of BTG Pactual questioned the apparent increase in the 2025 cash cost guidance compared to previous statements. He also asked about the company's capital allocation strategy, particularly the pause in share buybacks despite a de-rated stock valuation.

    Answer

    Executive Aires Galhardo clarified the cash cost guidance change was primarily due to updating the FX assumption from BRL 5.35 to BRL 5.80, not a fundamental cost increase. Executive Marcos Assumpcao explained that buybacks are weighed against other capital allocation options and the primary goal of deleveraging, attributing the stock's de-rating to broader market factors like interest rates.

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    Leonardo Correa's questions to Vale SA (VALE) leadership

    Leonardo Correa's questions to Vale SA (VALE) leadership • Q2 2025

    Question

    Leonardo Correa questioned what specific triggers are needed for Vale to resume paying extraordinary dividends, given resilient iron ore prices, and asked why the full-year CapEx guidance wasn't lowered despite a low spending figure in Q2.

    Answer

    Marcelo Bacci, Executive VP of Finance & IR, responded that sustained iron ore prices around $100/ton and progress toward the $15 billion midpoint of the expanded net debt range would increase the likelihood of additional payouts. He attributed the low Q2 CapEx to a 'seasonal effect' and reaffirmed the company's confidence in the $5.9 billion full-year guidance.

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    Leonardo Correa's questions to Vale SA (VALE) leadership • Q4 2024

    Question

    Leonardo Correa asked about shareholder returns, questioning if the $2 billion dividend was a one-off given the expanded net debt is slightly above the target's midpoint. He also inquired about media reports of a potential M&A transaction for the Bamin asset and its strategic rationale for Vale.

    Answer

    Executive Marcelo Bacci clarified that strong cash flow projections and lower CapEx keep the company within its expanded net debt target range, justifying the dividend. Regarding M&A, Executive Gustavo Duarte Pimenta stated that while Vale evaluates all opportunities, any investment must meet strict strategic and financial return thresholds, and there is no current commitment to any specific project.

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    Leonardo Correa's questions to Vale SA (VALE) leadership • Q2 2024

    Question

    Leonardo Correa of BTG Pactual asked for an early outlook on 2025 iron ore production given new projects coming online, and questioned what conditions are necessary for Vale to resume paying extraordinary dividends.

    Answer

    Executive Gustavo Duarte Pimenta confirmed a positive upward trend for production towards the 340-360 million ton goal by 2026, with specifics to be provided at Vale Day. Regarding extraordinary dividends, he noted the company wants to first see how the second half performs on prices and how the Mariana situation evolves before making further commitments.

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    Leonardo Correa's questions to Gerdau SA (GGB) leadership

    Leonardo Correa's questions to Gerdau SA (GGB) leadership • Q4 2024

    Question

    Leonardo Correa questioned the dynamics of the Brazilian rebar market, highlighting significant price discounts despite stable demand, and asked about the potential for price recovery. He also inquired if the recent change in reporting segments was a preliminary step towards a potential spin-off of the U.S. business.

    Answer

    CEO Gustavo Werneck explained that the reporting change reflects the increasing regionalization of markets and is not related to any spin-off plans, stating there are no concrete discussions on such a restructuring. Regarding Brazilian rebar, he acknowledged fierce price competition, partly due to a new market entrant, and noted that recovering profitability in the short term is unlikely given the challenging outlook for the second half of the year.

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