Core Viewpoint - Nexa Resources has announced a partial and temporary suspension of mining activities at its Atacocha and El Porvenir mines due to illegal access blockades by a small group from the San Juan de Milpo community, although there has been no material impact on production to date [1][2]. Group 1: Operational Update - The company is currently limiting operations to critical activities to ensure safety and proper maintenance amid the protests [2]. - Nexa's 2025 production guidance remains unchanged, with the Cerro Pasco Complex contributing approximately 1.2kt of zinc per week [3]. Group 2: Community Engagement - Nexa is committed to constructive dialogue with the community and authorities to achieve a peaceful resolution and reaffirms its dedication to the social and economic development of its host communities [3]. Group 3: Company Overview - Nexa is a large-scale, low-cost, integrated polymetallic producer, primarily of zinc, with over 65 years of experience in mining and smelting in Latin America [4]. - The company operates four long-life underground polymetallic mines and one low-cost open pit mine in Peru, along with three smelters in Brazil and Peru [4]. - In 2024, Nexa was among the top five producers of mined zinc globally, according to Wood Mackenzie [5].

Financial Data and Key Metrics Changes - The company reported net revenues of $708 million, a 13% increase compared to the previous quarter, and adjusted EBITDA of $161 million, reflecting a 28% sequential increase driven by higher sales volumes and stronger byproduct prices [11][25][26] - Free cash flow improved to $17 million, supported by better working capital management [11][30] - The consolidated mining cash cost net of byproducts decreased to -$0.11 per pound, a significant improvement from $0.11 per pound in the previous quarter [14][15] Business Line Data and Key Metrics Changes - The mining segment produced 74,000 tonnes of zinc, up 9% quarter over quarter, with the smelting segment achieving total zinc sales of 145,000 tonnes, a 12% increase compared to the first quarter [11][16] - The smelting conversion cost stood at $0.39 per pound, up 19% quarter over quarter, primarily due to higher maintenance expenses [16][17] Market Data and Key Metrics Changes - Zinc prices averaged $2,641 per ton, marking a 7% decline both year over year and quarter over quarter, while copper prices averaged $9,524 per ton, down 2% year over year but up 2% quarter over quarter [34][37] - Silver prices increased by 17% both year over year and quarter over quarter, averaging $34 per ounce [38] Company Strategy and Development Direction - The company is focused on the Aripuana project, which is expected to unlock full production capacity with the installation of a fourth tailings filter scheduled for commissioning in 2026 [7][21] - The Cerro Del Pasco integration project is progressing well, with key milestones achieved, enhancing long-term sustainability and production capacity [22][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges in the first quarter but expressed confidence in the fundamentals of the Aripuana asset and the overall growth strategy [21][41] - The company remains optimistic about the medium to long-term outlook for zinc, driven by structural demand from sectors such as energy transition [36][42] Other Important Information - The company invested $137 million in CapEx during 2025, with a significant portion allocated to sustaining activities and the Cerro Pasco integration project [27][28] - The liquidity position remains healthy, with available liquidity of approximately $738 million, including a $320 million undrawn revolving credit facility [31][32] Q&A Session Summary Question: Can you confirm the guidance changes for several metals? - Management explained that the guidance was affected mainly by operational challenges at Aripuana and Vasante, which were not fully anticipated earlier in the year [49][50] Question: What are the geotechnical challenges at Vasante? - Management clarified that the challenges were due to a pillar constraint affecting production, but they are taking precautions to ensure safety and productivity [54][56] Question: Will exploration results be incorporated into year-end resources? - Management indicated that they expect to replace reserves mined this year and will highlight the potential for mineralized areas in future reports [59][63] Question: What is the timeline for the commissioning of the new filter at Aripuana? - Management confirmed that the commissioning is expected in March-April 2026, with no anticipated delays [66][76] Question: How will the company balance deleveraging, dividends, and capital expenditures? - Management stated that they aim to reduce gross debt while investing in mine life extensions, with a target leverage level around one time [71][72]

Financial Performance - Net revenues for 2Q25 were US$708 million, a 13% increase compared to 1Q25 (US$627 million) but a 4% decrease compared to 2Q24 (US$736 million)[14] - Adjusted EBITDA for 2Q25 was US$161 million, a 28% increase compared to 1Q25 (US$125 million) but a 22% decrease compared to 2Q24 (US$206 million)[14] - The company's net leverage ratio was 23x in 2Q25, compared to 21x in 1Q25 and 27x in 2Q24[14] - Free cash flow for 2Q25 was US$17 million, compared to US$(226) million in 1Q25 and US$149 million in 2Q24[14] Operational Highlights - Zinc production (mining) reached 74kt in 2Q25, up 9% from 1Q25 (67kt) but down 12% from 2Q24 (83kt)[14] - Total zinc sales (smelting) were 145kt in 2Q25, up 12% from 1Q25 (130kt) but down 2% from 2Q24 (148kt)[14] - Mining segment cash cost net of by-products was US$(011)/lb in 2Q25[19] - Smelting segment cash cost net of by-products was US$123/lb in 2Q25, a 5% increase QoQ and a 3% increase YoY[26] Strategic Initiatives and Outlook - The Cerro Pasco Integration Project is progressing, with Phase I execution advancing and technical studies for Phase II underway, aiming for a 15+ year LoM extension[34, 84] - Exploration efforts continue to reinforce geological potential, with promising intercepts at Cerro Lindo, Aripuanã, Vazante, and Cerro Pasco Complex[41, 42, 43, 44, 45] - The company expects higher Adjusted EBITDA in 2H25, driven by operational improvements and cost optimization initiatives[31]

Group 1 - Nexa Resources S.A. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.05 per share, representing an earnings surprise of +320.00% [1] - The company posted revenues of $708.42 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.36%, although this is a decrease from year-ago revenues of $736.3 million [2] - Over the last four quarters, Nexa Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 46.1% since the beginning of the year, compared to the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.08 on revenues of $699.31 million, and for the current fiscal year, it is $0.09 on revenues of $2.7 billion [7] Group 3 - The Zacks Industry Rank indicates that the Mining - Miscellaneous sector is currently in the bottom 31% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for Nexa Resources was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Core Insights - Nexa Resources reported an Adjusted EBITDA of US$161 million in 2Q25, a 29% increase from US$125 million in 1Q25, driven by higher smelting and by-products sales volumes and prices [2][9] - The company experienced a net income of US$13 million in 2Q25, down from US$29 million in 1Q25, primarily due to increased financial expenses related to a liability management initiative [3] - Net revenues for 2Q25 reached US$708 million, a 13% increase from US$627 million in 1Q25, attributed to higher smelting sales volume and by-products contribution [4] Financial Performance - Adjusted net income for the quarter was US$37 million, totaling US$72 million for the first half of 2025 [3] - CAPEX for 2Q25 was US$87 million, primarily for sustaining investments, with a full-year guidance of US$347 million remaining unchanged [5] - The company issued a US$500 million bond to fund early redemption of existing notes, enhancing its financial flexibility [6] Operational Highlights - Treated ore volume in 2Q25 was 3,285kt, remaining flat year-over-year, reflecting recovery from previous challenges [10] - Zinc production reached 74kt, a 9% increase quarter-over-quarter, while copper production was 9kt, up 20% from 1Q25 [11][12] - Zinc metal and oxide production totaled 139kt, a 5% increase quarter-over-quarter, while sales amounted to 145kt, up 12% from 1Q25 [13][14] Growth Strategy - Nexa advanced on Phase I of the Cerro Pasco Integration Project, achieving key milestones such as securing construction permits and initiating site preparation [16] - The company maintains a disciplined capital allocation framework, focusing on sustaining investments and enhancing operational resilience [17] ESG and Corporate Initiatives - Nexa reaffirmed its commitment to sustainability and responsible governance, implementing initiatives focused on decarbonization and stakeholder engagement [18] - The company published its 2024 Annual Sustainability Report and engaged in community initiatives to promote social inclusion and financial autonomy [19][20]

Nexa Reports Solid Second Quarter 2025 Results including Net Income of US$13 million and Adjusted EBITDA of US$161 million Luxembourg, July 31, 2025 – Nexa Resources S.A. ("Nexa Resources", "Nexa", or the "Company") announces today its results for the three and six-month periods ended on June 30, 2025. CEO Message – Ignacio Rosado Nexa delivered solid quarterly results, demonstrating a measured recovery and continued strategic progress amid evolving market conditions. Our mining operations regained momentum ...

Core Viewpoint - Nexa Resources announced the drilling and assay results for the first half of 2025, highlighting a focus on near-mine expansion, brownfield and infill drilling, and greenfield exploration projects [2][5]. Drilling Strategy and Results - The total drilling in the first half of 2025 reached 131,910 meters, which included 28,145 meters of exploration drilling and 103,765 meters of mining infill drilling [2]. - Exploration drilling was distributed as follows: 14,281 meters in Peru, 13,208 meters in Brazil, 656 meters in Namibia, and 9,030 meters for early-stage greenfield projects in Peru [3]. Future Plans - For the second half of 2025, Nexa plans to conduct 47,245 meters of drilling, with 28,595 meters in Peru and 18,650 meters in Brazil [3][5]. Key Achievements - Significant findings included: - Cerro Lindo: 4.2 meters at 2.92% Zn, 0.30% Pb, 0.16% Cu, and 33.26 g/t Ag [7]. - Aripuanã: 10.8 meters at 7.59% Zn, 3.30% Pb, 0.18% Cu, and 62.03 g/t Ag, with a notable intercept of 4.8 meters at 16.60% Zn [7]. - Vazante: 6.3 meters at 22.14% Zn, 0.19% Pb, and 16.57 g/t Ag [7]. - El Porvenir: 18.6 meters at 2.83% Zn, 1.87% Pb, 0.07% Cu, 69.01 g/t Ag, and 1.40 g/t Au [7]. Company Overview - Nexa Resources is a large-scale, low-cost integrated polymetallic producer, primarily focused on zinc, with over 65 years of experience in mining and smelting in Latin America [6][8]. - The company operates four long-life underground polymetallic mines in Peru and Brazil, along with three smelters [6][8].

Group 1 - Morgan Stanley downgraded Freeport-McMoRan (FCX.US) and Teck Resources (TECK.US) from "Overweight" to "Hold," with target prices set at $54 and $44 respectively [1] - The performance of copper stocks covered by Morgan Stanley has outpaced LME copper prices by 28 percentage points since April 8, making the risk/reward profile less attractive [1] - Analysts believe Freeport-McMoRan has upside potential due to its exposure to Comex copper and strong gold prospects, but the current risk/reward ratio appears unattractive with few short-term catalysts [1] Group 2 - Morgan Stanley downgraded Southern Copper (SCCO.US) from "Hold" to "Underweight," setting a target price of $99, citing that the stock's valuation seems high relative to historical averages and industry peers [2] - The firm also downgraded Nexa Resources (NEXA.US) from "Hold" to "Underweight," with a target price of $5, due to pessimistic expectations regarding zinc prices and operational issues affecting production targets [2]

Core Viewpoint - Nexa Resources has fully resumed operations at the Cajamarquilla smelter after a three-day temporary suspension due to successful negotiations with labor union representatives [1]. Company Overview - Nexa Resources is a large-scale, low-cost integrated polymetallic producer, primarily focused on zinc, with over 65 years of experience in mining and smelting in Latin America [3]. - The company operates four long-life underground polymetallic mines in Peru and Brazil, and one low-cost open pit mine in Peru, along with three smelters, including Cajamarquilla, the largest in the Americas [3]. Production and Market Position - In 2024, Nexa was among the top five producers of mined zinc globally and one of the top five metallic zinc producers worldwide, according to Wood Mackenzie [4].

Core Viewpoint - Nexa Resources has temporarily suspended operations at the Cajamarquilla smelter due to a strike initiated by operator employees represented by their labor union, which began on June 25, 2025 [1][2]. Company Operations - The strike affects only the operator's union, as an agreement has already been reached with the technician's union [2]. - Nexa is actively monitoring the situation and is taking necessary measures to ensure the health and safety of its employees, contractors, and host communities [3]. - The company does not expect any impact on its 2025 sales guidance despite the ongoing strike [3]. Company Background - Nexa Resources is a large-scale, low-cost, integrated polymetallic producer, primarily focused on zinc, with over 65 years of experience in mining and smelting operations in Latin America [4]. - The company operates four long-life underground polymetallic mines and one low-cost open pit mine in Peru, along with three smelters, including Cajamarquilla, the largest smelter in the Americas [4]. Industry Position - In 2024, Nexa was ranked among the top five producers of mined zinc globally and one of the top five metallic zinc producers worldwide, according to Wood Mackenzie [5].