Core Viewpoint - Nexa Resources S.A. has completed the sale of ten Exclusive Prospecting Licenses (EPLs) related to the Otavi and Namibia North projects to Midnab Resources, marking a strategic move in its portfolio optimization efforts [1][2][3] Group 1: Transaction Details - The sale includes all EPLs and associated rights, titles, and interests in the Project, completed after fulfilling all closing conditions [2] - JOGMEC retains rights to 49% of the proceeds from the sale, indicating a continued interest in the project [1] Group 2: Strategic Implications - This divestment is part of Nexa's ongoing strategy to optimize its portfolio by focusing on return-generating assets and enhancing free cash flow [3] - Namibia remains a strategic region for Nexa as it advances its copper exploration initiatives beyond Latin America [3] Group 3: Company Overview - Nexa 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 [5] - The company operates five polymetallic mines and three smelters, with a significant presence in the Americas [5] - In 2024, Nexa was among the top five producers of mined zinc globally, highlighting its competitive position in the market [6]

Core Viewpoint - Nexa Resources S.A. (NEXA) has reached a significant support level and shows potential for investors from a technical perspective due to a "golden cross" formation in its moving averages [1] Technical Analysis - NEXA's 50-day simple moving average has recently crossed above its 200-day moving average, indicating a bullish breakout potential [1] - A golden cross consists of three stages: a downtrend that bottoms out, a shorter moving average crossing above a longer one, and a subsequent upward price movement [2] Performance Metrics - NEXA has experienced a rally of 13.4% over the past four weeks, suggesting positive momentum [3] - The company currently holds a 3 (Hold) rating on the Zacks Rank, indicating it could be poised for further breakout [3] Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with three revisions higher in the past 60 days, contributing to a positive earnings outlook [3] - The Zacks Consensus Estimate for NEXA has also increased, reinforcing the bullish case for the company [3] Investment Consideration - Given the technical indicators and positive earnings estimate movements, NEXA should be considered for investors' watchlists [5]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Zinc prices are under pressure from above and supported from below, with no clear direction. The short - term is expected to maintain range consolidation. Unilateral strategies should focus on high - selling and low - buying, and arbitrage strategies can consider going long on the Shanghai - London ratio [3][65][66]. - The tight pattern of the zinc ore end is expected to continue until the first quarter of next year. The TC has changed from rising to falling, and the industrial chain profit has shifted from the smelter end to the ore end again. The inventory trends at home and abroad are diverging [2][62][63]. 3. Summary by Directory 3.1 Total Overview - In August 2025, the global zinc market supply surplus expanded to 47,900 tons. From January to August 2025, the global refined zinc supply surplus was 154,000 tons. From July to August 2025, the global zinc concentrate cumulative output was 2.1712 million tons, a year - on - year increase of 11.57%. From January to August 2025, the global refined zinc output was 9.1482 million tons, basically the same as the cumulative output of last year [11]. - The statistical sample of this report shows that the zinc concentrate output in the third quarter of 2025 was 1.4424 million tons, a quarter - on - quarter decrease of 0.95% and a year - on - year increase of 8.20%. The cumulative output in the first three quarters was 4.254 million tons, a cumulative year - on - year increase of 6.31% [11]. 3.2 Glencore - In 2025, Glencore's zinc concentrate production guidance was adjusted to 94 - 980,000 tons. In the third quarter, the zinc concentrate output was 244,200 tons, a quarter - on - quarter decrease of 2.94% and a year - on - year increase of 7.86%. The cumulative output in the first three quarters was 709,400 tons, a cumulative year - on - year increase of 10.22% [19]. 3.3 Teck - In 2025, Teck's zinc concentrate production guidance was 525,000 - 575,000 tons. In the third quarter, the zinc concentrate output was 150,500 tons, a quarter - on - quarter decrease of 10.68% and a year - on - year decrease of 4.59%. The cumulative output in the first three quarters was 456,400 tons, a cumulative year - on - year decrease of 2.81% [24]. 3.4 Boliden - In the third quarter of 2025, Boliden's zinc concentrate output was 108,000 tons, a quarter - on - quarter increase of 5.08% and a year - on - year increase of 17.75%. The cumulative output in the first three quarters was 317,600 tons, a cumulative year - on - year increase of 21.12% [27]. 3.5 Vedanta - In the third quarter of 2025, Vedanta's zinc concentrate output was 262,000 tons, a quarter - on - quarter increase of 1.16% and a year - on - year increase of 8.26%. The cumulative output in the first three quarters was 785,000 tons, a cumulative year - on - year increase of 5.65% [32]. 3.6 Nexa - In 2025, Nexa's zinc concentrate production guidance was 300,000 - 336,000 tons. In the third quarter, the zinc concentrate output was 83,700 tons, a quarter - on - quarter increase of 13.88% and a year - on - year increase of 1.21%. The cumulative output in the first three quarters was 224,500 tons, a cumulative year - on - year decrease of 11.05% [37]. 3.7 MMG - In 2025, MMG's zinc concentrate production guidance was 215,000 - 240,000 tons. In the third quarter, the zinc concentrate output was 58,700 tons, a quarter - on - quarter increase of 4.58% and a year - on - year increase of 26.49%. The cumulative output in the first three quarters was 166,700 tons, a cumulative year - on - year increase of 6.85% [44]. 3.8 Newmont Goldcorp - In 2025, Newmont's zinc concentrate production guidance was 236,000 tons. In the third quarter, the zinc concentrate output was 59,000 tons, a quarter - on - quarter decrease of 11.52% and a year - on - year increase of 2.42%. The cumulative output in the first three quarters was 184,700 tons, a cumulative year - on - year increase of 2.30% [47][48]. 3.9 BHP - In the 2025 fiscal year, BHP's zinc concentrate production guidance was 90,000 - 110,000 tons. In the third quarter, the zinc concentrate output was 36,000 tons, a quarter - on - quarter decrease of 10.95% and a year - on - year increase of 85.77%. The cumulative output in the first three quarters was 102,400 tons, a cumulative year - on - year increase of 91.03% [49]. 3.10 South32 - In the 2026 fiscal year, South32's zinc concentrate production guidance was 40,000 tons, a decrease compared with the 2025 fiscal year. In the third quarter of 2025, the zinc concentrate output was 8,300 tons, a quarter - on - quarter decrease of 21.70% and a year - on - year decrease of 31.40%. The cumulative output in the first three quarters was 29,900 tons, a cumulative year - on - year decrease of 31.74% [50][51]. 3.11 Grupo Mexico - SCC - In 2025, SCC's zinc concentrate production guidance was 174,700 tons, a slight increase compared with the previous period. In the third quarter, the zinc concentrate output was 45,500 tons, a quarter - on - quarter decrease of 0.89% and a year - on - year increase of 46.42%. The cumulative output in the first three quarters was 130,800 tons, a cumulative year - on - year increase of 50.55% [52]. 3.12 Industrials Pelones - In the third quarter of 2025, Pelones' zinc concentrate output was 63,200 tons, a quarter - on - quarter increase of 5.02% and a year - on - year decrease of 11.33%. The cumulative output in the first three quarters was 181,000 tons, a cumulative year - on - year decrease of 13.68% [54]. 3.13 Fresnillo plc - In 2025, Fresnillo plc's zinc concentrate production guidance was 93,000 - 103,000 tons. In the third quarter, the zinc concentrate output was 24,700 tons, a quarter - on - quarter decrease of 12.91% and a year - on - year decrease of 23.41%. The cumulative output in the first three quarters was 78,400 tons, a cumulative year - on - year decrease of 10.61% [57]. 3.14 Market Outlook - The tight pattern of the ore end is expected to continue until the first quarter of next year. The TC has changed from rising to falling, and the industrial chain profit has shifted from the smelter end to the ore end again. The domestic and foreign inventory trends are diverging. Zinc prices are under pressure from above and supported from below, with no clear direction [62][63][65].

Group 1: Report Overview - The report is a zinc special report dated November 10, 2025, focusing on the Q3 financial reports of overseas zinc mines [4][8][12] Group 2: Overseas Mine Production Overseas Part - Mine Output Aggregation - The report provides a detailed table of the production of overseas mining enterprises from 2021Q1 to 2025Q3, including Vedanta, Glencore, TECK, etc. The total production shows fluctuations over different quarters and years, with varying year - on - year growth rates [16] Global Zinc Concentrate Annual Output - The annual output and year - on - year growth rate of global zinc concentrate from 2017 to 2025E are presented. The output in 2025E is expected to be 1262.05 million tons, with a year - on - year growth of 5.90% [70] Zinc Concentrate Production Change Forecast - In 2025, overseas mines are expected to have a net increase of 59.49 million tons in production, with new mines, production increases, restarts, and some mines reducing production or shutting down. Domestic mines are expected to have a new production increase of 10.80 million tons, with a total global net increase of 70.29 million tons [73] - Forecasts for production changes from 2026 - 2030 are also provided, with a total net increase of 23.27 million tons in 2026, 5.60 million tons in 2027, 12.10 million tons in 2028, 6.30 million tons in 2029, and 0.70 million tons in 2030 [75]

Financial Data and Key Metrics Changes - Net revenues reached $764 million, an 8% increase sequentially and year-over-year, driven by higher zinc prices and stronger operational performance [13][19] - Adjusted EBITDA was $186 million, a 16% increase from the last quarter and a 2% increase year-over-year, with a healthy margin of 24% [13] - Net income was $100 million, or $0.52 per share, with free cash flow of $52 million, up from the previous quarter [6][18] Business Line Data and Key Metrics Changes - Mining production reached 84,000 tons of zinc, a 14% increase from the second quarter, primarily due to a record quarter at Aripuanã [5][6] - Smelting segment sales were 150,000 tons, reflecting a 3% sequential increase, with net revenues of $541 million and adjusted EBITDA of $23 million [10][11] Market Data and Key Metrics Changes - LME zinc prices trended higher, closing September at around $3,010 per ton, supported by low exchange inventories and a weaker U.S. dollar [19] - Copper prices remained around $10,300 per ton, driven by strong fundamentals and demand from electrification and infrastructure spending [20] Company Strategy and Development Direction - The company is focused on five strategic catalysts to strengthen its competitive position, including the Aripuanã project and the Cerro Pasco Integration Project [4][5] - The growth strategy involves evaluating opportunities in mining-friendly jurisdictions, with a commitment to disciplined capital allocation [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full production capacity at Aripuanã by the second half of 2026, with ongoing improvements in operational stability [9][26] - The company anticipates a positive contribution from working capital in the fourth quarter, aiming for a neutral cash flow impact for the year [39] Other Important Information - The company reaffirmed its $347 million CapEx guidance for 2025, with a focus on sustaining activities and strategic projects [14][15] - The company received recognition for its ESG efforts, including a seal of excellence in gender equity and progress in reducing emissions [24] Q&A Session Summary Question: What is the expected leverage level and strategies for reducing gross debt? - Management aims to reduce gross debt by $500 to $600 million over the next four years, targeting net leverage closer to one time for greater flexibility [30][32] Question: What are the next steps for the installation of the fourth filter at Aripuanã? - The fourth filter has arrived in Brazil, with commissioning expected to start in April next year, allowing for full production capacity by mid-2026 [36][37] Question: How flexible is the CapEx for 2026 in light of potential lower zinc prices? - The company has some flexibility in CapEx, particularly in sustaining and discretionary projects, while maintaining a conservative approach to budgeting for zinc prices [44][46] Question: What is the current status of workforce turnover at Aripuanã? - Turnover has improved to 18-20%, down from previous highs, with ongoing efforts to enhance retention through community development and employee programs [50][53] Question: What is the outlook for silver production given the current market conditions? - Silver production is constrained by existing mining plans, but a silver streaming agreement may provide additional cash flow in 2026 as production thresholds are reached [60][61]

Financial Performance - Net revenues reached US$764 million, an increase of 8% compared to both 2Q25 and 3Q24[14] - Adjusted EBITDA was US$186 million, up 16% from 2Q25 and 2% from 3Q24[14] - Free cash flow was US$52 million, an increase of US$35 million compared to 2Q25, but an decrease of US$1 million compared to 3Q24[14] - Net leverage stood at 22x, a decrease of 01x compared to 2Q25 and remained the same compared to 3Q24[14] Operational Highlights - Zinc production from mining reached 84kt, a 14% increase compared to 2Q25 and a 1% increase compared to 3Q24[14] - Total zinc sales from smelting amounted to 150kt, a 3% increase compared to 2Q25 but a 2% decrease compared to 3Q24[14] - Aripuanã achieved a new quarterly record with 104kt of zinc production, a 39% increase compared to 2Q25[24] Strategic Initiatives - Cerro Pasco Integration Project is progressing, aiming for a potential 15+ years LoM extension and a 20-30% NSR uplift[33] - The company is actively seeking accretive value-generating opportunities in mining-friendly jurisdictions[11] Market Overview - Zinc prices are consolidating near US$3,000/t, with a 2026 benchmark treatment charge expected at approximately US$130-180/t[73] - Silver prices increased by 58% from July 2024 to September 2025, reaching US$46/oz[67]

Core Insights - Nexa Resources S.A. reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.11, and compared to earnings of $0.02 per share a year ago, representing an earnings surprise of -127.27% [1] - The company posted revenues of $763.5 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.17%, but showing an increase from year-ago revenues of $709.48 million [2] - Nexa Resources shares have declined approximately 36.7% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Nexa Resources' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $787.08 million, and for the current fiscal year, it is $0.57 on revenues of $2.89 billion [7] Industry Context - The Mining - Miscellaneous industry, to which Nexa Resources belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Insights - Nexa Resources reported a net income of US$100 million in 3Q25, a significant increase from US$13 million in 2Q25 and US$6 million in 3Q24, driven by a non-cash impairment reversal and stronger operational margins [2][3][4] Financial Performance - Adjusted EBITDA for the quarter was US$186 million, up from US$161 million in 2Q25 and US$183 million in 3Q24, primarily due to higher mining output and better metal prices [3] - Net revenues reached US$764 million, an 8% increase from US$708 million in 2Q25 and US$709 million in 3Q24, supported by higher smelting sales volume and operational improvements [4] Operational Highlights - Overall zinc production rose 14% quarter-over-quarter to 84kt, with Aripuanã achieving record production of 10.4kt, a 39% increase from 3Q24 [14] - Lead production increased 16% quarter-over-quarter to 18kt, while copper production decreased 6% quarter-over-quarter to 9kt [14] - The Cerro Pasco Integration Project is on schedule, with construction activities well underway and key equipment packages undergoing Factory Acceptance Tests [14] Capital Expenditure and Debt Management - CAPEX totaled US$90 million in 3Q25, with approximately US$12 million allocated to the Cerro Pasco Integration Project, maintaining full-year guidance at US$347 million [9] - Nexa's net debt decreased to US$1,479 million from US$1,515 million in the previous quarter, improving the Net debt/LTM Adjusted EBITDA ratio to 2.2x [9] ESG and Corporate Initiatives - Nexa advanced its commitment to sustainable mining through initiatives in safety, decarbonization, and community engagement, including health campaigns and educational support [12][15] - The company achieved full compliance with LME Responsible Sourcing standards and showcased its ESG strategy at various industry forums [21]

Financial Performance - Net revenues for Q3 2025 totaled US$764 million, an 8% increase from US$708 million in Q2 2025 and also up 8% year-over-year from Q3 2024[11]. - Net income reached US$100 million in Q3 2025, significantly up from US$13 million in Q2 2025 and US$6 million in Q3 2024, resulting in earnings per share of US$0.52 for the quarter[15]. - Adjusted EBITDA for Q3 2025 was US$186 million, up from US$161 million in Q2 2025 and US$183 million in Q3 2024, with a consolidated Adjusted EBITDA margin of 24%[15]. - Free cash flow for Q3 2025 was positive at US$52 million, primarily due to higher operating cash flow and lower interest payments[15]. - Total cash at the end of Q3 2025 was US$470 million, up from US$418 million at the end of Q2 2025, with total available liquidity of US$790 million[15]. - For the first nine months of 2025, net revenues totaled US$2.1 billion, up 4% compared to the same period in 2024, primarily due to higher by-products contribution[53]. - Cost of sales in Q3 2025 amounted to US$610 million, a 5% increase year-over-year, attributed to lower TCs and higher zinc LME prices[54]. - SG&A expenses in Q3 2025 totaled US$37 million, up 27% year-over-year, mainly due to higher personnel costs and legal expenses[60]. - In 9M25, net income totaled US$142 million compared to a net loss of US$76 million in 9M24, indicating a strong recovery[78]. Production and Operations - Zinc production in Q3 2025 was 84kt, a 14% increase quarter-over-quarter and a 1% increase year-over-year, driven by improved performance at Vazante and record production at Aripuanã[12]. - The mining segment delivered Adjusted EBITDA of US$164 million in Q3 2025, a 28% increase year-over-year, supported by higher by-products prices[15]. - Zinc equivalent production increased by 9% to 164kt in 3Q25, reflecting improvements across various mining assets[89]. - Treated ore volume in 3Q25 was 3,382kt, remaining stable year-over-year, with notable performances at Aripuanã, Cerro Lindo, and El Porvenir[85]. - In 3Q25, treated ore volume at Cerro Lindo was 1,586kt, up 1.6% year-over-year and down 3% quarter-over-quarter[92]. - Zinc production at Cerro Lindo was 22.3kt, a decline of 3.5% year-over-year and 9.7% quarter-over-quarter, attributed to lower-grade zones[93]. - At El Porvenir, zinc production reached 14.4kt in 3Q25, up 12.1% year-over-year and 5.9% quarter-over-quarter, driven by higher ore processing volumes[101]. - In 3Q25, Vazante's ore mined increased by 6.6% year-over-year to 410kt, while treated ore decreased by 2.3% to 439kt[114][116]. - Zinc production at Vazante totaled 33.7kt, down 7% from 3Q24, but increased by 23% compared to 2Q25 due to improved access to higher-grade zones[117]. - In 3Q25, Aripuanã's ore mined was 365kt, a significant decrease of 28.9% year-over-year, while treated ore increased by 2.3% to 420kt[122]. Cost Management - Net debt to last twelve months Adjusted EBITDA ratio improved to 2.2x at the end of Q3 2025, down from 2.3x at the end of Q2 2025[15]. - The consolidated run-of-mine mining cost for 9M25 was US$49.5/t, at the lower end of the 2025 guidance, while the C1 cash cost was US$(0.18)/lb, significantly below the expected range due to increased by-products contribution[35]. - Nexa's C1 cash cost for the smelting segment was US$1.24/lb in 9M25, consistent with the 2025 guidance, while the smelting conversion cost was US$0.34/lb[37]. - The average run-of-mine mining cost was US$87.3/t in 3Q25, down 20% from US$109/t in 2Q25, due to higher treated ore volume and lower operational costs[129]. - Cash cost net of by-products at Cerro Lindo improved to US$(0.98)/lb in 3Q25 from US$(0.36)/lb in 3Q24, reflecting higher by-products contribution[96]. - Cash cost net of by-products at El Porvenir significantly decreased to US$(0.49)/lb in 3Q25 from US$0.18/lb in 3Q24, primarily due to higher by-products contribution[103]. - The cash cost net of by-products at Atacocha was US$(2.37)/lb in 3Q25, improving significantly by US$1.44/lb from 3Q24[112]. - Cash cost net of by-products decreased to US$(0.20)/lb in 3Q25, down US$0.13/lb from 2Q25, attributed to higher by-products prices and increased sales volumes[130]. - Cash cost net of by-products was US$1.55/lb in 3Q25, up 18.4% from US$1.31/lb in 3Q24[175]. Sustainability and Initiatives - The company is advancing its sustainability initiatives, including operating the Cajamarquilla smelter entirely on renewable hydroelectric energy, reinforcing its commitment to low-carbon production[6]. - In Q3 2025, Nexa Resources achieved significant progress in the Cerro Pasco Integration Project, with construction on track and key milestones reached, including earthworks and procurement of major equipment[23]. - Nexa's exploration and project evaluation guidance for 2025 remains unchanged at US$88 million, with other expenses expected to total approximately US$20 million[45]. - The fourth tailings filter is expected to enhance operational stability once commissioned in 1H26, addressing seasonal rainfall challenges[128]. Debt and Financial Position - As of September 30, 2025, Nexa's total debt reached US$1,834 million, reflecting a 1% increase from June 30, 2025[198]. - The average maturity of total debt is 7.4 years with an average interest rate of 6.32% per year[199]. - 5% (US$85 million) of total debt is maturing in 2025, while 2% (US$31 million) is maturing in 2026[199]. - 30% (US$551 million) of total debt is set to mature between 2027 and 2031[199]. - 35% (US$638 million) of total debt will mature between 2032 and 2036[199]. - 29% (US$529 million) of total debt is maturing in and after 2037[199]. - 82% (US$1,511 million) of total debt is denominated in U.S. dollars, while 18% (US$322 million) is in Brazilian reais[199]. - Fitch Ratings reaffirmed Nexa's 'BBB-' investment grade rating with a 'Stable' Outlook, highlighting the company's solid financial position[25].

Core Insights - Nexa Resources S.A. is a significant player in the mining and smelting industry, focusing on zinc, copper, and lead production in Latin America, particularly Brazil and Peru [1] - The consensus price target for Nexa has increased from $4.75 to $5.50 over the past year, indicating a positive sentiment from analysts [2][6] - The company reported quarterly earnings of $0.11 per share, exceeding expectations of a $0.05 loss, showcasing strong financial performance [2][6] Price Target Trends - Three months ago, the average price target was $4.75, showing a notable increase to $5.50 recently, reflecting improved analyst outlook [3][6] - Analyst Jackie Przybylowski from BMO Capital has set a higher price target of $6.5, reinforcing the optimistic sentiment surrounding Nexa [3][6] - A year ago, the average price target was also $4.75, indicating stability, but recent developments have led to a more favorable view [4] Market Performance - Nexa's stock price recently increased by 5.1% in a trading session, accompanied by higher-than-average trading volume, suggesting positive market reception [4] - Despite the positive trends, analysts predict a potential decline in earnings, which could affect future price targets [4][5] - The upward trend in price targets is attributed to improved financial performance and strategic initiatives, which investors should monitor closely [5]