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]

[Report Overview](index=1&type=section&id=Report%20Overview) [CEO Message](index=1&type=section&id=CEO%20Message) The CEO highlighted solid quarterly results, reflecting a measured recovery from earlier weather disruptions - Nexa demonstrated a measured recovery and strategic progress, regaining momentum after weather-related disruptions earlier in the year[2](index=2&type=chunk) - **Full-year production and cost guidance has been revised** to prioritize operational stability, margin protection, and cash flow generation[2](index=2&type=chunk) - Proactive liability management **extended debt maturities at competitive rates**, enhancing financial strength and flexibility[3](index=3&type=chunk) - Key project milestones were achieved: **Cerro Pasco Phase I** saw engineering finalized and permits secured, while the **Aripuanã tailings filter installation remains on track for H2 2025** to unlock full capacity[4](index=4&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Nexa reported Q2 2025 net revenues of US$708 million, net income of US$13 million, and Adjusted EBITDA of US$161 million Q2 2025 Key Financial Metrics | US$ million (except per share amounts) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net revenues | 708 | 627 | 736 | | Net income (loss) | 13 | 29 | (70) | | Adjusted EBITDA | 161 | 125 | 206 | | Basic and diluted EPS | 0.01 | 0.09 | (0.58) | | Free cash flow | 17 | (226) | 149 | Balance Sheet and Leverage Metrics (as of June 30, 2025) | US$ million (except ratio) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Total cash | 418 | 401 | 474 | | Net debt | 1,515 | 1,488 | 1,450 | | Net Debt/LTM Adj. EBITDA | 2.3x | 2.1x | 2.7x | [Executive Summary](index=2&type=section&id=Executive%20Summary) The company saw sequential increases in zinc production and smelting sales, driving higher revenues and Adjusted EBITDA - **Zinc production reached 74kt**, up 9% QoQ, driven by improved performance in Peru, but down 12% YoY[12](index=12&type=chunk) - **Smelting sales totaled 145kt**, up 12% QoQ, due to higher production at Cajamarquilla and Juiz de Fora[12](index=12&type=chunk) - **Adjusted EBITDA for Q2 2025 was US$161 million**, up from US$125 million in Q1 2025 but down from US$206 million in Q2 2024[15](index=15&type=chunk) - **Total available liquidity stood at US$738 million**, including an undrawn US$320 million revolving credit facility[19](index=19&type=chunk) - Strategic portfolio optimization continued with the **sale of the Otavi Project** in Namibia for up to US$10 million plus royalties[25](index=25&type=chunk) [2025 Outlook](index=7&type=section&id=2025%20Outlook) [Production, Sales and Cash Cost Guidance](index=7&type=section&id=Production%2C%20Sales%20and%20Cash%20Cost%20Guidance) Nexa revised its 2025 mining production guidance downwards while updating cash cost forecasts for both mining and smelting Revised 2025 Mining Production Guidance (kt, unless noted) | Metal | Previous Guidance (Mid-point) | Revised Guidance (Mid-point) | Change | | :--- | :--- | :--- | :--- | | Zinc | 331 | 318 | -4% | | Lead | 64.5 | 60.5 | -6% | | Silver (MMoz) | 11.6 | 11.3 | -3% | | Copper | 32 | 32 | Unchanged | - Smelting sales guidance for zinc metal and oxide remains unchanged at **560-590kt**[32](index=32&type=chunk) Revised 2025 Cash Cost Guidance (US$/lb) | Segment | Cost Metric | Previous Guidance (Mid-point) | Revised Guidance (Mid-point) | Change | | :--- | :--- | :--- | :--- | :--- | | Mining | C1 Cash Cost | 0.12 | 0.06 | -48% | | Smelting | Conversion Cost | 0.31 | 0.385 | +24% | | Smelting | C1 Cash Cost | 1.245 | 1.235 | -1% | - Guidance revisions are based on updated assumptions for commodity prices and a **lower zinc TC benchmark of US$80/t**[35](index=35&type=chunk) [Capital Expenditures ("CAPEX")](index=12&type=section&id=Capital%20Expenditures%20%28%22CAPEX%22%29) The company maintains its full-year 2025 CAPEX guidance at US$347 million, with US$137 million invested in the first half - Full-year 2025 CapEx guidance is reaffirmed at **US$347 million**[49](index=49&type=chunk) CAPEX Summary (US$ million) | Period | Investment | Guidance 2025 | | :--- | :--- | :--- | | 1H25 | 137 | 347 | | 2Q25 | 87 | N/A | - Investment in Phase I of the Cerro Pasco Integration Project amounted to **US$17 million in Q2 2025**, totaling US$18 million for the first half of the year[49](index=49&type=chunk) [Exploration & Project Evaluation](index=12&type=section&id=Exploration%20%26%20Project%20Evaluation) Guidance for 2025 exploration and project evaluation expenses remains unchanged at US$88 million - Full-year 2025 guidance for exploration and project evaluation is unchanged at **US$88 million**[50](index=50&type=chunk) Exploration & Project Evaluation Expenses (US$ million) | Period | Investment | Guidance 2025 | | :--- | :--- | :--- | | 1H25 | 32 | 88 | | 2Q25 | 16 | N/A | - Other expenses, including technology and community initiatives, are guided at **US$20 million** for the full year[50](index=50&type=chunk)[51](index=51&type=chunk) [Consolidated Performance](index=15&type=section&id=Consolidated%20performance) [Financial Results Analysis](index=15&type=section&id=Financial%20Results%20Analysis) Q2 2025 net revenues fell 4% YoY to US$708 million, while Adjusted EBITDA decreased 22% YoY to US$161 million - Net revenues decreased 4% YoY to **US$708 million**, primarily due to reduced smelting sales volume and lower metal prices[59](index=59&type=chunk) - Compared to Q1 2025, **net revenues increased by 13%**, driven by higher smelting sales volume and stronger copper and silver prices[60](index=60&type=chunk) - Adjusted EBITDA for Q2 2025 was **US$161 million**, a 22% decrease from Q2 2024, mainly due to a US$62 million negative impact from higher costs and lower TCs[67](index=67&type=chunk) - Sequentially, **Adjusted EBITDA increased by 28%** from Q1 2025, attributed to higher by-products contribution and increased smelting sales volume[71](index=71&type=chunk) [Net Income (Loss) and Financial Results](index=18&type=section&id=Net%20Income%20%28Loss%29%20and%20Financial%20Results) The company reported a net income of US$13 million in Q2 2025, a significant turnaround from a US$70 million loss in Q2 2024 Net Income (Loss) Summary (US$ million) | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net Income (loss) | 13.3 | 28.7 | (70.0) | | Adjusted net income | 37.4 | 34.2 | 41.7 | - Net financial results were a **loss of US$28 million**, a significant increase from a US$0.6 million loss in Q1 2025, driven by higher financial expenses from bond repurchases[82](index=82&type=chunk) - Adjusted Net Income attributable to shareholders was **US$15 million**, leading to an adjusted basic and diluted EPS of US$0.11 for the quarter[90](index=90&type=chunk) [Business Performance – Mining](index=21&type=section&id=Business%20performance%20%E2%80%93%20Mining) [Mining Segment Overview](index=21&type=section&id=Mining%20Segment%20Overview) The mining segment's zinc production was 74kt, down 12% YoY but up 9% QoQ, with an improved cash cost of US$(0.11)/lb Q2 2025 Mining Production | Metal | Production | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Zinc (kt) | 73.5 | -11.7% | +9.2% | | Copper (kt) | 9.1 | -6.5% | +19.7% | | Lead (kt) | 15.2 | -9.1% | +19.7% | | Silver (MMoz) | 2.7 | -5.6% | +12.5% | - Consolidated run-of-mine mining cost was **US$50/t**, up 4% YoY and QoQ, primarily due to stabilization efforts at Aripuanã[12](index=12&type=chunk) - Consolidated mining cash cost net of by-products improved to **US$(0.11)/lb** from US$0.11/lb in Q1 2025, due to higher by-product contributions and sales volume[12](index=12&type=chunk) [Cerro Lindo, Peru](index=22&type=section&id=Cerro%20Lindo%2C%20Peru) Cerro Lindo's treated ore volume increased 11% YoY, though zinc production fell 4% due to lower grades - Treated ore volume was **1,630kt**, up 11% YoY and 9% QoQ[103](index=103&type=chunk) - Zinc production of **23kt** was down 4% YoY due to lower grades (1.60% vs 1.86% in 2Q24), but up 37% QoQ[105](index=105&type=chunk) - Run-of-mine mining cost **decreased 17% YoY to US$38/t** due to higher throughput and lower fixed costs[108](index=108&type=chunk) [El Porvenir, Peru](index=23&type=section&id=El%20Porvenir%2C%20Peru) El Porvenir's operations normalized, with zinc production rising 12% YoY to 14kt and costs decreasing - **Zinc production increased 12% YoY to 14kt**, driven by higher throughput and grades[113](index=113&type=chunk) - Run-of-mine mining cost was **US$63/t**, a 4% decrease YoY, reflecting lower operating expenses[115](index=115&type=chunk) - Sustaining CAPEX was **US$26 million**, largely for mine development and the Cerro Pasco Integration Project[117](index=117&type=chunk) [Atacocha, Peru](index=25&type=section&id=Atacocha%2C%20Peru) Atacocha recovered from weather issues with a 23% QoQ increase in treated ore and a 29% YoY surge in zinc production - Treated ore volume was **383kt**, up 1% YoY and 23% QoQ, showing recovery from Q1 disruptions[120](index=120&type=chunk) - **Zinc production increased 29% YoY to 3.1kt**, supported by higher volumes and a better average grade of 0.98%[120](index=120&type=chunk)[121](index=121&type=chunk) - Run-of-mine mining cost was **US$35/t**, up 7% YoY due to higher maintenance and service costs[124](index=124&type=chunk) [Vazante, Brazil](index=26&type=section&id=Vazante%2C%20Brazil) Vazante's zinc production fell 22% YoY to 27kt due to geotechnical constraints limiting access to higher-grade zones - **Zinc production totaled 27kt**, a 22% decrease YoY, due to mining in lower-grade areas following geotechnical constraints[131](index=131&type=chunk) - The average zinc grade fell to **7.69%** from 9.18% in Q2 2024[131](index=131&type=chunk) - Run-of-mine mining cost **increased 5% YoY to US$51/t**, attributed to higher maintenance and variable costs[133](index=133&type=chunk) [Aripuanã, Brazil](index=27&type=section&id=Aripuan%C3%A3%2C%20Brazil) Aripuanã's performance was hampered by plant downtime, leading to an 18% YoY decrease in treated ore - **Zinc production was 6.1kt**, down 20% YoY, reflecting increased plant downtime and operational constraints[138](index=138&type=chunk)[139](index=139&type=chunk) - Run-of-mine mining cost was high at **US$109/t**, driven by higher operational costs for maintenance and plant stabilization[142](index=142&type=chunk) - A fourth tailings filter is scheduled for installation in H2 2025 and commissioning in H1 2026 to enhance operational stability[141](index=141&type=chunk) [Mining Segment Financial Performance](index=29&type=section&id=Mining%20Segment%20Financial%20Performance) The mining segment's net revenues were US$353 million, with Adjusted EBITDA stable YoY at US$135 million Q2 2025 Mining Segment Financials (US$ million) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | 353.3 | 313.2 | 377.3 | -6.4% | | Adjusted EBITDA | 135.0 | 93.7 | 136.2 | -0.9% | | Adjusted EBITDA Mrg. | 38.2% | 29.9% | 36.1% | +2.1pp | - YoY Adjusted EBITDA was nearly flat as positive impacts from lower TCs and higher by-products contribution were offset by a negative net price effect and lower sales volume[152](index=152&type=chunk) [Business Performance – Smelting](index=32&type=section&id=Business%20performance%20%E2%80%93%20Smelting) [Smelting Segment Overview](index=32&type=section&id=Smelting%20Segment%20Overview) Total smelting production was 139kt, down 9% YoY, while sales totaled 145kt, down 2% YoY but up 12% QoQ Q2 2025 Smelting Production & Sales (kt) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Total Production | 138.9 | 132.8 | 152.4 | -8.8% | | Total Sales | 145.1 | 130.1 | 148.0 | -1.9% | - The YoY production decrease is consistent with 2025 sales guidance, which anticipates an annual reduction to adjust for market volatility and lower TCs[163](index=163&type=chunk) - The **12% QoQ sales increase** was driven by higher production at Cajamarquilla and Juiz de Fora, plus increased zinc oxide output at Tres Marias[164](index=164&type=chunk) [Cajamarquilla, Peru](index=32&type=section&id=Cajamarquilla%2C%20Peru) Cajamarquilla's production was 84kt, down 2% YoY due to a scheduled shutdown, but sales increased 4% YoY - Production reached **84kt**, a 2% decrease YoY due to a 15-day scheduled maintenance shutdown[168](index=168&type=chunk) - Metal sales were **87kt**, up 4% YoY and 8% QoQ, driven by higher production and demand[169](index=169&type=chunk) - Conversion cost increased to **US$0.36/lb** from US$0.27/lb in Q2 2024, primarily due to maintenance expenses[170](index=170&type=chunk) [Três Marias, Brazil](index=33&type=section&id=Tr%C3%AAs%20Marias%2C%20Brazil) Total production at Três Marias fell 16% YoY to 38kt, affected by hydrometallurgical challenges - Total production (zinc metal + oxide) was **38kt**, down 16% YoY, due to ongoing hydrometallurgical challenges and concentrate supply issues[175](index=175&type=chunk) - Conversion cost rose to **US$0.38/lb**, a 29% increase from Q2 2024, driven by higher maintenance and input costs[179](index=179&type=chunk) [Juiz de Fora, Brazil](index=35&type=section&id=Juiz%20de%20Fora%2C%20Brazil) Juiz de Fora's production was 17kt, down 23% YoY due to a prior fire incident but up 51% QoQ as operations recovered - Production of **17kt** was down 23% YoY due to the lingering effects of a fire, but up 51% QoQ as operations recovered[183](index=183&type=chunk) - The unit resumed its planned production capacity as of **mid-2025**[183](index=183&type=chunk) - Conversion cost rose to **US$0.58/lb**, primarily due to lower sales volume and higher energy costs[186](index=186&type=chunk) [Smelting Segment Financial Performance](index=36&type=section&id=Smelting%20Segment%20Financial%20Performance) The smelting segment's Adjusted EBITDA dropped 63% YoY to US$25 million, impacted by lower TCs and higher costs Q2 2025 Smelting Segment Financials (US$ million) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | 489.5 | 453.6 | 507.6 | -3.6% | | Adjusted EBITDA | 25.3 | 31.3 | 68.6 | -63.1% | | Adjusted EBITDA Mrg. | 5.2% | 6.9% | 13.5% | -8.3pp | - The **63% YoY decline in Adjusted EBITDA** was primarily driven by lower TCs and a negative US$23 million impact from higher costs[199](index=199&type=chunk) - Nexa sourced **50% of its zinc concentrate** from its own mines, with only about 30% of 2025 purchases subject to the new, lower US$80/t benchmark TC[197](index=197&type=chunk)[198](index=198&type=chunk) [Liquidity and Indebtedness](index=39&type=section&id=Liquidity%20and%20Indebtedness) [Debt Profile and Financing Activities](index=39&type=section&id=Debt%20Profile%20and%20Financing%20Activities) Nexa's total debt was US$1.82 billion with an average maturity of 7.7 years, and net debt increased slightly to US$1.52 billion Debt and Liquidity (US$ million) | Metric | Jun 30, 2025 | Mar 31, 2025 | | :--- | :--- | :--- | | Gross Debt | 1,819.6 | 1,781.9 | | Total Cash | 418 | 401 | | Net Debt | 1,515.1 | 1,488.2 | - The Net Debt/LTM Adj. EBITDA ratio was **2.28x**, up from 2.09x at the end of Q1 2025[220](index=220&type=chunk) - In April 2025, Nexa issued a **US$500 million 12-year bond at 6.600%** to refinance existing debt, extending its maturity profile[214](index=214&type=chunk) [Cash Flows](index=41&type=section&id=Cash%20flows) [Cash Flow Analysis](index=41&type=section&id=Cash%20Flow%20Analysis) Net cash from operating activities was US$100 million, resulting in a US$17 million increase in cash for the quarter Q2 2025 Cash Flow Summary (US$ million) | Cash Flow Activity | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Operating activities | 99.9 | 81.3 | | Investing activities | (71.1) | (56.5) | | Financing activities | (14.2) | 129.7 | | Increase in cash | 17.5 | 148.7 | - Cash provided by operating activities before working capital was **US$175 million**, with a positive working capital impact of US$3 million[223](index=223&type=chunk) - Investing activities were primarily driven by **US$87 million in CapEx investments**[224](index=224&type=chunk) - Financing activities included payments for bond redemptions, partially offset by the new **US$500 million bond offering**[225](index=225&type=chunk) [Market Scenario](index=43&type=section&id=Market%20scenario) [Commodity Market Analysis](index=43&type=section&id=Commodity%20Market%20Analysis) The zinc market faced pressure from tight supply and subdued demand, while the copper market was volatile - The LME zinc price averaged **US$2,641/t**, down 7% YoY, reflecting a market with tightening supply but soft global demand expectations[231](index=231&type=chunk) - LME refined zinc inventories declined to **117kt** by the end of June, the lowest level since October 2023[234](index=234&type=chunk) - The LME copper price averaged **US$9,524/t**, down 2% YoY, with high volatility driven by tariff proposals and a severe short squeeze[240](index=240&type=chunk) - LME copper inventories **fell 57% to 91kt** during the quarter, reflecting extreme concentrate market tightness and smelter bottlenecks[242](index=242&type=chunk) [Risks and Uncertainties](index=46&type=section&id=Risks%20and%20Uncertainties) [Key Risk Factors](index=46&type=section&id=Key%20Risk%20Factors) Nexa's operations are exposed to risks including volatile commodity prices, geopolitical instability, and operational challenges - The company's results are subject to **cyclical and volatile commodity prices**, changes in supply and demand, and foreign exchange rate fluctuations[251](index=251&type=chunk) - Risks include economic and political conditions in operating countries and changes in global market conditions, such as **international trade tariffs and geopolitical conflicts**[251](index=251&type=chunk) - Operational risks encompass environmental and safety challenges, natural disasters, **supply-chain interruptions**, and labor disputes[254](index=254&type=chunk) - Emerging risks include evolving **ESG expectations**, the impact of severe weather events, and cybersecurity threats[251](index=251&type=chunk)[254](index=254&type=chunk) [Appendix](index=51&type=section&id=Appendix) - The appendix provides detailed financial statements and reconciliations for non-IFRS measures, including a quarterly income statement, free cash flow reconciliation, detailed CAPEX breakdowns, and All-in Sustaining Cost (AISC) calculations for both the mining and smelting segments[275](index=275&type=chunk)

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Nexa Resources S.A. due to lower revenues, with a focus on how actual results will compare to estimates impacting stock price [1][3]. Earnings Expectations - Nexa Resources is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year change of -133.3% [3]. - Revenues are projected to be $659.88 million, down 10.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 65.22% lower in the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10]. Earnings Surprise Prediction - A positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - Nexa Resources currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [10]. Historical Performance - In the last reported quarter, Nexa Resources exceeded expectations with earnings of $0.16 per share against an estimate of $0.09, resulting in a surprise of +77.78% [11]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [12]. Conclusion - Nexa Resources does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of the earnings release [15].

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].

1. Report Industry Investment Rating No information provided on the report industry investment rating. 2. Core Views of the Report - The anticipation of a looser supply situation in the zinc concentrate mining sector has largely materialized, with the treatment charge (TC) continuing to rise. The annual production guidance for major overseas zinc concentrate producers remains mostly unchanged, and the upward trend in annual zinc concentrate production is expected to continue [3][50]. - Given the strong expectation of refinery复产 and the off - peak demand season, an inflection point in zinc ingot inventory may emerge [3]. - The zinc price is expected to be strong in the short - term and weak in the long - term. In the short run, low inventory provides some support, but weak demand restricts upward movement. In the long run, with increased supply and limited demand growth, the zinc price may face pressure [4]. 3. Summary by Directory 3.1 Total Overview - In March 2025, the global zinc market surplus narrowed to 23,700 tons. The first three months of 2025 saw a global supply surplus of 143,000 tons, slightly lower than the 148,000 tons surplus in the same period last year [12]. - In Q1 2025, global zinc concentrate production was 2.9021 million tons, a 9.75% decrease quarter - on - quarter and a 2.99% increase year - on - year. Global refined zinc production was 3.278 million tons, a 2.32% decrease quarter - on - quarter and a 3.55% decrease year - on - year [12]. 3.2 Glencore - Glencore's 2025 zinc concentrate production guidance is 93 - 990,000 tons, consistent with the initial expectation. Q1 production was 213,600 tons, a 18.29% decrease quarter - on - quarter and a 3.89% increase year - on - year. Increases mainly came from Antamina and the Australian region [19]. 3.3 Teck - Teck's 2025 zinc concentrate production guidance is 525,000 - 575,000 tons. Q1 production was 177,300 tons, a 6.19% decrease quarter - on - quarter and a 14.08% decrease year - on - year. Reductions mainly came from the Red Dog mine [22]. 3.4 Boliden - In Q1 2025, Boliden's zinc concentrate production was 57,900 tons, a 38.95% increase quarter - on - quarter and a 45.78% increase year - on - year. Increases mainly came from the复产 of the Tara mine [24]. 3.5 Vedanta - In Q1 2025, Vedanta's zinc concentrate production was 264,000 tons, a 5.60% increase quarter - on - quarter and a 4.35% increase year - on - year. Increases mainly came from Gamsberg, partially offset by the reduction at Black Mountain Mine [27]. 3.6 Nexa - Nexa's 2025 zinc concentrate production guidance is 311,000 - 351,000 tons. Q1 production was 67,300 tons, an 8.44% decrease quarter - on - quarter and a 22.82% decrease year - on - year. Except for Cerro Lindo, zinc production at other mines declined [31]. 3.7 MMG - MMG's 2025 zinc concentrate production guidance is 215,000 - 240,000 tons. Q1 production was 51,800 tons, a 19.02% decrease quarter - on - quarter and a 12.65% decrease year - on - year [37]. 3.8 Newmont Goldcorp - Newmont's 2025 zinc concentrate production guidance is 236,000 tons. Q1 production was 59,000 tons, a 23.38% decrease quarter - on - quarter and a 2.42% increase year - on - year [38]. 3.9 BHP - BHP's fiscal 2025 zinc concentrate production guidance is 90,000 - 110,000 tons. Q1 production was 26,000 tons, a 14.19% increase quarter - on - quarter and a 41.38% increase year - on - year [40]. 3.10 Lundin Mining - In Q1 2025, Lundin Mining's zinc concentrate production was 48,900 tons, a 5.77% decrease quarter - on - quarter and a 7.14% increase year - on - year [41]. 3.11 South32 - In Q1 2025, South32's zinc concentrate production was 11,000 tons, a 1.85% increase quarter - on - quarter and a 23.08% decrease year - on - year. The production guidance for the Cannington mine in fiscal 2025 was lowered to 45,000 tons [43]. 3.12 Grupo Mexico - SCC - In Q1 2025, SCC's zinc concentrate production was 39,400 tons, an 8.75% decrease quarter - on - quarter and a 49.40% increase year - on - year. The full - load operation of the Buenavista zinc concentrator contributed to the increase [44]. 3.13 Industrials Pelones - In Q1 2025, Pelones' zinc concentrate production was 57,700 tons, a 5.65% decrease quarter - on - quarter and a 13.86% decrease year - on - year. Reductions mainly came from the closure of the Tizapa mine and the depletion of the San Julian mine [45]. 3.14 Fresnillo plc - Fresnillo plc's 2025 zinc concentrate production guidance is 93,000 - 103,000 tons. Q1 production was 25,200 tons, a 12.79% decrease quarter - on - quarter and a 3.47% decrease year - on - year. Reductions mainly came from lower ore grades at Fresnillo and Cienega and the shutdown of the San Julian mine [47]. 3.15 Kaz Mineral - In Q1 2025, Kaz Mineral's zinc concentrate production was 9,300 tons, a 19.13% decrease quarter - on - quarter and a 11.43% decrease year - on - year, despite the highest quarterly throughput of ore [50]. 3.16 Market Outlook - The anticipation of a looser supply situation in the mining sector has materialized, and the TC continues to rise. The annual production guidance for major overseas zinc concentrate producers remains mostly unchanged, and the upward trend in annual zinc concentrate production is expected to continue. The TC for domestic and imported zinc concentrates has increased [50]. - Given the strong expectation of refinery复产 and the off - peak demand season, an inflection point in zinc ingot inventory may emerge. The zinc price is expected to be strong in the short - term and weak in the long - term [3][4].