Nexa Resources S.A. (NEXA) announced that it agreed to sell the Pukaqaqa Project for $29.3 million (to be received in several installments). This move aligns with NEXA's ongoing portfolio optimization strategy to improve its free cash flow and returns. Over the past few years, NEXA has been reviewing its assets and optimizing its portfolio per its disciplined capital allocation plan. In 2022, it announced its decision not to move forward with Pukaqaqa following a close assessment of its portfolio. Details o ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|--------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2Q24 Results | | | | | | | | | | | | | Disclaimer Important information concerning this presentation This presentation, prepared by Nexa Resources S.A. (herein referred to as "Nexa Resources", "Nexa", or the "Company"), is solely for informational purposes. Disclosure of this presentation ...

Financial Data and Key Metrics Changes - Consolidated net revenues for Q2 2024 were $736 million, up 27% quarter-over-quarter and 17% year-over-year, driven by higher LME prices and increased smelting sales volume [3][15] - Adjusted EBITDA for Q2 2024 was $200 million, a 64% increase from the previous quarter and a 180% increase from $72 million in Q2 2023 [4][16] - The net leverage ratio improved to 2.72 times in Q2 2024 from 3.75 times in Q1 2024 and 2.83 times in Q2 2023 [4][21] Business Line Data and Key Metrics Changes - Zinc production reached 83,000 tons in Q2 2024, a 2% increase year-over-year but a 5% decrease quarter-over-quarter due to lower volumes from Peruvian mines and the cessation of Morro Agudo contributions [7] - Smelting segment metal sales totaled 148,000 tons in Q2 2024, down 1% year-over-year but up 7% from Q1 2024 [8] - Cash cost for mining decreased to $0.03 per pound in Q2 2024 from $0.37 per pound in Q2 2023, while smelting cash cost increased to $1.19 per pound from $1.12 per pound year-over-year [7][9] Market Data and Key Metrics Changes - The average LME zinc price in Q2 2024 was $2,833 per tonne, up 12% year-over-year and 16% quarter-over-quarter [22] - The average LME copper price was $9,753 per tonne in Q2 2024, reflecting a 15% increase year-over-year and 16% quarter-over-quarter [22] Company Strategy and Development Direction - The company is focused on optimizing its portfolio by divesting non-core assets, such as the Morro Agudo operation, to improve cash flow generation [6] - The Cerro Pasco integration project is advancing, with expectations for approval in the coming months, aimed at enhancing operational efficiency and extending mine life [5][14] - The company is committed to enhancing productivity and efficiency across operations while prioritizing safety and cash generation [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of zinc and copper markets, anticipating continued support for prices due to macroeconomic factors and tight concentrate markets [30][54] - The company aims to reduce gross debt while maintaining a disciplined approach to capital allocation, balancing investments in growth with shareholder returns [34][60] Other Important Information - The company reported a healthy liquidity position with approximately $794 million available at the end of Q2 2024, including an undrawn credit facility [19] - The company was recognized for sustainable practices by the Peruvian Stock Exchange, reflecting its commitment to ESG strategies [26] Q&A Session Summary Question: Thoughts on the zinc market with new production in Central Africa - Management is monitoring new production closely but believes it will not offset the current tight concentrate market, supporting positive zinc pricing [29] Question: Capital allocation decisions between Cerro Pasco expansion and debt repayment - The company plans to prioritize debt reduction while also considering dividends and investments in growth, particularly in the Cerro Pasco project [32][34] Question: CapEx expectations for next year - The company expects CapEx for 2025 to be similar to 2024, around $311 million, primarily for sustaining activities [50][52] Question: Plans for copper diversification - The company is exploring opportunities to increase copper in its portfolio, leveraging its competitive advantages in underground mining [54]

Nexa Resources S.A. (NEXA) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.15, delivering a surprise of -200%. Over the last four quarters, the compan ...

Financial Performance - Net revenues for Q2 2024 were US$736 million, a 17% increase from US$627 million in Q2 2023 and a 27% increase from US$580 million in Q1 2024[2]. - Adjusted EBITDA for Q2 2024 was US$200 million, up from US$72 million in Q2 2023 and US$123 million in Q1 2024, reflecting a year-over-year increase of 178%[5]. - The net loss for Q2 2024 was US$69 million, with a basic and diluted loss per share of US$0.58, compared to a net loss of US$103 million in Q2 2023[2]. - In 1H24, total net revenues amounted to US$1,316 million, up 2% year-over-year[23]. - The company reported a net loss of $102.8 million in Q2 2024, compared to a net loss of $15.4 million in Q1 2024[123]. - Adjusted EBITDA for Q2 2024 was $71.5 million, with an adjusted EBITDA margin of 11.4%[123]. - The company reported a gross profit of US$120.1 million in 2Q24, an increase of 852.4% from US$12.6 million in 2Q23[61]. - Adjusted EBITDA for the mining segment was US$132 million in 2Q24, up 561.9% from US$20 million in 2Q23, primarily due to higher LME metal prices and lower treatment charges (TCs)[63]. Production and Sales - Zinc production in Q2 2024 was 83kt, a 2% increase from Q2 2023, but a 5% decrease from Q1 2024 due to lower volumes from Peruvian mines[3]. - The smelting segment achieved total production of 152kt in Q2 2024, a 3% increase year-over-year and a 10% increase quarter-over-quarter[4]. - In 2Q24, Nexa's zinc production was 170 kt, with a guidance of 381 kt for the full year 2024[12]. - Zinc equivalent production totaled 159kt in Q2 2024, up 5% compared to Q2 2023, with average zinc head grades increasing by 27bps to 2.99%[32]. - Zinc production was 82.5kt in Q2 2024, a 2% increase from Q2 2023, while copper production rose by 12.6% to 9.7kt year-over-year[32]. - Zinc metal and oxide sales in 2Q24 totaled 148.0kt, down 0.6% from 2Q23, but up 7% compared to 1Q24[66]. - In 2Q24, zinc production totaled 12.1kt, down 13% from 2Q23, due to reduced treated ore volumes and lower zinc grades[39]. Costs and Expenses - The mining cash cost net of by-products decreased to US$0.03/lb in Q2 2024, down from US$0.37/lb in Q2 2023[3]. - Cost of sales in 2Q24 was US$557 million, down 1% year-over-year, primarily due to lower consumption of third-party concentrate in the smelting segment[24]. - In 2Q24, SG&A expenses were US$30 million, down 7% from 2Q23 and down 10% from 1Q24[26]. - The company reported a total COGS (Cost of Goods Sold) of $454.8 million for Q2 2024, with a breakdown of $127.0 million for Três Marias, $65.7 million for Juiz de Fora, and $262.1 million for Cajamarquilla[132]. - The All-in Sustaining Cash Cost (AISC) for mining operations was US$65.5 per ton in Q2 2024[128]. - Cash cost net of by-products decreased to US$(0.58)/lb in Q2 2024 from US$(0.13)/lb in Q2 2023, primarily due to higher by-products contribution[37]. Cash Flow and Liquidity - Total cash at June 30, 2024, was US$474 million, an increase from US$324 million at March 31, 2024[6]. - Free cash flow for Q2 2024 was positive US$149 million, influenced by a debenture issuance[6]. - Operating activities generated net cash flows of US$78 million in 2Q24, with cash provided by operating activities before working capital variations at US$133 million[101]. - The company is focused on maintaining liquidity and managing financial risks amid market uncertainties[120]. Debt and Financing - Nexa's consolidated gross debt reached US$1,854 million as of June 30, 2024, a 7% increase from US$1,733 million on March 31, 2024[98]. - Net debt decreased to US$1,387 million at the end of Q2 2024 from US$1,427 million at the end of Q1 2024[99]. - Nexa extended its debt maturity profile with a new bond offering of US$600 million and a debenture issuance of approximately US$130 million[98]. - The company accessed a R$200 million (approximately US$40 million) credit line from BNDES with an interest rate linked to ESG targets[98]. Market Conditions - The average LME prices for zinc, copper, and lead rose by 12%, 15%, and 2% respectively compared to the same period in 2023[23]. - The average LME zinc price was US$2,833/t, up 12.2% from 2Q23 and 16% from 1Q24[108]. - The U.S. Federal Reserve maintained interest rates, but analysts anticipate potential cuts in the second half of 2024, impacting base metal prices[108]. - Zinc demand in Latin America slightly increased in 2Q24, driven by a surge in Peru's export sector[108]. Environmental and Social Responsibility - The Environmental Impact Assessment for the Magistral Copper Project was rejected, prompting Nexa to reassess the project's feasibility[10]. - The company has trained over 600 local residents in technical fields since 2019, reflecting its commitment to local talent development[8]. - Nexa's first ESG-linked debenture issuance totaled R$650 million (approximately US$130 million) to improve liquidity and manage liabilities[8].

Wall Street expects a year-over-year increase in earnings on higher revenues when Nexa Resources S.A. (NEXA) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 1, 2024, might help the stock move higher if these key numbers are better th ...

Nexa Resources S.A. (NEXA) stated that it has closed the previously announced sale of the Morro Agudo Complex in Brazil's Minas Gerais state to Casa Verde Holding Ltda. The deal marks a step forward in the company's portfolio optimization journey. On Apr 5, 2024, Nexa announced that it inked a deal to divest its Morro Agudo Complex. The Morro Agudo Complex consists of the Morro Agudo mine and the Ambrósia mine. The Morro Agudo mine produced 23kt of zinc and 8.3kt of lead in 2023 at a sustaining cash cost of ...

Investors interested in Mining - Miscellaneous stocks are likely familiar with Nexa Resources S.A. (NEXA) and Wheaton Precious Metals Corp. (WPM) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnin ...

Nexa Resources S.A. (NYSE:NEXA) Q1 2024 Earnings Conference Call May 3, 2024 9:00 AM ET Company Participants Rodrigo Cammarosano - Head-IR Ignacio Rosado - CEO Jose Carlos del Valle - CFO Conference Call Participants Camilla Border - Bradesco BBI Carlos de Alba - Morgan Stanley Lawson Winder - Bank of America Operator Good morning and welcome to Nexa Resources First Quarter 2024 Conference Call. [Operator Instructions] This event is being recorded and is also being broadcast via webcast and may be accessed ...

Nexa Reports First Quarter 2024 Results including Net Loss of US$11 million and Adjusted EBITDA of US$123 million Luxembourg, May 2, 2024 – Nexa Resources S.A. ("Nexa Resources", "Nexa", or the "Company") announces today its results for the three-month period ended March 31, 2024. CEO Message – Ignacio Rosado We began the year on a positive note, with solid operating performance in the first quarter, thanks to the commitment of our teams in reinforcing our operational strategies, enhancing our capabilities, ...