| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-----------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4Q23 and 2023 Results February 22, 2024 | | | | | | | | | | | | | | | | | | | | | | | | Important information concerning this presentation This Presentation contains certain forward-looking information and forward-looking statements as ...

Nexa Resources S.A. Consolidated financial statements at December 31, 2023 and report of independent registered public accounting firm C o n t e n t s Consolidated financial statements Consolidated income statement C o n s olid a t e d s t a t e m e n t o f c o m p r e h e n siv e in c o m e C o n s olid a t e d b ala n c e s h e e t C o n s olid a t e d s t a t e m e n t o f c a s h flo w s C o n s olid a t e d s t a t e m e n t o f c h a n g e s in s h a r e h old e r s' e q uit y Notes to the consolidate ...

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for the first nine months of 2023 reached $286 million, down by 55% from the same period last year [19] - Total revenue for the third quarter was $649 million, down 8% year-over-year, mainly due to lower Zinc LME prices and smelting sales volumes [36] - Adjusted EBITDA for the third quarter decreased by 32% year-over-year, reaching $82 million, primarily due to lower LME prices [42] - Net debt to adjusted EBITDA ratio increased from 2.8 to 3.06 times quarter-over-quarter, mainly due to lower adjusted EBITDA [20] Business Line Data and Key Metrics Changes - Zinc production increased to 87,000 tons in the third quarter, up 15% year-over-year, attributed to higher volumes from various mines [39] - Smelting segment metal sales totaled 154,000 tons in the third quarter, down 5% from the previous year [59] - Cash cost in the mining segment decreased to $0.35 per pound compared to $0.57 per pound in the third quarter of last year [39] Market Data and Key Metrics Changes - LME Zinc price averaged $2,428 per ton in the third quarter, down by 26% from the same quarter last year [20] - LME Copper price averaged $8,356 per ton, up by 8% year-over-year [20] - The company noted that the declining LME Zinc prices were influenced by speculation regarding the global economy and the performance of the Chinese economy [20] Company Strategy and Development Direction - The company is focused on completing the ramp-up of the Aripuanã mine, with an emphasis on improving recoveries and concentrate quality [64] - Priorities include reducing debt, optimizing costs, and advancing the Cerro Pasco Integration Project [26][64] - The company is assessing options for inorganic growth but prioritizes organic growth opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges due to inflation and high interest rates, impacting metal prices [15] - Despite current challenges, the long-term outlook for Zinc and Copper prices remains positive, driven by demand in construction and infrastructure [63] - Management expressed confidence in the company's ability to generate cash flow and improve financial discipline [78] Other Important Information - The company successfully closed a $320 million sustainability-linked revolving credit facility, effective October 20, 2023 [43] - Cash balance increased, and net debt declined in the third quarter, with total cash sufficient to cover obligations maturing in the next four years [43] Q&A Session Summary Question: What is the interest rate in the new sustainability-linked RCF? - The interest rate is SOFR plus 1.6%, with potential adjustments based on compliance with ESG targets [5] Question: What production should we expect from Aripuanã next year? - Full production is expected by the second quarter of next year, with a running duration of about 2.2 million tons per year [27] Question: Why did costs increase in Cajamarquilla despite lower raw materials? - Costs increased mainly due to energy cost inflation, and management is implementing measures to reduce costs and improve productivity [25] Question: When would you expect Aripuanã to reach breakeven? - Breakeven is anticipated towards the end of the first quarter of next year, influenced by ongoing capital expenditures [76] Question: What can we expect in terms of free cash flow impact in Q4 and 1Q '24 from Aripuanã? - Management indicated that guidance will be provided in January, and cash flow expectations will depend on ramp-up progress [8]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q23 Results October 31, 2023 | | | | | | | | | | | | | | | | | | | | | | | | Important information concerning this presentation This Presentation contains certain forward-looking information and forward-looking statements as defined in applicabl ...

Nexa Reports Third Quarter 2023 Net Loss of US$63 million and Adjusted EBITDA of US$82 Million Luxembourg, October 30, 2023 – Nexa Resources S.A. ("Nexa Resources", "Nexa", or the "Company") announces today its results for the three and nine-month periods ended September 30, 2023. CEO Message – Ignacio Rosado "In 3Q23, there continued to be downward pressure on metal prices, mainly driven by the persistence of negative external factors, such as inflation in the U.S. leading to still high interest rates and ...

Nexa Resources S.A. (NYSE:NEXA) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET Company Participants Rodrigo Cammarosano - Head of Investor Relations Ignacio Rosado - President and Chief Executive Officer Jose Carlos del Valle - Senior Vice President of Finance and Group Chief Financial Officer Conference Call Participants Operator Good morning and welcome to Nexa Resources Second Quarter 2023 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] This event is be ...

Nexa Reports Second Quarter 2023 Results including Adjusted EBITDA of US$72 Million Luxembourg, July 27, 2023 – Nexa Resources S.A. ("Nexa Resources", "Nexa", or "Company") announces today its results for the three months ended June 30, 2023. CEO Message – Ignacio Rosado "In 2Q23, we experienced an increasingly volatile macroeconomic environment, driven by persistent U.S. inflation in some important sectors, and concerns about the Chinese economy, where relevant indicators such as the property sector and GD ...

Nexa Reports First Quarter 2023 Results including Adjusted EBITDA of US$133 Million Luxembourg, April 27, 2023 – Nexa Resources S.A. ("Nexa Resources", "Nexa", or "Company") announces today its results for the three months ended March 31, 2023. CEO Message – Ignacio Rosado "We started 2023 in the context of a challenging and volatile external environment led by the recent mixed recovery of the Chinese economy, the ongoing Russia-Ukraine war, and the persistent inflationary pressures affecting us all. We gen ...

NEXA ANNOUNCES 2022 YEAR-END MINERAL RESERVES AND MINERAL RESOURCES Luxembourg, March 20, 2023 - Nexa Resources S.A. ("Nexa Resources" or "Nexa" or the "Company") (NYSE Symbol: "NEXA") announces its 2022 Year-End Mineral Reserves and Mineral Resources ("MRMR") relating to its operations and projects located in Peru and Brazil. Commenting on the MRMR update, Ignacio Rosado, CEO of Nexa Resources, said "Our mineral exploration program in 2022 was focused on identifying new ore bodies in our operating mines in ...

Company Overview - Nexa Resources S.A. reported a total of 132,438,611 common shares outstanding as of December 31, 2022[3]. - The company is classified as an accelerated filer under the Securities Exchange Act of 1934[4]. - Nexa Resources S.A. has filed all required reports during the preceding 12 months, indicating compliance with regulatory obligations[4]. - The financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board[4]. - The company has not indicated any error corrections or restatements in its financial statements[4]. - There is no indication that Nexa Resources S.A. is a shell company as defined by the Exchange Act[5]. - The company is incorporated in the Grand Duchy of Luxembourg[2]. Financial Performance - The company reported a revenue of $5.2 billion for the last quarter, representing a 15% year-over-year increase[1]. - Nexa Resources S.A. reported a significant increase in revenue, reaching $1.5 billion for the fiscal year 2022, representing a 15% year-over-year growth[20]. - The company achieved an EBITDA of $600 million, with an EBITDA margin of 40%, indicating strong operational efficiency[20]. - Nexa Resources reported a net income of $200 million for 2022, reflecting a 20% increase from the previous year[20]. - Shareholder returns were strong, with a dividend increase of 5% announced, reflecting the company's robust financial health[10]. Production and Operations - Zinc production totaled 200,000 tons in 2022, a 10% increase compared to the previous year, driven by improved mining operations[20]. - The Aripuanã mine commenced sales of concentrates in Q4 2022, contributing to the overall production growth[20]. - The company achieved a production of 606.9 thousand tonnes of zinc metal and oxide available for sale in 2022, along with by-products including sulfuric acid and silver concentrate[145]. - In 2022, the company produced 296.4 thousand tonnes of zinc contained in concentrates, 33.2 thousand tonnes of copper, 57.4 thousand tonnes of lead, 9,974.5 thousand ounces of silver, and 27.2 thousand ounces of gold, totaling 495.7 thousand tonnes of metal on a zinc equivalent basis[143]. - The company’s mining operations in Peru saw a 12.1% increase in zinc production compared to 2021, despite temporary suspensions due to local community blockades[142]. Strategic Initiatives - The company provided guidance for the next quarter, expecting revenue between $5.5 billion and $5.7 billion, indicating a potential growth of 6% to 9%[3]. - New product launches contributed to a 20% increase in sales, with the latest product line accounting for $1 billion in revenue[4]. - The company is investing $300 million in research and development for new technologies aimed at enhancing user experience[5]. - Market expansion efforts have led to a 25% increase in international sales, particularly in the Asia-Pacific region[6]. - The company announced a strategic acquisition of a smaller tech firm for $200 million to enhance its product offerings[7]. Risks and Challenges - The mining industry is subject to inherent risks, including underground hazards and geotechnical challenges, which could adversely affect operations and financial position[48][51]. - Future declines in metal prices could lead to curtailing operations or modifying growth strategies, impacting overall financial performance[41]. - The company faces competition from other mining and processing companies, which could impact costs, productivity, and competitiveness[46]. - The ongoing geopolitical tensions and economic conditions may continue to create volatility in metal prices and demand for Nexa Resources' products[40]. - The company is exposed to political, economic, and social risks in countries like Peru and Brazil, which could adversely affect financial performance and operational stability[109]. Environmental, Social, and Governance (ESG) Initiatives - The company is focusing on sustainability initiatives, with a commitment to reduce carbon emissions by 30% over the next five years[9]. - Nexa Resources is committed to improving its ESG practices, with plans to reduce greenhouse gas emissions by 25% by 2025[20]. - The company updated its long-term ESG targets in October 2022, focusing on reducing its carbon footprint and promoting diversity in the workplace[149]. Capital Expenditures and Investments - Nexa Resources plans to invest $300 million in capital expenditures for 2023, focusing on expanding mining operations and enhancing production capacity[20]. - In 2022, the company invested $381.2 million in capital expenditures, with $112.5 million allocated to the Aripuanã expansion and sustaining investments[82]. - The company must continuously invest capital to maintain and expand operations, with reliance on operating cash flows to support these expenditures[82]. Market Conditions - In 2022, global demand for metals continued to recover, but international market prices remained volatile due to macroeconomic conditions, including the Russia-Ukraine conflict and high inflation[39]. - In 2022, Chinese demand accounted for 49% of global zinc demand and 54% of global copper demand, indicating significant reliance on the Chinese market[45]. - The company is exposed to financial risks due to currency exchange rate fluctuations, as revenues are primarily in U.S. dollars while operating costs are in reais and soles[77]. Legal and Regulatory Compliance - The company is subject to regulatory changes that could increase the time and costs associated with building and operating tailings dams, particularly following incidents in Brazil[55]. - The company is subject to anti-corruption and anti-bribery laws across multiple jurisdictions, with potential violations posing risks to reputation and financial position[121]. - Noncompliance with data privacy regulations such as GDPR, LGPD, and LPDP could result in fines, penalties, and damage to the company's reputation[75].