Nexa Achieves 2024 Production and Costs Guidance, Exceeds Copper Production, and Provides 2025-2027 Outlook

Core Viewpoint - Nexa Resources has successfully achieved its 2024 production and cost guidance, with copper production exceeding expectations and a detailed outlook provided for 2025-2027 [1][2]. Production and Sales - Consolidated mining production guidance was met, with zinc, lead, and silver production aligning with annual targets, while copper production reached 36kt, surpassing the upper guidance range [2][4]. - Zinc production totaled 327kt, with Cerro Lindo, El Porvenir, Vazante, and Aripuanã mines achieving their respective production targets [2][4]. - Metal sales reached 591kt, driven by increased production at Cajamarquilla and Juiz de Fora smelters, supported by operational stability and enhanced logistics [5][6]. - Zinc metal sales were 557kt, while zinc oxide sales totaled 35kt, reflecting reduced demand in the pneumatic segment [6][7]. Cost Management - Consolidated run-of-mine mining costs were successfully managed, with cash costs reduced by 65% in October 2024, attributed to operational efficiencies and effective cost management [2][12]. - Smelting conversion costs and cash costs were achieved due to lower operational costs and higher throughput at Cajamarquilla [12][40]. - CAPEX and other operating expenses were significantly below the revised guidance, highlighting the company's commitment to financial discipline [2][3]. Future Guidance (2025-2027) - Zinc production is projected to slightly increase in 2025, with further growth expected in 2026 and 2027, primarily from Aripuanã and El Porvenir [22][24]. - Copper production is anticipated to decline by 10% in 2025, with a slight recovery expected in 2027 [22][28]. - Lead and silver production are forecasted to decrease slightly in 2025, with expectations of stability in subsequent years [22][26]. - Total metal sales are expected to decrease by 3% in 2025, with a projected increase in 2026 [23][30]. Financial Overview - For 2025, CAPEX guidance is set at US$347 million, with a significant portion allocated to sustaining investments [44][45]. - Exploration investments are planned at US$70 million, focusing on mineral exploration and project evaluation [51][52]. - The company aims to enhance operational efficiency through technology investments and community support initiatives [53][54].