Nexa Resources Reports Strong 2024 Results with a 76% Increase in Annual Adjusted EBITDA

Core Viewpoint - Nexa Resources reported a strong financial performance in 2024, with a 76% increase in Adjusted EBITDA to US$714 million, driven by higher by-products contribution, stronger zinc prices, favorable foreign exchange variations, and reduced expenses [3][10]. Financial Performance - Adjusted EBITDA for 4Q24 rose to US$197 million, up from US$110 million in 4Q23, supported by increased metal sales volumes and foreign exchange gains [4]. - Net revenues for 2024 totaled US$2,766 million, an 8% increase from the previous year, with 4Q24 net revenues reaching US$741 million, up 18$187 million, a 36% reduction from the US$292 million loss in 2023, mainly due to higher operating income [7]. - Total CAPEX for 2024 was US$277 million, below the revised guidance of US$300 million, with nearly all investments directed toward sustaining expenditures [8]. Operational Performance - Zinc production for 2024 totaled 327kt, a 2% decrease from 333kt in 2023, primarily due to lower output at several mines [11]. - Copper production in 2024 reached 36kt, a 7% increase from 33kt in 2023, exceeding the upper end of the annual guidance [13]. - Lead production closed the year at 69kt, up from 65kt in 2023, while silver production totaled 12 million ounces, up from 10 million ounces in 2023 [14]. Growth Strategy and Asset Portfolio - Nexa advanced its portfolio optimization strategy in 2024, focusing on higher-return assets and disciplined capital allocation, including strategic divestments [18][19]. - The company approved the first phase of the Cerro Pasco Integration Project, aimed at extending the life of the mine and improving profitability [20]. - In December 2024, Nexa increased its ownership in Tinka Resources to approximately 19.86%, which holds the Ayawilca zinc-silver project [21]. ESG Initiatives - Safety remains a top priority for Nexa, with robust measures implemented to enhance accident prevention and protect the well-being of its workforce [23]. - Nexa advanced several ESG-related initiatives in 4Q24, including the commercialization of jarosite residue and the installation of Hydragen™ technology at the Vazante mine [25]. - The company was recognized as the Americas winner of the Gartner Eye on Innovation Awards for its application of Digital Twin technology at the Cerro Lindo mine [25]. Credit Ratings and Financial Policies - S&P and Fitch reaffirmed Nexa's 'BBB-' investment grade rating with a 'stable' outlook in 2024, while S&P assigned a 'brAAA' rating to its Brazilian subsidiary [26]. - A new dividend policy was announced to provide greater transparency and consistent shareholder returns while maintaining financial flexibility [26].