Nexa Resources Reports Adjusted EBITDA Growth in Solid 2Q25 Performance

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]