Chile rescuers find body of last trapped miner - five confirmed dead https://t.co/fBqSEhokTw ...

Nexa Resources (NEXA) Q2 2025 Earnings Call August 01, 2025 09:00 AM ET Company ParticipantsRodrigo Cammarosano - Head - Treasury & IRIgnacio Rosado - President & CEOJosé Carlos del Valle Castro - Group CFO & Senior VP of FinanceLeonardo Nunes Coelho - Senior Vice President of Mining OperationsConference Call ParticipantsLawson Winder - Director & Equity Research Analyst - Metals & MiningStefan Weskott - Sell-Side Equity Research AnalystOrest Wowkodaw - MD, Senior Research Analyst - Metals & MiningOperatorG ...

Financial Data and Key Metrics Changes - The company reported net revenues of $708 million, a 13% increase compared to the previous quarter, and adjusted EBITDA of $161 million, reflecting a 28% sequential increase driven by higher sales volumes and stronger byproduct prices [11][25][26] - Free cash flow improved to $17 million, supported by better working capital management [11][30] - The consolidated mining cash cost net of byproducts decreased to -$0.11 per pound, a significant improvement from $0.11 per pound in the previous quarter [14][15] Business Line Data and Key Metrics Changes - The mining segment produced 74,000 tonnes of zinc, up 9% quarter over quarter, with the smelting segment achieving total zinc sales of 145,000 tonnes, a 12% increase compared to the first quarter [11][16] - The smelting conversion cost stood at $0.39 per pound, up 19% quarter over quarter, primarily due to higher maintenance expenses [16][17] Market Data and Key Metrics Changes - Zinc prices averaged $2,641 per ton, marking a 7% decline both year over year and quarter over quarter, while copper prices averaged $9,524 per ton, down 2% year over year but up 2% quarter over quarter [34][37] - Silver prices increased by 17% both year over year and quarter over quarter, averaging $34 per ounce [38] Company Strategy and Development Direction - The company is focused on the Aripuana project, which is expected to unlock full production capacity with the installation of a fourth tailings filter scheduled for commissioning in 2026 [7][21] - The Cerro Del Pasco integration project is progressing well, with key milestones achieved, enhancing long-term sustainability and production capacity [22][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges in the first quarter but expressed confidence in the fundamentals of the Aripuana asset and the overall growth strategy [21][41] - The company remains optimistic about the medium to long-term outlook for zinc, driven by structural demand from sectors such as energy transition [36][42] Other Important Information - The company invested $137 million in CapEx during 2025, with a significant portion allocated to sustaining activities and the Cerro Pasco integration project [27][28] - The liquidity position remains healthy, with available liquidity of approximately $738 million, including a $320 million undrawn revolving credit facility [31][32] Q&A Session Summary Question: Can you confirm the guidance changes for several metals? - Management explained that the guidance was affected mainly by operational challenges at Aripuana and Vasante, which were not fully anticipated earlier in the year [49][50] Question: What are the geotechnical challenges at Vasante? - Management clarified that the challenges were due to a pillar constraint affecting production, but they are taking precautions to ensure safety and productivity [54][56] Question: Will exploration results be incorporated into year-end resources? - Management indicated that they expect to replace reserves mined this year and will highlight the potential for mineralized areas in future reports [59][63] Question: What is the timeline for the commissioning of the new filter at Aripuana? - Management confirmed that the commissioning is expected in March-April 2026, with no anticipated delays [66][76] Question: How will the company balance deleveraging, dividends, and capital expenditures? - Management stated that they aim to reduce gross debt while investing in mine life extensions, with a target leverage level around one time [71][72]

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Vancouver, British Columbia, July 29, 2025 (GLOBE NEWSWIRE) -- Not for distribution to U.S. newswire services or dissemination in the United States The gross proceeds from the CFT Shares issued under the Offering will be used prior to December 31, 2026 for exploration expenditures that will qualify as "Canadian exploration expenses" and "flow-through critical mineral mining expenditures" within the meaning of the Income Tax Act (Canada) (collectively, the "Qualifying Expenditures"). The Company will renounc ...

Group 1 - The macro market atmosphere remains neutral to bullish, with concerns about Powell's dismissal easing after Trump's visit to the Federal Reserve, leading to a recovery in market sentiment and a rise in U.S. Treasury yields [1][3] - Gold and silver prices experienced a decline, with COMEX gold down 0.51% and silver down 0.26%, while copper prices saw an increase of 3.99% on COMEX [2][22] - The copper market is closely monitoring the upcoming implementation of U.S. tariffs on imported copper, with market sentiment affected by rising Treasury yields and a rebound in the dollar [3][6] Group 2 - The precious metals market faced pressure as risk appetite increased, leading to a pullback in gold prices despite macroeconomic support for high price levels [4][54] - COMEX copper prices reached a historical high before retreating, indicating significant resistance above 80,000 CNY/ton, with domestic refined copper consumption showing signs of seasonal weakness [6][12] - The COMEX copper price curve remains in contango, with inventories nearing 250,000 tons, suggesting potential for further accumulation in U.S. copper stocks [7][8] Group 3 - The copper concentrate TC weekly index increased slightly, indicating a stable yet low activity in the spot market, with processing fees showing a slight recovery [9][12] - COMEX gold and silver inventories increased, with gold inventory rising to 37.76 million ounces and silver to approximately 50.03 million ounces [39][44] - The SPDR gold ETF holdings increased by 13 tons, indicating a continued preference for gold among investors [44]

Group 1 - BHP Group is a diversified mining company with global operations, primarily in Australia and South America, producing iron ore at the lowest cost among major companies, along with copper, nickel, met coal, and potash, providing a solid mix of commodities [1] - The company has a strong focus on metals and mining stocks, while also being comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Financial Highlights - Adjusted EBITDA increased by 3% to $722 million, reflecting higher profitability at Trail Operations and lower corporate overhead costs, partially offset by lower copper and zinc prices and higher operating costs at QB & Highland Valley[10, 28, 30] - Profit from continuing operations before taxes increased by 525% to $125 million[10, 28] - Adjusted diluted earnings per share from continuing operations increased by 217% to $038[10, 28] Production and Operations - Copper production guidance revised downwards for Quebrada Blanca (QB) from 230-270 thousand tonnes to 210-230 thousand tonnes, impacting total copper production guidance, which is revised to 470-525 thousand tonnes[21] - Molybdenum production guidance revised downwards for Quebrada Blanca from 30-45 thousand tonnes to 17-25 thousand tonnes, impacting total molybdenum production guidance, which is revised to 38-54 thousand tonnes[21] - Red Dog zinc sales above guidance, with significantly lower net cash unit costs[10] Capital Allocation and Growth - $22 billion of the $325 billion authorized share buyback program has been completed[10] - Sanctioned Highland Valley Copper Mine Life Extension (HVC MLE) project, extending mine life to 2046, with a project capital estimate of C$21-24 billion[10, 20] - Sustaining capital expenditures for copper increased by C$340 million, resulting in a revised total of C$940-1010 million[21] - Growth capital expenditures for copper increased by C$300-340 million, resulting in a revised total of C$1040-1170 million[22] Market Outlook - The company expects further policy support in China during Q3, with an expansion of consumer subsidies for goods and an acceleration of infrastructure projects, which should help underpin metals demand[83] - Copper market fundamentals indicate that investment in copper concentrate supply hasn't matched demand, and the company expects a more electricity-intensive phase of global growth in the coming years[89] - Zinc market fundamentals indicate that 2025 is set for mine supply growth after several lean years, and zinc projects struggle to compete for capital[91]

Business Overview and Strategy - Teck is focusing on metals essential for the energy transition, aiming to be a leading provider of responsibly-produced critical minerals[13, 15] - The company is balancing growth with cash returns to shareholders, focusing on core excellence, value-driven growth, and resilience[13, 15] - Teck's strategy revolves around four pillars: metals for the energy transition, core excellence, value-driven growth, and resilience[14, 15] Operational Performance and Outlook - Teck anticipates copper production to increase from 446kt in 2024 to between 470kt and 525kt in 2025[27] - The company projects a copper EBITDA margin expansion from 42% in 2024 to 52% in 2025[27] - The net cash unit cost for copper is expected to improve from $220 per pound in 2024 to between $190 and $205 per pound in 2025[27] - The company has revised its 2025 copper production guidance for Quebrada Blanca (QB) to between 210kt and 230kt, a decrease of 20kt to 40kt from the previous guidance[44] Capital Allocation and Shareholder Returns - Teck is committed to returning 30-100% of available cash flow to shareholders[19, 29] - Approximately $60 billion has been returned to shareholders since 2020, with ~$22 billion in authorized share buybacks completed from a $325 billion program (~70%)[29] - The company maintains a base dividend of $050 per share per year paid quarterly[20, 29] Growth Projects and Balance Sheet - The Highland Valley Mine Life Extension (HVC MLE) project is sanctioned, extending the mine life to 2046, with average copper production of 132ktpa over the life of mine[33, 34] - The project capital estimate at sanction for HVC MLE is between C$21 billion and C$24 billion[34] - Teck has a strong liquidity position of $48 billion as of July 23, 2025, and net debt of C$02 billion as of June 30, 2025[37]

Core Viewpoint - Teck Resources Limited has achieved significant growth in copper production and continues to return cash to shareholders through share buybacks, while focusing on disciplined, value-accretive growth strategies [2][5]. Financial Summary - Revenue for Q2 2025 was CAD$2,023 million, up from CAD$1,802 million in Q2 2024, representing an increase of 12.3% [4]. - Gross profit for Q2 2025 was CAD$471 million, compared to CAD$418 million in Q2 2024, reflecting a 12.7% increase [4]. - Adjusted EBITDA for Q2 2025 was CAD$722 million, slightly higher than CAD$703 million in the same period last year [5]. - Profit from continuing operations attributable to shareholders was CAD$206 million in Q2 2025, significantly up from CAD$21 million in Q2 2024 [5]. Copper Production and Business Updates - Copper production in Q2 2025 was 109,100 tonnes, with 52,700 tonnes coming from the Quebrada Blanca (QB) operation, remaining stable compared to the previous year [5]. - The Highland Valley Copper Mine Life Extension project has received Board sanction and regulatory approval, extending the mine's life from 2028 to 2046 with an average production of 132,000 tonnes of copper per year [5][10]. - The company has revised its 2025 annual copper production guidance to 470,000 to 525,000 tonnes from a previous estimate of 490,000 to 565,000 tonnes [15]. Shareholder Returns - Teck returned approximately CAD$1.0 billion to shareholders through share buybacks from January 1 to July 23, 2025, including CAD$487 million in Q2 2025 [5]. - The company has completed CAD$2.2 billion of its CAD$3.25 billion authorized share buyback program [5]. Cost and Guidance Updates - The net cash unit costs for copper have been revised to US$1.90–$2.05 per pound from US$1.65–$1.95 per pound due to lower production and increased costs [15]. - The 2025 annual growth capital expenditure guidance has been updated to CAD$1,040–$1,170 million, reflecting the impact of the Highland Valley Copper Mine Life Extension project [15]. Safety and Sustainability - Teck reported a low High-Potential Incident Frequency rate of 0.09 for the six months ended June 30, 2025, below the 2024 annual rate of 0.12 [16]. - The company was recognized as one of the Best 50 Corporate Citizens in Canada for the 19th consecutive year [16].