Slide 1: Nexa Reports Fourth Quarter and Full Year 2022 Results
US$ million (except per share amounts) 4Q22 4Q21 2022 2021 Nexa Reports Fourth Quarter and Full Year 2022 Results including Adjusted EBITDA Record of US$760 Million Luxembourg, February 15, 2023 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or “Company”) announces today its results for the three
Slide 2: First shipment of concentrate from Aripuanã
First shipment of concentrate from Aripuan: Arrival of the first load of Zinc concentrate in Trés Marias First production of Juiz de Fora containing material from Aripuan First shipment of conc Aripuans Arrival of the first load of Zinc concentrate in Juiz de Fora ib i il produced in Juiz de Fora co
Slide 3: Adjusted EBITDA bridge 4Q21 to 4Q22
US$ million -22% prnennnnnnnnnnneneeneeny 49 10 a |Cl 153 oor 1 o serena ! _— —— 19 --4-- (26) oe one (14) = besseue ! —— (43) (16) (4) H { H H i H H I H H I ' H { 4Q21 Volume { Revenue Hedge {| FX — By-products Other Min. Exp./. Aripuand. GSF& Other 4Q22 Price effect H variable and Proj. Eval. othe
Slide 4: 2022 Adjusted EBITDA record of US$760 million
During 2022, Adjusted EBITDA was a record of US$760 million compared with US$744 million in the same period a year ago. The main factors that contributed to this performance were (i) higher zinc LME prices and changes in market prices that resulted in MTM adjustment; and (ii) higher by-products cont
Slide 5: Adjusted EBITDA reconciliation to net income
US$ million 4Q22 3Q22 4Q21 2022 2021 Adjusted EBITDA reconciliation to net income Adjusted EBITDA (1) 120.2 121.1 153.2 760.3 743.8 Fair value of offtake agreement (2) 7.7 7.8 0.0 24.3 0.0 Impairment loss of long-lived assets (32.8) 0.3 0.0 (32.5) 0.0
Slide 6: Cost of sales and mining segment Adjusted EBITDA
Cost of sales in 4Q22 was US$303 million, including US$75 million from Aripuanã with a higher unit cost (ramp up phase). Excluding the effect of Aripuanã, cost of sales totaled US$228 million compared to US$191 million in 4Q21 and US$193 million in 3Q22, mainly driven by increased maintenance. In 20
Slide 7: Mining Adjusted EBITDA compared to 3Q22
Compared to 3Q22, Adjusted EBITDA increased by 22%. This increase was mainly driven by (i) the changes in market prices that result in MTM adjustments and a positive net price effect of US$38 million; and (ii) higher by-products contribution of US$10 million; partially offset by (iii) higher operati
Slide 8: Mining segment Adjusted EBITDA 2022
In 2022, Adjusted EBITDA for the mining segment amounted to US$440 million compared to US$477 million in 2021. The positive variation related to the price effect of metal prices and changes in market prices that result in MTM adjustments of US$75 million and higher by-products contribution were offs
Slide 9: Consolidated cash cost and AISC
Consolidated cash cost 4Q22 3Q22 4Q21 4Q22 vs. 4Q21 2022 2021 2022 vs. 2021 Cash cost and AISC [5] , [6] Cash cost net of by-products US$/t 1,267 (18.1%) 34.1% AISC net of by-products US$/t 1,743 2,115 1,480 17.8% 1,598 1,236 29.3% Cash cost net of by-products US$/lb 0.20 0.57 0.25 (18.1%) 0.28 0.21
Slide 10: Zinc concentrate treatment charges
Zinc concentrate | treatment charges The smelters use zinc concentrate as feedstock, which is supplied from our mines and from third-party suppliers. In 4Q22, Nexa acquired 49% of zinc concentrate by our own mines, with the remainder supplied by third parties. Sources of Zinc Concentrate to Nexa Sme
Slide 11: Benchmark TC and smelting segment Adjusted EBITDA
In order to reduce volatility, for the majority of our third-party contracts, which are renewed during different periods throughout the year, we consider the 3-year benchmark TC. The reference benchmark for TC 2022, 2021 and 2020 is US$230/t concentrate, US$159/t concentrate, and US$300/t concentrat
Slide 12: Smelting Adjusted EBITDA compared to 3Q22
Compared to 3Q22, Adjusted EBITDA decreased by US$13 million, mainly driven by (i) the decrease in LME prices and changes in market prices that result in MTM adjustments with a negative impact of US$12 million; and (ii) the negative impact of US$16 million, related to environmental liabilities and h
Slide 13: Smelting segment Adjusted EBITDA 2022
During 2022, Adjusted EBITDA for our smelting segment totaled US$326 million, up 20% year-over-year. The positive price effect due to higher LME prices and changes in market prices in respect of quotation period adjustments of US$21 million and positive variation of by-products contribution of US$86
Slide 14: Smelting conversion cost, cash cost and AISC
Consolidated 4Q22 3Q22 4Q21 4Q22 vs. 4Q21 2022 2021 2022 vs. 2021 Conversion cost, Cash cost and AISC [7] Smelting conversion cost US$/t 8.4% 25.4% Cash cost net of by-products US$/t 2,650 3,007 2,831 (6.4%) 2,950 2,492 18.4% AISC net of by-products US$/t 2,879 3,230 3,114 (7.6%) 3,183 2,689 18.4% S
Slide 15: Balance sheet and liquidity
Nexa’s balance sheet remains solid, and liquidity remains strong. Cash and cash equivalents and financial investments (“total cash”) amounted to US$516 million at December 31, 2022, 4% lower compared to September 30, 2022, mainly driven by the continued investment over the quarter in excess of opera
Slide 16: Debt maturities and financial leverage
Only 3% (US$51 million) of the total debt matures in 2023, 12% (US$203 million) matures between 2024 and 2026, while 85% (US$1,415 million) of total debt matures in and after 2027. Financial leverage, measured by the ratio of net debt to Adjusted EBITDA of the last twelve months, increased to 1.53x