Nexa Resources S.a. · NYSE:NEXA
Nexa Resources — Q3 2023 Earnings Presentation
11 slides from Nexa Resources's earnings presentation, Oct 30, 2023
Slide 1: Nexa Reports Third Quarter 2023 Net Loss and Adjusted EBITDA
US$ million (except per share amounts) 3Q23 2Q23 3Q22 9M23 9M22 Nexa Reports Third Quarter 2023 Net Loss of US$63 million and Adjusted EBITDA of US$82 Million Luxembourg, October 30, 2023 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or the “Company”) announces today its results for the three and
Slide 2: Adjusted EBITDA increase compared to 2Q23
Compared to 2Q23, Adjusted EBITDA increased by 14%. This increase was mainly driven by (i) the positive net impact of US$41 million, mainly due to the effect of lower ore stockpile in Aripuanã, lower costs on raw material consumption in Brazil, lower freight and sales expenses in Cajamarquilla, and
Slide 3: Net income (loss) reconciliation to Adjusted EBITDA
US$ million 3Q23 2Q23 3Q22 9M23 9M22 During 9M23, Adjusted EBITDA was US$286 million compared with US$640 million in the same period a year ago, primarily driven by lower LME metal prices with a negative impact of US$307 million and higher operational costs mainly in Aripuanã, related to concentrate
Slide 4: Mining segment Adjusted EBITDA
Adjusted EBITDA for the mining segment in 3Q23 was US$40 million compared to US$64 million in 3Q22. This decrease was primarily explained by (i) the negative net impact of US$38 million, mainly related to Aripuanã’s cost of sales in the quarter and higher maintenance costs in Brazil and Peru; (ii) t
Slide 5: Mining Adjusted EBITDA compared to 2Q23
Compared to 2Q23, Adjusted EBITDA increased by 103%. This performance was mainly driven by (i) the positive impact of US$13 million due to higher volumes related to higher treated ore and the access to higher grade areas in Cerro Lindo; (ii) the positive impact of US$15 million due to lower operatio
Slide 6: Consolidated cash cost 3Q23 vs. 9M23 vs. 9M22
Consolidated cash cost 3Q23 2Q23 3Q22 3Q23 vs. 3Q22 9M23 9M22 9M23 vs. 9M22 Cash cost and AISC 7 , 8 Run-of-mine mining cost US$/t 43.6 43.9 43.2 1.0% 44.2 43.6 1.4% Cash cost net of by-products US$/t 1,267 (39.3%) 23.0% AISC net of by-products US$/t 1,712 1,423 2,115 (19.1%) 1,657 1,551 6.8% Cash c
Slide 7: Zinc cost of sales
US$ million Zine (Currant period concentrate purchase 223.0 Price adjustments (MTM) 17.6 240.6 Final adjustments (33.6) Other Variable and Fixed Cost 195.5 Energy 6) Depreciation 20.0 Total Cost of sales 4338.9 3Q23 2Q23
Slide 8: Smelting Adjusted EBITDA compared to 2Q23
Compared to 2Q23, Adjusted EBITDA decreased by 4%, mainly driven by (i) the negative hedge variation of US$19 million; (ii) lower by-products contribution of US$2 million due to lower copper cement sales; and (iii) the negative net price effect of US$1 million due to lower LME metal prices, partiall
Slide 9: Smelting conversion cost, cash cost and AISC
Consolidated 3Q23 2Q23 3Q22 3Q23 vs. 3Q22 9M23 9M22 9M23 vs. 9M22 Conversion cost, Cash cost and AISC 9 Smelting conversion cost US$/t 14.0% 15.6% Cash cost net of by-products US$/t 2,224 2,474 3,007 (26.0%) 2,481 3,065 (19.1%) AISC net of by-products US$/t 2,410 2,721 3,230 (25.4%) 2,678 3,298 (18.
Slide 10: Cash and cash equivalents and financial investments
Cash and cash equivalents and financial investments (“total cash”) amounted to US$422 million on September 30, 2023, relatively flat compared to June 30, 2023, mainly due to positive operating cash flows in the quarter, which was offset by net sales of financial investments. Total cash at the end of
Slide 11: Net debt and leverage
US$ million Sep 30, 2023 Jun 30, 2023 On September 30, 2023, Nexa’s net debt [11] was US$1,242 million compared with US$1,262 million at the end of 2Q23. As of September 30, 2023, Nexa was in compliance with all of its financial covenants. Net debt 1,242.4 1,262.2 LTM Adj. EBITDA 406.4 445.7 Net deb