Nexa Resources S.a. · NYSE:NEXA
Nexa Resources — Q3 2021 Earnings Presentation
12 slides from Nexa Resources's earnings presentation, Oct 28, 2021
Slide 1: Nexa Reports Third Quarter and Nine-Month 2021 Results
Nexa Reports Third Quarter and Nine-Month 2021 Results including Adjusted EBITDA of US$568 Million Luxembourg, October 28, 2021 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or “Company”) announces today its results for the three and nine months ended September 30, 2021. This Earnings Release sho
Slide 2: Crushing Area / Concentrate Filtration/Thickening
Crushing Area BES oe Concentrate Filtration/Thickening
Slide 3: Adjusted EBITDA decreased 33% compared to 2Q21
Compared to 2Q21, Adjusted EBITDA decreased by 33%. The main factors that contributed to this performance, excluding the non-recurring factors mentioned above, were (i) lower by-products contribution (volumes and prices); and (ii) higher operating costs mainly driven by the aforementioned factors.
Slide 4: Adjusted EBITDA and net income table
Impairment 0.0 0.0 65.1 0.0 549.7 Deprec., amort. and depletion (68.5 ) (62.2 ) (61.4 ) (189.8 ) (181.1 ) Taxes on income (39.8 ) (80.6 ) 0.9 (135.4 ) 70.7 During 9M21, Adjusted EBITDA was US$568 million compared with US$236 million in the same period a year ago. US$ million 3Q21 2Q21 3Q20 9M21 9M20
Slide 5: Cost of sales increased by 31%
Cost of sales increased by 31% in 3Q21 compared to 3Q20, to US$191 million. This increase was primarily driven by higher operating costs related to maintenance and third-party services, which temporarily decreased last year due to COVID-19 mandatory measures, inflation, and mining development, parti
Slide 6: Mining segment Adjusted EBITDA in 3Q21
Adjusted EBITDA for the mining segment in 3Q21 was US$92 million compared to US$67 million in 3Q20. The increase was primarily due to (i) the positive variation related to higher zinc prices and lower TCs; and (ii) higher by-products contribution; which were partially offset by (iii) the increase in
Slide 7: Mining segment Adjusted EBITDA versus 2Q21
Compared to 2Q21, Adjusted EBITDA excluding the non-recurring effects aforementioned, decreased by 23%, mainly driven by (i) the negative price effect due to changes in market prices in respect of quotation period adjustments with an impact of US$24 million (final invoice adjustment variation of US$
Slide 8: Smelting cost of sales and zinc concentrate treatment charges
In 9M21, cost of sales totaled US$1,269 million, up 42% compared to 9M20, mainly driven by higher metal prices impacting the zinc concentrate purchase price, and higher operating costs due to the above-mentioned factors. Zinc concentrate | treatment charges The smelters use zinc concentrate as feeds
Slide 9: Smelting segment Adjusted EBITDA in 3Q21
Adjusted EBITDA for the smelting segment totaled US$65 million in 3Q21, compared to US$86 million reported in 3Q20. This decrease was mainly explained by (i) lower TCs with a negative variation of US$21 million; and (ii) higher operating costs, explained above; partially offset by (iii) the positive
Slide 10: Smelting Adjusted EBITDA versus 2Q21
Compared to 2Q21, Adjusted EBITDA decreased by 30% mainly driven by (i) lower by-products contribution due to the decrease in silver payable value and copper cement volume; (ii) higher operating costs such as maintenance and energy costs; and (iii) the increase in personnel costs. During 9M21, Adjus
Slide 11: Gross debt by category and currency
The following charts show Nexa’s gross debt by category and currency. Cash and cash equivalents and financial investments (“total cash”) amounted to US$807 million on September 30, 2021, 25% lower compared to June 30, 2021, mainly driven by the pre-payment of certain financial indebtedness and conti
Slide 12: Net debt and debt maturities
On September 30, 2021, Nexa’s net debt 11 was US$908 million compared with US$867 million at the end of 2Q21. Only 1.3% (US$22 million) of the total debt matures in 2021, 21.3% (US$361 million) matures between 2022 and 2026, while 77.4% (US$1,313 million) of total debt matures after 2027. Loans and