Nexa Resources S.a. · NYSE:NEXA
Nexa Resources — Q2 2021 Earnings Presentation
11 slides from Nexa Resources's earnings presentation, Jul 29, 2021
Slide 1: Nexa Reports Second Quarter 2021 Results
Nexa Reports Second Quarter 2021 Results including Adjusted EBITDA of US$233 Million Luxembourg, July 29, 2021 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or “Company”) announces today its results for the three and six months ended June 30, 2021. This Earnings Release should be read in conjunct
Slide 2: Administrative Building Grinding
Administrative Buildin Grinding
Slide 3: Adjusted EBITDA increased 29% compared to 1Q21
Compared to 1Q21, Adjusted EBITDA increased by 29%. The main factors that contributed to this performance were (i) the increase in volumes of US$14 million; (ii) the positive US$10 million net price effect related to higher zinc prices; and (iii) the increase in by-products contribution of US$32 mil
Slide 4: Adjusted EBITDA and net income
Impairment 0.0 0.0 0.0 Deprec., amort. and depletion (62.2 ) (59.2 ) (52.1 ) Taxes on income (80.6 ) (15.0 ) 9.9 During 1H21, Adjusted EBITDA was US$413 million compared with US$84 million in the same period a year ago driven mainly by the aforementioned factors. US$ million 2Q21 1Q21 2Q20 Adjusted
Slide 5: Adjusted EBITDA bridge 2Q20 to 2Q21
US$ million 42 15 _-----____..... “Va. 141 104 37) __.._..... — (1) 67) ao) (4) 27 3 apescenes 2Q20 Volume Price effect TE FX By-products Other Min. Exp./ Other 2Q21 variable and Proj. Eval. (1) fixed costs + G&A (1) Includes: Other income and expenses
Slide 6: Mining segment cash cost and AISC
Consolidated cash cost 2Q21 1Q21 2Q20 2Q21 vs. 2Q20 1H21 1H20 1H21 vs. 1H20 AISC net of by-products US$/t 1,012 1,219 1,094 (7.5 %) 1,111 1,439 (22.8 %) AISC net of by-products US$/lb 0.46 0.55 0.50 (7.5 %) 0.50 0.65 (22.8 %) During 1H21, adjusted EBITDA for the mining segment amounted to US$239 mil
Slide 7: Benchmark treatment charges
We apply a benchmark TC for our integrated mining and smelting operations. For purchases of zinc concentrate from third-party suppliers, the treatment charge is based on the benchmark TC, spot treatment charges or treatment charges negotiated annually. The 2021 benchmark TC, negotiated in early Apri
Slide 8: Smelting Adjusted EBITDA bridge 2Q20 to 2Q21
US$ million +136% 8 3B } ©«= yy 3 o (11) 10 39, 2Q20 Volume Price effect FX By-products Other variable Other @ 2Q21 and fixed costs + G&A (1) Includes: Other income and expenses and Project Evaluation
Slide 9: Smelting segment cash cost and AISC
Consolidated cash cost 2Q21 1Q21 2Q20 2Q21 vs. 2Q20 1H21 1H20 1H21 vs. 1H20 AISC net of by-products US$/t 2,514 2,323 1,680 49.6 % 2,421 1,807 34.0 % AISC net of by-products US$/lb 1.14 1.05 0.76 49.6 % 1.10 0.82 34.0 % During 1H21, Adjusted EBITDA for our smelting segment totaled US$176 million, up
Slide 10: Liquidity remained strong
Liquidity remained strong. Cash and cash equivalents and financial investments (“total cash”) amounted to US$1,076 million on June 30, 2021, 4% higher compared to March 31, 2021, mainly driven by the positive cash flow generation in the quarter. Total cash was sufficient to cover the payment of all
Slide 11: Debt maturities and financial leverage
Only 2.9% (US$56 million) of the total debt matures in 2021, 27.9% (US$535 million) matures between 2022 and 2026, while 69.1% (US$1,323 million) of total debt matures after 2027. Financial leverage, measured by the ratio of net debt to Adjusted EBITDA of the last twelve months, was 1.19x on June 30