Slide 1: Nexa Reports First Quarter 2022 Results including Adjusted EBITDA of US$208 Million
US$ million (except per share amounts) 1Q22 1Q21 Nexa Reports First Quarter 2022 Results including Adjusted EBITDA of US$208 Million Luxembourg, April 28, 2022 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or “Company”) announces today its results for the three months ended March 31, 2022. CEO Me
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Slide 3: Administrative Buildings; Beneficiation Plant aerial view
Administrative Buildings Beneficiation Plant aerial view
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Slide 5: Fuel Station for Mine/Mobile Equipment; Workshop/Wheel Washer
Fuel Station for Mine/Mobile Equipment Workshop/Wheel Washer
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Slide 7: Beneficiation Plant Aerial View (with silo); Pastefill Area
Beneficiation Plant Aerial View (with silo) Pastefill Area
Slide 8: Adjusted EBITDA increased 53% compared to 4Q21
Compared to 4Q21, Adjusted EBITDA increased by 53%, the main factors that contributed to this performance were (i) the positive variation of US$62 million due to higher LME metal prices and the positive effect in hedge book difference, which had a negative impact in 4Q21 and was expected to be rever
Slide 9: Adjusted EBITDA reconciliation to net income (loss)
US$ million 1Q22 4Q21 1Q21 Adjusted EBITDA reconciliation to net income (loss) Adjusted EBITDA 208.5 136.2 180.0 Impairment | Miscellaneous adjustments 0.0 0.3 0.0 Fair value of financial instruments (1) (19.4) 0.0 0.0 EBITDA 189.0 136.5 180.0 Deprec., amort. and depletion (65.9) (68.9) (59.2) Net f
Slide 10: Cost of sales increased by 16%
Cost of sales increased by 16% in 1Q22 compared to 1Q21, to US$193 million. This increase was primarily driven by higher operating costs resulting from inflationary cost pressures in third-party services, consumables and logistics expenses, as well as increased maintenance between the periods. Compa
Slide 11: Adjusted EBITDA increased 16% compared to 4Q21
Compared to 4Q21, Adjusted EBITDA increased by 16%, mainly driven by (i) the positive variation related to higher zinc prices; (ii) the decrease in mineral exploration and project evaluation expenses; and (iii) reduced G&A expenses; which were partially offset by (iv) lower volumes and higher operat
Slide 12: Adjusted EBITDA variation bridge, 4Q21 to 1Q22
US$ million +16% 11 a =) i 110 31 1 3 (2) (> (33) 4Q21 Volume Price effect Te FX By-products Other variable Min. Exp./ Other ‘)) 1Q22 and fixed Proj. Eval. costs + G&A (1) Includes: Other income and expenses
Slide 13: 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 1Q22, Nexa acquired 43% of zinc concentrate from our own mines, with the remainder supplied by third parties. Sources of Zinc Concentrate to Nexa S
Slide 14: 3-year benchmark treatment charge
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 15: Adjusted EBITDA increased US$55 million compared to 4Q21
Compared to 4Q21, Adjusted EBITDA increased US$55 million, mainly driven by (i) the net positive price effect of US$17 million; (ii) the positive effect in hedge book difference, which had a negative impact in 4Q21 and was expected to be reversed as the stock position turned over, as mentioned in pr
Slide 16: Conversion cost, Cash cost and AISC
Consolidated 1Q22 4Q21 1Q21 1Q22 vs. 1Q21 1Q22 vs. 4Q21 Conversion cost, Cash cost and AISC 6 Smelting conversion cost US$/t 40.1% 10.7% Cash cost net of by-products US$/t 2,768 2,831 2,188 26.5% (2.2%) AISC net of by-products US$/t 2,968 3,114 2,320 27.9% (4.7%) Smelting conversion cost US$/lb 0.25
Slide 17: Cash and cash equivalents and financial investments
Cash and cash equivalents and financial investments (“total cash”) amounted to US$599 million at March 31, 2022, 22% lower compared to December 31, 2021, mainly driven by the early redemption of the outstanding 4.625% Notes 2023, and the continued investment over the quarter in excess of operating c
Slide 18: Loans and financings (gross debt)
Loans and financings (“gross debt”) Gross debt (US$1,704 million) minus cash and cash equivalents (US$576 million), minus financial investments (US$23 million), plus negative derivatives (US$3 million), plus Lease Liabilities (US$20 million). It does not include the financial instrument related to t