Slide 1: Reports Fourth Quarter and Full Year 2023 Financial Results
US$ million (except per share amounts) 4Q23 3Q23 4Q22 2023 2022 Nexa Reports Fourth Quarter and Full Year 2023 Financial Results Full Year Net Loss of US$289 million and Adjusted EBITDA of US$391 million Luxembourg, February 21, 2024 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or the “Company”)
Slide 2: Adjusted EBITDA 4Q23 compared to 3Q23
Compared to 3Q23, Adjusted EBITDA increased by 28%. This increase was mainly driven by (i) the positive net price effect of US$22 million due to higher zinc prices and positive raw material inventory effect; (ii) the positive hedge effect of US$5 million; and (iii) higher by-products contribution of
Slide 3: Adjusted EBITDA 2023 compared with 2022
In 2023, Adjusted EBITDA was US$391 million compared with US$760 million in 2022, primarily driven by (i) lower LME metal prices with a negative impact of US$208 million; (ii) the negative impact in costs of US$90 million, mainly due to higher operational costs mainly in Aripuanã, related to concent
Slide 4: Net income (loss) reconciliation to Adjusted EBITDA
US$ million 4Q23 3Q23 4Q22 2023 2022 Net income (loss) reconciliation to Adjusted EBITDA Net Income (loss) (107.6) (63.4) (81.4) (289.2) 76.4 Depreciation, amortization and depletion 82.9 72.1 77.9 298.4 290.9 Share in the results of associates (6.1) (6.3) (1.9) (23.5) (1.9) Net financial results 31
Slide 5: Mining segment Adjusted EBITDA 4Q23
Adjusted EBITDA for the mining segment in 4Q23 was US$47 million compared to US$78 million in 4Q22. This decrease was primarily explained by (i) the negative net impact of US$59 million in costs, mainly related to Aripuanã’s cost of sales in the quarter as per the ramp-up phase; (ii) the negative ne
Slide 6: Mining segment Adjusted EBITDA vs 3Q23
Compared to 3Q23, Adjusted EBITDA increased by 17%. This performance was mainly driven by (i) the positive impact of US$21 million, mainly due to higher sales volumes in Aripuanã and Cerro Lindo; (ii) the positive net price effect of US$7 million due to higher zinc prices, which were partially offse
Slide 7: Mining segment Adjusted EBITDA 2023
In 2023, Adjusted EBITDA was US$149 million compared with US$440 million in 2022, this decrease was mainly driven by (i) negative net price effect of US$196 million, due to lower LME metal prices of US$230 million, partially offset by the positive effect of variation in MTM of US$19 million; (ii) hi
Slide 8: Mining cash cost and AISC
Consolidated cash cost 4Q23 3Q23 4Q22 4Q23 vs. 4Q22 2023 2022 2023 vs. 2022 Cash cost and AISC [7] , [8] Run-of-mine mining cost US$/t 48.0 43.6 46.6 2.9% 45.2 44.4 1.9% Cash cost net of by-products US$/t 120.4% 40.7% AISC net of by-products US$/t 2,157 1,712 1,743 23.8% 1,791 1,598 12.1% Cash cost
Slide 9: Sources of Zinc Concentrate to Nexa Smelters
Sources of Zinc Concentrate to Nexa Smelters (kt) – 4Q23 In 4Q23, Nexa acquired 53% of zinc concentrate from our own mines, with the remainder supplied by third parties. The smelters use zinc concentrate as feedstock, which is supplied from our mines, and we apply a benchmark TC for our operations.
Slide 10: Smelting segment Adjusted EBITDA vs 3Q23
Compared to 3Q23, Adjusted EBITDA increased by 20%, mainly driven by (i) the positive net price effect of US$17 million mainly due to higher zinc prices and positive raw material inventory effect (higher inventory consumption in addition to lower raw material costs); (ii) the positive hedge variatio
Slide 11: Smelting segment Adjusted EBITDA 2023
In 2023, Adjusted EBITDA was US$247 million compared with US$326 million in 2022, primarily driven by (i) lower by-products contribution of US$45 million, as a result of lower sulphuric acid prices; (ii) the negative impact of US$43 million in costs, mainly related to higher energy prices, freight,
Slide 12: Smelting conversion cost, cash cost and AISC
Consolidated 4Q23 3Q23 4Q22 4Q23 vs. 4Q22 2023 2022 2023 vs. 2022 Conversion cost, Cash cost and AISC [9] Smelting conversion cost US$/t 18.3% 16.8% Cash cost net of by-products US$/t 2,214 2,224 2,650 (16.5%) 2,415 2,950 (18.1%) [9] Our conversion cost, cash cost and AISC net of by-products credits
Slide 13: Cash and cash equivalents and financial investments
Cash and cash equivalents and financial investments (“total cash”) amounted to US$468 million on December 31, 2023, 11% higher compared to September 30, 2023, mainly due to positive operating cash flows and the new export financing line effective in the quarter. In December 2023, Nexa entered a 5-ye
Slide 14: Net debt and leverage
US$ million Dec 31, 2023 Sep 30, 2023 On December 31, 2023, Nexa’s net debt [11] was US$1,269 million compared with US$1,242 million at the end of 3Q23. As of December 31, 2023, Nexa was in compliance with all of its financial covenants. Net debt 1,269.1 1,242.4 LTM Adj. EBITDA 391.2 406.4 Net debt/