Nexa Resources S.a. · NYSE:NEXA
Nexa Resources — Q1 2023 Earnings Presentation
12 slides from Nexa Resources's earnings presentation, Apr 27, 2023
Slide 1: Nexa Reports First Quarter 2023 Results including Adjusted EBITDA of US$133 Million
US$ million (except per share amounts) 1Q23 4Q22 1Q22 Nexa Reports First Quarter 2023 Results including Adjusted EBITDA of US$133 Million Luxembourg, April 27, 2023 – Nexa Resources S.A. (“Nexa Resources”, “Nexa”, or “Company”) announces today its results for the three months ended March 31, 2023. C
Slide 2: Compared to 4Q22, Adjusted EBITDA increased by 11%
Compared to 4Q22, Adjusted EBITDA increased by 11%. This increase is mainly explained by (i) the positive price effect of US$37 million related to changes in market prices resulting in positive quotation period adjustments; (ii) the positive effect of variation in mark-to-market “MTM” of inventories
Slide 3: Adjusted EBITDA bridge 4Q22 to 1Q23
US$ million +11% 7, 2 po | (1) 34 133 P2006 mmm oT 9 iit (6) |, — (30) (20) 4Q22 Volume Price effect Hedge FX By-products Other variable Min. Exp./ Other ‘Y) 1Q23 and fixed Proj. Eval. costs + G&A Price Effect (1) Includes: Other income and expenses
Slide 4: Cost of sales in 1Q23 and mining segment Adjusted EBITDA
Cost of sales in 1Q23 was US$243 million, including US$41 million from Aripuanã with a higher unit cost (ramp-up phase). Excluding the effect of Aripuanã, cost of sales totaled US$202 million compared to US$193 million in 1Q22 and US$228 million in 4Q22. Adjusted EBITDA for the mining segment in 1Q2
Slide 5: Compared to 4Q22, Adjusted EBITDA decreased by 47%
Compared to 4Q22, Adjusted EBITDA decreased by 47%. This decrease was mainly driven by (i) negative US$36 million related to lower sales volumes in Cerro Lindo due to the suspension of production at the mine for approximately two weeks in March 2023 due to heavy rainfall levels; (ii) lower by-produc
Slide 6: Consolidated cash cost and AISC
Consolidated cash cost 1Q23 4Q22 1Q22 1Q23 vs. 1Q22 1Q23 vs. 4Q22 Cash cost and AISC [6] , [7] Cash cost net of by-products US$/t 124.3% 111.7% AISC net of by-products US$/t 1,840 1,743 1,328 38.6% 5.6% Cash cost net of by-products US$/lb 0.43 0.20 0.19 124.3% 111.7% AISC net of by-products US$/lb 0
Slide 7: 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 1Q23, Nexa acquired 48% of zinc concentrate from our own mines, with the remainder supplied by third parties. Sources of Zinc Concentrate to Nexa S
Slide 8: Sources of zinc concentrate to Nexa smelters
Own mined 150kt Il 3rd parties Secondary 46% 5% |
Slide 9: Compared to 4Q22, Adjusted EBITDA increased by US$43 million
Compared to 4Q22, Adjusted EBITDA increased by US$43 million, mainly driven by (i) the positive price effect of US$37 million related to changes in market prices resulting in quotation period adjustments; (ii) positive effect of variation in mark-to-market “MTM” of inventories; and (iii) higher LME
Slide 10: Adjusted EBITDA bridge 4Q22 to 1Q23
US$ million 25 °° =. (21) ee (14) 46, 4Q22 Volume Revenue Cost Price Hedge FX By-products Other Other ‘) 1Q23 Price effect effect variable and fixed costs een n nn nnn nnn nnn nnn nnn nnn nnn nn + G&A Price Effect (1) Includes: Other income and expenses and Project Evaluation
Slide 11: Nexa's balance sheet remains solid, and liquidity remains strong
Nexa’s balance sheet remains solid, and liquidity remains strong. Cash and cash equivalents and financial investments (“total cash”) amounted to US$375 million on March 31, 2023, 27% lower compared to December 31, 2022, mainly driven by the continued investment over the quarter in excess of operatin
Slide 12: Only 3% of the total debt matures in 2023
Only 3% (US$44 million) of the total debt matures in 2023, 12% (US$206 million) matures between 2024 and 2026, while 85% (US$1,419 million) of the total debt matures in and after 2027. [9] Loans and financings (“gross debt”) [10] Gross debt (US$1,669 million) minus cash and cash equivalents (US$366