Nexa Provides Update on Cerro Lindo Mine Operation

Rhea-AI Summary

Nexa Resources S.A. (NYSE:NEXA) has announced a suspension of operations at its Cerro Lindo mine due to severe flooding caused by heavy rainfall from Cyclone Yaku. The underground mine is partially flooded, impacting lower levels and road access, though production has not yet been affected for the month. Daily zinc production averages 233 tons. Nexa anticipates resuming operations in 10 to 12 days, depending on dewatering efforts and further rainfall. The potential impact on 2023 guidance is being evaluated. Nexa emphasizes its commitment to employee safety and will update the market as necessary.

Positive

• Daily zinc production of approximately 233 tons.
• Nexa expects to resume operations within 10 to 12 days.
• Commitment to employee and community safety.

Negative

• Cerro Lindo mine operations suspended due to severe flooding.
• Potential impact on 2023 guidance under review.

LUXEMBOURG / ACCESSWIRE / March 16, 2023 / Nexa Resources S.A. ("Nexa Resources" or "Nexa" or the "Company") (NYSE:NEXA) informs that production at the Cerro Lindo mine is suspended due to unusual heavy rainfall levels and overflowing rivers caused by Cyclone Yaku, which has been affecting the region, as well as other parts of the country.

Nexa's underground mine received more water than it could pump to the surface, partially flooding some lower levels of the mine. Road access was also compromised.

Nexa is closely monitoring and evaluating the situation as it develops and is taking all necessary precautions to ensure the safety of its employees, contractors and host communities.

On a daily basis, Cerro Lindo produces approximately 233t of zinc. Production has not yet been impacted month to date.

We expect to be able to resume production within the next ten to twelve days, subject to the dewatering process in the underground mine and the impact of rainfall on other areas of the operation. The potential impact on the 2023 guidance and its results are under review. Nexa reiterates its commitment to the health and safety of its employees and will keep the market informed of further developments.

About Nexa

Nexa is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is ramping up the Aripuanã mine as its sixth underground mine in Mato Grosso, Brazil. Nexa was among the top five producers of mined zinc globally in 2022 and one of the top five metallic zinc producers worldwide in 2022, according to Wood Mackenzie.

Cautionary Statement on Forward-Looking Statements

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this news release as "forward-looking statements"). Forward-looking statements contained in this news release may include, but are not limited to, zinc and other metal prices and exchange rate assumptions, projected operating and capital costs, metal or mineral recoveries, head grades, mine life, production rates, and returns; the Company's potential plans; the estimation of the tonnage, grade and content of deposits and the extent of the Mineral Resource and Mineral Reserve estimates; timing of commencement of production; exploration potential and results; the timing and receipt of necessary permits for future operations; the impacts of COVID-19 in our operations.

These statements are based on information currently available to the Company and the Company provides no assurance that actual results and future performance and achievements will meet or not differ from the expectations of management or qualified persons. All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental, or other risks that could materially affect the potential development of the Project, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally.

These forward-looking statements related to future events or future performance and include current estimates, predictions, forecasts, beliefs and statements as to management's expectations with respect to, but not limited to, the business and operations of the Company and mining production, our growth strategy, the impact of applicable laws and regulations, future zinc and other metal prices, smelting sales, capex, expenses related to exploration and project evaluation, estimation of Mineral Reserves and/or Mineral Resources, mine life and our financial liquidity.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable and appropriate by management and qualified persons considering their experience are inherently subject to significant uncertainties and contingencies and may prove to be incorrect. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, full integration of mining and smelting operations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labor disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, among other assumptions.

Estimates and forward-looking statements refer only to the date when they were made, and we do not undertake any obligation to update or revise any estimate or forward-looking statement due to new information, future events or otherwise, except as required by law. Estimates and forward-looking statements involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our public disclosures filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov).

For further information, please contact:

Roberta Varella - Head of Investor Relations
ir@nexaresouces.com
+55 11 3405-5601

SOURCE: Nexa Resources S.A.

View source version on accesswire.com:
https://www.accesswire.com/744295/Nexa-Provides-Update-on-Cerro-Lindo-Mine-Operation

FAQ

What caused the suspension of operations at Nexa's Cerro Lindo mine?

Operations at the Cerro Lindo mine were suspended due to severe flooding caused by heavy rainfall from Cyclone Yaku.

How much zinc does the Cerro Lindo mine produce daily?

The Cerro Lindo mine produces approximately 233 tons of zinc daily.

When does Nexa expect to resume operations at Cerro Lindo?

Nexa expects to resume operations at Cerro Lindo within 10 to 12 days, subject to dewatering efforts.

Is there an impact on Nexa's 2023 guidance due to the flooding?

Yes, the potential impact on Nexa's 2023 guidance is currently under review.

How is Nexa ensuring employee safety during the mine suspension?

Nexa is taking all necessary precautions to ensure the safety of its employees, contractors, and host communities.