Nexa Resources Reports Solid Operational Performance and Financial Results in 2Q24
Nexa Resources reported strong financial results for 2Q24, with Adjusted EBITDA reaching US$ 200 million, up 64% quarter-over-quarter and 180% year-over-year. Net revenues increased to US$ 736 million, driven by higher LME metal prices and increased sales volumes. The company achieved free cash flow of US$ 149 million, partly due to the issuance of an ESG-Linked debenture. Operationally, zinc production totaled 83,000 tons, up 2% year-over-year, while copper production reached 10,000 tons, up 13% from 2Q23. Nexa continues to focus on operational efficiency, portfolio optimization, and ESG initiatives, including safety improvements and community support programs.
Nexa Resources ha riportato risultati finanziari solidi per il 2Q24, con un EBITDA rettificato che ha raggiunto 200 milioni di dollari statunitensi, in aumento del 64% rispetto al trimestre precedente e del 180% su base annua. I ricavi netti sono aumentati a 736 milioni di dollari statunitensi, grazie ai prezzi più elevati dei metalli LME e all'aumento dei volumi di vendita. L'azienda ha ottenuto un free cash flow di 149 milioni di dollari statunitensi, in parte grazie all'emissione di un'obbligazione collegata a ESG. A livello operativo, la produzione di zinco ha totalizzato 83.000 tonnellate, con un aumento del 2% rispetto all'anno precedente, mentre la produzione di rame ha raggiunto 10.000 tonnellate, con un incremento del 13% rispetto al 2Q23. Nexa continua a concentrarsi sull'efficienza operativa, l'ottimizzazione del portafoglio e le iniziative ESG, inclusi miglioramenti della sicurezza e programmi di supporto alla comunità.
Nexa Resources reportó resultados financieros sólidos para el 2T24, con un EBITDA ajustado alcanzando 200 millones de dólares estadounidenses, un aumento del 64% en comparación con el trimestre anterior y del 180% en términos interanuales. Los ingresos netos aumentaron a 736 millones de dólares estadounidenses, impulsados por los precios más altos de metales en LME y un incremento en los volúmenes de ventas. La empresa logró un flujo de caja libre de 149 millones de dólares estadounidenses, en parte debido a la emisión de un bono vinculado a ESG. A nivel operativo, la producción de zinc totalizó 83,000 toneladas, un incremento del 2% en comparación con el año anterior, mientras que la producción de cobre alcanzó 10,000 toneladas, un aumento del 13% con respecto al 2T23. Nexa sigue enfocándose en la eficiencia operativa, la optimización de la cartera y las iniciativas ESG, incluyendo mejoras en seguridad y programas de apoyo a la comunidad.
Nexa Resources는 2분기 2024년 강력한 재무 결과를 보고했습니다. 조정된 EBITDA는 2억 달러에 도달했으며, 이전 분기 대비 64% 상승하고, 전년 대비 180% 증가했습니다. 순매출은 7억 3600만 달러로 증가했으며, 이는 LME 금속 가격 상승과 판매량 증가에 힘입은 것입니다. 회사는 1억 4900만 달러의 자유 현금 흐름을 달성했으며, 이는 ESG 연계 채권 발행 덕분이기도 합니다. 운영 측면에서 아연 생산량은 8만 3000톤에 달하며, 전년 대비 2% 상승했으며, 구리 생산량은 1만 톤에 이르러 2분기 2023년 대비 13% 증가했습니다. Nexa는 운영 효율성, 포트폴리오 최적화, 안전 개선 및 지역 사회 지원 프로그램을 포함한 ESG 이니셔티브에 계속해서 주력하고 있습니다.
Nexa Resources a annoncé des résultats financiers solides pour le 2T24, avec un EBITDA ajusté atteignant 200 millions de dollars américains, en hausse de 64 % par rapport au trimestre précédent et de 180 % par rapport à l'année précédente. Les revenus nets ont augmenté à 736 millions de dollars américains, soutenus par des prix plus élevés des métaux LME et une augmentation des volumes de vente. L'entreprise a réalisé un flux de trésorerie disponible de 149 millions de dollars américains, en partie grâce à l'émission d'une obligation liée à l'ESG. Sur le plan opérationnel, la production de zinc a totalisé 83 000 tonnes, soit une augmentation de 2 % par rapport à l'année précédente, tandis que la production de cuivre a atteint 10 000 tonnes, en hausse de 13 % par rapport au 2T23. Nexa continue de se concentrer sur l'efficacité opérationnelle, l'optimisation du portefeuille et les initiatives ESG, y compris les améliorations en matière de sécurité et les programmes de soutien aux communautés.
Nexa Resources hat starke finanzielle Ergebnisse für das 2. Quartal 2024 berichtet, mit einem bereinigten EBITDA von 200 Millionen US-Dollar, was einer Steigerung von 64% im Vergleich zum Vorquartal und 180% im Vergleich zum Vorjahr entspricht. Die Nettoerlöse stiegen auf 736 Millionen US-Dollar, angetrieben durch höhere LME-Metallpreise und gestiegene Verkaufsvolumina. Das Unternehmen erreichte einen freien Cashflow von 149 Millionen US-Dollar, teilweise aufgrund der Emission einer ESG-gebundenen Anleihe. Operativ betrug die Zinkproduktion insgesamt 83.000 Tonnen, was einem Anstieg von 2% im Vergleich zum Vorjahr entspricht, während die Kupferproduktion 10.000 Tonnen erreichte, was einem Anstieg von 13% im Vergleich zum 2. Quartal 2023 entspricht. Nexa konzentriert sich weiterhin auf operative Effizienz, Portfoliooptimierung und ESG-Initiativen, einschließlich Verbesserungen der Sicherheit und Programme zur Unterstützung der Gemeinschaft.
- Adjusted EBITDA increased by 64% quarter-over-quarter and 180% year-over-year to US$ 200 million
- Net revenues rose to US$ 736 million, up from US$ 627 million in 2Q23 and US$ 580 million in 1Q24
- Free cash flow of US$ 149 million achieved in 2Q24
- Zinc production increased by 2% year-over-year to 83,000 tons
- Copper production up 13% year-over-year and 30% quarter-over-quarter to 10,000 tons
- Zinc metal and oxide production in the smelting segment increased by 3% year-over-year and 10% quarter-over-quarter to 152,000 tons
- Net loss of US$ 69 million in 2Q24, compared to US$ 11 million in 1Q24
- 5% quarter-over-quarter decrease in zinc production
- Divestment of Morro Agudo Complex, potentially impacting future production
Insights
Nexa Resources' Q2 2024 financial results demonstrate a significant improvement in the company's performance. The
The company's net revenues also saw a substantial rise, reaching
The free cash flow of
Investors should closely monitor Nexa's ongoing efforts to improve cash generation and extend mine life, as well as the development of the Cerro Pasco Integration Project, which could potentially unlock significant value for the company. The divestment of non-core assets, such as the Morro Agudo Complex and the potential sale of Minera Pampa de Cobre S.A.C, aligns with the company's portfolio optimization strategy and could lead to improved returns in the long run.
Nexa Resources' operational performance in Q2 2024 shows resilience and adaptability in a dynamic market environment. The
Notably, copper production saw a significant boost, increasing
The smelting segment's performance is particularly impressive, with zinc metal and oxide production reaching 152,000 tons, up
The progress on the Cerro Pasco Integration Project is a key development to watch. If approved, this project could significantly impact Nexa's future production capabilities and overall value. Additionally, the company's focus on extending mine life and improving cash generation through portfolio optimization and efficient capital allocation demonstrates a forward-thinking approach to sustainable growth in the mining sector.
Investors should pay attention to Nexa's ability to maintain production levels while divesting non-core assets, as this balance will be important for the company's long-term success in the volatile metals market.
Nexa Resources' Q2 2024 results highlight a strong commitment to ESG principles, which is increasingly important for investors and stakeholders in the mining sector. The successful issuance of an ESG-Linked debenture amounting to approximately
The implementation of a structured 30-day, 90-day and 180-day safety plan underscores Nexa's dedication to employee well-being and operational safety. This proactive approach to risk management could help mitigate potential safety-related incidents and associated costs.
Nexa's circular economy initiatives, such as the commercial sale of waste material from the Três Marias smelter, showcase innovative approaches to waste management and potential new revenue streams. This aligns with growing investor interest in companies that can turn environmental challenges into business opportunities.
The company's community engagement efforts, including educational support and partnerships with local universities, contribute to its social license to operate. These initiatives, along with technology training programs and agricultural support projects, demonstrate a holistic approach to sustainable development in the regions where Nexa operates.
Nexa's inclusion in the S&P/BVL Peru General ESG Index for the third consecutive year validates its ESG performance and could attract ESG-focused investors. However, investors should continue to monitor Nexa's progress on its ESG commitments, particularly in areas such as emissions reduction and water management, which are critical issues in the mining industry.
Overall, Nexa's ESG initiatives appear to be well-integrated into its business strategy, potentially enhancing long-term value creation and risk mitigation.
Adjusted EBITDA reached US
$ 200 million , up by64% quarter-over-quarter and180% year-over-year, mainly due to higher sales volume, higher zinc prices, improved margins at Aripuanã and higher by-products contribution.Net revenues increased to US
$ 736 million from US$ 627 million in 2Q23 and US$ 580 million in 1Q24, driven by higher LME metal prices in both cases, increased mining sales volume year-over-year, and increased smelting sales volume quarter-over-quarter.
LUXEMBOURG / ACCESSWIRE / August 1, 2024 / Nexa Resources, one of the world's leading zinc producers, achieved solid financial performance in 2Q24. Adjusted EBITDA reached US
Additionally, net revenues for the quarter increased to US
Moreover, Nexa reported free cash flow of US
In 2Q24, the net loss was US
"We are pleased to report a favorable second quarter of 2024, highlighting our continued operational efficiency, increased production, improved margins at our Aripuanã mine, and disciplined capital allocation supported by higher zinc prices. Our ability to adapt to market dynamics has led to enhanced execution across our operations," said Ignacio Rosado, CEO of Nexa Resources.
During 2Q24, Nexa's investments in sustaining CAPEX totaled US
Operational Performance
In 2Q24, Nexa's zinc production totaled 83,000 tons, representing a
Furthermore, copper production reached 10,000 tons, up by
In the smelting segment, zinc metal and oxide production totaled 152,000 tons in 2Q24, up by
"We remain confident in the long-term fundamentals of our industry, and we are prepared to capitalize on new opportunities in our operations, always striving to create shared value for all our stakeholders and the communities in which we operate," added Mr. Rosado.
Growth strategy and asset portfolio
In 2Q24, Nexa made significant progress on the main work fronts of the Cerro Pasco Integration Project. Support activities, including technical reviews and environmental studies and permits, are also advancing as expected. This project has the potential to unlock significant value for the Company and is anticipated to be submitted for final approval to our Board in the upcoming months.
Additionally, in line with Nexa's review of its assets, portfolio optimization, and efficient capital allocation, the Company initiated a structured process to sell its non-operational Peruvian subsidiary, Minera Pampa de Cobre S.A.C (owner of the Chapi mine asset) and the greenfield project Pukaqaqa.
"We will maintain focus on our priorities, including the improvement of Aripuanã's performance, the development of the Cerro Pasco Integration Project, delivering on guidance, extending the life of our mines, and consistently improving our cash generation," said Mr. Rosado.
ESG Update
In early May, Nexa implemented key initiatives to boost safety practices, reinforce leadership oversight, and reduce risk exposure as part of a structured 30-day, 90-day, and 180-day safety plan. This plan aims to further improve the solid safety system already in place. "At Nexa, the safety of our people and operations remains our topmost priority. We are committed to ensuring safe operations in our facilities and continue to invest in strengthening the organization-wide safety framework," stated Mr. Rosado.
In terms of Nexa's ESG strategy, the 2Q24 was also marked by several key initiatives:
As part of Nexa's circular economy initiatives, the Company completed its first commercial sale transaction involving 26.4 tons of waste material (manganese dioxide - MnO2) from the Três Marias smelter. This project aims to sell significant amounts of waste from its smelters by developing partnerships and evaluating viable technologies and trade routes for these materials.
Nexa signed a three-year collaboration agreement with the National University Daniel Alcides Carrión ("UNDAC") in Pasco, Peru. The partnership aims to foster the exchange of scientific and technological knowledge in the mining sector, enhance professional training, develop innovative technological solutions, and establish a startup incubator for social impact.
Nexa provided school supplies to nearly 13,000 students from communities near its operations and greenfield projects in Peru. This initiative, part of the annual School Supplies Campaign, in line with the UN's Sustainable Development Goals ("SDGs") by aiming to alleviate the economic burden on families by supporting children's education.
Nexa renewed its partnership with Amazon Web Services for the second edition of the "Talento na Nuvem" (Talent in the Cloud) program in Brazil, offering 40,000 scholarships. The program focuses on generative AI and cloud solution architecture, aiming to equip professionals from various fields with valuable technological skills. This initiative is part of the partnership announced in 2Q23, intended to train 100,000 individuals in technology in Brazil and Peru by 2025.
Nexa, in collaboration with the Brazilian Agricultural Research Corporation ("Embrapa") and the Brazilian Micro and Small Business Support Service ("Sebrae") partnered to expand the Rural Practices Project in Vazante, Brazil. This initiative aims to enhance the income of 40 selected farmers by introducing new agricultural techniques and market strategies.
Nexa Peru was recognized for the third consecutive year as one of the 16 leading companies in sustainable practices by the S&P/BVL Peru General ESG Index for the 2024-2025 period. This recognition reflects Nexa's ongoing commitment to integrating ESG strategies into its operations and advancing responsible mining practices.
In June 2024, at the Annual General Meeting, Mr. Paulo Macedo was elected as a director of the Company for a term starting on June 13, 2024, and ending at the 2026 Annual General Meeting of the shareholders. Mr. Macedo brings extensive experience in private equity, M&A, investment banking, and capital markets. He is the co-founder and partner of 4x4 Capital, a New York-based private equity firm, and serves as board observer of 1440 Foods and as board member of Hejoassu, the ownership board of Votorantim. Simultaneously, Mr. Diego Hernandez and Mr. Eduardo Borges de Andrade Filho, members of our Board of Directors who served as chairs of the Sustainability and Capital Projects Committee and Compensation, Nominating and Governance Committee, respectively, ended their respective mandates.
Divestment of Morro Agudo Complex, in Paracatu (MG, Brazil)
On April 5, 2024, Nexa announced the signing of a definitive agreement to divest the Morro Agudo Complex, which encompasses the Morro Agudo and Ambrósia mines. Furthermore, on July 1, 2024, the company announced the closing of this transaction, and pursuant to the terms of the definitive agreement, Nexa has sold, transferred and assigned all rights, titles, and interests in the Morro Agudo Complex to Casa Verde. The transaction was completed following the fulfillment of all closing conditions.
Throughout this transition, Nexa prioritized its employees by ensuring transparent communication and structured support to facilitate their personal and professional transitions. Many employees were successfully relocated within Nexa's operations or found new opportunities in the region through job fairs organized by the Company. This structured and empathetic approach underscores Nexa's commitment to its people and its strategy of responsible business practices.
About Nexa
Nexa Resources is one of the world's leading zinc mining companies. Operating for over 65 years in the mining and metallurgy segments, with locations in Brazil and Peru and offices in Luxembourg and the United States, supplying its products to every continent. Every day, its employees work with a commitment to building the mining that changes with the world, aiming for sustainability, innovation, and upholding the best safety practices, respect for people, and the environment. Since 2017, its shares have been traded on the New York Stock Exchange, with its majority shareholder being Votorantim S.A. For more information about Nexa and its ESG strategy and commitments, please visit our website.
For a full version of the 2Q24 Earnings Release document, please go to our Investor Relations website at: http://ir.nexaresources.com
For further information, please contact our teams:
NEXA | Investor Relations NEXA | Communications & Corporate Affairs
E-mail: ir@nexaresources.com E-mail: bruno.carrilho@nexaresources.com
SOURCE: Nexa Resources S.A.
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