What were the key takeaways from Nexa Resources's earnings call?

What factors drove the changes in Nexa Resources's revenue and profit?

Did Nexa Resources beat or miss consensus estimates last quarter?

What guidance did Nexa Resources's management provide for the next earnings period?

What is the revenue and EPS growth rate for Nexa Resources year over year?

What is Nexa Resources's latest dividend and current dividend yield?

What does Nexa Resources do and what are its main business segments?

What is Nexa Resources's gross profit margin?

- **Operational Strength**: Q3 zinc production up 14% QoQ to 84,000 tons, with Aripuana hitting record 10,000 tons. Mining EBITDA margin 44%, cash cost -$0.49/lb.
- **Strategic Projects**: Aripuana's 4th filter on track for mid-2026 commissioning; Cerro Pasco Phase 1 25% complete.
- **Financial Health**: Net income $100M, free cash flow $52M, net leverage 2.2x. 2026 capex guidance unchanged at $347M.
- **Market Outlook**: Zinc prices resilient at $3,000/ton, copper at $10,300/ton, silver up 58% YoY. 2026 silver streaming deal to boost cash flow.
- **Risk Management**: Workforce turnover improving to 18-20%; Peru political risks mitigated by mining sector's economic importance.

**【CEO Opening Remarks】**
- Highlighted 5 strategic catalysts: Aripuana expansion, Cerro Pasco integration, disciplined M&A, operational excellence, and ESG leadership.
- Q3 2025 zinc production reached 84,000 tons (14% QoQ growth), driven by Aripuana's record quarter (10,000 tons) and Vazante recovery.
- Mining cash cost improved to -$0.49/lb (net of byproducts), with EBITDA margin at 44%.
- Aripuana's 4th tailings filter installation begins Q4, targeting full capacity by mid-2026.
- Cerro Pasco Phase 1 on track, with 2 key procurement packages fully manufactured.

**【CFO Financial Commentary】**
- Net revenues: $764M (8% QoQ), adjusted EBITDA: $186M (16% QoQ), net income: $100M ($0.52/share).
- Free cash flow: $52M, net leverage: 2.2x (down from 2.3x).
- CapEx: $227M YTD ($90M Q3), with $30M invested in Cerro Pasco (vs. $44M guidance).
- Exploration: $53M YTD ($21M Q3), aligned with $88M annual target.
- Working capital: $19M positive impact Q3, expected neutral for full year.

**【Market & ESG Update】**
- Zinc prices at $3,010/ton (Q3 avg), supported by low LME inventories and weaker USD.
- Copper at $10,300/ton, silver up 58% YoY, driven by industrial demand and safe-haven dynamics.
- ESG milestones: PERUMIN Gender Equity Seal, LME Responsible Sourcing Track A compliance, 100% renewable energy at Cajamarquilla smelter.

**【Q&A Highlights】**
- **Capital Allocation**: Target net leverage <1x long-term; $500-600M gross debt reduction over 4 years. Q4 free cash flow expected to normalize working capital.
- **Aripuana Timeline**: 4th filter commissioning by April 2026, full capacity by mid-2026. Workforce turnover improved to 18-20% (from 35-40%), with retention programs and infrastructure investments.
- **Peru Political Risks**: Mining sector accounts for 12-15% of Peru's GDP; stable relationship with communities and authorities expected to mitigate election-related volatility.
- **Silver Production**: Byproduct-driven, but 2026 silver streaming deal could add $70-75M annual cash flow (65% to 25% streamer split post 90M oz threshold).

Nexa Resources S.A. (NEXA) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 net revenue up 13% QoQ to $708M, driven by smelter volumes and byproducts.
- **Operational Challenges**: Aripuana and Vazante disruptions revised 2025 guidance; Aripuana's fourth tailings filter set for Q2 2026.
- **Liquidity Strength**: $738M available, debt maturity extended to 7.7 years post $500M bond issuance.
- **Strategic Momentum**: Cerro Pasco Phase 1 on track, exploration results supporting long-term zinc supply.
- **Debt Reduction Focus**: Target leverage below 2.0x; free cash flow expected to improve with production recovery.


**【CEO Summary Section】**
- **Business Catalysts**: Aripuana (15-year mine life), Cerro Pasco integration (15+ years), mineral exploration (Cerro Lindo, Vazante), and integrated mine-smelter model for stability.
- **Q2 2025 Results**: Net revenue $708M (+13% QoQ), EBITDA $161M (+28% QoQ), free cash flow $17M. Zinc production 74,000 tonnes (+9% QoQ), smelter sales 145,000 tonnes (+12% QoQ).
- **Challenges**: Aripuana and Vazante disruptions (Q1 2025) led to revised 2025 guidance. Aripuana's fourth tailings filter expected in H1 2026 for full capacity.
- **Strategic Progress**: Cerro Pasco Phase 1 on track, exploration results positive (Cerro Lindo, Aripuana, Pasco).

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income $161M, non-GAAP EBITDA margin 23%. CapEx $137M (H1 2025), $18M invested in Cerro Pasco.
- **Liquidity**: $738M available, debt maturity extended to 7.7 years. $500M bond issuance reduced near-term refinancing risk.
- **Cash Flow**: Operating cash flow $175M, free cash flow $17M (Q2). Working capital improved sequentially.

**【Q&A Highlights】**
- **Guidance Revisions**: Q1 disruptions (Aripuana, Vazante) impacted Q2, leading to 2025 production cuts. Vazante's high-grade access limited due to geotechnical issues.
- **Aripuana Expansion**: Fourth filter commissioning in Q2 2026, supporting 50,000-65,000 tonnes zinc in 2026.
- **Debt Management**: Target leverage below 2.0x via deleveraging and cash flow growth. Dividends balanced with capital allocation priorities.
- **Exploration Impact**: Seccao Norte and Massaranduba results may extend mine life; 2025 resource update pending.


Nexa Resources S.A. (NEXA) Q2 2025 Earnings Call Transcript

- **Q1 2025 Performance**: Adjusted EBITDA $125M (-3% YoY) amid operational challenges from heavy rainfall and geotechnical issues. Mining cash cost efficiency improved to $0.11/lb.
- **Capital Allocation**: $50M Q1 CapEx towards Cerro Pasco Integration (Phase 1 on track) and Aripuanã filter expansion.
- **Leverage Management**: 2025-end leverage target ~1.7x, supported by $500M bond issuance extending debt maturity to 8 years.
- **Key Risks**: Zinc TCs drop to $80/ton (-52% YoY) pressures smelter margins; U.S. trade policy monitoring for zinc demand stability.
- **Growth Drivers**: Silver (+37% YoY) and copper (+11% YoY) prices offset zinc volatility; Aripuanã mine life extended to 15 years.


**【CEO Opening Remarks】**
- **Market Overview**: Acknowledged global macro challenges (economic slowdown, inflation, supply chain disruptions) but highlighted strong medium-term demand for zinc, copper, and silver driven by infrastructure and industrial revitalization.
- **Operational Challenges**: Q1 2025 production below initial estimates due to heavy rainfall at key sites (El Porvenir, Atacocha, Aripuanã) and Vazante's geotechnical issues. Mining segment cash cost dropped to $0.11/lb (vs $0.26/lb YoY) due to byproduct contributions and lower TCs.
- **Financial Performance**: Adjusted EBITDA of $125M (down 3% YoY) with margins stable. Consolidated net revenues $627M despite lower smelting volumes.
- **Projects Update**: Aripuanã's 4th tailings filter under construction, expected Q1 2026 commissioning. Cerro Pasco Integration Phase 1 progressing on schedule.

**【CFO Financial Review】**
- **Revenue**: +8% YoY to $627M (zinc, silver, copper price hikes offset smelting volume decline).
- **EBITDA**: $125M (down 3% YoY) due to lower smelting volumes, higher costs, and lower TCs. Margin 20% (vs 22% YoY).
- **Cash Flow**: Operating cash flow $158M, free cash flow negative $226M due to seasonal working capital ($265M outflow). 2025 CapEx guidance $347M, with $50M spent Q1.
- **Leverage**: Net debt/EBITDA 2.1x (vs 1.7x end-2024) due to seasonal cash decline. Debt maturity extended to 8 years via $500M 12-year bond issuance.

**【Q&A Key Points】**
- **Vazante Recovery**: Geotechnical issue resolved; 2025 production expected to recover mid-range of guidance. Aripuanã constrained by tailings filters but improving in dry season.
- **TCRCs Impact**: 2025 TCs fixed at $80/ton (vs 2024 $170/ton), limiting smelter margin but mitigated by closed contracts. Zinc price volatility expected to drive metal supply constraints.
- **Leverage Outlook**: Q1 leverage spike due to working capital; expects 2025-end leverage similar to 2024-end (1.7x). Focus on cash flow generation from silver and copper (12M oz/yr, 30K tons/yr).
- **Tariff Risks**: No direct U.S. tariff exposure; monitoring zinc price impacts. Peru-U.S. trade deal excludes zinc, maintaining supply stability.


Nexa Resources (NEXA)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record EBITDA Growth**: 76% YoY increase to $714 million, highest in company history.
- **Aripuana Turnaround**: Positive EBITDA in 2024, with 43% zinc production growth and $14M tailings filter investment for 2026 capacity expansion.
- **Cerro Pasco Expansion**: $85M Phase 1 approved to connect mines, with potential 10+ year life extension.
- **Dividend Policy**: 20% of free cash flow with $0.08/share minimum, supported by $163M 2024 free cash flow.
- **Liquidity Strength**: 1.7x net debt/EBITDA ratio, $960M available liquidity.

**【CEO Summary Section】**
- **Record Financial Performance**: Q4 2024 adjusted EBITDA of $197 million (79% YoY increase), full-year EBITDA of $714 million (76% YoY growth), highest in company history. 
- **Operational Milestones**: 
  - Aripuana achieved positive EBITDA for first time, with zinc production +43% YoY, copper +24%, lead +106%, silver +114%.
  - Cerro Pasco Integration Project Phase 1 approved, with $85 million tailings pumping system to extend mine life.
  - $163 million free cash flow generated, reducing net debt to 1.7x EBITDA (from 3.3x in 2023).
- **Cost Efficiency**: Mining cash costs down 64% YoY, smelting costs optimized through by-product pricing.
- **Strategic Divestitures**: Sold non-core assets (Morro Agudo, Peru operations) to focus on high-margin assets.

**【CFO Financial Commentary】**
- **Revenue Growth**: Q4 net revenues $741 million (18% YoY, 4% QoQ), driven by +22% LME zinc price and +35% silver price.
- **Liquidity Strength**: $960 million available liquidity, 5.6-year debt maturity profile, 6.4% average cost of debt.
- **Capital Allocation**: 2025 sustaining CapEx $316 million, with $14 million for Aripuana's 4th tailings filter.
- **Dividend Policy**: New policy targets 20% of free cash flow, with minimum $0.08/share dividend.

**【Q&A Highlights】**
- **Aripuana Expansion**: 
  - 4th tailings filter ($14M cost) to be commissioned Q1 2026, enabling full 170k-180k t/y capacity.
  - 2025 EBITDA expected higher than 2024 due to higher production and lower costs.
- **Cerro Pasco Integration**: 
  - Phase 1 ($85M) to connect El Porvenir and Atacocha mines, with Phase 2 feasibility study due Q3 2025.
  - Project could add 10+ years to mine life through tailings reuse.
- **Magistral Project**: Environmental approval delayed, but remains a priority if economics justify.
- **Working Capital**: Seasonal volatility expected, but annual impact neutralized through cash management.


NEXA

NEXA fundamentals

Earnings Call

You can ask Aime