Nexa Resources' Q2 2025: Unraveling Contradictions on Aripuanã Production, Working Capital, and Filter Installations
Generated by AI AgentAinvest Earnings Call Digest
Friday, Aug 1, 2025 9:37 pm ET1min read
NEXA--
Aime Summary
Aime SummaryAripuanã filter installation and production impact, working capital position and recovery time, Aripuana filter installation timeline, working capital trends, and Aripuana filter installation and production impact are the key contradictions discussed in Nexa Resources' latest 2025Q2 earnings call.
Production and Cost Changes:
- NEXA's Mining segment produced 74,000 tonnes of zinc in Q2, up 9% quarter-over-quarter, driven by higher treated ore volumes and better grades at Peruvian operations.
- However, year-over-year zinc production was down 14% due to lower output at Vazante and Aripuana.
- The decline in output was mainly due to operational constraints and maintenance challenges.
Financial Performance and EBITDA:
- NEXA's net revenues for Q2 were $708 million, up 13% compared to the first quarter of 2025, and adjusted EBITDA reached $161 million, a 28% increase sequentially.
- Adjusted EBITDA margin for the quarter was 23%, up 3 percentage points from the previous quarter.
- The improved financial performance was due to higher smelter sales volumes and increased byproduct contributions.
Liability Management and Debt Profile:
- The company successfully extended debt maturities at competitive rates, with total cash position sufficient to cover obligations maturing over the next 3 years.
- The average debt maturity increased to 7.7 years, and the average cost of debt reduced to 6.3%.
- This improvement was achieved through proactive liability management efforts and a $500 million bond issuance.
Cerro Pasco Integration Project:
- Phase 1 of the Cerro Pasco integration project is progressing well, with key milestones achieved, including detailed engineering and construction license.
- Preparatory work for Phase 2 is also ongoing, with technical assessments and integration plans in progress.
- This project is vital for expanding tailings storage capacity and supporting future production plans.
Production and Cost Changes:
- NEXA's Mining segment produced 74,000 tonnes of zinc in Q2, up 9% quarter-over-quarter, driven by higher treated ore volumes and better grades at Peruvian operations.
- However, year-over-year zinc production was down 14% due to lower output at Vazante and Aripuana.
- The decline in output was mainly due to operational constraints and maintenance challenges.
Financial Performance and EBITDA:
- NEXA's net revenues for Q2 were $708 million, up 13% compared to the first quarter of 2025, and adjusted EBITDA reached $161 million, a 28% increase sequentially.
- Adjusted EBITDA margin for the quarter was 23%, up 3 percentage points from the previous quarter.
- The improved financial performance was due to higher smelter sales volumes and increased byproduct contributions.
Liability Management and Debt Profile:
- The company successfully extended debt maturities at competitive rates, with total cash position sufficient to cover obligations maturing over the next 3 years.
- The average debt maturity increased to 7.7 years, and the average cost of debt reduced to 6.3%.
- This improvement was achieved through proactive liability management efforts and a $500 million bond issuance.
Cerro Pasco Integration Project:
- Phase 1 of the Cerro Pasco integration project is progressing well, with key milestones achieved, including detailed engineering and construction license.
- Preparatory work for Phase 2 is also ongoing, with technical assessments and integration plans in progress.
- This project is vital for expanding tailings storage capacity and supporting future production plans.
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