Nexa Resources: A Zinc Giant's 2024 Mineral Reserves and Resources Update

Nexa Resources, the fifth largest zinc producer globally, has just released its 2024 Year-End Mineral Reserves and Mineral Resources update, and the numbers are impressive. The company's strategic focus on near-mine expansion, brownfield and infill drilling, and greenfield projects has paid off, resulting in a significant increase in contained zinc and a stable mineral resources base. Let's dive into the details and see what this means for Nexa's future.



The Numbers Speak for Themselves

As of December 31, 2024, Nexa's Proven and Probable Mineral Reserves stood at 110.3 million tonnes, containing 4,075kt of zinc. This is a notable increase from the 4,031kt of zinc contained in 110.4 million tonnes as of December 31, 2023. The increase in contained zinc was primarily driven by infill drilling at key mines like El Porvenir, Aripuanã, and Vazante, partially offset by mining depletion. The company's successful conversion of Mineral Resources into Mineral Reserves through infill drilling at multiple sites also played a significant role in this increase.

Key Drivers of Growth

1. Infill Drilling: Nexa's infill drilling efforts at key mines have been a game-changer. For instance, infill drilling at the Babaçu target at Aripuanã defined new Mineral Reserves and increased Inferred Mineral Resources, adding 94kt of contained zinc to reserves.

2. Conversion of Mineral Resources: The company's ability to convert Mineral Resources into Mineral Reserves through infill drilling has been a significant contributor to the overall increase in Mineral Reserves. For example, infill drilling at Cerro Lindo added 36kt of contained zinc, while at Vazante, it added 40kt of contained zinc.

3. New Mining Methods and Geological Model Adjustments: The implementation of new mining methods, such as the Narrow Vein Sub-Level Stoping (SLS) at Vazante, and geological model adjustments at Aripuanã contributed to a net revision of 172kt of contained zinc. Specifically, the new mining method at Vazante added 74kt of contained zinc, while geological model adjustments at Aripuanã added 81kt of contained zinc.

What Does This Mean for Nexa's Future?

The increase in contained zinc in Nexa's 2024 Year-End Mineral Reserves is a testament to the company's strategic focus on near-mine expansion, brownfield and infill drilling, and greenfield projects. This focus has not only resulted in a higher average zinc grade but also ensured reserve replacement and expansion year-over-year, reinforcing the strength and sustainability of Nexa's asset portfolio.

Moreover, the successful implementation of new mining methods and geological model adjustments suggests that Nexa is well-positioned to navigate economic cycles and ensure a steady supply of zinc. This, coupled with the company's disciplined approach to capital allocation and effective exploration strategy, bodes well for its long-term growth prospects.

In conclusion, Nexa Resources' 2024 Year-End Mineral Reserves and Mineral Resources update is a clear indication of the company's commitment to sustainable growth and operational excellence. With a stable mineral resources base and a strategic focus on reserve replacement and expansion, Nexa is well-positioned to continue its journey as a leading polymetallic producer and the fifth largest zinc producer globally.