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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NEXA

NEXA fundamentals

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