Nexa Resources S.A. press release
Nexa Achieves 2024 Production and Costs Guidance, Exceeds Copper Production, and Provides 2025-2027 Outlook
NYSE - New York Stock Exchange
Luxembourg, Luxembourg--(Newsfile Corp. - February 6, 2025) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources" or "Nexa" or the "Company") is pleased to announce its operational results for the three- and twelve-month periods ended December 31, 2024. The Company is also providing its production and metal sales guidance for the 2025-2027 period, along with guidance on cash costs, capital expenditures, and other operating expenses for 2025. The figures presented in this report are preliminary and unaudited. Nexa's financial results for the fourth quarter and full year 2024 are expected to be published on Thursday, February 20, 2025 (after trading hours).
2024 Summary Highlights
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Consolidated mining production guidance was achieved, with zinc, lead, and silver production meeting the annual guidance range, while copper production exceeded the upper range.
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Zinc production totaled 327kt. After the guidance revision disclosed in October 2024which maintained the initial full-year production target , the Cerro Lindo, El Porvenir, Vazante, and Aripuanã mines reached the lower end of the annual guidance, while Atacocha achieved the mid-range.
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Copper production totaled 36kt, exceeding the upper range of guidance, while lead production reached 69kt, within the annual guidance range.
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Silver production totaled 12MMoz, reaching the mid-point of guidance, with Cerro Lindo's output exceeding the upper range. Nexa remains a significant producer of silver, and 2024 production further reinforces this position.
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Metal sales totaled 591kt, in line with the mid-range of annual guidance. This performance was primarily driven by higher production volumes at the Cajamarquilla and Juiz de Fora smelters compared to 2023, supported by enhanced operational stability, reduced downtime, increased demand, and efficient logistics across our supply chain.
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Consolidated run-of-mine mining costs and consolidated C1 cash cost guidance, which was reduced by 65% in October 2024, were successfully achieved due to improved operational efficiencies, effective cost management, and disciplined execution of our production plans. Key drivers included: reduced energy consumption, optimized personnel expenses, and lower third-party service costs. Furthermore, favorable TCs, foreign exchange effects, and higher by-product prices contributed to these results.
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Consolidated smelting Conversion cost and C1 cash cost guidance were achieved, primarily due to lower operational costs at Brazilian smelters, higher operational throughput at Cajamarquilla, and enhanced process efficiencies. Key factors, such as successful freight negotiations, contributed to maintain costs within the forecasted range, while favorable foreign exchange effects in Brazilian operations further supported these outcomes.
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CAPEX and Other Operating Expenses came in well below the lowered guidance updated in October 2024. This outcome underscores the Company's unwavering commitment to financial discipline and operational efficiency. Strategic optimization initiatives implemented throughout the year played a pivotal role in controlling expenditures without compromising operational reliability or long-term project development.
Production and Sales
| Mining production | 2024 | Guidance 2024 | | | | | (Metal in concentrate) | | | | | | | | | | | | | | Zinc | kt | 327 | 323 | - | 381 | | Cerro Lindo | | 86 | 84 | - | 99 | | El Porvenir | | 51 | 50 | - | 58 | | Atacocha | | 10 | 9 | - | 11 | | Vazante | | 141 | 140 | - | 163 | | Morro Agudo(1) | | 7 | 7 | - | 7 | | Aripuanã | | 32 | 31 | - | 42 | | | | | | | | | Copper | kt | 36 | 30 | - | 35 | | Cerro Lindo | | 30 | 24 | - | 28 | | El Porvenir | | 0.3 | 0.2 | - | 0.3 | | Aripuanã | | 5.5 | 5.7 | - | 7.3 | | | | | | | | | Lead | kt | 69 | 66 | - | 82 | | Cerro Lindo | | 14 | 13 | - | 17 | | El Porvenir | | 27 | 25 | - | 32 | | Atacocha | | 12 | 12 | - | 13 | | Vazante | | 0.9 | 0.9 | - | 1.2 | | Morro Agudo(1) | | 2.3 | 2.3 | - | 2.3 | | Aripuanã | | 13 | 12 | - | 16 | | | | | | | | | Silver | MMoz | 12 | 11 | - | 13 | | Cerro Lindo | | 4.3 | 4.0 | - | 4.2 | | El Porvenir | | 4.6 | 4.6 | - | 5.4 | | Atacocha | | 1.2 | 1.1 | - | 1.2 | | Vazante | | 0.5 | 0.3 | - | 0.5 | | Aripuanã | | 1.1 | 1.0 | - | 1.5 |
(1)Considers only the four months of operations from January to April 2024.
Metal sales (zinc metal + zinc oxide) totaled 591kt in 2024, reaching the mid-range of the annual guidance, mainly driven by higher production volumes at the Cajamarquilla smelter compared to 2023, supported by improved operational stability, particularly in Cajamarquilla, reduced downtime, increased demand, and enhanced logistics efficiency across our supply chain. Specifically, sales were further boosted by demand from key markets, particularly in the automotive and construction sectors, which contributed to higher sales volumes.
Zinc metal sales of 557kt were also within the mid-range of guidance, while zinc oxide sales totaled 35kt, remaining at the lower end of the range. This was mainly driven by reduced demand in the pneumatic (tire) segment, which is facing increased competition from Chinese tire exports and shifts in customer inventory levels amid expectations of a potential slowdown in demand.
| Smelting sales | 2024 | Guidance 2024 | | | | | | | | | | | | Zinc metal | kt | 557 | 545 | - | 565 | | Cajamarquilla | | 327 | 315 | - | 325 | | Três Marias | | 147 | 155 | - | 160 | | Juiz de Fora | | 83 | 75 | - | 80 | | | | | | | | | Zinc oxide | kt | 35 | 35 | - | 40 | | Três Marias | | 35 | 35 | - | 40 | | | | | | | | | Metal Sales | kt | 591 | 580 | - | 605 |
2024 Cash Costs
| Mining Operating costs | Cost ROM (US$/t) 2024 | | Cash Cost (US$/lb) 2024 | | Cost ROM (US$/t) Guidance 2024 | | Cash Cost (US$/lb) Guidance 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mining (1) | 45.0 | | 0.07 | | 44.0 | | - | | 51.4 | | 0.03 | | - | | 0.20 | | | Cerro Lindo | 40.4 | | (0.46) | | 41.0 | | - | | 45.0 | | (0.56) | | - | | (0.28) | | | El Porvenir | 63.2 | | 0.08 | | 58.4 | | - | | 71.6 | | (0.09) | | - | | 0.18 | | | Atacocha | 34.7 | | (0.65) | | 34.3 | | - | | 43.2 | | (0.85) | | - | | (0.59) | | | Vazante | 48.3 | | 0.49 | | 55.8 | | - | | 63.6 | | 0.46 | | - | | 0.52 | | | Morro Agudo (2) | 40.8 | | 0.93 | | 27.9 | | - | | 40.0 | | 0.93 | | - | | 0.93 | |
(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine. (2)Considers only the four months of operations from January to April 2024.
Note: Consolidated cash cost does not include Aripuanã.
| Smelting Operating costs | | Conversion cost (US$/lb) 2024 | | Cash Cost (US$/lb) 2024 | | Conversion cost (US$/lb) Guidance 2024 | | Cash Cost (US$/lb) Guidance 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Smelting (3) | | 0.30 | | 1.15 | | 0.29 | | - | | 0.32 | | 1.07 | | - | | 1.18 | | | Cajamarquilla | | 0.27 | | 1.12 | | 0.29 | | - | | 0.32 | | 1.02 | | - | | 1.13 | | | Três Marias | | 0.30 | | 1.17 | | 0.25 | | - | | 0.27 | | 1.12 | | - | | 1.23 | | | Juiz de Fora | | 0.44 | | 1.23 | | 0.38 | | - | | 0.42 | | 1.17 | | - | | 1.28 | |
(3) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per smelter.
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Run-of-mine mining costs of US$45.0/t and C1 cash cost of US$0.07/lb were in line with our 2024 guidance. These results were driven by effective cost control measures, operational improvements, consistent execution of our mining plans, and favorable foreign exchange effects. Key contributing factors included: reduced energy consumption, optimized personnel expenses, and lower costs for third-party services.
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Smelting conversion cost of US$0.30/lb and C1 cash cost of US$1.15/lb were in line with our 2024 guidance. This performance was driven by optimized smelting processes and increased operational throughput at Cajamarquilla. Moreover, improved freight negotiations maintained costs within the forecasted range.
2024 Operational Results
Mining segment
| Mining production | 4Q24 | | 4Q23 | | 2024 | | 2023 | | | | (Metal in concentrate) | | | | | | | | | | | | | | | | | | | | | | Zinc | kt | 74 | | 90 | | 327 | | 333 | | | Cerro Lindo | | 15 | | 25 | | 86 | | 78 | | | El Porvenir | | 13 | | 14 | | 51 | | 56 | | | Atacocha | | 2.7 | | 2.6 | | 10 | | 8 | | | Vazante | | 34 | | 35 | | 141 | | 146 | | | Morro Agudo(1) | | 0 | | 7 | | 7 | | 23 | | | Aripuanã | | 9.3 | | 7.4 | | 32 | | 22 | | | | | | | | | | | | | | Copper | kt | 9.1 | | 9.4 | | 36 | | 33 | | | Cerro Lindo | | 8.1 | | 7.9 | | 30 | | 29 | | | El Porvenir | | 0.1 | | 0.1 | | 0.3 | | 0.4 | | | Aripuanã | | 1.0 | | 1.4 | | 5.5 | | 4.4 | | | | | | | | | | | | | | Lead | kt | 17 | | 18 | | 69 | | 65 | | | Cerro Lindo | | 2.0 | | 3.8 | | 14 | | 13 | | | El Porvenir | | 7.5 | | 6.5 | | 27 | | 25 | | | Atacocha | | 3.1 | | 2.9 | | 12 | | 11 | | | Vazante | | 0.2 | | 0.3 | | 0.9 | | 1.4 | | | Morro Agudo(1) | | 0 | | 1.9 | | 2.3 | | 8.3 | | | Aripuanã | | 4.6 | | 2.3 | | 13 | | 6.3 | | | | | | | | | | | | | | Silver | MMoz | 3.0 | | 2.7 | | 12 | | 10 | | | Cerro Lindo | | 0.9 | | 1.0 | | 4.3 | | 3.5 | | | El Porvenir | | 1.3 | | 1.0 | | 4.6 | | 4.3 | | | Atacocha | | 0.3 | | 0.4 | | 1.2 | | 1.4 | | | Vazante | | 0.1 | | 0.1 | | 0.5 | | 0.6 | | | Aripuanã | | 0.3 | | 0.2 | | 1.1 | | 0.5 | |
(1)2024 figures consider only the four months of operations from January to April 2024.
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Cerro Lindo:Zinc production of 86kt was up 10% year-over-year, primarily driven by improved operational performance, access to areas with higher grades in line with the mine sequencing plan, and enhanced plant efficiency. Production also benefited from increased treated ore volumes throughout the year. Copper, lead, and silver production rose to 30kt (+5%), 14kt (+7%) and 4.3MMoz (+21%), respectively, due to these same factors.
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El Porvenir: Zinc production totaled 51kt, within the guidance but 9% lower than in 2023, primarily due to lower average head grades, which impacted overall output. In contrast, lead and silver production increased by 7% and 9% reaching 27kt and 4.6MMoz, respectively, supported by improved recovery rates and operational efficiency measures.
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Atacocha:Zinc production reached 10kt, up 27% compared to 2023, mainly driven by increased mining activities in higher-grade zinc areas and improved processing efficiency. Lead production rose 11%, driven by higher lead grades and better recovery rates, while silver production decreased by 13% due to lower silver grades and a shift in ore processing, which resulted in less silver content.
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Vazante:Zinc production totaled 141kt, down 3% from 2023. This decrease was primarily driven by lower average grades and reduced sales volumes of AgroZinc - a by-product derived from low-grade ore and sold to the agricultural market. These impacts were partially offset by higher treated ore volumes. Lead and silver production, while within the 2024 guidance range, decreased by 35% and 18%, respectively, compared to 2023, due to lower ore grades for these metals.
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Morro Agudo:Zinc production totaled 7kt, reflecting output from only the first four months of the year (January to April) and marking a 68% decrease compared to 2023. This decline resulted from the cessation of mining activities following the sale of Morro Agudo on April 30, 2024.
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Aripuanã:Zinc production reached 32kt, up by 43% year-over-year, mainly driven by improved operational performance and process adjustments implemented throughout the year. Copper, lead, and silver production significantly increased to 5.5kt (+24%), 13kt (+106%) and 1.1MMoz (+114%), respectively, reflecting enhanced recovery rates and optimized production processes.
Smelting segment
| Smelting sales | | 4Q24 | | 4Q23 | | 2024 | | 2023 | | | | | | | | | | | | | | | | Zinc metal | kt | | 144 | | 135 | | 557 | | 556 | | | Cajamarquilla | | | 84 | | 79 | | 327 | | 326 | | | Três Marias | | | 37 | | 33 | | 147 | | 147 | | | Juiz de Fora | | | 23 | | 23 | | 83 | | 82 | | | | | | | | | | | | | | | Zinc oxide | kt | | 8 | | 8 | | 35 | | 34 | | | Três Marias | | | 8 | | 8 | | 35 | | 34 | | | | | | | | | | | | | | | Metal Sales | kt | | 152 | | 143 | | 591 | | 590 | |
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Peru:Cajamarquilla metal sales totaled 327kt, remaining relatively flat year-over-year. This performance was supported by higher production volumes and stable demand from regional markets.
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Brazil:Metal sales (zinc metal + zinc oxide) totaled 264kt, also remaining relatively stable compared to 2023. This performance was primarily driven by lower production volumes at Três Marias, partially offset by operational improvements at Juiz de Fora throughout the year. However, production was slightly impacted in late December 2024 due to a fire at wet electro-filters A and B. The incident was promptly contained following an emergency shutdown of the roasting plant, and remediation measures are underway, focusing on the gradual repair of the electro-filters.
In Três Marias, metal sales (zinc metal + zinc oxide) amounted to 181kt, in line with the prior year.
In Juiz de Fora, metal sales increased by 1% to 83kt, reflecting consistent operational performance and steady demand.
Guidance 2025-2027
Guidance is based on several assumptions and estimates, including but not limited to metal prices, operational performance, maintenance and input costs, and exchange rates.
Nexa will continue to monitor risks associated with global supply chain disruptions, which could be exacerbated, among other factors, by the ongoing Russia-Ukraine war, the Middle-East conflict, unusual weather conditions, the global recession, and its potential impact on the demand for our products, inflationary cost pressure, metal price volatility, local community or union protests, and changes to the political situations or regulatory frameworks in the countries in which we operate that could affect our production levels and our costs. Additionally, the evolving trade policies and tariff changes globally, including recent tariff increases on Canada, Mexico, and China, could impact our cost structure, supply chain, and overall market dynamics. Nexa will continue to assess the implications of these trade policies on our operations and financial outlook. Refer to "Risks and Uncertainties" and "Cautionary Statement on Forward-Looking Statements" for further information.
Summary Highlights
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In 2025, zinc production at mid-range levels is projected to slightly increase compared to 2024, primarily due to higher output from Aripuanã and El Porvenir. This increase will be partially offset by lower production volumes at Cerro Lindo and Vazante, in line with the updated mine sequencing plan, which anticipates slightly lower grades. For 2026, zinc production is forecasted to increase by 4% over 2025, supported by higher volumes at Aripuanã, Cerro Lindo, and Atacocha. For 2027, zinc production is expected to increase by 7% compared to 2026, primarily driven by continued growth at Aripuanã and El Porvenir, along with stable production at Vazante and Cerro Lindo.
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Copper production at the midpoint of the 2025 guidance range is anticipated to decline by 10% compared to 2024, primarily due to lower grades in prepared areas, in line with the current mine sequencing plans. This trend is expected to continue in 2026, with a further decline compared to 2025, mainly driven by lower grades at Cerro Lindo and Aripuanã. In 2027, copper production is projected to slightly increase by 1% over 2026, supported by an updated mining plan at Cerro Lindo.
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In 2025, consolidated lead production at mid-range levels is forecasted to decrease by 7%, while silver production is expected to decrease by 1%, both compared to 2024. For 2026 and 2027, lead production at mid-range is anticipated to slightly increase compared to previous year. Meanwhile, silver production in 2026 and 2027 is expected to remain stable.
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At the midpoint of the 2025 guidance range, total metal sales are expected to decrease by 3% compared to 2024, primarily due to production adjustments associated with the forecasted lower treatment charge ("TC") levels for 2025. This strategy aims at preserving margins in the smelting segment and is expected to result in slightly lower metal sales in the period. Additionally, remediation actions following the fire incident at the Juiz de Fora wet electro-filters at the end of December 2024 are expected to be completed by the end of 2H25, with the associated production adjustments already factored into the guidance for the year. Furthermore, no significant third-party material resales are anticipated. For 2026, total metal sales are projected to increase by 3% compared to 2025, ranging between 580-605kt, while remaining stable in 2027.
Mining Segment
| Mining production (1) | 2024 | | 2025e | | | 2026e | | | 2027e | | | | | | | | | | | | | | | | (Metal in concentrate) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Zinc | kt | 327 | | 311 | | - | | 351 | | | 317 | | - | | 372 | | | 339 | | - | | 397 | | | Cerro Lindo | | 86 | | 80 | | - | | 88 | | | 82 | | - | | 94 | | | 81 | | - | | 95 | | | El Porvenir | | 51 | | 56 | | - | | 62 | | | 42 | | - | | 49 | | | 56 | | - | | 62 | | | Atacocha | | 10 | | 10 | | - | | 12 | | | 17 | | - | | 20 | | | 13 | | - | | 21 | | | Vazante | | 141 | | 132 | | - | | 145 | | | 126 | | - | | 145 | | | 124 | | - | | 144 | | | Aripuanã | | 32 | | 35 | | - | | 45 | | | 50 | | - | | 65 | | | 67 | | - | | 75 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Copper | kt | 36 | | 29 | | - | | 35 | | | 25 | | - | | 30 | | | 26 | | - | | 29 | | | Cerro Lindo | | 30 | | 24 | | - | | 27 | | | 20 | | - | | 24 | | | 23 | | - | | 25 | | | El Porvenir | | 0.3 | | 0.3 | | - | | 0.5 | | | 0.2 | | - | | 0.3 | | | 0.3 | | - | | 0.5 | | | Aripuanã | | 5.5 | | 5.1 | | - | | 8.2 | | | 4.4 | | - | | 6.5 | | | 3.2 | | - | | 3.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Lead | kt | 69 | | 59 | | - | | 70 | | | 65 | | - | | 76 | | | 64 | | - | | 79 | | | Cerro Lindo | | 14 | | 11 | | - | | 12 | | | 10 | | - | | 12 | | | 11 | | - | | 13 | | | El Porvenir | | 27 | | 21 | | - | | 26 | | | 21 | | - | | 25 | | | 21 | | - | | 26 | | | Atacocha | | 12 | | 13 | | - | | 13 | | | 15 | | - | | 17 | | | 9 | | - | | 13 | | | Vazante | | 0.9 | | 0.7 | | - | | 0.8 | | | 1.0 | | - | | 1.2 | | | 1.0 | | - | | 1.1 | | | Aripuanã | | 13 | | 14 | | - | | 17 | | | 18 | | - | | 21 | | | 21 | | - | | 27 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Silver | MMoz | 12 | | 11 | | - | | 12 | | | 10 | | - | | 12 | | | 10 | | - | | 12 | | | Cerro Lindo | | 4.3 | | 3.9 | | - | | 4.2 | | | 3.0 | | - | | 3.4 | | | 3.1 | | - | | 3.4 | | | El Porvenir | | 4.6 | | 4.2 | | - | | 4.8 | | | 4.0 | | - | | 4.7 | | | 4.2 | | - | | 4.8 | | | Atacocha | | 1.2 | | 1.3 | | - | | 1.4 | | | 1.2 | | - | | 1.4 | | | 0.8 | | - | | 1.2 | | | Vazante | | 0.5 | | 0.4 | | - | | 0.6 | | | 0.3 | | - | | 0.4 | | | 0.3 | | - | | 0.4 | | | Aripuanã | | 1.1 | | 1.1 | | - | | 1.5 | | | 1.5 | | - | | 1.8 | | | 1.8 | | - | | 2.1 | |
(1)2024 figures consider only the four months of operations of Morro Agudo from January to April 2024.
For the forecasted periods, consolidated average zinc grade is expected to range between 2.97% and 3.37%, consolidated average copper grade is expected to range between 0.28% and 0.35%, and consolidated average lead grade is expected to range between 0.61% and 0.74%.
Cerro Lindo:Annual zinc production is estimated to range between 80-94kt over the next two years. Zinc production at the midpoint of the 2025 guidance range is projected to decrease by 3% compared to 2024, mainly driven by lower average grades, as per the updated mine sequencing plan. For 2026, zinc production at mid-range is expected to increase by 5% over 2025, ranging between 82-94kt, as a result of production from higher-grade ore bodies in line with the mine plan. For 2027, zinc production is estimated to remain similar to 2026 levels.
Copper production at mid-range levels in 2025 is expected to decrease by 5kt over 2024 due to lower copper average grades. For 2026, copper production is forecasted to decrease by 13% over 2025, followed by a 10% increase in 2027 compared to 2026, to range between 23-25kt, supported by Cerro Lindo's mining plan.