• Total Consolidated Net Revenues: $709 million, up by 9% year-over-year.

• Adjusted EBITDA: $183 million, 111% higher than the same quarter last year.

• Adjusted EBITDA Margin: Approximately 26%, expanding by 12 basis points.

• Net Leverage Ratio: Improved to 2.2 times from 2.7 times in the previous quarter.

• Zinc Production: 83,000 tonnes, down by 5% year-over-year.

• Cash Cost: Decreased to minus $0.01 per pound from $0.34 per pound year-over-year.

• Metal Sales: 153,000 tonnes, down 1% year-over-year.

• Smelting Cash Cost: $1.16 per pound, up from $1.01 per pound year-over-year.

• Free Cash Flow Generation: $51 million for the third quarter of 2024.

• Available Liquidity: Approximately $845 million.

• Average Debt Maturity: 5.7 years with an average cost of debt of 6.36%.

• Zinc Market Price: Averaged $2,779 per tonne, up by 14% year-over-year.

• Copper Market Price: Averaged $9,210 per tonne, up by 10% year-over-year.

• Silver Market Price: Averaged $29 per ounce, up by 25% year-over-year.

• Warning! GuruFocus has detected 7 Warning Signs with NEXA.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nexa Resources SA (NYSE:NEXA) reported a 9% year-over-year increase in total consolidated net revenues for the third quarter, reaching $709 million, driven by higher average LME prices.

• Adjusted EBITDA for the third quarter was $183 million, a significant 111% increase from the same quarter last year, with an adjusted EBITDA margin of around 26%.

• The company successfully reduced its net leverage ratio to 2.2 times, down from 2.7 times in the previous quarter and 3.1 times in the third quarter of last year.

• Aripuana marked its third consecutive quarter of EBITDA growth and generated positive operating cash flow, with significant improvements in treated ore volumes.

• Nexa Resources SA (NYSE:NEXA) has reduced its cash cost guidance for 2024 by 64% from the previous guidance, reflecting higher LME metal prices and increased byproduct contributions.

Negative Points

• Zinc production declined by 5% year-over-year due to the absence of contributions from Morro Agudo and lower zinc average grades at Vazante and El Porvenir.

• Copper production decreased by 4% in the third quarter due to lower grade areas.

• The smelting segment faced a 15% increase in cash costs year-over-year, attributed to higher raw material costs and lower treatment charges.

• Aripuana's zinc production experienced a minor dip in the third quarter due to lower grades and increased talc levels in the flotation circuit.

• The performance of tailings filters at Aripuana is currently limiting capacity, necessitating the acquisition of a fourth filter, which will not be operational until 2025.