Nexa Resources S A : Earnings Call Presentation 1Q26
NEXA
Published on 05/07/2026 at 08:56 am EDT
Earnings Conference Call
1Q26
May 7, 2026
Highlights 1Q26
Key Operational Results
Key Financial Results
Zinc Production (mining)
79kt
Net Revenues (US$)
888 mm
Adjusted EBITDA1 (US$)
283 mm
+18%
vs. 1Q25
-13%
vs. 4Q25
+42%
vs. 1Q25
-2%
vs. 4Q25
+126%
vs. 1Q25
-6%
vs. 4Q25
Total Zinc Sales (smelting)
147kt
Net Leverage2
1.6x
Free Cash Flow (US$)
(126) mm
+13%
vs. 1Q25
+4%
vs. 4Q25
-0.5x
vs. 1Q25
-0.1x
vs. 4Q25
100 mm
vs. 1Q25
177 mm
vs. 4Q25
Favorable metal prices, improved performance at Aripuanã, and higher metal sales drove solid results: US$ 118 million net income | EPS US$ 0.67
(1) Refer to "Use of Non-IFRS Financial Measures" for further information. Adjusted EBITDA excludes items presented in the "Net Income reconciliation to Adjusted EBITDA" section of our earnings release; (2) Net Leverage ratio (Net debt/ LTM Adjusted EBITDA).
Operating Performance | Mining Segment
Zinc Production (kt) Consolidated Costs
-13%
+18%
Cash cost net of by-products¹
0.08
US$(0.76)/lb
vs. 4Q25 vs. 1Q25
91 1Q26 Below guidance
79
67
Cost per ROM
US$(0.76)/lb 1Q26
(0.11)
2026 Guidance
57.2
49.5
US$56.9/t 1Q26
Upper Range Lower Range
US$56.9/t
vs. 4Q25 vs. 1Q25
Zn Production
ו Down QoQ: driven by lower treated ore volumes due to constraints at the Peruvian mines in 1Q26.
ו Up YoY: supported by improved ore grades across all mines.
1Q25 4Q25 1Q26
(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine.
1Q26 In line with guidance
2026 Guidance
Financial Highlights 1Q26
Net Revenues
US$460 mm
Adj. EBITDA
US$231 mm
Adj. EBITDA Mrg.
50%
1Q26 Performance
A long-life, Tier-One Asset Delivering Steady Improvements
Treated ore: 406kt
Zn production: 13.0kt
-5%
+4%
vs. 4Q25
4th tailings filter
New quarterly record production, reflecting continued operational stability
Highlights: 4th filter installation concluded Commissioning started
Achieved
Ongoing
Next steps
July 2022
Ramp up began 1st Commercial sale
July 2024
Ramp up concluded Fully operational
2H25
4th filter arrival and installation has commenced
1H26
4th filter installation and commissioning
2H26
Incremental capacity
LOADING…
100%
Operation: improved operational stability, higher plant utilization and meaningfully higher head grades
Exploration: positive results at Massaranduba (e.g.: 16.6m
intercept @ 9.63% Zn and 3.03% Pb) | 5
1Q26 | Cerro Pasco Integration
Phase I Execution making steady progress. Phase II preparatory studies advancing
Phase I
ו EP TSF raising: 4070 level
ו Tailings Pumping System EP (ongoing)
ו ATA TSF Raising: 4131 level (ongoing)
1Q26
The slope stabilization has been completed.
Civil works and structural assembly for the pump building have begun.
2Q26
Completion of civil works and electromechanical installation of main equipment (thickener and GEHO pumps).
3Q26
Completion of the construction of the project's pumping system and start of commissioning.
4Q26
Initiation of the operating license process for the pumping system and start of ramp-up.
Cerro Pasco Integration Project: Aerial view of the Tailings Pumping System construction site, including the Tailings Thickener and Pump Station.
Operating Performance | Smelting Segment
Total Sales | Zn Metal + Oxide (kt) Consolidated Costs
+4%
Cash cost net of by-products¹
1.15
US$1.40/lb
1.34 1Q26
US$1.40/lb
vs. 4Q25 vs. 1Q25
130 142 147
1Q25 4Q25 1Q26
Zn (metal + oxide) sales
ו Up QoQ and YoY: supported by ongoing operational improvements at the
Brazilian smelters and continued solid performance at Cajamarquilla.
Consolidated Sales | By-products
461
1Q26 above upper end of guidance
Conversion Cost
US$0.34/lb
vs. 4Q25 vs. 1Q25
1Q26 In line with guidance
2026 Guidance
0.34
0.31
US$0.34/lb 1Q26
2026 Guidance
Upper Range Lower Range
Financial Highlights 1Q26
Net Revenues
US$609 mm
Adj. EBITDA
US$51 mm
Adj. EBITDA Mrg.
8%
| 7
135
425
428
160 153
2.3
1.7
1.2
Sulfuric Acid (kt)
Silver Content (koz)
Copper Cement (kt)
C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per smelter.
1Q26 | Consolidated Financial Results
Net Revenues1 (US$ million)
LME Zinc Prices (US$/t)
2,838
3,165
3,241
1Q26 Net Revenues
QoQ: lower mining sales volume,
627
-2%
903 888
-2%
(vs. 4Q25)
+42%
(vs. 1Q25)
partially offset by higher
smelting sales.
YoY: higher smelting sales, increased by-products contribution + higher prices (Zn, Cu, Ag and Au).
1Q25 4Q25 1Q26
Adjusted EBITDA2 (US$ million)
Adj. EBITDA Margin
1Q26 Adj. EBITDA
QoQ: stronger by-products
33% 32%
20%
-6%
300 283
-6%
(vs. 4Q25)
+126%
(vs. 1Q25)
contribution partially offsetting higher unit costs.
YoY: higher mining and smelting volumes combined with stronger metal prices.
125
1Q25 4Q25 1Q26
Adj. EBITDA Margin 32%
(vs. 33% in 4Q25)
(1) Includes intersegment results; (2) Adjusted EBITDA excludes the items presented in the "Net Income (Loss) reconciliation to Adjusted EBITDA" section of our earnings release - US$(3) million in 1Q26, US$5 million in 1Q25 and US$29 million in 4Q25.
1Q26 | Investments
Capex (US$ million)
27
89
122
5
129
381
8
2026 Guidance
86
72
16
21
1Q26
18
11
8
49
16
33
Mineral rights Exploration
(mine development)²
ו US$72 million invested in 1Q26
ו 2026 guidance
unchanged
Mineral Exploration and Project Evaluation (US$ million)
ו US$16 million in 1Q26
ו 2026 guidance unchanged
9
4
2
1
2026 Guidance 1Q26
| 9
(1) Modernization, innovation, energy and other corporate investments. (2) Exploration mine development refers to the "secondary" development to support exploration program.
1Q26 | Free Cash Flow
(US$ million)
Avg prices:
Zn (US$/t): 3,241 / Cu (US$/t): 12,844 / Pb (US$/t): 1,931
Ag (US$/oz): 84.3 / Au (US$/oz): 4,873
FX (3)
(122)
(81)
(25)
and Dividends (Net)
Dividends paid/received (Net) (4)
Repayment Repayment
Debt
Loans, Debt
(126)
FCF
Interest paid
and Taxes
21
25
6
Debt repayment/Loans
and Dividends payment
283
(72)
(283)
Cash before Loans and
308
Adjusted
EBITDA
Other non-operational (1)
Operating cash flow before working capital
Working capital & Other variations (2)
Capex
Strong cash from Ops. 1Q26 FCF reflecting impact from seasonal working capital and other variations, expected to reverse in subsequent quarters.
(1) Adjustments to reconcile Adjusted EBITDA to cash provided by operations; (2) Breakdown available in the Financial Statements "Consolidated statement of cash flows"; (3) Foreign exchange effects on cash and cash equivalents; and (4) Dividends paid to non-controlling interests (Pollarix and Nexa Peru) and Dividends received in cash from associates.
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1Q26 | Liquidity, Indebtedness and Credit Rating
Debt profile (as of Mar 31, 2026). Long-term avg. debt maturity: 7.2 years @6.27% avg. cost
Debt amortization schedule (US$ million)
(1)
RCF
716
Gross debt: US$1,768
608
Bonds Outstanding
320
182
103
51
108
111
396
(2)
Total Cash
141
530
8
8
500
600
Rating
Agencies
Rating
Outlook
BBB-
Stable
BBB-
Stable
Ba2
Stable
Investment Grade
16 9 7
Cash 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 &
Onwards
Net Debt(4)/LTM Adj. EBITDA
2.1x 2.3x 2.2x 1.7x 1.6x
1,488 1,515 1,479 1,303 1,481
Solid Liquidity (3)
US$716 mm
Net Debt
US$1,481 mm
Net leverage
1.59x
1Q25 2Q25 3Q25 4Q25 1Q26
Note: (1) 5 yrs sustainability-linked US$320 million Revolving Credit Facility effective on October 20, 2023; (2) Cash, cash equivalents and financial investments; (3) Including the RCF; (4) Net Debt, as defined as, Gross debt (US$1,768 million) minus cash and cash equivalents (US$390 million), minus financial investments (US$6 million), plus negative derivatives (US$8 million), plus Lease Liabilities (US$117 million). It does not include the financial instrument related to the offtake agreement.
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Zinc and Copper Markets
Zinc LME price evolution1 (US$/t)
announcem
Tariff's
ents
3,185
2,927
Jan/25 Mar/26
Copper LME price evolution1 (US$/t)
Tariff's
announcements
12,160
8,686
Jan/25 Mar/26
(1) Based on daily prices until March 31, 2026, as reported by the London Metal Exchange.
Zinc: Concentrate tightness and low LME inventories continue to support prices, with Zn LME up 4% in the period to US$3,185/t
ו Smelter margins remain compressed: spot domestic TCs in China at negative US$17/t and imported at US$17/t CIF. By-products providing relief.
2026 Outlook:
ו Limited TC recovery expected (annual benchmark TC at US$85/t) >>
implying continued smelter margin pressure.
ו Prices to remain supported by tight concentrate supply, low exchange inventories, and resilient demand (galvanizing and infrastructure end-uses).
ו Higher energy costs (Europe) may further constrain refined supply.
Copper: Fundamentals remain tight despite a policy-driven inventory overhang. Cu LME down 3% in the period to US$12,160/t
Spot TC/RCs averaged negative, throughout the period, reflecting
severe concentrate scarcity and structural supply deficit.
2026 Outlook:
ו Near-term volatility from trade policy and inventory dynamics.
ו Structural fundamentals remain constructive in the long-term, supported by electrification, energy transition and decarbonization.
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Silver and Gold Markets
Silver LBMA price evolution1 (US$/oz)
+147%
73
29
Jan/25 Mar/26
Gold LBMA price evolution1 (US$/oz)
4,608
2,647
Jan/25 Mar/26
(1) Based on daily prices until March 31, 2026, as reported by the LBMA - London Bullion Market Association.
Silver: set new multi-year highs at US$121.6/oz before retracing
ו Underlying fundamentals remain supportive; with a sixth consecutive annual supply deficit projected for 2026.
ו Structural demand supported by solar PV, electric vehicles, AI infrastructure, and data center-build-out.
ו Silver's dual monetary and industrial role continues to underpin
investment interest.
ו Nexa's Exposure:
ו Annual silver production of 11MMoz, positioning Nexa among the
world's largest silver producers.
ו In April 2026, Cerro Lindo's silver streaming stepped down from 65% to 25%, increasing the share of production realized at spot prices by ~40 p.p and expanding silver-linked EBITDA.
ו Silver by-product credits continue to support cash cost reduction.
Gold rally extended in 1Q26, supported by:
ו i. central bank accumulation; ii. safe-haven inflows; iii. weaker U.S.
dollar and; iv. heightened geopolitical uncertainty.
2026 Outlook:
ו Both metals continue to provide counter cyclical support to Nexa's polymetallic portfolio and offer diversification benefits relative to base metals exposure.
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ESG 1Q26 Highlights & Strategic Governance
Sustainability & Community Engagement
ו Expansion of women's empowerment programs in Peru, combining skills training and income generation.
ו Community investments advancing entrepreneurship, employment access and local infrastructure in Brazil and Peru.
ו Delivery of education and productive infrastructure projects, benefiting local
communities near Cajamarquilla and Aripuanã.
Decarbonization & Innovation
ו Operational optimization projects at Cerro Lindo delivering reductions in cement and water consumption.
ו Advancement of AI-based geomechanical monitoring, strengthening underground safety and risk management.
ו Focus on operational efficiency and low-carbon solutions across mining operations.
Industry Leadership & Governance
ו Publication of the 2025 Annual Sustainability Report, providing comprehensive disclosure of environmental, social, economic and financial performance.
ו Strengthened HS&E and ESG governance: first ESG & HS&E Leaders Meeting and Zero
Harm alignment.
ו Progress on environmental permitting and regulatory alignment at El Porvenir and Atacocha.
ו External recognition reinforcing Nexa's governance standards, legal excellence and supplier performance (strong compliance, operational reliability and partnership mgmt.)
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Aripuanã
ו Fourth tailings filter on track: unlock full production to strengthen cash generation
ו LoM1 = 15y (reserves)²; 25y+ (resources)³
Cerro Pasco Integration Project
ו Well-known, high potential mineral district
ו Attractive return: >15y4 LoM & NSR uplift5
Mineral Exploration
ו Cerro Pasco, Cerro Lindo & Vazante: continued success in extending
LoM and strengthening our value-added zinc integration
Growth
ו Actively looking for accretive value-generating opportunities in
mining-friendly jurisdictions
Strengthening balance sheet
Deleveraging strategy ongoing to boost financial flexibility. Balanced capital allocation, including returning cash to shareholders via dividends
Financial and operational discipline
Prioritizing sustainable cash flow generation supported by
operational discipline
Active ESG strategy
Tracking progress on public commitments, advancing our journey
toward more sustainable mining.
(1) LoM = Life of Mine; (2) LoM based on current Mineral Reserves and Mineral Resources inventory as of Dec. 31, 2025, considering the updated LoM plan; (3) Considering 15 yrs of Mineral Reserves + 50% of the inferred Mineral. Resources as of Dec. 31, 2025; (4) LoM considering part of the mineral resources; (5) Avg. NSR of the LoM (~5-10% higher), considering project implemented. Based on internal calculations. Subject to changes depending on market conditions.
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Strategic Catalysts & Our Focus and Priorities
IR Contact: [email protected] https://ir.nexaresources.com
Disclaimer
Nexa Resources SA published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 12:55 UTC.