Nexa Resources S.A. Q4 FY2025 earnings call

Bullet points: - Mining: Strong zinc production in Q4 with Aripuanã achieving highest quarterly production, full year production met guidance. Cost management and favorable prices contributed. - Aripuanã: Achieved highest production in Q4, tailings filter installation on track, commissioning in first half 2026. - Cerro Pasco Integration Project: Advanced preparatory studies for Phase 2, focus on 2026 Phase 1 construction. - Exploration: Solid results across key assets, confirming mineralized extensions. - Smelting: Sales in line with guidance, cost control efforts noted

Mining: Fourth quarter zinc production 91,000 tons (9% q-o-q increase), full year 316,000 tons (achieved guidance). Consolidated mining cash cost net of by-products improved sequentially to negative $0.58 per pound, full year cash cost negative $0.30 per pound below guidance. Net revenues $532 million, adjusted EBITDA $266 million in Q4, full year net revenues ~$1.6 billion, adjusted EBITDA $658 million. Smelting: Q4 sales 142,000 tons, full year 567,000 tons. Q4 cash cost $1.41 per pound, full year $1.28 per pound. Net revenues $573 million, adjusted EBITDA $34 million in Q4, full year net revenues ~$2 billion, adjusted EBITDA $113 million

Bullet points: - Anticipate gradual improvement of mining supply in 2026, supporting modest recovery in treatment charges. - Zinc prices expected supported in first half 2026 by tight inventories, resilient demand, softer US dollar. - Aripuanã commissioning on track for first half 2026, reaching full operational capacity in second half. - Cerro Pasco Phase 1 construction and commissioning activities to be intensified in 2026

Bullet points: - Impact of El Niño phenomenon on operations and logistics in Peru, although no current production impact reported. - Political and economic uncertainties in Peru affecting the business environment. - Fluctuations in metal prices and market conditions impacting financial performance

Q: Regarding seasonal rainy period at Aripuanã, A: Ignacio Rosado explained production evolution during rainy season, fourth filter progress and expected full capacity in second half 2026.

Q: On silver streaming, A: José Carlos del Valle said silver streaming agreement step down in May 2026, not currently contemplating additional silver streaming.

Q: On Cerro de Pasco integration project Phase 2, A: Ignacio Rosado said no specific date yet, drilling finding high-grade reserves delaying phase 2.

Q: On electoral environment in Peru, A: Omar Avellaneda discussed political noise but economic development and mining relationships not significantly impacted.

Q: On debt repayment plan, A: Orlando Barriga said excess cash to be used for dividends and debt repayment.

Q: On silver and gold hedging, A: José Carlos del Valle provided details on silver hedging floor around $52 and cap around $84