Nexa Resources S.a Stock Earnings Reports

Nexa Resources delivered a strong start to 2026 with adjusted EBITDA of $283 million (up 126% YoY) and net income of $118 million ($0.67/share). Key drivers were a favorable metal price environment (notably silver), higher sales volumes, and operational improvements (Aripuana record production and Brazilian smelter recoveries). Net leverage improved to 1.59x, and liquidity remained healthy with $716 million available (including an undrawn $320 million revolver). First-quarter free cash flow was negative $126 million due to normal seasonality (working capital buildup, tax payments, bonuses), expected to reverse later in the year. Operational notes: zinc production rose 18% YoY to 79 kt, smelting sales were 147 kt, and cash costs (net of byproducts) remained very competitive. Aripuana commissioning (4th tailings filter) is nearing completion to reduce weather-related disruptions; Cerro Pasco Phase 1 remains on schedule for construction completion in Q3 2026 and project finalization in Q4 2026 with pumping to start in 2Q 2027; Phase 2 timing (Picasso shaft/underground integration) is under evaluation with potential clarity in H2 2026. Smelter margins remain pressured by very low treatment charges (TCs), though byproduct streams (sulfuric acid, silver, copper) are providing significant offset. Management reiterated capital allocation priorities: disciplined deleveraging (targeting net leverage comfortably below 1.7x in 2026 and longer-term ambition toward ~1.0x), sustained investment (2026 CapEx guidance $381 million reaffirmed), and maintaining shareholder returns while pursuing value-accretive growth opportunities. ESG and community programs advanced, and the Cerro Lindo silver streaming step-down (65% to 25%) materially increases Nexa’s share of silver revenues starting Q2, improving cash generation.