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Nexa Resources Q1 2025 Earnings Report
Nexa Resources reported a net income of US$29 million and an Adjusted EBITDA of US$125 million in the first quarter of 2025.
Key Takeaways
Nexa Resources delivered resilient Adjusted EBITDA in Q1 2025, demonstrating the strength of its integrated business model, ongoing cost discipline, and steady progress on strategic priorities, despite operational challenges at certain sites. The company successfully executed a US$500 million bond issuance, extending its debt profile and optimizing its capital structure. Zinc market fundamentals continue to support a constructive outlook in 2025, despite potential volatility.
Net income amounted to US$29 million, a significant improvement from a net loss of US$12 million in 1Q24.
Adjusted EBITDA was US$125 million, down 3% compared to US$128 million in 1Q24.
Zinc production totaled 67kt, down 23% from 1Q24, primarily due to lower output across all units except Atacocha.
The company successfully executed a US$500 million bond issuance, extending its debt profile and optimizing its capital structure.
Forward Guidance
Nexa reaffirms its 2025 consolidated mining production guidance for all metals and anticipates a slight increase in mining and smelting volumes in 2Q25. The company expects ongoing improvements in operational efficiency and cost management to positively impact overall performance.
Positive Outlook
- Cerro Lindo: Zinc production expected to be in line with or slightly higher than 1Q25 levels, with copper production increasing due to higher-grade stopes.
- El Porvenir: Zinc production expected to increase compared to 1Q25, driven by access to higher-grade zones and higher treated ore.
- Atacocha: Higher production of all metals anticipated in 2Q25 due to increased treated ore volumes and mining activities in higher-grade areas, supported by the end of the rainy season.
- Vazante: Ore throughput and zinc head grade expected to be slightly higher in 2Q25, resulting in a modest increase in zinc production.
- Aripuanã: Higher production of all metals anticipated in 2Q25, supported by expected increases in average head grades, enhanced plant and tailings filter performance, and seasonal benefits from the end of the rainy period.
Challenges Ahead
- Zinc treatment charges (TCs) are expected to see a potential downward adjustment, with benchmark TCs agreed at US$80/t, the lowest in over 50 years.
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