Nexa ended the first quarter of 2021 with robust results, reaching US$ 603 million in consolidated net revenue, accounting for an increase of 36% compared to the first quarter of the previous year, mainly due to the better international prices of metals and higher volumes sold. In 2020, since the beginning of the pandemic, the Company has been adopting strict health and safety protocols to mitigate risks of spreading the virus in its operations, projects and neighboring communities.

In the first three months of the year, Nexa produced 77,000 tons of zinc, slightly higher than the volume produced in the same period of the previous year, while copper production totaled 8,000 tons, 13% higher compared to the first quarter of 2020. In turn, lead production reached 10,000 tons, accounting for a 10% increase. Metal sales reached 148,000 tons, a volume 2% higher than in the first three months of the previous year.

The increase in production and sales, coupled with cost management and better efficiency of operations, caused Nexa’s adjusted EBITDA to grow 312% compared to the first quarter of 2020, totaling US$ 180 million, against US$ 44 million in the same period of last year. Thus, EBITDA performance for the period was the third best in the company’s history. The company’s net income totaled US$ 32 million, against a loss of US$ 613 million in the first quarter of 2020.

“We have achieved sustainable operating and financial results, driven by the evolution of metal prices, higher sales volume, resilience and management efforts by our teams. Our balance sheet remains solid, and we continue focusing on protecting our people, ensuring the continuity of our businesses and completing our main project under construction in Aripuanã. Furthermore, we are improving our ESG practices, in the environmental, social and governance areas and, as of this year, we have ESG metrics linked to the bonus of our executives,” says Tito Martins, CEO of Nexa.

Another highlight for the quarter was the Nexa Way Program, aimed at improving the business portfolio and cultural transformation, which continues generating positive results. Since its implementation in 2019, we estimate an annualized impact on the Company’s EBITDA of US$ 105 million.

In relation to the measures to combat Covid-19, Nexa invested US$ 4.2 million in the quarter for the continuity of health protocols in operations, management of the impacts generated by social distancing and support to neighboring communities.

CAPEX reaches US$ 84 million in the quarter

In the first quarter, the amount of US$ 84 million was invested, with the Aripuanã (MT) project receiving US$ 40 million in the period. At the end of March, the progress of Aripuanã’s physical work was around 80% and, moreover, 90% of the equipment had already been delivered. The start-up of the project is maintained for the beginning of 2022, with a production forecast of 108,000 tons of zinc equivalent in the first year of activity.

In turn, investments in mineral exploration totaled US$ 11 million, 19% of the total allocated to greenfield projects and 37% to brownfield projects. The remaining contributions were directed towards innovation, technology and social projects.

Zinc production forecast for 2021 is revised

For the year, the forecast for the production of copper (26-30 thousand tons), lead (42-49 thousand tons) and silver (8,531 – 9,317 thousand ounces) previously released is maintained. On the other hand, there was a decrease in the expected zinc production due to a temporary production stoppage in Atacocha (Peru) in the first quarter and the Extremo Norte mine in Vazante (MG), now in the second quarter. As a result, the production forecast moved to the range of 310-342 thousand tons, against 322-353 thousand tons previously expected.

Regarding sales expectation for the year, there was no change, remaining between 615 and 635 thousand tons.

About Nexa

Nexa Resources is one of the world’s largest producers of zinc, and also produces copper and lead. It has over 60 years of experience in the mining and smelting segments, with operations located in Brazil and Peru and offices in Luxembourg and the United States, supplying its products to every continent on the planet. Its employees work every day focused on building the future of mining, to be increasingly sustainable and innovative, with the best safety practices and respect for people and the environment. Since 2017, its shares of stock have been traded on the New York and Toronto Stock Exchanges, and its majority shareholder is Votorantim S.A. For more information on Nexa or our full Earnings Release 1Q21, visit www.nexaresources.com

São Paulo, April 29, 2021.