The Company estimates that zinc production will increase 8% in 2021 compared to 2020.
For the year 2022, it also forecasts growth, when its largest mining investment, the Aripuanã Project (MT), will be fully operational.
Nexa’s financial results for the fourth quarter and for the year 2020 will be released on February 11, after market closing.
Nexa ended the year 2020 with positive operating performance, despite the challenging scenario generated by the pandemic. The production guidance for the year was achieved in all metals and the sales guidance was exceeded. The production reached 313,000 tons of zinc, 28,000 tons of copper, 38,000 tons of lead and 6.8 million ounces of silver in 2020. Sales of metals (metallic zinc and zinc oxide), products with higher added value, reached 585 thousand tons, a volume above the Company’s expectations for 2020.
For Nexa’s CEO, Tito Martins, the performance of operations for the year 2020 is the result of the effort and commitment of the teams and initiatives implemented by the Nexa Way program, aimed at improving our operating performance, reducing costs and transforming the Company’s corporate culture. “We remain committed to delivering growth with capital discipline, seeking profitability for our business. Protecting the health of our employees, suppliers and host communities remains our highest priority. Thus, the business continuity measures adopted since the beginning of the pandemic should remain in force in 2021. I also point out that Nexa has a unique position in Latin America, with low-risk projects and an attractive portfolio of growth projects,” he concludes.
For 2021, zinc production is estimated to increase 8% and it will grow 7% in 2022 in relation to the current year due to the start-up of the Aripuanã project, Nexa’s largest investment in progress. The project is focused on zinc, lead and copper production. For 2023, it is possible that production will decrease 4% compared to 2022, due to the lower zinc head average grade..
Metal sales are expected to increase 7% this year compared to 2020. For 2022-2023, the upward trend is expected to continue, reaching between 615-640 thousand tons, as refineries will continue operating with higher utilization rates.
CAPEX investments are expected to reach US$ 450 million in 2021
For this year, CAPEX investments are estimated at US$ 450 million, of which US$ 232 million will be allocated to the Aripuanã Project. Throughout 2020, there was an effort to preserve cash and, consequently, non-expansion investments were reduced, maintaining all the essential investments to operate safely. In 2021, the Company expects to resume sustaining and HSE investments, similar to pre-pandemic levels, in order to continue building a sustainable long-term business
In the mineral exploration area, Nexa will continue its efforts to expand its mineral reserves and resources, which should add an investment of US$ 51 million in 2021. This amount involves the development of new greenfield projects and operating mines. The amount of US$ 20 million will also be earmarked for carrying out mining projects in FEL1 and FEL2 phases. Furthermore, US$ 10 million should be earmarked to the social and economic development of the communities where the company operates.
Nexa’s financial results for the fourth quarter and for the year 2020 will be released on February 11, after market close.
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 metallurgy 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, in order 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, visit http://www.nexaresources.com
