Nexa Resources (NEXA) investor relations material

Executive summary

• Net revenues reached $708 million in Q2 2025, up 13% sequentially but down 4% year-over-year, with adjusted EBITDA of $161 million, reflecting operational recovery and higher byproduct prices.

• Free cash flow turned positive at $17 million, supported by working capital improvements and liability management.

• Strategic projects like Cerro Pasco integration and Aripuana's fourth tailings filter are progressing on schedule.

• Guidance revised to reflect Q1 operational challenges, but cost discipline and long-term value creation remain priorities.

• Market volatility persisted, but higher silver and copper prices partially offset lower zinc and lead prices.

Financial highlights

• Net revenues for Q2 2025 were $708 million, up 13% sequentially but down 4% year-over-year; adjusted EBITDA reached $161 million, up 28% from Q1 but down 22% year-over-year.

• Free cash flow was $17 million, a significant improvement over the previous quarter.

• Adjusted EBITDA margin for the quarter was 23%, up sequentially but down year-over-year.

• CapEx for Q2 was $87 million, with $137 million invested year-to-date, mainly in sustaining activities.

• Net income was $13 million in Q2 2025, up from a $70 million loss in Q2 2024.

Outlook and guidance

• Full-year production and cost guidance revised downward for mining due to Q1 challenges, but smelting and copper guidance unchanged; C1 cash cost guidance for Aripuana remains unchanged.

• 2025 CapEx guidance reaffirmed at $347 million, with major disbursements expected in H2.

• Exploration and project evaluation guidance maintained at $88 million for 2025.

• Expectation of improved production, higher adjusted EBITDA, and better cash flow in H2 2025.

• Commodity price assumptions for 2H25: zinc $1.24/lb, copper $4.27/lb, lead $0.89/lb, silver $35/oz, gold $3,253/oz.