Nexa Resources (NEXA) Q4 2024 earnings summary

Executive summary

• Achieved second-highest annual Adjusted EBITDA in company history at US$714M, with net loss reduced to US$187M for FY2024, reflecting improved operational performance and favorable metal prices.

• Generated positive consolidated free cash flow for the first time since Aripuanã investments, increasing cash balance and reducing net debt leverage to 1.7x at year-end.

• Advanced strategic projects, including Cerro Pasco Integration Project and Aripuanã tailings filter, and executed portfolio optimization through divestments.

• Maintained production within annual guidance, with Capex and Opex below revised targets.

• Adopted a new dividend policy targeting up to 20% of free cash flow with a minimum of US$0.08/share.

Financial highlights

• Net revenues reached US$2,766M in 2024, up 8% year-over-year, driven by higher zinc prices and increased smelting sales volume.

• Adjusted EBITDA rose 76% to US$714M, with margin improving to 26% from 16% in 2023.

• Net loss narrowed to US$187M from US$292M in 2023; adjusted net loss was US$80M.

• Free cash flow was US$163M for 2024, reversing negative FCF in 2023.

• Available liquidity at year-end: US$960M, including undrawn US$320M credit facility.

Outlook and guidance

• 2024 mining production guidance achieved for zinc, lead, and silver; copper exceeded guidance.

• 2025 focus on increasing treated ore volumes, improving recoveries, and further cost optimization at Aripuanã.

• Cerro Pasco Integration Project Phase I underway, targeting increased tailings storage and extending mine life by 10+ years.

• Sustaining CapEx for 2025 guided at US$316M, with continued focus on exploration and ESG initiatives.

• Working capital effects expected to be neutral on an annual basis, with quarterly volatility.