Announcement • Oct 24

Nexa Resources S.A. Provides the Drilling and Assay Results from the Third Quarter of 2024

Nexa Resources S.A. provided the drilling and assay results from the third quarter of 2024. Nexa’s 2024 drilling strategy emphasizes near-mine expansion and brownfield and infill drilling, with additional exploration drilling planned for promising greenfield projects. Exploration expenditure and drilling execution are approximately 14% behind schedule, mainly due to operational challenges and rainfall impacting activities at Cerro Lindo. By the end of the third quarter, cumulative drilling reached 170,008 meters comprising 44,658 meters from exploration drilling and 125,350 meters from mining infill drilling. Total exploration drilling for 3Q24 amounted to 18,850 meters, with 11,391 meters completed in Peru (using eight rigs), 6,712 meters in Brazil (using six rigs), and 746 meters in Namibia (using one rig). This includes 5,193 meters dedicated to early-stage greenfield projects in Brazil and Peru. Drilling activities in 3Q24 were behind schedule, primarily due to technical and mechanical issues affecting early-stage greenfield projects in Brazil, Peru, and Namibia, resulting in of 2,496 meters less drilling than was planned. For the next quarter, planned exploration drilling includes 13,475 meters in Peru (with nine rigs), 5,350 meters in Brazil (with six rigs), and 1,450 meters in Namibia (with two rigs), totaling 20,275 meters. Highlights: Cerro Lindo, Orebody 8B: 4.6 meters at 2.75% Zn and 0.47% Cu in drill hole PECLD07556 from 544.95 meters. Aripuanã, Massaranduba target: 4.1 meters at 0,61% Cu in drill hole BRAPD000198 from 651.4 meters. Vazante, Sucuri Norte orebody: 3.3 meters at 7.13% Zn in drill hole BRBVZEND000067 from 469.0 meters. El Porvenir, Integración target: 19.2 meters at 4.53% Zn in drill hole PEEPD02781 from 297.9 meters; 5.5 meters at 5.84% Zn and 1.58% Cu in drill hole PEEPD02802 from 452.8 meters. 14.4 meters at 4.02% Zn and 0.50% Cu in drill hole PEEPD02802 from 501.0 meters. Cerro Lindo: In 3Q24, the exploration program remained focused on expanding known orebodies to the southeast of Cerro Lindo. Drilling activities targeted the extensions of mineralized zones in Orebodies 8B and 8C. During the period, 5,437 meters of exploration drilling and 11,440 meters of mining infill drilling were completed, totaling 19,123 meters and 35,641 meters in 9M24, respectively. The drilling results confirmed the continuity of mineralization in Orebody 8B, with intercepts including 3.90 meters at 2.39% Zn, 0.20% Cu, and 6.05 g/t Ag, and 4.55 meters at 2.75% Zn, 0.47% Cu, and 10.81 g/t Ag. The Aripuanã exploration strategy remained focused on the Massaranduba target, aiming to identify new mineralized zones. In 3Q24, a total of 2,852 meters of exploration drilling and 9,612 meters of mining infill drilling were completed, totaling 4,635 meters and 27,971 meters in 9M24, respectively. Drilling results from hole BRAPD000193 confirmed the continuity of mineralization, with an intercept of 4.0 meters with 2.72% Zn, 0.67% Pb, and 28.99g/t Ag. In fourth quarter of 2024, it plans to drill 2,650 meters at the Massaranduba target using two rigs to further identify new mineralized zones. The brownfield exploration program at Vazante continues to target the expansion of the mineralized zones near the mine. In 3Q24, a total of 3,382 meters of exploration drilling was completed, with 1,915 meters at the Sucuri target, 97 meters at Vazante Sul, 345 meters at Extremo Norte, and 1,025 meters at Lumiadeira, totaling 5,554 meters in 9M24. Additionally, 9,076 meters of mining infill drilling were completed at the Vazante mine with five rigs, totaling 30,391 meters in 9M24. To address drilling delays, a contingency plan was implemented, which involved adding an additional drill rig and repairing existing rigs. During 3Q24, seven drill holes were completed. Drilling results from hole BRBVEND000067 continue to confirm mineralization at the northern portion of the Sucuri target, with an intercept of 2.0 meters at 7.33% Zn, 0.23% Pb, and 1.62g/t Ag. Assay results are pending for six completed drill holes; however, visual indications of mineralization were observed. In 3Q24, the exploration drilling program focused on the Integración target, with 2,315 meters drilled during the quarter, totaling 8,526 meters in 9M24, and an additional 11,084 meters of mining infill drilling was also completed in the period, totaling 25,095 meters in 9M24. The results continue to confirm the extension of the mineralized zone at the Integración, as well as the attractiveness of this target. Significant intercepts include 20.7 meters at 2.15% Zn, 0.56% Pb, 0.07% Cu, 19.75g/t Ag, and 0.08g/t Au, in hole PEEPD02839, and 8.1 meters with 14.49% Zn, 4.52% Pb, 1.08% Cu, 176.05g/t Ag, and 0.36g/t Au in hole PEEPD02781. No drilling activities are planned at Atacocha for the remainder of 2024. However, as mentioned in the 2Q24 report, some drill holes will be conducted within the Atacocha underground mine, aiming to extend the Integración mineralized breccia. The results of these activities will be reported in the El Porvenir section in future reporting. Namibia holds strategic importance for Nexa in advancing copper exploration projects and mining activities outside Latin America. The Namibia joint venture is well-positioned within a copper-rich province in the northern part of the country, targeting high-grade, sediment-hosted copper deposits along the prolific Tsumeb belt. As planned, drilling activities resumed in 3Q24 with the mobilization of one rig to Tsumeb East target, located a few kilometers from the well-known Tsumeb Cu-Pb deposit in a similar geological setting. A total of 746 meters of exploration drilling was completed in 3Q24, with one finalized hole and another in progress. The recent completion of the AMT airborne survey, coupled with detailed geological mapping, has delineated high-priority anomalies at the Tsumeb East target. In fourth quarter of 2024, it plans to drill these anomalies, targeting 1,450 meters with two rigs.

Seeking Alpha • Nov 08

Nexa Resources: Be Prepared For More Downside Potential

Summary The macroeconomic environment does not look favorable for metals. Investors should consider changing their stance from buy to hold for US-listed zinc stocks, including Nexa Resources S.A. Lower metal production and prices combined with a strong US dollar could negatively impact cash flow and delay expansion projects. The Macroeconomic Environment is Not Developing Favorably for Metals As the US Federal Reserve raises interest rates amid persistently high inflation, fears of a recession are growing among investors. If the hawkish stance convinces consumers to rein in their spending, a recession is inevitable. A recession would weigh on many markets, with base metals leading the way. A slowdown in consumption that triggers a recession affects demand for base metals as these commodities are used to manufacture a wide range of products. A decline in the demand for these commodities will put downward pressure on prices. Analysts predict that within a year zinc will fall 11% from its current $2,905.50 a ton, copper will fall 7% from its current $3.64 a pound, and lead will fall 9% from its current $2,005.55 per ton. Gold and silver are also forecast lower a year from now, with the yellow metal down 4% from the current $1,677.72 an ounce and the gray metal down more than 8% from the current $20,720 an ounce. Not the Time for a Bullish Approach to US-Listed Metal Miners As such, investors should reconsider their holdings in US-traded metal mining stocks given the macroeconomic picture that is gradually unfolding for the value of their production. Among those stocks that investors should consider changing their stance from buy to hold is Nexa Resources S.A. (NEXA). In addition to expectations of lower commodity prices, some underperforming mining operations are contributing to the current downside risk to Nexa Resources S.A. stock. Nexa Resources S.A. Based in Luxembourg, Nexa Resources produces zinc (main production) and other base and precious metals (secondary production) from five underground mineral deposits located in South America as follows: 3 Productions are in the Peruvian Central Andes: Cerro Lindo, El Porvenir and Atacocha Cerro Lindo is an underground polymetallic mine in the Peruvian province of Chincha (about 270 km southeast of Lima). It has been mining base metals such as zinc, copper, lead, and silver since 2007. Cerro Lindo is one of the world's largest zinc producers. Nexa Resources owns and operates the mine through its subsidiary in Peru. Currently, Cerro Lindo has reserves that are estimated to be able to support mining activities until at least 2029. As of late 2021 estimates, the Cerro Lindo mineral deposit contained 44.04 million tons of proven and probable mineral reserves grading 1.43% zinc, 0.2% lead, 0.62% copper, and 22.3 grams of silver per tonne of ore (g /t). In the first 9 months of 2022, Cerro Lindo sold 66,000 tons of zinc, down almost 17% year-on-year. This was mainly the result of an 18% year-over-year decline in zinc output to 77,600 tons. Looking ahead to the full year 2022, Cerro Lindo is expected to produce between 81,000 and 86,000 tons of zinc, between 26,000 and 33,000 tons of copper, between 11,000 and 12,000 tons of lead, and between 3.9 million and 4.1 million ounces of silver. Compared to 2021, zinc production will be 16-21% lower, copper production will be 11-12% lower, lead production will be 6.3-14% lower and silver production will be 2.6-7.3% lower. These declines in metal production are expected as miners are currently dealing with reduced ore throughput that is delivered at the processing plant, while the concentration of the metal in the ore is also currently trending unfavorably. This situation, coupled with anticipated lower metal prices, should not allow the company to increase the profitability of its operations. This could impact the stock price as the stock market doesn't welcome lower sales and lower profit margins. Margins could also shrink if lower production means higher costs. El Porvenir is an underground polymetallic mine owned and operated by Nexa Resources S.A., through its subsidiary in Peru. El Porvenir is located in the central Andean region of Peru, more precisely in the Peruvian province of Pasco, about 13 km from the city of Cerro de Pasco. The miner currently produces zinc as the main product and lead, copper, and precious metals such as gold and silver as by-products. The mine has been in operation since 1949 and is expected to produce metals over the next few years through 2028. As of December 31, 2021, El Porvenir hosted 15.32 million tons of minerals in Proven and Probable Reserves grading 3.57% zinc, 1.04% lead, 0.2% copper, and 69.5 g/t silver. In the first 9 months of 2022, El Porvenir sold 39,900 tons of zinc, a slight increase of 5% over the previous year. Lower zinc sales may have been impacted by the company's decision to focus mining activities in certain areas of the mine deposit in order to exploit a higher concentration of lead and especially silver in the mineral. As for the expected production of the metals for 2022, these should not be very exciting for the market as they foresee the following deviations from 2021 levels. Zinc production should fluctuate between -4.7% and +3% to 49,000 to 53,000 tons, copper production should fall 0.4% to 300 tons, lead production should fluctuate between -15.3% and +1.7% to 15,000 to 18,000 tons, while silver production should fluctuate between -11.4% and +2.9% to 3.1 million to 3.6 million ounces. This expected production combined with a lower price for the metal will certainly not help El Porvenir increase the profitability of the mine. Atacocha is a polymetallic mine where metals are extracted using underground and open-pit mining techniques. The mine is owned by Nexa Resources S.A. and is operated by its Peruvian subsidiary. The mineral asset is located in the Peruvian province of Pasco. The mine has been producing zinc, copper, lead, silver, and gold since 1939 and has a mine life of 3 years to 2025. The Atacocha open pit deposit contained 3.28 million tons of Measured Mineral Reserves grading 1.1% zinc, 0.81% lead, 28.9 g/t silver, and 0.21 g/t gold as of late 2021. The Atacocha underground deposit contained 3.28 million tons of Measured Mineral Reserves grading 1.1% zinc, 1.98% lead, and 101.1 g/t silver as of late 2021. In the first 9 months of 2022, Atacocha sold 6,700 tons of zinc, a 37.6% increase over the previous year. However, Atacocha currently accounts for less than 3% of the company's total sales of zinc. Zinc production was 8,500 tons in 2021 and is expected to be 8,500 to 9,400 tons in 2022. Lead production was 8,700 tons in 2021 and is expected to range between 10,000 and 11,000 tons in 2022. Silver production was one million ounces in 2021 and is expected to be 1-1.1 million ounces in 2022. However, Atacocha is a good contributor to gold production as its production accounts for between 45% and 50% of the company's total production. However, for this to translate into a benefit to corporate profitability, the price of gold must trade higher, and analysts instead expect it to fall in the coming period, as outlined above. 2 Productions are in the Brazilian State of Minas Gerais: Vazante and Morro Agudo Vazante is a mineral deposit for the production of zinc, lead, and silver through underground techniques. The mineral occurrence is located very close to the municipality of Vazante in the Brazilian state of Minas Gerais. The mine is owned by Nexa Resources S.A. and is operated by its Brazilian subsidiary. The mine began mining the metals in 1969 and based on the company's mineral resource data below, operations will continue for many years to 2032. As of December 31, 2021, Vazante hosted 15.91 million tons of minerals in proven and probable reserves grading 8.77% zinc, 0.22% lead, and 13.7 g/t silver. In the first 9 months of 2022, Vazante sold 97,900 tons of zinc, a 6.7% decline over the previous year. Vazante is currently experiencing a downward trend in mining performance in terms of both treated throughput and average grade. Additionally, there could be some disruption to mine activity in the coming months due to some maintenance work already planned. Thus, metal production is expected for this year at least to be lower than 2021 levels. The reductions will be dramatic: -16% to -9.6% to 118,000 to 127,000 tonnes of zinc; -37.5% to -25% to 1,000 to 1,200 tonnes of lead and -40% to -20% to 300,000 to 400,000 ounces of silver expected in 2022. Morro Agudo is an underground and open pit zinc, lead, and silver mineral deposit 100% owned by Nexa and operated through its Brazilian subsidiary, located in Minas Gerais State, Brazil. It is actually a mining complex as it also includes 3 other mineral deposits forming The Ambrosia Trend. This is located no more than 20 km from the municipality of Paracatu in the state of Minas Gerais. The Morro Agudo has been a metal production site since 1988 and it is estimated that it will remain so at least until 2028. On a measured and indicated basis, the mineral resources of Morro Agudo are estimated at the end of 2021 to be 13.92 million tonnes of ore grading 3.39% zinc and 0.59% lead. In the first 9 months of 2022, Morro Agudo sold 14,100 tonnes of zinc, an increase of almost 12% over the previous year. Morro Agudo is the only zinc mine that is performing well thanks to several initiatives implemented over the past year. Now, in addition to more flexible management of mining activities, it allows for higher underground production. However, Morro Agudo accounts for less than 7% of the company's total production and produces no precious metals. Morro Agudo is projected to produce between 16,000 and 19,000 tonnes of zinc in 2022 versus 17,300 tonnes in 2021 and between 4,300 and 4,800 tonnes of lead in 2022 versus 4,700 tonnes in 2021. A Risk of Delay in the Construction of the Third Mine in Brazil Overall lower metal production and prices coupled with a likely continued strengthening of the US dollar against local currencies could negatively impact cash flow, which was $282.3 million for the 12 months ended Q3 2022. If this happens, it could potentially cause the company to reassess its capital allocation strategy, which would pose a risk to the timing of the project to construct the Aripuanã multi-metal manufacturing facility in Mato Grosso state, Central-West region of Brazil. The company anticipates that commercial production activities for zinc and other metals should begin before the end of 2022. Should the start-up of the new mine be delayed, negative effects on the share price cannot be ruled out. Aripuanã will absorb approximately 80% of the total $75 million that Nexa Resources S.A. intends to provide for expansion projects in 2022. For non-expansion projects, the company will spend approximately $310 million. In addition to cash flow from operations, the company had approximately $538 million in cash on hand and short-term investments as of September 30, 2022.

Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	1/6

Historical stock prices
Current Share Price	US$14.81
52 Week High	US$16.89
52 Week Low	US$4.61
Beta	0.92
1 Month Change	22.30%
3 Month Change	24.98%
1 Year Change	196.20%
3 Year Change	221.96%
5 Year Change	86.52%
Change since IPO	-17.95%

	NEXA	US Metals and Mining	US Market
7D	13.6%	-0.6%	0.7%
1Y	196.2%	49.5%	20.6%

NEXA volatility
NEXA Average Weekly Movement	12.7%
Metals and Mining Industry Average Movement	9.4%
Market Average Movement	7.3%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

NEXA fundamental statistics
Market cap	US$1.78b
Earnings (TTM)	US$210.08m
Revenue (TTM)	US$3.26b

NEXA income statement (TTM)
Revenue	US$3.26b
Cost of Revenue	US$2.41b
Gross Profit	US$848.69m
Other Expenses	US$638.61m
Earnings	US$210.08m

Earnings per share (EPS)	1.59
Gross Margin	26.01%
Net Profit Margin	6.44%
Debt/Equity Ratio	122.1%

Nexa Resources dividend dates
Ex Dividend Date	Jul 28 2026
Dividend Pay Date	Aug 11 2026
Days until Ex dividend	16 days
Days until Dividend pay date	30 days

Data	Last Updated (UTC time)
Company Analysis	2026/07/10 23:09
End of Day Share Price	2026/07/10 00:00
Earnings	2026/03/31
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Alexander Robert Pearce	BMO Capital Markets Equity Research
Matthew Murphy	BMO Capital Markets Equity Research
Lawson Winder	BofA Global Research

Nexa Resources (NEXA) Stock Overview

Rewards

Risk Analysis

Analyst Price Targets

Aripuana Ramp Up And Heavy CapEx Will Constrain Long Term Upside

Aripuana Delays And Smelter Margin Pressures Will Sustain A Cautious Long Term Outlook

Aripuana Ramp Up And Zinc Demand Will Drive Long Term Earnings Upside

Top Community Narratives

Nexa; an integrated base-metals platform with real cash-flow torque?

Top Community Narratives

Nexa; an integrated base-metals platform with real cash-flow torque?

Top Analyst Narratives

Aripuana Ramp Up And Heavy CapEx Will Constrain Long Term Upside

Aripuana Delays And Smelter Margin Pressures Will Sustain A Cautious Long Term Outlook

Aripuana Ramp Up And Zinc Demand Will Drive Long Term Earnings Upside

Nexa Resources S.A. Competitors

Compass Minerals International

Materion

Compañía de Minas BuenaventuraA

Idaho Strategic Resources

Price History & Performance

Recent News & Updates

NEXA: Mining Recovery And Silver Streaming Shift Will Drive Future Upside

Nexa Resources S.A. to Report Q2, 2026 Results on Aug 05, 2026

Boliden in Talks to Acquire Controlling Interest in Nexa Resources From Votorantim

NEXA: Mining Recovery And Smelter Restart Will Shape Execution Risks

Nexa Resources Stock Outpaces Sector With 36.8% Return on Strong Metal Prices and Operations

Nexa Resources: Upcycle Still Here, Buy On Mine Improvement

Recent updates

NEXA: Mining Recovery And Silver Streaming Shift Will Drive Future Upside

Nexa Resources S.A. to Report Q2, 2026 Results on Aug 05, 2026

Boliden in Talks to Acquire Controlling Interest in Nexa Resources From Votorantim

NEXA: Mining Recovery And Smelter Restart Will Shape Execution Risks

Nexa Resources Stock Outpaces Sector With 36.8% Return on Strong Metal Prices and Operations

Nexa Resources: Upcycle Still Here, Buy On Mine Improvement

Nexa Resources Restarts Cajamarquilla Smelter and Sticks to 2026 Zinc Outlook After Fire

Nexa Resources Resumes Operations At Cajamarquilla Smelter in Peru

Nexa Resources S.A., Annual General Meeting, Jun 26, 2026

Consensus EPS estimates increase by 61%

Less than half of directors are independent

Nexa; an integrated base-metals platform with real cash-flow torque?

Nexa Resources S.A. to Report Q1, 2026 Results on May 06, 2026

Nexa Resources S.A. announces special dividend, payable on August 11, 2026

Nexa Resources S.A. Proposes dividend for the Year Ended December 31, 2025, Payable on August 11, 2026

Nexa Resources S.A. Provides Production Guidance for the Fiscal Year 2026, 2027, 2028

Nexa Resources S.A. to Report Q4, 2025 Results on Feb 26, 2026

Nexa Resources S.A. Provides Update on Atacocha Mine Operation

Price target increased by 11% to US$6.31

Nexa Resources S.A.'s (NYSE:NEXA) Shares Bounce 28% But Its Business Still Trails The Industry

Less than half of directors are independent

Nexa Resources S.A. to Report Q3, 2025 Results on Oct 30, 2025

Nexa Resources S.A. Announces Full Resumption of Operations At Cerro Pasco Complex

Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind

Nexa Resources S.A. to Report Q2, 2025 Results on Jul 31, 2025

Nexa Resources (NYSE:NEXA) Shareholders Will Want The ROCE Trajectory To Continue

First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind

Nexa Resources S.A. to Report Q1, 2025 Results on Apr 29, 2025

Now 26% overvalued

Price target decreased by 8.1% to US$6.86

Nexa Resources S.A., Annual General Meeting, May 08, 2025

Here's Why Nexa Resources (NYSE:NEXA) Is Weighed Down By Its Debt Load

Price target decreased by 9.0% to US$7.26

New minor risk - Share price stability

Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind

Nexa Resources S.A.'s (NYSE:NEXA) Prospects Need A Boost To Lift Shares

Nexa Resources S.A. Provides Drilling and Assay Results from the Fourth Quarter and Full Year of 2024

Price target decreased by 7.1% to US$7.47

Nexa Resources S.A. Provides Production Guidance for the Full Year 2025, 2026 and 2027

Nexa Resources' (NYSE:NEXA) Returns On Capital Are Heading Higher

Nexa Resources S.A. to Report Q4, 2024 Results on Feb 20, 2025

Is Nexa Resources (NYSE:NEXA) A Risky Investment?

Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind

Nexa Resources S.A. Revises Consolidated Production and Sales Guidance for the Full Year 2024

Nexa Resources S.A. Provides the Drilling and Assay Results from the Third Quarter of 2024

Less than half of directors are independent

Nexa Resources S.A. to Report Q3, 2024 Results on Oct 31, 2024

Nexa Resources Announces Board and Management Changes

Nexa Resources S.A. (NYSE:NEXA) Held Back By Insufficient Growth Even After Shares Climb 26%

These Return Metrics Don't Make Nexa Resources (NYSE:NEXA) Look Too Strong

Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind