Brazilian Mining Company Nexa Plans $310 Million Investment in 2023

Nexa Resources, Company from Brazilian Mining and Metals, Announced an Investment Plan Worth US$ 310 Million for 2023. This Reduction Was Announced by CEO Ignacio Rosado, Who Commented: “We Know That 2023 Is Likely to Be Another Challenging Year, in Which the Risk of a Global Recession Remains High.”

The capex totaled US$ 381 million last year and US$ 508 million in 2021, while the company has invested heavily in recent years in its Aripuanã project, a subterranean mine of polymetals under construction in the state of Mato Grosso. The ramp-up of the mine continues to progress and has already generated its first revenue in the fourth quarter.

CEO Ignacio Rosado added that the company expects to continue advancing its exploration activities in the coming years, focusing mainly on identifying new ore bodies and updating the resource classification through filling drilling campaigns.

The sustainable investment for 2023 will total US$ 268 million, of which US$ 66 million will be earmarked for smelting and US$ 200 million for mining – including US$ 53 million for Aripuanã. Nexa also announced it will invest US$ 55 million in exploration this year.

Regarding the production expected for 2021, it estimated 28,000-40,000 tons of zinc; 31,000-36,000 tons of copper; 56,000-71,000 tons of lead; and 9-11 Moz of silver. Compared to 2020, the forecast volume is slightly higher for both base metals and silver. Nexa Resources has been demonstrating its commitment to sustainable and long-term investments, having succeeded even amid the challenges imposed by the pandemic. 

It is believed that the Brazilian miner will continue to expand its operations through planning and adherence to the targets set for the coming years.

Nexa Resources Reports Loss of US$ 81.4 Million in 4th Quarter of 2022

Nexa Resources, formerly known as Votorantim Metais, listed on the New York Stock Exchange (NYSE), posted a net loss of US$ 81.4 million in the fourth quarter of 2022. This represented a significant decline compared to the net profit of US$ 11.4 million reported for the same period the previous year.

The company’s net revenue increased significantly year-on-year, reaching US$ 779.8 million. This growth was driven by metal sales in general, partially offset by lower metal prices.

Compared to the third quarter of 2022, net revenue also increased by 11%, mainly due to higher metal sales and copper concentrate volumes. However, this advancement was partially offset by lower zinc prices.

For the entire year of 2022, the net revenue of Nexa totaled US$ 3.03 billion – a growth of 16% compared to 2021. This was the result of higher zinc prices throughout the year.

Although revenue grew considerably, the financial result was negative at US$ 17.9 million in the last quarter of the previous year; a better performance than the negative US$ 38.4 million recorded in the fourth quarter of the previous year. Furthermore, the company’s adjusted EBITDA fell to US$ 120.2 million – 21% lower than in the same period of 2021 – and its EBITDA margin decreased to 15.4%.

In summary: although sales are healthy and metal prices are improving, Nexa Resources experienced a significant decline in financial results and adjusted EBITDA in the fourth quarter of 2022.