Nexa Announces Filing of Annual Report
Nexa Resources S.A. (“Nexa” or the “Company”) (NYSE: NEXA) (B3: NEXA) today announced that it has filed its annual report on Form 20-F for the year ended December 31, 2020 with the U.S. Securities and Exchange Commission (the “SEC”).
Overview of Nexa Resources
Nexa is a leading integrated zinc producer in Latin America with over 90 years of experience in mining. The Company is the largest integrated zinc producer in Latin America and the sixth largest zinc producer in the world, based on 2020 zinc production volumes. Nexa is also the largest producer of zinc in Peru and the second largest producer of copper in Peru.
Nexa has a diversified portfolio of long-life mining assets and is one of the lowest-cost zinc producers in the world. The Company’s operations are located in Peru and Brazil and include the Vazante, Aripuanã, and Corrego do Feijão mines in Brazil, and the Cerro Lindo, Milpo, and Atacocha mines in Peru.
2020 Financial Highlights
In 2020, Nexa reported net sales of $2.3 billion, a decrease of 8.3% compared to 2019. The decrease was mainly due to lower zinc and copper prices, partially offset by higher volumes of zinc and copper sold.
Nexa reported a net loss of $22.2 million in 2020, compared to a net income of $37.3 million in 2019. The decrease was mainly due to higher costs related to the acquisition of Votorantim Metais, partially offset by higher volumes of zinc and copper sold.
Nexa reported Adjusted EBITDA of $541.3 million in 2020, a decrease of 11.2% compared to 2019. The decrease was mainly due to lower zinc and copper prices, partially offset by higher volumes of zinc and copper sold.
2020 Operational Highlights
In 2020, Nexa produced 537,400 tonnes of zinc, a decrease of 0.3% compared to 2019. The decrease was mainly due to lower production at the Cerro Lindo mine, partially offset by higher production at the Vazante and Aripuanã mines.
Nexa produced 95,100 tonnes of copper in 2020, an increase of 5.3% compared to 2019. The increase was mainly due to higher production at the Vazante and Aripuanã mines, partially offset by lower production at the Cerro Lindo mine.
Votorantim Metais Acquisition
In 2020, Nexa completed the acquisition of Votorantim Metais, a Brazilian mining company, for a total consideration of $1.3 billion. The acquisition included the Vazante, Aripuanã, and Corrego do Feijão mines in Brazil.
The acquisition of Votorantim Metais is expected to increase Nexa’s production of zinc and copper, as well as its presence in the Brazilian market. The acquisition is also expected to increase Nexa’s cash flow and improve its cost structure.
Outlook for 2021 and Beyond
Nexa is well-positioned to capitalize on the expected recovery in zinc and copper prices in 2021 and beyond. The Company is focused on increasing production and reducing costs in order to maximize cash flow and improve its cost structure.
Nexa is also focused on increasing its presence in the Brazilian market and expanding its portfolio of long-life mining assets. The Company is committed to creating value for its shareholders through organic growth and strategic acquisitions.
About Nexa Resources
Nexa Resources S.A. is a leading integrated zinc producer in Latin America with over 90 years of experience in mining. The Company is the largest integrated zinc producer in Latin America and the sixth largest zinc producer in the world, based on 2020 zinc production volumes. Nexa is also the largest producer of zinc in Peru and the second largest producer of copper in Peru.
Nexa has a diversified portfolio of long-life mining assets and is one of the lowest-cost zinc producers in the world. The Company’s operations are located in Peru and Brazil and include the Vazante, Aripuanã, and Corrego do Feijão mines in Brazil, and the Cerro Lindo, Milpo, and Atacocha mines in Peru.