Nexa Meets 2021 Production and Sales Guidance, and Announces 4Q21 and 2021 Operational Results

LUXEMBOURG / ACCESSWIRE / February 3, 2022 / Nexa Resources S.A. ("Nexa Resources" or "Nexa" or the "Company") (NYSE:NEXA) is pleased to announce operational results for the three- and twelve-month periods ended December 31, 2021. The figures contained in this report are considered preliminary and are unaudited. The financial results for the fourth quarter and fiscal year 2021 will be published on Tuesday, February 15, 2022 (after trading hours).

Nexa has previously published its guidance with operational data but as previously informed, given the heavy rainfall levels in the state of Minas Gerais, Vazante's monthly production is under review and the Company will provide production and metal sales guidance for the three-year period 2022-2024 with its financial results. Cash cost, capital expenditures, and other operating expenses guidance for 2022 will also be provided on that date.

CEO Message - Ignacio Rosado:

"In 2021, we were able to safely operate and overcome operational setbacks as well as the ongoing challenges imposed by COVID-19 and inflationary cost pressures across our supply chain, achieving our annual guidance.

Given the potential of new COVID-19 variants, we anticipate that operating conditions will remain challenging. However, our strong COVID protocols and our solid organizational culture have assisted us in navigating these unprecedented times, and we believe we will continue delivering safety, operational performance, and sustainable and solid cash flow results."

2021 Operational Highlights:

• Metal sales of 619kt in 2021 achieved guidance and were 6% higher year-over-year due to solid global demand and the recovery in our home markets.
• 2021 mining production guidance was achieved in all metals. Zinc production of 320kt was in the guidance range and 2% higher than in 2020. Lead and silver production were close to the midpoint of the guidance range and increased by 20% and 29%, respectively, year-over-year. Copper production of 30kt achieved the upper end of the annual guidance and increased by 5% over the previous year.
• Zinc production of 81kt in 4Q21 decreased by 12% year-over-year due to lower production in Cerro Lindo, Vazante and Morro Agudo mines. Copper production of 7kt followed the same trend and decreased 1.5kt from 4Q20. Lead production of 13kt increased by 2%, positively affected by El Porvenir and Morro Agudo mines. Silver production of 2,311oz was 8% higher than in 4Q20 due to the performance of El Porvenir and Vazante mines.
• Metal sales volume of 158kt in 4Q21 was 2% down than in 4Q20 due to lower production.

2021 Cash Cost Highlights:

⁽¹⁾ C1 weighted mining cash cost net of by-products credits is measured with respect to zinc sold per mine.

⁽²⁾ C1 weighted smelting cash cost net of by-products credits is measured with respect to zinc sold per smelter.

• Mining C1 cash costs of US$0.21/lb in 2021 were 7% lower than the 2021 guidance, positively affected by higher by-product credits and lower TCs.
• Smelting C1 cash costs of US$1.13/lb in 2021 were slightly below our 2021 guidance.

2021 Operational Results

Mining segment

In 4Q21, treated ore volume was 3,117kt, down 1% compared to the same quarter a year ago. The increase in El Porvenir (+24%) and Atacocha (+14%) was partially offset by the decreases in Cerro Lindo (-7%), Vazante (-4%) and Morro Agudo (-18%) mines.

Zinc equivalent production was 137kt in 4Q21, 8% lower compared to 4Q20 and 1% higher from 3Q21. The average zinc grade decreased by 29bps to 2.99%. Copper followed the same trend and decreased by 5bps to 0.29%. Lead and silver head grades increased by 2bps and 4%, to 0.56% and 0.98oz/t, respectively.

In 2021, treated ore volume totaled 12,330kt, an increase of 14% compared to last year, which was impacted by the COVID-19 related mandatory measures in our Peruvian operations during the first semester, which compensated for lower zinc grades (down 30bps to 2.98%). Therefore, zinc production totaled 320kt, 2% higher than in 2020 (313kt). Copper and lead production followed the upward trend and increased by 5% and 20% to 30kt and 46kt, respectively. Silver production of 8,808koz was also higher, up 29% over 2020.

• Cerro Lindo: Zinc production of 102kt in 2021 was up 7% year-over-year, primarily driven by the 16% increase in treated ore volume, which compensated for lower average zinc head grade (down 14bps to 1.79%). Copper, lead and silver production also increased to 29kt (+5%), 13kt (+11%) and 3,814koz (+30%), respectively.
• El Porvenir: Zinc production was 51kt in 2021, an increase of 47% versus 2020 due to higher treated ore volume. Zinc average grade was 2.83% (up 19bps over 2020). Lead and silver production followed the same trend and increased by 63% and 50%, to 18kt and 3,467koz, respectively.
• Atacocha: In 2021, zinc production of 9kt was down 1.1kt compared to last year mainly driven by the decision to not resume the higher-cost underground mining activities and to operate only the San Gerardo open pit mine. Average zinc grade was 0.88% compared to 1.20% in 2020 as the open pit average grade is lower than the underground.
• Vazante: Zinc production in 2021 was 140kt, down 5% compared to 2020, as a result of the temporary suspension of Extremo Norte orebodies production with higher zinc average grade. Zinc average grade was 9.98% compared to 10.43% in 2020.
• Morro Agudo: In 2021, zinc production of 17kt decreased 7.9kt compared to 2020 driven by lower treated ore volume (-17%) and zinc average grade (down 36bps to 2.41%) as the higher-grade Ambrósia open pit reached the end of its mine life and was then suspended in 4Q20 and lower grades are expected in the underground mine plan.

Smelting segment

In 4Q21, total production was 154kt, down 4% from the same quarter a year ago but 8% higher compared to 3Q21, driven by increased production in the Cajamarquilla and Juiz de Fora smelters. Total sales amounted to 158kt, down 2% year-over-year following lower production. Compared to 3Q21, total sales increased by 2%.

In 2021, total production was 608kt, up 3% from 2020 primarily driven by increased production in the Cajamarquilla smelter (+7%), which was required to reduce production according to measures announced by the Peruvian government to control the spread of COVID-19 in from mid-March 2020 to mid-May 2020.

Metal sales followed the same trend and amounted to 619kt in 2021, 6% higher year-over-year. Zinc metal sales volume of 578kt in 2021 was 5% higher versus 2020 primarily driven by the increase in production in the Cajamarquilla and the resale of metal from third parties of 16kt.

Smelting sales			4Q21		4Q20		2021		2020
Zinc metal	kt		148		151		578		551
Cajamarquilla			89		87		333		303
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