from Nexa Resources S.A. (NASDAQ:NEXA)
Nexa Provides 2023 Operational Results and Guidance Update
LUXEMBOURG / ACCESSWIRE / February 01, 2024 / 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, 2023, and provide its production and metal sales guidance for the three-year period 2024-2026. The Company is also providing cash costs, capital expenditures and other operating expenses guidance for 2024. The figures contained in this report are considered preliminary and are unaudited. The financial results for the fourth quarter and full year 2023 are expected to be published on Wednesday, February 21, 2024 (after trading hours).
2023 Summary Highlights
- 2023 mining production guidance was achieved, with all metals in the upper range of the guidance.
- Zinc production totaled 333kt in 2023. Cerro Lindo and Morro Agudo mines achieved the upper range of the guidance, while El Porvenir and Vazante mines exceeded the annual guidance, and Atacocha mine was slightly below the lower range. Aripuanã reached the middle range of the guidance (following the guidance revision disclosed in October 2023).
- Copper, lead, and silver production of 33kt, 65kt and 10MMoz, respectively, achieved the upper range of the annual guidance.
- Metal sales totaled 590kt in 2023 and was in the middle range of the annual guidance, as a result of lower production volumes of our smelters compared to 2022, in addition to a decrease in global demand, and lower domestic demand for zinc oxide.
- 2023 Consolidated run-of-mine mining costs guidance was achieved, and consolidated C1 cash cost guidance was slightly higher.
- 2023 Consolidated smelting Conversion cost and C1 cash cost guidance was achieved.
- 2023 CAPEX was in line with our guidance, while Other Operating Expenses were below due to our optimization initiatives throughout the year. (the figures will be provided along with the 4Q23 and Full Year 2023 Financial Results on February 21, 2024).
Production and Sales
Mining production (Metal in concentrate) | 2023 | Guidance 2023 | |||||||||||||||
Zinc | kt | 333 | 299 | - | 334 | ||||||||||||
Cerro Lindo | 78 | 69 | - | 79 | |||||||||||||
El Porvenir | 56 | 51 | - | 55 | |||||||||||||
Atacocha | 8 | 9 | - | 11 | |||||||||||||
Vazante | 146 | 131 | - | 144 | |||||||||||||
Morro Agudo | 23 | 17 | - | 23 | |||||||||||||
Aripuanã | 22 | 20 | - | 23 | |||||||||||||
Copper | kt | 33 | 29 | - | 33 | ||||||||||||
Cerro Lindo | 29 | 25 | - | 28 | |||||||||||||
El Porvenir | 0.4 | 0.2 | - | 0.3 | |||||||||||||
Aripuanã | 4.4 | 4.2 | - | 5.0 | |||||||||||||
Lead | kt | 65 | 53 | - | 65 | ||||||||||||
Cerro Lindo | 13 | 11 | - | 13 | |||||||||||||
El Porvenir | 25 | 20 | - | 26 | |||||||||||||
Atacocha | 11 | 10 | - | 12 | |||||||||||||
Vazante | 1.4 | 1.1 | - | 1.2 | |||||||||||||
Morro Agudo | 8.3 | 4.9 | - | 6.1 | |||||||||||||
Aripuanã | 6.3 | 5.7 | - | 6.9 | |||||||||||||
Silver | MMoz | 10 | 9.1 | - | 10 | ||||||||||||
Cerro Lindo | 3.5 | 3.5 | - | 3.8 | |||||||||||||
El Porvenir | 4.3 | 3.7 | - | 4.5 | |||||||||||||
Atacocha | 1.4 | 1.0 | - | 1.2 | |||||||||||||
Vazante | 0.6 | 0.3 | - | 0.4 | |||||||||||||
Aripuanã | 0.5 | 0.4 | - | 0.5 | |||||||||||||
Metal sales of 590kt in 2023 achieved the middle range of the annual guidance driven by lower production volumes of our smelters compared to 2022, in addition to overall lower demand. Zinc metal sales of 556kt were also in the middle range of the guidance, while zinc oxide sales of 34kt were slightly below the lower range, mainly explained by a slowdown in domestic demand.
Smelting sales | 2023 | Guidance 2023 | ||||||||||||||
Metal Saleskt | 590 | 580 | - | 605 | ||||||||||||
Zinc metal | 556 | 545 | - | 565 | ||||||||||||
Zinc oxide | 34 | 35 | - | 40 | ||||||||||||
2023 Cash Costs
Mining Operating costs | Cost ROM (US$/t) 2023 | Cash Cost(US$/lb) 2023 | Cost ROM (US$/t) Guidance 2023 | Cash Cost(US$/lb) Guidance 2023 | ||||||||||||||||||||||||||||
Mining (1) | 45.2 | 0.40 | 43.9 | - | 46.4 | 0.35 | - | 0.38 | ||||||||||||||||||||||||
Cerro Lindo | 40.6 | (0.06 | ) | 40.1 | - | 42.1 | (0.12 | ) | - | (0.10 | ) | |||||||||||||||||||||
El Porvenir | 62.8 | 0.29 | 57.3 | - | 60.7 | 0.26 | - | 0.28 | ||||||||||||||||||||||||
Atacocha | 32.9 | (0.44 | ) | 33.1 | - | 35.4 | (0.45 | ) | - | (0.38 | ) | |||||||||||||||||||||
Vazante | 57.1 | 0.61 | 57.2 | - | 59.0 | 0.59 | - | 0.65 | ||||||||||||||||||||||||
Morro Agudo | 37.9 | 0.82 | 35.0 | - | 38.2 | 0.80 | - | 0.94 | ||||||||||||||||||||||||
(1) 2023 C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine.
Smelting Operating costs | Conversion cost(US$/lb) 2023 | Cash Cost(US$/lb) 2023 | Conversion cost (US$/lb) Guidance 2023 | Cash Cost(US$/lb) Guidance 2023 | ||||||||||||||||||||||||||||
Smelting (2) | 0.30 | 1.10 | 0.29 | - | 0.32 | 1.07 | - | 1.12 | ||||||||||||||||||||||||
Cajamarquilla | 0.28 | 1.03 | 0.27 | - | 0.29 | 1.04 | - | 1.08 | ||||||||||||||||||||||||
Três Marias | 0.26 | 1.16 | ||||||||||||||||||||||||||||||