Nexa Resources S.A.

Net revenue totaled $888 million, up 42% year over year and down 2% sequentially. Adjusted EBITDA was $283 million, up 126% year over year, with a 31.8% margin; net income was $118 million or $0.67 per share. Mining segment net revenue was $460 million and adjusted EBITDA was $231 million, a 50% margin; smelting segment net revenue was $609 million and adjusted EBITDA was $51 million, an 8% margin. Zinc production reached 79,000 tonnes, up 18% year over year, and zinc metal and oxide sales were 147,000 tonnes. Free cash flow was negative $126 million, with operating cash flow before working capital of $308 million. The company reaffirmed full-year 2026 CapEx guidance of $381 million and exploration/project evaluation guidance of $86 million. Management said it expects the first-quarter working capital outflow and tax-related pressure to unwind over the coming quarters, supporting strong free cash flow generation in 2026.

Ignacio Rosado said the quarter reflected a constructive price backdrop, stronger sales volumes and better operating execution, especially at Aripuana, where production hit another quarterly record. He stressed that temporary Peru disruptions from heavy rain, a community blockade and a shaft constraint have been resolved and operations are back to normal run rates. His tone was confident and forward-looking, emphasizing stable operations, reserve growth, Cerro Pasco integration, and an active pipeline of growth opportunities, especially in copper.

José del Valle Castro highlighted that total liquidity was $716 million, including an undrawn $320 million revolving facility, and that average debt maturity was 7.2 years with an average cost of debt of 6.27%, down from 6.49% at year-end 2025. He said net leverage improved to 1.59x from 1.69x in the prior quarter, driven by last-12-month EBITDA of $929 million, and reiterated a commitment to keep net leverage below 1.7x in 2026 while preserving investment grade. He also detailed first-quarter CapEx of $72 million, 19% of full-year guidance, and said free cash flow was negative $126 million mainly because of working capital, taxes, bonuses and year-end payables, which he expects to reverse over the year.

Analysts pressed management on Cerro Pasco integration timing, asking whether the 2Q 2027 pumping start leaves a tight permitting window and when Phase 2/Picasso shaft decisions might be made. Management said Phase 1 construction should finish in 2026, the permitting overlap is manageable because there is more than a year of tailings capacity, and Phase 2 timing should become clearer in the second half of 2026; the permits being sought also cover the later integration. Questions also focused on smelting profitability and whether the stronger quarter is sustainable; management said Juiz de Fora and Tres Marias are improving operationally and the second quarter should be better, but low treatment charges will continue to pressure margins even as byproducts offset part of that weakness. Analysts also asked about the Cerro Lindo silver stream step-down and capital allocation, and management said the change could add about $100 million per year of cash generation at current prices, which would mainly accelerate debt reduction rather than change the broader capital allocation strategy.