Nexa Resources Q2 Earnings Call Highlights

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Sat, August 8, 2026 astatine 3:03 PM CDT 6 min read

Key Points

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Strong second-quarter results: Adjusted EBITDA roseate 78% twelvemonth implicit twelvemonth to $286 million, portion gross accrued 28% to $908 million, driven by higher metallic prices, recovering Peruvian mining operations and improved Brazilian smelter performance.
Mining momentum improved: Zinc accumulation accrued 8% twelvemonth implicit year, with Aripuanã treated ore up 33% and zinc output up 44% aft commissioning a 4th tailings filter. Management expects further accumulation gains arsenic the works approaches nameplate capacity.
Balance expanse strengthened contempt near-term pressures: Net leverage fell to 1.4 times, but escaped currency travel was antagonistic $10 cardinal aft a $131 cardinal Peruvian tax-settlement payment, portion Cajamarquilla fire-related disruptions pushed smelting costs supra guidance. Nexa maintained its full-year production, capital-spending and smelting-sales outlooks.

Nexa Resources (NYSE:NEXA) reported second-quarter 2026 adjusted EBITDA of $286 million, up 78% from a twelvemonth earlier, arsenic higher metallic prices, a betterment successful Peruvian mining operations and improved Brazilian smelter show lifted results. Net income was $98 million, oregon $0.52 per share, portion nett gross roseate 28% twelvemonth implicit twelvemonth to $908 million.

Chief Executive Officer Ignacio Rosado said the company's adjusted EBITDA borderline reached astir 31%, supported by a favorable pricing situation crossed its metallic portfolio. Silver prices averaged 117% higher than successful the 2nd 4th of 2025, according to the company, portion zinc and copper prices besides contributed to gross and byproduct credits.

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Net leverage declined to 1.4 times astatine quarter-end, from 1.59 times successful the preceding 4th and 2.28 times a twelvemonth earlier. Chief Financial Officer José Carlos del Valle said the betterment reflected trailing 12-month adjusted EBITDA exceeding $1 billion. The institution is targeting nett leverage adjacent to 1 times by year-end portion maintaining its investment-grade rating.

Mining Performance and Aripuanã Milestone

Mining zinc accumulation totaled 79,000 tonnes during the quarter, an 8% year-over-year summation driven by higher ore grades astatine cardinal operations. Sequential accumulation was broadly flat, arsenic recovering Peruvian operations offset impermanent little grades, the commissioning of a caller tailings filter and scheduled attraction astatine Aripuanã.

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Mining nett gross was $524 million, and adjusted EBITDA was $220 million, representing a 42% margin. Cash costs nett of byproducts were $0.04 per lb successful the 2nd 4th and antagonistic $0.35 per lb for the archetypal half, beneath the company's 2026 guidance range. Nexa attributed the first-half effect to stronger copper, metallic and golden byproduct credits and little attraction charges.

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