- Nexa Resources (NEXA, Financial) reports a net income of $29 million in Q1 2025, reversing previous losses.
- Net revenues increased by 8% year-over-year to $627 million, driven by higher prices for zinc and copper.
- Successfully issued a $500 million bond to enhance financial flexibility and extend debt maturity.
Nexa Resources (NEXA), a leading zinc producer, reported a strong financial turnaround with a net income of $29 million in Q1 2025, compared to a net loss of $12 million in Q1 2024 and $111 million in Q4 2024. This improvement was driven by better operating income and the favorable impact of foreign exchange variations due to the appreciation of the Brazilian real against the U.S. dollar.
Despite facing operational challenges due to heavy rainfall and production instabilities, Nexa's net revenues rose by 8% year-over-year to $627 million, mainly driven by a 16% increase in zinc prices and an 11% increase in copper prices. However, the company experienced a 15% decline in revenues compared to Q4 2024 due to lower smelting sales volumes and declines in zinc and lead prices.
In April 2025, Nexa successfully executed a $500 million bond issuance with a 12-year maturity and a 6.600% coupon. This move is part of a proactive liability management strategy, allowing Nexa to repurchase 49% of its 2027 notes and 72% of its 2028 notes, significantly improving its debt profile.
While copper production increased by 2% year-over-year, zinc production faced a 23% decline due to operational constraints. The company's commitment to ESG initiatives remained strong, with the introduction of hybrid loaders in Peru and the launch of the 5th edition of Mining Lab Beginnings focusing on circular economy initiatives.
