Q3 2024 Nexa Resources SA Earnings Call Transcript
Key Points
- Nexa Resources SA (NEXA) reported a 9% year-over-year increase in total consolidated net revenues for the third quarter, reaching $709 million, driven by higher average LME prices.
- Adjusted EBITDA for the third quarter was $183 million, a significant 111% increase from the same quarter last year, with an adjusted EBITDA margin of around 26%.
- The company successfully reduced its net leverage ratio to 2.2 times, down from 2.7 times in the previous quarter and 3.1 times in the third quarter of last year.
- Aripuana marked its third consecutive quarter of EBITDA growth and generated positive operating cash flow, with significant improvements in treated ore volumes.
- Nexa Resources SA (NEXA) has reduced its cash cost guidance for 2024 by 64% from the previous guidance, reflecting higher LME metal prices and increased byproduct contributions.
- Zinc production declined by 5% year-over-year due to the absence of contributions from Morro Agudo and lower zinc average grades at Vazante and El Porvenir.
- Copper production decreased by 4% in the third quarter due to lower grade areas.
- The smelting segment faced a 15% increase in cash costs year-over-year, attributed to higher raw material costs and lower treatment charges.
- Aripuana's zinc production experienced a minor dip in the third quarter due to lower grades and increased talc levels in the flotation circuit.
- The performance of tailings filters at Aripuana is currently limiting capacity, necessitating the acquisition of a fourth filter, which will not be operational until 2025.
Good morning, and welcome to Nexa Resources third quarter 2024, conference call. (Operator Instructions) This event is being recorded and is also being broadcast via webcast and may be accessed through Nexa's Investor Relations website, where the presentation is also available. (Operator Instructions)
I would now like to turn the conference over to Mr. Rodrigo Cammarosano, Head of Investor Relations, for opening remarks. Please go ahead.
Good morning, everyone, and welcome to Nexa Resources third quarter 2024, earnings conference call. Thank you for joining us today. During the call, we will be discussing the company's performance as per the earnings release that we issued yesterday. We encourage you to follow along with this on-screen presentation through the webcast.
Before we begin, I would like to draw your attention to Slide 2, where we'll be making forward-looking statements about our business, and we ask you to refer to the disclaimer and the conditions surrounding those
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