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Guidance & Outlook

Nexa | Guidance 2026-2028

 

Nexa has updated its 2026-2028 consolidated mining production guidance for zinc, copper, lead and silver and zinc (metallic and oxide) sales, along with guidance on costs, capital expenditures, and other operating expenses for 2026.

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Guidance is based on several assumptions and estimates, including but not limited to metal prices, operational performance, maintenance and input costs, and exchange rates.

Nexa continues to monitor global macroeconomic and operational risks that could affect our business. These include commodity price volatility, inflationary pressures, supply chain constraints, and potential changes to political or regulatory environments in the jurisdictions where we operate. In addition, community-related events or extreme weather may impact production and cost pressures. We remain focused on mitigating these risks through operational discipline, proactive stakeholder engagements, and flexibility in our capital allocation.

Production and Sales

Metal contained
(in concentrate)
2026e
2027e 2028e
Zinc kt 310 360 335 389 333 398
Cerro Lindo 77 85 73 85 70 80
El Porvenir 48 55 67 75 61 79
Atacocha 12 15 16 18 17 22
Vazante 128 145 120 140 120 143
Aripuanã 45 60 60 70 65 74
Copper kt 26 30 25 30 23 27
Cerro Lindo 22 25 22 25 21 23
El Porvenir 0.3 0.3 0.3 0.4 0.4 0.5
Aripuanã 3.6 4.4 2.2 4.3 2.0 3.4
Lead kt 60 67 63 77 60 72
Cerro Lindo 8 10 9 11 9 12
El Porvenir 21 24 22 23 17 21
Atacocha 14 15 11 13 8 9
Vazante 0.6 0.7 0.5 0.6 0.5 0.7
Aripuanã 17 19 20 29 26 29
Silver MMoz 10 11 10 12 9 11
Cerro Lindo 3.0 3.3 3.1 3.4 3.0 3.6
El Porvenir 4.2 4.7 4.0 4.6 3.0 3.8
Atacocha 1.3 1.4 0.9 1.1 0.7 0.9
Vazante 0.2 0.3 0.2 0.3 0.2 0.3
Aripuanã 1.2 1.6 1.7 2.3 2.0 2.4

For the forecasted periods, consolidated average zinc grade is expected to range between 2.93% and 3.33%, consolidated average copper grade is expected to range between 0.26% and 0.30%, and consolidated average lead grade is expected to range between 0.62% and 0.70%.

Smelting sales 2026e 2027e 2028e
Zinc metal kt 535 560 545 565 545 565
Cajamarquilla 325 335 325 335 325 335
Três Marias 140 145 145 150 145 150
Juiz de Fora 70 80 75 80 75 80
Zinc oxide kt 35 40 35 40 35 40
Três Marias 35 40 35 40 35 40
Metal Sales kt 570 600 580 605 580 605

At the midpoint of our 2026 guidance, metal sales volumes are expected to increase year-over-year. We then forecast modest growth in total sales through 2027 and 2028 compared to 2026.

2026 Cash costs

Estimated cash costs for 2026 are based on several assumptions, including but not limited to:

  • Production volumes for zinc and other metals;
  • Commodity prices: Zn US$1.29/lb, Cu US$4.54/lb, Pb US$0.91/lb, Ag US$42.0/oz, Au: US$3,775/oz;
  • Foreign exchange rates: BRL/USD 5.50 and Soles/USD 3.47; and
  • Zinc benchmark treatment charge (“TC”) for 2026 is currently assumed at approximately US$175/t concentrate.

Note: The official annual benchmark TC for 2026 is expected to be settled in early April, following negotiations between major industry participants. Nexa’s assumptions, if needed, will be updated upon conclusion of these negotiations.

Mining operating costs Cost ROM (US$/t)
2026e
Cash Cost (US$/lb)
2026e
Mining Cash Cost¹ 49.5 57.2 (0.11) 0.08
Cerro Lindo 40.1 45.3 (0.73) (0.43)
El Porvenir 64.2 71.9 (0.58) (0.41)
Atacocha 33.9 38.0 (1.76) (1.37)
Vazante 57.1 62.7 0.61 0.69
Aripuanã 69.1 92.0 (0.05) 0.23


(1)
C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine.

  • Mining: In 2026, consolidated run-of-mine mining cost is expected to reach the mid-range of guidance, reflecting a moderate 4% year-over-year increase, primarily due to higher costs at Vazante, Cerro Lindo, and El Porvenir at mid-point, driven by lower treated ore volumes, higher energy costs and unfavorable FX variations. These increases are partially offset by reductions at Aripuanã and Atacocha, which reflect enhanced plant stability, efficiency gains, a stable workforce, disciplined maintenance, and lower variables costs.
Smelting operating costs Conversion Cost (US$/lb)
2026e
Cash Cost (US$/lb)
2026e
Smelting Cash Cost2  0.31 0.34 1.15 1.34
Cajamarquilla 0.28 0.30 1.04 1.13
Três Marias 0.28 0.33 1.29 1.62
Juiz de Fora 0.48 0.55 1.32 1.59

(2) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per smelter. 

  • Smelting: In 2026, consolidated conversion cost is forecast to remain at similar levels to 2025, projected within a range of US$0.31-0.34/lb (the midpoint of 2026 guidance). This stability is primarily due to anticipated higher production and sales volumes at our Brazilian smelters, driven by plant recovery, process stabilization, and roaster improvements, which will offset a modest decline at Cajamarquilla. This is supported by an expected recovery in TCs levels from 2025 lows, ongoing cost reduction initiatives, and lower energy costs in Brazil. These positive factors are projected to be largely offset by higher energy costs at Cajamarquilla.

2026 CAPEX

Beginning in 2026, investments related to tailings dam management and mine development have been reclassified from sustaining capital into newly defined categories (detailed below). This provides enhanced clarity into strategic and compliance-related expenditures.

Total CapEx guidance for 2026 is set at US$381 million, an increase of US$34 million compared to 2025 guidance, mainly driven by higher investments in mine development (improving mine flexibility), sustaining capital, and Health, Safety & Environmental (“HS&E”) initiatives. Additionally, the estimated appreciation of the Brazilian real against the U.S. dollar in 2026 is anticipated to have a negative impact of approximately US$9 million.

Approximately US$108 million of the 2026 CapEx is allocated to initiatives supporting Nexa’s ESG strategy, mainly related to Tailings Storage Facilities (“TSF”), sustaining capital, and HS&E categories.

Sustaining capital is expected to total US$129 million, a 13% increase compared to 2025. Of this amount, US$53 million is allocated to mining, including US$8 million for expanding tailings filtration capacity at Aripuanã – this will ensure the availability and capacity to process tailings, optimize the Unit’s filtration system performance, and sustain operations to achieve the production plan without negative impacts on the dry stacking process, and US$75 million is allocated to smelting, including US$12 million for electro-filter replacements at Cajamarquilla and US$10 million for roaster maintenance. The remainder is for general maintenance activities.

Mine development investments are projected at US$122 million, representing a 17% increase compared to 2025. This supports operational flexibility, performance enhancements, and life-of-mine extensions mainly at the Aripuanã and Vazante mines.

Investments in TSF are expected to total US$89 million, a decrease of 8% compared to 2025, with US$65 million allocated to mining and US$25 million to smelting. Key projects include: US$31 million for Cerro Pasco’s tailings pumping system (Phase I); US$24 million for the expansion of the Pahuaypite tailings storage facility in Cerro Lindo; US$14 million for tailings stockpile at Três Marias and Aripuanã, and US$13 million for dry-stack tailings facilities (Cajamarquilla US$10 million and Três Marias US$2 million).

HS&E is forecasted at US$27 million.

Other non-expansion capital expenditures are expected to total US$8 million, primarily consisting of US$7 million for Pollarix (maintenance of electric generation rights and control equipment modernization). The remainder amount is allocated to automation projects across our units.

Expansion projects are estimated at US$5 million, primarily allocated to the Extremo Norte mine deepening project at Vazante. This project includes engineering works to enable mining at deeper levels, featuring the installation of two new pumping stations and the repowering of two existing ones. Additional infrastructure enhancements encompass ventilation upgrades, updated geomechanical and hydrogeological models, and ramp development. These investments are designed to ensure operational continuity and efficiency, extend life-of-mine, and reinforce safety standards.

CAPEX
(US$ million)
2026 Guidance
Non Expansion  375
Sustaining (1) 129
Mine Development 122
Tailings Storage Facilities (“TSF”) 89
HS&E 27
Others (2) 8
Expansion projects 5
TOTAL 381

(¹) Investments in tailing dams and mine development are now excluded from sustaining expenses.

(²) Modernization, Innovation, Energy and others corporate investments.

2026 Exploration & Project Evaluation and Other Expenses

As part of our long-term strategy to replace and expand our mineral reserves and resources, we continue to advance our disciplined exploration program focused on identifying new orebodies and upgrading resource classifications through infill drilling campaigns.

During 2026, we plan to invest US$68 million in exploration. Of this, US$49 million is allocated to mineral exploration expenses, primarily targeting greenfield and brownfield projects.

Our project evaluation expense guidance is set at US$18 million, which includes IT initiatives to enhance cybersecurity solutions and optimize systems, as well as funding for the implementation of a new tailings stockpile in Aripuanã. The remaining amount will be allocated to corporate IT programs, potential growth projects assessments, and other strategic efforts across our business units.

In addition, we plan to allocate US$5 million for technology investments aimed at enhancing operational efficiency, and US$11 million to support the social and economic development of our host communities.

In 2026, approximately US$15 million of the total planned for Other Operating Expenses is dedicated to initiatives that advance Nexa’s ESG strategy, with primary allocations to the Project Evaluation, Technology, and Communities categories.

Other operating expenses
(US$ million)
2026 Guidance
Exploration 68
Mineral exploration 49
Mineral rights 8
Sustaining (mine development) 11
Project Evaluation 18
Exploration & Project Evaluation 86
Other 16
Technology 5
Communities 11

Note: Exploration and project evaluation expenses consider several stages of development, from mineral potential definition, R&D, and subsequent scoping and pre-feasibility studies (FEL1 and FEL2).