July 31, 2018 – Nexa Resources S.A. (NYSE/TSX:NEXA) ("Nexa” or the "Company") today reported operating and financial results for the SECOND quarter of 2018 (“2Q18”) and reinforced its production and capex guidance for fiscal year 2018. We also announced our intention to propose share buybacks to our shareholders.
Tito Martins, CEO of Nexa: “Our results for the 2Q18 reflect the good momentum for the metal prices at the beginning of the year and the increase in our metal sales levels, comparing to 2Q17. Our production delivered to date make us confident in reiterating our guidance for the year.
Our mineral exploration program continues advancing. We were authorized to commence drilling activities at the Topara North area, located in the region of Cerro Lindo, our largest zinc mine in operation.
We renegotiated US$200 million in outstanding debt with banks during the quarter. This is part of our efforts and commitment to extend our debt and reduce our financial costs, maintaining a sound balance sheet.
We believe our operating cash flow and strong capital structure provide the ability to open new alternatives to create value to our Company and its shareholders. The share buyback authorization being proposed reinforces our confidence in the fundamentals and long-term outlook of Nexa without impacting our growth strategy, including our capital expenditure programs, our development of greenfield projects, and our ability to keep paying dividends to our shareholders as we have done since our initial public offering.”
THIS EARNINGS RELEASE DATED AS OF JULY 31, 2018 SHOULD BE READ IN CONJUNCTION WITH THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF NEXA AND THE NOTES THERETO AS AT AND FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2018. THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS. PLEASE REFER TO THE CAUTIONARY LANGUAGE UNDER THE HEADING “CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS”.
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ABOUT NEXA RESOURCES S.A.
Nexa Resources is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. The Company owns and operates five long-life underground polymetallic mines, three of which are located in the Central Andes of Peru (Cerro Lindo, El Porvenir and Atacocha) and two located in the Brazilian state of Minas Gerais (Vazante and Morro Agudo). Two of the Company’s mines, Cerro Lindo and Vazante, are among the 10 largest zinc mines in the world, which, along with the Company’s other mining operations, ranked the Company among the top five producers of mined zinc worldwide in 2017, according to Wood Mackenzie. Nexa also operates three smelting assets, two in Brazil - in the state of Minas Gerais (Três Marias and Juiz de Fora) - and one in Peru (Cajamarquilla). Nexa produces substantial amounts of copper, lead, silver and gold as by-products, which reduce our overall cost to produce mined zinc. For more details, please access www.nexaresources.com
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Nexa Resources - Investor Relations
News - 2Q18 Results.pdf