October 31, 2018 – Nexa Resources S.A. (NYSE/TSX:NEXA) ("Nexa” or the "Company") today reported operating and financial results for the third quarter of 2018 (“3Q18”).
Tito Martins, CEO of Nexa: “We are proud to reach the first anniversary since our Initial Public Offering having achieved significant milestones. Our in-house initiatives to strengthen our mineral exploration and drilling campaigns, mine development and production expansion, have played an important role in helping us deliver solid results. We were able to continuously increase our zinc equivalent mining production over the year, quarter after quarter, mitigating the expected ore grade reduction in Cerro Lindo.
The approval of the construction of the Aripuanã project is a key milestone for us, reinforcing the commitment to develop our pipeline of greenfield projects. It contributes to our long-term plan to increase mining production and reduces third-party zinc concentrate supply needs. We are proud to develop a world-class project which incorporates high level safety standards, cutting-edge environmental practices, and utilizes high levels of automation, among several other innovative initiatives.
As we approach the end of the year, we are fine-tuning the mining production guidance range for gold (up from 17-19 koz to 23-25 koz) and lead (down from 55-60 kton to 50-55 kton) while reinforcing our guidance for zinc, copper and silver. We are also slightly reducing our CAPEX guidance from US$ 280 million to US$ 260 million for 2018 due to the BRL devaluation effect. We maintain our focus on financial discipline, generating positive cash flows year to date and maintaining a solid capital structure that will support future growth. Finally, we continue to deliver important improvements in our safety standards, transparency, compliance and governance standards as well as reinforcing our commitment to local communities.”
NEXA RESOURCES S.A. (“NEXA”) RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2018
THIS EARNINGS RELEASE DATED AS OF OCTOBER 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 NINE-MONTH PERIODS ENDED SEPTEMBER 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 ir.nexaresources.com
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Nexa Resources - Investor Relations
News - 3Q18 Results.pdf