Nexa Resources S.A. (NYSE:NEXA) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET

Company Participants

Rodrigo Cammarosano - Head of Investor Relations

Ignacio Rosado - President and Chief Executive Officer

Jose Carlos del Valle - Senior Vice President of Finance and Group Chief Financial Officer

Conference Call Participants

Operator

Good morning and welcome to Nexa Resources Second Quarter 2023 Conference Call. All participants will be in a listen-only mode. [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. After today's presentation, there will be an opportunity to ask questions. [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.

Rodrigo Cammarosano

Good morning, everyone, and welcome to Nexa Resources' second quarter 2023 earnings conference call. Thanks 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 onscreen presentation through the webcast.

Before we begin, I would like to draw your attention to slide number two, as we will be making forward-looking statements about our business. And we just ask that you refer to the disclaimer and the conditions surrounding those statements.

It is now my pleasure to introduce our speakers. Joining us today is our CEO, Ignacio Rosado; our CFO, Jose Carlos del Valle; and our Senior Vice President of Mining, Leonardo Coelho.

So now I will turn the call over to Ignacio for his comments. Ignacio, please go ahead.

Ignacio Rosado

Thank you, Rodrigo, and thanks to everyone for joining us this morning. Please, let's move now to slide number three, where we will begin our presentation. Let me begin by giving you a brief overview of our second quarter of 2023.

We continue to experience a volatile macroeconomic scenario as weak economic indicators from China came in below expectations. Additionally, concerns over the global growth outlook, in addition to persistent inflation in some sectors of important economies and tight monetary policy are negatively affecting base metal prices, especially zinc, the main metal in our portfolio.

In the second quarter, zinc price fell 19% quarter-over-quarter, and 35% year-over-year. In this difficult scenario, we are working on a portfolio of initiatives focused on cost reduction, CapEx, and working capital optimization, which I will discuss in more detail later in the presentation.