Nexa Resources S.A. (NYSE:NEXA) Q2 2022 Earnings Conference Call July 29, 2022 9:00 AM ET

Company Participants

Roberta Varella - Head, IR

Ignacio Rosado - CEO

Claudia Torres - Interim CFO

Leonardo Coelho - SVP of Mining

Conference Call Participants

Jens Spiess - Morgan Stanley

Lawson Winder - Bank of America

Orest Wowkodaw - Scotiabank

Operator

Good morning, everyone, and welcome to the Nexa Resources Second Quarter 2022 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. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference call over to Ms. Roberta Varella, Head of Investor Relations, for opening remarks. Please go ahead.

Roberta Varella

Good day and good afternoon, everyone, and welcome to Nexa Resources second quarter 2022 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 on-screen presentation through the webcast.

Before we begin, I'd like to draw your attention to Slide 2, as you 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's now my pleasure to introduce our speakers. Joining us today is Ignacio Rosado, our CEO; Leonardo Coelho, our Senior Vice President of Mining; and Mrs. Claudia Torres, our Interim CFO.

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

Ignacio Rosado

Thank you, Roberta, and thanks to everyone for joining us this morning.

Please let's move now to Slide 3, where we will begin our presentation. We had a very strong performance in our operations in this quarter. As anticipated, mining production increased from the first quarter of this year, mainly due to the resumption of the Vazante mine to full production.

As previously disclosed, Vazante was affected by heavy rainfall. The smelting business also performance and total metal production was up 15% quarter-over-quarter as a result of the higher supply of zinc in concentrate from Vazante in Brazil and the improved operational performance of Cajamarquilla in Peru after the temporary decrease in roaster utilization in March.

Our solid operational performance combined with our efforts to mitigate inflationary cost pressures and with a positive effect on prices, generated a record high adjusted EBITDA and a strong operating cash flow. We are happy to announce that we are on track to meet our production, sales and investment guidance for the year.