Nexa Resources S.A. (NYSE:NEXA) Q3 2024 Earnings Conference Call November 1, 2024 9:00 AM ET

Company Participants

Ignacio Rosado - CEO
José Carlos del Valle - CFO
Leonardo Coelho - SVP, Mining Operations
Rodrigo Cammarosano - Head of IR

Conference Call Participants

Orest Wowkodaw - Scotiabank
Carlos de Alba - Morgan Stanley
Lawson Winder - Bank of America

Operator

Good morning. And welcome to Nexa Resources Third Quarter 2024 Conference Call. All participants will be in listen-only mode [Operator Instructions]. This event is being recorded and is also being broadcast via webcast and maybe 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 third quarter 2024 earnings conference call. Thank you 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 would like to draw your attention to Slide number 2 where we will be making forward-looking statements about our business, and we ask you to 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, José Carlos del Valle; and our Senior Vice President of Mining Operations, 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 good morning to everyone. Thanks for joining us today to go over our third quarter results of 2024. Let's move to Slide number 3 where we will begin our presentation with the main highlights of the quarter. We are pleased with our third quarter and year-to-date results. We have delivered consistent operational performance and maintained financial discipline. Our commitment to cash flow generation initiatives has been a key driver supported by positive momentum in metal prices, especially zinc, which reinforces industry resilience and strengthen market fundamentals. With nine months behind us, we are on track to meet our full year outlook. Zinc metal and oxide metals rose by 3% quarter-over-quarter supported by improved demand in our home markets. In mining production, zinc was relatively flat compared to last quarter while lead and silver increased by 2%, each driven by higher treated ore volumes and grades. Copper production decreased by 4% due to lower grade areas in the period. Our financial results were strong. Total consolidated net revenues for the third quarter reached $709 million, up by 9% year-over-year largely due to higher average LME prices. Adjusted EBITDA was $183 million, 111% higher than the $87 million reported in the same quarter last year with adjusted EBITDA margin of around 26% expanding by 12 basis points. This performance was mainly driven by higher byproduct contribution, higher zinc prices and lower mineral exploration and project evaluation expenses.