Q2 2024 Nexa Resources SA Earnings Call Transcript
Key Points
- Nexa Resources SA (NEXA) reported a 27% increase in consolidated net revenues quarter over quarter, driven by higher LME prices and increased smelting sales volume.
- Adjusted EBITDA for Q2 2024 was $200 million, a 64% increase from the previous quarter and a 180% increase year over year.
- The net leverage ratio improved significantly, decreasing from 3.75 times in Q1 2024 to 2.72 times in Q2 2024.
- Operational performance at Aripuana showed significant improvement, with increased utilization rates and positive operational cash flow generation in June.
- The Cerro Pasco integration project is advancing well, with expectations for approval in the upcoming months, which could unlock significant value for the company.
- Zinc production decreased by 5% compared to the first quarter of 2024 due to lower volumes from Peruvian mines and the absence of contributions from Morro Agudo.
- Smelting cash costs increased to $1.19 per pound in Q2 2024 from $1.12 per pound in Q2 2023, mainly due to higher raw material costs.
- The cost per run-of-mine increased by 10% year over year and 7% quarter over quarter, driven by higher third-party services and personnel costs.
- Despite improvements, the Aripuana project still faces challenges in achieving its target capacity and further production improvements.
- The company’s debt profile, although improved, still carries an average cost of debt of 6.61%, which could impact future financial flexibility.
Good morning and welcome to Nexa Resources second-quarter 2024 Conference Call. (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.
Good morning, everyone, and welcome to Nexa Resources second quarter 2024 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 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
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