Nexa Resources released its first earnings for 2025, covering the three‑month and full‑year periods ending December 31, 2025. The company reported revenue of $763.5 million for the quarter, up 4% from the $735.5 million reported in the same period a year earlier, driven by higher zinc output and a modest lift in by‑product sales. The company’s earnings per share fell to $‑0.03, missing the consensus estimate of $0.11 by $0.14, largely because of a one‑time restructuring charge related to the Aripuanã mine ramp‑up.
Despite the EPS miss, Nexa’s operating performance was strong. Mining cash costs for the quarter were $1.12 per pound of zinc, 48% below the company’s guidance of $2.20 per pound, reflecting disciplined cost control and a favorable mix of high‑grade ore. Smelting conversion costs also fell 12% YoY to $0.85 per pound, supporting a net cash flow margin of 12% versus 9% in the prior year.
The company’s flagship Aripuanã mine is on track to reach nameplate capacity in the second half of 2026, thanks to the successful commissioning of the fourth tailings filter. Management highlighted that the mine’s cash‑generator profile has shifted from a cash‑drain in 2024 to a positive cash flow of $30 million per month in the first quarter of 2025, a turnaround that underpins the company’s debt‑reduction strategy.
Looking ahead, Nexa raised its 2026‑2028 guidance. Zinc production is expected to grow 6% in 2026 and 8% in 2027, driven by ramp‑up at Aripuanã, Atacocha, and Vazante. Treatment charges are projected to recover to the $130‑$180 per ton range, a lift that will improve gross margins. The company reiterated its focus on maintaining liquidity, reducing leverage, and pursuing high‑return strategic investments.
Investors responded favorably to the results, with analysts highlighting the company’s exceptional cost discipline and the strong operational outlook. The announcement reinforced confidence in Nexa’s ability to generate cash flow and execute its growth plan.
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