Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Luxemburg-based Nexa Resources posted a decrease in mining and metal production in H1 and Q2 2020 because of the COVID-19 pandemic. 

 

The company has revised its 2020 zinc production guidance to 300-335,000mt, while its copper and lead guidances have been modified to 30-33,000mt and 33-38,000mt, respectively.

 

In the first half of 2020, Nexa’s consolidated metal sales decreased by 12pc to 265,200mt from 301,500mt in H1 2019. During the same period, zinc production fell by 23pc to 139,300mt from 181,100mt, while copper output fell by 33pc to 11,700mt from 17,500mt, and lead production declined by 45.7pc to 14,000mt from 25,400mt. 

 

The pandemic wreaked havoc on the company’s metal production and sales during the second quarter of this year, and its consolidated metal sales fell by 23.2pc to 119,900mt from 156,000mt in Q2 2019. 

 

Nexa produced 62,400mt of zinc and 4,700mt each of copper and lead in Q2. This represented decrease of 31.7pc in zinc output from 91,400mt a year earlier, and a decline of 44.3pc in copper production from 8,400mt. Lead production also dropped by 64.4pc from 13,100mt in Q2 2019. 

 

The company posted an EBITDA profit of $83.6mn in H1, declining by 63pc from a profit of $226.3mn in the first six months of 2019. In the quarter ended June 30,2020, Nexa reported an EBITDA of $39.9mn, which declined by 66.3pc from $118.5mn in Q2 2019. 

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