Nexa Resources is on track to commission its Aripuanã zinc mine in Peru by 2022, the company noted in its Q2 2021 earnings report on Aug 3.
The South American miner also increased its Capex guidance for 2021 with the outlay including costs for four other mines that are in various stages of exploration and surveys. The company’s production guidance for 2021 remains unchanged at 310,000-342,000mt zinc, 26,000-30,000mt of copper, and 42,000-49,000mt of lead.
In H1 2021, Nexa produced 159,000mt of zinc up 14pc from 139,000mt in H1 2020. Copper and lead production during the same period grew by 26pc and 57pc to 15,000mt and 22,000mt against 12,000mt and 14,000mt, respectively. Its smelting sales volume for January-June tallied at 305,000mt up 15pc from 265,000mt in H1 2020. Of this amount, zinc sales were at 285,000mt and zinc oxide stood at 20,000mt. The company’s overall sales guidance has also remained unchanged at 615,000-635,000mt.
Consolidated net revenue increased by 66pc to $1.28bn in H1 2021 from $778mn during the same period last year, with mining recovering to $239mn from a revenue loss of $14mn. Revenue from smelting operations grew by 75pc to $176mn from $101mn during the period under comparison.
Q2 2021 production, sales rise
In the second quarter, Nexa’s zinc production increased by 31pc to 82,000mt against 62,000mt in the year-ago quarter on growth in output at its zinc mines in Peru. Copper production during the quarter increased by 46pc to 6,900mt from 4,700mt in Q2 2020 while lead output in the same timeframe more than doubled to 12,000mt from 5,000mt.
Nexa’s consolidated revenue also doubled in Q2 to $686mn from $337mn in the same prior-year quarter, with revenue from mining growing 47 times to $141mn from $3mn and smelting revenue increasing by 136pc to $93mn from $39mn.
Adjusted EBITDA in H1 2021 increased by 393pc to $413mn in H1 2021 from $84mn in the same year-ago period and rose by 483pc to $233mn in Q2 2021 from $40mn in April-June 2020.