Nexa Resources’ mine operations in Brazil are running at higher output allowing the company to partly offset reduced volumes in Peru, the company said in its earnings report on Friday.
The global zinc miner’s key development project, Aripuanã, is advancing as planned on its revised schedule, and production is slated to commence in early 2022.
Looking ahead, the company is focused on its capital allocation guidelines and plans to continue developing a strategy to gradually increase its zinc and copper mining business in North and South America.
In 2020, the company reported that its operations were strong and sustainable despite the difficulties from restrictive measures due to the COVID-19 pandemic. The company is operating at normal output levels since H2 2020 when the Peruvian government’s temporary suspension of its mines ended and smelting production resumed.
Following Nexa’s production report released on Jan 19 indicating downward yearly output, the miner reported Friday of a resulting 16.4pc decrease in net revenue to $1.95bn in 2020 compared to $2.33bn in 2019. Zinc and lead prices fell while volumes were reduced due to the pandemic. At that time, the LME average prices of zinc fell 11pc, lead fell 9pc, and copper rose 3pc.
However net revenue improved by 8.3pc to $634.5mn in Q4 2020 against $585.8mn in Q4 2019 due to recovering zinc and copper prices with the LME average prices for zinc up 10pc and copper rising by 22pc. Meanwhile, the price for lead dropped by 7pc in Q4 2020 compared to the last quarter of 2019.
The company’s adjusted EBITDA rose 15pc to $402.9mn in 2020 compared to $349mn in 2019, mostly due to lowered mining and smelting costs. Adjusted EBITDA rose to $167.3mn in Q4 2020 against $64.9mn in the same period one year prior because of lowered operating costs.