Nexa reports 13% zinc output decline in 2020
(Kitco News) - Nexa Resources (NYSE:NEXA) (TSX:NEXA), one of the top five zinc producers worldwide, reported today that its consolidated net revenue totaled US$1,951 million in 2020 compared to US$2,333 million a year ago, a 16% decline the company explained by lower average metal prices and lower volumes.
Nexa said that zinc production in 2020 was 313kt, down 13% from 2019 mainly driven by the decrease in processed ore volumes at the company’s Peruvian mines, which were affected by the government-mandated temporary shutdown in response to the COVID-19 outbreak.
Metal sales volume of 585kt in 2020 was 6% lower versus 2019 driven by the decrease in production in the Cajamarquilla and Juiz de Fora smelters, which were partially offset by Três Marias’ solid performance.
The company’s adjusted EBITDA in 2020 was US$403 million compared with US$349 million in 2019, positively affected by the decrease in costs and exploration and project evaluation expenses, and the depreciation of the Brazilian real against the U.S. dollar.
Nexa is a large-scale integrated zinc producer developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is developing the Aripuanã project as its sixth underground mine in Mato Grosso, Brazil. Nexa was among the top five producers of mined zinc globally in 2020 and also one of the top five metallic zinc producers worldwide in 2020, according to Wood Mackenzie.