Brazil’s Nexa ups EBITDA 483% in Q2 on strong production and higher metal prices
(Kitco News) - Brazilian mining company Nexa Resources, a global producer of zinc, copper, lead and silver, announced today that its zinc production of 82kt in Q2 2021 increased 31% and 5% compared to Q2 2020 and Q1 2021, respectively, primarily driven by higher production in Peruvian mines, which were impacted in Q2 2020 by operating restrictions imposed by the Peruvian government due to COVID-19.
The company said that its lead and copper production followed the same trend as zinc and increased by 150% and 46% from Q2 2020, respectively. Compared to Q1 2021, copper production decreased by 1.1kt while lead production increased by 1.3kt.
Nexa’s consolidated net revenue reached US$686 million in the second quarter compared with US$337 million a year ago, mainly driven by higher metal prices and volumes.
Adjusted EBITDA was US$233 million in Q2 2021, a 483% increase compared with US$40 million in Q2 2020, with adjusted EBITDA for the first six months ended June 30, 2021, totaling US$413 million.
Net income was US$122 million in Q2 2021 compared to a net loss of US$56 million in Q2 2020. The net income was primarily driven by the improvement in operating income, which was positively affected by higher metal prices, increase in sales volumes and better operating performance. Net income attributable to Nexa’s shareholders was US$109 million in Q2 2021 resulting in earnings per share of US$0.82.
The company added that its production guidance for 2021 is unchanged at 310-342kt of zinc, 26-30kt of copper, 42-49kt of lead and 8,531- 9,317koz of silver. Sales and cash cost guidance for 2021 is also unchanged.