1Q21 Operational and Financial
- Consolidated net revenue reached US$603 million in the first quarter compared with US$442 million a year ago, mainly driven by higher metal prices and volumes.
- Zinc production of 77kt in the quarter increased slightly (+0.7%) compared to 1Q20, primarily driven by higher production in Cerro Lindo and El Porvenir, which were impacted in 1Q20 by the temporary operating restrictions, due to COVID-19, imposed by the Peruvian government in mid-March 2020.
- In 1Q21, metal sales were 148kt, up 2% higher from 1Q20, mainly driven by the strong demand in our home markets.
- Adjusted EBITDA was US$180 million in 1Q21 compared with US$44 million in 1Q20 and US$167 million in 4Q20.
- Mining cash cost in 1Q21 was US$0.24/lb compared with US$0.52/lb in 1Q20, mainly driven by higher by-products credits and lower operating costs. Compared to 4Q20, mining cash cost decreased by 27%.
- Smelting cash cost1 in 1Q21 was US$1.00/lb compared with US$0.80/lb in 1Q20, mainly explained by higher zinc prices and the increase in operating costs as a result of higher production. Compared to 4Q20, smelting cash cost increased by 8% due to higher prices and lower by-products credits.
- Incremental costs related to COVID-19 in 1Q21 amounted to US$4.2 million, which were partially offset by other costs savings.
- Net income in 1Q21 totaled US$32 million or US$0.17 per share.
- Nexa declared in February and paid in March a cash dividend of US$0.26 per common share to its shareholders for a total payment of approximately US$35 million.
- Net debt to Adjusted EBITDA for the last twelve months maintained its downward trend and stood at 1.73x, reflecting the improvement in the results of our operations.
- Liquidity remains strong. Total cash amounted to US$1,034 million at March 31, 2021 and our current available liquidity is US$1,334 million, including the revolving credit facility.
- On March 17, 2021 Nexa announced the acquisition of 29,895,754 common shares of Tinka Resources Limited ("Tinka") from an arm's length shareholder in a private transaction at a price of C$0.26 per share. A second tranche of 654,758 common shares was acquired in April 2021 for the same price. As a result, as of the date of this release, Nexa owns approximately 9% of the issued and outstanding common shares of Tinka.
- In April, we published our 2020 Annual Report according to the Integrated Reporting Council (IIRC) standard and to the Global Reporting Initiative (GRI) standard.
- In April, Moody's affirmed its "Ba2" rating on Nexa and changed the outlook from "negative" to "stable". The change reflects (i) the normalization of production levels after the disruptions caused by the lockdowns in Peru in 2020; (ii) the efficiencies and costs savings achieved by the Nexa Way program; and (iii) adequate liquidity.
