What is Competitive Landscape of Nexa Company?

Nexa was among the top five global producers of mined zinc and metallic zinc in 2024. Zinc production reached 327 kilotons, while copper production was 36 kilotons. Lead and silver production were 69 kilotons and 12 million ounces, respectively. Metal sales for 2024 totaled 591 kilotons, driven by higher production volumes.

Nexa's operations are primarily concentrated in Latin America. The company operates five long-life mines in Peru and Brazil. It also runs three smelters, two in Brazil and one in Peru. The Cajamarquilla smelter is the largest in the Americas. These strategic locations support the company’s competitive advantage in the Nexa competitive landscape.

Net revenues for 2024 were US$2,766 million, an 8% increase year-over-year. Adjusted EBITDA reached US$714 million, a 76% increase from the previous year. The company’s net leverage ratio improved to 1.7x by the end of 2024, down from 3.3x at the end of 2023. This strong financial performance supports the company's business strategy.

In Q1 2025, Nexa reported a net income of US$29 million, a significant turnaround from losses in Q1 and Q4 2024. Net revenues in Q1 2025 were US$627 million, up 8% year-over-year. These results signal a positive trajectory for the company's future growth prospects and challenges.

Nexa leverages proprietary technologies and operational efficiencies to reduce costs and align with global decarbonization demands. In December 2024, the company was recognized for its application of Digital Twin technology and predictive maintenance at the Cerro Lindo mine, leading to significant operational improvements. The introduction of hybrid loaders in January 2025 further supports its decarbonization strategy.

Nexa operates five long-life mines and three smelters in Latin America, including Cajamarquilla, the largest smelter in the Americas. Its 2024 Year-End Mineral Reserves and Resources update highlighted successful expansion and replacement of zinc reserves through near-mine exploration and infill drilling, reinforcing asset sustainability. Proven and Probable Mineral Reserves were estimated at 110.3 million tonnes as of December 31, 2024.

Nexa's financial discipline is a key advantage, with its second-highest annual Adjusted EBITDA of US$714 million in 2024. The company generated positive consolidated cash flow, reducing its net leverage ratio to 1.7x. This financial health enables strategic investments, such as the US$500 million bond issuance in April 2025, strengthening financial flexibility.

Nexa is reengineering 12 zinc oxide roasters to run on bio-oil, an industry first, projected to cut CO₂ emissions by 6,440 tons annually starting in 2025. This initiative, along with the adoption of hybrid loaders, demonstrates a strong commitment to sustainability, which enhances its market standing and aligns with global trends.

Technological advancements such as autonomous drilling systems, AI-powered mineral exploration, and advanced sensor technologies are revolutionizing mining. The sustainable mining market is projected to reach US$32.5 billion by 2027, driven by consumer preferences and regulatory changes. Global economic shifts and fluctuating commodity prices also play a key role in the industry.

Potential new U.S. tariffs and ongoing supply chain disruptions pose significant risks. New market entrants and evolving business models, especially those leveraging advanced technologies, could challenge Nexa's position. The zinc market experienced a deficit of 164,000 metric tons in 2024, which might impact the market.

Emerging markets, particularly India with its infrastructure development, offer growth prospects. Product innovations, such as new zinc-based products, present new opportunities. Nexa is investing in exploration and open to strategic partnerships in digital mining technologies and sustainable extraction methods.

Nexa is leveraging Digital Twin technology at Cerro Lindo to improve efficiency. The company is committed to decarbonization, reengineering roasters, and introducing hybrid loaders. Nexa is focusing on operational discipline, financial prudence, and deleveraging for sustainable growth in 2025.