Nexa Resources S.A. (NEXA): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how Nexa Resources S.A. (NEXA) actually makes money with its integrated mine-smelter setup, especially now that they're navigating a tight capital environment. Honestly, the model hinges on balancing high sustaining CapEx, guided at $316 million for 2025, with a solid $790 million liquidity position, all while pushing forward on big plays like Cerro Pasco Phase I. They promise customers a stable supply of refined zinc and are chasing net zero by 2050, but the real engine is turning those five operating mines and three smelters into that reported $2.84 billion TTM revenue as of September 2025. Dive into the nine blocks below to see exactly how their key activities and customer segments line up with those revenue streams and cost pressures.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Nexa Resources S.A. (NEXA) solidified in 2025 to support its operations and growth strategy. These aren't just names on a contract; they represent crucial financial backing and operational support.

Financial institutions for $500 million bond issuance

Nexa Resources S.A. (NEXA) executed a significant liability management transaction in early April 2025, pricing an offering of $500 million aggregate principal amount of 6.600% senior unsecured notes due 2037, which closed on April 8, 2025. The notes are guaranteed by Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A. The primary purpose was to extend the debt maturity profile, allowing for the repurchase of approximately 49% of its 2027 notes and 72% of its 2028 notes through concurrent tender offers.

The key financial partners involved in this offering and the related tender offers included:

The remaining 2027 notes were expected to be fully redeemed via a make-whole call set for May 23, 2025.

Engineering and construction firms for Cerro Pasco project

The Cerro Pasco Integration Project is a central pillar of Nexa Resources S.A. (NEXA)'s strategy in Peru, aimed at extending the operational life of the complex. While specific construction firms for major build-outs weren't detailed, external technical support was evident. SLR Consulting (Canada) Ltd. was retained to prepare the Technical Report Summary (TRS) for the integration of the El Porvenir and Atacocha mines into the complex. Capital expenditure (CAPEX) for Phase I of the project, focused on the tailings pumping and piping system, saw significant investment in 2025.

Investment in the Cerro Pasco Integration Project Phase I during 2025:

• 1Q25 CAPEX allocation: approximately $1 million.
• 2Q25 CAPEX allocation: approximately $17 million, bringing the six-month total to $18 million.
• 3Q25 CAPEX allocation: approximately $12 million.

The company's total consolidated CAPEX guidance for the full-year 2025 remained $347 million.

Third-party concentrate suppliers for smelting operations

Nexa Resources S.A. (NEXA)'s smelting segment relies on external concentrate sourcing, which was a dynamic factor in 2025 performance. The availability and pricing of these third-party inputs directly influenced production volumes and costs.

Key data points related to third-party concentrate supply:

• In 3Q25, zinc metal and oxide production of 147kt was down 4% year-over-year, consistent with guidance reflecting lower availability of third-party concentrates amid reduced treatment charges (TCs).
• The 2025 benchmark zinc treatment charge (TC) assumption used for guidance was $80/t concentrate.
• In 1Q25, increased costs were impacted, among other factors, by lower TCs paid by third-party concentrate suppliers.
• The consolidated smelting conversion cost in 2Q25 stood at $0.39 per pound.

Local communities for maintaining social license to operate

Maintaining the social license to operate involves structured engagement and investment guided by formal community documents. Nexa Resources S.A. (NEXA) uses processes like the Social Agenda and the derived Local Development Plan (LDP), which is updated every 5 years, to guide its social investment. The Integrated Socioeconomic Plan (ISP) details the action areas for social investment in the locality.

Concrete social investment and conflict data from recent years inform the 2025 strategy:

In 2025, specific community support included:

• The Cerro Lindo solar project, which provided renewable energy to 120 farming families.
• Social programs supporting rural producers and women's financial autonomy near the Vazante mine.

Historical conflict data shows the context for ongoing relationship management:

The operations near Quechua populations in Peru (Cerro Lindo, Atacocha, El Porvenir) involve formal social investment agreements with local communities. For the Aripuanã unit, which is near indigenous lands, the company has formal agreements with adjacent indigenous communities.

Finance: review Q4 2025 cash flow projections against the $347 million 2025 CAPEX guidance by next Tuesday.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for Nexa Resources S.A. as of late 2025. These are the activities that keep the metal moving from the ground to the market and the balance sheet in order.

Integrated zinc mining and smelting in Peru and Brazil

Nexa Resources S.A. runs an integrated model, meaning they mine the ore and then process it through their own smelters in Brazil. This linkage is key to their revenue generation. For the third quarter of 2025 (3Q25), the operational output showed clear momentum in mining and record volumes in smelting.

The company reported net revenues of US$764 million for 3Q25, with an Adjusted EBITDA of US$186 million in the same period. Net income for 3Q25 reached US$100 million. The integrated segment's performance is best seen in the commodity volumes:

Executing major capital projects like Cerro Pasco Phase I

A major focus is advancing the Cerro Pasco Integration Project, specifically Phase I, which centers on upgrading the tailings pumping and piping system to boost efficiency and extend mine life. Construction for Phase I started in July 2025. The total consolidated Capital Expenditure (CAPEX) guidance for the full-year 2025 remains set at US$347 million. For Phase I specifically, the investment in 2Q25 was US$17 million, and in 3Q25, approximately US$12 million was invested. The total expected investment for this project in 2025 is US$44 million.

The allocation of capital is disciplined:

• Total consolidated CAPEX guidance for 2025: US$347 million.
• Sustaining investments expected: US$316 million.
• Investment in Phase I of Cerro Pasco (3Q25): US$12 million.

Mineral exploration to replace and increase reserves

Nexa Resources S.A. is actively investing to secure future resources. The company reaffirmed its 2025 guidance for exploration and project evaluation spending. This activity is crucial for replacing reserves and supporting long-term production capacity.

The total planned investment for exploration and project evaluation in 2025 is US$88 million. This breaks down further into specific expense categories:

• Mineral exploration expenses guidance: US$50 million.
• Project evaluation expense guidance: US$18 million.
• In Q1 2025, $12 million was allocated to mineral exploration and mine development.

Proactive liability management to extend debt maturity

The company executed a significant move in its liability management strategy early in 2025 to manage upcoming maturities and optimize its capital structure. In April 2025, Nexa Resources S.A. successfully issued a US$500 million, 12-year bond carrying a 6.600% coupon rate. This action was used to fund the early redemption of the remaining 2027 notes and repurchase approximately 72% of its outstanding 2028 notes. This successfully extended the average debt maturity profile to 10.4 years. At the close of 3Q25, the total net debt stood at US$1,479 million, which resulted in an improved Net debt/LTM Adjusted EBITDA ratio of 2.2x. Finance: draft 13-week cash view by Friday.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Key Resources

Nexa Resources S.A. (NEXA) maintains a core set of physical and intellectual assets underpinning its integrated production model across Latin America.

The physical operating footprint includes:

• Five long-life polymetallic mines located in Peru and Brazil.
• Three zinc smelters in Brazil and Peru.

The specific operational assets as of late 2025 include:

The company's mineral base, reported as of December 31, 2024, provides the foundation for its primary product, zinc, alongside by-products:

Nexa Resources S.A. reports significant financial resources available to support operations and strategic initiatives. As of the end of the third quarter of 2025 (3Q25), the liquidity position was:

• Total Liquidity: $790 million.
• Undrawn Credit Facility: $320 million (sustainability-linked revolving credit facility).

Operational expertise is embedded in its long history and specific technological deployments:

• Experience: Over 65 years developing and operating mining and smelting assets in Latin America.
• Smelting Technology: Machine learning models implemented at Cajamarquilla to predict silver, iron, and sulfur levels, optimizing concentrate quality and process control.
• Energy Source: The Cajamarquilla smelter operates entirely on renewable hydroelectric energy.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Value Propositions

You're looking at Nexa Resources S.A. (NEXA) and want to know what truly sets their offering apart in the base metals space, especially now, late in 2025. It boils down to a reliable, integrated flow of material, supported by high-potential assets and a clear ESG path. Honestly, the value proposition hinges on converting operational wins into shareholder value, which we saw clearly in the third quarter.

Integrated, Stable Supply of Refined Zinc and Zinc Oxide

Nexa Resources S.A. offers customers a value proposition rooted in its integrated mine-smelter model, operating across Peru and Brazil. This structure is designed to ensure a consistent output of primary products like zinc metal and zinc oxide. For instance, in the third quarter of 2025, the company reported zinc metal and oxide sales of 150kt, which was a 3% sequential increase from the prior quarter, showing commercial delivery against operational improvements.

The company's full-year 2025 production outlook, as guided earlier in the year, projects a significant volume of primary metal supply. You can see the expected scale of this integrated output below, which underpins their supply commitment:

The operational momentum in Q3 2025 was strong, with zinc production hitting a record 84,000 tons (or 84kt), marking a 14% jump from the previous quarter. This output, supported by record performance at the Cajamarquilla smelter, directly feeds the supply promise.

Diversified Revenue from High-Value By-Products (e.g., Silver, Gold)

While zinc is the core, the value proposition is enhanced by revenues from co-products, which help cushion the cyclical nature of the main commodity. Silver production in Q3 2025 stood at 2.9 million ounces. Furthermore, the Q3 2025 results reflected a higher by-products contribution overall, which helped drive the Adjusted EBITDA up to $186 million.

The company is a significant global producer, recognized as one of the top five worldwide for both mined and metallic zinc production in 2024. This scale allows for meaningful by-product realization. The overall TTM net revenues ending September 30, 2025, reached approximately $2.84 billion.

• Silver production in 2024 totaled 12 MMoz.
• The company also produces copper and lead alongside zinc.
• By-product contribution was a key driver in the Q3 2025 sequential improvement.

Commitment to Net Zero by 2050 and 2030 ESG Targets

Nexa Resources S.A. positions its low-carbon operations as a key differentiator. The company has a stated commitment to achieving net zero by 2050. This commitment is supported by operational facts, such as one of its major smelters being powered entirely by renewable hydroelectric energy.

While the specific numerical targets for 2030 aren't detailed in the latest reports, the focus on decarbonization efforts and sustainability is evident in their strategic narrative. This focus helps attract capital and customers prioritizing sustainable sourcing. The company's Q3 2025 Net Income of $100 million reflects an improved financial stability that supports these long-term ESG investments.

High-Potential, Long-Life Assets like the Cerro Pasco District

The asset base, particularly in Peru, offers long-term potential, which is a critical part of the value proposition for a capital-intensive business. The Cerro Pasco Complex, which includes the El Porvenir and Atacocha mines, is central to this. The technical report supporting the integration of these mines projected underground fully operational years spanning from 2025 - 2032.

The asset's current operational contribution is tangible, with the Cerro Pasco Complex contributing approximately 1.2kt of zinc per week following the temporary disruption in August 2025. Investment is being channeled here to secure this future; for instance, approximately $12 million of the Q3 2025 CAPEX was allocated to Phase I of the Cerro Pasco Integration Project.

The company is actively investing to extend this life of mine, planning 51,000m of exploration drilling in Peru for 2025, with specific focus on targets within the Pasco complex to extend mineralization to upper deposit levels. This proactive capital deployment, evidenced by the full-year 2025 CAPEX guidance of $347 million, shows a commitment to reinforcing the foundation for long-term growth.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Customer Relationships

You're looking at how Nexa Resources S.A. manages its relationships with the industrial buyers of its metals and with the financial markets, which is key for a vertically integrated producer.

Dedicated global sales team for industrial clients

Nexa Resources S.A. deploys a sales structure designed to move beyond simple commodity trading, focusing on customized service for industrial clients across its global footprint. The sales team manages the concentrate sales portfolio, using the benefits of integration between its mines and smelters to improve sales intelligence. This team actively works to differentiate the offering by providing product formats that go beyond the standard 25-kg ingots, which is the benchmark for the commodity priced on the London Metal Exchange. For instance, they customize chemical and physical specifications, along with identification marks, for specific customers. The volume of refined metal sold reflects this effort; in the second quarter of 2025, zinc metal and oxide sales reached 145kt.

The company tailors its physical product formats to better serve specific industrial needs, moving away from a one-size-fits-all approach. Here's a look at some of the product format and alloy offerings as of late 2025:

The sales planning team also revisited product relocation strategies, considering both locality and customer demand, which resulted in new orders from Asia and helped keep sales stable in the period following the first half of 2025.

Long-term supply agreements with key manufacturers

As an integrated mining-smelting company, Nexa Resources S.A. naturally has a degree of insulation from the most volatile short-term market pricing mechanisms, especially concerning treatment charges (TCs) for its concentrate purchases. For the 2025 fiscal year, only approximately 30% of their concentrate purchases (from third-parties and own mines) were subject to the 2025 TC benchmark of US$80/t concentrate. Management expects a similar level of exposure in 2026. This structure suggests a reliance on pre-negotiated, likely long-term, contracts for the remaining 70% of their concentrate needs, which helps secure operational stability for their smelters like Cajamarquilla, Três Marias, and Juiz de Fora.

Investor relations for transparency with financial markets

Nexa Resources S.A. maintains an active cadence of communication with financial markets to ensure transparency regarding its performance and strategic direction. The company reported its financial results for the third quarter of 2025, showing a Net Income of US$100 million and an Adjusted EBITDA of US$186 million for that quarter. Furthermore, the company actively manages market perception of its financial health, reporting that net leverage improved to 2.2x from 2.3x in the preceding quarter, while management reiterated its commitment to deleveraging. The investor relations function supports this by publishing regular updates and presentations, such as the Institutional Presentation in December 2025 and October 2025.

Key financial metrics communicated to investors in late 2025 included:

• Net Revenues in 2Q25 totaled US$708 million.
• Adjusted EBITDA in 2Q25 was US$161 million.
• 2025 Capital Expenditures (CAPEX) guidance was reaffirmed at US$347 million.
• 2025 investment planned for mineral exploration is US$70 million.

Community engagement to ensure operational continuity

Operational continuity is directly linked to maintaining strong relationships with local communities near its assets in Brazil and Peru. Nexa Resources S.A. demonstrates this through specific, measurable social investments announced throughout 2025. These projects focus on stakeholder dialogue, economic empowerment, and local infrastructure, which mitigates social unrest risks that could otherwise disrupt production. The company's commitment is visible through several 2025 initiatives:

• Inaugurated the San Juan de Milpo Sports Center in Pasco.
• Hosted the second Aripuanã Water Seminar in April 2025.
• Signed cooperation agreements near the Vazante mine to support rural producers.
• Expanded access to renewable energy for over 120 farming families near Cerro Lindo via solar kits in May 2025.

The focus on social impact is part of a broader ESG commitment, which also includes a target to reduce direct (scope 1) greenhouse gas emissions by 20% by 2030, using 2020 as the baseline year. The company's approach to community partnership is concrete, as shown by the direct support provided to local producers and families.

Finance: draft 13-week cash view by Friday.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Channels

You're looking at how Nexa Resources S.A. gets its refined metals-zinc, copper, lead, silver, and by-products-out to the market, which is a critical part of their integrated mine-smelter model. Honestly, for a company this size, the channels are all about scale and reliability, moving millions of pounds of metal globally.

Direct sales force to industrial end-users

This channel represents the core delivery of Nexa Resources S.A.'s primary refined products, like zinc metal and zinc oxide, directly to industrial consumers. The volume moved through this channel is substantial, reflecting their position as a major global zinc producer. For instance, in the third quarter of 2025 (3Q25), zinc metal and oxide sales totaled 150,000 tonnes, which shows the direct throughput capacity of this sales arm. This is the mechanism that converts their smelting output into recognized revenue streams, which hit US$764 million in net revenues for that same quarter. The company's strategy emphasizes being a benchmark 'from mines and smelters to our end customers,' which points directly to a strong, managed direct sales presence targeting industrial needs.

• Zinc metal and oxide sales volume in 3Q25: 150,000 tonnes.
• Zinc metal and oxide sales volume in 2Q25: 145,000 tonnes.
• 2025 sales guidance for zinc metal and oxide is set between 560kt and 590kt.
• Total metal sales in 2024 were 591 kilotons.

Global logistics and shipping network for refined metals

Moving that metal from the smelters in Peru and Brazil to global customers requires a robust logistics backbone. This network handles the physical movement of the finished products, which is a major operational component given the scale. The company's integrated model means they manage the journey from mine concentrate to the final shipment. While specific shipping costs aren't broken out here, the sheer volume dictates the network's importance. The 2Q25 results noted higher smelting sales volume, which is the physical product flowing through this network, and the company's full-year 2025 guidance anticipates total metal sales volume to be lower by about 15kt compared to 2024, a factor that directly impacts logistics planning.

The company is focused on expanding boldly into new markets, which means this logistics channel is constantly being tested and adapted to new geographic demands outside their traditional base.

Metal exchanges and commodity trading platforms

For the base metals, exchanges like the London Metal Exchange (LME) are the reference points for pricing, even if the final sale isn't a spot trade on the floor. Nexa Resources S.A. navigates this by managing treatment charges (TCs) on their concentrate sales, which are directly influenced by these global benchmarks. The third quarter of 2025 saw performance supported by 'better prices for all metals,' indicating successful navigation of the commodity markets. Furthermore, the company's strategy to lower TCs in 2025 was a direct response to market conditions, showing active engagement with the trading environment to protect margins. This channel is less about physical movement and more about price realization and risk management through hedging and contract terms.

Here's a quick look at the output volumes that these channels are moving as of late 2025:

The interplay between direct sales volume and the market pricing environment is what defines the success of these channels. If onboarding takes 14+ days, churn risk rises, but for bulk metals, the risk is more about securing favorable treatment charges on the exchange side.

Finance: draft 13-week cash view by Friday.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Nexa Resources S.A. (NEXA)'s output, which is heavily weighted toward zinc metal and its derivatives. These are the entities that take the raw materials from Nexa's integrated mine-smelter model and turn them into finished goods or trade them on the global market. Nexa Resources S.A. is one of the top five producers of metallic zinc worldwide, so the scale of transactions with these groups is substantial.

Global industrial manufacturers form a bedrock for Nexa Resources S.A.'s demand, particularly those involved in galvanizing-protecting steel from corrosion-and die-casting, which uses zinc alloys for complex parts. These manufacturers rely on a steady supply of high-quality zinc metal. The company's smelting segment, which produces the final metal products, is a major revenue driver; for instance, smelting sales volume was a key factor in the revenue increase seen in the second and third quarters of 2025.

Metal traders and commodity buyers are another critical segment. These are the entities that manage the physical movement and short-term price risk of metals, buying large volumes from producers like Nexa Resources S.A. and distributing them globally. They are sensitive to market volatility, which is why Nexa's proactive liability management, including the issuance of a US$500 million, 12-year bond with a 6.600% coupon rate in April 2025, helps ensure operational stability for its customers.

The chemical and pharmaceutical industries represent a specialized market, primarily for zinc oxide and sulfuric acid, which are by-products or derivatives from the smelting process. Zinc oxide is used in everything from rubber to sunscreens. The output from the Três Marias facility, which includes zinc oxide, has been noted as a driver for sales volume increases. Sulfuric acid, another key output, is vital for various industrial processes, including fertilizer production.

Here's a look at the recent sales volumes for the primary product-zinc metal and oxide-that flows to these customer segments. This gives you a concrete sense of the scale of commercial activity in late 2025.

The overall commercial delivery capability is reflected in the sales guidance for the full year 2025, which Nexa Resources S.A. reaffirmed at 560kt to 590kt for zinc metal and oxide. Also, remember that revenue isn't just zinc; by-products like copper, lead, and silver contribute significantly, meaning the traders and industrial users buying those co-products are also key customers. For example, net revenues in 3Q25 reached US$764 million, supported by higher smelting sales volume.

The company's integrated model means that the mining segment feeds the smelting segment, which then sells to these diverse customer groups. The operational recovery at facilities like Cajamarquilla and Juiz de Fora directly translates to more material available for these segments. If onboarding takes 14+ days, churn risk rises, so consistent supply is defintely paramount for these buyers.

Finance: draft 13-week cash view by Friday.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Cost Structure

You're looking at the cost side of Nexa Resources S.A. (NEXA) as of late 2025, and honestly, it's a mix of heavy, necessary spending to keep the mines running and the financial costs of recent balance sheet moves. The cost structure is dominated by capital intensity and the ongoing expense of extracting and processing polymetallic ores.

High Sustaining Capital Expenditure

Nexa Resources S.A. is definitely a capital-intensive business, and you see that clearly in the 2025 guidance. The total consolidated Capital Expenditure (CAPEX) guidance for the full year 2025 remains set at $347 million. The bulk of this spending is earmarked for keeping current operations stable and safe, not just for growth.

The high sustaining capital expenditure is guided at $316 million for 2025. This figure shows the commitment to maintaining asset integrity and production capacity across the integrated operations in Brazil and Peru. Here's how that sustaining spend breaks down:

For context, the first half of 2025 saw $137 million invested, mostly in sustaining activities like mine development and maintenance. The third quarter alone accounted for $90 million of CAPEX, again primarily sustaining.

Operational Costs for Mining and Smelting

Operational costs cover everything from digging the ore out of the ground to turning the concentrate into refined metal. Energy, labor, and materials are the big drivers here, and Nexa Resources S.A. has seen cost pressures.

For the mining segment, consolidated run-of-mine mining costs at the mid-range of the 2025 guidance are expected to increase by 16% year-over-year. This increase is largely due to the first-time inclusion of Aripuanã's run-of-mine mining costs estimates in the consolidated figures, alongside higher costs at Vazante. In 2Q25, the consolidated mining cash cost net of by-products improved sequentially to -$0.11 per pound.

In the smelting segment, conversion costs are expected to be higher in 2025 compared to 2024 across all units. In 2Q25, the consolidated smelting conversion cost hit $0.39 per pound, which was up 30% year-over-year. The primary factors influencing these operational expenses include:

• Higher maintenance expenses.
• Increased third-party services and input costs.
• Higher operational costs at Cajamarquilla and the Brazilian operations year-over-year.

Interest Expense on Debt

Managing the balance sheet is a significant cost component, especially after recent liability management actions. You need to account for the interest expense on the outstanding debt load.

A major event in 2025 was the issuance of a $500 million, 12-year bond on April 8, 2025, carrying a 6.600% coupon rate. Interest payments for this specific note are scheduled for April 8 and October 8 of each year, with the first payment due on October 8, 2025. The proceeds from this issuance were used to redeem the remaining 2027 notes and repurchase about 72% of the 2028 notes.

The impact of financing costs was visible in the second quarter of 2025, where Nexa Resources S.A. paid $63 million in interest and taxes. The net income for 2Q25 was notably impacted by higher financial expenses related to this liability management initiative.

Exploration and Project Evaluation Costs

To secure the long-term resource base, Nexa Resources S.A. allocates substantial funds to exploration and project evaluation, which are treated as operating expenses or development costs outside of sustaining CAPEX.

The total guidance for Mineral Exploration and Project Evaluation and Other Expenses for the full year 2025 is set at $88 million. The planned investment breakdown for 2025 allocates $70 million toward exploration efforts. Specifically, $50 million of that exploration budget is expected to target mineral exploration expenses for greenfield and brownfield projects.

The project evaluation expense guidance is set at $18 million for 2025. This includes specific projects like the IT system simplification and extending the life of the tailings dam at the El Porvenir mine. In the first half of 2025, the company reported spending $32 million on Project Evaluation and $50 million on Mineral Exploration.

Nexa Resources S.A. (NEXA) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Nexa Resources S.A. as of late 2025. The business model leans heavily on its integrated mine-smelter setup, meaning revenue comes from both the raw materials extracted and the processed metals sold.

The top-line financial performance shows solid momentum. For the trailing twelve months ending September 30, 2025, Nexa Resources S.A. reported net revenues of approximately $2.84 billion. This figure represents a 6.95% year-over-year growth in revenue for that TTM period.

The revenue streams are clearly segmented, reflecting the two main operational pillars: mining and smelting. The smelting segment, which handles the refined products, was a significant driver in the mid-2025 quarters. For instance, in the second quarter of 2025, the smelting sales volume, comprising zinc metal and oxide, reached 145,000 tonnes, marking a 12% sequential increase from the first quarter of 2025. This operational success translated into a strong quarterly revenue figure of $708 million in Q2 2025.

By the third quarter of 2025, net revenues climbed further to $764 million, supported by higher mining output and favorable metal prices. The quality of this revenue is tied directly to the sales of refined products and the valuable by-products generated during processing.

Here is a look at the reported revenue composition from the Q3 2025 figures, which helps you see the relative weight of the segments:

The sales of refined zinc metal and zinc oxide form the core of the Smelting segment's contribution. However, the by-products are crucial for margin stability, especially when primary metal prices fluctuate. These by-products include:

• Sales of copper concentrate and metal.
• Sales of lead concentrate and metal.
• Sales of silver, which has seen favorable price momentum.
• Sales of sulfuric acid, a key chemical by-product.

The benefit from stronger by-product prices and sales volumes was explicitly noted as a driver for the sequential Adjusted EBITDA increase in Q2 2025. This diversification helps Nexa Resources S.A. manage the volatility inherent in the zinc market, so you see these other commodities directly impacting the overall financial health.