Summary

• Nexa Resources pivots from an integrated zinc model to focus on mining, leveraging structural deficits and Aripuanã's value unlock.
• The smelting segment faces headwinds from plummeting treatment charges and rising costs, but mining delivers record 54% EBITDA margins amid strong zinc prices.
• Silver stream contract shift at Cerro Lindo adds ~$100 million annual high-margin revenue, boosting near-term cash flow and balance sheet strength.
• Robust debt management, special dividends, and disciplined leverage targets position NEXA for upside if zinc and silver prices hold; downside risk remains buffered.

Nexa Resources S.A. (NEXA) is one of the world’s five largest integrated zinc producers and a significant player in the production of other metals, especially silver. Their unique value proposition has been in their integrated

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