Nexa Resources S.A. Files 20-F for Fiscal Year 2023

Ticker: NEXA · Form: 20-F · Filed: Mar 27, 2024 · CIK: 1713930

Sentiment: neutral

Topics: Nexa Resources, 20-F, Annual Report, Metal Mining, SEC Filing

TL;DR

<b>Nexa Resources S.A. has submitted its 20-F annual report for the fiscal year 2023, detailing its financial performance and operations.</b>

AI Summary

Nexa Resources S.A. (NEXA) filed a Foreign Annual Report (20-F) with the SEC on March 27, 2024. Nexa Resources S.A. filed its annual 20-F report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is Metal Mining. Nexa Resources S.A. is incorporated in N4. The filing was submitted on March 27, 2024.

Why It Matters

For investors and stakeholders tracking Nexa Resources S.A., this filing contains several important signals. This filing provides a comprehensive overview of Nexa Resources' financial health and operational status for the 2023 fiscal year, crucial for investors to assess performance and future prospects. As a 20-F filing, it adheres to SEC regulations for foreign private issuers, offering standardized financial and operational data for comparison with industry peers.

Risk Assessment

Risk Level: medium — Nexa Resources S.A. shows moderate risk based on this filing. The company operates in the metal mining industry, which is subject to significant price volatility and regulatory changes, as indicated by its SIC code and the nature of a 20-F filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 20-F to understand Nexa Resources' performance and potential risks in the metal mining sector.

Key Numbers

Key Players & Entities

FAQ

When did Nexa Resources S.A. file this 20-F?

Nexa Resources S.A. filed this Foreign Annual Report (20-F) with the SEC on March 27, 2024.

What is a 20-F filing?

A 20-F is a annual report for foreign private issuers, equivalent to a 10-K but following international reporting standards. This particular 20-F was filed by Nexa Resources S.A. (NEXA).

Where can I read the original 20-F filing from Nexa Resources S.A.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Nexa Resources S.A..

What are the key takeaways from Nexa Resources S.A.'s 20-F?

Nexa Resources S.A. filed this 20-F on March 27, 2024. Key takeaways: Nexa Resources S.A. filed its annual 20-F report for the fiscal year ended December 31, 2023.. The filing covers the period from January 1, 2023, to December 31, 2023.. The company's principal business is Metal Mining..

Is Nexa Resources S.A. a risky investment based on this filing?

Based on this 20-F, Nexa Resources S.A. presents a moderate-risk profile. The company operates in the metal mining industry, which is subject to significant price volatility and regulatory changes, as indicated by its SIC code and the nature of a 20-F filing.

What should investors do after reading Nexa Resources S.A.'s 20-F?

Investors should review the detailed financial statements and risk factors within the 20-F to understand Nexa Resources' performance and potential risks in the metal mining sector. The overall sentiment from this filing is neutral.

Key Dates

Glossary

20-F
An annual report required by the U.S. Securities and Exchange Commission (SEC) for foreign private issuers. (Provides detailed financial and operational information about the company for the fiscal year.)
Metal Mining
The industry sector focused on the extraction and processing of metallic ores. (Indicates the primary business activity of Nexa Resources S.A.)

Filing Stats: 4,367 words · 17 min read · ~15 pages · Grade level 17.8 · Accepted 2024-03-27 17:23:56

Key Financial Figures

Filing Documents

Forward-looking statements

Forward-looking statements 1 About the Company 3 Presentation of financial and other information 4

Risk factors

Risk factors 6 I. Information on the Company 29 Business overview 29 Mining operations 35 Smelting operations 78 Other operations 82 Mineral Reserves and Resources 87 Capital expenditures 102 Environmental, social and governance ("ESG") 103 Regulatory matters 112 II. Operating and financial review and prospects 119 Overview 119 Results of operations 130 Liquidity and capital resources 142 Critical accounting estimates 148 Risk management 151 III. Share ownership and trading 156 Major shareholders 156 Related party transactions 157 Distributions 159 Trading markets 161 Purchases of equity securities by the issuer and affiliated purchasers 162 IV. Corporate governance, management and employees 163 Corporate governance 163 Board of directors 168 Executive officers and Management committee 178 Executive and director compensation 182 Employees 187 V. Additional information 188

Legal proceedings

Legal proceedings 188 Articles of association 190 Taxation 194 Exchange controls and other limitations affecting security holders 203 Evaluation of disclosure controls and procedures 204 Internal control over financial reporting 205 Principal accountant fees and services 206 Information filed with securities regulators 207 Glossary 208 Exhibits 211

Signatures

Signatures 212 Nexa Resources S.A. Financial Statements 213 iii Form 20-F Cross Reference Guide Form 20-F cross reference guide Item Form 20-F caption Location in this report Page 1 Identity of directors, senior management and advisers Not applicable – 2 Offer statistics and expected timetable Not applicable – 3 Key information 3A Reserved Not applicable – 3B Capitalization and indebtedness Not applicable – 3C Reasons for the offer and use of proceeds Not applicable – 3D Risk factors

Risk factors

Risk factors 6 4 Information on the Company 4A History and development of the Company About the Company, Business overview, Capital expenditures 3, 29, 102 4B Business overview Business overview, Mining operations, Smelting operations, Other operations, Mineral Reserves and Resources, Regulatory matters 29, 35, 78, 82, 87, 112 4C Organizational structure Business overview, List of Subsidiaries 29, Exhibit 8 4D Property, plants and equipment Mining operations, Smelting operations, Other operations, Capital expenditures, Regulatory matters 35, 78, 82, 102, 112 4A Unresolved staff comments None – 5 Operating and financial review and prospects 5A Operating results Results of operations 130 5B Liquidity and capital resources Liquidity and capital resources 142 5C Research and development, patents and licenses, etc. Business overview 29 5D Trend information Results of operations 130 5E Critical Accounting Estimates Critical Accounting Estimates 148 6 Directors, senior management and employees 6A Directors and senior management Board of directors, Executive officers and Management committee 168, 178 6B Compensation Executive and director compensation 182 6C Board practices Corporate governance, Board of directors 163, 168 6D Employees Employees 187 6E Share ownership Board of directors—Share ownership 177 6F Disclosure of a registrant's action to recover erroneously awarded compensation Not applicable – 7 Major shareholders and related party transactions 7A Major shareholders Major shareholders 156 7B Related party transactions Related party transactions 157 7C Interests of experts and counsel Not applicable – 8 Financial information 8A Consolidated statements and other financial information Nexa Resources S.A. Financial Statements, Distributions, Legal proceedings 213, 159, 188 8B Significant changes Not applicable – 9 The offer and listing 9A. Offer and listing detai

Quantitative and qualitative disclosures about market risk

Quantitative and qualitative disclosures about market risk Risk management 151 12

Description of securities other than equity securities

Description of securities other than equity securities Not applicable – 13 Defaults, dividend arrearages and delinquencies Not applicable – 14 Material modifications to the rights of security holders and use of proceeds Not applicable – 15

Controls and procedures

Controls and procedures Evaluation of disclosure controls and procedures, Internal control over financial reporting 204, 205 16A Audit committee financial expert Board of directors—Committees of our Board of directors—Audit committee 173 16B Code of ethics Corporate governance—Code of conduct 163 16C Principal accountant fees and services Principal accountant fees and services 206 16D Exemptions from the listing standards for audit committees Not applicable – 16E Purchases of equity securities by the issuer and affiliated purchasers Purchases of equity securities by the issuer and affiliated purchasers 162 16F Change in registrant's certifying accountant Not applicable – 16G Corporate governance Corporate governance 163 16H Mine safety disclosure Not applicable – 16K Cybersecurity Risk management 151 16J Insider trading policies Executive and Director Compensation 182 17

Financial statements

Financial statements Not applicable – 18

Financial statements

Financial statements Nexa Resources S.A. Financial Statements 213 19 Exhibits Exhibits 211 v

Forward-Looking Statements

Forward-Looking Statements Forward-looking This annual report includes as amended, or Securities Act, and Section 21E of the Securities Exchange Act, as amended, or Exchange Act. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements refer only to the date when they were made, and we do not undertake any obligation to update or revise any estimate or forward-looking involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. These statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations, and those of our officers and employees, with respect to, among other things: (i) our future financial or operating performance; (ii) our growth strategy; (iii) future trends that may affect our business and results of operations; (iv) the impact of competition and applicable laws and regulations on our results; (v) planned capital investments; (vi) future of zinc or other metal prices; (vii) estimation of mineral reserves; (viii) mine life; and (ix) our financial liquidity.

Forward-looking statements

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for several reasons, many of which are not under our control, among them the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking the cyclical and volatile prices of commodities; the changes in the expected level of supply and demand for commodities; foreign exchange rates and inflation; the risks and uncertainties relating to economic and political conditions in the countries in which we operate; changes in global market conditions; the impact of expanded regional or global conflict, including the conflicts between Russian and Ukraine and the Israel-Hamas conflict, and the resulting potential impacts on supply and demand for commodities, global security concerns, and market volatility; outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally, such as the coronavirus ("COVID-19") pandemic, and the potential impact thereof on commodity prices and exchange rate variations in the currencies to which we are exposed to, our business and operating sites, and the global economy; increasing demand and evolving expectations from stakeholders with respect to our environmental, social and governance ("ESG") practices, performance and disclosures, including the ability to meet energy requirements while complying with greenhouse gas emissions regulations and other

Forward-Looking Statements

Forward-Looking Statements severe natural disasters, such as storms and earthquakes, disrupting our operations; operational risks, such as operator errors, mechanical failures and other accidents; the availability of materials, supplies, insurance coverage, equipment, required permits or approvals and financing; supply-chain and logistic related interruptions, including impacts to international freight and transportation networks; the implementation of our growth strategy, the availability of capital and the risks associated with related capital expenditures; failure to obtain financial assurance to meet closure and remediation obligations; the possible material differences between our estimates of Mineral Reserves and Mineral Resources and the mineral quantities we actually recover; the possibility that our concessions may be terminated or not renewed by governmental authorities in the countries in which we operate; the impact of political and government changes in the countries in which we operate, and the effects of potential new legislation, including changes in taxation laws and any related agreements that Nexa has entered or may enter into with local governments; legal and regulatory risks, including ongoing or future investigations by local authorities with respect to our business and operations, as well as the conduct of our customers, along with the impact to our financial statements regarding the resolution of any such matters; labor disputes or disagreements with local communities or unions in the countries in which we operate; loss of reputation due to unanticipated operational failures or significant occupational incidents; failure or outage of our digital infrastructure or information and operating technology systems; cyber events or attacks (including ransomware, state-sponsored and other cyberattacks) due to negligence or IT security failures; the future impact of competition and changes in domestic and international gov

Forward-Looking Statements

Forward-Looking Statements Nexa Peru – a Peruvian company that is 83.48% directly and indirectly owned by Nexa Resources and is mainly engaged in exploring, extracting, producing and trading zinc, copper and lead concentrates, extracted from its own three mining sites. Nexa Peru's functional currency is the U.S. dollar. Nexa Peru is a public company with its shares listed on the Lima Stock Exchange. Nexa Brazil – a Brazilian company that is 100% owned by Nexa Resources and is mainly engaged in exploring, extracting and producing zinc, copper and lead concentrates, and smelting zinc contained in concentrate with operations in the states of Minas Gerais and Mato Grosso. Nexa Brazil's functional currency is the real . Non-IFRS Accounting Standards measures For a discussion of how our management uses non-IFRS Accounting Standards measures as an additional measure of operational performance of the Company's business, including discussion of our Adjusted EBITDA, reconciliation with most comparable IFRS Accounting Standards figures and changes made in 2023, see "Operating and financial review and prospects—Results of Operations—Non-IFRS Accounting Standards measures and reconciliation." All forward-looking non-IFRS Accounting Standards financial measures in this document, including cash cost guidance, are provided only on a non-IFRS Accounting Standards basis. This is due to the inherent difficulty of forecasting the timing or number of items that would be included in the most directly comparable forward-looking IFRS Accounting Standards financial measures. As a result, reconciliation of the forward-looking non-IFRS Accounting Standards financial measures to IFRS Accounting Standards financial measures is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information. Country, market and industry information This report contains and refers to information and statistics regarding the countries in whic

Risk factors

Risk factors Nexa and its operations are exposed to several inherent risks and uncertainties, including those described below. The risks described below are not the only ones that we face. Additional risks that we do not presently consider material, or of which we are not currently aware, may also affect us. Our business, results of operations, financial condition and cash flows could be materially and adversely affected if any of these risks materialize. You should carefully consider these risks with respect to an investment in Nexa. This section is divided in two sub-sections: the "Risk Factors Summary", which provides a brief summary of our Risk Factors and "Detailed Risk Factors," providing detailed information in relation to each Risk Factor identified. Risk Factors Summary The following summarizes the main risks to which we are subject. You should carefully consider all of the information discussed below in "Item 3—Key Information—Risk Factors—Detailed Risk Factors" in this annual report for a comprehensive description of these and other risks. Business risks Our business is highly dependent on the international market prices of the metals we produce, which are both cyclical and volatile. Changes in the demand for the metals we produce, including as a result of the cyclicality of global economic activity, could adversely affect our sales volume and revenues. Adverse economic developments in China could have a negative impact on our revenues, cash flow and profitability. The mining industry is highly competitive. Operational risks The mining business is subject to inherent risks, some of which are not insurable. We may be materially adversely affected by challenges relating to slope and stability of underground openings. Our projects are subject to operational risks that may result in increased costs or delays that prevent their successful implementation. We may be adversely affected by the failure or unavailability of adequate infrastruct

Risk Factors

Risk Factors We may engage in hedging activity that may not be successful and may result in losses to us. Our business requires substantial capital expenditures and is subject to financing risks. We are exposed to credit risk in relation to our contractual and trading counterparties as well as to hedging and derivative counterparty risk, and our results of operations may be negatively impacted by increases in expected credit losses. Any acquisitions or divestitures we make may not be successful or achieve the expected benefits. Changes in the

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