Luxembourg, Luxembourg--(Newsfile Corp. - October 29, 2026) - Nexa Resources S.A. (NYSE: NEXA), one of the world's largest zinc producers, reported Adjusted EBITDA of US$301 million for the third quarter of 2026, up 62% year-over-year and 5% quarter-over-quarter. Net revenues totaled US$937 million, up 23% year-over-year and 3% quarter-over-quarter, while net leverage improved to 1.24x from 1.40x in 2Q26.

The year-over-year improvement in Adjusted EBITDA was primarily driven by higher zinc prices and a stronger by-products contribution, while sequential results also benefited from the recovery of smelting sales volumes at Cajamarquilla, along with higher zinc and copper prices. Adjusted EBITDA margin expanded to 32.1%, up 7.7 percentage points year-over-year and 0.6 percentage points quarter-over-quarter.

Free Cash Flow reached US$73 million during the quarter. Net loss amounted to US$47 million, primarily reflecting a US$124 million non-cash impairment related to the Company's Brazilian smelting assets, along with the US$51 million silver-streaming remeasurement adjustment, none of which involved an outflow of cash.

Aripuanã made good progress during the quarter, with average plant utilization increasing to 84% from 71% in 2Q26 and reaching 90% in September. The fourth tailings filter lifted average plant utilization during the quarter and supported higher zinc production.

Nexa revised its 2026 CapEx guidance upward by 10% to US$420 million, mainly to accelerate mine development at Aripuanã to support higher throughput in 2027, to bring forward investments in the Cerro Pasco Integration Project, and to reflect the appreciation of the Brazilian real. The Company also updated its cost guidance, lowering the mining cash cost range due to stronger by-product credits and raising the smelting cash cost range to reflect higher zinc prices and the stronger Brazilian real. The Company's mining production and smelting sales guidance remains unchanged.

Commenting on the results, Ignacio Rosado, CEO of Nexa, said: "While the zinc concentrate market remained tight, Nexa's integrated business model allowed us to capture value across the value chain. Higher zinc prices supported mining results, while stronger contributions from by-products sustained our smelting margins."

In August, Votorantim signed a definitive agreement to sell its controlling stake in Nexa to Boliden. Closing is expected in the first quarter of 2027, subject to customary regulatory approvals. Until closing, Nexa will continue to operate as a separate company, with no changes to its strategy, capital allocation priorities or commitments to stakeholders.

"Safety remains a priority for us: our injury frequency rate improved in the quarter and there were no fatalities. We are preparing our operations for the 2026-2027 El Niño event, which official forecasts indicate could reach strong to very strong intensity. There was no operational impact in the quarter. As part of our preparedness efforts, we built strategic zinc concentrate inventories to support smelter continuity under different scenarios. As we monitor political and macroeconomic developments in our key markets, including trade policy, our priorities remain clear: operating safely, maximizing free cash flow, reducing gross debt, and creating long-term value for our shareholders and the communities where we operate," stated Mr. Rosado.

Operational Highlights

• Mining: zinc production reached 85kt, up 1% year-over-year and 7% quarter-over-quarter, supported by higher treated ore volumes and zinc grades. Lead production increased 4% year-over-year and 18% quarter-over-quarter to 18kt, also supported by higher grades. Copper production declined 30% year-over-year and 4% quarter-over-quarter to 6.0kt, mainly reflecting lower head grades at Cerro Lindo and Aripuanã. Silver production totaled 2.9 million ounces, broadly stable year-over-year and up 8% quarter-over-quarter, supported by higher throughput and grades, particularly at Aripuanã.

• Smelting: zinc metal and oxide production totaled 159kt, up 8% year-over-year and 28% quarter-over-quarter, while sales reached 146kt, down 2% year-over-year and up 9% quarter-over-quarter. The sequential increase in production was mainly driven by the operational recovery at Cajamarquilla, with the unit operating at full capacity and processing most of the cathode inventory accumulated after the May fire incident, partially offset by lower output at Juiz de Fora following an unplanned roaster stoppage in September, during which scheduled maintenance was brought forward. Year-over-year performance primarily reflects the processing at Cajamarquilla of cathode inventory accumulated during the temporary suspension of operations in 2Q26.

• By-products: sulfuric acid sales totaled 178kt, up 18% quarter-over-quarter, primarily reflecting higher sales at Cajamarquilla, and remained broadly stable year-over-year. Silver content sales rose 23% year-over-year and 14% quarter-over-quarter to 532koz, mainly driven by higher production and improved silver recovery rates at Cajamarquilla. Copper cement sales increased 60% year-over-year and 14% quarter-over-quarter to 3.2kt, also reflecting higher production and improved copper recovery rates.

Capital Allocation and Balance Sheet

• CapEx totaled US$111 million in 3Q26, up 25% quarter-over-quarter and 24% year-over-year, primarily reflecting higher investments in Tailings Storage Facilities and increased mine development expenditures. Investments included US$15 million allocated to Phase I of the Cerro Pasco Integration Project, bringing cumulative investments in the project to US$31 million in the first nine months of 2026.

• We generated US$185 million in net cash from operating activities and US$73 million in free cash flow. Cash, cash equivalents and financial investments totaled US$415 million at quarter-end, and total available liquidity, including the undrawn US$320 million revolving credit facility, reached US$735 million.

• Net leverage, measured as net debt to last twelve months ("LTM") Adjusted EBITDA, improved to 1.24x, compared to 1.40x in 2Q26 and 2.21x in 3Q25, primarily driven by stronger LTM Adjusted EBITDA of US$1,169 million and lower net debt.

Cerro Pasco Integration Project

• Phase I of the Cerro Pasco Integration Project continued to advance during the quarter. All civil works, major equipment assembly, the access road and the Atacocha Dam raise to elevation level 4131 were completed, while electromechanical assembly and commissioning activities progressed as planned.

• Mechanical completion remains expected by December 2026, followed by commissioning activities through 1Q27. Following operating authorization from Peru's General Directorate of Mining - Ministry of Energy and Mines (DGM-MINEM), currently expected in 2Q27, tailings pumping is expected to start in early 3Q27.

• The second Environmental Impact Study Modification (MEIA) for El Porvenir and the third MEIA for Atacocha remain under evaluation by Peru's National Environmental Certification Service for Sustainable Investments (SENACE). Approvals are currently expected in March and April 2027, respectively.

• The life-of-mine of the El Porvenir Dam at elevation level 4070 was extended through September 2027, providing approximately two months of operational contingency ahead of the planned start of tailings pumping operations.

ESG and Corporate Highlights

In 3Q26, Nexa continued to advance key initiatives across safety, sustainability, innovation, community engagement and corporate governance. The Company strengthened operational preparedness for the 2026-2027 El Niño event, advanced resource-efficiency and circular economy initiatives, and expanded programs focused on health, education and community engagement. Nexa also continued to reinforce its governance practices and industry participation while supporting the safe and sustainable operation of its assets.

Safety & Operational Excellence

• Safety performance improved during the quarter, with the total recordable injury frequency rate ("TRIFR") declining to 1.34 from 1.50 in 3Q25, despite approximately 19% more hours worked.
• At the Cerro Pasco Complex, Nexa advanced initiatives focused on critical risk management, including the installation of fatigue and drowsiness monitoring cabins and the launch of the "Line of Fire" campaign at El Porvenir and Atacocha.
• At Três Marias, the action plan established following the fire event was completed, with all planned actions executed and monitored by senior management.

Climate Resilience & El Niño Preparedness

• Nexa continued to strengthen preparedness for the 2026-2027 El Niño and Coastal El Niño events. Official forecasts indicate the potential for strong to very strong conditions. No operational impacts were recorded during the quarter.
• The Company engaged a specialized climate-risk consultancy to assess potential impacts across its operations in Brazil and Peru, covering droughts, wildfires, flooding, landslides and heat waves. Preparedness and response measures were reviewed across operating units and corporate functions.
• In Peru, preparedness efforts included increasing inventories of critical materials, building strategic zinc concentrate inventories to support smelter continuity, expanding storage capacity and transportation alternatives, and enhancing geotechnical inspections and monitoring of areas exposed to flooding and landslides.
• Nexa does not expect energy costs to be materially affected by the event. In Peru, 100% of the Company's energy requirements, including for 2027, are contracted, while uncovered energy positions in Brazil represent less than 10% of expected 2027 consumption.

Innovation & Circular Economy

• At Cerro Lindo, the backfill optimization project commissioned in March 2026 reduced cement consumption by approximately 20% versus budgeted levels in the first nine months of the year.
• At Aripuanã, the fourth tailings filter continued to support higher processing rates, with plant utilization reaching 90% in September, and expanded the operation's dry-stack tailings capacity, enabling greater water recovery and reuse.
• At Juiz de Fora, Nexa continued to advance circular economy initiatives through the development of Geojar, a jarosite-based additive designed to replace lime or cement in the stabilization of tailings for dry stacking.
• At Juiz de Fora, Nexa supplied approximately 3,000 tonnes of Waelz Aggregate for road paving projects in partnership with local municipalities, replacing virgin crushed stone and avoiding an estimated 44 tCO₂e.
• At Cerro Lindo, the Company completed pyrite concentration tests and advanced studies to support future commercialization opportunities.

Communities, Inclusion & Social Development

• In 3Q26, Nexa conducted two community health campaigns in Peru, serving 466 patients through five days of free medical care across 11 specialties. In 9M26, the Company conducted eight campaigns near its Cajamarquilla, Cerro Lindo and Cerro Pasco operations, serving 1,446 patients across 12 specialties.
• Over the same period, Nexa's scholarship program in Peru supported 1,168 higher education students, with financial assistance tailored to community needs, including student housing, academic materials and transportation.
• Since its launch in June 2026, Nexa's Community Contact Channel for its operations in Brazil has received 236 contacts, including requests, complaints, grievances and inquiries, with an average response time of two business days. The Company continues to promote the channel to strengthen community engagement and grievance management.

Governance & Industry Leadership

• In September 2026, Nexa participated in Exposibram 2026 in Brazil, where the Company presented its inclusive safety helmet prototype, and in EXPOMINA Perú 2026, where it led the Logistimin Forum on supply chain resilience.
• In October 2026, Nexa announced that Carlos Alberto Hilário de Andrade, Vice President of Human Resources and Corporate Affairs, will retire after serving in the role since April 2025. Livia Desenso Monteiro was appointed as his successor and will assume the position of Human Resources and Corporate Affairs Officer effective November 1, 2026.

Financial & Corporate Highlights

• On August 27, 2026, Nexa announced that Votorantim S.A. had entered into a definitive agreement to sell its 64.68% controlling stake in the Company to Boliden. Following closing, Boliden is expected to launch a voluntary cash tender offer for all remaining Nexa shares, at a price determined by reference to the same exchange ratio, as well as mandatory tender offers for the remaining shares of certain Nexa subsidiaries in Peru. Nexa is expected to remain a separate company incorporated under the laws of Luxembourg, with its existing management team remaining in place. Closing is expected in the first quarter of 2027, subject to customary closing conditions, including corporate and regulatory approvals.
• On August 31, 2026, Fitch Ratings placed Nexa's 'BBB-' Long-Term Foreign and Local Currency Issuer Default Ratings and senior unsecured notes on Rating Watch Negative following the announcement of the transaction, citing limited visibility on the ties between Nexa and its prospective controlling shareholder, while affirming the National Scale Long-Term Ratings of Nexa and Nexa Recursos Minerais S.A. at 'AAA(bra)' with a Stable Outlook.
• On October 27, 2026, S&P Global Ratings lowered its long-term ratings on Nexa and its senior unsecured notes to 'BB+' from 'BBB-', with a 'Stable' outlook, and affirmed its 'A-3' short-term issuer credit rating. According to S&P, the downgrade reflects its view that, while Nexa will be a strategically important subsidiary of its prospective parent, Boliden, Nexa's relationship with Boliden is one category weaker than with its current parent, Votorantim. As a result of this downgrade, Nexa will be required to make a change of control tender offer for the 2028 Notes at a price of 101% of their principal amount, pursuant to the indenture governing the 2028 Notes, within 30 days after closing of the transaction with Boliden. A change of control tender offer would only be triggered under the indentures governing the 2034 and 2037 Notes if Fitch were also to downgrade such notes, resulting in a Rating Decline as defined in the indentures. The Company continues to evaluate alternatives for its outstanding debt, including the 2028 Notes, as part of its ongoing liability management and gross debt reduction strategies for 2026.
• Moody's rating remains unchanged.

About Nexa

Nexa Resources is one of the world's leading zinc mining companies, with over 65 years of experience across mining and smelting operations. Nexa operates in Brazil and Peru, and maintains offices in Luxembourg and the United States, supplying products to customers on every continent. Driven by strong commitment to sustainability, innovation and operational excellence, Nexa's employees work every day to build the mining that changes with the world. This commitment is grounded in the highest standards of safety, respect for people, and environmental stewardship. Since 2017, Nexa Resources has been listed on the New York Stock Exchange, with Votorantim S.A. as its controlling shareholder. For more information about Nexa, as well as its ESG strategy and commitments, please visit our website.

For a full version of the 3Q26 Earnings Release document, please visit our Investor Relations website at: https://ir.nexaresources.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321650

Source: Nexa Resources