Nexa Resources Provides Update on Morro Agudo Complex

LUXEMBOURG / ACCESSWIRE / March 19, 2024 / Nexa Resources S.A. ("Nexa Resources", "Nexa" or the "Company") (NYSE:NEXA) announces today the suspension of its mining operations at the Morro Agudo Complex in the state of Minas Gerais in Brazil effective May 1, 2024, until further notice.

Commencing from the date hereof until April 30, 2024, mining activities will be reduced while limestone production activities will continue at full capacity. Nexa is committed to carrying out a structured process, aiming to minimize impacts on the business and, particularly, on its employees and host communities.

In 2023, the Morro Agudo mine produced 23kt of zinc and 8.3kt of lead at a sustaining cash cost net of by-products of US$0.87/lb. The mine does not currently have any estimated Mineral Reserves.

The Ambrósia mine reached the end of its life of mine during the fourth quarter of 2020 and operations have since been suspended.

This decision is part of Nexa's portfolio optimization process to improve free cash flow in line with the Company's disciplined capital allocation framework, along with its long-term strategy to maximize value for the Company and its shareholders.

As previously disclosed, we continue to actively assess risk-return alternatives for our Morro Agudo Complex in Brazil.

The Morro Agudo Complex produces approximately 1,650t of zinc and 390t of lead per month, accounting for 5% and 6% of Nexa's zinc and lead production, respectively.

The 2024 consolidated guidance remains unchanged as of the date of this press release.

About Nexa

Nexa is a large-scale, low-cost integrated zinc producer with over 65 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life mines, three of which are located in the central Andes region of Peru, and two of which are located in the state of Minas Gerais in Brazil. Nexa is ramping up Aripuanã, its sixth mine, in the state of Mato Grosso in Brazil. Nexa also currently owns and operates three smelters, two of which are located in the state of Minas Gerais in Brazil, and one of which is located in Cajamarquilla in Peru, which is the largest smelter in the Americas.