Nexa Resources S A : - 1Q20 Presentation

May 12, 2020

From the world of mining to the world of people

Disclaimer

Important information concerning this presentation

This presentation, prepared by Nexa Resources S.A. (formerly VM Holding S.A., herein referred to as the "Company" or "Nexa"), is solely for informational purposes. Disclosure of this presentation, its contents, extracts or abstracts to third parties is not authorized without express and prior written consent from the Company.

Certain statements disclosed herein are "forward-looking statements" in which statements contained herein that the information is not clearly historical in nature are forward- looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "strategy," "project" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may," or similar expressions are generally intended to identify forward-looking such statements. These forward-looking statements speak only as of the date hereof and are based on the Company's current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond the Company's control. As a consequence, current plans, anticipated actions, and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in the presentation. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein and we do not intend to update any of these forward-looking statements.

This presentation includes the Company's unaudited non-IFRS measures, including: adjusted EBITDA; net debt; working capital. The Company presents non-IFRS measures when we due to the belief that the additional information is useful and meaningful to investors. Non-IFRS measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-IFRS measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board.

The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the Company or any parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation.

This presentation also contains information concerning the Company's industry that are based on industry publications, surveys and forecasts. The information contained herein involves and assumes a number of assumptions and limitations, and the Company did not independently verified the accuracy or completeness of such information.

All dollar amounts referenced in this presentation, unless otherwise indicated, are expressed in United States dollars. The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction. There is no obligation to update the information included in this presentation.

Certain information contained in this presentation with respect to the Company's Morro Agudo, Shalipayco, Magistral and Florida Canyon Zinc projects are preliminary economic assessments within the meaning of NI 43-101 (as defined herein). Such preliminary economic assessments are preliminary in nature, including certain information as of inferred mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that such preliminary economic assessments will be realized. The bases for such preliminary economic assessments (including certain qualifications and assumptions) are described in the Company's documents filed with the SEC and in each of the provinces and territories of Canada.

2

Nexa response do COVID-19

The health and safety of our people are our priority

• Corporate employees, all non-essential site personnel and risk group employees working remotely.
• Increased site cleaning and hygiene services.
• Folders and materials about COVID-19 were provided to all employees, contractors and their families.
• Health screening and fever monitoring programs developed for incoming site personnel.
• Business trips and events have been cancelled or postponed until further notice.
• Restriction of external visitors.

3

Nexa response do COVID-19

Social Commitment

• Partnership with local seamstresses for the production of protective masks.
• Strengthening the relationship with the local communities and local governments.
• Kits for medical assistance were acquired and distributed in locations where we have operations in Brazil.
• In Peru, given the State of Emergency, we have managed to provide some supplies, such as food and medicines.
• Votorantim Institute has provided financial support for some of our initiatives.
• We are keeping a regular communication with local authorities in order to get their support for the continuity of our operations.

4

Nexa response do COVID-19

Business continuity and capital allocation discipline

• In Peru, mining activities were limited to critical operations during the quarantine period (March 18 - May 10), while Cajamarquilla smelter operated at reduced rates.
• Mining and smelting operations in Brazil have operated normally.
• In response to COVID-19, we implemented additional measures to improve cash flow:

-27%

410

220	300
27		202
102
		21
43				50
				16
	18
			12
2020e January	2020e Updated
estimates

Aripuanã Others (1)

Sustaining

HSE (2)

Others (3)

• Capex reduction to US$300 million (down 27% from January guidance).
• Suspension of greenfield project development expenses. Exploration investments reduced to US$26 million.
• Estimated corporate costs savings of US$20 million.

								-28%
94
37				68
20				26
22				14
			17
					8
										5
		8
								5
	2020e January	2020e Updated
	estimates
Exploration			Project Development				Communities
Sustaining and mineral rights			Technology

(1) Including US$13 million related to Vazante mine deepening brownfield project. (2) Investments in tailings dams are included in HSE expenses. (3) Modernization, IT and others.

5

Nexa response do COVID-19

Liquidity

Proactive management to preserve and strengthen our balance sheet

	1,057										1,019
Revolving	300
Credit									300
Facility		(50)						675	44
			(216)
				(85)			350
	757			(68)
				(13)
	Liquidity	Dividends	Tender Offer	Capex	Working	Other	March	Cash	April	Revolving	Current
	Dec 31,	Payment			Capital	Expenses	Debts	Mar 31,	Debt	Credit	Liquidity
	2019							2020		Facility	(proforma)

 Liability management	 Approximately US$400	 Disbursement of the
strategy improving Senior	million in additional debt in	revolving credit facility of
notes maturity profile and	March and April	US$300 million
cost of debt

6

PRODUCTION

Mining segment | guidance

Updated annual production for 2020, reflecting COVID-19 outbreak

Zinc equivalent (Mid-range)		Zinc
000 ton		000 ton

	-17%		-11%	Upper Range
		Lower Range
567				375	335
	(82)	(11)
			472	338	300
2020e January guidance	Peruvian Quarantine	Ramp up and additional	2020e Updated	2020e January	2020e Updated
		restrictions (estimated)		guidance

Comments

• Guidance disclosure updates:
• • 2020 zinc production guidance has been revised to 300- 335kton, down 11%.
  • 2020 zinc equivalent metal production has been revised to 446-498kt.
  • Production guidance for 2021 and 2022 remains suspended.

Cash cost

US$/t

2020 cash cost guidance (US$/lb)	Updated	January
guidance
Mining cash cost (1)(2)	0.59	0.52
Cerro Lindo	0.33	0.16
El Porvenir	0.83	0.70
Atacocha	0.59	0.63
Vazante	0.60	0.61
Morro Agudo	1.00	1.05

(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine. (2) Cash cost per ton sold does not include the impact of the cost of idleness in the Peruvian mines.

7

Smelting segment | guidance

Reduced 2020 sales guidance remains subject to other developments related to COVID-19 outbreak

Comments		Metal sales (Mid-range)(Zinc metal + Oxide)
• Revised guidance:		000 ton

• Sales estimates reduced by 10% to 540-580kton in 2020
• 2Q20 demand expected to be adversely affected by the measures adopted worldwide to combat COVID-19.
• Gradual improvement expected during 2H20, subject to the recovery in trading conditions and future requirements to control COVID-19.

	-10%
625	(8)
	(57)
			560
2020e January	Volume Reduction	Expected Drop	2020e Updated
guidance	1Q20 Quarantine	in Demand

• Assumptions include:
• • Juiz de Fora operating at 40% of its nominal production capacity in May and June, with reduced workforce while Três Marias remains operating at normal levels.
  • Cajamarquilla gradually improving its operating rate, reaching full capacity by the end of May.
  • During 2H20 we will revaluate Juiz de Fora operating capacity levels.

Cash cost

US$/t

2020 cash cost guidance (US$/lb)	Updated	January
guidance
Smelting cash cost (1)(2)	0.74	0.90
Cajamarquilla	0.77	0.91
Três Marias	0.65	0.82
Juiz de Fora	0.87	1.06

(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per smelter. (2) Cash cost per ton sold does not include the impact of the cost of idleness in Cajamarquilla smelter .

8

1Q20 review

9

1Q20 Consolidated results

Mine production

Smelter sales

Net Revenue

000 ton

Zinc

000 ton	Metallic zinc

(US$ million)

Copper

-14%

90

83

		77
9	10	7
1Q19	4Q19	1Q20

• Zinc and copper in concentrate production decreased 14% and 22% Y-o-Y, impacted primarily by our
  Peruvian mines.
• Treated ore volume was down 15% with the suspension of Peruvian operations in mid-March, despite de slight increase in zinc grade.

									Zinc oxide
				-4%
				161
152	146
143	151		138
	9			10				8
1Q19	4Q19	1Q20

• Smelting sales were relatively flat, despite the slowdown in Cajamarquilla operations, due to an 8% increase in sales from our Brazilian smelters.
• Higher exports sales to Africa, Mercosur, and U.S.

-22%

570 586

442

1Q19 4Q19 1Q20

• Lower average LME prices had a negative impact on net revenues, down 22% year-over-year.
• Sales volume remained flat Y-o-Y

10

Adj EBITDA | 1Q20 versus 1Q19

US$ million

-59%

108

0

14
(44)			6	5	44
(33)
	(12)

1Q19	Volume	Price	FX	By-products Other variable	Min. Exp./	Other (1)	1Q20
		Effect		and fixed	Proj. Dev.
				costs + G&A

• EBITDA decrease mainly driven by:
• • a negative variation of US$44 million in price effect related to lower LME prices and changes in market prices in respect of quotation period adjustments;
  • the decrease in by-products revenue due to lower volume and LME prices.
• Positive impacts: lower operating costs and expenses and U.S. dollar appreciation against Brazilian real.

(1) Includes: Other income and expenses.

11

Mining segment

1Q20 results mainly impacted by market related factors

US$ million

	83
		(29)
			(64)
	1Q19 Adj	Volume	Price
	EBITDA

					3
	4
(9)	(4)							0		(17)
TCs	By-products Other variable and	Min. Exp./	Other (1)	1Q20 Adj
	fixed costs + G&A	Proj. Dev.			EBITDA

Market-related

Comments

• Market related factors had a negative variation impact of US$73 million.
• Lower volumes due to the measures required by the government had a negative impact of US$29 million.
• Lower operating costs: lower third-party services and personnel costs in Peru, and lower energy costs in Brazil.

1. Consolidated Mining C1 Normal Cash Cost Curve (US$/t)

4.000
2.000						56%
0
0%	10%	20%	30%	40%	50%	60%	70%	80%	90%	100%
-2.000
-4.000
-6.000
-8.000

Cumulative Production (%)

(1) Other income and expenses and FX. (2) Wood Mackenzie 2019 Zinc - Dataset 2020 Q1.

12

US$ million

Smelting segment

1Q20 results mainly impacted by market related factors

			138%
			13	5	61
		10
		14	(8)
26	1

1Q19 Adj EBITDA	Volume	Prices	TCs	By-products	Other variable and	Other (1)	1Q20 Adj EBITDA
					fixed costs + G&A

Market-related

Comments

• Market related factors had a positive impact of US$24 million.
• Lower operating costs (lower energy prices and improvement in Três Marias operating efficiency).
• Partially offset by lower by-productcredits.

1. Consolidated Smelter Normal Cash Cost Curve (US$/t)

2.500			28%
2.000
1.500
1.000
500
0
0%	10%	20%	30%	40%	50%	60%	70%	80%	90%	100%

Cumulative Production (%)

(1) Other income and expenses, FX and Min. Exp./ Proj. Dev. (2) Wood Mackenzie 2019 Zinc - Dataset 2020 Q1.

13

Cash Flow | 1Q20

US$ million

44
	(68)
		(16)
			(39)
				(11)	(90)
					(46)
							(39)
								(50)
									(14)	(7)
										(246)
Adjusted	Working	Taxes	Sustaining	Interest	FCF before	Other	Loans/	Dividends	Premium	Other	FCF4
EBITDA	Capital¹		CAPEX²	paid	expansion	Capex³	Investments		paid on	non-
					and others				bond	operational
									repurchase

FCF before expansion negatively impacted	Negative FCF reflecting mainly cash
by changes in working capital due to	dividend payments in 1Q20, CAPEX and
decrease in average supplier terms	net loan amortization

(1) Breakdown available at Financial Statement explanatory note "Changes in operating assets and liabilities". / (2) "Sustaining CAPEX" includes Sustaining, HS&E, Tailing Dams, (3) "Other CAPEX" includes Expansion/Greenfield,	14
Modernization, IT & Others (detailed breakdown available in the Earnings Release). / (4) Adjustments to reconcile Adjusted EBITDA to cash income (loss) before income tax.

Aripuanã and project pipeline

15

Aripuanã | Project

Competitive cash cost position with attractive returns

Project overview

• 13 years LOM¹ with excellent potential to extend mine life beyond 20 years2 based on current inferred resources and exploration drilling campaigns
• Zinc equivalent³ average production¹ 120kt/yr
• Sustainable project:
• • Tailings disposal: 50% dry stacks and 50% cement paste backfill
  • 100% process water recirculation, with minimal discharge to the environment

Highlights

• New rebaseline in progress. Production is now scheduled to start-up3Q21 due to the delays we faced (i.e. weather, logistics) and the impact of COVID-19
• In light of these factors, estimated CAPEX is anticipated to increase by 10-25% (to be confirmed) versus US$392 million (Aripuanã feasibility study)
• 39% of physical progress by quarter-end 1Q20 (according to new rebaseline)
• 1Q20 CAPEX totalled US$29 million
• US$202 million estimated capex 2020, including FX gain
• Mine Development ahead of schedule reaching 2,444 meters
• Receipt of all permits and start of the assembly of the towers of the energy transmission line
• Local housing project with 76 houses delivered and 85 units under construction

Aripuanã

Morro Agudo

VazanteTrês Marias

Juiz de Fora

1Based only on current mineral reserves; ²Based on significant currently inferred mineral resources and Nexa's good track record of conversion to indicated resources; 3Consolidated mining production in kton of zinc	16
equivalent calculated by converting copper, lead, silver and gold contents to a zinc equivalent grade based on consensus LT forecasts

Main projects portfolio

Development timeline

Peru

ESTIMATED TIMELINE

Magistral

PROJECTS

Hilarión

Lima

Pukaqaqa

2017

2018

2019

2020

2021

2022

2023

2024

2025

Aripuanã

+120kt¹

Polymetallic

Magistral

Stage: FEL3 | On going

Copper | Molybdenum

Pukaqaqa

Stage: Pre Feasibility | On Hold²

Copper | Molybdenum

Hilarión

Stage: Pre Feasibility | On Hold²

Polymetallic (Zn-Pb)

EXPLORATION AND

FEASIBILITY

CONSTRUCTION

PRE FEASIBILITY

Brazil

Aripuanã

Sao Paulo

Nexa Greenfield Projects

Project timeline is expected to extend following COVID-19 response and potential restrictions, and our capital allocation strategy

Note: Estimated timeline as of February 2020. Hilarión is still in Exploration Stage - feasibility studies pipeline to be confirmed; ¹Annual zinc equivalent production; ²Due to COVID-19, this	17
project is under evaluation as to the new date for further studies

Nexa | final remarks

Nexa Way program | solid foundations to improve efficiency and strengthen our culture

Business continuity measures

Support our host communities and local governments

Continue to deliver on guidance with expected recovery in 2H20

We maintain our strategy, remaining committed to building the

mining of the future supported by operational and financial discipline

with a highly qualified team

18

thank you

IR Contact:

[e-mail]

https://ir.nexaresources.com