Nexa Resources S A : Earnings Call Presentation - 4Q20 and 2020

Disclaimer

Important information concerning this presentation

This presentation, prepared by Nexa Resources 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; cash cost net of by-products. 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.

Nexa | A resilient performance in a challenging scenario

Effective response to COVID-19. Crisis committee remains in place.

Production guidance achievedSales exceeded annual guidance

Costs reduction and improved

operational performance | Nexa Way

program on track

Strong balance sheet

Disciplined capital allocation

Social and environmental commitment

2.29x

498kt	585kt
zinc equivalent	Metal
production	sales
(down 18% from 2019)	(down 6% from 2019)

Financial leverage

US$

403 million

Adjusted EBITDA

(up 15% from 2019)

US$ 336 million US$ 35 million

CAPEX(a)

(a) Tax credits of US$18 million

CASH DIVIDEND

Nexa | 2020 Social and Environmental Highlights

Woman in mining: expand and strengthen the participation of women.

Carbon Disclosure Project (CDP): since 2019 we participate on the Water category index and in 2020 we've also participated on the Climate category index.

Tailings Dams website: enhance transparency on our tailings dams management.

Actions with unions: ensuring stability and operational continuity during the pandemic.

Communities: inclusion and social development of our host communities.

Energy and Emissions: natural gas in Cajamarquilla.

EXPLORATION AND PRE FEASIBILITYFEASIBILITYCONSTRUCTION

Note: Estimated timeline as of January 2021. ¹Annual zinc equivalent production; ²In 2021, we expect to advance further detailed engineering and optimization opportunities to mitigate the risk of project execution, before consideration of project approval. 3Capital allocation strategy in response to COVID-19; 4 FEL3 resumed 1Q21, as expected.

Aripuanã | Project

Competitive cash cost position with attractive returns

Project overview

• • 11 years LOM¹ with excellent potential to extend mine life beyond 20 years2 based on current inferred resources and exploration drilling campaigns (i.e., the current Babaçu drilling activities indicate room for further resource expansion)

• • Zinc equivalent³ average production¹ 119kt/yr

• • Sustainable project:

  •  Tailings disposal: 50% dry stacks and 50% cement paste backfill

  •  100% process water recirculation, with minimal discharge to the environment

Highlights

• • Estimated start-up early 2022

• • Estimated project CAPEX of US$547 million (US$312 million invested since the project execution approval)

• • Status (December, 2020):

  • • 70.3% overall physical progress

  • • 99.8% of engineering completed

  • • 93% of procurement completed

  • • 80% of long lead equipment delivered to site

  • • 100% of construction packages awarded and renegotiated

  • • All permits have been obtained and all the environmental programs are in place.

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 equivalent calculated by converting copper, lead, silver and gold contents to a zinc equivalent grade based on consensus LT forecasts

Aripuanã | Project (cont'd)

Exploration activity update

Continuous drilling have increased the Mineral Resources and Mineral Reserves at Aripuanã and demonstrates the potential for further increases

 Exploratory drilling on the northwest extension of the Babaçu body in 4Q20 was executed, totaling 3,741 meters in 2020.



For 1Q21, we will continue the extension drilling in the Babaçu NW Exploration Target to prove continuity of mineralization to the northwest below the Ambrex deposit.

In addition to the Arex, Link and Ambrex extensions, Babaçu has the potential to expand the life of mine of Aripuanã or increase production capacity due to its robust mineralized zones in very close proximity to Ambrex

4Q20 and 2020 Consolidated results

Net Revenue1

(US$ million)

586

635

538

4Q19

3Q20

Adjusted EBITDA

1,951

• • Net revenue in 4Q20 increased by 8%, mainly driven by higher zinc and copper prices

• • In 2020, net revenue decrease by 16% due to lower average prices for zinc and metal prices ad and lower volumes (COVID-19 impacts)

4Q20

2019

2020

(US$ million)

403

4Q19

3Q20

(1) Includes intersegment revenues

• • Adj EBITDA in 4Q20 was positively affected by lower operating costs & expenses; higher Zn prices; and the BRL devaluation versus U.S. dollar

• • Adj EBITDA in 2020 increase driven by lower mining & smelting unit cash costs; lower expenses; and positive effect from BRL devaluation

4Q20

2019

2020

Mining segment

Zinc production

(000 ton)

83

4Q19

92

3Q20

82

4Q20

2019

Net Revenue

(US$ million)

234

2020

269

4Q19

3Q20

206

4Q20

2019

Adjusted EBITDA

(US$ million)

87

13

67

2020

4Q19

3Q20

4Q20

2019

2020

•  4Q20 zinc production was 11% higher driven by Cerro Lindo's higher zinc average grade and Vazante recovery from 4Q19 temporary capacity reduction

•  2020 zinc production decreased by 13% year-over-year mainly impacted by Peruvian mines shutdown

•  4Q20 net revenue was up 15% mainly driven by increased production, and higher prices

•  2020 net revenue down 25% due to the temporary suspension of our Peruvian operations, lower zinc and lead prices, and higher TCs

•  4Q20 Adj EBITDA significantly recovered from 4Q19 due to higher zinc prices and by-products credits, and lower operating costs and expenses

•  2020 Adj EBITDA was down from 2019, affected by lower volumes and average prices; which were partially offset by lower investments and costs

Mining segment

2020 results mainly impacted by lower volumes and market related factors

US$ million

Comments

Mining Cash Cost 2020 vs. 2019 (US$/lb)

•  Market related factors had a negative variation impact of US$49 million

•  Strong performance in Brazil partially offset lower volumes in Peru (COVID-19 mandatory measures)

•  Lower operating costs

•  Mineral exploration and project evaluation expenses were also down from 2019

(1) Includes: Other income and expenses

0.00

20192020

0.94

Mining Consolidated

Cerro Lindo El PorvenirAtacochaVazanteMorro Agudo

Mining segment | guidance

Production by metal is expected to increase in the 2021-2023 period

Zinc equivalent

Zinc

Copper

Lead

000 ton

2021e

691

678

PRODUCTION

2021e

Comments

000 ton

384

376

000 ton

2022e

2023e

2022e

2023e

Upper rangeLower range

• • 2021-2023 production guidance :

  •  At the midpoint of the range, zinc equivalent metal production forecasted to increase 7% on average mostly driven by the start-up of Aripuanã in 2022.

• • 2021 cash cost guidance is expected to decrease year-over-year:

  •  higher by-product credits; lower benchmark TCs; and increased production volumes

48

2021e

2022e

Cash cost

46 49

38 42

2023e

US$/lb

Mining cash cost(1)(2)

Cerro Lindo 0.00

El Porvenir 0.52

Atacocha 0.27

Vazante 0.47

Morro Agudo 0.79

(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per mine. (2) Cash cost numbers include COVID-19 incremental costs.

000 ton

2021e

2022e

2023e

0.33

Smelting segment

2020 results positively impacted mainly by higher TCs and lower corporate expensesMetal Sales (Zinc metal + Oxide)

(000 ton)

162

162

158

Net Revenue

(US$ million)

422

4Q19

460

3Q20

482

4Q20

2019

2020

4Q19

3Q20

4Q20

2019

Adjusted EBITDA

(US$ million)

86

83

3Q20

2020

4Q19

56

4Q20

2019

2020

•  4Q20 metal sales up 2% from 3Q20, mainly driven by demand recovery in our home markets

•  2020 metal sales were 6% lower due to the decrease in production in the Cajamarquilla and Juiz de Fora smelters (COVID-19 related measures), partially offset by Três Marias' solid performance

•  4Q20 net revenue was 5% higher, following higher average zinc prices

•  2020 net revenue was down 17% y-o-y mainly due to the pandemic-related slowdown in industrial activities and lower average zinc price

•  4Q20 EBITDA was up 47% y-o-y driven by higher TCs, lower operating costs and corporate expenses

•  2020 EBITDA increased by 50% driven by higher TCs, the BRL depreciation and lower corporate expenses

US$ million

Market-related

Comments

Smelter Cash Cost 2020 vs. 2019 (US$/lb)

•  Market related factors such as prices, TCs and FX had a positive variation impact of US$45 million

•  By-products had a negative variation of US$20 million

•  Lower operating costs (energy prices and higher silicate mix) and corporate expenses

(1) Includes: Other income and expenses and Project Evaluation

Smelting Consolidated

CajamarquillaTrês MariasJuiz de Fora

Smelting segment | guidance

Steady sales increase expected over next 3 years driven by regular production

Comments

• • 2021-2023 metal sales guidance:

  •  Metal sales volume at the midpoint of the guidance range in 2021 is estimated to increase 7% compared to 2020.

  •  For 2022, metal sales volume is estimated to increase 3kt over 2021, and to remain stable in 2023 over 2022.

• • 2021 cash cost guidance is expected to increase year-over- year:

  2021 cash cost guidance (US$/lb)	2021e
  Smelting cash cost(1)(2)	0.95
   higher LME prices,
  Cajamarquilla	0.96
  compared to 2020.
  Três Marias	0.93
  Juiz de Fora	0.96

  increasing

  •  lower benchmark TCs; and

Metal sales (Zinc metal + Oxide) - Mid range

000 ton

2021e

2022e

Upper rangeLower range

Cash cost

US$/lb

rawmaterialcosts

(1) C1 Weighted Cash cost net of by-products credits is measured with respect to zinc sold per smelter. (2) Cash cost numbers include and contemplate COVID-19 incremental costs.

2023e

Smelting segment | historical EBITDA

Zinc PricesTC BenchmarkBenchmark TC (3-year average)

2018

EBITDA (US$MM)EBITDA Margin (%)

2,922

147

177

2019

1Q20

2Q20

3Q20

4Q20

2020

2020

2,546

245

188

Liquidity and Indebtedness

Debt profile (as of December 31, 2020) - (Pro-forma)

Debt amortization schedule - (US$ million)

Average debt maturity: 5.4 years @4.68% avg. cost

Net debt1

(US$ million)

970

September 30, 2020 December 31, 2020

924

Net Debt/LTM Adj. EBITDA

3.23x

2.29x

• • Nexa successfully obtained waivers in respect of certain financial covenants

Net Debt/LTM Adj. EBITDA driven by:

• • Higher adjusted EBITDA

• • Lower Net debt

Extended debt profile. Only 7.2% of the total debt matures until December 2021 and 29.6% matures between 2022 and 2026, while 63.2% of total debt matures after 2027.

(1) Gross debt (US$2,024 million) minus cash and cash equivalents (US$1,086 million), minus financial investments (US$35 million), plus negative derivatives (US$5 million), plus Lease Liabilities (US$26 million).

Nexa | Disciplined capital allocation

Capital expenditures

2019

450

2020

2021e

Exploration and Project evaluation

AripuanãOthers (1)Sustaining (2)HSE

Others (3)

•  CAPEX before tax credits was US$354 million in 2020. Total CAPEX was US$336 million.

  • o Aripuanã totaled US$187 million, 55% of total investment.

  • o Essential sustaining (including investment of US$115 million.

•  2021 estimated CAPEX of US$450 million.

HSE)

• o Resume our sustaining and HSE investments, similar to pre-pandemic levels.

113

2019

Mineral explorationMineral rightsSustainingProject Evaluation

•  Exploration and Project Evaluation expenses in 2020 were US$54 million.

•  2021 estimated investment of US$71 million, following the resumption of exploration and mine development activities.

  2020

  2021e

•  In addition, we expect to invest US$9 million in technology and contribute US$10 million to our host communities

(1) Including Vazante LOM extension, Magistral FEL3 and Bonsucesso FEL3 studies completion. (2) Investments in tailing disposal are included in sustaining expenses. (3) Modernization, IT and others; including tax credits of US$18 million in 2020 with respect of ongoing projects.

Cash Flow | 4Q20

US$ million

Adjusted EBITDA

Working Capital¹

167

132

TaxesSustaining Interest paid FCF beforeCAPEX²

expansion and othersOther Capex³

Loans/CapitalOther non-Investments reduction of operational4 subsidiary

FCF

FCF before expansion positively impacted by a solid operating income and changes in working capital

Strong operating cash generation created a cash cushion allowing us to comfortably invest US$100mm CAPEX in

4Q20 and still generate positive FCF

Cash Flow | 2020

US$ million

Working Capital¹

Adjusted EBITDA

TaxesSustaining CAPEX²

Interest FCF beforepaidexpansion and othersOtherLoans/ Capital PremiumCapex³ Investments reduction paid on of bonds subsidiary repurchase

Dividends Other non- operational4

FCF

FCF before expansion positively impacted by a solid operating income and changes in working capital

Positive FCF driven by positive operating income, working capital, and US$500mm bond offering in 2020

Global outlook | Zinc

LME average price1

US$/ton

2,628

2,388

2,335

4Q19

3Q20

4Q20

2019

Zinc concentrate supply2

2020

•  Zinc price increase mostly driven by strong economic activity in China and a weaker U.S. dollar.

Million ton

2017

2018

2019

2017 estimate

2020

•  Most of mines in China and Latin America have resumed activities in 2H20 but concentrate supply has not been sufficient to meet the improved demand from smelters, particularly in China.

•  Chinese spot TCs for imported material have decreased and reached their lowest level in December at US$85/t.

2021e

2022e

Actual & 2020 estimate

2023e

(¹) Based on daily prices, as traded in the London Metal Exchange. (²) Wood Mackenzie forecast for total stocks (LME+SHFE+Shadow) for 4Q20.

LME average prices | base metals

COVID-19 outbreak and its impact are still uncertain. Supply disruption could be higher than the historical average, which combined with demand recovery could support higher prices

Copper	Lead	Silver
LME average price¹	LME average price¹	LME average price¹
US$/ton	US$/ton	US$/ton

5,881

6,519

7,166

6,000

6,181

4Q19

3Q20

4Q20

2019

2020

LME price evolution¹ US$/ton

(¹) Based on daily prices, as traded in the London Metal Exchange.

2,045

1,901

1,873

4Q19

3Q20

4Q20

2019

2020

LME price evolution¹ US$/ton

17.3

24.3

24.4

4Q19

3Q20

4Q20

2019

2020

LME price evolution¹ US$/ton

Nexa | 2021 priorities

Continue capturing gains from our Nexa Way program gaining through increased efficiency, productivity and cost reduction initiatives

Deliver the construction of Aripuanã's mine and plant on time and on budget

Continue to deliver on guidance: production, sales and costs

Continue to progress on Magistral and Bonsucesso engineering studies

We remain positive in industry fundamentals and we're confident

Nexa has a unique position to generate value for all its stakeholders

IR Contact:

[e-mail]://ir.nexaresources.com