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Scotiabank Mining Conference December, 2017
ir@nexaresources.com
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 are is not clearly historical in
nature areis 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 present 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 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, Aripuanã, 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.
1
Highlights
1 5 operating mines / 3 operating smelters / 7 greenfield projects in the pipeline
2 473 kt of total metal content* production in the LTM as of September 2017
3 Adj. EBITDA of US$472 million in the LTM as of September 2017
4 Revenues of US$2,240 million in the LTM as of September 2017
5 Net Debt/Adj. EBITDA of 0.77x as of 30 September 2017
6 Initial Public Offering:
35,650,000 common shares 36% of free float
20,500,000 Primary tranche US$ 2.2 billion mkt cap
as of September 30th 2017
US$ 328 million @ US$16
* The total 473kt of metal includes: (i) 377kt of Zinc; (ii) 44kt of Copper; (iii) 51kt of Lead; (iv) 7,392koz of Silver and (v) 32koz of Gold
2
About Votorantim Group, Nexa’s Major Shareholder
Votorantim S.A.
64.3% 100% 100% 100% 100% 29.4% 50% 50%
+43,000
Zinc &
employees By- Cement Aluminum Long Steel Energy Pulp
Orange
Finance
Juice
products
Net Revenue
US$7.6bn # 1 in # 1 in # 2 in JV with #3 Global Global #9
Brazil Brazil Brazil ArcelorM. private Leader Leader privately-
#4 #8 in Brazil energy NYSE held bank
Globally Globally # 2 in trading in Listed in Brazil
Colombia Brazil
Adjusted
# 3 in
EBITDA Argentina
US$1.2bn
23 countries
+700
operating
units
worldwide
Data as of December 2016
3
Corporate Structure - Summary
Free Float Others minority
Votorantim S.A. (listed on NYSE and TSX
under the ticker NEXA) shareholders
64.25% 26.74% 9.01%
Nexa Resources S.A.
99.91% 100% 100%
Votorantim Metais - Votorantim Metais
Votorantim GmbH
Cajamarquilla S.A. Zinco S.A.
Smelter: Cajamarquilla Mines: Vazante
Morro Agudo
80.06%
Smelters: Três Marias
Juiz de Fora
Milpo
Mines: Cerro Lindo
El Porvenir
Atacocha
4
Leading Zinc Base Metals Player
High quality and profitable operations driving a sustainable, large-scale business
Asset Base Positioning
5 Operating Mines 3 Smelters Top 5 2nd quartile
The only smelting player Global zinc miner Mining and smelting cash
7 Greenfield Projects south of Mexico in Americas and smelter costs2
2016 Mining Production Breakdown 2014 – 2016 Average Adj. EBITDA4 By Segment / Region (US$ MM)5
Au 17 kt 2.6%
Pb 59 kt 8.1% Smelting units
Mining units
Ag 68 kt 10.5%
651 kt Zn Eq.1 63% 63% 37%
37%
Cu 42 kt Zn 417 kt
14.8% 64.0%
9M17 Au 17 kt 3.4%
73% 27%
Pb 36 kt 7.8%
Peru Brazil
Ag 31 kt 7.2%
430 kt Zn Eq.1
Cu 77 kt Zn 273 kt
18.0% 63.6%
1. Zinc contained in concentrates; equivalent figures based on avg prices of 2016: US$2,094.75/t for zinc, US$4,862.59/t for copper, US$1,871.58/t for lead, US$17.14/oz for silver and US$1,250.80/oz for gold
2. 2nd quartile of the global C1 mining cash cost curve - composite 2016 cash cost curve as per Wood Mackenzie methodology; 2nd quartile of smelting cash cost curve per Wood Mackenzie methodology in 2016
5
Over Half a Century Building a Prominent Base Metals Producer
TRACK RECORD OF GROWTH THROUGH
DISCIPLINED DEVELOPMENTS, EXPANSIONS AND ACQUISITIONS
Cerro Lindo
expansion to 10
ktpd
Completed Cerro Lindo
expansion at expansion to 18
Acquired Cajamarquilla from ktpd Start of
Foundation of Acquired Companhia 160 kt to 320 kt integration of El
Companhia Mineradora Paraibuna Start-up of Acquired control of Porvenir and
Mineira de Morro de Metais, in Cerro Lindo Milpo reaching a Atacocha mines
Metais (CMM) Agudo S.A. Juiz de Fora (5 ktpd) 50.1% stake Creation of Nexa
1950s 1960s 1980s 1990s 2002 2004- 2006- 2008 2010 2012 2014- 2017
2005 2007 2016
Start-up of Acquired Acquired Cerro Lindo Cerro Lindo
operations in Cajamarquilla Atacocha expansion to expansion to
Vazante and zinc smelter 15 ktpd 21 ktpd1
Tres Marias Acquired Increased
units 19.9% stake shareholding
in Milpo in Milpo to
83.6%2
Source: Prospectus
1. The Cerro Lindo unit has an authorized capacity of 20,000 tonnes of ore per day. However, Peruvian law allows units to operate at a capacity 5.0% higher than authorized capacity
2. Common shares in circulation; excludes investment shares
6
Leading Player in Both Mining and Smelting
2016 Top Global Zinc Miners (kt)1 2016 Top Global Zinc Smelting Companies (kt)1
2 of Top 12 Global Zinc Mines Cajamarquilla is 6th largest smelter
Cerro Lindo (#7) 1.500 globally and the largest smelter in
1.500
Vazante (#11) the Americas
1.000 1.000
#4
#4
500 500
- -
Player 2 Player 3 Player 4 Nexa Player 5 Player 2 Player 3 Player 4 Nexa Player 5
Base Metals Peers’ Exposure to Zinc (% of 2016 Mine Production)
Zinc Copper Precious metals Other
3%
8% 9% 10%
16% 15%
24% 23%
13%
9%
26%
15% 35% 7% 57% 58%
20%
3% 85%
27% 66%
62% 61%
1%
7%
64% 22%
53% 49% 26%
37%
20% 18% 15% 15% 12% 9%
Player 2 Player 3 Player 4 Player 5 Player 6 Player 7 Player 8 Player 9 Player 10
Source: Company fillings, FactSet, Wood Mackenzie: Global Zinc Production Ranking by Operation and by Company - 2016 and 2017 (2017 estimate as at LTO Q2 2017) / pro-rata basis
1. Mining and smelting rankings consider 100% of total production
7Mines and Smelters Operations
Track Record of Continuous Operations
Strategically located in mining friendly jurisdictions
Cajamarquilla
Years in operation: 36
Capacity: 335 ktpa Zn
Cerro Lindo (UG) Vazante (UG, OP)
Tres Marías Juiz de Fora
Years in operation: 10 Years in operation: 48
Throughput: 21 ktpd1 Throughput: 4.1 ktpd
Years in operation: 48 Years in operation: 37
Metals: Zn, Cu, Pb, Ag Metals: Zn
Capacity: 190 ktpa Zn Capacity: 89 ktpa Zn
Zn
Conc.
El Porvenir (UG) Atacocha (UG, OP) Morro Agudo (UG, OP)
Years in operation: 68 Years in operation: 79 Years in operation: 29 Smelting Products3
Throughput: 6.5 ktpd . Throughput: 4.5 ktpd Throughput: 3.4 ktpd
Metals: Zn, Pb, Ag, Au Metals: Zn, Pb, Ag, Au Metals: Zn, Pb
Pasco Mining Complex2
Mining Breakdown3 Smelting Breakdown3
74% 651 kt Zn Eq.3 26% 55% 608 kt Metallic Zinc 45%
CL EP ATA VZ MA CJM TM JDF
48% 16% 10% 21% 5% 55% 31% 14%
1. The Cerro Lindo unit has an authorized capacity of 20,000 tonnes of ore per day. However, Peruvian law allows units to operate at a capacity 5.0% higher than authorized capacity
2. Integration in process
3. 2016 figures; equivalent figures based on avg prices of 2016: US$2,094.75/t for zinc, US$4,862.59/t for copper, US$1,871.58/t for lead, US$17.14/oz for silver and US$1,250.80/oz for gold; figures based on 2016 total production
8Financial Overview
Consistent financial results driving strong cash flow generation
Net Revenue (US$ MM) Adjusted EBITDA (US$ MM)
Avg. LME
2,165 1,928 2,095 1,955 2,783 27,2%
Zn price 24,9% 25,5% 26,0%
($/t) 21,1%
2.118
1.913
1.825
1.713
528
1.386 468 445
404 377
2014 2015 2016 9M 2016 9M 2017 2014 2015 2016 9M 2016 9M 2017
Total Zn
635 642 651 488 429
Eq. Prod.
(kt) Adjusted EBITDA Adj. EBITDA Margin
CAPEX (US$ MM) CAPEX by segment (US$ MM)
Expansion Sustaining Modernization, HSE, others
Others Others
4,0% 3,0%
187 183
154
Smelter
131 Mine
88 Smelter 36,0%
42 102 115 56,0% Mine
40,0% 9M 2017 9M 2016
59 61,0%
45
85 54
49 40
47
28 36 41 23 32
2014 2015 2016 9M 2016 9M 2017
9Financial Overview
Robust balance sheet with a conservative leverage profile
Amortization Schedule as of Sep 2017 (US$ MM)1 Debt by category as of Sep 2017
7 30 63
1.434 171 By Loan
104
15 345 BNDES
5% Banks
16%
700
Average remaining debt
maturity: ~ 7 years
Bonds
73%
Total Debt as 2017 2018 2019 2020 2021 2022 2023 2024+
of Sep 2017
By Currency
Net Debt / Adjusted EBITDA2
1,10
0,78 0,77 0,80
BRL
0,32 10,0%
584
367 363 377
USD
129
90,0%
2014 2015 2016 9M 2017 Pro Forma 3
1. Principal only
2. Considering interest accrual and costs, according to the Company’s covenants criteria
3. US$311.6 million net of fees / 4(i) Dividends paid on October 2017 by Milpo to its non-controlling shareholders of US$58 million; (ii) share premium reimbursement to our shareholders of US$150 million made on
October 2017; (iii) assumed obligations related to energy assets of USD109 million and (iv) USD8 million of other effects
10Operations: Mining and Smelting
Mining overview
Portfolio of efficient, low cost, cash generating mines
Low-Cost Mines
On a consolidated basis, our combined mining operation is in the
second quartile of the global cost curve by Wood Mackenzie
Peru
Pasco
Brazil Large scale and close proximity mines create efficiencies and
Complex reduce costs
Cajamarquilla
Modern and mechanized, increasing productivity
Cerro Lindo Morro Agudo
Vazante Três Marías
All In Sustaining Cost (AISC) of 41.6 c/lb in 2016 and 40.4 c/lb in
Juiz de Fora H1 2017
Nexa Mines Cerro Lindo (#7) and Vazante (#11) amongst the top 12 zinc mines
Nexa Smelters globally
Wood Mackenzie 2016 Zinc Consolidated Mining C1 Composite
2016 Cash Cost After By-product Credits By Mine (¢/lb) Cash Cost Curve (¢/lb) - By Company
Cash Cost Sustaining Cash Cost All In Sustaining Cost (AISC) 100
Top 5 Producers
11,8
Cerro Lindo 16,1
37,6
El Porvenir 41,6
31,1 32%
Atacocha 39,3 50
45,3
Vazante 47,5
60,6
Morro Agudo 66,7
29,7
Combined Mining Unit 33,6 0
41,6
0 5.000 10.000 15.000
Cumulative Paid Metal (Mlbs)
12Mining - Reserves Replenishment and Growth
Reserves have been replaced and have grown over the past 5 years
Nexa Reserves Replacement at its Operating Mines (Mt Zn Eq.)1;2
Proven
Reserves Reserves have grown by ~50% since 2011
Probable
Reserves
5,89
3,91 2,87
+5.80
2,32
-3.82
3,01
1,58
2011 Reserves Zn Eq Ore Mined '12 - July '17 Reserves Replacement July 2017
Nexa Reserves and Life of Mine3
Cerro Lindo Vazante El Porvenir Atacocha
Mine
Life 12 8 6 10 7 10 1 11
(Years)
15,0 22,6 16,9
52,4
Reserves
(Mt)
36,3
8,5 12,2
2,2
2011A 1H2017 2011A 1H2017 2011A 1H2017 2011A 1H2017
1. Assuming 100% ownership of Milpo and Atacocha; reserves replacement calculated by subtracting 2011 Zn Eq. reserves from July 2017 Zn Eq. reserves, plus Zn Eq. Ore Mined
2. Zinc equivalent is calculated as (zinc content x zinc price + copper content x copper price + lead content x lead price + silver content x silver price + gold content x gold price) ÷ zinc price; zinc equivalent ore mined is based
on respective metal content in ore mined and 2016 average metal prices of US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; zinc equivalent reserves are based on in situ metal
content before considering metallurgical recoveries and metal prices used in the definition of the respective reserves as described in Appendix: Asset Overviews – Slide 34
3. H1 2017 Mine Life based on prospectus assuming beginning of 2018; 2011 mine life calculated through dividing Reserves by Ore Mined 13Smelting overview
Locations and efficiency of our smelters are key to our competitive advantage
Smelters Located Near Mines, Ports and Major Population Centers Smelters Provide Strategic Advantages
City Nexa Smelters Modernized equipment & processes
Nexa Development Assets Third Party Assets
Nexa Producing Mines Steel Plants
Cajamarquilla is 6th largest smelter globally and the largest smelter
in the Americas
500 km
In proximity to concentrate producers: we benefit from freight
300 km
Huanzala Brasilia parity
Pasco Mining Complex
Hilarion
100 km
Shalipayco Morro Agudo Located in proximity to infrastructure and core markets: we benefit
Vazante Três Marías
Lima Cajamarquilla from higher premiums
Pukaqaqa
Access to reliable power supply
100 km Peru Juiz de Fora
Cerro Lindo Brazil AISC of 86.6 c/lb in 2016 vs. realized zinc price3 of 104.5 ¢/lb
300 km Sao Paulo Rio de Janeiro
Wood Mackenzie 2016 Smelter Cash Operating Cost Curve
2016 Cash Cost After By-product Credits By Smelter2 (¢/lb) (US¢/lb) - by Company1
Cash Cost Sustaining Cash Cost All In Sustaining Cost (AISC) 150
Top 5 Smelters
Realized Zinc Price3 US¢ 104.5 /lb
LME average US¢ 95.0 /lb
25%
100
86,6
81,9 82,0 82,5
80,7 80,4 81,2
79,9 79,6
50
0
Cajamarquilla Tres Marias Juiz de Fora Combined Smelting 0 5.000 10.000
Unit 4 Cumulative Paid Metal (Mlbs)
1. Defined as the net feed cost (the cost of feed net of any byproduct revenues) added to the cash conversion cost of the smelter. The cash conversion cost includes all the costs of smelting, including costs associated with labor, net
energy, maintenance materials, consumables and other on-site costs.
2. Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS financial measures.
3.
4.
Average LME zinc price plus the aggregate price premium for the period of 2016
Includes Corporate and other costs not assigned to individual smelters
14Smelting - Integrated Operations
Integrated Value Chain Provides Greater Stability and Profitability
Sources of Smelter Supply –
Zinc Contained in Concentrate 2016 (kt)1 Benefits of Integration
MINING SMELTING
Exceptional knowledge of global zinc market
Economies of scale
Mining > Smelting
Direct access to end users enables capture of metal premiums
651
Inventory Reduced cash flow volatility
645 Consumption
17 Au 7
53 Pb 18 Greater value capture on the distribution chain, eliminating intermediaries
Secondary Raw
Materials
68 Ag
Zinc Contained Sources of Zinc Concentrate to Nexa Smelters 2016 (kt)3
236 from 3rd Party
96 Cu Mines
19%
Juiz de Fora 63% 92 Nexa Mines Third Party Sources Secondary Raw Material
18%
4
Tres Marias 96% 3% 201
417 Zn Zinc Contained
384
from our Mines2
Cajamarquilla 39% 61% 346
Consolidated 60% 37% 3% 638
Metal Our Smelting
Production (Zn Eq.) Operations Inputs
1. Zn Eq. calculation assumes US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au
2. Represents 92.22% of total zinc contained in concentrate produced in our mines
3. Exclusive of smelting inventory consumption
4. Includes 1% secondary raw material not displayed on the bar graph 15Smelting - Price Realization
Service, delivery, logistics, quality and market dynamics support premiums
Nexa Actual Gross Premium over the LME Zinc Price (US$/t)1 Our Strategic Advantages Support Premium Prices
Bench. USA Bench. Singapore Bench. Rotterdam Leading marketing organization, both locally and globally
Ability to consistently deliver significant volumes
231 Proximity to core markets
215
218 Quality and variety of products
209
Long lasting relationships with customers
200 Ownership of all zinc smelters south of Mexico in the Americas
Diverse end user base
Zinc Sales by Region Market Share
2016 2016
Total: 601 kt
150 RoW LatAm 53,0%
+Traders LatAm
12% 52%
Asia
5% Africa 24,0%
Africa
6%
North America 5,0%
North
America
11% Europe 4,0%
100
2014 2015 2016 H1 2017
Europe
15% Asia 0,3%
1. Including zinc oxides and molten metal sales
16Investments: Brownfield and Greenfield opportunities
Investments – Brownfield: Track Record
Metal Contained in Ore Mined (kt Zn Eq.)1;2 Ore Mined CAGR3
Zinc Other Base Metals Precious Metals Cerro Lindo (2008 - 2016) 17,9%
Vazante (2000 - 2016) 7,0%
CAGR: 5.4%
El Porvenir (2000 - 2016) 4,6%
720 734 735 Morro Agudo (2000 - 2016) 3,0%
677
81 90 99 Atacocha (2008 - 2016) 2,1%
594 72
55 171 Smelting Production – Metallic Zinc Only (kt)
170 180
152
Cajamarquilla Tres Marías Juiz de Fora
120
+6%
590 608
573
74 81 87
453 469 473 456
419 172 178 187
327 330 334
2012 2013 2014 2015 2016 2014 2015 2016
1. Zn Eq Ore Mined calculation assumes US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au
2. Calculated using ore mined multiplied by head grades for each metal, and converted to a zinc equivalent basis
3. Defined as compound annual growth rate of ore mined for the period listed
18Investments: Brownfield – Opportunities
Opportunities CAPEX Timing
Continued exploration (discovered major new OPEX Next 12-24 months
Lindo
Cerro
orebodies in each of the last 8 years)
Contractor optimization
Productivity improvements: fleet upgrade, shotcrete
process optimization
Extend mine life until 2028, mining below current US$ 184MM 2013 – 2023 (US$
production level
Vazante
93MM in 2018-2019)
Improve zinc recoveries through Vertimill installation
in 2019
Potential definition of calamine resources from recent
exploration to extend future mine life
Integration process underway between Atacocha US$ 51MM Completion in 2018
Pasco
and El Porvenir
Focused on mining, administration, tailings, and
energy transmission efficiencies
Ambrósia Trend Project: surface operation will mine US$ 19MM Commenced in May
Agudo
Morro
zinc sulphide and lead for delivery to Três Marias 2017
smelter; potential to extend mine life through 45 ktpa
of zinc concentrate production
Improve zinc recoveries by 3% (from 93.8% to US$ 23MM Completion by
Cajamarquilla
96.8%) January 2019
Convert Cajamarquilla from Goethite process to
Jarosite process
We Prioritize Efficient, Safe and Sustainable Operations Through Technology and Automation
19Investments - Greenfield
Resources of greenfield projects are larger than current operations
Reserves & Resources (kt Zn Eq.)1
2.4x
11.812 59%
3.8x
7.263 73%
8.185 41%
2.634 27%
Reserves + M&I Resources Inferred Resources
Current Operations Projects
1. Zinc equivalent is calculated as (zinc content x zinc price + copper content x copper price + lead content x lead price + silver content x silver price + gold content x gold price + molybdenum content
x molybdenum price) ÷ zinc price; zinc equivalent production is based on respective metal content in concentrate and metal prices of US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$
17.14/oz Ag, US$ 1250.8/oz Au, and US$16,491/t Mo; zinc equivalent reserves and resources are based on in situ metal content before considering metallurgical recoveries and metal prices used
in the definition of the respective reserves and resources as described in Appendix: Asset Overviews
20Investments - Greenfield: Pipeline
Main highlights of our zinc and copper projects
7 greenfield projects &
generative VMS and
Florida
opportunities Canyon
Brazil
2017E Budget: US$ 68MM
Peru
389km of drilling Aripuanã
Shalipayco
Magistral
Caçapava Sao Paulo
Exploration Rights Areas Hilarión
do Sul
Lima
386kHa
2.55MHa Pukaqaqa
Nexa Greenfield Projects
Target Annual Zn Eq. Measured & Indicated Inferred
Capex1 Drilling (km) Status
Zinc Projects Start Up Production5 Mt Zn (%) Zn Eq. (%)2 Contained3 Mt Zn Eq. (%)2 Contained3
Aripuanã 2020 $354MM 101 kt 151 PFS 21.8 4.8 8.8 1,918 24.6 8.7 2,144
Shalipayco 2021 $47MM 51 kt 91 PEA 6.3 5.6 6.9 436 16.9 6.2 1,051
Florida Canyon TBD $214MM 67 kt 117 PEA 3.3 12.2 13.6 444 8.8 11.2 986
6
Hilarión NA NA NA 282 Exploration 69.4 3.8 5.2 3,577 37.5 5.0 1,877
Caçapava do Sul 2022 NA NA 127 Exploration 13.0 1.2 3.5 453 13.3 3.3 431
Total zinc projects 758 113.8 4.0 6.0 6,828 101.1 6.4 6,489
Target Annual Cu Eq. Measured & Indicated Inferred
Capex1 Drilling (km) Status
Copper Projects Start Up Production5 Mt Cu (%) Cu Eq. (%)2 Contained4 Mt Cu Eq. (%) Contained4
Magistral 2022 $555MM 52 kt 102 PEA 205.3 0.5 0.6 1,140 50.6 0.5 231
Pukaqaqa NA NA NA 163 Exploration 309.0 0.4 0.4 1,236 40.1 0.3 136
Total copper projects 266 514.3 0.4 0.5 2,376 90.7 0.4 367
1. Upfront Capital
2. Refer to Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn / Cu. Eq. calculations for Reserves and Resources
3. Contained Zn. Eq. metal in thousands of tonnes. refer to Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations for Reserves and Resources
4. Contained Cu. Eq. metal in thousands of tonnes. refer to Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Cu Eq. calculations for Reserves and Resources
5. Zn Eq. production and Cu Eq. production assume prices of US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au and US$16,491/t Mo 21
6. Includes drilling prior to 2005 by Mitsubishi Corp. and Minera HilariónInvestments - Greenfield: Aripuanã Overview
Main greenfield opportunity
Key Highlights Location / path to market
JV with Karmin Exploration -30%) (TSXV-KAR) – 70% VMH (Karmin free carry Located in Mato Grosso State, western Brazil
through construction)
1,200 km northwest of Brasilia
Polymetallic underground VMS deposit hosting zinc, lead, copper, gold and silver
Concentrate will be first trucked from Aripuanã to
Extensive drilling – 145,000 meters including 497 diamond drill holes Rondonópolis and then by rail to Santos port
Resources: M&I – 21.8 Mt @ 4.8% Zn / 8.9 Zn eq. Inferred – 24.6 Mt @ 3.9% Zn /
8.9% Zn eq.
PEA study completed July 2017
Expected operations comprise an integrated 1.8Mtpa underground operation from
the two primary orebodies (Ambrex and Arex) and processing facility
Average annual metal in concentrate of 51 kt zinc, 4 kt copper, 20 kt lead
commencing 2020
Initial mine life of 24 years, with pre-production capital expenditure of $354 million
Attractive regional infrastructure including availability of power, water and artisanal
labor
Brazil
Resource (M&I) in Zn Eq.1 Resource (M&I) in Zn Eq.1
Aripuana
M&I Zn Eq.: 1,947 kt
(Metal in concentrate recovered in Zn Eq. kt)1
Inferred Zn Eq.: 2,180 kt
Brasilia
47 63 84 112 110
Rondonópolis Tres Marias
13% 9 5
13 14 Juiz de Fora
8% 7 5
10 10
21 Sao Paulo
9% 7 10 21
53% 8 Santos
3
7 13
13
16% 8 7
7 27 44 59 64
23
2020 2021 2022 2023 2024
Zinc Lead Copper Gold Silver Zn Eq. Zinc Lead Copper Silver Gold
1. Zinc Eq. based on LT metal prices of: $2,338 per tonne Zn, $1,933 per tonne Pb, $6,042 per tonne Cu, $16,491 per tonne Mo, $1,276 per troy ounce Au, and $18.9 per troy ounce Ag.
22Sustainability - Global Best Practices
Our success is tied to ensuring social and environmental well-being
We Have Helped Build Our Communities for Nearly 80 Years Best In Class Environmental Practices Throughout Operations
Independently audited tailings dam
Constantly management system
engage with
Dry-stacking tailings used at Cerro
stakeholders
throughout
4 Lindo and planned for Vazante
Biomass boilers now used at Tres
development
Marias instead of fuel oil boilers
and operations
Waste-free operations achieved at
Morro Agudo due to
commercialization of agricultural lime
Invest in Regularly
community provide
enterprises, education and
that support training for
3
nearby community
communities members
and operations
Underground paste back-fill system
adopted at three operations
Actively hire 2 38% of waste is returned to mines,
and promote reducing the need for tailings storage
local
2025 Target: 50% Waste Reduction
community In 2016, 67% water recirculation
members rate achieved, a 9% YoY gain
91% recirculation at Cerro Lindo
Milpo was proudly awarded the Empresa Low water use is key to community
Socialmente Responsable award in 2016 acceptance
for CSR practices by “Peru 2021” 1
95 projects benefitted 13,000+ people in
2016
100% fresh water feed at Cerro Lindo from
Recognized as the most sustainable desalinated sea water (one of the first Peruvian
Brazilian mining company for 4 of last 5 mines to use sea water)
years in Exame’s Sustainability Guide
We Have Outstanding Relationships with our Communities and Aim to Leave a Positive Legacy
23Sustainability - Health & Safety Commitment
Safety and well being of our employees is a crucial component of our long-term success
Safety Track Record
Commitment to Safe Behaviour
Health and safety are among our highest priorities with policies and procedures in place that seek to eliminate accidents
We have taken immediate action to address the fatality issue, launching multiple initiatives in order to reinforce
• Leadership development
• Training practices of our employees and third party contractors
• Preventive procedures, such as digital mining and
automation plans
5,387 employees and 6,941 independent contractors as of December 31, 2016
Total Recordable Injury Frequency Rate
# of Injuries per 1MM Hours
2014 2015 2016
Worked
Nexa 2.78 2.27 2.25
Median Peers1;2 4.25 3.58 3.1
1. Median includes peers that reported “Total recordable injury frequency rate” which were Teck, KAZ Minerals, Lundin Mining, Freeport-McMoRan, Glencore and MMG
2. The comparable information about other issuers was obtained from public sources and has not been verified by the Company of the Underwriters. Comparable means information that compares an issuer to other issuers. The
information is a summary of certain relevant operational attributes of certain mining and resource companies and has been included to provide the prospective investor an overview of the performance of what are expected to be
comparable issuers. The comparable issuers face different risks from those applicable to the Company. Investors are cautioned that past performance is not indicative of future performance and the performance of the Company may
be materially different from the comparable issuers. If the comparables contain a misrepresentation, investors do not have a remedy under securities legislation in any province in Canada. Investors are cautioned not to put undue 24
reliance on the comparables in making an investment decision.Appendix: Financials & Assets Overview
Historical Results (IFRS)
US$ million 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2014 2015 2016
Net Revenues 394.4 469.1 522.9 526.4 531.2 555.8 625.8 2,118.3 1,824.8 1,912.8
COGS -315.5 -334.2 -363.5 -373.9 -376 -392.8 -429.7 -1,594.9 -1,422.9 -1,387.1
SG&A -44.8 -46.3 -59.8 -67.1 -58.2 -57.2 -59.5 -242.9 -190.9 -218.0
Selling Expenses -20.8 -23.4 -24 -22.5 -20.7 -21.5 -22.5 -93.1 -84.6 -90.6
General & Adm Expenses -24 -22.9 -35.9 -44.6 -37.5 -35.7 -37 -149.8 -106.3 -127.3
Other Operating Results -4.6 -30.6 -17.2 -125.4 -21.8 -27.4 -40.9 -108.3 -47.1 -177.8
Net Financial Result 54.4 57.5 -21.6 -11.2 4.1 -70 25.8 -167.1 -341.9 79.1
Financial Income 6.5 6.3 7.4 4.7 10.2 10.6 4.2 13.7 19.3 25.0
Financial expenses -15.4 -19.3 -18.9 -16.8 -22.4 -29 -29.7 -73.5 -61.6 -70.4
Foreign exchange, net 63.3 70.5 -10.2 0.9 16.3 -51.6 51.2 -107.3 -299.6 124.5
Depreciation 67.9 68.2 71.2 67.7 68.9 66.3 65.2 319.0 295.3 275.0
Adj. EBITDA 96.8 126.2 153.6 27.3 144 139.7 161.3 528.2 467.8 403.9
Adj. EBITDA Margin 24.50% 26.90% 29.40% 5.20% 27.10% 25.10% 25.80% 24.94% 25.63% 21.12%
Net Income 45.8 93.3 48.4 -76.9 55.3 5.1 81 -27.0 -139.8 110.5
Number of shares (in ‘000) 1.874 95.568 112.821 112.821 112.821 112.821 112.821 1,819 1,874 80,699
EPS (in US$) 24.44 0.98 0.43 -0.68 0.49 0.05 0.72 -0.01 -0.07 0.00
26Historical Results (Mining Operations)
Concolidated 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2014 2015 2016
Treated Ore (kt ROM) 3,098 3,136 3,151 3,283 3,257 3,283 3,412 3,434 3,026 3,269 3,369 11,969 12,668 13,387
QoQ NA 1.2% 0.5% 4.2% -0.8% 0.8% 3.9% 0.6% -11.9% 8.0% 3.1% NA NA NA
YoY NA NA NA NA 5.1% 4.7% 8.3% 4.6% -7.1% -0.4% -1.3% NA 5.8% 5.7%
Zinc grade (%) 4.04 3.59 3.84 3.46 3.45 3.49 3.58 3.38 3.48 3.21 3.04 3.92 3.73 3.47
Copper grade (%) 0.38 0.41 0.43 0.43 0.41 0.41 0.37 0.39 0.39 0.45 0.43 0.45 0.41 0.40
Lead grade (%) 0.58 0.56 0.53 0.53 0.57 0.58 0.60 0.51 0.52 0.52 0.50 0.55 0.55 0.57
Silver grade (oz/t) 0.84 0.88 0.84 0.89 0.90 0.94 0.91 0.85 0.80 0.87 0.79 0.82 0.86 0.90
Gold grade (oz/t) 0.00 0.00 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.01
Zn Content (kt) 115 101 108 102 101 102 109 104 92 92 89 429 426 417
Cu Content (kt) 9 10 11 11 10 11 10 11 9 12 12 42 40 42
Pb Content (kt) 14 14 13 14 15 15 16 13 12 13 13 51 55 59
Ag Content (koz) 1,836 1,946 1,838 2,024 2,037 2,138 2,150 1,990 1,632 1,935 1,835 6,778 7,644 8,315
Au Content (koz) 5 5 4 4 5 7 7 8 8 9 7 13 18 28
For asset by asset information, refer to: www.nexaresources.com/investors
27Reserve and Resources
Cerro Lindo El Porvenir Atacocha (UG+OP) Vazante Morro Agudo
52.4
22,6
Reserves and Resources (Mt)1
16,9
15,5
14,7 15,0
12,1
8,0
6,8
6,2
5,3
4,5
3,1 2,9
--
P+P M+I Inferred P+P M+I Inferred P+P M+I Inferred P+P M+I Inferred P+P M+I Inferred
Zn grade 1.9% 2.3% 2.0% 3.2% 3.8% 4.2% 1.7% 1.3% 3.1% 10.5% 16.9% 16.3% n.a. 4.4% 3.7%
Zn Eq. grade 4.3% 5.0% 5.0% 5.7% 7.2% 7.4% 4.3% 3.1% 6.5% 11.1% 17.8% 17.1% n.a. 5.2% 4.1%
Source: Prospectus
1. Refer to Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
28Asset Overview - Cerro Lindo
Key Highlights Historical Production: Delivering Long Term Production Growth
Located in the province of Chincha, Ica region – 268km from Lima and Total Ore Mined (2007 – 2016) Total Zn Contained in Ore Mined (2007-2016)
accessible by road
Developed in 2006 at 5.0ktpd capacity; authorized capacity of 20 ktpd and 39.9 Mt 1.2 Mt
throughput of 21 ktpd1
World-class zinc operation
10,0
• 7th largest zinc mine globally (2016)
• 2nd largest underground mine in South America; largest in Peru 6,8
7,4
7,5
• Strong by-product revenue stream (Zn-Cu-Pb-Ag) 5,4
5,9
Modern, mechanized, and low cost operations 5,0 3,8
VMS orebody with excellent exploration track record and potential 2,4 2,5
3,1
2,0
Environmentally friendly 2,5
0,6
• Paste backfill and dry stack tailings
• One of the first mines in Peru to use desalination; recycling as much as 90% of 0,0
its water consumption 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Silver streaming agreement with Triple Flag for 65% of all silver production until Ore Mined
19.5 MMoz of production is reached; 25% thereafter
Reserves & Resources2 2016 Statistics3
Grades Cash Cost,
Category Mt Zn Eq (%) Total Zn Eq. Production 314 kt
After By-Product Credits
Zn (%) Cu (%) Pb (%) Ag (g/t)
Ag Au 11.8 ¢/lb Zn
P&P 3.6MMoz 4 koz
52.4 1.92 0.68 0.22 20.2 4.3 (9.4%) (0.8%)
Reserves Pb Sustaining Cash Cost,
16 kt After By-Product Credits
M&I (4.5%)
6.2 2.25 0.73 0.32 25.8 5.0 16.1 ¢/lb Zn
Resources
Cu
Inferred 41 kt Zn
4.5 2.04 0.84 0.24 25.7 5.0 (30.0%) 174 kt
Resources (55.3%)
Life of Mine: 8 Years, Based on Current Reserves Only
Source: Prospectus
1. The Cerro Lindo unit has an authorized capacity of 20,000 tonnes of ore per day. However, Peruvian law allows units to operate at a capacity 5.0% higher than authorized capacity
2. Refer to the beginning of Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
3. 2016 Zn eq productions assume US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS
financial measures. For definitions of cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC, and reconciliations to our most directly comparable financial measures calculated and presented in accordance
with IFRS, please read Appendix: Non-IFRS Measures and Reconciliation
29Asset Overview - Vazante
Key Highlights Historical Production: Delivering Consistent Performance
Located in the state of Minas Gerais, in close proximity to the Tres Marias smelter (253km)
Total Ore Mined (2007-2016) Total Zn Contained in Ore Mined (2007-2016)
World-class zinc operation:
• 11th largest zinc mine globally (2016) 12.6 Mt 1.6 Mt
• Largest zinc mine in Brazil
• High grade zinc content (11.1%)
Mechanized and low cost underground operations 2,0
Major carbonate-hosted zinc deposit with unusual mineralogy in the zinc is predominantly
1,4 1,4 1,4 1,4
present as silicate rather than as sulphide 1,5 1,3 1,3 1,3
1,1
Environmentally friendly: 1,0 1,0
• Since 2004, Vazante has held ISO 14001, ISO 9001 certifications 1,0
• The main water source for industrial purposes is its own underground mine
(recirculated water) 0,5
• The mine’s pumping system has a reported pumping capacity of 15,650 m3/hr (375,600
m3/day) and is expected to reach 19,000 m3/hr (456,000 m3/d) by 2019
0,0
To support incremental mine production, planned installation of a Vertimill, which is due to be 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
commissioned in late 2019
Several potential targets with prospect of mine extension Ore Mined
Reserves & Resources1 2016 Statistics2
Grades Cash Cost,
Category Mt Zn Eq (%) Total Zn Eq. Production 136 kt
After By-Product Credits
Zn (%) Pb (%) Ag (g/t)
Pb 45.3 ¢/lb Zn
P&P 0.9 kt
15.0 10.5 0.29 15.9 11.1 (0.6%)
Reserves Sustaining Cash Cost,
After By-Product Credits
M&I
3.1 16.9 0.41 25.6 17.8 47.5 ¢/lb Zn
Resources
Zn
Inferred 136 kt
2.9 16.3 0.35 22.4 17.1 (99.4%)
Resources
Life of Mine: 10 Years, Based on Current Reserves Only
Source: Prospectus
1. Refer to the beginning of Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
2. 2016 Zn eq productions assume US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS
financial measures. For definitions of cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC, and reconciliations to our most directly comparable financial measures calculated and presented in accordance
with IFRS, please read Appendix: Non-IFRS Measures and Reconciliation 30Asset Overview - Morro Agudo
Key Highlights Historical Production: Delivering Consistent Performance
Fully integrated with the Três Marias smelter, generating operational Total Ore Mined (2007-2016) Total Zn Contained in Ore Mined (2007-2016)
savings and securing concentrate supply for smelting operations
9.7 Mt 278 kt
Ambrosia Sul deposit being developed as an open pit operation with first
production having occurred in June 2017
Project is under development at Morro Agudo plant to increase regrind 1,2
1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0
capacity to improve zinc concentrate grade
Significant geological upside suggesting potential for future operation along 0,8 0,7
the Morro Agudo and the Ambrosia Trend
Implementing the Ambrosia Project to expand the life of mine until 2028 0,4
Metallurgical testing planned for Ambrosia Norte and Bonsucesso
deposits to estimate metallurgical recoveries and further optimize the 0,0
mine plan 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sale of agricultural lime both reduces needs for tailings storage and Ore Mined
provides additional revenue
Resources1 2016 Statistics2
Grades Cash Cost,
Category Mt Zn Eq (%) Total Zn Eq. Production 30 kt
After By-Product Credits
Zn (%) Pb (%)
60.6 ¢/lb Zn
Pb
M&I 8 kt
6.8 4.39 1.05 5.2
Resources (24%) Sustaining Cash Cost,
After By-Product Credits
Inferred
12.1 3.66 0.53 4.1 66.7 ¢/lb Zn
Resources
Life of Mine: 11 Years Based on Current Resources Zn
23 kt
(76%)
Source: Prospectus
1. Refer to the beginning of Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
2. 2016 Zn eq productions assume US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS
financial measures. For definitions of cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC, and reconciliations to our most directly comparable financial measures calculated and presented in accordance
with IFRS, please read Appendix: Non-IFRS Measures and Reconciliation 31Asset Overview - El Porvenir
Key Highlights Historical Production: Delivering Long Term Production Growth
Strategically located within a traditional mining district (Pasco department)
Total Ore Mined (1950-2016) Total Zn Contained in Ore Mined (1950-2016)
• Accessible by road and railway
• 300km from Lima and the Cajamarquilla smelter 46.7 Mt 2.5 Mt
Developed in 1949 as a small-scale artisanal mine; production now ranges between 6.3
ktpd to 6.5 ktpd; current plant capacity of 6.5 ktpd 2.400 2.154
Polymetallic production with significant by-product credits 1.712
Underground mining with a mechanized ascending cut and fill mining method 1.600 1.342
Skarn deposit hosted in the contact between the limestones (Pucara group) and andesitic
939
– dacitic stock 747
800 640
Environmentally and socially friendly: 444
313
• Back-fill system, which allows to return 38% of the waste to the mine 101 181 245
5
• First mine in Peru to receive all three ISO certifications-ISO 9001, OHSAS 18001 and
0
re-certification ISO 14001-by SGS 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 2010 2016
• Excellent community relations thanks to the sponsorship of several development
programs within its influence area Annual Ore Mined (kt)
Reserves & Resources1 2016 Statistics2
Grades
Cash Cost,
Category Mt Zn Eq (%) Total Zn Eq. Production 107 kt
After By-Product Credits
Zn (%) Cu (%) Pb (%) Ag (g/t)
Au 37.6 ¢/lb Zn
P&P 9 koz
22.6 3.18 0.19 0.93 52.3 5.7 (5.0%)
Reserves Ag Sustaining Cash Cost,
2,715 koz After By-Product Credits
M&I (20.8%)
8.0 3.78 0.29 1.18 69.1 7.2 41.6 ¢/lb Zn
Resources
Inferred Pb Zn
14.7 4.24 0.33 0.95 61.6 7.4 17 kt 63 kt
Resources (58.4%)
(14.3%)
Cu
Life of Mine: 10 Years, Based on Current Reserves Only 1 kt
(1.4%)
Source: Prospectus
1. Refer to the beginning of Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
2. 2016 Zn eq productions assume US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS
financial measures. For definitions of cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC, and reconciliations to our most directly comparable financial measures calculated and presented in accordance
with IFRS, please read Appendix: Non-IFRS Measures and Reconciliation 32Asset Overview - Atacocha
Key Highlights Reserves & Resources1
Strategically located within a traditional mining district (Pasco department) Grades
• Accessible by road and railway Category Mt
Zn (%) Cu (%) Pb (%) Ag (g/t) Au (g/t)
Zn Eq (%)
• 300km from Lima and the Cajamarquilla smelter
P&P
5.5 3.29 0.30 1.03 58.8 - 6.3
Underground
Comprised of the Atacocha underground operation and the San Gerardo Reserves
open pit operation M&I
1.1 3.65 0.32 1.18 63.1 - 7.0
Resources
Developed in 1936 at 0.1 ktpd capacity; current capacity of 4.6 ktpd
Inferred
Polymetallic production with significant by-product credits Resources
3.3 4.36 0.35 1.65 77.8 - 8.5
Stands out for its long mine life supported by a track record of reserves and P&P
11.4 0.92 - 1.16 36.4 0.3 3.2
resources replenishment Reserves
Open Pit
Atacocha’s deposit has a polymetallic mineralization style in a porphyry M&I
14.4 1.11 0.05 0.88 29.6 0.1 2.8
environment, where hydrothermal activity is related to dacitic intrusions Resources
Inferred
Underground mining with a mechanized ascending cut and fill mining method Resources
2.0 1.10 0.04 1.07 32.7 0.1 3.0
Environmentally friendly: back-fill system, which allows to return 38% of the waste to
the mine Life of mine: 11 years, based on current reserves only
Historical Production: Delivering Long Term Production Growth 2016 Statistics2
Total Ore Mined (2009-2016) Total Zn Contained in Ore Mined (2009-2016) Cash Cost,
Total Zn Eq. Production 63 kt
After By-Product Credits
11.9 Mt 387 kt
Au 31.1 ¢/lb Zn
15 koz
2.100 (13.8%)
1.537 1.541 1.541 Sustaining Cash Cost,
1.425 1.455 1.480 1.431 1.487
After By-Product Credits
1.400
39.3 ¢/lb Zn
Ag Zn
700
2,002 koz 22 kt
(25.8%) (35.2%)
0
2009 2010 2011 2012 2013 2014 2015 2016 Cu
Pb 0.3 kt
Annual Ore Mined (kt) 17 kt (1.0%)
(24.2%)
Source: Prospectus
1. Refer to the beginning of Appendix: Asset Overviews for effective dates of the reserve and resource statements, and Zn Eq. calculations
2. 2016 Zn eq productions assume US$ 2,094.75/t Zn, US$ 1,871.58/t Pb, US$ 4,862.59/t Cu, US$ 17.14/oz Ag, US$ 1250.8/oz Au; Cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC are non-IFRS
financial measures. For definitions of cash cost after by-product credits, sustaining cast cost after by-product credits, and AISC, and reconciliations to our most directly comparable financial measures calculated and presented in accordance
with IFRS, please read Appendix: Non-IFRS Measures and Reconciliation 33Asset Overview - Cajamarquilla
Overview Location
Located in Lima, Peru, in close proximity to the Callao port, railways and zinc mines Metallic zinc and zinc oxide produced at the
smelter are transported by train to a terminal
Largest zinc smelter in Latin America and the sixth largest globally1
near the port of Callao
Operating since 1981
• Materials for domestic market: distributed by
• Expanded from 120 kt in 2004 to 320kt in 2010 truck from terminal
• Acquired by Nexa in 2004 • Exports to foreign markets: loaded into
Uses the Roast-Leach-Electrowin technology containers and transported by truck from
terminal to the port of Callao
• Main refined zinc products include SHG, CGG, Jumbo and zinc alloy
• Other products include sulfuric acid, silver concentrate, copper cement and cadmium
sticks
Distance CJM – Callao 37km
Metallic Zinc Production1 Source of Concentrate (%) Sales Breakdown (%)
(Zn in kt) (2016) (2016)
Atacocha
327 330 334
Nexa Africa Latin America El Porvenir
287 Asia 6% (Including
Mines
38.5% 8% Mexico)
32% Callao CAJAMARQUILLA
International
Traders Lima
8%
143 United States
and Canada Cerro Lindo
Third 20%
14A 15A 16A H1 2017 Parties
Europe
61,5%
Actuals Annualized 26%
Source: Wood Mackenzie, Prospectus
1. Zinc contained in product volumes (metallic zinc); dotted box denotes annualized production by assuming H2 2017 production to be equal to H1 2017 production
34Asset Overview - Três Marias
Overview Location
Operating since 1969 Located in Minas Gerais
100% owned by VMZ • 230 km from Morro Agudo
Smelter is integrated with the Vazante and Morro Agudo mines • 260 km from Vazante
• Processes zinc silicate concentrate from Vazante
• 800 km from Rio de Janeiro
• Processes zinc sulfide concentrate from Morro Agudo, Milpo and 3rd party sources
Final product transported by truck to local
Uses Roast-Leach-Electrowin technology
customers and ports for export (Rio de Janeiro,
Current production capacity of 180 kt per year with plans to expand incrementally to 196 Sepetiba or Santos)
kt by 2021 (assuming organic growth only)
Principal refined zinc products: Metallic zinc (SHG, alloys, special alloys and Zamac) in
the form of jumbo and ingots and zinc oxide
Brasilia
Secondary production of cadmium briquetttes
Metallic Zinc Production1 Source of Concentrate (%) Sales Breakdown (%)
Morro Agudo (230 km)
(Zn in kt) (2016) (2016)
187 186 Third Party Secondary
172 178
Concentrate Feed Europe
2.9% 0.6% Africa 1% Vazante Tres Marias
8% (260 km)
Traders
12%
Vitoria
Juiz de Fora
(780 km)
(500 km)
93
14A 15A 16A H1 2017 Rio de Janeiro (800 km)
Nexa Mine Latin
Actuals Annualized
Concentrate America
96.5% 79% Santos/Sao Paulo (900 km)
Source: Wood Mackenzie, Prospectus
1. Zinc contained in product volumes (metallic zinc); dotted box denotes annualized production by assuming H2 2017 production to be equal to H1 2017 production
35Asset Overview - Juiz de Fora
Overview Location
Operating since 1980 Located in Minas Gerais
100% owned by Nexa, acquired in 2002 • ~190 km from Rio de Janeiro
Uses Roast-Leach-Electrowin and Waelz Kiln technologies Final product transported by truck to local
Current production capacity of 92 kt per year with plans to expand incrementally to 99 kt customers and ports for export (Rio de Janeiro,
per year Sepetiba or Santos)
Produces zinc from sulphide concentrates supplied by Nexa owned mines and third party
sources from Peru and secondary sources such as EAF dust, batteries (Waelz Kiln) and
brass oxide
Uses RLE technology to produce zinc in sheets
Main products include slab zinc, zinc alloy, zinc shot, sulfuric acid, sulfur dioxide, silver
concentrate and copper sulfate Brasilia
Metallic Zinc Production1 Source of Concentrate (%) Sales Breakdown (%)
(Zn in kt) (2016) (2016)
87 86 Tres Marias
81
74 Nexa Mine (500 km)
Secondary Feed Concentrate
18% 63% Traders
25%
Juiz de Fora Vitoria
Third (480 km)
Parties
43 19%
Latin
America
14A 15A 16A H1 2017
75%
Rio de Janeiro (190 km)
Actuals Annualized
Santos/Sao Paulo (500 km)
Source: Wood Mackenzie, Prospectus
1. Zinc contained in product volumes (metallic zinc); dotted box denotes annualized production by assuming H2 2017 production to be equal to H1 2017 production
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