Nexa Resources (NEXA) 12 Feb 212020 Q4 Earnings call transcript

Good morning, and welcome to Nexa Resources Fourth Quarter and Full Year 2020 Conference Call. [Operator Instructions]. The presenters on this call are Mr. Tito Martins, CEO of Nexa Resources; Mr. Rodrigo Menck, CFO of Nexa Resources; and Ms. Investor of Head Varella, Relations. Roberta event Please recorded. being note, this is conference to Mr. I like the over would now turn to Tito Martins. Please go ahead.

I Nexa's Thank you, for conference loved another Thanks about safe be and results afternoon, good and healthy. call. ones earnings Today, remain and good joining for morning, us and hope your you talking we'll everyone. our in and have begin the Slide X, to resumed fourth let's our In after shutdown Please, presentation. move the quarter we and period. XXXX. full challenging an operations our unprecedented we safely year will scenario, of mandatory where

in additional to turn X. strongly the social were will programs. with stability, and and Sales we context, we normal generating also XXXX, differentiated, of are remotely. dividend adapt of be mitigate to recovered reinforced to reduction performance all program. protocols operational payment and on continued financial of March. Besides, shareholders. plurality realized our In safety year, build to efforts this our how In to estimate the ourselves remain and have cash a stakeholders. our to announce half and COVID-XX. in the value programs. although In We capital Our guidance Therefore, based was of these pleased Nexa $XX strengthened to our virus balance employees our Nexa protocols still to Slide future XXXX, production environmental to health of have achieved. and performance Please we cost expected at we progress We will flow our learning additional part spread million sheet projects. next Way from from business and stronger-than-expected, model, resulted implement Way the our XXXX, working returning inclusion and first cost-efficient were continue new of our our in operations the for We able maintain sustainable least a are rapidly to a commitment

commitment mentioned in a and As in program. that plurality a mind the letter with prioritizing women Nexa signed participation expand sector. are we woman of to before, our strengthen the In XXXX, aims

tailings continued we our We improve websites transparency energy management also have created dams on to and to tailings maintenance. our have improve

continued of our of economic communities. collaborate social the terms In commitment, life Nexa and to our quality development host of

Moving to X. next the slide, Slide

the As shows projects Aripuanã in in more development pipeline. ahead. our I you project is can Slide will discuss see, our and of it X details

copper have optimization detailed advance about been Since financials. of to the phases back continued in and concerned and Engineering are risk Shalipayco expect a line of maturity. and disciplined The studies allocation. subject mitigate projects at projects to and Because engineering our And in of our its to the prefeasibility execution. we with that, very further to study different beginning our Our is remain hold. we XXXX, time COVID-XX on before continuous of execution and Puka evaluation outbreak, proceeding in the Magistral portfolio approval progress. at capital opportunities have of COVID-XX project its

as resumed were the of activities completed third exploration Regarding in quarter and Hilarion were planned. 'XX

Bonsucesso integration smelters and program, drill exploration For life towards the year. Agudo, of area. we reinforced is have mine Brazil, the of continuity fourth we'll XXXX, focus of mines Bonsucesso our in south studies the resumed curve. the of the of been Morro expected extend earlier quarter. engineering to this of And resumed testing activities have the mineralization In the in on our the project

X, Slide to now please. Turning

the the the project, in cost. third target drilling XX response continue record drillings. of on-site projects development impaired completion In And explorational operational deliver away. of In our in Babaçu mining we be the XXXX, XXXX. move is of mining XXX,XXX concentrate in of Smelt fourth of acquired exposure procurement curve, explorational but team operation cash approval XXXX, we right plan zinc we Based mining current easily life Since comment its of Here, Please advance long-life to for exploration continued to at invested 'XX, XXXX, to years. will million was is our confirming could either mineralization. readiness conversion, Northwest. I world, of drilling new In quartile plan. were zinc beyond estimate Mechanical of we and in activities with year. The works will campaigns, it engineering, quarter Construction cash completed. of of equivalent. the the on suspended, continue at expected extension and we project, is cash a extended the start fourth in The we CapEx and on extension should $XXX XX% to temporarily stopes few by a and adding meters we our We our on quarter, reinforces project mining Aripuanã production production, costs. have in believe slide. Aripuanã Northwest cost stats development. underdeveloped will this X,XXX of next integration, and around alone construction, decreasing to $XXX the to the drilling something average in progress resumed in end was mineral be the tested the December. quarter be updated continue the second Babaçu track beginning one of the the to cost to we estimate our tonnes and with exploratory and million advance. And third-party Aripuanã reached the competitive of COVID-XX, believe physical reduce Based in of resources considering mine the the drilling overall, The to the start. currently believe our

to who Varella, Head will our Roberta Now comment Investor please. would like Roberta, I results. pass of our to Relations,

revenue million move expenses 'XX lower and quarter million, X. of copper measures. EBITDA, revenue Adjusted period dollar by a was performance mainly driven lower XX% the let's compared EBITDA The zinc the solid same Slide $XX left, on costs prices $X our stood in operating a to the mineral everyone. and Beginning XX% in with of quarter with appreciation to effect billion, main In Please, consolidated of decrease fourth half Brazilian to to chart factors year-over-year. XXXX, first lower and $XXX from increasing and Good operations to net and dollar U.S. were Adjusted The second morning, higher The at against that prices. project by drivers. net the positive up by The zinc related real Thank in lower you, contributed expenses, positive zinc and increased ago, evaluation million real the COVID-XX-related product compared price exploration was appreciation and impact higher the XXXX. Brazilian impact. fourth costs lead against had however, driven U.S. the due this Tito. million. $XX XX% a main XXXX, were year, year ever performance net your volumes prices also $XXX positive mainly by in approximately down had contribution.

our and metal Slides due XXXX, On comment we lower by stood in In slide, totaled million quarter million XXXX. Net results. exploration from in lead adjusted decrease adjusted $XXX XXXX, lower the Brazil. to segment's was our at compared zinc in by with average mining in corporate the was decrease and on operations and 'XX, temporary fourth On volume $XX project further and and solid revenue $XXX affected offset better operating production segment performance. performance the will XX% the EBITDA our XX mineral by we in million, Peru, $XXX XX, evaluation in operational discuss costs EBITDA mainly our which mines suspension due to details next net million, prices quarter down higher the expenses. prices, explained strongly increase mainly of fourth In of recovering in revenue and year-over-year, will and partially

As factors TCs, mineral project effect by the impact with million, costs by volume had were the positive as against impact variation dollar, and decrease the real of U.S. the $XX an evaluation such These lower in negative factors, expenses. XX, million. of and from lower depreciation prices the corporate and a partially in decrease on exploration offset you Brazilian can higher and $XXX operating see followed market-related Slide

In per pound, $X.XX terms XX% of affected cash positively costs, consolidated by mining cash costs. lower to costs XXXX in operating by decreased

forecasted our to average, Moving XXXX. next increase on start-up to range, is on the slide. equivalent At of slide, On guidance will X-year in zinc production X% we by midpoint production Aripuanã metal of the driven mostly the comment this guidance.

XXXX production and For after estimated XXXX, XXXX increase XXXX. from zinc of Aripuanã by X% X% to for hump-up, an addition is over

grade head efforts in replace increase we're by second XXXX and to estimated Exploration is production half decrease forecasted zinc mine. decrease we XXXX, the to Cerro during a reserves Cerro driven zinc the our resources. mineral maintain primarily and activities Lindo Lindo, resuming of and For in

of volumes initiatives and better offset mine prices benchmark in also temporary in terms should cost and we of to estimate higher restrictions. and forecast, driven per development by costs as mining place. cost, Peru after which lower remain infrastructure In pound of XXXX, cash reduction the $X.XX by-product average higher in cash the credits, compared Cost XXXX we TCs, shutdown normalization

XXXX, stood the million, Turning 'XX, to by explained mainly smelting depreciation stood of up corporate from adjusted On our Brazilian XXXX, higher XX% at million, $XX In lower XXXX. quarter from the XX, fourth segment $XXX fourth discuss operational currency. XX% XX and we expenses quarter slide. Slides In up the next EBITDA results. TCs, adjusted EBITDA at and

pandemic, top Our the quarter especially of down, affected second revenue by in net went XXXX.

period decrease adjusted charges, changes partially see corporate As price in quotation on higher can decrease you in prices energy of offset by in mainly respect expenses. treatment prices adjustments, due improvement and the to market EBITDA in lower were by driven mix the and Slide was costs silicate higher which operating XX,

of smelting cash XX% to and TCs $X.XX positively in cost In operating costs, higher by pound, per by lower costs. terms decreased XXXX affected cash consolidated

segment the XXXX, sales to the on increase volume we run X% guidance. XX. at Turning to benefit this normal from for continue slide, expect will Metal our smelters guidance operational is of range at utilization and Slide smelting XXXX. in XXXX will we rates. will estimated year to comment performance In from On our improved midpoint

estimated sales XXXX XXXX metal X,XXX tonnes to XXXX. and volumes XXXX, stable increase remain in For over over to

more I average prices, should call of XXXX in information offset cash estimate partially initiatives. provide sheet. reduction cash increasing now of we compared which by the over be TCs Menck, will our cost we turn please. a smelting higher $X.XX raw terms about benchmark XXXX as detailed Menck, costs, Rodrigo and cost pound who per CFO, will balance forecast our to to In lower material costs, metal

and Good afternoon, morning, everyone. am XX. I Roberta. Slide you, on Thank good now

and EBITDA historical discuss financial smelting margin our EBITDA would like we to our Before I for performance, the present segment.

As treatment by smelter you and and changing margins the in mainly stable, were prices, changes zinc despite which XXXX charges 'XX operational margins in costs. means can smelter in affected see, relatively are

applied despite costs. analysis being we in reducing we bring increased our and know, much on We based may the efforts third-party our and X but importance this and the which strategic benchmark also in fixed the suppliers you purchases reflects delivered Analyzing 'XX. concentrate higher changed only average XXXX having not TC, our TC integrated Also, mainly margin. smelters As from strong the zinc portfolio. for has reinforce digits our to X-year our and operations. in price, of This benchmark metal ongoing year the TC, not wanted of integrated for performance, to volatility TCs on is from smelting XXXX mining XXXX,

of balance to we next was extended and strong, to debt our with liquidity Turning of profile. sheet our the slide. report continue XX, as Slide which left demonstrated million. the available includes credit undrawn end revolving facility liquidity upper graph, On healthy remains the XXXX, $X.X current our billion, a By in $XXX

challenges the faced the we of overcome the in pandemic. beginning have We

loan revolving credit of half As our our liquidity we through proceeds April. managed during in about breakdown March was $XXX facility, side category we to XXXX. million of we a finally, BNDES credit debt issued currency cash million. the export shown in slide. of left the the bond lower from The $XXX on quarter amount $XX agreement Then notes we with the recall, our by proactively XXXX million additional in down $XXX June. debt the available repaid which balance the million the partially and raising and drill drew down And of by total position fourth approximately first We of added from

X.X As average of of XX, our December debt the maturity total years. was

of quarter, improved On our operations results generation. the with see net decrease the and right cash side, debt compared the we previous reflecting

net and to higher the net by debt. adjusted to debt Our as a EBITDA lower decreased EBITDA leverage X.XXx of measured ratio also adjusted result

on COVID-XX have and to million in Slide to with and our we investment. in $XX response we below Now project our million operate ongoing maintain preserving accrued of XXXX, to In Consequently, moving credits CapEx, tax on we in outbreak the essential decreased $XXX Aripuanã total focus investments cash, to our our XX. The historical amounted invested to HSE's the we investment, total expenses, CapEx. CapEx in Sustaining investments XX% $XXX XXXX $XXX million million. $XXX only to amounted to million, including as levels safely. amounted respect

business. levels million. For $XXX and expect XXXX, to million resume our developing order of we a to to investment invest We estimate Aripuanã, sustaining in to $XXX and building to expect CapEx continue similar long-term HSE pre-pandemic continue sustainable we

million. project evaluation XXXX, exploration mineral invested $XX we of terms In in and

will we and resume our our replace increase estimate of mineral efforts resources, our we We continue investment to and exploration $XX investments mineral business project supporting million. here will a evaluation total reserves as For and growth. XXXX,

we million in and invest to invest to our local and addition, services, in We million In social technology employ contract education, their try expect training, contribute development. we to communities. supporting and $X economic and host $XX

next cash to slide, Slide the this On generation. we free Nexa's Turning XX. slide, now present flow

During which last $XXX we as $XX during paid further partially sustaining offset million terms Describing flow of similar and which working CapEx, million we adjusted quarter, CapEx, an $XXX projects fourth a to capital, generated increased payment supplier EBITDA, starting was cash and and includes expansion million. from the Still, amounted taxes. has it our in projects Nexa of interest had by quarter, result to expansion million gain payable, $XX generated mainly in quarter. million. $XXX average our the tax mainly Nonsustaining before income Aripuanã, the

resulting of we million, $XXX flow the of had from offset the net partially million. loans $XX $XX other expenses, and in during the investments million final quarter, of cash positive by Finally, impact a financial nonoperational generation

paid in CapEx the mainly $XXX and in moving on Slide partially XX. free generated present $XXX Nexa sustaining Still, before $XX million $XXX amounted of starting million projects, cash On which to $XXX year. includes XXXX, by from our from to gains, Nexa's cash million EBITDA, interest In taxes. expansion CapEx, of has offset another flow full million capital $XX of for projects $XXX working we Aripuanã generation Now expansion generated million slide, million. this we nonsustaining we generated million, flow

the mentioned by Finally, during call I the proactively now year, the we Tito. debt, as I additional final combined for generation raising resulting please. earlier, managed position to generated our full cash Tito, hand million operations, will from the cash the $XXX to flow year. which healthy back our liquidity in

you, to Thank XX. move Menck. Please Slide

some make comments the Here, market we fundamentals. will about

investments China, to XXXX. infrastructure down in were dollar. activity prices to strong This weaker of demand the compared zinc due by of XX% quarter quarter, increase a the contribute to whose economic and U.S. mostly third in zinc quarter by to driven During up XX% XXXX, fourth was from continue

fundamentals, America in has In quarter the improved it most by the Asia. Latin current TCs. have lines can been to activities in level smelters, sufficient see We in clearly market concentrate of of second terms XXXX. demand particularly spot the the and not meet China supply resumed from the But of

after recovered been the our pent-up metal a recovered, of second and decrease in stimulus, zinc home quarter replenishment of market, demand by demand, particularly XXXX. terms mix Demand of starts fiscal has the In driven Latam, in Brazil. mostly

previous and demand balance balance long-term the forecasted, that meaning update be in than remain market addition, should the increase lower tight. estimated between should supply shows In supply

remain view, have levels. at prices the fundamentals higher to in So metal our

and we growth. XX. outlook performance and increase dollar levels, performance prices Similar this the to a the copper of lead, to slide, XXXX. Moving other driven the of present silver by had metals, third global a quarter U.S. the Slide weaker positive a from quarter strong in was for On in price, metal fourth zinc

Obviously, For should impact the a the risk remains vaccination. the to to positive, including spread, virus continue COVID-XX The to stimulus metal to responded adopt scenario, its how and U.S. to evaluate development have also performance XXXX, this barriers, worldwide we the will packages. economic economies mitigate and continue outlook base prices. effect is dollar given measures

our to slide. now last Moving

a the with The and delivered the of outbreak. of have contribution the global COVID-XX our our result, and team challenges program and performance restrictions of operational strong the the excellence We Way by overcoming of half second to demonstrates year Nexa transform. operational commitment the imposed in their enthusiasts the resilience business,

in value risk impact continue government period a slide, recently the recover. from quarantine mid-February. will suspended. As mentioned evaluate that COVID-XX chain. in remain The smelting previous we new our last year, demand the not the to will Different and factor, our my operations remains products continue should country last were for a Peruvian announced that to and I until confident mining in We

Next, discipline ourselves have projects, future. all for let's time, We will long-term priority its have of and and generate Q&A pipeline and the mine capital believe attractive preparing the maintain an of you to we building value, been on session. your cost move Thank we the on to control.

Instructions]. [Operator

is Our Morgan from from De Carlos first Alba Stanley. question

clarify Tito, question the little you Nexa bit is a have, Way. The can I just on if

$XXX to $XXX addition $XXX EBITDA the by identified that Or $XX in which press $XX XXXX. estimate this COVID-XX, included? So mentioned this of measures this XXXX? XXXX. this also similar full end benefit you believe million $XXX end of or by positively of you prior So throughout million is will more XXXX? or point annualized And XXXX $XXX almost benefit in -- by that were was more a you incremental? impacted Is guys is your you million million release I the give think million million in the additional post XXXX. in for the the see Is your in then initiatives in million And

question. very Thank what we Carlos, good That's why before. disclosed question. this to explained The Nexa and was be breakdown. to needs speaking your here. this be for with a is consistent have It's Rodrigo you Way

was $XXX back million So year, that already we million, of the as the the we from forecast middle captured disclosed that one So of paid our we that XXXX. have okay? $XX have in the fees in the

informed additional million. and for connecting are -- to quarter, EBITDA additional informed we cause taking million might had officially approximately to have of us in was $X call we was by will which After officially to initiatives, this this our of that. million. with $XXX initiatives million was this the second identified the So -- group program new G&A the $XX to And $XX market ended up generate above

So coming million which of million are of of until question. our year within XXXX, out the $XXX -- already in results is back Yes, the your XXXX. to $XX the end capture within

And EBITDA. So we'll are $XX $XX our $XX presented million. have they moreover, by accounts our aside million have the within million, will from additional additional also

You're in question. addressed hope your understanding correct have that. I I

good. mostly million happen This half SG&A, year? increase the very the in $XX Will this this it And in SG&A. in Or $X first is the temporary to Yes. we how should million the first quarter? allocate of

the year, performance depend half the it will on -- depend amount of of will First the initiatives. the

in half of So the they to are the year. forecasted first happen

Let here, speaking. It's for add here Carlos, me your something Tito thanks question.

the that important know programs. Way's I Nexa ongoing think it's to

being we market speak the make our if fees can see that. generate pay. of want about give meaning we And generating market it chance is generated. for reductions to have being in guidance -- -- would the more cutting, to actually some productivity happens, cost created what and increasing and more cost action or course, Clearly, that expenses with we course, performance. initiatives will of naturally, it So a to And --

just you And TCs XXXX? Understood. final for on right. All question my can if is expectation comment then your in

a trillion It's question. We've $X got nobody.

I What have you.

This made about in last XXXX, absolutely prediction. one right. TC conference, myself. way was And in everybody you that year I We we're was tell Asia. what, a around. surprised year below and I'll the TCs going is, some almost I some $XXX this X in was the very I with is here was asking case. actually in still point low, reached is on in What's that mid are of

the it's to probably to something huge right. $XXX, drop will are very we guessing because come a $XXX, comes We say but $XXX around that -- from see benchmark difficult

be you, So it's difficult. precise very as -- but to very difficult

[Operator Bank of Tanners Instructions]. Timna The America. question from is next from

Just million X the was on. year. regarding million prior That wanted One from I of to $XX dividend the March. for $XX follow-up payment to compares

your talk think And balance the to to just sheet. So improved talking also thinking And that's and could -- you're hoping seem better, you regarding second given little about just right about on about then question bit capital you be the calculated market how that the wanted condition get allocation. now. how that is more have projects you the a

going them, there's looks a like of it So on hold. number them through

restart? you looking So what does are for to it What take decisions? to those make

paying Okay. Well, this payment, dividend a as we're take Rodrigo Thank bit you on million. today, is question. for of $XX yield. yields, X.X% look Dividend of Timna, if above dividend a your here. the you

was If to this we the perspective million year. in is been a approved X.X% COVID our It approved January, the moment. was you dividend at last year, last remember are the we And beginning define was one, very we for that, were had course, what dividend year, and year. have good the recognizing throughout When dividends we increase consistently its effect. This of -- proposed paying of an here year, $XX right?

year. have policy minimum managing We yield were a dividend of year successful our levels although had in profitable end to challenging the we our pursued and And year, to cost dividend be by according we the X%. a last be of

us. good year ahead We have a of

the We in well are performing operations.

our of Aripuanã. able project we our level are back and being hold are well to performing cost We revised

That's consistent is this of So we amount. origin the level a the dividend. of believe

Okay. Great.

clear? it Is

you Yes. wouldn't then if yes, projects, on that's the And mind, clear.

quarter of we as -- 'XX, the building. we up sometime should between production Aripuanã, should are study, our FELX, Yes. of last we that Magistral start in plans following are Timna, before not assume Tito for Aripuanã, we goes What year, Magistral. the this Magistral. finishing expected, case in we in quarter We be the would year will here. first we past, the everything we have? 'XX. in are new do built. we In have pipeline, starting idea the since In project Stage Aripuanã. a the is The be that ending had we the said Magistral one we the be finished feasibility and the

it only a course, Of we finish Aripuanã. after with good potential return comes

So and with have come time to de-risk we starting finish up with will to to on not, project some much well possible this 'XX. along the 'XX -- time 'XX, the as in sorry or it as working probably up keep -- actually to execute decision,

The we other drilling still projects we Hilarion. have, are

are currently between 'XX very and that we situation today, of we the being Hilarion projects stability with We should market year cash before should By in be some to optimistic, asset the be way, see and again, return probably invest the the and we'll actually stopped new to more projects conditions, to with seen our back because have being stable, those projects, 'XX. the we we market. will -- last more And avoid zinc we confident Peru So as development lockdown. keeping the after it two, maybe future. facing in were generation sometime right? in in we were production my to conservative the future the return stability. we the We In very are also these replace that other for in Puka drilling. Shalipayco, view, assure

price regions it The ability Yes. the been stability sounds you're of what has of there. in stability the or like to It talking like operate -- seems copper about your maybe COVID-XX... the

as Zinc but on well. as only, copper. zinc Not the Not copper well.

Right. Right.

the is but factors, there, So looking I guess? for other price you're

again. say sorry, I'm

I is was saying The the right? price the positive. has price commodity been accommodating, of

it or the like looks ability evidence given operate COVID-XX. just evidence you more to want more So of

Exactly Exactly. Exactly that. that.

Lockdowns by operating are this we normal in factors, we the imposed like things us COVID anymore, impacted have exogenous levels government about uncertainty has or and see, right? of municipalities employees. always you the today, As everywhere. contamination not but contractors and

more see to good a That's as well. need we normal So more -- life.

question McConvey The from next Instructions]. Investments. [Operator Rossport from Daniel is

it. components a have and I three guess, COVID to I question,

First, you of much is you there -- -- when mean I a way hangovers there that catch-ups, is how in from the what from this, and for resources, in the skills, your operations, it's in cetera, what border, stripping Is but by the whether the of in right right across XXXX. the in in smelting mining difficult result your XXXX? as side was your a people COVID, getting technical both the side et of both had Brazil XXXX? did Peru. different there What is there and component you doing terms that anything Second crisis is, of resulting was result factor maintenance And actually what's terms of component, the third probably in the in in forecast that is then increases? actually for you're a as catch-ups, much answered some forecast now more productivity

you the your up? Thank questions. to do Menck, first for one the guidance? The about want catch you answer

as in will protocols you pretty considering questions. much actually, year be year for health your About that the whole please. yes, protocols hangover, thank the we is continuous Yes, place, these have we the estimate for you Daniel, year. for called maintained cost it, have covering throughout the that for this the

So in broad those of for not the protocols to reduction vaccination. we considering example, any due, circumstance, are

additional costs. these are the So

of on costs course I back operational the in the to the believe, we business. the of ramp-up we normal terms the had side, the middle came of year, In once

the that from some is were postpone there only CapEx actually to comes add and would -- delay we issues facing of The thing with that. XXXX is the that the -- I we given to COVID. had

along -- performed was we have and year, Okay. this be sustaining Some delayed, that CapEx we will performing right?

with of and operating. lots protocols, is how and And we have contractors. We the of mainly example, And second out in are sites. deputies, different Peru to main in conditions the the Brazil about concern say, our operations, has either question and to of Regarding in do depending sale would for employees terms we set-up need where is, we I those concern our your and protocols. follow

So people days. will we for And XX -- stay every home shipped have employees X at at home the stay days.

we there They test the X come test to they When days, have at have they them. So to are site. are them. -- in, after we

So this We is a operation. returning were last reach up big to available had less when that concern, operations. to ramping have to our we year people

give take were because remember the example, able And XXX people. of beginning were certainly we only to Just take an in August, we to tested to X,XXX other the supposed XXX positive. the site I to

would operations impact I the is, this of and call, of So terms COVID. major the have in concern we

The third we differently, question, our anything are doing are still we yes, office. in home is offices, there

have everybody we We of to will offices us. not have being regular home from returning that to team to already very the become We It should to but the part it system. a pandemic. regular time used work have time, not ordinary able was after from decided the for

estate with the we at trips, some saving we're be end day, will some we the the are in sales. be, We travel, And will of costs. there looking also way real improvements at are avoiding -- we

idea is under this much, time. If don't you have some to the how still going ask yet learns bring we we we don't number to pandemic, this have the we're me -- but beyond operate generate because during

kind a getting if the pretty it's things kind XXX it's surprising guess constraints year, things weren't whatever it are site smoothly. to was, had impressive all versus that of the that this of that catch-up dropped, year some last with I X,XXX, recovering but of employees number

a Stanley. The Alba de next follow-up from from Carlos Morgan is question

obviously, given fiber let Tito copper Rodrigo, so where alone are and thing. and and prices

or would another If year? your you is a special paying the generation cash throughout flow consider dividend strong, dividend

good question, Good question.

our a It's states that currently a dividend once pay year. question, we great policy but

at this forecast anything in we point payment to are pay not addition in now. that to announcing do the we So time

guys hopefully, practice top you saw Well, right. the of guidance the All your delivered in and on year. later a end you dividend with

want we throughout still level prices, -- guess have my me to And with return We -- of guess we And that cash. raised assume able My produce let's to debt year, to higher deal to because here. still price indebtedness. do more have we a the we at level is, last the remain and here, planned. are do generate as of let something of the the have year course, right? We was

We have before it.

be priority it. at look and the debt So would to manage

investment. levels we leverage the the have of conversion, before that In

next The Orest is Wowkodaw from Scotiabank. from question

it's grow I be that 'XX. trying in on most my I'm just wanted that asset portfolio. of I on Lindo. think going to the to XXXX, going biggest about looks XXXX your like a if there's ask focus and Based extend reserves, important In kind you deplete view, those Cerro reserves to mine life. around to wondering mine to it's

that going sort next kind of of And have over is of couple to focus the years? what

resources there, exactly throughput Lindo made to and production So seen your here, generate parallel, you're the to expand increase the have grades more investing same is of we Orest. question, been thanks significant the available production of number the this we we've money which -- main Yes, levels we've investing our In Cerro to have had reserves in years, the few drilling I for right. but along been in before. the there. don't last drop amount difficult a asset. We've because a

between or as need X back, was be mentioned, by are look of time to life price. mine. profile forecasted we so you you maybe years forecasting ago, had mine similar years. And X X today, years that of to X a X of of and If we Life

enhance availability increase mine. work proven has efforts we results So of our of keeping the to potential been to and the producing some room are life because to

current to here... significant see upside couple as can Or on this mine? years? actually add is see say Or think can a maybe you of a -- you you about this do you more you we Do that, life maybe should do the

has there with about do there right? difficulty around, drilling the what have you. the all -- your of of is done So we have the to we to increase ahead part mine difficulty have to knowledge need you The you develop

two types we drillings. actually, -- So of we performed

external We drillings, of that us gives of the less mine, have resource. -- which route more drilling this the possibility mine. identify we the have growth of the the to follows And all

expects area rich in it's but given because years, grade more our view some we -- face big showed in up the my it's to longer related is than a mine, production and in years, So keep Cerro less XX challenge will of Lindo anybody same to drop. run maybe between will capacity levels area the the generate of X with to the be [indiscernible],

more queue. question-and-answer [Operator Instructions]. are concludes There no session. in the This questions our

go remarks. Martin, hand over will please we Now his for final to Mr. Tito ahead.

Thank you. I would like to thank...

Sir?

Menck. Oh,

Okay. Go here. comment ahead. Make a

X% one Just cash the cash I about impact. quarter increased to specific cost X against above clarify was It opportunity I'll cash it which than which initial and about cost, the the question, second. take to the estimate. didn't price mildly gave above. was for the zinc And costs. we something proportionally on would guidance One increase, most year segment the factor higher the our less say, year XX% much smelting of although as that the a the we the impacts is that is year, have

pound end were per was we price estimating the and the $X.XX So zinc $X.XX pound. per at

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the problems the XXXX, Even a it's of also that the we with the we saying of believe lockdown and of XXXX of it's price faced, -- but year and the the course, in first on year Just analysts. a main ends based that the was that reduction in cost up being helped mostly We reasons a second through half year. difference were, us from lot, because of very of surprising price, a XXXX for productivity. year went -- what for half than the better view our some the our some good Peru,

and is results We Way are that showing the for bringing working Nexa us.

are more on. for we happening. here. healthy happy move we see safe. let's a And you confident COVID are Thank And and I very hope it impacting everybody, We see stable have you to efficient 'XX. should year that being and the even in still having hopefully,

have you. 'XX. better Bye, Let's a bye. Thank

The you has conference attending for now concluded. today's Thank presentation.

now may You disconnect.