Nexa Resources S.A. (NYSE:NEXA) Q3 2023 Earnings Call Transcript

Ignacio Rosado: Yes, so as Leonardo Coelho was mentioning, we expect full capacity towards the end of the first quarter of next year and probably in those months we will reach also breakeven. Having said that, this is also the case because the CapEx that we are investing in Aripuanã is related to changing the pumps and installation of these pumps and it’s a higher CapEx. So this is affecting our breakeven costs but as we said in the presentation in the second quarter of next year we will be, we should be at break-even.

Rodrigo Cammarosano : Thanks, Ignacio. We have another question related to Aripuanã. It comes from [inaudible] Braga from Morgan Stanley. Are there any other bottlenecks for Aripuanã ramp up that the management can identify?

Ignacio Rosado: Yes, this is a very good question and I can say as a summary that Aripuanã has been very difficult to start the ram up because there were some flaws in the original design that also affected construction. So we had many small bottlenecks in some of the processes but today I would say the main exposure that we have is a flotation pumping system. So besides this we don’t see any other small bottlenecks, we might have some related to the ramp up, but this is the day today. But the replacing of the pumps in the flotation system is the one that is going to take us to full production towards the end of the first quarter of next year.

Rodrigo Cammarosano : Okay, so these are all the questions that we have. We go back to the moderator, please.

Operator: This concludes our question and answer session. Now I will hand over to Ignacio for his final remarks. Mr. Rosado, please go ahead.

Ignacio Rosado: Thank you. Thank you everyone for attending. As you can see, this is still a difficult quarter for us. As we were saying, we are committed to our financial discipline. We’re working on in many works streams to reduce the cost, to try to bring the CapEx down, and to make sure that it is up nice and running in the coming months. So thank you very much again for the time, and we look forward to providing you more color in the next quarter at the end of the year. Have a good day. Thank you.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.