Nexa Resources SA (NEXA) 2022 Q2 法說會逐字稿

Good morning, everyone, and welcome to the Nexa Resources Second Quarter 2022 Conference Call. (Operator Instructions) This event is being recorded and is also being broadcast via webcast and may be accessed through Nexa's Investor Relations website where the presentation is also available. (Operator Instructions)

大家早上好，歡迎參加 Nexa Resources 2022 年第二季度電話會議。 （操作員說明）本次活動正在錄製中，也正在通過網絡廣播進行廣播，可以通過 Nexa 的投資者關係網站訪問，該網站也提供演示文稿。 （操作員說明）

I would now like to turn the conference call over to Ms. Roberta Varella, Head of Investor Relations, for opening remarks. Please go ahead.

我現在想將電話會議轉交給投資者關係主管 Roberta Varella 女士做開幕致辭。請繼續。

Good day and good afternoon, everyone, and welcome to Nexa Resources Second Quarter 2022 Earnings Conference Call. Thanks for joining us today. During the call, we will be discussing the company's performance as per the earnings release that we issued yesterday. We encourage you to follow along with this on-screen presentation through the webcast.

大家好，大家好，歡迎參加 Nexa Resources 2022 年第二季度收益電話會議。感謝您今天加入我們。在電話會議期間，我們將根據我們昨天發布的收益報告討論公司的業績。我們鼓勵您通過網絡廣播跟隨這個屏幕上的演示。

Before we begin, I'd like to draw your attention to Slide #2, as you will be making forward-looking statements about our business, and we just ask that you refer to the disclaimer and the conditions surrounding those statements. It's now my pleasure to introduce our speakers. Joining us today is Ignacio Rosado, our CEO; Leonardo Coelho, our Senior Vice President of Mining; and Mrs. Claudia Torres, our Interim CFO.

在我們開始之前，我想提請您注意幻燈片 #2，因為您將對我們的業務做出前瞻性陳述，我們只是要求您參考免責聲明和圍繞這些陳述的條件。現在我很高興介紹我們的演講者。今天加入我們的是我們的首席執行官 Ignacio Rosado；我們的礦業高級副總裁 Leonardo Coelho；和我們的臨時首席財務官 Claudia Torres 夫人。

So now I will turn the call over to Ignacio for his comments. Ignacio, please go ahead.

所以現在我將把電話轉給 Ignacio 徵求他的意見。伊格納西奧，請繼續。

Thank you, Roberta, and thanks to everyone for joining us this morning. Please let's move now to Slide #3, where we will begin our presentation. We had a very strong performance in our operations in this quarter. As anticipated, mining production increased from the first quarter of this year, mainly due to the resumption of the Vazante mine to full production. As previously disclosed, Vazante was affected by heavy rainfall. The smelting business also performance and total metal production was up 15% quarter-over-quarter as a result of the higher supply of zinc in concentrate from Vazante in Brazil and the improved operational performance of Cajamarquilla in Peru after the temporary decrease in roaster utilization in March.

謝謝你，羅伯塔，也感謝大家今天早上加入我們。請讓我們現在轉到幻燈片#3，我們將在那裡開始我們的演示。我們在本季度的運營中表現非常出色。正如預期的那樣，採礦產量較今年第一季度有所增加，主要是由於 Vazante 礦山恢復全面生產。如前所述，瓦贊特受到強降雨的影響。冶煉業務也表現出色，金屬總產量環比增長 15%，原因是巴西 Vazante 的鋅精礦供應增加，以及秘魯 Cajamarquilla 在焙燒爐利用率暫時下降後改善了運營業績。行進。

Our solid operational performance combined with our efforts to mitigate inflationary cost pressures and with a positive effect on prices, generated a record high adjusted EBITDA and a strong operating cash flow. We are happy to announce that we are on track to meet our production, sales and investment guidance for the year. Our cash cost guidance, however, has been revised, and I will explain this in more detail in the upcoming slides. Aripuana ramp-up is progressing in accordance with our plan, and the first batch of copper in concentrate was delivered at the beginning of July. The exploration program in Aripuana also continued to progress, and we believe we will be able to increase its mineral resource at the end of the year. Our balance sheet continues to be strong with financial leverage decreasing to 1.3x from 1.5x in the previous quarter. Regarding ESG, we are close to finalizing our updated strategy, and we expect to disclose our new long-term goals during the coming months.

我們穩健的經營業績加上我們努力減輕通脹成本壓力並對價格產生積極影響，創造了創紀錄的高調整 EBITDA 和強勁的經營現金流。我們很高興地宣布，我們有望實現今年的生產、銷售和投資指導。但是，我們的現金成本指南已經過修訂，我將在接下來的幻燈片中更詳細地解釋這一點。 Aripuana 的增產正在按照我們的計劃進行，第一批精礦銅已於 7 月初交付。 Aripuana 的勘探計劃也在繼續推進，我們相信我們將能夠在年底增加其礦產資源。我們的資產負債表繼續強勁，財務槓桿率從上一季度的 1.5 倍降至 1.3 倍。在 ESG 方面，我們即將完成更新後的戰略，我們預計將在未來幾個月披露我們新的長期目標。

Now moving to the next slide. In Slide #4, you can see that zinc production in the second quarter decreased 3% year-over-year because of lower average head grade and treated ore volume. However, compared to the first quarter of this year, zinc production of 79,000 tons increased by 19%, mainly driven by higher treated ore volume and higher zinc grade. Average grade was positively affected by the increase in production from Vazante and at Cerro Lindo, treated ore volume recovered as expected, although organic material in some of our ore bodies remains a challenge. Following higher treated ore volume copper, lead and silver production in the second quarter increased by 39%, 14% and 16% from the first quarter of this year. For the upcoming quarters, we expect zinc and lead production to be similar to the second quarter, while copper and silver should be slightly lower. However, we believe we are on track to achieve from the mid to the upper range of the production guidance for all metals.

現在轉到下一張幻燈片。在幻燈片 #4 中，您可以看到第二季度的鋅產量同比下降 3%，原因是平均原礦品位和處理過的礦石量較低。不過，與今年一季度相比，鋅產量7.9萬噸增長了19%，主要受處理礦石量增加和鋅品位提高的推動。平均品位受到 Vazante 和 Cerro Lindo 產量增加的積極影響，處理後的礦石量按預期恢復，儘管我們一些礦體中的有機物質仍然是一個挑戰。繼處理礦石量增加後，第二季度的銅、鉛和銀產量比今年第一季度分別增長了 39%、14% 和 16%。對於接下來的幾個季度，我們預計鋅和鉛的產量將與第二季度相似，而銅和銀的產量應該會略低。然而，我們相信我們有望實現所有金屬生產指導的中上段。

Moving now to the next slide. In Slide #5, run of mine mining cost in the second quarter was $43 per ton compared to $38 per ton in the second quarter of last year, reflecting inflationary pressures on costs and lower ore throughput. Compared to the first quarter of this year, run of mine mining cash costs decreased by 5% with improved volumes due to the Vazante resumption, returned to operational stability at Cerro Lindo and our cost control initiatives. Mining cash cost in the quarter decreased by 14% compared to the prior quarter, which was mainly explained by higher zinc volume and by-products credits and lower operating costs, which were partially offset by higher TCs and the Brazilian real appreciation against the U.S. dollar.

現在轉到下一張幻燈片。在幻燈片 #5 中，第二季度的礦山開採成本為每噸 43 美元，而去年第二季度為每噸 38 美元，這反映了成本和礦石吞吐量下降的通脹壓力。與今年第一季度相比，由於 Vazante 恢復運營、Cerro Lindo 恢復運營穩定性以及我們的成本控制舉措，礦場採礦現金成本下降了 5%，數量有所增加。本季度的採礦現金成本與上一季度相比下降了 14%，這主要是由於較高的鋅產量和副產品信貸以及較低的運營成本，這部分被較高的 TC 和巴西雷亞爾兌美元升值所抵消.

Now moving to the smelting segment in Slide #6. In Slide 6, in the second quarter, metal sales totaled 152,000 tons, down 3% year-over-year, but up 13% quarter-over-quarter following higher production in Peru and in Brazil. In Brazil, smelter production increased quarter-over-quarter because of the improved zinc in concentrate supply from the Vazante mine, in addition to a better performance in the Tres Marias smelter after its roaster maintenance. In Peru, production increased because, as mentioned before, at the end of the first quarter, there was a temporary decrease in the roaster utilization in Cajamarquilla due to the maintenance activities. For the upcoming quarters, smelter production is expected to remain stable compared to the second quarter of this year.

現在轉到幻燈片 #6 中的冶煉部分。在幻燈片 6 中，第二季度金屬銷量總計 152,000 噸，同比下降 3%，但由於秘魯和巴西的產量增加，環比增長 13%。在巴西，冶煉廠產量環比增長，原因是 Vazante 礦精礦供應的鋅有所改善，此外 Tres Marias 冶煉廠在焙燒爐維護後表現更好。在秘魯，產量增加是因為，如前所述，在第一季度末，由於維護活動，Cajamarquilla 的烘焙機利用率暫時下降。未來幾個季度，冶煉廠產量預計將與今年第二季度相比保持穩定。

As all sites are operating at full capacity, sales are expected to follow higher production volume and our 2022 guidance remains unchanged. Our smelting cash cost in the second quarter increased by 35% compared to the same period of last year, mainly driven by higher zinc prices. Compared to the first quarter of this year, a smelting cash cost increased by 8%, and this factor was due to higher operating and maintenance costs, lower by product prices following the market trend and the Brazilian real appreciation. These factors were partially offset by higher volumes. Conversion costs in the second quarter was $0.29 per pound compared to the $0.25 per pound in the first quarter of this year. This increase is mainly driven by the increase in energy prices and other variable costs.

由於所有站點都在滿負荷運轉，預計銷量將隨著產量的增加而增加，我們的 2022 年指導保持不變。我們二季度的冶煉現金成本比去年同期增加了 35%，主要是受鋅價上漲的推動。與今年第一季度相比，冶煉現金成本增加了8%，這主要是由於運營和維護成本增加、產品價格跟隨市場趨勢而降低以及巴西雷亞爾升值所致。這些因素被較高的交易量部分抵消。第二季度的轉換成本為每磅 0.29 美元，而今年第一季度為每磅 0.25 美元。這一增長主要是由能源價格和其他可變成本的上漲推動的。

Now moving to Slide #7. Growing concerns about the global recession have put downward pressures on commodities. And base metals had a significant decrease in prices. We also believe that inflationary cost pressures could persist in the second half of this year. And as a result, we have updated our cash cost guidance for both segments. Full year mining cash costs have increased to $0.28 per pound, given year-to-date performance and forecasts for lower by-product metal prices. Full year smelting cash costs have been revised to $1.37 per pound from $1.15 per pound, primarily driven by higher zinc prices, higher energy costs as well as higher fuel and consumable prices.

現在轉到幻燈片 #7。對全球經濟衰退的擔憂日益加劇，給大宗商品帶來了下行壓力。賤金屬價格大幅下跌。我們還認為，通脹成本壓力可能會在今年下半年持續存在。因此，我們更新了這兩個部門的現金成本指導。鑑於年初至今的表現和對副產品金屬價格下降的預測，全年採礦現金成本已增加到每磅 0.28 美元。全年冶煉現金成本已從每磅 1.15 美元上修至每磅 1.37 美元，主要受鋅價上漲、能源成本上漲以及燃料和消耗品價格上漲的推動。

Now moving to the next slide to our Aripuana project. As announced in early July, the ramp-up activities at Aripuana Mine have safely started, and we are happy to confirm that the first batch of copper in concentrate was delivered at the beginning of the month. The ramp-up is progressing as planned, and we are focused on a steadily increasing the plant throughput rate. The milling capacity utilization rate is expected to reach an average of 30% to 40% in the third quarter of this year and 70% to 80% by December of this year. Hence, commercial production is expected in the fourth quarter.

現在轉到我們的 Aripuana 項目的下一張幻燈片。正如 7 月初宣布的那樣，Aripuana 礦的增產活動已安全開始，我們很高興確認第一批精礦銅已於本月初交付。產能提升正在按計劃進行，我們專注於穩步提高工廠的生產能力。預計今年三季度製粉產能利用率平均達到30%~40%，到今年12月達到70%~80%。因此，預計第四季度將進行商業生產。

At the end of June, there were approximately 670,000 tons of ore available in stockpiles, which is enough to cover 6 months of the estimated ramp-up period. Furthermore, the mine is already fully operational and underground mining activities are focused on developing and preparing new areas and increasing mineral reserves with our infill drilling campaigns. In the second quarter, we invested $27 million in Aripuana, totaling $54 million in the first half of this year, which include a negative effect of the Brazilian real appreciation against the U.S. dollar of $5 million. The total estimated CapEx for the project remains unchanged at $625 million.

截至 6 月底，約有 670,000 噸礦石可供庫存，足以滿足 6 個月的預計產能提升期。此外，該礦已經全面投入運營，地下採礦活動的重點是開發和準備新區域，並通過我們的加密鑽探活動增加礦產儲量。第二季度，我們在 Aripuana 投資了 2700 萬美元，今年上半年總計 5400 萬美元，其中包括巴西雷亞爾兌美元 500 萬美元升值的負面影響。該項目的總資本支出估計保持不變，為 6.25 億美元。

Now moving to the next slide, where I will give you an update on Aripuana's exploration program. In Aripuana, almost 16,000 meters of infill drilling were completed at Ambrex in the second quarter. No drilling activity was executed at Babacu as we decided to anticipate the infill drilling campaign at the Ambrex ore body to potentially increase our resources. The latest drill holes resulted indicated that the mineralization has been confirmed, we should support the conversion of inferred to indicated mineral resources. At a Babacu target, we have received excellent assay results, which confirm a high-grade mineralization zone as shown on the slide. For the third quarter, we expect to complete infill drilling at the Ambrex ore body and resume the exploratory program of the Babacu target.

現在轉到下一張幻燈片，我將在其中向您介紹 Aripuana 探索計劃的最新情況。在 Aripuana，第二季度在 Ambrex 完成了近 16,000 米的加密鑽井。 Babacu 沒有進行任何鑽探活動，因為我們決定預測 Ambrex 礦體的加密鑽探活動可能會增加我們的資源。最新鑽孔結果表明礦化已確定，應支持推斷礦產資源量轉為指示礦產資源。在 Babacu 靶區，我們收到了出色的化驗結果，證實了幻燈片上顯示的高品位礦化帶。第三季度，我們預計將完成 Ambrex 礦體的加密鑽探，並恢復 Babacu 目標的勘探計劃。

Now moving to the next slide to show our financial results. In Slide #10, I am pleased to report positive momentum for the second quarter of 2022, delivering a strong operating performance and sound financial results. Beginning with the chart on your upper left, total consolidated net revenues for the second quarter increased by 21% year-over-year, and this was mainly driven by higher LME prices. In the first half of this year, consolidated net revenues reached $1.6 billion versus $1.3 billion in the first half of last year, an increase of 20%.

現在轉到下一張幻燈片來展示我們的財務業績。在幻燈片 #10 中，我很高興地報告 2022 年第二季度的積極勢頭，實現了強勁的經營業績和穩健的財務業績。從左上角的圖表開始，第二季度的總合併淨收入同比增長 21%，這主要是受 LME 價格上漲的推動。今年上半年，綜合淨收入達到 16 億美元，比去年上半年的 13 億美元增長 20%。

In the second quarter of this year, consolidated adjusted EBITDA increased by 23% year-over-year. This performance is mainly explained by higher metal prices, changes in market prices in respect of quotation period adjustments and higher by-product sales. These positive factors were partially offset by preoperational expenses of the Aripuana project, inflationary pressures on operating costs, higher exploration investments, an increase in workers' profit sharing participation. Compared to the first quarter, adjusted EBITDA in the second quarter increased by 37%, mainly driven by higher volumes. In the first half of this year, consolidated adjusted EBITDA reached $494 million versus $413 million in the same period of last year.

今年第二季度，綜合調整後 EBITDA 同比增長 23%。這一表現主要是由於金屬價格上漲、市場價格因報價期調整而發生變化以及副產品銷售增加所致。這些積極因素被 Aripuana 項目的前期運營費用、運營成本的通脹壓力、更高的勘探投資、工人利潤分享參與的增加部分抵消。與第一季度相比，第二季度調整後的 EBITDA 增長了 37%，主要是由於銷量增加。今年上半年，綜合調整後 EBITDA 達到 4.94 億美元，而去年同期為 4.13 億美元。

In the next slide, I will discuss the financial performance by segments. In the mining segment, net revenue totaled $370 million in the second quarter, a 19% increase versus the second quarter of last year. This factor was mainly driven by higher average LME prices and the increase in by-products volume. Adjusted EBITDA for the mining segment of $145 million follow the upward trend and increased 3% year-over-year. Compared to the first quarter of this year, adjusted EBITDA increased 14%, mainly driven by higher volumes. Increases in net revenue and adjusted EBITDA during the first half of this year compared to the same period of last year were also driven by higher prices.

在下一張幻燈片中，我將按細分市場討論財務業績。在採礦部門，第二季度淨收入總計 3.7 億美元，比去年第二季度增長 19%。這一因素主要受倫敦金屬交易所平均價格上漲和副產品數量增加的推動。礦業部門調整後的 EBITDA 為 1.45 億美元，呈上升趨勢，同比增長 3%。與今年第一季度相比，調整後的 EBITDA 增長了 14%，主要受銷量增長的推動。與去年同期相比，今年上半年淨收入和調整後 EBITDA 的增長也受到價格上漲的推動。

In the smelting segment, net revenue in the second quarter totaled $683 million, an increase of 31% versus the second quarter of last year, also supported by higher LME prices, which offset the decrease in volumes. In the same period, adjusted EBITDA totaled $140 million, an increase of 52% that was explained by the positive net price effect of $58 million and higher by-products contribution, which offset the increase in operating costs, lower volumes and the Brazilian real appreciation. In the first half of this year, net revenue for the smelting segment totaled $1.2 billion compared to the $989 million in the first half of last year, while adjusted EBITDA totaled $223 million compared to $176 million.

在冶煉板塊，第二季度淨收入總計 6.83 億美元，比去年第二季度增長 31%，這也受到 LME 價格上漲的支撐，抵消了銷量下降的影響。同期，調整後 EBITDA 總計 1.4 億美元，增長 52%，原因是 5800 萬美元的淨價格效應和更高的副產品貢獻抵消了運營成本的增加、銷量下降和巴西雷亞爾的升值.今年上半年，冶煉板塊的淨收入為 12 億美元，而去年上半年為 9.89 億美元，調整後的 EBITDA 為 2.23 億美元，而去年同期為 1.76 億美元。

Now moving to the next slide to show our investments. In the second quarter, we invested $98 million in CapEx being $27 million directly associated with the Aripuana project. In the first half of this year, CapEx amounted to $180 million, where $54 million was related to Aripuana and the remaining mainly related to sustaining CapEx. The Brazilian real appreciation against the U.S. dollar had a negative impact of $8 million in the quarter and $13 million in the first 6 months of this year. We are happy to announce that our 2022 CapEx guidance remains unchanged at $385 million.

現在轉到下一張幻燈片來展示我們的投資。在第二季度，我們在資本支出上投資了 9800 萬美元，其中 2700 萬美元與 Aripuana 項目直接相關。今年上半年，CapEx 為 1.8 億美元，其中 5400 萬美元與 Aripuana 有關，其餘主要與維持 CapEx 有關。巴西雷亞爾兌美元匯率在本季度產生了 800 萬美元的負面影響，今年前 6 個月產生了 1300 萬美元的負面影響。我們很高興地宣布，我們的 2022 年資本支出指引保持不變，為 3.85 億美元。

With regard to mineral exploration and project evaluation, we invested a total of $24 million in the second quarter, being $13 million related to mineral exploration and mine development. In the first half of this year, we invested a total of $40 million related to these topics. As part of our long-term strategy, we are maintaining our efforts to replace and increase mineral reserves and resources, supporting our organic growth. Total plant exploration and project evaluation expenditures are expected to be $82 million in 2022. So guidance remains unchanged.

在礦產勘探和項目評估方面，第二季度我們共投資2400萬美元，其中1300萬美元與礦產勘探和礦山開發有關。今年上半年，我們在這些主題上共投入了 4000 萬美元。作為我們長期戰略的一部分，我們將繼續努力替換和增加礦產儲量和資源，支持我們的有機增長。到 2022 年，工廠勘探和項目評估的總支出預計為 8200 萬美元。因此指導保持不變。

Now moving to the next slide where I will discuss our cash flow generation in the quarter. In Slide #13, the cash flow provided by the operations was $241 million. We had $49 million from interest paid and taxes and $69 million invested in sustaining CapEx. Therefore, Nexa has generated $123 million of cash before expansion projects and working capital during the period. Our free cash flow from the second quarter was positive in $29 million. This free cash flow was also affected by $27 million invested in Aripuana, the investment in Tinka of $7 million included in loan and investments, dividend payments to noncontrolling shareholders of $9 million related to Pollarix, our company which manages our energy assets, foreign exchange effects on cash and cash equivalents of $16 million, an increase in working capital of $23 million.

現在轉到下一張幻燈片，我將在該幻燈片中討論我們在本季度產生的現金流量。在幻燈片 #13 中，運營提供的現金流為 2.41 億美元。我們從支付的利息和稅收中獲得了 4900 萬美元，並為維持資本支出投資了 6900 萬美元。因此，Nexa 在此期間在擴張項目和營運資金之前產生了 1.23 億美元的現金。我們第二季度的自由現金流為 2900 萬美元。這一自由現金流還受到投資於 Aripuana 的 2700 萬美元、包括在貸款和投資中的 700 萬美元對 Tinka 的投資、向非控股股東支付的 900 萬美元與 Pollarix（我們管理能源資產的公司）相關的股息、外匯影響現金和現金等價物 1600 萬美元，營運資金增加 2300 萬美元。

Now moving to the next slide, where I will discuss our cash flow generation in the first half of the year. In the first half of the year, the cash flow provided by the operations was [$465 million]. We had $139 million from interest paid and taxes, $115 million invested in sustaining CapEx as well. Therefore, Nexa has generated $211 million of cash flow before expansion projects and working capital. Our free cash flow for the period was negative $139 million, also explained by, $54 million invested in Aripuana, $60 million explained by the early redemption of our 2023 notes in the first quarter of this year, dividends of $59 million, which included Pollarix and working capital changes of $179 million. This high amount of working capital has been highly impacted by a negative variation of $166 million in inventories in our smelting segment due to the higher lead times in logistics and also a negative variation of $63 million in trade payables, partially offset by a positive variation of [$42 million] in trade receivables. We expect to reverse most of the increases in inventories during the coming months.

現在轉到下一張幻燈片，我將在其中討論我們上半年的現金流量。今年上半年，運營提供的現金流為[4.65億美元]。我們從支付的利息和稅收中獲得了 1.39 億美元，還有 1.15 億美元用於維持資本支出。因此，在擴張項目和營運資金之前，Nexa 已經產生了 2.11 億美元的現金流。我們在此期間的自由現金流為負 1.39 億美元，這也可以解釋為投資於 Aripuana 的 5400 萬美元，6000 萬美元的原因是今年第一季度提前贖回了我們的 2023 年票據，股息為 5900 萬美元，其中包括 Pollarix 和營運資金變動 1.79 億美元。由於物流提前期較長，我們的冶煉部門庫存出現了 1.66 億美元的負變化，貿易應付賬款也出現了 6,300 萬美元的負變化，部分抵消了[4200 萬美元] 貿易應收賬款。我們預計在未來幾個月內將扭轉大部分庫存增長。

Now moving to Slide 15. In Slide 15, you can see that our liquidity remains strong, and we continue to report a healthy balance sheet with an extended debt profile. By the end of the second quarter, our current available liquidity was approximately $933 million, which includes our undrawn revolving credit facility of $300 million. As of June 30, the average maturity of our total debt was 5.1 years, with a 5% average debt costs. Our leverage measured by the net debt to adjusted EBITDA ratio was 1.3x compared to -- with 1.5x at the end of the first quarter and 1.2x a year ago.

現在轉到幻燈片 15。在幻燈片 15 中，您可以看到我們的流動性仍然強勁，我們繼續報告健康的資產負債表和擴大的債務狀況。截至第二季度末，我們目前的可用流動資金約為 9.33 億美元，其中包括我們未提取的 3 億美元循環信貸額度。截至 6 月 30 日，我們總債務的平均期限為 5.1 年，平均債務成本為 5%。我們以淨債務與調整後 EBITDA 比率衡量的槓桿率為 1.3 倍，第一季度末為 1.5 倍，一年前為 1.2 倍。

Now moving to the next slide on ESG. I am now on Slide 17. Here, I will briefly give you an update on the progress we are making in our ESG program. First, I would like to highlight that we are enhancing our ESG strategy to reflect our commitment to long-term value creation and sustainable development. Since last year, our team has worked hard to develop a broad study base on different fronts, including climate change, natural capital related water use, social legacy, health, safety and well-being and people. Several strategic discussions were held and we are in the final process to define our main ESG long-term goals for 2030, which we expect to disclose in the coming months.

現在轉到關於 ESG 的下一張幻燈片。我現在在幻燈片 17 上。在這裡，我將簡要向您介紹我們在 ESG 計劃中取得的進展。首先，我想強調的是，我們正在加強我們的 ESG 戰略，以反映我們對長期價值創造和可持續發展的承諾。自去年以來，我們的團隊一直努力在不同領域建立廣泛的研究基礎，包括氣候變化、與自然資本相關的用水、社會遺產、健康、安全和福祉以及人。進行了幾次戰略討論，我們正處於確定 2030 年主要 ESG 長期目標的最終過程中，我們預計將在未來幾個月內披露這些目標。

Now turning to our last slide. I would like to close this presentation by briefly reinforcing our priorities for the rest of the year. As I mentioned earlier, Aripuana is in the ramp-up stage. Our efforts now are on the commercial production, while our exploration strategy focuses on increasing mineral resources and the extension of the life of the mine. We remain focused on efficiency and competed to improving our cash flow generation and productivity in all aspects of our business, in addition to continue to deliver on guidance. The expansion of the life of the mine of our operations continues to be an important goal to drive organic growth. With regard to our exploration project pipeline, we are reevaluating our project portfolio. And in parallel, we are very active in the market, assessing growth opportunities. Finally, as mentioned before, enhancing our ESG strategy is key to our business, so we will be communicating our main goals for 2030 in the coming months.

現在轉到我們的最後一張幻燈片。我想通過簡要強調今年剩餘時間的優先事項來結束本次演講。正如我之前提到的，Aripuana 正處於起步階段。我們現在的努力是商業生產，而我們的勘探戰略則側重於增加礦產資源和延長礦山壽命。除了繼續提供指導外，我們仍然專注於效率，並努力提高我們業務各個方面的現金流生成和生產力。延長我們運營礦山的壽命仍然是推動有機增長的重要目標。關於我們的勘探項目管道，我們正在重新評估我們的項目組合。與此同時，我們在市場上非常活躍，評估增長機會。最後，如前所述，加強我們的 ESG 戰略是我們業務的關鍵，因此我們將在未來幾個月內傳達我們 2030 年的主要目標。

Thank you all for attending this presentation. With that, I will be happy to take your questions.

感謝大家出席本次演講。有了這個，我很樂意回答你的問題。

(Operator Instructions) And our first question today comes from Jens Spiess from Morgan Stanley.

（操作員說明）我們今天的第一個問題來自摩根士丹利的 Jens Spiess。

Yes. This is Jens. Yes, I just wanted to ask on this last point you mentioned about the project portfolio. Could you provide any update on Magistral? And maybe any color whereas you're still quite negative on Peru or if given the current situation that -- yes, that the President or the current executive power will likely not be able to implement any legislative changes. Has your view changed there?

是的。這是延斯。是的，我只是想問一下你提到的關於項目組合的最後一點。您能否提供有關 Magistral 的任何更新？也許任何顏色，而你仍然對秘魯持負面態度，或者如果考慮到目前的情況 - 是的，總統或當前的行政權力可能無法實施任何立法改革。你的觀點有沒有改變？

Sure. Yes, in the case of Magistral, yes, we're still spending some money here in Magistral because this is a process that we have with the government, and we need to advance in the phases of Magistral to comply with the contract that we have with the government. However, Magistral, we believe, is a very good project. It's a project that is going to give us between 15 to 17 years of life of mine of good copper, yes. But the problem is, and it is related to the second part of your question, the problem is if we want to invest between $800 million to $1 billion in Peru, in this context where Peru is facing some noise around the mining sector. So what we are doing is we're still assessing.

當然。是的，就 Magistral 而言，是的，我們仍然在 Magistral 上花一些錢，因為這是我們與政府之間的一個流程，我們需要推進 Magistral 階段以遵守我們擁有的合同與政府。但是，我們相信，Magistral 是一個非常好的項目。是的，這個項目將給我們提供 15 到 17 年的優質銅礦壽命。但問題是，它與你問題的第二部分有關，問題是我們是否想在秘魯投資 8 億至 10 億美元，在這種情況下，秘魯在採礦業面臨一些噪音。所以我們正在做的是我們仍在評估。

Magistral is still a very important project for us, but we are evaluating if we team up in this project with other partners, so we can reduce our risks. And we are also comparing this project with other alternatives in the market outside Peru. So we evaluated the opportunity because of building Magistral in Peru or acquiring another project that is sort of in the same stage in other countries and decide whether which one is the best group to go -- to add value to the company. So that's more or less what we have in Magistral looking for some partners and also assets in other projects with the same size and characteristics in other countries. There are not that many. There are some -- but there are some, and we are very active on that.

Magistral 對我們來說仍然是一個非常重要的項目，但我們正在評估是否與其他合作夥伴在這個項目中合作，這樣我們就可以降低風險。我們還在將該項目與秘魯以外市場的其他替代方案進行比較。因此，我們評估了在秘魯建立 Magistral 或收購其他國家處於同一階段的另一個項目的機會，並決定哪一個是最好的團隊——為公司增加價值。因此，這或多或少是我們在 Magistral 中尋找一些合作夥伴以及在其他國家具有相同規模和特徵的其他項目中的資產。沒有那麼多。有一些——但也有一些，我們對此非常積極。

Okay. Perfect. And if I may, just you mentioned that you expect to be on the higher end of your production guidance in the Mining division. Any particular mines where you will be above your -- you expect to be above your existing guidance? And lastly, on the smelting division, did your cost benefit from provisional pricing from third-party purchases from concentrate this quarter that were made last quarter? And how much was that impact?

好的。完美的。如果可以的話，您剛才提到您希望在採礦部門處於生產指導的高端。任何特定的礦山，您將超越您的——您希望超越您現有的指導？最後，在冶煉部門，您的成本是否受益於本季度第三方從精礦採購的臨時定價（上一季度）？那影響有多大？

No problem. Yes. I guess regarding the production guidance of our mines, the main mines are Vazante and Cerro Lindo and Porvenir. And we are very stable in their throughput and in the average grade that we are projecting in the budgets, and that's why what we put in guidance. We had some problems in Atacocha in Peru. This is a small pit because of community issues. But this doesn't affect the, I would say, the outlook on guidance for the rest of the year. So we expect most of our mines being very stable, yes. And as we were saying in the presentation, should be very similar to the performance of the second quarter. And that's why we can achieve mid to the higher range of production guidance for the rest of the year.

沒問題。是的。我想關於我們礦山的生產指導，主要的礦山是 Vazante 和 Cerro Lindo 和 Porvenir。我們在他們的吞吐量和我們在預算中預測的平均等級非常穩定，這就是我們提出指導的原因。我們在秘魯的阿塔科查遇到了一些問題。由於社區問題，這是一個小坑。但這不會影響今年餘下時間的指引前景。所以我們預計我們的大部分礦山都非常穩定，是的。正如我們在演示文稿中所說，應該與第二季度的表現非常相似。這就是為什麼我們可以在今年餘下時間實現中到更高範圍的生產指導。

Regarding the second question, which was the question -- Yes. So regarding the second question about the smelting costs. The smelting cost is, I would say, it's influenced by -- the smelting cash cost is influenced by a conversion cost, yes. And the conversion cost has gone up because of some energy prices increases in Peru. That is linked to oil in any case. Any increases -- inflationary increases in all derivatives of that, [diesel and some reactives]. And in Brazil, we had a problem of the real, yes. So -- that's why the -- I would say the conversion costs went up from the first quarter to the second quarter. And from the year, it was much higher, okay?

關於第二個問題，這是一個問題——是的。所以關於第二個關於冶煉成本的問題。我想說，冶煉成本受——冶煉現金成本受轉換成本的影響，是的。由於秘魯的一些能源價格上漲，轉換成本已經上升。無論如何，這與石油有關。任何增加——所有衍生品的通貨膨脹增加，[柴油和一些反應物]。在巴西，我們遇到了真實的問題，是的。所以 - 這就是為什麼 - 我會說轉換成本從第一季度到第二季度有所上升。從那一年開始，它要高得多，好嗎？

But the part that was much higher was because the prices, when you buy the concentrate, you sort of pay the spot price or the price that is amount before or a month above, so prices were up, and so the value of concentrate was higher, and that's why the cash cost was up. Having said that, this effect on hedge or this effect on these hits that we have sometimes are positive, sometimes are negative are based on when we hedge (inaudible), this is financial. When we hedge the inventory, yes, has a certain price. So when you realize that price in the month that the price is lower, you [realize a gain], which is what happened this month or this quarter, okay?

但高得多的部分是因為價格，當你購買精礦時，你支付的是現貨價格或之前或一個月以上的價格，所以價格上漲，所以精礦的價值更高，這就是現金成本上升的原因。話雖如此，這種對沖或對這些命中的影響有時是積極的，有時是消極的，是基於我們何時對沖（聽不清），這是財務上的。當我們對沖庫存時，是的，有一定的價格。因此，當您意識到價格較低的月份中的價格時，您[實現了收益]，這就是本月或本季度發生的事情，好嗎？

But this is offset in reality because when you sell -- given that you hedge everything at the end of the year, let's say, all these positives, negative should be 0. So that's why we have some [fixed in term] -- negative in the quarter. And this is related to dropping on prices. Prices have dropped, as you know, in the last quarter, very much the, the stock that we had was with higher fixed with a higher price when it goes down, you get -- you have [a gain] because it was fixed with a higher price. So that's why we recorded $19 million in this quarter of gain. I don't know if this was there. But this is going to reverse. And at the end of the day, you will see that when we produce and we sell towards the end of the year, this negative and positive that we have in the quarter are going to offset each other, and we would have close to 0 of these effects.

但這在現實中被抵消了，因為當你賣出時——假設你在年底對沖一切，假設所有這些積極因素，消極因素應該是 0。這就是為什麼我們有一些 [固定期限] - 消極的在本季度。這與價格下降有關。如您所知，在上個季度，價格下跌了很多，我們擁有的股票在下跌時固定較高，價格較高，您會得到-您有[收益]，因為它是固定的更高的價格。這就是為什麼我們在本季度錄得 1900 萬美元的收益。我不知道這是否存在。但這將逆轉。在一天結束時，你會看到，當我們在年底生產和銷售時，我們在本季度的負面和正面將相互抵消，我們將接近 0這些影響。

Perfect. Very clear. So $19 million positive effect this quarter, which might or might not be sustainable pending housing prices [above]. Perfect.

完美的。非常清楚。因此，本季度有 1900 萬美元的積極影響，這可能是也可能不是可持續的待定房價 [上圖]。完美的。

Exactly. No, no problem.

確切地。不，沒問題。

And our next question comes from Lawson Winder from Bank of America.

我們的下一個問題來自美國銀行的 Lawson Winder。

I would like to also ask about the project review. The -- I mean it's quite clear that part of this review is a bit of a hesitancy with exposure to Peru. What jurisdictions at this point are attractive for Nexa?

我還想問一下項目審查。 - 我的意思是很明顯，這篇評論的一部分對秘魯的接觸有點猶豫。目前哪些司法管轄區對 Nexa 有吸引力？

Yes, it's a very good question. This -- we created a new area in February where our [DPO of exploration enters in charge] of it right now. We have been very active in the market, yes. So I would say that we are focused in the Americas. We have been looking projects in Brazil and in Peru, in Chile, in Mexico and some projects in the U.S. and Canada. It's not that easy because, as you know, there are not that many projects available, and sometimes you have to be created enough to find some value on the assessments that we do. But we are, I would say, very active in the Americas. We are looking for opportunities in the Americas.

是的，這是一個非常好的問題。這——我們在 2 月份創建了一個新區域，現在我們的 [DPO 勘探進入負責] 區域。我們在市場上一直非常活躍，是的。所以我想說我們專注於美洲。我們一直在尋找巴西、秘魯、智利、墨西哥的項目以及美國和加拿大的一些項目。這並不容易，因為如您所知，可用的項目並不多，有時您必須具備足夠的創造力才能在我們所做的評估中找到一些價值。但我想說，我們在美洲非常活躍。我們正在美洲尋找機會。

And I would say in the case of Peru, yes, Peru has been a mining country forever, and this situation is not easy today. But within Peru, you can find alternatives that are better than others, meaning that you don't have that much exposure to communities, you don't have that much exposure to towns that are difficult in mining. So we are also assessing some opportunities. In the case of Magistral, this is still a difficult situation because, I mean, the location of Magistral makes it difficult to build the project because of this community relations programs. But to answer your question, I would say, mainly Americas, some opportunities could arise in Europe. We evaluate a project 6 to 8 months ago in Spain that was acquired by another company. So opportunistically, in Europe, Americas, and that's mainly where we are trying to focus on.

就秘魯而言，我想說，是的，秘魯一直是一個採礦國，今天這種情況並不容易。但在秘魯，你可以找到比其他地方更好的替代方案，這意味著你沒有那麼多接觸社區，你沒有那麼多接觸採礦困難的城鎮。因此，我們也在評估一些機會。在 Magistral 的情況下，這仍然是一個困難的情況，因為我的意思是，由於這個社區關係計劃，Magistral 的位置使得項目建設變得困難。但要回答你的問題，我想說，主要是美洲，歐洲可能會出現一些機會。我們評估了 6 到 8 個月前在西班牙被另一家公司收購的項目。所以機會主義地，在歐洲、美洲，這主要是我們試圖關注的地方。

One thing that stands out from the list is Bonsucesso near Morro Agudo. So one, it's in Brazil. So one reason that stands out. The other is that, I mean, Bonsucesso, I kind of thought of being the future of Morro Agudo, the complex. What does that imply for the status of Morro Agudo? I mean is it a key asset for you guys going forward? Or is it noncore?

從列表中脫穎而出的一件事是 Morro Agudo 附近的 Bonsucesso。第一，它在巴西。所以一個突出的原因。另一個是，我的意思是，Bonsucesso，我有點想成為 Morro Agudo 的未來，這個綜合體。這對 Morro Agudo 的地位意味著什麼？我的意思是這對你們來說是一個關鍵的資產嗎？還是非核心？

It's a very good question, and this is the strategy that we have been talking about with the group, yes. And I guess it happens in all the evolution of companies. So you look at the assets of Nexa and the big assets for us relative to us are Cerro Lindo or Vazante or Aripuana now that is in ramp up. So these are good assets. [Cerro Lindo] today is a smaller asset, we have a project of new derivative Porvenir and Atacocha, that could have a good return, and we are assessing that. But then you go to [Bonsucesso] all these drill holes that we have and all this perspective of this deposit is really, really good.

這是一個非常好的問題，這是我們一直在與團隊討論的策略，是的。我猜它發生在公司的所有發展過程中。所以你看看 Nexa 的資產，我們相對於我們的大資產是 Cerro Lindo 或 Vazante 或 Aripuana，現在它們正在增加中。所以這些都是很好的資產。 [Cerro Lindo] 今天是一個較小的資產，我們有一個新的衍生品 Porvenir 和 Atacocha 的項目，它可能會有很好的回報，我們正在評估它。但是然後你去[Bonsucesso]我們擁有的所有這些鑽孔，並且這個礦床的所有這些觀點都非常非常好。

On the Morro Agudo plant, I mean, it's breakeven right now. All these minerals that being from the Morro Agudo mine is breakeven. So we see that smaller projects might be something that we will try to get out of our portfolio. So we are looking now for -- given the time constraints that we have and given the size that we have, I would say that we are looking for opportunities to match the size and the profitability of Cerro Lindo, of Vazante, of Aripuana because you allocate the same time and you have something more transformational for next. So this is the status that we have. This is what we are assessing now, but we will communicate to the market later on in more detail.

在 Morro Agudo 工廠，我的意思是，它現在處於盈虧平衡狀態。來自 Morro Agudo 礦的所有這些礦物都是盈虧平衡的。因此，我們看到較小的項目可能是我們將嘗試從我們的投資組合中擺脫出來的東西。所以我們現在正在尋找——考慮到我們所擁有的時間限制和我們所擁有的規模，我想說我們正在尋找與 Cerro Lindo、Vazante 和 Aripuana 的規模和盈利能力相匹配的機會，因為你分配相同的時間，接下來您將獲得更具變革性的東西。這就是我們的狀態。這是我們現在正在評估的，但我們稍後會更詳細地與市場溝通。

But going back to your question, Bonsucesso is a very good prospect. It's a small one. It's by 30,000 tons of zinc has a lot of potential in terms of more resources. (inaudible) the mineral of Morro Agudo and Morro Agudo plant is going to be adopted, but it won't cost that much. So it could be a good project. But the question is, is this a project of the size that we want. And the answer for today is no. The answer for today is let's focus on projects similar to the ones of Cerro Lindo, Vazante and Aripuana.

但回到你的問題，Bonsucesso 是一個非常好的前景。這是一個小的。 30,000噸鋅在更多資源方面具有很大潛力。 （聽不清）Morro Agudo 和 Morro Agudo 植物的礦物將被採用，但不會花費那麼多。所以這可能是一個很好的項目。但問題是，這是一個我們想要的規模的項目嗎？而今天的答案是否定的。今天的答案是讓我們專注於類似於 Cerro Lindo、Vazante 和 Aripuana 的項目。

Would -- just a follow-up on that, would that mean there's risk that Morro Agudo is closed in sort of the next few years?

是否會 - 只是對此的跟進，這是否意味著 Morro Agudo 有可能在未來幾年內關閉？

It could be -- I mean, we are always assessing. Morro Agudo has some benefits in terms of the smelters, in terms of Tres Marias and Juiz de Fora. But to be honest, the money that we make in Morro Agudo is very little, it's very small now. And we are assessing and the team of the VP of Operations is assessing how much CapEx are we going to allocate in the next 3 to 5 years compared to this CapEx putting it in a different project. So the answer is we are still assessing, and I would say it might be the case that in the coming years, we will decide to close Morro Agudo. But this is something that we will communicate in a proper way and in advance to the market.

可能是——我的意思是，我們一直在評估。 Morro Agudo 在冶煉廠方面有一些好處，就 Tres Marias 和 Juiz de Fora 而言。但老實說，我們在莫羅阿古多賺的錢很少，現在很少。我們正在評估，運營副總裁的團隊正在評估我們將在未來 3 到 5 年內分配多少資本支出，而不是將資本支出放在不同的項目中。所以答案是我們仍在評估中，我想說的是，在未來幾年，我們可能會決定關閉 Morro Agudo。但這是我們會以適當的方式提前與市場溝通的事情。

And then just maybe one final question on this project review. 2 of the projects on that list, Florida Canyon and Shalipayco, have partners. Have there been any preliminary discussions with those partners regarding a potential purchase transaction for Nexa's shares?

然後也許只是關於這個項目審查的最後一個問題。該列表中的 2 個項目，Florida Canyon 和 Shalipayco，都有合作夥伴。是否與這些合作夥伴就 Nexa 股票的潛在購買交易進行了初步討論？

Yes. No, we are in this process right now. Shalipayco, we believe, is a very good project, early stage. But it's very near Pasco, and this will need a new plant, new permits. So the opportunity cost of [leaving Shalipayco] and put it to a new plant, I would say, is in a lower category than buying other projects more advanced and more straight to our strategy. So we are assessing what are we doing in Shalipayco and that is also the case in Florida Canyon, early stage. So still, we are still assessing, and I can tell you that in the coming months, we will be more specific on these projects as well. We might get back to the partners and try to do something with them and try to make some more concrete actions in these projects that are early stage and that if we want to create Nexa that is, I would say, transformation and again, we have to focus on operations that are similar to Cerro Lindo and Vazante and Aripuana, okay?

是的。不，我們現在正處於這個過程中。我們相信，Shalipayco 是一個非常好的項目，處於早期階段。但它非常靠近帕斯科，這將需要一個新工廠，新的許可證。因此，[離開 Shalipayco] 並將其投入新工廠的機會成本，我想說，與購買其他更先進、更直接符合我們戰略的項目相比，它的機會成本更低。因此，我們正在評估我們在 Shalipayco 所做的事情，佛羅里達峽谷的早期階段也是如此。所以，我們仍在評估，我可以告訴你，在接下來的幾個月裡，我們也會更具體地處理這些項目。我們可能會回到合作夥伴那裡，嘗試與他們一起做一些事情，並嘗試在這些處於早期階段的項目中採取一些更具體的行動，如果我們想要創建 Nexa，我會說，轉型，再一次，我們有專注於類似於 Cerro Lindo、Vazante 和 Aripuana 的運營，好嗎？

Our next question comes from Orest Wowkodaw from Scotiabank.

我們的下一個問題來自豐業銀行的 Orest Wowkodaw。

I just wanted to touch on operating costs, inflationary pressures that's been, I guess, the key theme for this reporting season. And I guess the last one too. Can you please -- so your updated cost guidance, does it reflect effectively current spot pricing for energy and input costs? And you've assumed current spot pricing for the rest of the year? Or what exactly does the new cost guidance assume?

我只是想談談運營成本和通脹壓力，我猜這一直是本報告季的關鍵主題。我猜也是最後一個。請問您更新的成本指南是否有效地反映了當前能源和投入成本的現貨定價？你已經假設了今年剩餘時間的當前現貨價格？或者新的成本指南究竟假設了什麼？

I would like to clarify this. The cash cost that we presented, and I'm using the mining example that is going to go from [23 to 28] has 3 components for us. So the first one is the cash cost per ton or the run-off mine cash cost per ton for the mines, which is how much cash I invest that is in the operating costs in the mine. And we said that we had almost $43 this year in the second quarter, that's what was [$45] in the first quarter and last year it was [$38 or $39]. So from last year to this year, it increased. The reason in increase was for 2 reasons. One was throughput, and the second one was inflation. We said in the first quarter -- in the last quarter call that we incorporated inflation in our estimates for this year. So that's why it went to $45 in the first quarter of this year, okay. The second quarter is [$43], and we believe that the rest -- the following quarters is going to be similar to $43 .

我想澄清一下。我們提出的現金成本，我正在使用從 [23 到 28] 的採礦示例，對我們來說有 3 個組成部分。所以第一個是每噸現金成本或礦山的每噸徑流礦山現金成本，這是我在礦山運營成本中投入的現金。我們說今年第二季度我們有近 43 美元，這是第一季度的 [45 美元]，去年是 [38 美元或 39 美元]。所以從去年到今年，它增加了。增加的原因有兩個。一是吞吐量，二是通貨膨脹。我們在第一季度 - 在上一季度的電話會議中表示，我們將通貨膨脹納入我們對今年的估計中。所以這就是為什麼它在今年第一季度達到 45 美元，好吧。第二季度是 [43 美元]，我們相信其餘的 - 接下來的幾個季度將與 43 美元相似。

So the cash cost per ton from our mines is being stable, high inflation at the beginning, and this inflation is mainly related to energy, to diesel to some reactives in the plant to some cement, et cetera. So a specific item that are bigger items in the mine. How you mitigate that is with 2 things. One is volume. So we increased our volume, especially in Vazante and Cerro Lindo (inaudible) with initiatives in the mine. So all these inflation is to mitigate how we're mitigating the mines. Again, for example, we have a lot of [short grid or rock support] in the mine because this is underground. We optimize the short grid. We have -- we renegotiated some conditions with contractors. We changed the process of water disposal to be inside the mine and we don't need to treat. We renegotiate all other targets with contractors. So there are many activities or actions that we took to offset the inflation and to make sure that our cost per ton is flat. So this is what we control.

因此，我們礦山的每噸現金成本是穩定的，一開始通貨膨脹率很高，而這種通貨膨脹主要與能源、柴油、工廠中的一些反應物和一些水泥等有關。所以一個特定的項目是礦山中更大的項目。你如何減輕這種情況有兩件事。一是音量。因此，我們增加了我們的產量，特別是在 Vazante 和 Cerro Lindo（聽不清），並在礦山採取了主動行動。因此，所有這些通貨膨脹都是為了減輕我們減輕地雷的方式。同樣，例如，我們在礦山中有很多[短網格或岩石支撐]，因為這是在地下。我們優化了短網格。我們已經 - 我們與承包商重新談判了一些條件。我們將水處理過程更改為在礦井內，我們不需要處理。我們與承包商重新談判所有其他目標。因此，我們採取了許多活動或行動來抵消通貨膨脹並確保我們的每噸成本持平。所以這是我們控制的。

On top of that, you have 2 other items that goes to the cash costs. The first one is the treatment charges. So treatment charges, I would say, are sort of flat for the rest of the year. We have contracts. I mean if you follow the benchmark, the benchmark for the year has gone up from last year, yes, but it's sort of flat. So it shouldn't be the TCs that is going to change the cash cost. What really changes the cash cost is the income on by-products because what happens is that you have your total costs on all the by-products that you are selling have a lower price because prices are going down. So this discount on the costs of these by-products is now lower, and that's why your cash cost is going up. So this is the dynamic that we are following in the mines, and that's why we're saying that it comes from 23 to 28 , yes. So that's -- I don't know if that was clear to you in this explanation.

最重要的是，您還有 2 個其他項目用於支付現金成本。第一個是治療費。所以治療費，我想說，在今年剩下的時間裡是持平的。我們有合同。我的意思是，如果你按照基準，今年的基準比去年有所上升，是的，但它有點持平。因此，改變現金成本的不應該是 TC。真正改變現金成本的是副產品的收入，因為發生的情況是，由於價格下降，您銷售的所有副產品的總成本都降低了。因此，這些副產品成本的折扣現在更低，這就是您的現金成本上升的原因。這就是我們在礦山中所遵循的動態，這就是為什麼我們說它來自 23 到 28 ，是的。那就是——我不知道你在這個解釋中是否清楚。

It is. Maybe you could -- could you remind us just how your energy power contracts work at the smelters. And just given the magnitude of the contribution of energy and power to those operations.

這是。也許你可以——你能提醒我們你的能源合同在冶煉廠是如何運作的嗎？只是考慮到能源和電力對這些操作的貢獻程度。

Yes. I would say, in Brazil, we are self-sufficient in energy. We have a company called Pollarix [that holding] some assets and we sort of generate our own energy. And that's why we are not exposed to the market in Brazil in that regard. I would say that in Brazil, the main factor that influenced the cost or the conversion cost in the smelters was the real, the real depreciation. So this was -- and some inflation as well. In Peru, that Cajamarquilla consumes a lot of energy, we have a contract. And this contract is linked to factors that are in our control. And this synergy is going up. So that's why on other actually the smelters have inflation and inflation related to energy, but especially in Peru.

是的。我想說，在巴西，我們的能源是自給自足的。我們有一家名為 Pollarix 的公司 [持有] 一些資產，我們在某種程度上產生了自己的能源。這就是我們在這方面沒有接觸巴西市場的原因。我想說的是，在巴西，影響冶煉廠成本或轉換成本的主要因素是實際折舊。所以這是 - 以及一些通貨膨脹。在秘魯，Cajamarquilla 消耗大量能源，我們有合同。這份合同與我們控制的因素有關。這種協同作用正在上升。這就是為什麼冶煉廠實際上存在通貨膨脹以及與能源相關的通貨膨脹，尤其是在秘魯。

Sorry. And just on the Cajamarquilla. So was that -- is that power contract then, is that updated fairly regularly?

對不起。就在卡哈馬基拉。那麼，那是電力合同嗎，是否定期更新？

Yes. No, you have -- the way it works is that you have like -- let's say, you have like 3- to 5-year contracts, and there is a formula. And this formula -- I mean, they will provide you with the energy, and it's good that is renew our energy because it's energy that is a hydroelectric energy that is good for us in terms of the (inaudible). But you have the contract. So they have to provide you, but this price is updated by 2 factors. One is the cost of the grid so the grid is going to -- it costs you more so your price goes up. And the second one is some external factors, let's say, like oil. That goes up for last year to this year, it went up. So your cost of the charge that they have you on the cost goes up. So this was the case in Cajamarquilla. And it might be the case depending on how this moves in the rest of the year, it might be the case that we would have more inflation in energy in Cajamarquilla as well.

是的。不，你有 - 它的工作方式是你喜歡的 - 比如說，你有 3 到 5 年的合同，並且有一個公式。這個公式——我的意思是，它們會為你提供能量，更新我們的能量是很好的，因為它是一種水電能源，就（聽不清）而言對我們有好處。但是你有合同。所以他們必須為您提供，但這個價格是由 2 個因素更新的。一個是電網的成本，因此電網將要-它花費更多，因此您的價格會上漲。第二個是一些外部因素，比如說石油。從去年上升到今年，它上升了。因此，他們對您收取的費用會增加您的費用。卡哈馬基拉就是這種情況。根據今年剩餘時間的走勢，情況可能會如此，卡哈馬基拉的能源通脹也可能會更高。

And ladies and gentlemen, at this point, we will proceed for off-line questions.

女士們，先生們，在這一點上，我們將繼續進行離線提問。

So we received a question here from Jose Maria from BCG [by Cloud]. Congrats for the good results. We'd like to know, given the currently updated assumptions, what kind of EBITDA contribution we should expect in 2022 from Aripuana?

因此，我們收到了來自 BCG [by Cloud] 的 Jose Maria 的問題。恭喜取得好成績。我們想知道，鑑於當前更新的假設，我們應該期望 Aripuana 在 2022 年對 EBITDA 做出什麼樣的貢獻？

Yes. Okay. No, it's going to be a small in Aripuana, as we are saying is in ramp up is good. The ramp-up activities are progressing really well. And as I was saying in the call, between 30% to 40% of capacity is going to be reached at the end of September. Then at the end of December, should be between 70% to 80% of the capacity. So -- but a mineral that is going to be produced when you start the ramp-up to make sure that the plant is up and running in a good way, recoveries will adjust and the mineral that you use to feed the plant is mineral with low grades. So I would say in that regard, the profitability of the minerals that we are getting from this ramp-up is lower. So the EBITDA is going to be very low in this year. However, 100% of capacity is going to become in the first quarter of next year. So Aripuana EBITDA contribution for next year is going to be much better.

是的。好的。不，它在 Aripuana 將是一個小規模，正如我們所說的那樣，增長是好的。加速活動進展順利。正如我在電話會議中所說的那樣，9 月底將達到 30% 到 40% 的產能。那麼在12月底，應該是70%到80%之間的產能。所以 - 但是當你開始加速以確保工廠以良好的方式啟動並運行時將產生一種礦物質，回收率將調整併且你用來餵養植物的礦物質是礦物質低年級。因此，在這方面，我想說的是，我們從這次增產中獲得的礦物的盈利能力較低。因此，今年的 EBITDA 將非常低。但是，明年第一季度將達到 100% 的產能。因此，Aripuana 明年的 EBITDA 貢獻將會好得多。

The second question comes from [Joanna Feliz from Banco Bradesco]. What's your net leverage through the cycle given investments and weaker economic prospects assuming that you tend to remain investment-grade. Can you please clarify your revised cash cost guidance?

第二個問題來自[Banco Bradesco 的Joanna Feliz]。假設您傾向於保持投資級別，那麼在投資和經濟前景疲軟的情況下，您在整個週期中的淨槓桿是多少。您能否澄清您修改後的現金成本指南？

Yes. Well, the cash cost guidance, we already clarified as I was explaining. So it's very important, the leverage question. So at the end of the day, a mining company with our debt profile and the CapEx that we invested in our operations needs to have like a breakeven cash cost of the company. So you stress the company to make sure that your leverage -- where does your leverage go and then you evaluate if you are investment-grade or not. So the exercise that we did, and I would say that the appetite that we have is that our leverage shouldn't go above 2.5 to 3x, but this is in a stress way.

是的。好吧，現金成本指導，正如我解釋的那樣，我們已經澄清了。因此，槓桿問題非常重要。因此，歸根結底，一家擁有我們的債務狀況和我們投資於運營的資本支出的礦業公司需要擁有公司的盈虧平衡現金成本。所以你強調公司要確保你的槓桿——你的槓桿在哪裡，然後你評估你是否是投資級的。所以我們所做的練習，我想說的是，我們的胃口是我們的槓桿不應該超過 2.5 到 3 倍，但這是一種壓力。

Bringing Aripuana today for next year is going to be EBITDA contribution. The rest of the mines are going to be up and running. We might spend some CapEx in Cerro Pasco in the next year to integrate in El Porvenir and Atacocha. So we don't see through the cycle leverage higher than [2 or 2.5x]. Having said that, with the cash flow that we generate, and this is a capital allocation strategy, we have to pay dividends. I mean dividend is part of the -- let's say, of our strategy to give back to the shareholders some money. And with the rest of the money, we will need to find growth. So in finding growth is that you probably need to leverage more the company, and then you will have to stress more the company in terms of bringing more debt.

今天為明年帶來 Aripuana 將是 EBITDA 的貢獻。其餘的礦山將啟動並運行。明年我們可能會在 Cerro Pasco 花費一些資本支出，以整合 El Porvenir 和 Atacocha。因此，我們沒有看到高於 [2 或 2.5 倍] 的周期槓桿。話雖如此，憑藉我們產生的現金流，這是一種資本配置策略，我們必須支付股息。我的意思是股息是我們回饋股東一些錢的戰略的一部分。剩下的錢，我們需要找到增長點。因此，在尋求增長時，您可能需要更多地利用公司，然後您將不得不在帶來更多債務方面對公司施加更多壓力。

So if that is the case, still, I would say, 3x ratio is the limit for us. And it should be a peak. It should be a peak because when prices are low, companies always reduce CapEx, find more optimization on costs. Some of the operations won't pay and you have to stop some parts of the operations, et cetera, et cetera. But the short answer is 3x.

因此，如果是這樣的話，我想說，3 倍的比率仍然是我們的極限。它應該是一個高峰。它應該是一個高峰，因為當價格低時，公司總是減少資本支出，尋找更多的成本優化。某些操作不會支付費用，您必須停止某些操作，等等等等。但簡短的回答是 3 倍。

Can you break down your major costs into energy, freight and logistics. Also, can you comment your views in terms of the outlook for both segments?

你能把你的主要成本分解為能源、貨運和物流嗎？另外，您能否就這兩個細分市場的前景發表您的看法？

Well, I don't have that detail. I'm very sorry. We can follow up that you have.

嗯，我沒有那個細節。我很抱歉。我們可以跟進您的情況。

Yes.

是的。

Yes, so Roberta, you can go on that question.

是的，所以羅伯塔，你可以繼續這個問題。

Yes. In terms of energy cost, let's say on a consolidated basis, considering the cost of goods sold is about 8% to 10%. And in terms of logistics, about 5%. Usually, the freight cost is deducted from our gross revenue.

是的。就能源成本而言，假設在綜合基礎上，考慮到所售商品的成本約為 8% 至 10%。而在物流方面，大約是5%。通常，運費會從我們的總收入中扣除。

And the next question we have is from Hernan from MetLife. Now that investments in Aripuana are mostly done. What should we expect for capital allocation?

我們的下一個問題來自大都會人壽的 Hernan。現在，對 Aripuana 的投資已經基本完成。我們應該期待什麼資本配置？

Yes. I already answered that. I would explain again. Part will go to dividends and the part has to go to find projects similar to Aripuana. As I was saying, Magistral is one of them, and we are assessing Magistral towards -- against other projects that we are looking in the market. So capital allocation will go to finance these projects and make sure that we have Cerro Lindo, Vazante, Aripuana and any other mine of that size. Pasco could be something that is a backup. Pasco could be a backup. But I would say that we will try to allocate that capital to projects of that similar size.

是的。我已經回答過了。我再解釋一下。一部分將用於分紅，一部分必須去尋找類似於 Aripuana 的項目。正如我所說，Magistral 就是其中之一，我們正在評估 Magistral 以針對我們在市場上尋找的其他項目。因此，資本分配將用於資助這些項目，並確保我們擁有 Cerro Lindo、Vazante、Aripuana 和任何其他類似規模的礦山。帕斯科可能是一個備份。帕斯科可能是替補。但我想說，我們將嘗試將資金分配給類似規模的項目。

Okay. So we don't have any other questions. We thank you all for the time and consideration here. And we would like to close the presentation by announcing that we have -- for the first time, we're going to have our Investor Day in October in New York, given that it's 5 years of the -- of our IPO, yes. And this is a very important milestone for Nexa. This will be an opportunity for a going in-depth discussion on how we are envisioning or developing our business. We will have presentations around exploration and the -- and how are we going to send the life of the mine, you will be able to meet all the team, and we will discuss our ESG strategy, which is something that is very important for any mining company that is -- I mean it's around responsibility with the -- with your stakeholders, I would say. And we will put our commitment for 2030.

好的。所以我們沒有任何其他問題。我們感謝大家在這裡的時間和考慮。我們想結束演講，宣布我們 - 第一次，我們將在 10 月在紐約舉行投資者日，因為這是我們 IPO 的 5 年，是的。這對 Nexa 來說是一個非常重要的里程碑。這將是一個深入討論我們如何設想或發展我們的業務的機會。我們將圍繞勘探和 - 以及我們將如何發送礦山的生命進行演示，您將能夠與所有團隊會面，我們將討論我們的 ESG 戰略，這對任何人來說都非常重要礦業公司 - 我的意思是它與你的利益相關者的責任，我會說。我們將兌現我們對 2030 年的承諾。

So we will tell you in advance the date. We are very excited to doing this. So hopefully, some of you could join us in New York. We know that some of you work there. So probably it will be fantastic to give you all of these views of Nexa for the coming years in (inaudible), okay? And with that, again, I would like to close this presentation and this Q&A with thanking you for the time. And I hope we will see you in 3 months with the next results that we have, okay? Thank you very much.

所以我們會提前告訴你日期。我們很高興能做到這一點。所以希望你們中的一些人可以加入我們在紐約的行列。我們知道你們中的一些人在那里工作。因此，在未來幾年（聽不清）向您介紹 Nexa 的所有這些觀點可能會很棒，好嗎？至此，我想再次感謝您抽出寶貴的時間來結束本次演講和本次問答。我希望我們能在 3 個月內見到你，我們有下一個結果，好嗎？非常感謝。

Ladies and gentlemen, this concludes today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.

女士們，先生們，今天的電話會議到此結束。我們非常感謝您參加今天的演講。您現在可以斷開線路。