Nexa Resources SA (NEXA) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Nexa Resources Fourth Quarter and Full Year 2023 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)

早安，歡迎參加 Nexa Resources 第四季和 2023 年全年電話會議。（操作員說明）該事件正在被記錄並透過網路廣播進行廣播。可以透過 Nexa 的投資者關係網站訪問，該網站上也提供簡報。（操作員說明）

I would now like to turn the conference over to Mr. Rodrigo Cammarosano, Head of Investor Relations for opening remarks. Please go ahead.

我現在請投資人關係主管 Rodrigo Cammarosano 先生致開幕詞。請繼續。

Good morning, everyone, and welcome to Nexa Resources Fourth Quarter and Full Year 2023 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.

大家早安，歡迎參加 Nexa Resources 2023 年第四季和全年財報電話會議。感謝您今天加入我們。在電話會議期間，我們將根據昨天發布的收益報告討論公司的表現。我們鼓勵您透過網路廣播觀看螢幕演示。

Before we begin, I would like to draw your attention to slide number two, as we 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 is now my pleasure to introduce our speakers. Joining us today is our CEO, Ignacio Rosado; our CFO, José Carlos del Valle; and our Senior Vice President of Mining, Leonardo Coelho.

在我們開始之前，我想提請您注意第二張投影片，因為我們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執行長 Ignacio Rosado；我們的財務長 José Carlos del Valle；以及我們的礦業資深副總裁 Leonardo Coelho。

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

現在我將把電話轉給伊格納西奧徵求他的意見。伊格納西奧，請繼續。

Thank you, Rodrigo, and good morning to everyone. Please, let's move now to slide number three, where we will begin our presentation. We appreciate you joining us today to discuss our fourth quarter and full year 2023 results along with insights into our outlook for 2024. I am pleased to report that we achieved our guidance for the year with metal production at the high end of guidance on total smelting sales at the mid-range, while mining and smelting costs were in line with guidance.

謝謝你，羅德里戈，祝大家早安。現在請讓我們轉到第三張投影片，我們將從這裡開始進行簡報。感謝您今天加入我們，討論我們的 2023 年第四季和全年業績，以及對 2024 年展望的見解。我很高興地報告，我們實現了今年的指導，金屬產量處於指導的高端，冶煉總銷售額處於中檔，而採礦和冶煉成本符合指導。

As many of you are aware, 2023 posed persistent challenges to our business, particularly due seeing prices under delay in the ramp up of Aripuanã. Nonetheless, I would like to highlight the dedication and professionalism of our team, which has supported us in improving efficiency across our organization, which enabled us to deliver solid operational results and also to mitigate in part the negative impact of lower zinc prices in our 2023 cash flow.

正如你們許多人所知，2023 年對我們的業務提出了持續的挑戰，特別是由於 Aripuanà 價格上漲的延遲。儘管如此，我想強調我們團隊的奉獻精神和專業精神，他們支持我們提高整個組織的效率，使我們能夠實現穩健的營運業績，並部分減輕 2023 年鋅價下跌的負面影響現金週轉。

For the full year, total consolidated net revenues amounted to $2,573 million, down by 15% year over year, mainly due to lower zinc prices and lower metal sales. Adjusted EBITDA in the four quarter of '23 was $105 million compared to $120 million a year ago. This performance was mainly driven by lower smelting sales volumes and zinc prices.

全年綜合淨收入總額為25.73億美元，年減15%，主要是由於鋅價下跌和金屬銷售下降。2023 年第四季調整後 EBITDA 為 1.05 億美元，去年同期為 1.2 億美元。這一業績主要是由於冶煉銷售和鋅價下降所致。

Zinc was down 17% year over year. Compare to last quarter adjusted EBITDA rose 28% due to higher zinc prices, which were partially offset by lower smelting sales volume. For the full year, adjusted EBITDA amounted to $391 million, down 49% year-over-year, primarily driven by lower LME metal prices in addition to lower smelting sales volumes.

鋅年減17%。與上季相比，由於鋅價上漲，調整後的 EBITDA 成長了 28%，但冶煉銷售下降部分抵消了這一影響。全年調整後 EBITDA 為 3.91 億美元，較去年同期下降 49%，主要是由於 LME 金屬價格下跌以及冶煉銷售下降所致。

I want to reaffirm that we remain focused on completing the Aripuanã ramp up and consequently reaching the nameplate capacity in the second quarter of this year, maintaining our operational and cost optimization discipline, aiming to generate positive cash flow throughout this year on advancing with a formal approval process for the Cerro de Pasco integration project.

我想重申，我們仍然專注於完成 Aripuan 的產能提升，從而在今年第二季度達到銘牌產能，保持我們的營運和成本優化原則，旨在在今年全年產生正現金流，並推進Cerro de Pasco 整合專案的正式審批流程。

Now I would like to go over the progress of our ESG initiatives. 2023 accurately portrays our efforts to strengthen our sustainable business model, Nexa registered its carbon emissions on the LME Passport, the London Metal Exchange platform, which promotes sustainability and transparency across the base metal sector.

現在我想介紹一下我們ESG舉措的進展。 2023 年準確地描繪了我們為加強永續商業模式所做的努力，Nexa 在倫敦金屬交易所平台 LME Passport 上登記了其碳排放量，該平台促進了整個基本金屬行業的可持續性和透明度。

Nexa (inaudible) production has one of the lowest carbon footprints recorded in the sector with an emission intensity of 0.36 tonnes of CO2 equivalent consider (technical difficulty) one and two. This achievement positions Nexa as one of the global leaders in carbon reduction within the Zinc industry. Moreover, CDP carbon disclosure project recently concluded its evaluation cycle for the year 2023 and announce that Nexa's rating in the Climate Change questionnaire was upgraded changing from C to B. This recognition is the result of our efforts, disclosure and transparency related to governance, strategy, risk management, metrics and targets.

Nexa（聽不清楚）的生產是該行業中碳足跡最低的生產之一，考慮（技術難度）一和二時，排放強度為 0.36 噸二氧化碳當量。這項成就使 Nexa 成為鋅產業碳減排領域的全球領導者之一。此外，CDP碳揭露計畫最近結束了2023年的評估週期，並宣布Nexa在氣候變遷問卷中的評級從C升級為B。這種認可是我們在治理、策略方面的努力、揭露和透明度的結果、風險管理、指標和目標。

Now moving to slide number four. Regarding the operating performance of the mining segment, you can see that Zinc production increased to 90,000 tons in the fourth quarter of '23, up 21% year over year, mainly explained by higher production at the Aripuanã mine, combined with higher production from the Cerro Lindo mine.

現在轉到第四張投影片。關於採礦部門的經營業績，您可以看到，2023 年第四季鋅產量增加至 9 萬噸，年增 21%，這主要是由於 Aripuanâ 礦產量增加，加上來自林多山礦場。

Compared to the third quarter of '23, Zinc production was up 3%, explained by higher volumes from the Cerro Lindo, Atacocha and Morro Agudo mines. In addition to additional production from the Aripuanã ramp up. It is important to highlight that in 2023, production was up 12% compared to 2022.

與 23 年第三季相比，鋅產量增加了 3%，原因是 Cerro Lindo、Atacocha 和 Morro Agudo 礦場的產量增加。除了 Aripuanà 產能的增加之外。需要強調的是，2023 年產量比 2022 年增加了 12%。

In relation to cash cost in the fourth quarter of '23, it increased to $0.45 per pound compared to $0.20 per pound in the fourth quarter of '22, mainly explained by lower by-product grades from our Peruvian mines, higher operational costs in El Porvenir and higher treatment charges.

就23 年第四季的現金成本而言，與22 年第四季的每磅0.20 美元相比，現金成本增加至每磅0.45 美元，這主要是由於我們秘魯礦山的副產品品位較低、埃爾的營運成本較高Porvenir 和更高的治療費用。

Compared to the third quarter of '23, mining cash cost increased by $0.1 per pound, mainly affected by lower by-product grades from Cerro Lindo and higher operational costs in El Porvenir due to the increase in mine development. That cost per ran of mine in the quarter was $48 per ton, up 3% year over year, explained by higher variable costs and up 10% quarter over quarter, also affected by high variable costs.

與2023年第三季相比，採礦現金成本每磅增加了0.1美元，主要受到Cerro Lindo副產品品位較低以及由於礦山開發增加導致El Porvenir營運成本上升的影響。本季每礦的成本為每噸 48 美元，年增 3%，原因是變動成本較高，季增 10%，也受到高變動成本的影響。

Now moving to a slide number five. Regarding the operating performance of the Smelting Segment, metal sales total 143,000 tons in the third of last year, down 14% from the fourth quarter of '22 and 7% compared to the third quarter of '23, mainly impacted by lower volumes in Cajamarquilla and Três Marias.

現在轉到第五張投影片。關於冶煉部門的經營業績，去年第三季金屬銷量總計143,000噸，比22年第四季下降14%，比23年第三季下降7%，主要受到卡哈馬基拉銷量下降的影響和特雷斯瑪麗亞斯。

In 2023, total sales were down 4% compared to 2022. The Smelting cash cost in the fourth quarter of '23 decreased to $1 per pound compared to the $1.20 in the fourth quarter of '22. This decrease was mainly explained by lower Zinc prices, reducing the cost of raw materials purchase, which was partially offset by lower by-product contribution.

2023 年總銷售額較 2022 年下降 4%。23 年第四季的冶煉現金成本下降至每磅 1 美元，而 22 年第四季為 1.20 美元。這一下降主要是由於鋅價下跌，降低了原材料採購成本，但副產品貢獻下降部分抵消了下降。

Compared to a third quarter of '23, cash-cost was down [$0.01] per pound. Our conversion cost was $0.29 per pound compared to $0.25 per pound in the fourth quarter due to higher maintenance and energy costs compared to the third quarter of '23, conversion cost was relatively flat.

與 2023 年第三季相比，每磅現金成本下降了 [0.01 美元]。我們的轉換成本為每磅 0.29 美元，而第四季為每磅 0.25 美元，因為與 23 年第三季相比，維護和能源成本更高，轉換成本相對持平。

Now moving to slide number six, where we will talk about Aripuanã. In the fourth quarter activities in Aripuanã have progress as planned, with our efforts concentrated on further improving plant stabilization and reliability as well as increasing metallurgical performance. In December, we had five days of downtime in the plant to address replacement of equipment together with the execution of important de-bottlenecking task force activities.

現在轉到第六張幻燈片，我們將在這裡討論 Aripuanà。第四季度，Aripuanà 的活動按計劃取得進展，我們的努力集中在進一步提高工廠的穩定性和可靠性以及提高冶金性能。12 月，我們的工廠停工了五天，以解決設備更換問題以及執行重要的消除瓶頸工作小組活動。

Considering this downtime, the average plant capacity utilization in the quarter was 61%, 5% higher compared to the previous quarter. In the last quarter, we also saw improvements in Zinc recovery, while concentrate grades and quality were stable. As a result, there was an increase in production compared to the previous quarter.

考慮到這次停機時間，本季工廠平均產能利用率為 61%，比上一季高出 5%。上季度，我們也看到鋅回收率有所改善，而精礦品位和品質保持穩定。因此，與上一季相比，產量有所增加。

Our exploration plan in Aripuanã in the fourth quarter also progress as expected, and the results confirmed the continuity of mineralization with high polymetallic content showing that we have a robust mining asset with a potential to operate for many years. We have started 2024 with positive progress that keep us confident in estimating the completion of the ramp-up in the second quarter of this year. In the next two slides, we will see more details on the operational performance of Aripuanã.

我們在第四季度在 Aripuanà 的勘探計劃也按預期進展，結果證實了多金屬含量高的礦化的連續性，表明我們擁有強大的採礦資產，具有多年運營的潛力。2024 年伊始，我們就取得了積極進展，這讓我們對預計今年第二季完成產能提升充滿信心。在接下來的兩張幻燈片中，我們將看到有關 Aripuanâ 營運績效的更多詳細資訊。

Now moving to slide number seven, starting with our planned downtime in the upper left side, we noted a decrease of 6% quarter over quarter, considering the five days planned downtime, which shows improvements in the stabilization of the plant. Average plant capacity utilization increased to 61% versus 56% in the third quarter.

現在轉到第七張投影片，從左上角的計畫停機時間開始，我們注意到考慮到五天的計畫停機時間，環比下降了 6%，這表明工廠的穩定性有所改善。工廠平均產能利用率從第三季的 56% 增至 61%。

In the lower left side, we can see the progress of the Zinc recovery, which reached 66% in December versus 59% in September when compared looking at the January 2024 number, we see that the recovery ratio improved even further reaching 73%. Copper and Lead recoveries also improved significantly in January, showing a strong positive trends.

在左下角，我們可以看到鋅回收率的進展，12 月達到 66%，而 9 月為 59%，與 2024 年 1 月的數據相比，我們看到回收率進一步提高，達到 73%。1月銅和鉛的回收率也顯著改善，呈現強勁的正面趨勢。

Now moving to a slide number eight, on slide number eight, you can see that due to all the improvements mentioned above compared to the third quarter of 2023, Zinc production was 27% higher, reaching 7,400 tons (sic- see presentation "7.4 kt") in the fourth quarter, Copper production increased 31%, while Lead and Silver production grew up 49% and 42% respectively. These improvements show that we are in the right direction to achieve nameplate capacity in the second quarter of this year.

現在轉到第八張投影片，在第八張投影片上，您可以看到，由於上述所有改進，與2023 年第三季相比，鋅產量增加了27%，達到7,400 噸（原文如此，請請參閱簡報「7.4 kt」）」）第四季度，銅產量增加了31%，而鉛和銀產量分別成長了49%和42%。這些改進表明我們正朝著正確的方向前進，以在今年第二季度實現銘牌產能。

Now moving to a slide number nine. On this slide, I would like to highlight that we continue progressing with our exploration program. The 2023 plan shows indications of positive results for both brownfield and greenfield activities. In Cerro Lindo, the exploratory drilling program focused on extending the mineralization of the OB-8 and OB-9 mineralized bodies as well as identifying new mineralized zones at the Pucasalla target and its extensions.

現在轉到第九張投影片。在這張投影片上，我想強調我們的探索計劃繼續取得進展。2023 年計畫顯示棕地和綠地活動都取得了正面成果。在 Cerro Lindo，勘探鑽探計劃的重點是擴大 OB-8 和 OB-9 礦化體的礦化範圍，以及在 Pucasalla 目標及其延伸區確定新的礦化區。

Vazante, the focus was on expanding existing mineralized zones in the northern and southern parts of the mine. In Aripuanã the program was directed at increasing mineral resources at Babaçu mineralized body. And started drilling other muscle at the Massaranduba targets. Both targets have solid indications of potential resource addition with attract content.

Vazante 的重點是擴大礦區北部和南部的現有礦化區。在阿利普阿，該計畫旨在增加巴巴烏礦體的礦產資源。並開始在馬薩蘭杜巴目標處鑽探其他肌肉。這兩個目標都有明確的跡象表明潛在的資源增加和吸引內容。

Finally at the Cerro Pasco Complex, the exploration program also showed relevant results. The program focus mainly on the integration targets, which I will describe in detail in the next slide.

最後，在塞羅帕斯科綜合體，勘探計畫也顯示了相關成果。該計劃主要關注整合目標，我將在下一張幻燈片中詳細描述。

In the slide number 10, you can see some of the exploration program results in the Pasco Complex, especially in the target integration that keep suggesting potential resource extension. The target integration is an exploration area located between the El Porvenir and Atacocha underground mines.

在第 10 張投影片中，您可以看到 Pasco Complex 的一些勘探計劃結果，特別是在目標整合方面，不斷暗示潛在的資源擴展。整合目標是位於El Porvenir 和Atacocha 地下礦場之間的勘探區域。

The results of this exploration confirmed the continuity of mineralization at deeper levels with high metal content. We will continue to explore this area with the aim of not only increasing the mineral inventory, but also increasing the geological potential.

此次勘探結果證實了更深層礦化的連續性，金屬含量高。我們將繼續勘探該地區，目的不僅是增加礦產庫存，而且是增加地質潛力。

Now I will turn over the call to José Carlos del Valle, our CFO, who will present our financial results. José, please go ahead.

現在我將把電話轉給我們的財務長何塞·卡洛斯·德爾瓦萊，他將介紹我們的財務表現。何塞，請繼續。

Thank you, Ignacio. Good morning to everyone. I will continue on Slide 11. As you can see, beginning with the chart on your upper left, total consolidated net revenues for the fourth quarter decreased by 19% year over year, mainly due to lower Zinc LME prices and lower Smelting sales volumes. Compared to the third quarter of 2023, net revenues decreased by 3% also as a result of lower Smelting sales volumes, but partially offset by higher Zinc prices and higher production in the mining segment.

謝謝你，伊格納西奧。各位早安。我將繼續幻燈片 11。正如您所看到的，從左上角的圖表開始，第四季度的綜合淨收入總額比去年同期下降了 19%，主要是由於 LME 鋅價格下降和冶煉銷售下降。與 2023 年第三季相比，淨收入下降了 3%，也是由於冶煉銷售下降，但部分被鋅價上漲和採礦部門產量增加所抵銷。

In 2023, consolidated net revenues reached $2.6 billion, down by 15% compared to 2022.

2023 年，合併淨收入達 26 億美元，比 2022 年下降 15%。

In terms of profitability, consolidated adjusted EBITDA in the first quarter of 2023 was $105 million compared to $120 million in the fourth quarter of 2022. This lower performance was mainly explained by lower Smelter sales volumes and lower Zinc price. Compared to the third quarter of 2023, adjusted EBITDA increased by 28%, mainly due to higher Zinc prices and higher mining production, which was partially offset by lower Smelter sales volumes. In 2023, consolidated adjusted EBITDA reached $391 million, down 49% from 2022. This is also explained by the reasons I mentioned a moment ago.

就獲利能力而言，2023 年第一季綜合調整後 EBITDA 為 1.05 億美元，而 2022 年第四季為 1.2 億美元。業績下降的主要原因是冶煉廠銷售下降和鋅價下降。與 2023 年第三季相比，調整後 EBITDA 成長了 28%，主要是由於鋅價上漲和採礦產量增加，但冶煉廠銷售下降部分抵消了這一影響。2023 年，綜合調整後 EBITDA 達到 3.91 億美元，較 2022 年下降 49%。這也可以用我剛才提到的原因來解釋。

Now let's move to the next slide, number 12. On the top left of the slide, we can see that in 2023, we invested $309 million in CapEx, of which sustaining investments, including mine development, totaled $293 million. The total investment in the fourth quarter was $111 million, leaving us within our guidance for the full year.

現在讓我們轉到下一張投影片，第 12 號投影片。在投影片的左上角，我們可以看到，2023年，我們在資本支出上投資了3.09億美元，其中包括礦場開發在內的持續投資總計2.93億美元。第四季的總投資為 1.11 億美元，符合全年預期。

With respect to mineral exploration and project evaluation, we invested a total of $92 million, of which $52 million were related to mineral exploration and mine development to support the exploration activities that Ignacio presented just a moment ago. The total invested in the fourth quarter was $24 million, this was $8 million below our guidance as we de-prioritize some activities as a result of the cash optimization program that we developed throughout the year.

在礦產勘探和專案評估方面，我們總共投入了9,200萬美元，其中5,200萬美元用於礦產勘探和礦場開發，以支持伊格納西奧剛才介紹的勘探活動。第四季的總投資為 2,400 萬美元，比我們的指導方針低了 800 萬美元，因為我們根據全年制定的現金優化計劃取消了一些活動的優先順序。

Now let's move on to the next slide, in which I will discuss our cash. For 2023 starting from the $391 million of adjusted EBITDA net of nonoperational items, we paid $170 million related to interest and tax and spent $309 million in total CapEx in our operations, including Aripuanã. Additionally, loans and investments and dividends received had a positive net impact of $66 million, (inaudible) to a new $50 million export financing line that became effective in December.

現在讓我們轉到下一張投影片，我將在其中討論我們的現金。2023 年，從扣除非營運項目的 3.91 億美元調整後 EBITDA 開始，我們支付了 1.7 億美元的利息和稅費，並在我們的營運（包括 Aripuanâ）中花費了 3.09 億美元的總資本支出。此外，貸款、投資以及收到的股息對 12 月生效的新的 5,000 萬美元出口融資額度產生了 6,600 萬美元的正面淨影響（聽不清楚）。

Furthermore, dividend state had a negative impact of $49 billion, including the payment of share premium to Nexa shareholders under contractual dividends paid to non-controlling interests. We had a positive impact of $8 million due to the effect of foreign exchange in our cash and cash equivalents driven by the appreciation of the Brazilian Real against the US dollar during the period.

此外，股息狀態產生了 490 億美元的負面影響，包括根據支付給非控制權益的合約股息向 Nexa 股東支付的股份溢價。由於巴西雷亞爾兌美元升值，外匯對我們的現金和現金等價物的影響，我們產生了 800 萬美元的正面影響。

Additionally, we had a positive contribution of $101 million in working capital as a result of the efforts deployed throughout 2023, which focused on shortening our working capital cycle. Combining all these effects, our free cash flow in 2023 was negative $41 million.

此外，由於 2023 年全年的努力，我們也積極貢獻了 1.01 億美元的營運資金，重點是縮短我們的營運資金週期。綜合所有這些影響，我們 2023 年的自由現金流為負 4,100 萬美元。

Finally, on the top right of this slide, we can see the evolution of our free cash flow generation quarter over quarter. Our operational and cost discipline, together with the improvements in working capital throughout the year enabled us to generate positive cash flow in the last three quarters of 2023 despite the external and internal challenges we faced.

最後，在這張投影片的右上角，我們可以看到自由現金流產生季度與季度的演變。儘管面臨外部和內部挑戰，我們的營運和成本紀律以及全年營運資金的改善使我們能夠在 2023 年最後三個季度產生正現金流。

Now moving to Slide 14. On this slide, you can see that our liquidity remains healthy and then we continue to present a sound balance sheet with an extended debt maturity profile. By the end of 2023, our available liquidity was approximately $788 million, including our undrawn sustainability-linked revolving credit facility of $320 million.

現在轉到投影片 14。在這張投影片上，您可以看到我們的流動性保持健康，然後我們繼續提供健全的資產負債表和延長的債務期限。截至 2023 年底，我們可用的流動資金約為 7.88 億美元，其中包括未提取的與永續發展相關的循環信貸額度 3.2 億美元。

Regarding our debt, it currently has an average maturity of 3.8 years and a 6.1% average cost. It is important to mention that as of December 31, our total cash is sufficient to cover that payment or all along the obligations maturing in the next three years. Nevertheless, we are always evaluating options to continue to keep a maturity profile that is in line with a long life of our mines and at that most competitive costs.

至於我們的債務，目前平均期限為 3.8 年，平均成本為 6.1%。值得一提的是，截至 12 月 31 日，我們的現金總額足以支付該付款或未來三年到期的所有債務。儘管如此，我們始終在評估各種選擇，以繼續保持符合我們礦山的長壽命和最具競爭力的成本的成熟度。

Finally, despite the $43 million increase in our cash balance quarter over quarter. Leverage, which is measured by the net debt to adjusted EBITDA ratio increased from 3.1 to 3.2 times in the last 90 days of (inaudible) This is mainly because of lower adjusted EBITDA in the last 12 months, driven by the prevailing trend of lower Zinc prices year over year.

最後，儘管我們的現金餘額比上季增加了 4,300 萬美元。槓桿率（以淨債務與調整後EBITDA 比率衡量）在過去90 天內從3.1 倍增加到3.2 倍（聽不清楚），這主要是由於過去12 個月的調整後EBITDA 較低，而鋅的普遍趨勢較低。價格逐年上升。

Moving now to Slide 15 regarding market fundamentals. It is worth noting that in the first quarter of 2023, LME Zinc price averaged [2,498 thousand per tons], down by 17% from the fourth quarter of 2022. The main reason for the decline was a combination of the bullish scenario in 2022, mainly driven by the Chinese post-pandemic stimulus and the metal production cuts in Europe due to high energy prices and lower global demand in 2023.

現在轉到有關市場基本面的幻燈片 15。值得注意的是，2023年第一季LME鋅均價[249.8萬/噸]，較2022年第四季下跌17%。下跌的主要原因是2022年看漲情景的綜合作用，主要是由中國疫情後的刺激措施以及歐洲因能源價格高企和2023年全球需求下降而削減金屬產量所推動。

This driven by persistent high interest rates in key economies and lower than expected performance of key Chinese Zinc consuming sectors like the property market. Compared to the third quarter of 2023, LME Zinc prices were up 3%, mainly related to the expectation of the Federal Reserve rate cuts in 2024 and to stronger demand expected in China.

這是由於主要經濟體的持續高利率以及房地產市場等中國主要鋅消費產業的表現低於預期。與2023年第三季相比，LME鋅價上漲3%，主要與聯準會2024年降息預期以及中國需求強勁預期有關。

LME Copper price averaged $8,159 per ton in the fourth quarter of 2023, up by 2% from the fourth quarter of 2022 and down by 2% from the third quarter of 2023, also presenting high sensitivity to the Chinese economy throughout 2023.

2023年第四季LME銅均價8,159美元/噸，較2022年第四季上漲2%，較2023年第三季下降2%，也對2023年全年中國經濟表現高度敏感度。

Looking ahead to 2024, metal prices are expected to be supported by easing monetary policy in the US and macroeconomic stimulus in China. In the mid to long term, the fundamental outlook for both Zinc and Copper prices remains positive. Additionally, investments in construction, infrastructure and in the automotive sector will continue to have a positive impact on demand expectations for base metals.

展望2024年，金屬價格預計將受到美國寬鬆貨幣政策和中國宏觀經濟刺激的支撐。從中長期來看，鋅價和銅價的基本面前景依然樂觀。此外，建築、基礎設施和汽車行業的投資將繼續對基本金屬的需求預期產生積極影響。

On the supply side for both Copper and Zinc, we anticipate that we will continue to see challenges to renew significant production online to fulfill expected demand.

在銅和鋅的供應方面，我們預計我們將繼續面臨在線更新大量生產以滿足預期需求的挑戰。

Now I will hand over the presentation back to Ignacio for his final remarks.

現在我將把簡報交還給伊格納西奧，讓他作最後的發言。

Thank you, José Carlos. On our last slide, I would like to close this presentation by mentioning our priorities for 2024. As we look ahead to this year, we anticipate that volatility across commodities may persist for a while and continue to put pressure on our business.

謝謝你，何塞·卡洛斯。在最後一張投影片中，我想透過提及 2024 年的優先事項來結束本次簡報。展望今年，我們預計大宗商品的波動可能會持續一段時間，並繼續對我們的業務造成壓力。

However, we will remain focused on our priorities, including the completion of the Aripuanã, Pasco integration project, in addition to our commitment to always seek alternatives to optimize costs, CapEx on corporate expenses as well as strengthening our balance sheet.

然而，我們將繼續專注於我們的優先事項，包括完成 Aripuanâ、Pasco 整合項目，此外我們承諾始終尋求替代方案來優化成本、企業支出資本支出以及加強我們的資產負債表。

We will continue our journey as we foster the creation of shared value through operational excellence, environmental protection and the integral development of our communities within our framework of ethics transparency and responsibility.

我們將繼續我們的旅程，在道德透明度和責任的框架內，透過卓越營運、環境保護和社區整體發展，促進創造共享價值。

In summary, although we expect 2024 to be a challenging year. We are confident that our business and the long-term fundamentals of our industry will be key to sustain our position. That concludes our remarks.

總而言之，儘管我們預計 2024 年將是充滿挑戰的一年。我們相信，我們的業務和產業的長期基本面將是維持我們地位的關鍵。我們的發言到此結束。

Thank you all for attending this presentation. Operator, we are ready to open the floor for questions, please.

感謝大家參加這次演講。接線員，我們已準備好開始提問。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

[Camillo Barter, Bradesco].

[卡米洛·巴特，布拉德斯科]。

Hi, good morning and thanks for the presentation. Just a quick question on the cost side. If you could provide some how you see costs evolving throughout the year for the semesters? And if you also could provide some color on free cash flow expectations, it would be great. Thank you.

你好，早安，謝謝你的演講。只是關於成本方面的一個簡單問題。您能否提供一些您對全年學期成本變化的看法？如果您還可以提供一些有關自由現金流預期的信息，那就太好了。謝謝。

Well regarding cost and you saw in the presentation, we were able to keep cost flat in our (inaudible) in Brazil. And this was a, I would say, a combination of higher throughput on a measures were only reducing fixed costs, incremental activity in 2023, we reduce around 500 people in only a our operations and regardless a, let's say, inflation issues, especially in Brazil on a (inaudible) Peru on regarding some FX impact, especially in Brazil, we were able to keep costs flat.

關於成本，您在演示中看到，我們能夠在巴西（聽不清楚）保持成本不變。我想說，這是一項更高吞吐量措施的組合，僅減少固定成本，到 2023 年增量活動，我們僅在我們的營運中減少約 500 人，而不管通貨膨脹問題，特別是在巴西（聽不清楚）秘魯受到一些外匯影響，特別是在巴西，我們能夠保持成本不變。

However, there were some a cost that we couldn't control because we needed to develop some mines such as El Porvenir, we have been taking additional measures for 2024. So the idea is that we also keep our cost of growth flat this year. We are very committed in making sure that all details on the mines all these measures that we take our willing follow-up very closely. So we could -- we are confident that we might also have this under control for 2024.

然而，有一些成本是我們無法控制的，因為我們需要開發一些礦山，例如 El Porvenir，我們一直在為 2024 年採取額外措施。因此，我們的想法是今年我們的成長成本也保持不變。我們非常致力於確保有關礦山的所有細節以及我們願意非常密切地採取的所有這些措施。因此，我們有信心在 2024 年也能控制住這種情況。

Thank you. And can you comment on free cash flow expectations as well?

謝謝。您能否對自由現金流預期發表評論？

Well, free cash flow expectations, they will depend on prices. I would say that this year compared to last year, we needed we had two effects on cash flow. The first one was Zinc prices, especially because Zinc prices with no heavy on the second quarter and the second one is that a the ramp up of Aripuanã it was delayed and this cost us a lot of money.

好吧，自由現金流預期將取決於價格。我想說，與去年相比，今年我們需要對現金流產生兩個影響。第一個是鋅價，特別是因為第二季鋅價並不沉重，第二個是 Aripuan 的成長被推遲，這讓我們損失了很多錢。

We're spending Aripuanã around the $200 million last year. And you see that I think you'll see that cash flow generation that we had in the third last quarters that was positive. It was something that we feel proud of. In 2024, as we said a well, prices remain low, but that Aripuanã is say -- is in the right place to be a nameplate capacity in the second quarter.

去年我們在 Aripuan 上花了大約 2 億美元。你會看到，我認為你會看到我們在最後第三個季度產生的現金流量是正面的。這是我們感到自豪的事。到 2024 年，正如我們所說的那樣，價格仍然很低，但 Aripuan 所說的——在第二季度達到銘牌產能是正確的。

So the idea is that, if prices go up a little bit, we expect that is the case. We are in the bottom of the price cycle, we may generate some cash flow in 2024. How you said that this cash flow for us is a priority because we have to start reducing our debt, debt went up we are aware of the leverage we have. And then that went up because of Aripuanã.

所以我們的想法是，如果價格上漲一點，我們預期情況就是如此。我們正處於價格週期的底部，2024年我們可能會產生一些現金流。你說現金流對我們來說是一個優先事項，因為我們必須開始減少債務，債務增加了，我們知道我們擁有的槓桿作用。然後，由於 Aripuanà，這一數字有所上升。

So that -- now that Aripuanã is being completed and it's going to start generating cash flow and with a combination of cash flow for the other mines, we believe that it will fund a help on rises. The companies is really in a good position to generate cash.

因此，現在 Aripuan 已竣工，它將開始產生現金流，並結合其他礦場的現金流，我們相信它將為價格上漲提供資金幫助。這些公司確實處於產生現金的有利位置。

And just to confirm Aripuanã break-even is expected in the first semester or the second one?

只是為了確認 Aripuan 預計在第一學期或第二學期達到收支平衡？

Yes, no -- it no, it we to give you some numbers. We are now producing at a rate of 220 hours per ton a day -- I'm sorry, an hour on the nameplate capacity is 280 on a -- we are very close on that February and January have been good months. Recoveries are high in the three metals, a quality of concentrate is also a stable and good. So second quarter with the achieving nameplate capacity, we are very close on that. So we are confident that in the second quarter, we will be able to achieve that time.

是的，不——不，我們要給你一些數字。我們現在的生產速度是每天每噸 220 小時——抱歉，銘牌上的產能是 280 小時——我們非常接近 2 月和 1 月都是好月份。三種金屬的回收率都很高，精礦的品質也穩定良好。因此，隨著第二季達到銘牌產能，我們非常接近這個目標。所以我們有信心在第二季能夠實現這個目標。

I mean, breakeven?

我的意思是，收支平衡？

Yeah, breakeven, yes, yes (inaudible) capacity. We are working on controlling our costs. So our (inaudible) capacity is going to be breakeven as well. So second quarter, it should we achieve -- we should achieve breakeven on cash flow, yes.

是的，損益平衡，是的，是的（聽不清楚）容量。我們正在努力控製成本。因此，我們的（聽不清楚）產能也將達到損益平衡。所以第二季度，我們應該實現——我們應該實現現金流盈虧平衡，是的。

Thank you very much, and thank you for the presentation.

非常感謝，也感謝您的介紹。

(Operator Instructions) There are no more questions in the question queue. I'll hand it back to Rodrigo for any webcast questions they may have.

（操作員說明） 問題佇列中沒有更多問題。我會將其交還給羅德里戈，以解答他們可能提出的任何網路廣播問題。

Thank you, operator. Good morning, everyone. We're going to start with a question from Omar of (inaudible) of Prima AFP.

謝謝你，接線生。大家，早安。我們將從法新社 Prima 的奧馬爾（聽不清楚）提出的問題開始。

The first question is regarding, is the $300 million is your annual sustaining CapEx?

第一個問題是，3 億美元是您的年度持續資本支出嗎？

Yeah -- no, yes, $300 million is that companies that cover more in our sustaining CapEx. Mortgage is [230 or 240]. And the rest is additional CapEx that we spend on explorations and other areas --

是的，不，是的，3 億美元是那些在我們的維持資本支出中承擔更多費用的公司。抵押貸款是[230或240]。其餘的則是我們用於勘探和其他領域的額外資本支出--

And the second question also from Omar, it's up -- what is the CapEx for past integration project? And when do you expect to approve the project?

第二個問題也來自奧馬爾，現在是──過去整合專案的資本支出是多少？您預計什麼時候會批准該項目？

That is a good question. We have been talking about integration during the last year. We expect that CapEx and we are still fine-tuning that's way we have in Aripuanã project to be around $150 million to $200 million. This comprises a new (inaudible) system that goes away (inaudible) paying them in mind we were (inaudible) between the two underground mines Atacocha and El Porvenir some upgrade of the shaft on some other developments, especially in backwards.

這是一個好問題。去年我們一直在談論整合。我們預計資本支出約為 1.5 億至 2 億美元，而且我們仍在對 Aripuan 項目中的方式進行微調。這包括一個新的（聽不清楚）系統，該系統消失了（聽不清楚）支付給他們，我們在阿塔科查和埃爾波韋尼爾兩個地下礦井之間（聽不清楚）對其他一些開發項目的豎井進行了一些升級，特別是在向後。

So we are finalizing the studies here and we expect to approve this project in the coming months. The idea that we have a we work on where -- we finish all these studies. We have more certainty on the investments. So we might approve this probably in the second quarter or towards the middle of the year. So we can communicate to the market. It was will happy in this very important point.

因此，我們正在完成這裡的研究，並預計在未來幾個月內批准該專案。我們的想法是我們在哪裡工作——我們完成所有這些研究。我們對投資有了更多的確定性。因此，我們可能會在第二季或年中批准這一點。這樣我們就可以與市場溝通。在這非常重要的時刻，我們會感到高興。

And we have another question from on Heringer cube Cubic for MetLife is, I think, one that reaches full capacity in the second partner, '24. Why does the guidance show increase production over the next few years?

我們還有另一個來自 Heringer 立方體的問題，我認為大都會人壽的立方體是在第二個合作夥伴 '24 中達到滿負荷的。為什麼指導意見顯示未來幾年產量會增加？

Yeah, this is because the first quarter a product was not on 100% on the second quarter we achieved nameplate capacity, we are also not on a 100%. So I would say that if you extrapolate the second half of this year through the other years you will achieve the number that we are showing for '25 and '26.

是的，這是因為第一季的產品沒有達到 100%，第二季我們達到了銘牌產能，我們也沒有達到 100%。因此，我想說，如果您透過其他年份推斷今年下半年，您將獲得我們顯示的 '25 和 '26 的數字。

We have another question from Joselin Jensen. When do you expect to start the leveraging?

我們還有約瑟林詹森 (Joselin Jensen) 提出的另一個問題。您預計什麼時候開始槓桿化？

(inaudible) we expect delivery in this year. As I said, this is a priority, a cash flow we are in good shape in terms of what we can control in our mines and the smelters. We are a working day impact on production costs and CapEx, but we are exposed to prices, those same prices did not began the year in a very good pace. So hopefully and we are confident that they will recover in the following quarter. So with that cash flow that we will start getting the idea (inaudible) delivery in the home.

（聽不清楚）我們預計今年交貨。正如我所說，這是一個優先事項，就我們可以控制的礦場和冶煉廠而言，我們的現金流狀況良好。我們對生產成本和資本支出有一個工作日的影響，但我們面臨價格的影響，這些價格在今年開始時並沒有以非常好的速度增長。因此，我們希望他們將在下個季度復甦。因此，有了現金流，我們將開始將這個想法（聽不清楚）交付到家裡。

We have a question from Rodrigo Murieta from ASP (inaudible), are you evaluating measures to decrease costs of (inaudible) going forward?

ASP 的 Rodrigo Murieta 向我們提出了一個問題（聽不清楚），您是否正在評估降低（聽不清楚）未來成本的措施？

Yes, (inaudible) challenge federal employees. That is a big underground mine is probably one of the largest underground mines in general, yeah, on a cost per ton of round is $40 and (inaudible) in general lingo (inaudible) we have to develop 35 kilometers per year. So a and we have pressures on a given that the mine is extending.

是的，（聽不清楚）挑戰聯邦僱員。那是一個大型地下礦井，可能是最大的地下礦井之一，是的，每噸圓形礦井的成本為 40 美元，（聽不清楚）一般行話（聽不清楚）我們每年必須開發 35 公里。因此，鑑於礦井正在擴建，我們面臨壓力。

We have pressures on all of these so we have been managing in the last two years to keep that these $40flat. And this has been a challenge and as I say, we have some a consolidation of contractors. We have some measures of volatility, reducing of people we have find measures reducing goals. We have been optimizing ours a short bit, though, we have support of the mine and maybe automation.

我們在所有這些方面都面臨著壓力，因此我們在過去兩年中一直在努力保持這 40 美元的不變。這是一個挑戰，正如我所說，我們對承包商進行了一些整合。我們有一些波動性、減少人員的措施，我們找到了減少目標的措施。不過，我們已經對我們的系統進行了一些優化，我們得到了礦山的支持，也許還得到了自動化的支持。

So for us to keep that's a cost per ton below a $40 is a challenge. But we can -- we believe that we can achieve that during 2024, 2025, we'll see. But with the measures we take the idea is that we keep our cost below $40.

因此，將每噸成本保持在 40 美元以下對我們來說是一個挑戰。但我們可以——我們相信我們可以在 2024 年、2025 年實現這一目標，我們拭目以待。但透過我們採取的措施，我們的想法是將成本控制在 40 美元以下。

We have another question. What is the expected CapEx that you are considering for the integration project impossible?

我們還有另一個問題。您考慮的整合項目的預期資本支出是多少？

Yes. As I said before, between 152% (technical difficulty) , I already explained what are the components of that. We are still assessing how are we want to finance that, this CapEx is going to be investing three years. So a part of the cash flow generation of several passports will not be allocated to this. And the rest we are assessing it might be some debt or some other cash flow that we might come from our operations. So (inaudible) we will communicate that once a we go forward.

是的。正如我之前所說，在 152%（技術難度）之間，我已經解釋了其中的組成部分。我們仍在評估我們希望如何融資，這筆資本支出將投資三年。所以幾本護照產生的現金流的一部分不會分配給這個。我們正在評估的其餘部分可能是我們的業務可能產生的一些債務或其他現金流。所以（聽不清楚）一旦我們繼續前進，我們就會傳達這一點。

We have another question for [Hernan], can you comment on the alternatives for the more of Google asset

我們還有一個問題要問 [Hernan]，您能否對更多 Google 資產的替代方案發表評論

Yeah, but (inaudible) is the marginal asset for us is a very small asset, a digital transformation and has a low life of mine. So I can -- I cannot comment on specific actions, but what I can tell you that we are assessing in detail. What are our options in more I will, we have a provide a guidance for production for 2024. but not for 2025 and '26 because as I said, this is a marginal asset and we are assessing the options as soon as we have some a clarity on that we will come back to the market and communicate what are the latest steps on this asset.

是的，但是（聽不清楚）對我們來說，邊際資產是一項非常小的資產，是數位轉型，而且我的壽命很短。所以我可以——我無法評論具體行動，但我可以告訴你，我們正在詳細評估。我們有什麼更多的選擇，我們提供了2024 年的生產指導。但不是2025 年和26 年的指導，因為正如我所說，這是一項邊際資產，一旦我們有了一些建議，我們就會評估這些選擇。明確我們將回到市場並傳達該資產的最新步驟。

There are no more questions in the queue. This concludes our question-and-answer session. We will now hand the call over to Ignacio for his final remarks. Mr. Rosado, please go ahead.

隊列中沒有更多問題。我們的問答環節到此結束。現在我們將把電話轉交給伊格納西奧，讓他發表最後的演講。羅薩多先生，請繼續。

A Thank you, everyone, for attending. This has been a 2023 has been a very challenging year as I was saying Aripuanã, (inaudible) cash flow, prices have not been there a are we, as I said, we believe that we are in the bottom of the cycle and we are hoping that this year is already there, the evolution of Aripuanã and all dimensions and we have taken we sell is generating cash flow for this year.

A 謝謝大家的出席。2023 年是非常具有挑戰性的一年，正如我所說的 Aripuanâ、（聽不清）現金流、價格還沒有出現，正如我所說，我們相信我們正處於週期的底部，我們我們希望今年已經到來，Aripuanà 的演變和所有維度以及我們所採取的銷售正在為今年產生現金流。

We are committed to us we are committed on our cash discipline on a main issue that Aripuanã is up and running. We are hoping that we approved sooner integration rules of Apasco. This is important for the company because it will unlock a lot of value, a more a life of mine for sure because of all these resources (inaudible), but also more profitability during the economies of scale of the two assets. So we are committed to (inaudible) we're committed to all these measures, and we thank you for the time, and we look forward to speaking to you in at the end of April with our first quarter results.

我們致力於我們在 Aripuanâ 啟動和運行的主要問題上的現金紀律。我們希望盡快批准 Apasco 的整合規則。這對公司來說很重要，因為它將釋放大量價值，由於所有這些資源（聽不清楚），這肯定會釋放出更多的價值，而且在兩種資產的規模經濟期間也會帶來更多的盈利能力。因此，我們致力於（聽不清楚）我們致力於所有這些措施，感謝您抽出時間，我們期待在四月底與您交談我們的第一季業績。

Thank you very much and have a good day.

非常感謝您，祝您有美好的一天。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。