Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38256 |
Entity Registrant Name | NEXA RESOURCES S.A. |
Entity Central Index Key | 0001713930 |
Entity Incorporation, State or Country Code | N4 |
Entity Address, Address Line One | 37A, Avenue J.F. Kennedy |
Entity Address, City or Town | Luxembourg |
Entity Address, Country | LU |
Entity Address, Postal Zip Code | 1855 |
Local Phone Number | +352 28 26 37 27 |
Title of 12(b) Security | Common shares, each with par value of US$1.00 |
Trading Symbol | NEXA |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 132,438,611 |
Contact Personnel Name | Rodrigo Menck |
ICFR Auditor Attestation Flag | false |
Auditor Firm ID | 1351 |
Auditor Name | PricewaterhouseCoopers |
Auditor Location | Curitiba, Brazil |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 37A, Avenue J.F. Kennedy |
Entity Address, City or Town | Luxembourg |
Entity Address, Postal Zip Code | 1855 |
Local Phone Number | 352 28 26 37 27 |
Contact Personnel Name | Rodrigo Menck |
Consolidated income statement
Consolidated income statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
Cost of sales | (1,966,036) | (1,563,931) | (1,947,828) |
Gross profit | 656,074 | 386,998 | 384,887 |
Operating expenses | |||
Selling, general and administrative | (156,786) | (151,619) | (216,511) |
Mineral exploration and project evaluation | (85,043) | (57,201) | (119,063) |
Impairment of non-current assets | (557,497) | (142,133) | |
Other income and expenses, net | 31,948 | (19,164) | (18,206) |
Total operating expenses | (209,881) | (785,481) | (495,913) |
Operating income (loss) | 446,193 | (398,483) | (111,026) |
Net financial results | |||
Financial income | 11,472 | 11,168 | 31,054 |
Financial expenses | (142,275) | (159,759) | (117,399) |
Other financial items, net | (6,099) | (129,584) | (18,509) |
Net financial results | (136,902) | (278,175) | (104,854) |
Income (loss) before income tax | 309,291 | (676,658) | (215,880) |
Income tax | |||
Current | (122,081) | (63,192) | (46,382) |
Deferred | (31,123) | 87,344 | 104,746 |
Net income (loss) for the year | 156,087 | (652,506) | (157,516) |
Attributable to NEXA's shareholders | 114,332 | (559,247) | (145,135) |
Attributable to non-controlling interests | $ 41,755 | $ (93,259) | $ (12,381) |
Weighted average number of outstanding shares – in thousands | 132,439 | 132,439 | 132,622 |
Basic and diluted earnings (losses) per share – USD | $ 0.86 | $ (4.22) | $ (1.09) |
Consolidated statement of compr
Consolidated statement of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Net income (loss) for the year | $ 156,087 | $ (652,506) | $ (157,516) |
Other comprehensive loss, net of income tax - items that will not be reclassified to the income statement | |||
Cash flow hedge accounting | 488 | (98) | 1,332 |
Deferred income tax | (161) | 101 | (453) |
Translation adjustment of foreign subsidiaries | (64,575) | (138,840) | (21,115) |
Total other comprehensive income (loss), net of income tax, items that can be reclassified to the income statement | (64,248) | (138,837) | (20,236) |
Changes in fair value of financial liabilities related to changes in the Company’s own credit risk | (5,066) | (787) | |
Deferred income tax | (2,375) | (88) | |
Changes in fair value of investments in equity instruments | (2,632) | ||
Total other comprehensive income (loss), net of income tax, items that will not be reclassified to the income statement | (10,073) | (875) | |
Other comprehensive loss for the year, net of income tax | (74,321) | (139,712) | (20,236) |
Total comprehensive income (loss) for the year | 81,766 | (792,218) | (177,752) |
Attributable to NEXA’s shareholders | 43,828 | (682,132) | (172,453) |
Attributable to non-controlling interests | $ 37,938 | $ (110,086) | $ (5,299) |
Consolidated balance sheet
Consolidated balance sheet - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 743,817 | $ 1,086,163 |
Financial investments | 19,202 | 35,044 |
Derivative financial instruments | 16,292 | 16,329 |
Trade accounts receivables | 231,174 | 229,032 |
Inventory | 372,502 | 256,522 |
Recoverable income tax | 8,703 | 12,953 |
Other assets | 81,119 | 91,141 |
Total current assets | 1,472,809 | 1,727,184 |
Non-current assets | ||
Investments in equity instruments | 3,723 | |
Derivative financial instruments | 102 | 15,651 |
Deferred income tax | 168,205 | 221,580 |
Recoverable income tax | 4,223 | 13,110 |
Other assets | 98,584 | 93,131 |
Property, plant and equipment | 2,087,730 | 1,898,296 |
Intangible assets | 1,056,771 | 1,076,405 |
Right-of-use assets | 12,689 | 18,869 |
Total non-current assets | 3,432,027 | 3,337,042 |
Total assets | 4,904,836 | 5,064,226 |
Current liabilities | ||
Loans and financings | 46,713 | 146,002 |
Lease liabilities | 16,246 | 15,999 |
Derivative financial instruments | 22,684 | 5,390 |
Trade payables | 411,818 | 370,122 |
Confirming payables | 232,860 | 145,295 |
Dividends payable | 11,441 | 4,557 |
Asset retirement and environmental obligations | 31,953 | 33,095 |
Contractual obligations | 33,156 | 27,132 |
Salaries and payroll charges | 76,031 | 56,107 |
Tax liabilities | 65,063 | 43,630 |
Other liabilities | 41,317 | 29,230 |
Total current liabilities | 989,282 | 876,559 |
Non-current liabilities | ||
Loans and financings | 1,652,602 | 1,878,312 |
Lease liabilities | 3,393 | 9,690 |
Derivative financial instruments | 241 | 21,484 |
Asset retirement and environmental obligations | 232,197 | 242,951 |
Provisions | 36,828 | 30,896 |
Deferred income tax | 208,583 | 218,392 |
Contractual obligations | 114,076 | 138,893 |
Other liabilities | 23,354 | 25,805 |
Total non-current liabilities | 2,271,274 | 2,566,423 |
Total liabilities | 3,260,556 | 3,442,982 |
Shareholders’ equity | ||
Attributable to NEXA’s shareholders | 1,386,273 | 1,377,445 |
Attributable to non-controlling interests | 258,007 | 243,799 |
Total shareholders' equity | 1,644,280 | 1,621,244 |
Total liabilities and shareholders’ equity | $ 4,904,836 | $ 5,064,226 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of cash flows [abstract] | |||
Income (loss) before income tax | $ 309,291,000 | $ (676,658,000) | $ (215,880,000) |
Impairment loss of non-current assets | 557,497,000 | 142,133,000 | |
Depreciation and amortization | 258,711,000 | 243,925,000 | 317,892,000 |
Interest and foreign exchange effects | 143,496,000 | 157,806,000 | 63,286,000 |
Loss on sale of property, plant and equipment and intangible assets | 4,891,000 | 2,268,000 | 857,000 |
Changes in accruals | 21,325,000 | 13,159,000 | 3,854,000 |
Changes in fair value of loans and financings | (19,380,000) | 8,058,000 | 6,640,000 |
Changes in fair value of derivative financial instruments | 26,408,000 | 7,809,000 | 4,649,000 |
Contractual obligations | (25,729,000) | (20,679,000) | (25,660,000) |
GSF recovered costs | (19,407,000) | ||
Changes in operating assets and liabilities | (38,487,000) | 105,330,000 | (50,623,000) |
Cash provided by operating activities | 661,119,000 | 398,515,000 | 247,148,000 |
Interest paid on loans and financings | (121,112,000) | (69,906,000) | (71,804,000) |
Interest paid on lease liabilities | (1,415,000) | (1,385,000) | (3,259,000) |
Premium paid on bonds repurchase | (14,481,000) | ||
Income tax paid | (45,607,000) | (21,043,000) | (49,262,000) |
Net cash provided by operating activities | 492,985,000 | 291,700,000 | 122,823,000 |
Cash flows from investing activities | |||
Additions of property, plant and equipment | (485,204,000) | (323,688,000) | (396,672,000) |
Net sales (purchases) of financial investments | 20,076,000 | (47,522,000) | 54,710,000 |
Proceeds from the sale of property, plant and equipment | 2,210,000 | 2,014,000 | 6,570,000 |
Investments in equity instruments | (6,356,000) | ||
Net cash used in investing activities | (469,274,000) | (369,196,000) | (335,392,000) |
Cash flows from financing activities | |||
New loans and financings | 59,771,000 | 1,296,496,000 | 106,229,000 |
Debt issue costs | (178,000) | (9,921,000) | (255,000) |
Payments of loans and financings | (251,044,000) | (542,983,000) | (19,437,000) |
Prepayment of fair value debt | (90,512,000) | ||
Bonds repurchase | (214,530,000) | ||
Payments of lease liabilities | (9,827,000) | (9,100,000) | (13,280,000) |
Dividends paid | (52,344,000) | (55,964,000) | (113,389,000) |
Dividends not withdrawn | 1,009,000 | ||
Repurchase of the Company's own shares | (8,103,000) | ||
Acquisition of non-controlling interests | (71,054,000) | ||
Capital reduction of subsidiary – non-controlling interests | (13,392,000) | ||
Net cash (used in) provided by financing activities | (344,134,000) | 451,615,000 | (119,289,000) |
Foreign exchange effects on cash and cash equivalents | (21,923,000) | (16,070,000) | (2,462,000) |
Other high liquid short term investments | 29,496,000 | ||
(Decrease) increase in cash and cash equivalents | (342,346,000) | 387,545,000 | (334,320,000) |
Cash and cash equivalents at the beginning of the year | 1,086,163,000 | 698,618,000 | 1,032,938,000 |
Cash and cash equivalents at the end of the year | $ 743,817,000 | $ 1,086,163,000 | $ 698,618,000 |
Consolidated statement of chang
Consolidated statement of changes in shareholder's equity - USD ($) $ in Thousands | Issued capital [member] | Treasury shares [member] | Share premium [member] | Additional paid-in capital [member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Total nexa shareholders [member] | Non-controlling interests [member] | Total |
At January 1, 2021 at Dec. 31, 2018 | $ 133,320 | $ (1,352) | $ 1,043,755 | $ 1,318,728 | $ 18,112 | $ (79,288) | $ 2,433,275 | $ 425,208 | $ 2,858,483 |
IfrsStatementLineItems [Line Items] | |||||||||
Net income for the year | (145,135) | (145,135) | (12,381) | (157,516) | |||||
Other comprehensive loss for the year | (27,318) | (27,318) | 7,082 | (20,236) | |||||
Total comprehensive income (loss) for the year | (145,135) | (27,318) | (172,453) | (5,299) | (177,752) | ||||
Acquisition of non-controlling interests | (71,054) | (71,054) | (71,054) | ||||||
Repurchase of the Company's own shares | (8,103) | (8,103) | (8,103) | ||||||
Dividends distribution to NEXA's shareholders - USD 0.26 per share - note 30 (g) | (69,832) | (69,832) | (69,832) | ||||||
Cancellation of 881,902 treasury shares acquired for USD 9,455 | (882) | 9,455 | (8,573) | ||||||
Dividends distribution to non-controlling interests - note 30 (g) | (2,256) | (2,256) | (47,300) | (49,556) | |||||
Total contributions by and distributions to shareholders | (8,103) | (73,310) | (69,832) | (151,245) | (47,300) | (198,545) | |||
At December 31, 2021 at Dec. 31, 2019 | 133,320 | (9,455) | 1,043,755 | 1,245,418 | (196,855) | (106,606) | 2,109,577 | 372,609 | 2,482,186 |
IfrsStatementLineItems [Line Items] | |||||||||
Net income for the year | (559,247) | (559,247) | (93,259) | (652,506) | |||||
Other comprehensive loss for the year | (122,885) | (122,885) | (16,827) | (139,712) | |||||
Total comprehensive income (loss) for the year | (559,247) | (122,885) | (682,132) | (110,086) | (792,218) | ||||
Dividends distribution to NEXA's shareholders - USD 0.26 per share - note 30 (g) | (50,000) | (50,000) | (50,000) | ||||||
Cancellation of 881,902 treasury shares acquired for USD 9,455 | 9,455 | ||||||||
Dividends distribution to non-controlling interests - note 30 (g) | (5,332) | (5,332) | |||||||
Total contributions by and distributions to shareholders | (882) | 9,455 | (58,573) | (50,000) | (18,724) | (68,724) | |||
Capital reduction of subsidiary - non-controlling interests | (13,392) | (13,392) | |||||||
At December 31, 2021 at Dec. 31, 2020 | 132,438 | 1,043,755 | 1,245,418 | (814,675) | (229,491) | 1,377,445 | 243,799 | 1,621,244 | |
IfrsStatementLineItems [Line Items] | |||||||||
Net income for the year | 114,332 | 114,332 | 41,755 | 156,087 | |||||
Other comprehensive loss for the year | (70,504) | (70,504) | (3,817) | (74,321) | |||||
Total comprehensive income (loss) for the year | 114,332 | (70,504) | 43,828 | 37,938 | 81,766 | ||||
Transfer of the changes in fair value of prepaid debt related to changes in the Company’s own credit risk to retained earnings | (10,965) | 10,965 | |||||||
Dividends distribution to NEXA's shareholders - USD 0.26 per share - note 30 (g) | (35,000) | (35,000) | (35,000) | ||||||
Dividends distribution to non-controlling interests - note 30 (g) | (23,730) | (23,730) | |||||||
Total contributions by and distributions to shareholders | (45,965) | 10,965 | (35,000) | (23,730) | (58,730) | ||||
At December 31, 2021 at Dec. 31, 2021 | $ 132,438 | $ 1,043,755 | $ 1,245,418 | $ (746,308) | $ (289,030) | $ 1,386,273 | $ 258,007 | $ 1,644,280 |
Consolidated statement of cha_2
Consolidated statement of changes in shareholder's equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of changes in equity [abstract] | |||
Dividend distribution per share | $ 0.26 | $ 0.38 | $ 0.53 |
Number of treasury shares cancelled | 881,902 | ||
The amount of treasury stock cancelled during the period | $ 9,455 |
General information
General information | 12 Months Ended |
Dec. 31, 2021 | |
General Information | |
General information | 1 General information Nexa Resources S.A. (“NEXA”) is a public limited liability company (société anonyme) incorporated and domiciled in the Grand Duchy of Luxembourg. Its shares are publicly traded on the New York Stock Exchange (“NYSE”). As a result of a voluntary delisting, November 30, 2021 was the last trading day of the Company’s shares on the Toronto Stock Exchange (“TSX”), and NEXA intends to cease to be a reporting issuer under Canadian securities laws, when applicable. The Company’s registered office is located at 37A, Avenue J. F. Kennedy in the city of Luxembourg in the Grand Duchy of Luxembourg. NEXA and its subsidiaries (the “Company”) have operations that comprise large-scale, mechanized underground and open pit mines and smelters. The Company owns and operates three polymetallic mines in Peru, and two polymetallic mines in Brazil and is completing the development of its third polymetallic mine in Brazil. The Company also owns and operates a zinc smelter in Peru and two zinc smelters in Brazil. The Company’s majority shareholder is Votorantim S.A. (“VSA”), which holds 64.68 COVID-19 outbreak impacts on NEXA´s financial statements and operations In March 2020, the World Health Organization characterized the current COVID-19 disease (“COVID- 19”) as a pandemic. Since then, COVID-19 spread across the world, through different waves, with severe effects that impacted the global economy in general and the Company’s business. Throughout this pandemic, government authorities in the countries in which the Company operates responded and continue to respond in different ways to deal with this global outbreak. In Peru, for example, during the first and second quarters of 2020, the Company’s Peruvian mines were suspended, and its Peruvian smelter reduced production in response to the Peruvian Government mandated health and safety measures. No other material impacts have occurred within the Company since the beginning of the pandemic. As a result of a combination of factors, including suspended and reduced production, the decrease in short- and mid-term commodities prices, discontinued projects, and increased operating costs, in 2020, the Company recognized an impairment loss of non-current assets of USD 557,497 Currently, although the Peruvian and Brazilian subsidiaries continue to operate subject to additional measures to control and mitigate the spread of COVID-19, they have returned to their pre-pandemic production levels, with the exception of the Atacocha underground mine in Peru, which continues suspended under care and maintenance given its higher operating costs. Ultimately, the impact of the COVID-19 global outbreak on the Company’s financial condition depends on the pandemic’s continuing duration and severity, on the efforts to contain its spread, on the abilities of countries to continue advancing in the distribution of effective vaccines against it, on the recovery of global and regional economies, and on the impact of response measures taken by the Company, governments, and others. |
Information by business segment
Information by business segment | 12 Months Ended |
Dec. 31, 2021 | |
Information by business segment | 2 Information by business segment Business segment definition The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”) since the role encompasses authority over resource allocation decisions and performance assessment. The CODM analyzes performance mainly from the production obtained in the operations. The Company has identified two reportable segments: • Mining: consists of five long-life polymetallic mines, three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil. In addition to zinc, the Company produces substantial amounts of copper, lead, silver, and gold as by-products, which reduce the overall cost to produce mined zinc. • Smelting: consists of three operating units, one located in Cajamarquilla in Peru and two located in the state of Minas Gerais in Brazil. The facilities recover and produce metallic zinc (SHG zinc and zinc alloys), zinc oxide and by-products, such as sulfuric acid. Accounting policy Segment performance is assessed based on Adjusted EBITDA, since financial results, comprising financial income and expenses and other financial items, and income tax are managed at the corporate level and are not allocated to operating segments. Adjusted EBITDA is defined as net income (loss) for the year, adjusted by (i) share in the results of associates, (ii) depreciation and amortization, (iii) net financial results, (iv) income tax, (v) (loss) gain on sale of investments, and (vi) impairment and impairment reversals. In addition, management may adjust the effect of certain types of transactions that in its judgment are not indicative of the Company´s normal operating activities or do not necessarily occur on a regular basis. The internal information used for making decisions is prepared using International Financial Reporting Standards (“IFRS”) based on accounting measurements and management reclassifications between income statement lines items, which are reconciled to the consolidated financial statements in the column “Adjustments”. These adjustments include reclassifications of the effects of derivative financial instruments from Other income and expenses, net to Net revenues and Cost of sales; and, of certain overhead costs from Other income and expenses, net to Cost of sales and/or Selling, general and administrative expenses. The Company uses customary market terms for intersegment sales. The Company’s corporate headquarters expenses are allocated to the reportable segments to the extent they are included in the measures of performance used by the CODM. The presentation of segment results and reconciliation to income (loss) before income tax in the consolidated income statement is as follows: Schedule of segment results and reconciliation to (loss) income before income tax 2021 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,165,584 2,028,831 (636,212) 63,907 2,622,110 Cost of sales (719,358) (1,796,111) 636,212 (86,779) (1,966,036) Gross profit 446,226 232,720 - (22,872) 656,074 Selling, general and administrative (70,271) (68,593) - (17,922) (156,786) Mineral exploration and project evaluation (75,549) (9,494) - - (85,043) Other income and expenses, net (34,050) 34,196 - 31,802 31,948 Operating income (loss) 266,356 188,829 - (8,992) 446,193 Depreciation and amortization 174,891 78,861 - 4,959 258,711 Miscellaneous adjustments (i) (664) - - - (664) Adjusted EBITDA 440,583 267,690 - (4,033) 704,240 Miscellaneous adjustments (i) 664 Depreciation and amortization (258,711) Net financial results (136,902) Income before income tax 309,291 (i) Related to minor impairment reversals of equipment costs previously impaired and that were sold in 2021. Due to the low amounts, these are included as Other income and expenses, net. 2020 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 748,462 1,550,323 (375,402) 27,546 1,950,929 Cost of sales (625,408) (1,287,902) 375,402 (26,023) (1,563,931) Gross profit 123,054 262,421 - 1,523 386,998 Selling, general and administrative (70,354) (64,874) - (16,391) (151,619) Mineral exploration and project evaluation (48,555) (5,466) - (3,180) (57,201) Impairment of non-current assets (512,706) (44,791) - - (557,497) Other income and expenses, net (23,648) (5,545) - 10,029 (19,164) Operating (loss) income (532,209) 141,745 - (8,019) (398,483) Depreciation and amortization 159,984 82,650 - 1,291 243,925 Impairment of non-current assets 512,706 44,791 - - 557,497 Adjusted EBITDA 140,481 269,186 - (6,728) 402,939 Impairment of non-current assets (557,497) Depreciation and amortization (243,925) Net financial results (278,175) Loss before income tax (676,658) 2019 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,000,580 1,865,733 (535,776) 2,178 2,332,715 Cost of sales (805,058) (1,655,062) 535,776 (23,484) (1,947,828) Gross profit 195,522 210,671 - (21,306) 384,887 Selling, general and administrative (117,280) (89,540) - (9,691) (216,511) Mineral exploration and project evaluation (109,549) (9,503) - (11) (119,063) Impairment of non-current assets (142,133) - - - (142,133) Other income and expenses, net (13,955) (29,569) - 25,318 (18,206) Operating (loss) income (187,395) 82,059 - (5,690) (111,026) Depreciation and amortization 217,870 97,975 - 2,047 317,892 Impairment of non-current assets 142,133 - - - 142,133 Adjusted EBITDA 172,608 180,034 - (3,643) 348,999 Impairment of non-current assets (142,133) Depreciation and amortization (317,892) Net financial results (104,854) Loss before income tax (215,880) |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2021 | |
Basis Of Preparation Of Consolidated Financial Statements | |
Basis of preparation of the consolidated financial statements | 3 Basis of preparation of the consolidated financial statements These consolidated financial statements have been prepared in accordance with IFRS and interpretations issued by the IFRS Interpretations Committee applicable to companies reporting under IFRS, as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost convention, except for certain financial assets and financial liabilities (including derivative financial instruments) measured at fair value at the end of each reporting period. The consolidated financial statements of the Company for the year ended on December 31, 2021, were approved for issue in accordance with a resolution of the Board of Directors on February 15, 2022. |
Principles of consolidation
Principles of consolidation | 12 Months Ended |
Dec. 31, 2021 | |
Principles of consolidation | 4 Principles of consolidation The consolidated financial statements comprise the financial statements of NEXA and its subsidiaries on December 31, 2021. (a) Subsidiaries Subsidiaries include all entities over which the Company has control. The Company controls an entity when it (i) has the power over the entity; (ii) is exposed, or has the right, to variable returns from its involvement with the entity; and (iii) has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company, except when the predecessor basis of accounting is applied. Subsidiaries are deconsolidated from the date that control ceases. Accounting policies of subsidiaries are usually consistent with the policies adopted by the Company. If there are differences, to ensure the standardization of the accounting policies, an adjustment is performed in the consolidation process. Non-controlling interests in the subsidiaries’ equity and results are shown separately in the consolidated balance sheet, income statement, statement of comprehensive income and statement of changes in shareholders’ equity. A change in ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets, liabilities, non-controlling interests and other equity components and any resultant gain or loss is recognized in the income statement. Any investment retained is recognized at fair value. In general, there is a presumption that a majority of voting rights results in control. When the Company has less than a majority of the voting rights of an investee, it considers all relevant facts and circumstances to determine whether it has power over this investee. This may include contractual arrangements with the other holders of voting rights in the investee; rights arising from other contractual arrangements; and the Company’s voting rights and potential voting rights that will give it the practical ability to direct the relevant activities of the investee unilaterally. Intercompany transactions, balances, and unrealized gains on transactions between companies in the consolidated group are eliminated in full on consolidation. Unrealized losses are also eliminated unless the transaction indicates impairment of the transferred asset. (b) Joint operations The Company recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held assets or incurred liabilities or revenues and expenses. These have been included in the consolidated financial statements under the appropriate headings. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. Transactions, balances and unrealized gains and losses between consolidated entities are eliminated. The main entities included in the consolidated financial statements are: Schedule of ownership percentages Percentage of shares Company Headquarter Activities 2021 2020 controls Subsidiaries L.D.O.S.P.E. Geração de Energia e Participações Ltda. – “L.D.O.S.P.E." 100 100 Indirectly Brazil Energy L.D.Q.S.P.E. Geração de Energia e Participações Ltda. - "L.D.Q.S.P.E." 100 100 Indirectly Brazil Energy L.D.R.S.P.E. Geração de Energia e Participações Ltda. - "L.D.R.S.P.E." 100 100 Indirectly Brazil Energy Mineração Dardanelos Ltda. - "Dardanelos" 100 100 Indirectly Brazil Mining projects Nexa Recursos Minerais S.A. - "NEXA BR" 100 100 Directly Brazil Mining / Smelting Mineração Santa Maria Ltda. 99.99 99.99 Indirectly Brazil Mining projects Pollarix S.A. - "Pollarix" (i) 33.33 33.33 Indirectly Brazil Holding and others Karmin Holding Ltda. 100 100 Indirectly Brazil Holding and others Mineração Rio Aripuaña Ltda. 100 100 Indirectly Brazil Holding and others Votorantim Metals Canada Inc. 100 100 Indirectly Canada Holding and others Nexa Resources El Porvenir S.A.C. 99.99 99.99 Indirectly Peru Mining Minera Pampa de Cobre S.A.C 99.99 99.99 Indirectly Peru Mining Nexa Resources Cajamarquilla S.A. - "NEXA CJM" 99.99 99.99 Directly Peru Smelting Nexa Resources Perú S.A.A. - "NEXA Peru" 83.55 83.55 Indirectly Peru Mining Nexa Resources Atacocha S.A.A. - "NEXA Atacocha" 66.62 66.62 Indirectly Peru Mining Nexa Resources UK Ltd. - "NEXA UK" 100 100 Indirectly United Kingdom Mining Nexa Resources US. Inc. 100 100 Directly United States Trading Exploraciones Chimborazo Metals & Mining 100 - Directly Ecuador Holding and others Joint-operations Campos Novos Energia S.A. - "Enercan" 20.98 20.98 Brazil Energy Cia. Minera Shalipayco S.A.C 75 75 Peru Mining projects (i) NEXA BR owns all the common shares of Pollarix, which represents 33.33% of its total share capital. The remaining shares are preferred shares with limited voting rights, which are indirectly owned by NEXA’s controlling shareholder, VSA. (c) Transactions with non-controlling interests Transactions with non-controlling interests that do not result in a loss of control are recognized within shareholders’ equity as transactions with equity owners of the consolidated group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in Additional paid in capital within shareholders’ equity. (d) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which each entity operates (“the functional currency”). The Company’s consolidated financial statements are presented in US Dollars ("USD"), which is NEXA’s functional currency and the Company’s reporting currency. (ii) Transactions and balances Foreign currency transactions are initially recorded by each entity in the Company at their respective functional currency spot rates at the date the transaction is recognized. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the functional currency spot rates at the end of each reporting period are recognized in the income statement. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transaction. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. (iii) Consolidated entities The results of operations and financial position of the consolidated entities that have a functional currency different from the Company’s reporting currency are translated into the reporting currency as follows: · Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; · Income and expenses for each income statement and statement of comprehensive income presented are translated at average exchange rates for the annual period of that income statement and statement of comprehensive income, which are a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates; and, · All resulting exchange differences are recognized in other comprehensive income and accumulated in a separate component of shareholders’ equity. |
Changes in the main accounting
Changes in the main accounting policies and disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Changes in the main accounting policies and disclosures | 5 Changes in the main accounting policies and disclosures (a) New standards and amendments – applicable as of January 1, 2021 or thereafter There were some new standards and amendments effective for annual periods commencing on January 1, 2021. The adoption of these new standards and amendments did not have an impact on the Company’s financial statements. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective and does not expect that the adoption of such issued but not early adopted standard, interpretation or amendment will have a material impact on the Company’s financial statements. (b) Benchmark interest rate reform In 2014, developments in the global markets revealed weaknesses in the London Interbank Offered Rate’s (“LIBOR”) sustainability as a reference rate. Since then, regulators around the world have focused on the transition to a new benchmark that would replace this rate. On March 5, 2021, the UK Financial Conduct Authority (“FCA”), announced that the LIBOR will either be discontinued or become non-representative: · Immediately after December 31, 2021, 1-week and 2-month USD LIBOR tenors and for all EUR, GBP, CHF and JPY LIBOR tenors. · Immediately after June 30, 2023, for the remaining USD LIBOR tenors (Overnight, and 1-, 3-, 6- and 12-month). The Company does not have any financial instruments associated with LIBOR in other currencies and continues to discuss with the financial entities which interest rate reference will replace the loans measured by USD LIBOR, and does not expect any significant impacts on its financial statements. (c) Credit risk – local rating Peru Until 2020, the Company used only global ratings for assessing the credit risk of financial institutions in Peru. In 2021, the Company modified its Financial Risk Management Policy, allowing the use of their local ratings, but only if these local agencies were homologated by the global agencies used by NEXA. For more details see note 12 (b). (d) Critical estimates and judgments The preparation of the Company’s consolidated financial statements requires the use of estimates, assumptions and judgments that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities at the date of the consolidated financial statements. Accounting estimates and assumptions, by definition, will seldom equal the actual results and are continually evaluated to reflect changing expectations about future events. Management also needs to exercise judgment in applying the Company’s accounting policies. This note provides an overview of the areas that involve a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong due to their uncertainty. Detailed information about each of these estimates, assumptions and judgments is included in other notes together with information about the basis of calculation for each affected item in the financial statements. The critical accounting estimates, assumptions and judgments applied by the Company in the preparation of these financial statements are as follows: • estimation of current and deferred income taxes – note 11 • estimation of fair value of financial instruments – note 13 • estimation of impairment of trade accounts receivables – note 17 • estimation of quantification of mineral reserves and resources for useful life calculation – note 22 • estimation of asset retirement and environmental obligations – note 26 • estimation of provisions for legal claims – note 27 • estimation of contractual obligations – note 28 • estimation of impairment of non-current assets – note 31 Estimates, assumptions and judgments are continuously evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. The Company has considered the effects of COVID-19 when making its estimates, assumptions and judgments. Events and changes in circumstances arising after December 31, 2021, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods. Nexa integrates sustainability practices into its business, focused on generating a positive social, economic and environmental impact in the places where it operates. Within this context, the Company has a multidisciplinary and integrated task force which is currently complementing and defining its Environmental, Social and Governance (“ESG”) strategy and future actions including risks analyses with respect to climate change and global, regional and local weather conditions, as well as those related to the emission of greenhouse gases, among other matters. The Company’s objective is to continuously evolve and adapt to new frameworks, as well as to respond to its stakeholder feedback. As a result of these definitions, the Company could have in the future some change in its accounting estimates, assumptions and judgments regarding new definitions, practices or commitments that would be assumed by management in relation to its ESG strategy. |
Net revenues
Net revenues | 12 Months Ended |
Dec. 31, 2021 | |
Net Revenues | |
Net revenues | 6 Net revenues Accounting policy Revenues represent the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities. Revenues are shown net of value-added tax, returns, rebates and discounts, after eliminating sales between the consolidated companies. The Company recognizes revenues when a performance obligation is satisfied by transferring a promised good or service to a customer. The asset is transferred when the customer obtains control of that asset. To determine the point in time at which a customer obtains control of a promised asset the Company considers the following indicators: (i) the Company has a present right to payment for the asset; (ii) the customer has legal title to the asset; (iii) the Company has transferred physical possession of the asset; (iv) the customer has the significant risks and rewards of ownership of the asset; (v) the customer has accepted the asset. Identification and timing of satisfaction of performance obligations The Company has two distinct performance obligations included in certain sales contracts: (i) the promise to provide goods to its customers; and, (ii) the promise to provide freight and insurance services to its customers. Promise to provide goods: Promise to provide freight and insurance services: As a result of the distinct performance obligations identified, part of the Company’s revenues is presented as revenues from services. Cost related to revenues from services is presented as Cost of sales. Revenues from the sale of goods and from freight and insurance services are recognized at a point in time when control is transferred and when contracted services are provided. It is at this point that a trade receivable is recognized because only the passage of time is required before the consideration is due. The Company does not have any contract assets, which give right to consideration in exchange for goods or services that the Company has transferred to the customer, since all rights to consideration of the contracts are unconditional. Deferred revenues are related to contract obligations that are an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer (or the payment is due) but the transfer has not yet been completed. For contracts where performance obligations are satisfied over a period of time, the stage of completion is required to calculate how much revenue should be recognized to date and revenue shall be deducted from the prepayment to the extent that performance obligations are delivered. Refer to note 28 for the specific accounting policy and information related to NEXA’s contractual obligations. Determining the transaction price and the amounts allocated to performance obligations The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration that the Company expects to be entitled to receive in exchange for transferring promised goods or services to its customers. Transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction prices included in the Company’s sales contracts are mainly based on international prices references and subject to price adjustments based on the market price at the end of the relevant quotation period stipulated in the sales contract. These are referred to as provisional pricing arrangements which are subject to a monthly price adjustment. The period between the provisional and final pricing is approximately two months. As of December 31, 2021, the pending price adjustments to be made were not material. Additionally, the Company has a contractual obligation related to a long-term silver streaming arrangement linked to specific production of its Cerro Lindo mine. The Company received an upfront payment in advance of this specific production. The transaction price is linked to the silver production and spot market prices, which change over time and, therefore, it is accounted for as variable consideration. For more details about this streaming transaction see note 28. (a) Composition of net revenues Schedule of net revenues by billing (i) Gross billing reconciliation 2021 2020 2019 Gross billing 2,974,850 2,138,786 2,552,275 Billing from products 2,898,210 2,074,203 2,473,534 Billing from freight and insurance services 76,640 64,583 78,741 Taxes on sales (347,311) (184,714) (216,141) Return of products sales (5,429) (3,143) (3,419) Net revenues 2,622,110 1,950,929 2,332,715 In 2021, a gross billing of approximately USD 390,469 10 In 2021, taxes on sales include ICMS expenses of USD 71,949 Schedule of net revenues from products (ii) Net revenues breakdown 2021 2020 2019 Zinc 1,844,632 1,323,287 1,592,050 Lead 223,341 161,964 259,238 Copper 305,793 197,756 174,697 Silver 69,691 58,568 63,867 Other products 102,013 144,771 164,122 Freight and insurance services 76,640 64,583 78,741 Net revenues 2,622,110 1,950,929 2,332,715 Taxes on sales 347,311 184,714 216,141 Return of products sales 5,429 3,143 3,419 Gross billing 2,974,850 2,138,786 2,552,275 (b) Information on geographical areas in which the Company operates The geographical areas are determined based on the location of the Company’s customers. The net revenues of the Company, classified by geographical location and currency, are as follows: Schedule of revenues by geographical location (i) Net revenues by geographical location 2021 2020 2019 Peru 774,735 485,850 595,601 Brazil 753,280 583,141 625,033 United States 119,564 116,717 159,672 South Korea 118,596 77,429 95,913 Luxembourg 97,462 76,072 145,493 Argentina 93,107 56,165 60,850 Switzerland 78,770 68,912 101,636 Japan 58,296 46,719 71,352 Singapore 56,879 76,724 99,488 Colombia 54,325 34,768 37,149 Chile 54,044 48,969 80,849 Taiwan 53,752 28,764 33,551 Austria 45,057 35,197 39,897 Turkey 34,493 25,005 33,905 Malaysia 25,681 13,948 6,535 South Africa 25,126 - 1,892 Netherlands 17,693 11,740 9,381 Ecuador 15,652 9,095 13,012 Italy 14,834 9,895 9,000 Vietnam 14,555 10,798 3,142 Belgium 13,690 30,174 25,500 Indonesia 11,774 8,609 1,098 Guatemala 11,101 4,738 7,094 Germany 7,297 33,869 20,749 Other 72,347 57,631 54,923 Net revenues 2,622,110 1,950,929 2,332,715 Schedule of revenues by currency (ii) Net revenues by currency 2021 2020 2019 USD 1,914,905 1,388,746 1,731,765 Brazilian Real (“BRL”) 707,205 562,183 600,950 Net revenues 2,622,110 1,950,929 2,332,715 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature | 7 Expenses by nature Accounting policy Cost of sales mainly consists of the cost of manufacturing the products sold by the Company and is recognized in the income statement on the date of delivery to the customer at the same time revenue is recognized from the related sale. Selling, general and administrative expenses are recognized on the accrual basis regardless of when they are paid and, if applicable, in the same period in which the income with which they are related is recognized. Schedule of expense by nature 2021 2020 2019 Cost of sales (i) Selling, general and administrative Mineral exploration and project evaluation Total Total Total Raw materials and consumables used (1,188,495) (1,233) - (1,189,728) (856,300) (1,063,094) Third-party services (373,282) (40,839) (52,950) (467,071) (407,695) (574,228) Depreciation and amortization (251,657) (7,019) (35) (258,711) (243,925) (317,892) Employee benefit expenses (140,418) (65,009) (17,688) (223,115) (213,865) (254,251) Others (12,184) (42,686) (14,370) (69,240) (50,966) (73,937) Total (1,966,036) (156,786) (85,043) (2,207,865) (1,772,751) (2,283,402) (i) In 2021, cost of sales was reduced by USD 19,407 due to GSF recovered costs related to the extension of the concession period of NEXA’s Brazilian energy power plants as explained in note 22. |
Mineral exploration and project
Mineral exploration and project evaluation | 12 Months Ended |
Dec. 31, 2021 | |
Mineral exploration and project evaluation | 8 Mineral exploration and project evaluation Accounting policy Mineral exploration and project evaluation costs are expensed in the year in which they are incurred. Mineral exploration activities involve the search for mineral resources from potential areas up to the determination of commercial viability and technical feasibility of an identified resource. Mineral exploration costs include gathering exploration data through geological and geophysical studies, conducting exploratory drilling and sampling, and determining and examining the volume and grade of the identified resources. Project evaluation costs are mainly related to scoping, pre-feasibility and feasibility studies for greenfield and brownfield projects. Additionally, these evaluation costs could also include costs incurred for studies related to other corporate projects, research, innovation, automation, and information technology projects. Note 21 describes when mineral exploration and project evaluation costs begin to be capitalized. Composition of mineral exploration and project evaluation costs Schedule of mineral exploration and project evaluation costs 2021 2020 2019 Mineral exploration (55,594) (38,519) (79,838) Project evaluation (29,449) (18,682) (39,225) Mineral exploration and Project development (85,043) (57,201) (119,063) |
Other income and expenses, net
Other income and expenses, net | 12 Months Ended |
Dec. 31, 2021 | |
Other income and expenses, net | 9 Other income and expenses, net Schedule of other income and expenses, net 2021 2020 2019 Remeasurement of asset retirement and environmental obligations – note 26 (6,664) (900) 4,810 Provision of legal claims – note 27 (13,173) (10,912) (4,424) Contribution to communities (7,070) (2,773) (3,893) Derivative financial instruments - note 16 (b) 7,486 948 (833) Loss on sale of property, plant and equipment and intangible assets (4,891) (2,268) (857) Pre-operating expenses related to Aripuanã (8,753) (1,885) (1,312) ICMS tax incentives (i) 71,949 Others (6,936) (1,374) (11,697) Total other income and expenses, net 31,948 (19,164) (18,206) (i) The Brazilian Complementary Law No. 160/2017, which amended Law No. 12.973/2014, states that government grants of ICMS tax incentives are considered investment subsidies and excluded from taxable income for the purpose of calculating the corporate income taxes IRPJ and CSLL. In 2021, the Company, supported by the opinion of its external legal advisors, concluded that the ICMS tax incentives obtained in 2021 and 2020 for a total amount of US$ 71,949 could be excluded from the corporate income taxes basis for the fiscal year ended on December 31, 2021 and recognized ICMS taxes in Taxes on Sales and ICMS tax incentives in Other income and expense, net. The ICMS tax incentives are a permanent difference and the related corporate income tax effect in the amount of USD 24,463 reduced the current tax expense in 2021 as shown in note 11 (a). |
Net financial results
Net financial results | 12 Months Ended |
Dec. 31, 2021 | |
Net Financial Results | |
Net financial results | 10 Net financial results Accounting policy (i) Financial expenses Financial costs of obligations are recognized as expenses when accrued, except for those directly attributable to the acquisition or the construction of qualifying assets, that is, assets that require a substantial time to be ready for use, which are capitalized at cost within Property, plant and equipment and/or Intangibles to which they relate. (ii) Financial income Financial income is mainly composed of interest income and is recognized on an accrual basis to reflect the asset’s effective yield under the effective interest rate method. (iii Other financial items net is composed by the net of the income and expenses related to the fair value of loans and financings, derivative financial instruments, and foreign exchange losses. Schedule of net financial results 2021 2020 2019 Financial income Interest income on financial investments and cash equivalents 6,074 7,295 20,909 Interest on tax credits 1,377 854 5,498 Other financial income 4,021 3,019 4,647 Total financial income 11,472 11,168 31,054 Financial expenses Interest on loans and financings (96,565) (97,422) (67,369) Premium paid on bonds repurchase – note 24 (c) - (14,481) - Interest on other liabilities (12,371) (8,051) (10,864) Interest on contractual obligations (6,936) (6,182) (6,526) Interest on lease liabilities – note 23 (b) (1,272) (1,757) (3,416) Other financial expenses (25,131) (31,866) (29,224) Total financial expenses (142,275) (159,759) (117,399) Other financial items, net Fair value of loans and financings – note 24 (c) 19,380 (8,058) (6,640) Derivative financial instruments - note 16 (b) (5,640) (717) 1,024 Foreign exchange losses (i) (19,839) (120,809) (12,893) Other financial items, net (6,099) (129,584) (18,509) Net financial results (136,902) (278,175) (104,854) (i) The amounts for years 2021 and 2020 include losses of USD 10,468 65,689 |
Current and deferred income tax
Current and deferred income tax | 12 Months Ended |
Dec. 31, 2021 | |
Current And Deferred Income Tax | |
Current and deferred income tax | 11 Current and deferred income tax Accounting policy The current income tax is calculated based on the tax laws enacted or substantively enacted as of the balance sheet date in the countries where the Company’s entities operate and generate taxable income. Management periodically evaluates positions taken by the Company in the taxes on income returns with respect to situations in which the applicable tax regulations are subject to interpretation. It establishes provisions, where appropriate, considering amounts expected to be paid to the tax authorities. The current income tax is presented net, separated by tax paying entity, in liabilities when there are amounts payable, or in assets when the amounts prepaid exceed the total amount due on the reporting date. Deferred income tax is provided in full, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction affects neither the accounting nor the taxable income or loss. Deferred income tax is determined using tax rates (and laws), of the Company’s entities, that have been enacted or substantially enacted at the end of the reporting period and that are expected to be applied when the related deferred income taxes asset is realized, or the deferred income tax liability is settled. Deferred tax assets are recognized only to the extent it is probable that future taxable income will be available against which the temporary differences and/or tax losses can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right and an intention to offset them in the calculation of current taxes, generally when they are related to the same legal entity and the same tax authority. Accordingly, deferred tax assets and liabilities in different entities or in different countries are generally presented separately, and not on a net basis. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amounts and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not be reversed in the foreseeable future. Critical accounting estimates and judgments The Company is subject to income tax in all countries in which it operates where uncertainties arise in the application of complex tax regulations. Significant judgment, estimates and assumptions are required to determine the amount of deferred taxes that would be recovered since this amount may be affected by factors including, but not limited to: (i) internal assumptions on the projected taxable income, which are based on production and sales planning, commodity prices, operational costs and planned capital costs; (ii) macroeconomic environment; and, (iii) trade and tax scenarios. In addition, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company also exercises judgment in the identification of these uncertainties over income tax treatments which could impact the consolidated financial statements as the Company operates in a complex multinational environment. The Company and its subsidiaries are subject to reviews of income tax filings and other tax payments, and disputes can arise with the tax authorities over the interpretation of the applicable laws and regulations. (a) Reconciliation of income tax (expense) benefit Schedule of reconciliation of income tax benefit (expense) 2021 2020 2019 Income (loss) before income tax 309,291 (676,658) (215,880) Statutory income tax rate 24.94% 24.94% 24.94% Income tax (expense) benefit at statutory rate (77,137) 168,759 53,840 Tax effects of translation of non-monetary assets/liabilities to functional currency (32,998) (28,174) (3,575) Unrecognized deferred tax benefit on net operating losses (35,735) (35,849) - Special mining levy and special mining tax (17,279) (5,909) (7,431) Withholding tax on dividends paid by subsidiaries - - (9,764) Difference in tax rate of subsidiaries outside Luxembourg (i) (3,179) 36,390 24,698 Withholding tax over subsidiary capital reduction (ii) (10,526) - - Impairment of goodwill - (78,866) - ICMS tax incentives (iii) 24,463 - Other permanent tax differences (813) (32,199) 596 Income tax (expense) benefit (153,204) 24,152 58,364 Current (122,081) (63,192) (46,382) Deferred (31,123) 87,344 104,746 Income tax (expense) benefit (153,204) 24,152 58,364 (i) The Company’s activities are subject to the income tax regime of each country where it operates. However, NEXA’s Cerro Lindo mining unit had a lower income tax rate in comparison with that of other Peruvian operations because it was taxed under the laws and guarantees of a stability agreement signed by NEXA PERU, which was valid until the end of 2021. The deferred taxes of NEXA’s Cerro Lindo unit, however, are calculated considering the statutory income tax rate of 29.5 (ii) On June 10, 2021, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 210,703 which was paid on July 27, 2021. Given this capital reduction, the Company recognized USD 10,526 (iii) See note 9. (b) Analysis of deferred income tax assets and liabilities Schedule of analysis of deferred income tax assets and liabilities 2021 2020 Tax credits on net operating losses (i) 116,284 108,767 Uncertain income tax treatments (5,279) (6,712) Tax credits on temporary differences Foreign exchange losses 33,123 Environmental liabilities 13,923 16,611 Asset retirement obligations 17,698 20,507 Tax, labor and civil provisions 7,797 7,162 Other provisions 8,613 9,825 Provision for obsolete and slow-moving inventory 7,224 6,813 Provision for employee benefits 7,138 5,299 Revaluation of derivative financial instruments 506 3,056 Other 7,039 6,513 Tax debits on temporary differences Foreign exchange gains (16,365) - Capitalized interest (9,261) (10,274) Revaluation of loans and financings (1,945) (88) Depreciation, amortization and asset impairment (189,799) (190,970) Other (3,951) (6,444) (40,378) 3,188 Deferred income tax assets 168,205 221,580 Deferred income tax liabilities (208,583) (218,392) (40,378) 3,188 (i) As a result of adopting Complementary Law No. 160/2017, as described in note 9, there was also an increase in the amount of USD 11,996 (c) Effects of deferred income tax on income statement and other comprehensive income Schedule of effects of deferred tax and taxes on profit or loss and other comprehensive income 2021 2020 2019 Balance at the beginning of the year 3,188 (48,212) (136,810) Effect on income (loss) for the year (31,123) 87,344 104,746 Effect on other comprehensive income (loss) - Fair value adjustment (2,536) 13 453 Prior years uncertain income tax treatment payment - 4,706 - Impact of adoption IFRIC 23 - (10,070) Foreign exchange (loss) gain (9,907) (40,663) (6,531) Balance at the end of the year (40,378) 3,188 (48,212) (d) Summary of contingent liabilities on income taxes There are uncertainties and legal proceedings for which it is not probable that an outflow of resources will be required. In such cases, a provision is not recognized. As of December 31, 2021, the main legal proceedings are related to: (i) the interpretation of the application of Cerro Lindo´s stability agreement; (ii) the carryforward calculation of net operating losses; and, (iii) the deductibility of foreign exchange losses and expenses. The estimated amount of these contingent liabilities on December 31, 2021 is USD 134,804 163,670 Regarding Cerro Lindo´s stability agreement, in December 2021, the Peruvian tax authority (“SUNAT”) concluded its income tax inspection of NEXA PERU’s fiscal year 2014. As a result of this procedure, SUNAT determined an amount to be paid by the Company of USD 47,575 (including principal, penalties and interest) arguing that NEXA PERU’s income tax expense should be calculated considering the Peruvian statutory income tax rate for 2014 fiscal year of 30% instead of the 20% income tax rate that the stability agreement granted to Cerro Lindo’s operations. According to SUNAT, the Company should separate the income coming from the facilities built under the approved feasibility study (which includes a plant with a production capacity of 5,000 tpd) from that coming from the other facilities and since this is not possible, SUNAT disregarded the stabilized rate. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial risk management | 12 Financial risk management Financial risk factors The Company’s activities expose it to a variety of financial risks: a) market risk (including currency risk, interest rate risk and commodities risk); b) credit risk; and c) liquidity risk. A significant portion of the products sold by the Company are commodities, with prices pegged to international indices and denominated in USD. Part of the production costs, however, is denominated in BRL and Peruvian Soles (“PEN”), and therefore, there is a mismatch of currencies between revenues and costs. Additionally, the Company has debts linked to different indices and currencies, which may impact its cash flows. In order to mitigate the potential adverse effects of each financial risk factor, the Company follows a Financial Risk Management Policy that establishes governance and guidelines for the financial risk management process, as well as metrics for measurement and monitoring. This policy establishes guidelines and rules for: (i) Commodities Exposure Management, (ii) Foreign Exchange Exposure Management, (iii) Interest Rate Exposure Management, (iv) Issuers and Counterparties Risk Management, and (v) Liquidity and Financial Indebtedness Management. All strategies and proposals must comply with the Financial Risk Management Policy guidelines and rules, be presented to and discussed with the Finance Committee of the Board of Directors, and, when applicable, submitted for the approval of the Board of Directors, under the governance structure described in the Financial Risk Management Policy. (a) Market risk The purpose of the market risk management process and all related actions are intended to protect the Company’s cash flows against adverse events, such as changes in foreign exchange rates, interest rates and commodity prices, to maintain the ability to pay financial obligations, and to comply with liquidity and indebtedness levels defined by management. (i) Sensitivity analysis Presented below is a sensitivity analysis of the main risk factors that affect the pricing of the outstanding financial instruments relating to cash and cash equivalents, financial investments, loans and financings, and derivative financial instruments. The main sensitivities are the exposure to changes in the USD exchange rate, the Interbank Deposit Certificate (“CDI”) interest rates, the National Broad Consumer Price Index (“IPCA”) and the commodity prices. The scenarios for these factors are prepared using market sources and other relevant sources, in compliance with the Company's policies. The scenarios on December 31, 2021 are described below: · Scenario I: considers a change in the market forward yield curves and quotations as of December 31, 2021, according to the base scenario defined by the Company for March 31, 2022. · Scenario II: considers a change of + or -25% in the market forward yield curves as of December 31, 2021. · Scenario III: considers a change of + or -50% in the market forward yield curves as of December 31, 2021. Schedule of sensitivity analysis risk factors affecting price of financial instrument Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2021 Cash and cash equivalents and financial investments Loans and financings Derivative financial instruments Changes from 2021 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Foreign exchange rates BRL 5.5805 65,403 272,323 (66) 1.46 (1) 19 38 (19) (38) (3,029) 51,730 103,460 (51,730) (103,460) EUR 1.1327 3,604 - - 1.53 55 (901) (1,802) 901 1,802 - - - - - PEN 4.0069 23,846 1,783 - -0.33 (72) (5,515) (11,031) 5,515 11,031 - - - - - CAD 1.2718 1,040 - - 0.94 - - - - - 10 (260) (520) 260 520 NAD 15.9600 1,427 - - -6.08 - - - - - (87) (357) (713) 357 713 Interest rates BRL - CDI - SELIC 9.15 64,871 81,473 (66) 191 (40) 1,466 3,083 (1,339) (2,570) - - - - - USD - LIBOR 0.22 - 88,677 (6,465) 2 (24) 53 107 (53) (107) 4 (5) (10) 5 10 IPCA - TLP 10.06 - 171,346 - -456 7,813 4,309 8,619 (4,309) (8,619) - - - - - TJLP 5.32 - 19,325 - 44 (85) 257 514 (257) (514) - - - - - Commodities Zinc 3,630 - - (6,465) -18.73 33,485 23,740 47,481 (23,740) (47,481) (6,613) (4,689) (9,378) 4,689 9,378 (ii) Foreign exchange risk Foreign exchange risk is managed through the Company’s Financial Risk Management Policy, which states that the objectives of derivative transactions are to reduce cash flow volatility, hedge against foreign exchange exposure and minimize currency mismatches. Presented below are the financial assets and liabilities in foreign currencies on December 31, 2021. These mainly result from NEXA BR’s operations, for which the functional currency is the BRL. Intercompany loans balances are fully eliminated in the consolidated financial statements. However, the related foreign exchange gain or loss is not, and is presented as foreign exchange effects. Summary of financial assets and liabilities in foreign currency USD amounts of foreign currency balances 2021 2020 Assets Cash, cash equivalents and financial investments 95,320 257,706 Derivative financial instruments 314 22,376 Trade accounts receivables 34,858 42,612 Total assets 130,492 322,694 Liabilities Loans and financings 272,353 454,372 Derivative financial instruments 380 21,484 Trade payables 200,983 165,019 Lease liabilities 7,921 20,792 Use of public assets 24,384 20,787 Total liabilities 506,021 682,454 Net exposure (375,529) (359,760) (iii) Interest rate risk The Company's interest rate risk arises mainly from long-term loans. Loans at variable rates expose the Company to cash flow interest rate risk. Loans at fixed rates expose the Company to fair value risk associated with interest rates. For further information related to interest rates, refer to note 24. The Company’s Financial Risk Management Policy establishes guidelines and rules to hedge against changes in interest rates that impact the Company’s cash flows. Exposure to each interest rate is projected until the maturity of the assets and liabilities exposed to this index. Occasionally the Company enters into floating to fixed interest rate swaps to manage its cash flow interest rate risk. In the case of loans and financings contracted together with swaps, the Company accounts for them under the fair value option to eliminate the accounting mismatch that would arise if amortized cost were used. For more information, please refer to note 24 (c). (iv) Commodity price risk The commodity price risk is related to the volatility in the prices of the Company's commodities. Prices fluctuate depending on demand, production capacity, producers' inventory levels, the commercial strategies adopted by large producers, and the availability of substitutes for these products in the global market. The Company’s Financial Risk Management Policy establishes guidelines to mitigate the risk of fluctuations in commodity prices that could impact the Company's cash flows. The exposure to the price of each commodity considers the monthly production projections, inputs purchases and the maturity flows of hedges associated with them. Commodity prices hedge transactions are classified into the following hedging strategies: Hedges for sales of zinc at a fixed price (Customer Hedge) The objective is to convert fixed priced sales to floating prices, observed on the London Metal Exchange (LME). The purpose of the strategy is to maintain the revenues of a business unit linked to the LME prices. These transactions usually relate to purchases of zinc for future settlement on the over-the-counter market. Hedges for mismatches of quotational periods (Hedge Book) The objective is to hedge quotational periods mismatches arising between the purchases of metal concentrate or processed metal and the sale of the processed metal. These transactions usually relate to purchases and sales of zinc and silver for future trading on the over-the-counter market. Hedges for the operating margin of metals (Strategic Hedges) The objective is to reduce the volatility of the cash flow from LME prices for zinc, copper and silver and ensure a more predicable operating margin. This strategy is carried out through the sale of zinc forward contracts. For NEXA BR, the transaction also involves the sale of USD forward contracts to hedge the operating margin in BRL. (b) Credit risk Trade receivables, derivative financial instruments, term deposits, bank deposit certificates ("CDBs") and government securities create exposure to credit risk with respect to the counterparties and issuers. The Company has a policy of making deposits in financial institutions that have, at least, a rating from two of the following international rating agencies: Fitch, Moody’s or Standard & Poor’s. The minimum rating required for counterparties is determined as follows: - Onshore operations: rating "A", or equivalent, on a local scale by two rating agencies. In the case of foreign financial institutions that have a local rating by only one rating agency, it should be at least "AA-", and its headquarters should have a rating "A" minimum on a global scale. - Offshore operations: rating "BBB-", or equivalent, on a global scale by two rating agencies. In the case of financial institutions in Peru or in Luxembourg, local ratings from local agencies associated with rating agencies approved in the Company’s policy are accepted. In case that only a global rating is available, it will be eligible provided that it has a rating "BBB-" at least by one rating agency. In the case of financial institutions that do not have a rating available for a specific country, it will be eligible provided that its headquarters follow the minimum ratings specified above. The pre-settlement risk methodology is used to assess counterparty risks in derivative transactions. This methodology consists of determining the risk associated with the likelihood (via Monte Carlo simulations) of a counterparty defaulting on the financial commitments defined by contract. The global ratings were obtained from the rating agencies Fitch, Moody’s or Standard & Poor’s ratings and are related to commitments in foreign or local currency and, in both cases, they assess the capacity to honor these commitments, using a scale applicable on a global basis. Therefore, both ratings in foreign currency and in local currency are internationally comparable ratings. The ratings used by the Company are always the most conservative ratings of the referred agencies. In the case of credit risk arising from customer credit exposure, the Company assesses the credit quality of the customer, considering mainly the history of the relationship and financial indicators defining individual credit limits, which are continuously monitored. The Company performs initial analyses of customer credit and, when deemed necessary, guarantees or letters of credit are obtained to mitigate the credit risk. Additionally, most sales to the United States of America, Europe and Asia are collateralized by letters of credit and credit insurance. The carrying amount of the Company’s financial instruments best represents the maximum exposure to their credit risk. The following table reflects the credit quality of issuers and counterparties for transactions involving cash and cash equivalents, financial investments and derivative financial instruments. The variations presented are mainly related to the Company's transactions in the year and not to changes in the counterparties’ ratings. Schedule of credit quality of financial assets 2021 2020 Local rating Global rating Total Local rating Global rating Total (ii) Cash and cash equivalents AAA 117,439 - 117,439 131,489 - 131,489 AA+ - - - 1,959 - 1,959 AA 19 - 19 30,178 - 30,178 AA- - 21,252 21,252 8,754 21,632 30,386 A+ 35,923 318,120 354,043 164,987 249,197 414,184 A 25,354 115,653 141,007 69,608 257,999 327,607 A- - 104,528 104,528 - 116,992 116,992 BBB+ - - - - - - BBB - - - - - - BBB- - - - - 30,706 30,706 BB- - - - - - - No rating (i) 2,660 2,869 5,529 1,289 1,373 2,662 181,395 562,422 743,817 408,264 677,899 1,086,163 Financial investments AAA 16,849 - 16,849 32,411 - 32,411 AA+ - - - 2,257 - 2,257 AA 2,353 - 2,353 46 - 46 AA- - - - 330 - 330 19,202 - 19,202 35,044 - 35,044 Derivative financial instruments AAA 314 - 314 2,068 - 2,068 A+ - 8,491 8,491 - 1,977 1,977 A- - 7,589 7,589 - 27,935 27,935 314 16,080 16,394 2,068 29,912 31,980 (i) Refers to subsidiaries of international financial institutions that do not have a global rating available in the international rating agencies. According to the Company's policy, for these financial institutions, the rating of the financial institution controlling entities is assumed, which must be at least BBB-. (ii) As mentioned in note 5 (c), in 2021, the Company modified its Financial Risk Management Policy, allowing the use of local ratings available from local agencies in Peru, for assessing the credit risks of financial institutions in Peru. Therefore, the Company is presenting the 2020 comparative balances according to the updated policy. (c) Liquidity risk Liquidity risk is managed through the Company's Financial Risk Management Policy, which aims to ensure the availability of funds to meet the Company’s financial obligations. The main liquidity measurement and monitoring instrument is the cash flow projection, using a minimum projection period of 12 months from the benchmark date. The table below shows the Company's financial obligations to be settled by the Company based on their maturity (the remaining period from the balance sheet up to the contractual maturity date). The amounts below represent the estimated undiscounted future cash flows, which include interests to be incurred and, accordingly, do not reconcile directly with the amounts presented in the consolidated balance sheet. Summary of estimated future cash flow 2021 Less than 1 year Between 1 and 3 years Between 3 Over 5 years Total Loans and financings 114,240 443,780 247,226 1,439,295 2,244,541 Lease liabilities 17,340 3,744 - - 21,084 Derivative financial instruments 22,684 146 71 24 22,925 Trade payables 411,818 - - - 411,818 Confirming payables 232,860 - - - 232,860 Salaries and payroll charges 76,031 - - - 76,031 Dividends payable 11,441 - - - 11,441 Related parties 321 71 - - 392 Asset retirement and environmental obligations 31,953 64,752 85,021 243,076 424,803 Use of public assets 1,368 3,244 3,657 21,840 30,109 920,056 515,737 335,975 1,704,235 3,476,004 2020 Less than 1 year Between 1 and 3 years Between 3 and 5 years Over 5 years Total Loans and financings 214,614 484,579 459,215 1,490,253 2,648,661 Lease liabilities 15,999 9,690 - - 25,689 Derivative financial instruments 5,390 51 21,374 59 26,874 Trade payables 370,122 - - - 370,122 Confirming payables 145,295 - - - 145,295 Salaries and payroll charges 56,107 - - - 56,107 Dividends payable 4,557 - - - 4,557 Related parties - 561 - - 561 Asset retirement and environmental obligations 33,714 53,501 70,444 220,241 377,900 Use of public assets 1,270 2,943 5,131 20,200 29,544 847,068 551,325 556,164 1,730,753 3,685,310 (d) Capital management The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so it can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain an optimal capital structure to reduce the cost of capital. To maintain or adjust the capital structure, the Company may adjust the dividends level paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company monitors capital mainly using the leverage ratio, calculated as net debt to Adjusted EBITDA. Net debt and Adjusted EBITDA measures should not be considered in isolation or as a substitute for net income or operating income, as indicators of operating performance, or as alternatives to cash flow as measures of liquidity. Additionally, management’s calculation of Adjusted EBITDA may be different from the calculation used by other companies, including competitors in the mining and smelting industry, so these measures may not be comparable to those of other companies. Summary of leverage ratio Note 2021 2020 2019 Loans and financings 24 1,699,315 2,024,314 1,508,557 Derivative financial instruments 16 (a) 6,531 (5,106) 2,294 Lease liabilities 23 (b) 19,639 25,689 34,384 Cash and cash equivalents 15 (743,817) (1,086,163) (698,618) Financial investments - (19,202) (35,044) (58,775) Net debt (i) 962,466 923,690 787,842 Net income (loss) for the period 156,087 (652,506) (157,516) Plus (less): Depreciation and amortization 21, 22 and 23 258,711 243,925 317,892 Net financial results 10 136,902 278,175 104,854 Income tax expense (benefit) 11 (a) 153,204 (24,152) (58,364) EBITDA 704,904 (154,558) 206,866 Impairment of non-current assets - 557,497 142,133 Miscellaneous adjustments (664) - - Adjusted EBITDA (ii) 704,240 402,939 348,999 Leverage ratio (Net debt/Adjusted EBITDA) 1.37 2.29 2.26 (i) Net debt is defined as (a) loans and financings, plus lease liabilities, plus or minus (b) the fair value of derivative financial instruments less (c) cash and cash equivalents, less (d) financial investments. (ii) Adjusted EBITDA for capital management calculation uses the same assumptions described in note 2 for Adjusted EBITDA by segment. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 13 Financial instruments Accounting policy Normal purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss, if any, are initially recognized at fair value, and transaction costs are expensed in the income statement. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all the risks and rewards of ownership. Financial assets at fair value through profit or loss and at fair value through other comprehensive income are subsequently carried at fair value. Financial assets at amortized costs are subsequently measured using the effective interest rate method. Equity instruments may be irrevocably elected on their initial recognition for their fair value changes to be presented in other comprehensive income instead of in the income statement. Since the objective of the Company’s equity instruments is to buy more participation in a project and not sell the investment, they are classified as fair value through other comprehensive income. Then, the Company classifies its financial assets and liabilities under the following categories: amortized cost, fair value through profit or loss and fair value through other comprehensive income. (i) Amortized cost Financial assets measured at amortized cost are assets held within a business model whose objective is to hold financial assets to collect contractual cash flows and for which the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Financial liabilities are measured at amortized cost, except for financial liabilities at fair value through profit or loss such as derivatives and some specific loans and financings. (ii) Fair value through profit or loss Financial assets measured at fair value through profit or loss are assets which an entity manages with the objective of realizing cash flows through the sale of such assets and financial assets that do not give rise to cash flows that are SPPI on the principal amount outstanding. Financial liabilities measured at fair value through profit or loss are liabilities which were not measured at amortized cost, such as derivatives and loans and financings that are designated at fair value option when is necessary to eliminate the accounting mismatch that would arise if amortized cost were used. (iii) Fair value through other comprehensive income Financial assets measured at fair value through other comprehensive income are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and for which the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding. Also, investments in equity instruments are measured at fair value through other comprehensive income as mentioned above. (a) Breakdown by category The Company’s financial assets and liabilities are classified as follows: Schedule of financial instruments breakdown by category 2021 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Cash and cash equivalents 15 743,817 - - 743,817 Financial investments 19,202 - - 19,202 Derivative financial instruments 16 (a) - 16,394 - 16,394 Trade accounts receivables 17 84,969 146,205 - 231,174 Investments in equity instruments 13 (b) - - 3,723 3,723 Related parties (i) 20 2 - - 2 847,990 162,599 3,723 1,014,312 2021 Liabilities per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Loans and financings 24 (a) 1,610,638 88,677 1,699,315 Lease liabilities 23 (b) 19,639 - - 19,639 Derivative financial instruments 16 (a) - 22,925 - 22,925 Trade payables 25 411,818 - - 411,818 Confirming payables 29 232,860 - - 232,860 Use of public assets (ii) 24,384 - - 24,384 Related parties (ii) 20 392 - - 392 2,299,731 111,602 - 2,411,333 2020 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Cash and cash equivalents 15 1,086,163 - - 1,086,163 Financial investments 35,044 - - 35,044 Derivative financial instruments 16 (a) - 31,980 - 31,980 Trade accounts receivables 17 64,262 164,770 - 229,032 Related parties (i) 20 2 - - 2 1,185,471 196,750 - 1,382,221 2020 Liabilities per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Loans and financings 24 (a) 1,822,756 201,558 - 2,024,314 Lease liabilities 23 (b) 25,689 - - 25,689 Derivative financial instruments 16 (a) - 26,874 - 26,874 Trade payables 25 370,122 - - 370,122 Confirming payables 29 145,295 - - 145,295 Use of public assets (ii) 19,215 - - 19,215 Related parties (ii) 20 561 - - 561 2,383,638 228,432 - 2,612,070 (i) Classified as Other assets in the consolidated balance sheet. (ii) Classified as Other liabilities in the consolidated balance sheet. (b) Investment in equity instruments – Tinka shares acquisition On March 17, 2021, the Company acquired 29,895,754 6,220 On April 16, 2021, the Company acquired 654,758 136 After these acquisitions, the Company holds approximately 9.0% of the issued and outstanding common shares of Tinka. This transaction is accounted for as an investment in equity instruments at its acquisition cost and is being subsequently measured at fair value through other comprehensive income. |
Fair value estimates
Fair value estimates | 12 Months Ended |
Dec. 31, 2021 | |
Fair value estimates | 14 Fair value estimates Critical accounting estimates and judgments The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses judgment to select among a variety of methods and makes estimates and assumptions that are mainly based on market conditions existing at the end of each reporting period. Although management has used its best judgment in estimating the fair value of its financial instruments, any technique for making said estimates and assumptions involves some level of inherent fragility. (a) Analysis The main financial instruments and the estimates and assumptions made by the Company for their valuation are described below: · Cash and cash equivalents, financial investments, trade accounts receivables and other current assets – considering their nature, terms and maturity, the carrying amounts approximate their fair value. · Financial liabilities – these instruments are subject to the usual market interest rates. The fair value is based on the present value of expected future cash disbursements, at interest rates currently available for debt with similar maturities and terms and adjusted for the Company’s credit risk. Loans and financings are measured at amortized cost, except for certain contracts for which the Company has elected the fair value option. · Derivative financial instruments – the fair value is determined by calculating their present value through yield curves at the closing dates. The curves and prices used in the calculation for each group of instruments are developed based on data from Brazilian Securities, Commodities and Futures Exchange – B3, Central Bank of Brazil, LME and Bloomberg, interpolated between the available maturities. The main derivative financial instruments are: · Swap contracts – the present value of both the assets and liabilities are calculated through the discount of forecasted cash flows by the interest rate of the currency in which the swap is denominated. The difference between the present value of the assets and the liabilities generates its fair value. · Forward contracts – the present value is estimated by discounting the notional amount multiplied by the difference between the future price at the reference date and the contracted price. The future price is calculated using the convenience yield of the underlying asset. It is common to use Asian non-deliverable forwards for hedging non-ferrous metals positions. Asian contracts are derivatives in which the underlying is the average price of certain asset over a range of days. · Option contracts – the present value is estimated based on the Black and Scholes model, with assumptions that include the underlying asset price, strike price, volatility, time to maturity and interest rate. The underlying asset price is the average price of the foreign exchange rate in the fixing month. (b) Fair value by hierarchy Classification of financial assets and liabilities in the fair value hierarchy 2021 Note Level 1 Level 2 Total Assets Derivative financial instruments 16 (a) - 16,394 16,394 Trade accounts receivables - 146,205 146,205 Investments in equity instruments (i) 3,723 - 3,723 3,723 162,599 166,322 Liabilities Derivative financial instruments 16 (a) - 22,925 22,925 Loans and financings designated at fair value (ii) - 88,677 88,677 - 111,602 111,602 2020 Note Level 1 Level 2 Total Assets Derivative financial instruments 16 (a) - 31,980 31,980 Trade accounts receivables - 164,770 164,770 - 196,750 196,750 Liabilities Derivative financial instruments 16 (a) - 26,874 26,874 Loans and financings designated at fair value (ii) - 201,558 201,558 - 228,432 228,432 (i) The Level 1 fair value amount of the investments in equity instruments is determined using the share´s quotation as of the last day of the reporting period. (ii) As explained above, certain loans and financings are measured at fair value. The carrying amount of other financial instruments measured at amortized cost do not differ significantly from their fair value. The Company discloses fair value measurements based on their level on the following fair value measurement hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities traded in active markets at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Company is the current bid price. Level 2: Financial instruments not traded in an active market for which fair value is determined using valuation techniques, when all of the significant inputs required to identify the fair value of an instrument are observable. Specific valuation techniques used to value financial instruments include: · Quoted market prices or dealer quotes for similar instruments are used where available; · The fair values of interest rate swaps are calculated at the present value of the estimated future cash flow based on observable yield curves; and · The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted to present value. Other techniques, such as discounted cash flows analysis, are used to determine the fair value of the remaining financial instruments. Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) are classified as Level 3. As of December 31, 2021, there were no financial assets and liabilities carried at fair value classified as Level 3. Fair value estimates were assessed by the Company to evaluate the impacts of the COVID-19 and the only impact identified is related to the changes in the Company’s credit risk which affect the fair value of debts which are designated as fair value option. Refer to note 24. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 15 Cash and cash equivalents Accounting policy Cash and cash equivalents include cash, bank deposits, and highly liquid short-term investments (investments with an original maturity less than 90 days), which are readily convertible into a known amount of cash and subject to an immaterial risk of changes in value. Bank overdrafts are shown within Loans and financings in current liabilities in the balance sheet. (a) Composition Schedule of cash and cash equivalents 2021 2020 Cash and banks 276,761 113,017 Term deposits 467,056 973,146 Total cash and cash equivalents 743,817 1,086,163 (b) Changes in operating assets and liabilities Schedule of changes in operating assets and liabilities 2021 2020 2019 Decrease (increase) in assets Trade accounts receivables (9,375) (68,896) (8,634) Inventory (102,068) 8,883 (35,425) Derivative financial instruments (14,936) (7,809) (4,649) Other assets (47,312) 30,557 (45,872) Increase (decrease) in liabilities Trade payables 44,880 21,589 18,823 Confirming payables 87,565 62,525 12,278 Other liabilities 2,759 58,481 12,856 Changes in operating assets and liabilities (38,487) 105,330 (50,623) (c) Main non-cash investing and financing transactions During 2021, the Company had: (i) additions to right-of-use assets in the amount of USD 5,174 5,785 3,343 14,314 19,380 5,066, 19,407 |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Derivative financial instruments | 16 Derivative financial instruments Accounting policy Derivatives are initially recognized at fair value as at the date on which a derivative contract is entered into and are subsequently measured at fair value. Derivatives are only used for risk mitigation purposes and not as speculative investments. When derivatives do not meet the hedge accounting criteria, they are classified as held for trading and accounted for at fair value through profit or loss. The Company documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking the hedge transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions and accounted for as hedge accounting were, and will continue to be, highly effective in offsetting changes in the fair value or cash flow of hedged items. (i) Cash flow hedge Derivatives that are designated for hedge accounting recognition are qualified as cash flow hedges when they are related to a highly probable forecasted transaction. The effective portion of the changes in fair value is recognized in shareholders’ equity in Accumulated other comprehensive income and is subsequently reclassified to the income statement in the same period when the hedged expected cash flows affect the income statement. The reclassification adjustment is recognized in the same income statement line item affected by the highly probable forecasted transaction, while gains or losses related to the non-effective portion are immediately recognized as Other income and expenses, net. When a hedging instrument expires, is sold or no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in shareholders’ equity at that time remains in shareholders’ equity and is recognized when the forecast transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was previously accounted in shareholders’ equity is immediately transferred to the income statement within Other income and expenses, net. Currently, the Company classifies as cash flow hedge only the strategies related to mismatches of quotational periods. (ii) Fair value hedge Derivatives that are designated for hedge accounting recognition are qualified as fair value hedges when they are related to assets or liabilities already recognized in the consolidated balance sheet. Changes in the fair values of derivatives that are designated and qualify as fair value hedges and changes in the fair value of the hedged item are recorded in the income statement in the same period. Currently, the Company classifies as fair value hedge the strategies related to interest rate risk, foreign exchange risk, and some mismatches of quotational periods. (iii) Derivatives not designated as hedging instruments Changes in the fair value of derivative financial instruments not designated as hedging instruments are recognized immediately in the income statement within Other income and expenses, net when related to price risk and within Net financial results when related to interest rate or foreign exchange rate risk. Currently, the Company do not designate as hedging instruments the strategies related to the sales of zinc at a fixed price. (a) Fair value by strategy Schedule of fair value by strategy 2021 2020 Strategy Per Unit Notional Fair value Notional Fair value Mismatches of quotational periods Zinc forward ton 215,809 (9,898) 204,394 2,398 (9,898) 2,398 Sales of zinc at a fixed price Zinc forward ton 8,787 3,433 15,695 1,815 3,433 1,815 Interest rate risk IPCA vs. CDI BRL 226,880 (66) 226,880 1,310 (66) 1,310 Foreign exchange risk BRL vs. USD (i) BRL - - 477,000 (417) - (417) (6,531) 5,106 Current assets 16,292 16,329 Non-current assets 102 15,651 Current liabilities (22,684) (5,390) Non-current liabilities (241) (21,484) (i) Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021 (b) Changes in fair value Schedule of changes in fair value 2021 Strategy Inventory Cost of sales Net revenues Other income and expenses, net Net financial results Other comprehensive Realized (loss) gain Mismatches of quotational 1,146 (37,963) 9,709 1,820 - 454 (12,538) Sales of zinc at a fixed price - - - 5,666 - 34 4,082 Interest rate risk – IPCA vs. CDI - - - - 1,211 - 2,587 Foreign exchange ri–k - BRL vs USD (i) - - - - (6,851) - (7,268) 2021 1,146 (37,963) 9,709 7,486 (5,640) 488 (13,137) (i) Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021. |
Trade accounts receivables
Trade accounts receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade accounts receivables | 17 Trade accounts receivables Accounting policy Trade accounts receivables are amounts due from customers for goods sold or services provided in the ordinary course of the Company’s business. Trade accounts receivables are recognized initially at fair value and subsequently measured at: (i) Fair value through profit or loss when are related to the Company’s accounts receivables portfolio that is included in a forfaiting program whereby the Company, at its discretion, can discount certain outstanding trade accounts receivables and receive payments in advance. The program is used to meet short-term liquidity needs. Trade accounts receivables within this program are derecognized since all risks and rewards, control of the assets and contractual rights to receive the assets cash flows are transferred to the counterparty. (ii) Fair value through profit or loss when are related to sales that are subsequently adjusted to changes in LME prices. These accounts receivable do not meet the SPPI criteria because there is a component of commodity price risk that modifies the cash flows that otherwise would be required by the sales contract. (iii) Amortized cost using the effective interest rate method, less impairment, when the receivables do not meet the aforementioned classifications. Credit risk can arise from non-performance by counterparties of their contractual obligations to the Company. To ensure an effective credit risk evaluation, management applies procedures related to the application for credit granting and approvals, renewal of credit limits, continuous monitoring of credit exposure in relation to established limits and events that trigger requirements for secured payment terms. As part of the Company’s process, the credit exposures with all counterparties are regularly monitored and assessed. The Company applies the IFRS 9 simplified approach to measure the impairment losses for trade accounts receivables. This approach requires the use of the lifetime expected credit losses on its trade accounts receivables measured at amortized cost. To calculate the lifetime expected credit losses the Company uses a provision matrix and forward-looking information. The additions to impairment of trade accounts receivables are included in selling expenses. Trade accounts receivables are generally written off when there is no expectation of recovering additional cash. Schedule of composition of trade accounts receivables (a) Composition 2021 2020 Trade accounts receivables 233,623 229,800 Related parties - note 20 1,016 2,411 Impairment of trade accounts receivables (3,465) (3,179) 231,174 229,032 Schedule of changes in impairment of trade accounts receivables (b) Changes in impairment of trade accounts receivables 2021 2020 Balance at the beginning of the year (3,179) (2,337) Additions (1,586) (2,643) Reversals 1,206 1,288 Foreign exchange gains 94 513 Balance at the end of the year (3,465) (3,179) Schedule of analysis of trade accounts receivables by currency (c) Analysis by currency 2021 2020 USD 196,316 186,420 BRL 34,464 41,601 Other 394 1,011 231,174 229,032 Schedule of aging of trade accounts receivables (d) Aging of trade accounts receivables 2021 2020 Current 222,083 222,670 Up to 3 months past due 9,201 6,728 From 3 to 6 months past due 51 102 Over 6 months past due 3,304 2,711 234,639 232,211 Impairment (3,465) (3,179) 231,174 229,032 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory | 18 Inventory Accounting policy Inventory is stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related fixed production overheads (based on normal operating capacity). Variable production overhead costs are included in inventory cost based on the actual production level. The net realizable value is the estimated selling price in the ordinary course of business, less any additional selling expenses. Imports in transit are stated at the accumulated cost of each import. A provision for obsolete inventory - finished products, semi-finished products, raw materials and auxiliary materials - is recognized when items cannot be used in normal production or sold because they are damaged or do not meet the Company’s specification. Slow-moving provision is recognized for inventory items that are in excess of the expected normal use or sale. The amount of slow-moving provision recognized is determined based on 20% of the carrying amount for each six-month period without use or sale. Schedule of inventories (a) Composition 2021 2020 Finished products 157,285 94,033 Semi-finished products 60,315 56,335 Raw materials (i) 90,087 66,278 Auxiliary materials and consumables 94,564 68,950 Inventory provisions (29,749) (29,074) Total 372,502 256,522 (i) Raw materials include a USD 23,009 reclassification from Assets and projects under construction, within Property, plant and equipment, to Inventory, related to the ore pile costs that were incurred during Aripuanã’s commissioning phase and which should already be included in the Company's inventory. Schedule of changes in the provision for obsolescence (b) Changes in the provision of the year 2021 2020 Balance at the beginning of the year (29,074) (28,398) Additions (15,094) (11,439) Reversals 13,986 9,647 Exchange variation gains 433 1,116 Balance at the end of the year (29,749) (29,074) |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2021 | |
Other assets | 19 Other assets Schedule of the composition of other assets 2021 2020 Other recoverable taxes 128,377 127,815 Advances to third parties 8,545 15,006 Prepaid expenses 10,361 10,522 Judicial deposits 5,446 5,566 Other assets 26,974 25,363 Total other assets 179,703 184,272 Current assets 81,119 91,141 Non-current assets 98,584 93,131 |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2021 | |
Related parties | 20 Related parties Schedule of related parties transactions Trade accounts receivables Related parties’ assets Trade payables Dividends payable Related parties’ liabilities Assets and liabilities 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Parent Votorantim S.A. (i) - - 2 2 1,102 809 - - - - Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - - 1,890 1,160 - - - - Companhia Brasileira de Alumínio 158 1,479 - - 264 175 - - - - Votorantim Cimentos S.A. 551 595 64 121 - - - - Votener - Votorantim Comercializadora de Energia Ltda. 302 332 - - 945 6,330 - - - - Votorantim International CSC S.A.C - - - - 306 421 - - 152 - Other 5 5 - - 240 871 11,441 4,557 240 561 1,016 2,411 2 2 4,811 9,887 11,441 4,557 392 561 Current 1,016 2,411 - - 4,811 9,887 11,441 4,557 - - Non-current - - 2 2 - - - - 392 561 1,016 2,411 2 2 4,811 9,887 11,441 4,557 392 561 Sales Purchases Profit and loss 2021 2020 2019 2021 2020 2019 Parent Votorantim S.A. (i) - - 26 3,735 4,378 6,176 Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - 41,498 26,280 5,046 Companhia Brasileira de Alumínio 8,988 7,828 2,157 3,736 1,156 1,964 Votorantim Cimentos S.A. - - 196 661 524 2,186 Votener - Votorantim Comercializadora de Energia Ltda. 5,993 9,740 3,288 16,207 7,721 9,596 Votorantim International CSC S.A.C - - - 4,278 6,638 5,584 Other 113 11 510 1,120 582 1,581 15,094 17,579 6,177 71,235 47,279 32,133 (i) The Company entered into an agreement with VSA on September 4, 2008, for services provided by its Center of Excellence (“CoE”) related to administrative activities, human resources, back office, accounting, taxes, technical assistance, and training, among others. Under a cost sharing agreement, the Company reimburses VSA for the expenses related to these activities in respect of the Company. (ii) As part of the execution of the Aripuanã project, in June 2019 the Company entered into a mining development services agreement with Andrade Gutierrez Engenharia S.A., in which one of the Company director’s close family member may have significant influence at its holding level. Additionally, in June 2020, NEXA entered into one additional agreement with Consórcio Construtor Nova Aripuanã (a consortium of the Andrade Gutierrez group of companies) in connection with construction services for the Aripuanã project. (a) Key management compensation Key management includes the members of the Company's global executive team and Board of Directors. Key management compensation, including all benefits, was as follows: Schedule of key management compensation 2021 2020 Short-term benefits 6,602 6,765 Other long-term benefits 664 1,791 Total key management compensation 7,266 8,556 Short-term benefits include fixed compensation, payroll charges and short-term benefits under the Company’s variable compensation program. Other long-term benefits relate to the variable compensation program. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | 21 Property, plant and equipment Accounting policy Property, plant and equipment are stated at their historical cost of acquisition or construction less accumulated depreciation and any recognized impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition and construction of the assets. The mining projects development costs that are registered within Property, plant and equipment include (i) direct and indirect costs attributed to building the mining facilities; (ii) financial charges incurred during the construction period; (iii) depreciation of other fixed assets used during construction; and, (iv) estimated decommissioning and site restoration expenses. Subsequent costs are included in the asset’s carrying amount, or recognized as a separate asset as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and they can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the income statement during the reporting period in which they are incurred. Replacement costs are included in the carrying amount of the asset when it is probable that the Company will realize future economic benefits in excess of the benefits expected from the asset in its current condition. Replacement costs are depreciated over the remaining useful life of the related asset. Land is not depreciated. Depreciation of other assets is calculated using the straight-line method to reduce their costs to their residual values over their estimated useful lives. The assets' residual values and useful lives are reviewed annually and adjusted if appropriate. An asset's carrying amount is reduced to its recoverable amount when it is greater than the estimated recoverable amount, in accordance with the criteria adopted by the Company to determine the recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within Other income and expenses, net in the income statement. Loans and financings costs directly related to the acquisition, construction or production of a qualifying asset that requires a substantial period of time to prepare for its intended use or sale are capitalized as part of the cost of that asset when it is probable that future economic benefits associated with the item will flow to the Company and costs can be measured reliably. Stripping costs In its surface mining operations, the Company must remove overburden and other waste to gain access to mineral ore deposits. The removal process is referred to as stripping. During the development of a mine, before production commences, when the stripping activity improves access to the ore body, the component of the ore body for which access has been improved can be identified and the costs can be measured reliably, a stripping activity asset is capitalized as part of the investment in the construction of the mine and is accounted for as part of Property, plant and equipment within Assets and projects under construction. Subsequently, when the operation starts, the stripping costs are transferred to Buildings and are depreciated by a linear calculation considering the asset’s useful life. Stripping costs incurred during the production phase of operations are treated as production costs and are part of the inventory cost. Mining Projects The Company starts to capitalize a project’s mineral exploration and evaluation costs at the beginning of its feasibility study phase, following completion of a pre-feasibility study in which probability of economic feasibility has been established and where there is sufficient geologic and economic certainty of converting mineral resources into proven and probable mineral reserves at a development stage (construction or execution phase) or production stage based on various factors including the known geology, metallurgy and life-of-mine plans. Capitalized costs incurred during a project’s mineral exploration and evaluation stages are classified within Mining projects, under Property, plant and equipment until the project starts its development stage and are only depreciated by the units of production (“UoP”) method once the development stage finishes and the project’s operation starts. Costs incurred during a project’s development stage are also capitalized under Property, plant, and equipment but within Assets and projects under construction. In this way, the capitalized mineral exploration and evaluation costs will remain within Mining projects and will only be depreciated once the development stage finishes and the project´s operation starts. Once the development stage is finished and the project’s operation starts, the capitalized development costs are reclassified to the appropriate group of assets considering their nature and are depreciated on a linear calculation based on the assets’ useful life. Based on the above, once a project begins operation, there will be depreciation coming from the project’s capitalized mineral exploration and evaluation costs within the Mining projects account and based on the UoP method and from the project’s capitalized development costs within the corresponding group of assets based on their useful life. The carrying value of the capitalized mineral exploration and evaluation costs, which remain within Mining projects, and the capitalized development costs, which are within Assets and projects under construction, of the projects are assessed for impairment at least annually or whenever evidence indicates that the assets may be impaired in accordance with IFRS 6 and IAS 36. If the Company decides at any moment to discontinue the project, this could be an impairment indicator that will be assessed under the impairment test. For purposes of this impairment assessment, the projects are allocated to cash-generating units when applicable. The annual impairment test is disclosed in note 31. Refer to note 8 for the Company’s accounting policy related to expensed mineral exploration and project evaluation costs for mining projects. Costs to acquire exploration legal mining rights are included as Intangible within Rights to use natural resources as explained in note 23. Asset retirement obligations An asset retirement obligation is an obligation related to the permanent removal from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a tangible long-lived asset. At the initial recognition of an asset retirement obligation and at the periodical revisions of the expected disbursements and the discount rate, the changes in the liability are charged to Property, plant and equipment. The capitalized amount recognized in Property, plant and equipment is depreciated based on the UoP method. Any reduction in the provision that exceeds the carrying amount of the asset, is immediately recognized in the income statement as Other income and expenses, net. Impairment Refer to note 31 for the Company’s accounting policy related to impairment of Property, plant and equipment. (a) Changes in the year Schedule of detailed information about property, plant and equipment 2021 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligations Mining projects (iii) Other Total Balance at the beginning of the year Cost 1,022,432 2,360,426 596,675 211,650 292,322 36,816 4,520,321 Accumulated depreciation and impairment (567,829) (1,734,232) (69,143) (124,838) (108,698) (17,285) (2,622,025) Net balance at the beginning of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Reclassification (i) - - - - (31,851) - (31,851) Net balance at the beginning of the year - adjusted 454,603 626,194 527,532 86,812 151,773 19,531 1,866,445 Additions (ii) 12 671 507,907 - - 1,576 510,166 Disposals and write-offs (567) (7,663) (454) - - (1,751) (10,435) Depreciation (56,493) (110,895) - (6,436) (2,062) (1,143) (177,029) Foreign exchange effects (15,963) (23,188) (40,278) (2,452) (1,027) (631) (83,539) Transfers (iv) 57,393 82,252 (182,612) - 16,553 2,657 (23,757) Remeasurement of asset retirement obligations – note 26 - - - 5,879 - - 5,879 Balance at the end of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Cost 1,054,413 2,330,748 874,776 202,242 158,642 35,266 4,656,087 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) 6,595 (15,027) (2,568,357) Balance at the end of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Average annual depreciation rates % 4 7 - UoP UoP 2020 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligation Mining projects Other Total Balance at the beginning of the year Cost 1,050,632 2,419,034 549,903 201,892 261,117 45,035 4,527,613 Accumulated depreciation and impairment (511,973) (1,666,480) (14,811) (97,233) (93,009) (21,417) (2,404,923) Net balance at the beginning of the year 538,659 752,554 535,092 104,659 168,108 23,618 2,122,690 Additions - 3,315 336,457 - - 935 340,707 Disposals and write-offs (240) (1,732) (662) - - (42) (2,676) Depreciation (48,938) (110,515) - (6,096) (869) (1,261) (167,679) Impairment of non-current assets (45,188) (26,521) (57,621) (13,804) (15,805) (106) (159,045) Foreign exchange effects (60,934) (78,038) (83,982) (12,821) (3,852) (4,182) (243,809) Transfers – note 22 71,244 88,047 (201,752) - 36,042 1,770 (4,649) Reclassification - (916) - - - (1,201) (2,117) Remeasurement of asset retirement obligations - - - 14,874 - - 14,874 Balance at the end of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Cost 1,022,432 2,360,426 596,675 211,650 292,322 36,816 4,520,321 Accumulated depreciation and impairment (567,829) (1,734,232) (69,143) (124,838) (108,698) (17,285) (2,622,025) Balance at the end of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Average annual depreciation rates % 4 7 - 5 UoP (i) Reclassification of USD 31,851 (ii) Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 19,614 2,023 (iii) Only the amounts related to the operating unit Atacocha are being depreciated under the UoP method. (iv) Amount includes: (i) a transfer from Assets and projects under construction to Inventories (raw materials) of USD 23,009 748 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets | 22 Intangible assets Accounting policy Goodwill Goodwill arising from business combinations is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net assets acquired. Goodwill is not amortized but is tested for impairment annually and whenever circumstances indicate that the carrying amount may not be recovered. Refer to note 31 for the Company’s impairment accounting policy and critical estimates and assumptions and judgments. Rights to use natural resources The significant costs incurred for the acquisition of legal rights to explore mining concessions and develop mineral properties are capitalized and are amortized as production costs when the associated projects start their commercial operation using the UoP method over their useful lives. Useful lives consider the period of extraction for both mineral reserves and mineral resources, which includes a portion of the Company’s inferred resources in the Company’s mining operations. The costs for the acquisition of legal rights attributed to mining projects are not depreciated until the project becomes operational and production activities start. The costs incurred are impaired if the Company determines that the projects and their mineral rights associated have no future economic value. For purposes of impairment assessment, rights to use natural resources are allocated to Cash Generating Units (“CGUs”). Refer to note 31 for the Company’s impairment accounting policy. Critical accounting estimates and judgments - Quantification of mineral reserves and resources for useful life calculation The Company classifies proven and probable reserves, and measured, indicated and inferred resources based on the definitions of the Canadian Institute of Mining, Metallurgy and Petroleum (or CIM) Definition Standards for Mineral Resources and Mineral Reserves (or the 2014 CIM Definition Standards). The useful life determination applied to the rights to use natural resources reflect the pattern in which the benefits are expected to be derived by the Company and is based on the estimated life of mine. Any changes to the life of mine, based on new information regarding estimates of mineral reserves and mineral resources and mining plan, may affect prospectively the life of mine and amortization rates. The estimation process of mineral reserves and mineral resources is based on a technical evaluation, which includes geological, geophysics, engineering, environmental, legal and economic estimates and may have relevant impact on the economic viability of the mineral reserves and mineral resources. These estimates are reviewed periodically, and any changes are reflected in the expected life of mine. Management is confident based on testing, continuity of the ore bodies and conversion experience that a part of the inferred resources will be converted into measured and indicated resources, and if they are economically recoverable, and such inferred resources may also be classified as proven and probable mineral reserves. Where the Company can demonstrate the expected economic recovery with a high level of confidence, inferred resources are included in the amortization calculation. However, the future conversion of inferred resources is inherently uncertain and involves estimates and assumptions and judgments that could have a material impact on the Company’s results of operations. Schedule of reconciliation of changes in intangible assets (a) Changes in the year 2021 Goodwill Rights to use natural resources Other Total Balance at the beginning of the year Cost 673,776 1,665,149 53,463 2,392,388 Accumulated amortization and impairment (267,342) (1,016,279) (32,362) (1,315,983) Net balance at the beginning of the year 406,434 648,870 21,101 1,076,405 Reclassification (i) - 31,851 - 31,851 Net balance at the beginning of the year - adjusted 406,434 680,721 21,101 1,108,256 Additions (ii) - - 21,821 21,821 Disposals - - (9) (9) Amortization - (67,829) (3,550) (71,379) Foreign exchange effects (206) (622) (1,838) (2,666) Transfers – note 21 - - 748 748 Balance at the end of the year 406,228 612,270 38,273 1,056,771 Cost 673,570 1,791,643 72,414 2,537,627 Accumulated amortization and impairment (267,342) (1,179,373) (34,141) (1,480,856) Balance at the end of the year 406,228 612,270 38,273 1,056,771 Average annual depreciation rates % - UoP - 2020 Goodwill Rights to use natural resources Other Total Balance at the beginning of the year Cost 674,645 1,668,956 59,408 2,403,009 Accumulated amortization and impairment - (825,163) (39,320) (864,483) Net balance at the beginning of the year 674,645 843,793 20,088 1,538,526 Disposals - - (55) (55) Amortization - (60,936) (2,842) (63,778) Impairment of non-current assets (267,342) (131,110) - (398,452) Foreign exchange effects (869) (2,877) (739) (4,485) Transfers – note 21 - - 4,649 4,649 Balance at the beginning of the year 406,434 648,870 21,101 1,076,405 Cost 673,776 1,665,149 53,463 2,392,388 Accumulated amortization and impairment (267,342) (1,016,279) (32,362) (1,315,983) Balance at the end of the year 406,434 648,870 21,101 1,076,405 Average annual depreciation rates % - UoP - (i) The Company identified USD 31,851 of legal mining rights that were being classified as Mining projects within Property, Plant and Equipment, instead of as Rights to use natural resources within Intangible assets. Given the nature of this reclassification, only between Property, Plant and Equipment and Intangible assets, the Company made an out-of-period adjustment, to account for the correct classification of those legal mining rights as of December 31, 2021. (ii) The main addition is due to GSF recovered costs. In past years, Brazilian energy power plants were charged with increased costs related to the Generation Scaling Factor (GSF), which showed a generation deficit in relation to the total energy expected for the National Energy System calculated by the regulator. However, as the generation deficit was not due to hydrological risks, the generators should not have been charged with these increased costs since non-hydrological risks are not managed by them. The affected energy power plants include those of NEXA: Picada, Armador Aguiar I, Armador Aguiar II, Igarapava and Enercan. Law No. 14.052 published on September 09, 2020 established new conditions for the renegotiation of hydrological risks, providing compensation to the energy power plants that were affected by the increased costs related to GSF, including the plants owned by NEXA, by extending their concession periods. In 2021, the Brazilian Electric Energy Chamber (“CCEE”) finalized the necessary calculations for the extension of the concession period for the energy power plants that were affected by the increased costs related to GSF and after evaluating the amounts involved, NEXA agreed to accept the renegotiation agreement with the Brazilian Electricity Regulator Agency (“ANEEL”) and to waive any future judicial claim related to the increased GSF costs. This had an impact of USD 19,407 (Picada – 5 years of extended concession period: USD 4,592; Armador Aguiar I – 6 years and 2 months of extended concession period: USD 3,293; Igarapava – 2 years and 7 months of extended concession period: USD 2,565; and, Enercan – 3 years and 6 months of extended concession period: USD 8,957). These amounts have been recognized as an Intangible asset against recovered energy costs (note 7) in the income statement within Cost of sales, and will be amortized using the straight-line method until the end of the extended concession period without any direct cash benefit in 2021. As of December 31, 2021, the adhesion of Armador Aguiar II energy power plant was still pending and will be recognized once all the external and internal approvals are obtained during the following months. |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use Assets And Lease Liabilities | |
Right-of-use assets and lease liabilities | 23 Right-of-use assets and lease liabilities Accounting policy Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease terms are negotiated on an individual asset basis and contractual provisions contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. The Company accounts for non-lease components such as service costs separately, whenever applicable. The Company’s lease terms may include options to extend or terminate the lease and when it is reasonably certain that we will exercise that option, the financial effect is included in the contract’s measurement. Measurement Liabilities arising from a lease contract are initially measured on a present value basis, using the incremental borrowing rate approach. The incremental borrowing rate is determined by the Company based on equivalent financial costs that would be charged by a counterparty for a transaction with the same currency and a similar amount, term and risk of the lease contract. The finance cost charged to the income statement produces a constant periodic rate of interest over the lease term. On December 31, 2021, interest rates were between 5.68% to 11.39% for Brazil; and, 2.65% to 5.93% for Peru. Lease contracts are recognized as a liability with a corresponding right-of-use asset at the date at which the leased asset is available for use by the Company. The right-of-use asset also includes any lease payments made and it is amortized over the shorter of the asset’s useful life and the lease term on a straight-line basis. Amortization expenses are classified either in Cost of sales or Administrative expenses based on the designation of the related assets. Summary of rights-of-use-assets - Changes in the year (a) Right-of-use assets - Changes in the year 2021 2020 Buildings Machinery, equipment, and facilities IT equipment Vehicles Total Total Balance at the beginning of the period Cost 6,461 10,639 5,846 24,616 47,562 45,772 Accumulated amortization (3,129) (5,699) (5,562) (14,303) (28,693) (16,225) Net balance at the beginning of the period 3,332 4,940 284 10,313 18,869 29,547 New contracts - 2,723 - 2,451 5,174 5,785 Amortization (1,063) (2,668) (284) (6,288) (10,303) (12,468) Remeasurement (290) - - - (290) - Foreign exchange effects (92) (192) - (477) (761) (3,995) Balance at the end of the period 1,887 4,803 - 5,999 12,689 18,869 Cost 5,731 17,560 5,427 21,285 50,003 47,562 Accumulated amortization (3,844) (12,757) (5,427) (15,286) (37,314) (28,693) Balance at the end of the period 1,887 4,803 - 5,999 12,689 18,869 Average annual amortization rates % 31 34 33 34 Summary of lease liabilities - changes in the year (b) Lease liabilities - Changes in the year 2021 2020 Balance at the beginning of the year 25,689 34,384 New contracts 5,174 5,785 Payments of lease liabilities (9,827) (9,100) Interest paid on lease liabilities (1,415) (1,385) Remeasurement (302) - Accrued interest – note 10 1,272 1,757 Foreign exchange effects (952) (5,752) Balance at the end of the year 19,639 25,689 Current liabilities 16,246 15,999 Non-current liabilities 3,393 9,690 |
Loans and financings
Loans and financings | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
Loans and financings | 24 Loans and financings Accounting policy Loans and financings are recognized initially at fair value, net of transaction costs incurred, and are subsequently measured at amortized cost, unless they are designated as fair value option, if necessary to eliminate the accounting mismatch that would arise if amortized cost were used. Any difference between the proceeds (net of transaction costs) and the total amount payable is recognized in the income statement as interest expense over the period of the loans using the effective interest rate method, except for the loans measured at fair value. Loans and financings are classified as current liabilities unless the Company has the unconditional right to defer repayment of the liability for at least 12 months after the reporting period. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. (a) Composition Schedule of analysis of the loans and financings 2021 2020 Type Average interest rate Current Non-current Total Total Eurobonds – USD Fixed + 5.73 20,081 1,318,253 1,338,334 1,338,972 BNDES TJLP + 2.82 % 3.10 5.46 18,721 197,080 215,801 179,828 Export credit notes LIBOR + 1.54 134.20 115.55 1,466 133,611 135,077 234,221 Term loans LIBOR + 1.27 8.49 - - - 213,735 Debentures 107.5 4,916 - 4,916 10,388 Other 1,529 3,658 5,187 47,170 46,713 1,652,602 1,699,315 2,024,314 Current portion of long-term loans and financings (principal) 19,276 Interest on loans and financings 27,437 (b) Loans and financing transactions during the year ended on December 31, 2021 Prepayment of debts On January 22, 2021, the Company prepaid the outstanding principal of an Export Credit Note in Brazil in the amount of BRL 250,000 12,905 51,105 On June 23, 2021, the Company prepaid the outstanding principal of an Export Credit Note in Brazil in the amount of BRL 245,000 2,974 50,077 On June 28, 2021, the Company prepaid the outstanding principal of a Credit Facility in the amount of USD 42,969 294 On July 09, 2021, NEXA PERU prepaid the outstanding principal of a term loan it had with a global financial institution in the amount of BRL 477,000 90,512 12,592 2,389 12,398 On July 28, 2021, the Company prepaid the outstanding principal of a Loan Facility in the amount of USD 80,000 211 BNDES disbursements In relation to the loan agreement subscribed in July 2020 between NEXA, through its subsidiary Dardanelos, and the Brazilian Economic and Social Bank (“BNDES”), to finance the ongoing construction of the Aripuanã project, during the second quarter of 2021, the Company drew down the following amounts: a. On May 28, 2021, BRL 160,000 30,608 b. On June 18, 2021, BRL 101,300 20,136 Of the total facility of BRL 750,000 736,300 261,300 475,000 50,744 87,664 (c) Changes in the year Schedule of movements in loans and financings 2021 2020 Balance at the beginning of the year 2,024,314 1,508,557 New loans and financings 59,771 1,296,496 Debt issue costs (178) (9,921) Payments of loans and financings (251,044) (542,983) Prepayment of fair value debt – note 24 (b) (90,512) - Bonds repurchase - (214,530) Foreign exchange effects (21,066) (45,295) Changes in fair value of financing liabilities related to changes in the Company´s own credit risk (i) 5,066 787 Fair value of loans and financings (ii) (10,784) 8,058 Write off of fair value of loans and financings (iii) (8,596) - Interest accrual 113,456 107,532 Premium paid on bonds repurchase – note 10 - (14,481) Interest paid on loans and financings (121,112) (69,906) Balance at the end of the year 1,699,315 2,024,314 (i) On June 30, 2021, NEXA had two debt contracts measured at fair value through profit or loss, of which one was prepaid in July 2021. In 2021, the Company’s credit risk decreased, in comparison to 2020, mainly due to the normalization of its operations, with a consequent increase in the fair value of these debts in USD 5,066 5,188 122 (ii) During the year, the Company recognized a gain in the income statement of USD 10,784 12,228 1,444 (iii) As mentioned above, on July 9, the Company prepaid its term loan debt, together with the respective SWAP contract. The carrying amount of the debt at the date of prepayment was USD 102,042 92,902 9,140 8,596 544 (d) Maturity profile Schedule of maturity profile of the loans and financings 2021 2022 2023 2024 2025 2026 As from Total Eurobonds – USD 20,081 126,370 - - - 1,191,883 1,338,334 BNDES 18,721 21,381 22,336 21,429 19,216 112,718 215,801 Export credit notes 1,466 - - 133,611 - - 135,077 Debentures 4,916 - - - - - 4,916 Other 1,529 461 35 451 451 2,260 5,187 46,713 148,212 22,371 155,491 19,667 1,306,861 1,699,315 (e) Analysis by currency Schedule of analysis of the loans and financings, by currency 2021 2020 Current Non-current Total Total USD 20,281 1,406,681 1,426,962 1,569,942 BRL 25,073 245,498 270,571 451,634 Other 1,359 423 1,782 2,738 46,713 1,652,602 1,699,315 2,024,314 (f) Analysis by index Schedule of analysis of the loans and financings, by index 2021 2020 Current Non-current Total Total Fixed rate 21,530 1,318,717 1,340,247 1,456,090 LIBOR 248 88,429 88,677 230,574 TLP 8,559 161,765 170,324 132,280 BNDES SELIC 6,613 23,067 29,680 30,683 CDI 6,134 45,182 51,316 156,683 TJLP 3,629 15,442 19,071 17,962 Other - - - 42 46,713 1,652,602 1,699,315 2,024,314 (g) Guarantees and covenants The Company has loans and financings that are subject to certain financial covenants at the consolidated level which are measured annually and semiannually, as required by the debt contracts. These financial covenants include the: (i) leverage ratio; (ii) capitalization ratio; and, (iii) debt service coverage ratio. When applicable, these compliance obligations are standardized for all debt agreements. As of December 31, 2021, the Company was in compliance with all its financial covenants. There were no changes to the contractual guarantees provided by the Company during the year and as of December 31, 2021. |
Trade Payables
Trade Payables | 12 Months Ended |
Dec. 31, 2021 | |
Trade Payables | 25 Trade Payables Accounting policy Trade payables represent liabilities for goods and services that were provided to the Company before the end of the financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. These amounts are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. (a) Composition Schedule of trade payables 2021 2020 Trade payables 407,007 360,235 Related parties - note 20 4,811 9,887 Trade payables 411,818 370,122 |
Asset retirement and environmen
Asset retirement and environmental obligations | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement And Environmental Obligations | |
Asset retirement and environmental obligations | 26 Asset retirement and environmental obligations Accounting policy Provision for asset retirement obligations include costs to restoration and closure of the mining assets, and is recognized due to the development or mineral production, based on the net present value of estimated closure costs. Management uses its judgment and previous experience to determine the potential scope of rehabilitation work required and the related costs associated with that work, which are recognized as a Property plant and equipment for asset retirement obligations relating to operating mining assets or as Other income and expenses, net for non-operating structures. Environmental obligations include costs related to rehabilitation of areas damaged by the Company in its extractive actions (for example - soil contamination, water contamination, among others) or penalties. Therefore, it becomes an event that creates obligations when these environmental damages are detected by the Company, when a new law requires that the existing damage be rectified or when the Company publicly accepts any responsibility for the rectification, creating a constructive obligation. The costs to remedy an eventual unexpected contamination, which give rise to a probable loss and can be reliably estimated, must be recognized in Other income and expenses, net in income statement. In addition, investments in infrastructure, machinery and equipment regarding operational improvements to avoid future environmental damage, are not provisioned, because it is expected that these assets will bring future economic benefits to the operating units, thus it is capitalized as Property, plant and equipment. The cash flows are discounted to present value using a credit risk-adjusted rate that reflects current market assessments of the time value of the money and the specifics risks for the asset to be restored. The interest rate charges relating to the liability are recognized as an accretion expense in the Net financial results. Difference in the settlement amount of the liability is recognized in the income statement. Critical accounting estimates and judgments The initial recognition and the subsequent revisions of the asset retirement obligations and environmental obligations consider critical future closure and repairing costs and several assumptions such as interest rates, inflation, useful lives of the assets and the estimated moment that the expenditure will be executed. These estimates are reviewed annually by the Company or when there is a relevant change in these assumptions. Cost estimates can vary in response to many factors of each site that include timing, expected life of mine, changes to the relevant legal or government requirements and commitments with stakeholders, review of remediation and relinquishment options, emergence of new restoration techniques, among others. External experts support the cost estimation process where appropriate. These factors either isolated or consolidated could significantly affect the future financial results and balance sheet position. (a) Changes in the year Summary of changes in asset retirement and environmental obligations 2021 2020 Asset retirement obligations Environmental obligations Total Total Balance at the beginning of the year 227,189 48,857 276,046 293,828 Payments (19,932) (6,323) (26,255) (10,426) Foreign exchange effects (4,848) (3,003) (7,851) (37,145) Interest accrual 7,051 2,616 9,667 14,015 Remeasurement and additions ( i 12,250 293 12,543 15,774 Balance at the end of the year 221,710 42,440 264,150 276,046 Current liabilities 20,826 11,127 31,953 33,095 Non-current liabilities 200,884 31,313 232,197 242,951 (i) As of December 31, 2021, the credit risk-adjusted rate used for Peru was between 3.54% to 7.28% (December 31, 2020: 1.70% to 4.00%) and for Brazil was between 7.68% to 8.67% (December 31, 2020: 0.07% to 6.75%). Besides, as part of its annual asset retirement and environmental obligations review, the Company increased its expected disbursements on decommissioning obligations in certain operations, in accordance with updates in their asset retirement or environmental obligations studies and update in the discount rates. For operational assets, Property, plant and equipment has been increased in an amount of USD 5,879; and, for non-operational structures and environmental obligations, an expense of USD 6,664 was recognized in Other income and expenses, net, according to the updates mentioned above. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | |
Provisions | 27 Provisions Accounting policy Provisions for legal claims and judicial deposits Provisions for legal claims are recognized when there is a combination of the following conditions: (i) the Company has a present legal or constructive obligation as a result of past events; (ii) it is probable (more likely than not) that an outflow of resources will be required to settle the obligation; And, (iii) the amount can be reliably estimated. The provisions are periodically estimated, and the likelihood of losses is supported by the Company's legal counsel. Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as Financial expenses. When a claim is secured by a judicial deposit, the Company offsets the provision with the judicial deposit amount in the consolidated balance sheet. However, the Company also has judicial deposits for claims for which the likelihood of loss is possible or remote and for which no provision is recognized. In such cases, these amounts are recognized as outstanding judicial deposits in the Company’s assets. Critical accounting estimates – Provisions for legal claims The Company is part of ongoing tax, labor, civil and environmental lawsuits which are pending at different court levels. The provisions for potentially unfavorable outcomes of litigation in progress are established and updated based on management evaluation and require a high level of judgment regarding the matters involved, supported by the positions of external legal advisors. Income tax claims are discussed at the current and deferred income tax section (note 11). (a) Changes in the year Schedule of provisions 2021 2020 Tax Labor Civil Environmental Total Total Balance at the beginning of the year 6,234 15,208 785 8,669 30,896 26,070 Additions 9,943 12,328 1,676 9,358 33,305 24,052 Reversals (8,572) (7,012) (754) (3,794) (20,132) (13,140) Interest accrual (418) 1,131 40 (7) 746 1,389 Payments (2,162) (1,739) (935) (491) (5,327) (1,721) Foreign exchange effects (448) (1,087) (30) (820) (2,385) (5,147) Other (43) (150) (82) (275) (607) Balance at the end of the year 4,534 18,679 700 12,915 36,828 30,896 (b) Breakdown of legal claims provisions The provisions and the corresponding judicial deposits are as follows: Schedule of provisions and judicial deposits 2021 2020 Judicial deposits Provisions Carrying amount Judicial deposits Provisions Carrying amount Tax (1,528) 6,062 4,534 (1,594) 7,828 6,234 Labor (2,752) 21,431 18,679 (2,797) 18,005 15,208 Civil (751) 1,451 700 (722) 1,507 785 Environmental - 12,915 12,915 - 8,669 8,669 Balance at the end of the year (5,031) 41,859 36,828 (5,113) 36,009 30,896 The outstanding judicial deposits of the Company as of December 31, 2021 are USD 5,446 5,566 (c) Contingent liabilities Legal claims that have a possible likelihood that an obligation will arise are disclosed in the Company’s financial statements. The Company does not recognize a liability because it is not probable that an outflow of resources will be required or because the amount of the liability cannot be reliably calculated. These legal claims are summarized below: Schedule of contingent liabilities 2021 2020 Tax (i) 156,779 182,380 Labor (ii) 36,215 33,205 Civil (iii) 14,617 17,502 Environmental (iv) 97,027 85,390 304,639 318,477 As of December 31, 2021, contingent liabilities decreased in comparison to those of December 31, 2020 mainly related to an agreement with the corresponding tax authority, by which NEXA desisted from a litigation related to social security contributions levied upon profit sharing (PLR), receiving a 50% discount over principal, interest and penalties. (i) Comments on contingent tax liabilities The main contingent liabilities relating to tax lawsuits are discussed below. Income tax over transfers of shares in Peru Relates to assessments issued by the SUNAT, where the Company was jointly and severally liable for the payment of income tax by a foreign investor, in a supposed capital gain on transfer of shares. The estimated financial effect of this contingent liability is USD 91,781 Compensation for exploration for mineral resources Relates to assessments issued by the Brazilian National Department of Mineral Production for the alleged failure to pay or underpayment of financial compensation for the exploration of mineral resources (“CFEM”). The estimated financial effect of this contingent liability is USD 10,176 Indirect taxes on sales Relates to assessments issued by the Brazilian Internal Revenues Service concerning certain credits taken by the Company when calculating those indirect taxes on sales. The estimated financial effect of this contingent liability is USD 3,491 Value-added tax on sales Relates to assessments issued by the tax authorities of the State of Minas Gerais concerning the following: · Incidence of value-added tax on sales of certain energy contracts. The estimated financial effect of this contingent liability is USD 11,498 · The tax rate applied to interstate sales for manufactured goods with imported content. The estimated financial effect of this contingent liability is USD 3,131 · The Company was challenged by the tax authorities regarding certain credits to the purchases of property, plant and equipment. The estimated financial effect of this contingent liability is USD 6,075 (ii) Comments on contingent labor liabilities Include several claims filed by former employees, third parties and labor unions and labor public attorney’s office mostly claiming the payment of indemnities related to dismissals, such as overtime, work at night hours, commuting hours, health hazard premiums and hazardous duty premiums, as well as indemnity claims by former employees and third parties based on alleged occupational illnesses, work accidents and payment of social benefits. The individual amount of the claims are not material. (iii) Comments on contingent civil liabilities The main contingent civil liability is related to indemnity lawsuits against the Company alleging property, contractual and general damages/losses. The estimated financial effect of this contingent liability is USD 15,456 (iv) Comments on contingent environmental liabilities The main contingent environmental liabilities in Brazil were filed by fishermen communities against the Company for indemnification, compensation for material and moral damages due to alleged pollution of the São Francisco River close to the Company’s Três Marias operation in Brazil. The estimated financial effect of these contingent liabilities is USD 67,385 6,934 |
Contractual obligations
Contractual obligations | 12 Months Ended |
Dec. 31, 2021 | |
Contract liabilities [abstract] | |
Contractual obligations | 28 Contractual obligations Accounting policy Contractual obligations consist of advance payments received by the Company under a silver streaming agreement, signed with a counterparty (the Streamer) and by which referential silver contents found in the ore concentrates produced by the Company’s Cerro Lindo mining unit are sold to the Streamer. Determining the accounting treatment of silver streaming transactions requires the exercise of high degree of judgment. The Company assesses whether those advances obtained under this agreement should be recognized as contractual obligations (a sale of a non-financial item) or as a financial liability. For that purpose, the Company takes into consideration factors such as which party is exposed to the operational risk, the risk of access to the resources, the price risk, and assesses whether the transaction involves a sale of an own use asset for the counterparty. In those cases, in which the Company concludes that, in essence, the Streamer shares substantially the operational risks, the resource access and price risks, it delivers a non-financial item that qualifies as an “own use” item; any advance payment obtained is recognized as a contractual obligation in the framework of IFRS 15: Revenue from contracts with customers. Otherwise, the Company would recognize a financial liability in the framework of the provisions of IFRS 9: Financial instruments. When a contractual obligation is recognized, the balance is initially recognized at the amount received, and it is subsequently recognized as revenue when the control of the respective assets is transferred, that is, upon the physical delivery of the nonfinancial item (silver certificate). Contractual obligations are recognized within non-current liabilities, except for the portion of silver certificates that are estimated to be delivered over the 12 months following the balance sheet date. The advance payment obtained under the silver streaming transaction entered by the Company in 2016 is recognized as contractual obligation to the extent that the risk assessment conducted by the management indicates the relevant risks are substantially shared with the Streamer and the qualifying conditions of a sale of an “own use” item are met. Determination of the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in return for transferring the promised goods to its counterparty. The transaction price is allocated to each performance obligation based on the relative standalone selling prices. In the silver streaming transaction, the Company has variable considerations related to the production capacity of the mine linked to its life of mine and to the LME. IFRS 15 requires that for contracts containing variable considerations, the transaction price be continually updated and re-allocated to the transferred goods. For this purpose, the contractual obligations require an adjustment to the transaction price per unit each time there is a change in the underlying production profile of a mine or the expected metal prices. The change in the transaction price per unit results in a retroactive adjustment to revenues in the period in which the change is made, reflecting the new production profile expected to be delivered under the streaming agreement or the expected metal prices. A corresponding retroactive adjustment is made to accretion expenses, reflecting the impact of the change in the contractual obligation balance. Critical accounting estimates and judgments The ecognition of revenues and of the contractual obligation related to the silver transaction require the use of critical accounting estimates and assumptions including, but not limited to: (i) allocation of revenues on relative prices; (ii) estimative prices for determining the upfront payment; (iii) discount rates used to measure the present value of future inflows and outflows (iv) estimative of life of mine, reserves and mineral production. (a) Composition In 2016, the Company entered a silver streaming arrangement, which consisted of an upfront payment of USD 250,000 The changes in the contractual obligation are shown below 2021 2020 Balance at the beginning of the year 166,025 180,522 Revenues recognition upon ore delivery (45,309) (28,492) Remeasurement of revenues based on new reserves (i) 19,580 7,813 Accretion for the year 6,936 6,182 Balance at the end of year 147,232 166,025 Current 33,156 27,132 Non-current 114,076 138,893 i) In September 2021, the Company recognized a remeasurement adjustment in its contractual obligations of silver streaming with a corresponding reduction in revenues for an amount of USD 19,312 7,813 1,658 |
Confirming Payables
Confirming Payables | 12 Months Ended |
Dec. 31, 2021 | |
Confirming Payables | |
Confirming Payables | 29 Confirming Payables Accounting policy The Company has contracts with some suppliers in which the commercial payment term is 180 180 Applying the concepts of IFRS 9, this transaction maintains its essence as a trade account payable since the Group has not derecognized the original liabilities to which the agreement applies because neither a legal release was obtained, nor the original liability was substantially modified in the execution of the agreement. The Company understands that the 180-day period can be considered common for the sector, as it is a specific product and the 90 Payments of the principal amounts and interest reimbursements are presented within the operating activities group in the Company's cash flow statement, in accordance with IAS 7. The total amount of interests paid in the reverse factoring program in 2021 was of USD 1,290 1,234 As of December 31, 2021, accounts payable of USD 232,860 145,295 82,770 |
Shareholders_ equity
Shareholders’ equity | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reserves within equity [abstract] | |
Shareholders’ equity | 30 Shareholders’ equity Accounting policy Common shares are classified in shareholders’ equity. Each time a share premium is paid to the Company for an issued share, the respective share premium is allocated to the share premium account. Each time the repayment of a share premium is decided, such repayment shall be done pro-rata to the existing shareholders. The distribution of dividends to the Company’s shareholders is recognized as a liability in the Company’s consolidated financial statements in the period in which the dividends are approved by the Company’s shareholders. Shares repurchased under buyback programs that are not cancelled, are reported as treasury shares and are deducted from shareholders’ equity. These shares are also deducted in the earnings per share calculation. (a) Capital As of December 31, 2021, the outstanding capital of USD 132,439 132,439 132,439 132,439 1.00 231,925 (b) Treasury shares On September 20, 2018, the Company’s Board of Directors approved a share buyback program to repurchase up to USD 30,000 12 9,435 On June 4, 2020, at NEXA’s Extraordinary General Meeting (“EGM”), the Company’s shareholders approved the cancellation of the 881,902 shares held in treasury, previously repurchased as explained above. For this reason, after the cancellation shares occurred on June 4, 2020, VSA holds 64.68 (c) Share premium The share premium, if any, may be distributed to the shareholders in accordance with Luxembourg Commercial Companies Act by a resolution of the Board of Directors. (d) Additional paid in capital Additional paid in capital arises from transactions recognized in equity that do not qualify as capital or share premium in accordance with Luxembourg Commercial Companies Act and, therefore, cannot be distributed to the shareholders of the Company. (e) Accumulated other comprehensive income The changes in the accumulated other comprehensive income are as follows: Cumulative translation adjustment Hedge accounting Changes in fair value of financial instruments Total At January 01, 2019 (109,788) 384 - (109,404) Translation adjustment on foreign subsidiaries (21,115) - - (21,115) Cash flow hedge accounting - 879 - 879 At December 31, 2019 (130,903) 1,263 - (129,640) Translation adjustment on foreign subsidiaries (138,840) - - (138,840) Cash flow hedge accounting - 3 - 3 Changes in fair value of financial liabilities - - (875) (875) At December 31, 2020 (269,743) 1,266 (875) (269,352) Translation adjustment on foreign subsidiaries (64,575) - - (64,575) Cash flow hedge accounting - 327 - 327 Changes in fair value of financial liabilities - - (7,441) (7,441) Changes in fair value of investments in equity instruments - - (2,632) (2,632) At December 31, 2021 (334,318) 1,593 (10,948) (343,673) Attributable to NEXA's shareholders (299,995) Attributable to non-controlling interests (43,678) (f) Earnings per share Basic earnings per share are computed by dividing the net income attributable to the NEXA’s shareholders by the average number of outstanding shares for the year. Diluted earnings per share is computed in a similar way, but with the adjustment in the denominator when assuming the conversion of all shares that may be dilutive. The Company does not have any dilutive shares and consequently the basic and diluted earnings per share are the same. Schedule of earnings per share information 2021 2020 2019 Net income (loss) for the year attributable to NEXA's shareholders 114,332 (559,247) (145,135) Weighted average number of outstanding shares – in thousands 132,439 132,439 132,622 Earnings (losses) per share - USD 0.86 (4.22) (1.09) (g) Dividend distribution On February 11, 2021, the Company’s Board of Directors approved, subject to ratification by the Company’s shareholders at the 2022 annual shareholders’ meeting in accordance with Luxembourg laws, a cash dividend distribution to the Company’s shareholders of record on March 12, 2021 of USD 35,000 Additionally, during the year ended on December 31, 2021, the Company’s subisidiary Pollarix declared USD 23,730 (h) Non-controlling interests Schedule of Summarised financial information of the non-controlling interests Summarized balance sheet NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Current assets 680,609 590,948 23,070 14,537 Current liabilities 288,736 225,424 13,279 7,699 Current net assets 391,872 365,524 9,791 6,838 Non-current assets 1,345,420 1,472,015 53,516 48,831 Non-current liabilities 566,059 745,179 - - Non-current net assets 779,361 726,836 53,516 48,831 Net assets 1,171,233 1,092,360 63,307 55,669 Accumulated non-controlling interests 213,997 201,964 44,011 41,835 Summarized income statement NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Net revenues 828,571 541,099 20,996 8,591 Net income (loss) for the year 94,706 (207,866) 39,136 26,943 Other comprehensive loss (940) (5,575) (2,977) (28,548) Total comprehensive income (loss) for the year 93,766 (213,441) 36,159 (1,605) Comprehensive income (loss) attributable to non-controlling interests 12,991 (99,500) 24,947 (10,586) Dividends paid to non-controlling interests - - 23,730 5,332 Summarized statement of cash flows NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Net cash provided by (used in) operating activities 179,842 31,370 (8,522) (82) Net cash used in investing activities (93,632) (48,883) - - Net cash (used in) provided by financing activities (92,905) (113,415) 8,997 (868) (Decrease) increase in cash and cash equivalents (8,542) (132,544) 475 (950) |
Impairment of non-current asset
Impairment of non-current assets | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of information for cash-generating units [abstract] | |
Impairment of non-current assets | 31 Impairment of non-current assets Accounting policy Impairment of goodwill As part of the impairment testing procedures, the goodwill arising from a business combination is allocated to a CGU or groups of CGUs that are expected to benefit from the related business combination and is tested at the lowest level that goodwill is monitored by management. Goodwill is tested annually for impairment as of September 30, regardless of whether there has been an impairment indicator or, more frequently, if circumstances indicate that the carrying amount may not be recovered. Impairment of non-financial assets The Company assesses at each reporting date, whether there are indicators that the carrying amount of an asset or CGU, including goodwill balance, may not be recovered. If any indicator exists, such as a change in forecasted commodity prices, a significant increase in operational costs, a significant decrease in production volumes, a reduction in life of mine, the cancelation or significant reduction in the scope of a project, market conditions or unusual events that can affect the business, the Company estimates the recoverable amount of the assets or CGUs. The recoverable amount is estimated by reference to the higher of an asset’s or CGU’s fair value less cost of disposal (“FVLCD”) and its value in use (“VIU”). The recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the asset is tested as part of a larger CGU to which it belongs. If the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or CGU is considered impaired and is reduced to its recoverable amount. Non-financial assets other than goodwill that were adjusted due to impairment are subsequently reviewed for possible reversal of the impairment at each reporting date. Generally, the opposite of indicators that gave rise to an impairment loss would be considered indicators that impairment losses might have to be reversed. If the underlying reasons for the original impairment have been removed or the service potential of the asset or CGU has increased, an assessment of impairment reversals is performed by the Company. Reversals of impairment losses that arise simply from the passage of time are not recognized. Impairment of mineral exploration and evaluation costs and project development costs Exploration assets representing mineral rights acquired in business combinations, mineral rights, and other capitalized mineral exploration and evaluation costs in accordance with the accounting policy described in note 8, as well as project development costs capitalized included in Property, plant and equipment are tested for impairment in aggregation with CGU or groups of CGUs that include producing assets or tested individually through FVLCD when there are indicators that capitalized costs might not be recoverable. The allocation of mineral exploration and evaluation costs, and project development costs to CGUs or group of CGUs is based on 1) expected synergies or share of producing assets infrastructure, 2) legal entity level, and 3) country level. When testing a CGU or a group of CGUs that include mineral exploration and evaluation costs and development projects costs, the Company performs the impairment test in two steps. In the first step, producing assets our group of producing assets are tested for impairment on an individual basis. In the second step, mineral exploration and evaluation costs and project development costs are allocated to a CGU or a group of CGUs and tested for impairment on a combined basis. Valuation methods and assumptions for recoverable amount based on FVLCD FVLCD FVLCD is an estimate of the price that the Company would receive to sell an asset, CGU or group of CGUs in an orderly transaction between market participants at the measurement date, less the cost of disposal. FVLCD is not an entity-specific measurement but is focused on market participants’ assumptions for a particular asset. FVLCD is estimated by the Company using discounted cash flows techniques and, although the Company considers observable inputs, a substantial portion of the assumptions used in the calculations are unobservable. These cash flows are classified as level 3 in the fair value hierarchy. No CGUs are currently assessed for impairment by reference to a recoverable amount based on FVLCD classified as level 1 or level 2. VIU VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its current condition and its residual value. VIU is determined by applying assumptions specific to the Company’s continued use and does not consider enhancements or future developments. These assumptions are different from those used in calculating FVLCD and consequently the VIU calculation is likely to give a different result (usually lower) than a FVLCD calculation. Forecast assumptions The cash flow forecasts are based on management’s best estimates of expected future revenues and costs, including the future production cash costs, capital expenditure, and closure, restoration, and environmental costs. The resulting estimates are based on detailed life of mine and long-term production plans. When calculating FVLCD, these forecasts include anticipated expansions (greenfield projects), considering their evaluation, eventual change in their scope or feasibility, and the development stage. The cash flow forecasts may include net cash flows expected to be realized from the extraction, processing and sale of material that does not currently qualify for inclusion in ore reserves. Such non-reserve material is only included when the Company has confidence it will be converted to reserves. This expectation is usually based on preliminary drilling and sampling of areas of mineralization that are contiguous with existing ore reserves, as well as on the historical internal conversion ratio. Typically, the additional evaluation required for conversion to reserves of such material has not yet been done because this would involve incurring evaluation costs earlier than is required for the efficient planning and operation of the producing mine. For purposes of determining FVLCD from a market participant’s perspective, the cash flows incorporate management’s internal price forecasts. The internal price forecasts are developed using a robust model that incorporates market-based supply, demand and cost data. The internal price forecasts used for ore reserve estimation testing and the Company’s strategic planning are generally consistent with those used for the impairment testing. Cost levels incorporated in the cash flow forecasts are based on the current life of mine plan and long-term production plan for the CGU, which are based on detailed research, analysis and iterative modeling to optimize the level of return from investment, output and sequence of extraction. The mine plan takes into account all relevant characteristics of the orebody, including waste-to-ore ratios, ore grades, haul distances, chemical and metallurgical properties of the ore, process recoveries and capacities of processing equipment that can be used. The life of mine plan and long-term production plans are, therefore, the basis for forecasting production output and production costs in each future year. The discount rates applied to the future cash flow forecasts represent the Company’s estimate of the rate that a market participant would apply to have regard to the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The Company’s weighted average cost of capital is generally used for determining the discount rates, with appropriate adjustments for the risk profile of the countries in which the individual CGUs operate. With respect to the estimated future cash flows of capitalized mineral exploration assets and development projects, the Company applies a price to net assets value ratio discount in order to reflect the inherent risk of such projects and that are neither adjusted in the discount rate nor in the future cash flows. The discount is based on the stage of the project and the type of metal. Critical accounting estimates and judgments - Impairment of non-current assets Impairment is assessed at the CGU level. A CGU is the smallest identifiable asset or group of assets that generates independent cash inflows. Judgment is applied to identify the Company’s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. When applying its judgment in grouping CGUs, the Company concluded that its mining operations in Vazante and Morro Agudo should be grouped with its Três Marias smelter operation, as these two mines are vertically integrated operations with the smelter. External and internal factors are quarterly monitored for impairment indicators. Judgment is required to determine, for example, whether the impact of adverse spot commodity price movements is significant and structural in nature. Also, the Company’s assessment of whether internal factors such as an increase in production costs and delays in projects result in impairment indicators require significant judgment. Among others, the long-term zinc price and the discount rate may have a significant impact in the Company’s’ impairment estimations. The process of estimating the recoverable amount involves the use of estimates and assumptions, judgment and projections for future cash flows. These calculations use cash flow projections, based on approved financial and operational budgets for a five-year period. After the five-year period, the cash flows are extended until the end of the useful life of mine or indefinitely for the smelters. The smelters cash flows do not use growth rates in the cash flow projections of the terminal value. Management’s estimates and assumptions of future cash flow used for the Company’s impairment testing of goodwill and non-financial assets are subject to risk and uncertainties, including metal prices and macroeconomic conditions, which are particularly volatile and partially or totally outside the Company’s control. Future changes in these variables may differ from management’s expectations and may materially change the recoverable amounts of the CGUs. Impairment analysis According to NEXA’s policy, the Company performs its annual impairment test for the CGUs that have goodwill allocated (Cerro de Pasco, Cerro Lindo and Cajamarquilla) and every quarter it performs an additional assessment of impairment indicators for all its CGUs. For the year ended on December 31, 2021, the Company performed its annual test and analyzed all impairment indicators and found no need to recognize an additional impairment loss or reversal. For the year ended on December 31, 2020, the Company recognized an impairment loss of USD 557,497 |
Long-term commitments
Long-term commitments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Commitments | |
Long-term commitments | 32 Long-term commitments (a) Capital commitments – Aripuanã project At December 31, 2021, the Company had contracted USD 75,250 156,893 (b) Projects evaluation As part of NEXA’s activities for the execution of certain greenfield projects, the Company has agreed, with the Peruvian Government, to minimum investments levels in the Magistral Project, that if the Company does not meet by September 2024, would require additional disbursements of USD 102,900 |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events after the reporting period | 33 Events after the reporting period (a) Offtake agreement On January 21, 2022, the Company signed an Offtake Agreement, in which it undertakes to sell 100 5-year (b) Cash distribution On February 15, 2022, the Company’s Board of Directors approved, subject to ratification by the Company’s shareholders at the 2023 annual shareholders’ meeting in accordance with Luxembourg laws, a cash distribution to the Company’s shareholders of approximately USD 50,000 |
Information by business segme_2
Information by business segment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of segment results and reconciliation to (loss) income before income tax | Schedule of segment results and reconciliation to (loss) income before income tax 2021 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,165,584 2,028,831 (636,212) 63,907 2,622,110 Cost of sales (719,358) (1,796,111) 636,212 (86,779) (1,966,036) Gross profit 446,226 232,720 - (22,872) 656,074 Selling, general and administrative (70,271) (68,593) - (17,922) (156,786) Mineral exploration and project evaluation (75,549) (9,494) - - (85,043) Other income and expenses, net (34,050) 34,196 - 31,802 31,948 Operating income (loss) 266,356 188,829 - (8,992) 446,193 Depreciation and amortization 174,891 78,861 - 4,959 258,711 Miscellaneous adjustments (i) (664) - - - (664) Adjusted EBITDA 440,583 267,690 - (4,033) 704,240 Miscellaneous adjustments (i) 664 Depreciation and amortization (258,711) Net financial results (136,902) Income before income tax 309,291 (i) Related to minor impairment reversals of equipment costs previously impaired and that were sold in 2021. Due to the low amounts, these are included as Other income and expenses, net. 2020 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 748,462 1,550,323 (375,402) 27,546 1,950,929 Cost of sales (625,408) (1,287,902) 375,402 (26,023) (1,563,931) Gross profit 123,054 262,421 - 1,523 386,998 Selling, general and administrative (70,354) (64,874) - (16,391) (151,619) Mineral exploration and project evaluation (48,555) (5,466) - (3,180) (57,201) Impairment of non-current assets (512,706) (44,791) - - (557,497) Other income and expenses, net (23,648) (5,545) - 10,029 (19,164) Operating (loss) income (532,209) 141,745 - (8,019) (398,483) Depreciation and amortization 159,984 82,650 - 1,291 243,925 Impairment of non-current assets 512,706 44,791 - - 557,497 Adjusted EBITDA 140,481 269,186 - (6,728) 402,939 Impairment of non-current assets (557,497) Depreciation and amortization (243,925) Net financial results (278,175) Loss before income tax (676,658) 2019 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,000,580 1,865,733 (535,776) 2,178 2,332,715 Cost of sales (805,058) (1,655,062) 535,776 (23,484) (1,947,828) Gross profit 195,522 210,671 - (21,306) 384,887 Selling, general and administrative (117,280) (89,540) - (9,691) (216,511) Mineral exploration and project evaluation (109,549) (9,503) - (11) (119,063) Impairment of non-current assets (142,133) - - - (142,133) Other income and expenses, net (13,955) (29,569) - 25,318 (18,206) Operating (loss) income (187,395) 82,059 - (5,690) (111,026) Depreciation and amortization 217,870 97,975 - 2,047 317,892 Impairment of non-current assets 142,133 - - - 142,133 Adjusted EBITDA 172,608 180,034 - (3,643) 348,999 Impairment of non-current assets (142,133) Depreciation and amortization (317,892) Net financial results (104,854) Loss before income tax (215,880) |
Principles of consolidation (Ta
Principles of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of ownership percentages | Schedule of ownership percentages Percentage of shares Company Headquarter Activities 2021 2020 controls Subsidiaries L.D.O.S.P.E. Geração de Energia e Participações Ltda. – “L.D.O.S.P.E." 100 100 Indirectly Brazil Energy L.D.Q.S.P.E. Geração de Energia e Participações Ltda. - "L.D.Q.S.P.E." 100 100 Indirectly Brazil Energy L.D.R.S.P.E. Geração de Energia e Participações Ltda. - "L.D.R.S.P.E." 100 100 Indirectly Brazil Energy Mineração Dardanelos Ltda. - "Dardanelos" 100 100 Indirectly Brazil Mining projects Nexa Recursos Minerais S.A. - "NEXA BR" 100 100 Directly Brazil Mining / Smelting Mineração Santa Maria Ltda. 99.99 99.99 Indirectly Brazil Mining projects Pollarix S.A. - "Pollarix" (i) 33.33 33.33 Indirectly Brazil Holding and others Karmin Holding Ltda. 100 100 Indirectly Brazil Holding and others Mineração Rio Aripuaña Ltda. 100 100 Indirectly Brazil Holding and others Votorantim Metals Canada Inc. 100 100 Indirectly Canada Holding and others Nexa Resources El Porvenir S.A.C. 99.99 99.99 Indirectly Peru Mining Minera Pampa de Cobre S.A.C 99.99 99.99 Indirectly Peru Mining Nexa Resources Cajamarquilla S.A. - "NEXA CJM" 99.99 99.99 Directly Peru Smelting Nexa Resources Perú S.A.A. - "NEXA Peru" 83.55 83.55 Indirectly Peru Mining Nexa Resources Atacocha S.A.A. - "NEXA Atacocha" 66.62 66.62 Indirectly Peru Mining Nexa Resources UK Ltd. - "NEXA UK" 100 100 Indirectly United Kingdom Mining Nexa Resources US. Inc. 100 100 Directly United States Trading Exploraciones Chimborazo Metals & Mining 100 - Directly Ecuador Holding and others Joint-operations Campos Novos Energia S.A. - "Enercan" 20.98 20.98 Brazil Energy Cia. Minera Shalipayco S.A.C 75 75 Peru Mining projects |
Net revenues (Tables)
Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Revenues | |
Schedule of net revenues by billing | Schedule of net revenues by billing (i) Gross billing reconciliation 2021 2020 2019 Gross billing 2,974,850 2,138,786 2,552,275 Billing from products 2,898,210 2,074,203 2,473,534 Billing from freight and insurance services 76,640 64,583 78,741 Taxes on sales (347,311) (184,714) (216,141) Return of products sales (5,429) (3,143) (3,419) Net revenues 2,622,110 1,950,929 2,332,715 |
Schedule of net revenues from products | Schedule of net revenues from products (ii) Net revenues breakdown 2021 2020 2019 Zinc 1,844,632 1,323,287 1,592,050 Lead 223,341 161,964 259,238 Copper 305,793 197,756 174,697 Silver 69,691 58,568 63,867 Other products 102,013 144,771 164,122 Freight and insurance services 76,640 64,583 78,741 Net revenues 2,622,110 1,950,929 2,332,715 Taxes on sales 347,311 184,714 216,141 Return of products sales 5,429 3,143 3,419 Gross billing 2,974,850 2,138,786 2,552,275 |
Schedule of revenues by geographical location | Schedule of revenues by geographical location (i) Net revenues by geographical location 2021 2020 2019 Peru 774,735 485,850 595,601 Brazil 753,280 583,141 625,033 United States 119,564 116,717 159,672 South Korea 118,596 77,429 95,913 Luxembourg 97,462 76,072 145,493 Argentina 93,107 56,165 60,850 Switzerland 78,770 68,912 101,636 Japan 58,296 46,719 71,352 Singapore 56,879 76,724 99,488 Colombia 54,325 34,768 37,149 Chile 54,044 48,969 80,849 Taiwan 53,752 28,764 33,551 Austria 45,057 35,197 39,897 Turkey 34,493 25,005 33,905 Malaysia 25,681 13,948 6,535 South Africa 25,126 - 1,892 Netherlands 17,693 11,740 9,381 Ecuador 15,652 9,095 13,012 Italy 14,834 9,895 9,000 Vietnam 14,555 10,798 3,142 Belgium 13,690 30,174 25,500 Indonesia 11,774 8,609 1,098 Guatemala 11,101 4,738 7,094 Germany 7,297 33,869 20,749 Other 72,347 57,631 54,923 Net revenues 2,622,110 1,950,929 2,332,715 |
Schedule of revenues by currency | Schedule of revenues by currency (ii) Net revenues by currency 2021 2020 2019 USD 1,914,905 1,388,746 1,731,765 Brazilian Real (“BRL”) 707,205 562,183 600,950 Net revenues 2,622,110 1,950,929 2,332,715 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of expense by nature | Schedule of expense by nature 2021 2020 2019 Cost of sales (i) Selling, general and administrative Mineral exploration and project evaluation Total Total Total Raw materials and consumables used (1,188,495) (1,233) - (1,189,728) (856,300) (1,063,094) Third-party services (373,282) (40,839) (52,950) (467,071) (407,695) (574,228) Depreciation and amortization (251,657) (7,019) (35) (258,711) (243,925) (317,892) Employee benefit expenses (140,418) (65,009) (17,688) (223,115) (213,865) (254,251) Others (12,184) (42,686) (14,370) (69,240) (50,966) (73,937) Total (1,966,036) (156,786) (85,043) (2,207,865) (1,772,751) (2,283,402) (i) In 2021, cost of sales was reduced by USD 19,407 due to GSF recovered costs related to the extension of the concession period of NEXA’s Brazilian energy power plants as explained in note 22. |
Mineral exploration and proje_2
Mineral exploration and project evaluation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of mineral exploration and project evaluation costs | Schedule of mineral exploration and project evaluation costs 2021 2020 2019 Mineral exploration (55,594) (38,519) (79,838) Project evaluation (29,449) (18,682) (39,225) Mineral exploration and Project development (85,043) (57,201) (119,063) |
Other income and expenses, net
Other income and expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of other income and expenses, net | Schedule of other income and expenses, net 2021 2020 2019 Remeasurement of asset retirement and environmental obligations – note 26 (6,664) (900) 4,810 Provision of legal claims – note 27 (13,173) (10,912) (4,424) Contribution to communities (7,070) (2,773) (3,893) Derivative financial instruments - note 16 (b) 7,486 948 (833) Loss on sale of property, plant and equipment and intangible assets (4,891) (2,268) (857) Pre-operating expenses related to Aripuanã (8,753) (1,885) (1,312) ICMS tax incentives (i) 71,949 Others (6,936) (1,374) (11,697) Total other income and expenses, net 31,948 (19,164) (18,206) (i) The Brazilian Complementary Law No. 160/2017, which amended Law No. 12.973/2014, states that government grants of ICMS tax incentives are considered investment subsidies and excluded from taxable income for the purpose of calculating the corporate income taxes IRPJ and CSLL. In 2021, the Company, supported by the opinion of its external legal advisors, concluded that the ICMS tax incentives obtained in 2021 and 2020 for a total amount of US$ 71,949 could be excluded from the corporate income taxes basis for the fiscal year ended on December 31, 2021 and recognized ICMS taxes in Taxes on Sales and ICMS tax incentives in Other income and expense, net. The ICMS tax incentives are a permanent difference and the related corporate income tax effect in the amount of USD 24,463 reduced the current tax expense in 2021 as shown in note 11 (a). |
Net financial results (Tables)
Net financial results (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Financial Results | |
Schedule of net financial results | Schedule of net financial results 2021 2020 2019 Financial income Interest income on financial investments and cash equivalents 6,074 7,295 20,909 Interest on tax credits 1,377 854 5,498 Other financial income 4,021 3,019 4,647 Total financial income 11,472 11,168 31,054 Financial expenses Interest on loans and financings (96,565) (97,422) (67,369) Premium paid on bonds repurchase – note 24 (c) - (14,481) - Interest on other liabilities (12,371) (8,051) (10,864) Interest on contractual obligations (6,936) (6,182) (6,526) Interest on lease liabilities – note 23 (b) (1,272) (1,757) (3,416) Other financial expenses (25,131) (31,866) (29,224) Total financial expenses (142,275) (159,759) (117,399) Other financial items, net Fair value of loans and financings – note 24 (c) 19,380 (8,058) (6,640) Derivative financial instruments - note 16 (b) (5,640) (717) 1,024 Foreign exchange losses (i) (19,839) (120,809) (12,893) Other financial items, net (6,099) (129,584) (18,509) Net financial results (136,902) (278,175) (104,854) (i) The amounts for years 2021 and 2020 include losses of USD 10,468 65,689 |
Current and deferred income t_2
Current and deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Current And Deferred Income Tax | |
Schedule of reconciliation of income tax benefit (expense) | Schedule of reconciliation of income tax benefit (expense) 2021 2020 2019 Income (loss) before income tax 309,291 (676,658) (215,880) Statutory income tax rate 24.94% 24.94% 24.94% Income tax (expense) benefit at statutory rate (77,137) 168,759 53,840 Tax effects of translation of non-monetary assets/liabilities to functional currency (32,998) (28,174) (3,575) Unrecognized deferred tax benefit on net operating losses (35,735) (35,849) - Special mining levy and special mining tax (17,279) (5,909) (7,431) Withholding tax on dividends paid by subsidiaries - - (9,764) Difference in tax rate of subsidiaries outside Luxembourg (i) (3,179) 36,390 24,698 Withholding tax over subsidiary capital reduction (ii) (10,526) - - Impairment of goodwill - (78,866) - ICMS tax incentives (iii) 24,463 - Other permanent tax differences (813) (32,199) 596 Income tax (expense) benefit (153,204) 24,152 58,364 Current (122,081) (63,192) (46,382) Deferred (31,123) 87,344 104,746 Income tax (expense) benefit (153,204) 24,152 58,364 (i) The Company’s activities are subject to the income tax regime of each country where it operates. However, NEXA’s Cerro Lindo mining unit had a lower income tax rate in comparison with that of other Peruvian operations because it was taxed under the laws and guarantees of a stability agreement signed by NEXA PERU, which was valid until the end of 2021. The deferred taxes of NEXA’s Cerro Lindo unit, however, are calculated considering the statutory income tax rate of 29.5 (ii) On June 10, 2021, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 210,703 which was paid on July 27, 2021. Given this capital reduction, the Company recognized USD 10,526 (iii) See note 9. |
Schedule of analysis of deferred income tax assets and liabilities | Schedule of analysis of deferred income tax assets and liabilities 2021 2020 Tax credits on net operating losses (i) 116,284 108,767 Uncertain income tax treatments (5,279) (6,712) Tax credits on temporary differences Foreign exchange losses 33,123 Environmental liabilities 13,923 16,611 Asset retirement obligations 17,698 20,507 Tax, labor and civil provisions 7,797 7,162 Other provisions 8,613 9,825 Provision for obsolete and slow-moving inventory 7,224 6,813 Provision for employee benefits 7,138 5,299 Revaluation of derivative financial instruments 506 3,056 Other 7,039 6,513 Tax debits on temporary differences Foreign exchange gains (16,365) - Capitalized interest (9,261) (10,274) Revaluation of loans and financings (1,945) (88) Depreciation, amortization and asset impairment (189,799) (190,970) Other (3,951) (6,444) (40,378) 3,188 Deferred income tax assets 168,205 221,580 Deferred income tax liabilities (208,583) (218,392) (40,378) 3,188 (i) As a result of adopting Complementary Law No. 160/2017, as described in note 9, there was also an increase in the amount of USD 11,996 |
Schedule of effects of deferred tax and taxes on profit or loss and other comprehensive income | Schedule of effects of deferred tax and taxes on profit or loss and other comprehensive income 2021 2020 2019 Balance at the beginning of the year 3,188 (48,212) (136,810) Effect on income (loss) for the year (31,123) 87,344 104,746 Effect on other comprehensive income (loss) - Fair value adjustment (2,536) 13 453 Prior years uncertain income tax treatment payment - 4,706 - Impact of adoption IFRIC 23 - (10,070) Foreign exchange (loss) gain (9,907) (40,663) (6,531) Balance at the end of the year (40,378) 3,188 (48,212) |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of sensitivity analysis risk factors affecting price of financial instrument | Schedule of sensitivity analysis risk factors affecting price of financial instrument Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2021 Cash and cash equivalents and financial investments Loans and financings Derivative financial instruments Changes from 2021 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Foreign exchange rates BRL 5.5805 65,403 272,323 (66) 1.46 (1) 19 38 (19) (38) (3,029) 51,730 103,460 (51,730) (103,460) EUR 1.1327 3,604 - - 1.53 55 (901) (1,802) 901 1,802 - - - - - PEN 4.0069 23,846 1,783 - -0.33 (72) (5,515) (11,031) 5,515 11,031 - - - - - CAD 1.2718 1,040 - - 0.94 - - - - - 10 (260) (520) 260 520 NAD 15.9600 1,427 - - -6.08 - - - - - (87) (357) (713) 357 713 Interest rates BRL - CDI - SELIC 9.15 64,871 81,473 (66) 191 (40) 1,466 3,083 (1,339) (2,570) - - - - - USD - LIBOR 0.22 - 88,677 (6,465) 2 (24) 53 107 (53) (107) 4 (5) (10) 5 10 IPCA - TLP 10.06 - 171,346 - -456 7,813 4,309 8,619 (4,309) (8,619) - - - - - TJLP 5.32 - 19,325 - 44 (85) 257 514 (257) (514) - - - - - Commodities Zinc 3,630 - - (6,465) -18.73 33,485 23,740 47,481 (23,740) (47,481) (6,613) (4,689) (9,378) 4,689 9,378 |
Summary of financial assets and liabilities in foreign currency | Summary of financial assets and liabilities in foreign currency USD amounts of foreign currency balances 2021 2020 Assets Cash, cash equivalents and financial investments 95,320 257,706 Derivative financial instruments 314 22,376 Trade accounts receivables 34,858 42,612 Total assets 130,492 322,694 Liabilities Loans and financings 272,353 454,372 Derivative financial instruments 380 21,484 Trade payables 200,983 165,019 Lease liabilities 7,921 20,792 Use of public assets 24,384 20,787 Total liabilities 506,021 682,454 Net exposure (375,529) (359,760) |
Schedule of credit quality of financial assets | Schedule of credit quality of financial assets 2021 2020 Local rating Global rating Total Local rating Global rating Total (ii) Cash and cash equivalents AAA 117,439 - 117,439 131,489 - 131,489 AA+ - - - 1,959 - 1,959 AA 19 - 19 30,178 - 30,178 AA- - 21,252 21,252 8,754 21,632 30,386 A+ 35,923 318,120 354,043 164,987 249,197 414,184 A 25,354 115,653 141,007 69,608 257,999 327,607 A- - 104,528 104,528 - 116,992 116,992 BBB+ - - - - - - BBB - - - - - - BBB- - - - - 30,706 30,706 BB- - - - - - - No rating (i) 2,660 2,869 5,529 1,289 1,373 2,662 181,395 562,422 743,817 408,264 677,899 1,086,163 Financial investments AAA 16,849 - 16,849 32,411 - 32,411 AA+ - - - 2,257 - 2,257 AA 2,353 - 2,353 46 - 46 AA- - - - 330 - 330 19,202 - 19,202 35,044 - 35,044 Derivative financial instruments AAA 314 - 314 2,068 - 2,068 A+ - 8,491 8,491 - 1,977 1,977 A- - 7,589 7,589 - 27,935 27,935 314 16,080 16,394 2,068 29,912 31,980 (i) Refers to subsidiaries of international financial institutions that do not have a global rating available in the international rating agencies. According to the Company's policy, for these financial institutions, the rating of the financial institution controlling entities is assumed, which must be at least BBB-. (ii) As mentioned in note 5 (c), in 2021, the Company modified its Financial Risk Management Policy, allowing the use of local ratings available from local agencies in Peru, for assessing the credit risks of financial institutions in Peru. Therefore, the Company is presenting the 2020 comparative balances according to the updated policy. |
Summary of estimated future cash flow | Summary of estimated future cash flow 2021 Less than 1 year Between 1 and 3 years Between 3 Over 5 years Total Loans and financings 114,240 443,780 247,226 1,439,295 2,244,541 Lease liabilities 17,340 3,744 - - 21,084 Derivative financial instruments 22,684 146 71 24 22,925 Trade payables 411,818 - - - 411,818 Confirming payables 232,860 - - - 232,860 Salaries and payroll charges 76,031 - - - 76,031 Dividends payable 11,441 - - - 11,441 Related parties 321 71 - - 392 Asset retirement and environmental obligations 31,953 64,752 85,021 243,076 424,803 Use of public assets 1,368 3,244 3,657 21,840 30,109 920,056 515,737 335,975 1,704,235 3,476,004 2020 Less than 1 year Between 1 and 3 years Between 3 and 5 years Over 5 years Total Loans and financings 214,614 484,579 459,215 1,490,253 2,648,661 Lease liabilities 15,999 9,690 - - 25,689 Derivative financial instruments 5,390 51 21,374 59 26,874 Trade payables 370,122 - - - 370,122 Confirming payables 145,295 - - - 145,295 Salaries and payroll charges 56,107 - - - 56,107 Dividends payable 4,557 - - - 4,557 Related parties - 561 - - 561 Asset retirement and environmental obligations 33,714 53,501 70,444 220,241 377,900 Use of public assets 1,270 2,943 5,131 20,200 29,544 847,068 551,325 556,164 1,730,753 3,685,310 |
Summary of leverage ratio | Summary of leverage ratio Note 2021 2020 2019 Loans and financings 24 1,699,315 2,024,314 1,508,557 Derivative financial instruments 16 (a) 6,531 (5,106) 2,294 Lease liabilities 23 (b) 19,639 25,689 34,384 Cash and cash equivalents 15 (743,817) (1,086,163) (698,618) Financial investments - (19,202) (35,044) (58,775) Net debt (i) 962,466 923,690 787,842 Net income (loss) for the period 156,087 (652,506) (157,516) Plus (less): Depreciation and amortization 21, 22 and 23 258,711 243,925 317,892 Net financial results 10 136,902 278,175 104,854 Income tax expense (benefit) 11 (a) 153,204 (24,152) (58,364) EBITDA 704,904 (154,558) 206,866 Impairment of non-current assets - 557,497 142,133 Miscellaneous adjustments (664) - - Adjusted EBITDA (ii) 704,240 402,939 348,999 Leverage ratio (Net debt/Adjusted EBITDA) 1.37 2.29 2.26 (i) Net debt is defined as (a) loans and financings, plus lease liabilities, plus or minus (b) the fair value of derivative financial instruments less (c) cash and cash equivalents, less (d) financial investments. (ii) Adjusted EBITDA for capital management calculation uses the same assumptions described in note 2 for Adjusted EBITDA by segment. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of financial instruments breakdown by category | Schedule of financial instruments breakdown by category 2021 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Cash and cash equivalents 15 743,817 - - 743,817 Financial investments 19,202 - - 19,202 Derivative financial instruments 16 (a) - 16,394 - 16,394 Trade accounts receivables 17 84,969 146,205 - 231,174 Investments in equity instruments 13 (b) - - 3,723 3,723 Related parties (i) 20 2 - - 2 847,990 162,599 3,723 1,014,312 2021 Liabilities per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Loans and financings 24 (a) 1,610,638 88,677 1,699,315 Lease liabilities 23 (b) 19,639 - - 19,639 Derivative financial instruments 16 (a) - 22,925 - 22,925 Trade payables 25 411,818 - - 411,818 Confirming payables 29 232,860 - - 232,860 Use of public assets (ii) 24,384 - - 24,384 Related parties (ii) 20 392 - - 392 2,299,731 111,602 - 2,411,333 2020 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Cash and cash equivalents 15 1,086,163 - - 1,086,163 Financial investments 35,044 - - 35,044 Derivative financial instruments 16 (a) - 31,980 - 31,980 Trade accounts receivables 17 64,262 164,770 - 229,032 Related parties (i) 20 2 - - 2 1,185,471 196,750 - 1,382,221 2020 Liabilities per balance sheet Note Amortized cost Fair value through profit or loss Fair value through Other comprehensive income Total Loans and financings 24 (a) 1,822,756 201,558 - 2,024,314 Lease liabilities 23 (b) 25,689 - - 25,689 Derivative financial instruments 16 (a) - 26,874 - 26,874 Trade payables 25 370,122 - - 370,122 Confirming payables 29 145,295 - - 145,295 Use of public assets (ii) 19,215 - - 19,215 Related parties (ii) 20 561 - - 561 2,383,638 228,432 - 2,612,070 (i) Classified as Other assets in the consolidated balance sheet. (ii) Classified as Other liabilities in the consolidated balance sheet. |
Fair value estimates (Tables)
Fair value estimates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Classification of financial assets and liabilities in the fair value hierarchy | Classification of financial assets and liabilities in the fair value hierarchy 2021 Note Level 1 Level 2 Total Assets Derivative financial instruments 16 (a) - 16,394 16,394 Trade accounts receivables - 146,205 146,205 Investments in equity instruments (i) 3,723 - 3,723 3,723 162,599 166,322 Liabilities Derivative financial instruments 16 (a) - 22,925 22,925 Loans and financings designated at fair value (ii) - 88,677 88,677 - 111,602 111,602 2020 Note Level 1 Level 2 Total Assets Derivative financial instruments 16 (a) - 31,980 31,980 Trade accounts receivables - 164,770 164,770 - 196,750 196,750 Liabilities Derivative financial instruments 16 (a) - 26,874 26,874 Loans and financings designated at fair value (ii) - 201,558 201,558 - 228,432 228,432 (i) The Level 1 fair value amount of the investments in equity instruments is determined using the share´s quotation as of the last day of the reporting period. (ii) As explained above, certain loans and financings are measured at fair value. The carrying amount of other financial instruments measured at amortized cost do not differ significantly from their fair value. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Schedule of cash and cash equivalents 2021 2020 Cash and banks 276,761 113,017 Term deposits 467,056 973,146 Total cash and cash equivalents 743,817 1,086,163 |
Schedule of changes in operating assets and liabilities | Schedule of changes in operating assets and liabilities 2021 2020 2019 Decrease (increase) in assets Trade accounts receivables (9,375) (68,896) (8,634) Inventory (102,068) 8,883 (35,425) Derivative financial instruments (14,936) (7,809) (4,649) Other assets (47,312) 30,557 (45,872) Increase (decrease) in liabilities Trade payables 44,880 21,589 18,823 Confirming payables 87,565 62,525 12,278 Other liabilities 2,759 58,481 12,856 Changes in operating assets and liabilities (38,487) 105,330 (50,623) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of fair value by strategy | Schedule of fair value by strategy 2021 2020 Strategy Per Unit Notional Fair value Notional Fair value Mismatches of quotational periods Zinc forward ton 215,809 (9,898) 204,394 2,398 (9,898) 2,398 Sales of zinc at a fixed price Zinc forward ton 8,787 3,433 15,695 1,815 3,433 1,815 Interest rate risk IPCA vs. CDI BRL 226,880 (66) 226,880 1,310 (66) 1,310 Foreign exchange risk BRL vs. USD (i) BRL - - 477,000 (417) - (417) (6,531) 5,106 Current assets 16,292 16,329 Non-current assets 102 15,651 Current liabilities (22,684) (5,390) Non-current liabilities (241) (21,484) (i) Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021 |
Schedule of changes in fair value | Schedule of changes in fair value 2021 Strategy Inventory Cost of sales Net revenues Other income and expenses, net Net financial results Other comprehensive Realized (loss) gain Mismatches of quotational 1,146 (37,963) 9,709 1,820 - 454 (12,538) Sales of zinc at a fixed price - - - 5,666 - 34 4,082 Interest rate risk – IPCA vs. CDI - - - - 1,211 - 2,587 Foreign exchange ri–k - BRL vs USD (i) - - - - (6,851) - (7,268) 2021 1,146 (37,963) 9,709 7,486 (5,640) 488 (13,137) (i) Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021. |
Trade accounts receivables (Tab
Trade accounts receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of composition of trade accounts receivables | Schedule of composition of trade accounts receivables (a) Composition 2021 2020 Trade accounts receivables 233,623 229,800 Related parties - note 20 1,016 2,411 Impairment of trade accounts receivables (3,465) (3,179) 231,174 229,032 |
Schedule of changes in impairment of trade accounts receivables | Schedule of changes in impairment of trade accounts receivables (b) Changes in impairment of trade accounts receivables 2021 2020 Balance at the beginning of the year (3,179) (2,337) Additions (1,586) (2,643) Reversals 1,206 1,288 Foreign exchange gains 94 513 Balance at the end of the year (3,465) (3,179) |
Schedule of analysis of trade accounts receivables by currency | Schedule of analysis of trade accounts receivables by currency (c) Analysis by currency 2021 2020 USD 196,316 186,420 BRL 34,464 41,601 Other 394 1,011 231,174 229,032 |
Schedule of aging of trade accounts receivables | Schedule of aging of trade accounts receivables (d) Aging of trade accounts receivables 2021 2020 Current 222,083 222,670 Up to 3 months past due 9,201 6,728 From 3 to 6 months past due 51 102 Over 6 months past due 3,304 2,711 234,639 232,211 Impairment (3,465) (3,179) 231,174 229,032 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of inventories | Schedule of inventories (a) Composition 2021 2020 Finished products 157,285 94,033 Semi-finished products 60,315 56,335 Raw materials (i) 90,087 66,278 Auxiliary materials and consumables 94,564 68,950 Inventory provisions (29,749) (29,074) Total 372,502 256,522 |
Schedule of changes in the provision for obsolescence | Schedule of changes in the provision for obsolescence (b) Changes in the provision of the year 2021 2020 Balance at the beginning of the year (29,074) (28,398) Additions (15,094) (11,439) Reversals 13,986 9,647 Exchange variation gains 433 1,116 Balance at the end of the year (29,749) (29,074) |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of the composition of other assets | Schedule of the composition of other assets 2021 2020 Other recoverable taxes 128,377 127,815 Advances to third parties 8,545 15,006 Prepaid expenses 10,361 10,522 Judicial deposits 5,446 5,566 Other assets 26,974 25,363 Total other assets 179,703 184,272 Current assets 81,119 91,141 Non-current assets 98,584 93,131 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of related parties transactions | Schedule of related parties transactions Trade accounts receivables Related parties’ assets Trade payables Dividends payable Related parties’ liabilities Assets and liabilities 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Parent Votorantim S.A. (i) - - 2 2 1,102 809 - - - - Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - - 1,890 1,160 - - - - Companhia Brasileira de Alumínio 158 1,479 - - 264 175 - - - - Votorantim Cimentos S.A. 551 595 64 121 - - - - Votener - Votorantim Comercializadora de Energia Ltda. 302 332 - - 945 6,330 - - - - Votorantim International CSC S.A.C - - - - 306 421 - - 152 - Other 5 5 - - 240 871 11,441 4,557 240 561 1,016 2,411 2 2 4,811 9,887 11,441 4,557 392 561 Current 1,016 2,411 - - 4,811 9,887 11,441 4,557 - - Non-current - - 2 2 - - - - 392 561 1,016 2,411 2 2 4,811 9,887 11,441 4,557 392 561 Sales Purchases Profit and loss 2021 2020 2019 2021 2020 2019 Parent Votorantim S.A. (i) - - 26 3,735 4,378 6,176 Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - 41,498 26,280 5,046 Companhia Brasileira de Alumínio 8,988 7,828 2,157 3,736 1,156 1,964 Votorantim Cimentos S.A. - - 196 661 524 2,186 Votener - Votorantim Comercializadora de Energia Ltda. 5,993 9,740 3,288 16,207 7,721 9,596 Votorantim International CSC S.A.C - - - 4,278 6,638 5,584 Other 113 11 510 1,120 582 1,581 15,094 17,579 6,177 71,235 47,279 32,133 (i) The Company entered into an agreement with VSA on September 4, 2008, for services provided by its Center of Excellence (“CoE”) related to administrative activities, human resources, back office, accounting, taxes, technical assistance, and training, among others. Under a cost sharing agreement, the Company reimburses VSA for the expenses related to these activities in respect of the Company. (ii) As part of the execution of the Aripuanã project, in June 2019 the Company entered into a mining development services agreement with Andrade Gutierrez Engenharia S.A., in which one of the Company director’s close family member may have significant influence at its holding level. Additionally, in June 2020, NEXA entered into one additional agreement with Consórcio Construtor Nova Aripuanã (a consortium of the Andrade Gutierrez group of companies) in connection with construction services for the Aripuanã project. |
Schedule of key management compensation | Schedule of key management compensation 2021 2020 Short-term benefits 6,602 6,765 Other long-term benefits 664 1,791 Total key management compensation 7,266 8,556 Short-term benefits include fixed compensation, payroll charges and short-term benefits under the Company’s variable compensation program. Other long-term benefits relate to the variable compensation program. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of detailed information about property, plant and equipment | Schedule of detailed information about property, plant and equipment 2021 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligations Mining projects (iii) Other Total Balance at the beginning of the year Cost 1,022,432 2,360,426 596,675 211,650 292,322 36,816 4,520,321 Accumulated depreciation and impairment (567,829) (1,734,232) (69,143) (124,838) (108,698) (17,285) (2,622,025) Net balance at the beginning of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Reclassification (i) - - - - (31,851) - (31,851) Net balance at the beginning of the year - adjusted 454,603 626,194 527,532 86,812 151,773 19,531 1,866,445 Additions (ii) 12 671 507,907 - - 1,576 510,166 Disposals and write-offs (567) (7,663) (454) - - (1,751) (10,435) Depreciation (56,493) (110,895) - (6,436) (2,062) (1,143) (177,029) Foreign exchange effects (15,963) (23,188) (40,278) (2,452) (1,027) (631) (83,539) Transfers (iv) 57,393 82,252 (182,612) - 16,553 2,657 (23,757) Remeasurement of asset retirement obligations – note 26 - - - 5,879 - - 5,879 Balance at the end of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Cost 1,054,413 2,330,748 874,776 202,242 158,642 35,266 4,656,087 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) 6,595 (15,027) (2,568,357) Balance at the end of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Average annual depreciation rates % 4 7 - UoP UoP 2020 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligation Mining projects Other Total Balance at the beginning of the year Cost 1,050,632 2,419,034 549,903 201,892 261,117 45,035 4,527,613 Accumulated depreciation and impairment (511,973) (1,666,480) (14,811) (97,233) (93,009) (21,417) (2,404,923) Net balance at the beginning of the year 538,659 752,554 535,092 104,659 168,108 23,618 2,122,690 Additions - 3,315 336,457 - - 935 340,707 Disposals and write-offs (240) (1,732) (662) - - (42) (2,676) Depreciation (48,938) (110,515) - (6,096) (869) (1,261) (167,679) Impairment of non-current assets (45,188) (26,521) (57,621) (13,804) (15,805) (106) (159,045) Foreign exchange effects (60,934) (78,038) (83,982) (12,821) (3,852) (4,182) (243,809) Transfers – note 22 71,244 88,047 (201,752) - 36,042 1,770 (4,649) Reclassification - (916) - - - (1,201) (2,117) Remeasurement of asset retirement obligations - - - 14,874 - - 14,874 Balance at the end of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Cost 1,022,432 2,360,426 596,675 211,650 292,322 36,816 4,520,321 Accumulated depreciation and impairment (567,829) (1,734,232) (69,143) (124,838) (108,698) (17,285) (2,622,025) Balance at the end of the year 454,603 626,194 527,532 86,812 183,624 19,531 1,898,296 Average annual depreciation rates % 4 7 - 5 UoP (i) Reclassification of USD 31,851 (ii) Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 19,614 2,023 (iii) Only the amounts related to the operating unit Atacocha are being depreciated under the UoP method. (iv) Amount includes: (i) a transfer from Assets and projects under construction to Inventories (raw materials) of USD 23,009 748 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of reconciliation of changes in intangible assets | Schedule of reconciliation of changes in intangible assets (a) Changes in the year 2021 Goodwill Rights to use natural resources Other Total Balance at the beginning of the year Cost 673,776 1,665,149 53,463 2,392,388 Accumulated amortization and impairment (267,342) (1,016,279) (32,362) (1,315,983) Net balance at the beginning of the year 406,434 648,870 21,101 1,076,405 Reclassification (i) - 31,851 - 31,851 Net balance at the beginning of the year - adjusted 406,434 680,721 21,101 1,108,256 Additions (ii) - - 21,821 21,821 Disposals - - (9) (9) Amortization - (67,829) (3,550) (71,379) Foreign exchange effects (206) (622) (1,838) (2,666) Transfers – note 21 - - 748 748 Balance at the end of the year 406,228 612,270 38,273 1,056,771 Cost 673,570 1,791,643 72,414 2,537,627 Accumulated amortization and impairment (267,342) (1,179,373) (34,141) (1,480,856) Balance at the end of the year 406,228 612,270 38,273 1,056,771 Average annual depreciation rates % - UoP - 2020 Goodwill Rights to use natural resources Other Total Balance at the beginning of the year Cost 674,645 1,668,956 59,408 2,403,009 Accumulated amortization and impairment - (825,163) (39,320) (864,483) Net balance at the beginning of the year 674,645 843,793 20,088 1,538,526 Disposals - - (55) (55) Amortization - (60,936) (2,842) (63,778) Impairment of non-current assets (267,342) (131,110) - (398,452) Foreign exchange effects (869) (2,877) (739) (4,485) Transfers – note 21 - - 4,649 4,649 Balance at the beginning of the year 406,434 648,870 21,101 1,076,405 Cost 673,776 1,665,149 53,463 2,392,388 Accumulated amortization and impairment (267,342) (1,016,279) (32,362) (1,315,983) Balance at the end of the year 406,434 648,870 21,101 1,076,405 Average annual depreciation rates % - UoP - |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use Assets And Lease Liabilities | |
Summary of rights-of-use-assets - Changes in the year | Summary of rights-of-use-assets - Changes in the year (a) Right-of-use assets - Changes in the year 2021 2020 Buildings Machinery, equipment, and facilities IT equipment Vehicles Total Total Balance at the beginning of the period Cost 6,461 10,639 5,846 24,616 47,562 45,772 Accumulated amortization (3,129) (5,699) (5,562) (14,303) (28,693) (16,225) Net balance at the beginning of the period 3,332 4,940 284 10,313 18,869 29,547 New contracts - 2,723 - 2,451 5,174 5,785 Amortization (1,063) (2,668) (284) (6,288) (10,303) (12,468) Remeasurement (290) - - - (290) - Foreign exchange effects (92) (192) - (477) (761) (3,995) Balance at the end of the period 1,887 4,803 - 5,999 12,689 18,869 Cost 5,731 17,560 5,427 21,285 50,003 47,562 Accumulated amortization (3,844) (12,757) (5,427) (15,286) (37,314) (28,693) Balance at the end of the period 1,887 4,803 - 5,999 12,689 18,869 Average annual amortization rates % 31 34 33 34 |
Summary of lease liabilities - changes in the year | Summary of lease liabilities - changes in the year (b) Lease liabilities - Changes in the year 2021 2020 Balance at the beginning of the year 25,689 34,384 New contracts 5,174 5,785 Payments of lease liabilities (9,827) (9,100) Interest paid on lease liabilities (1,415) (1,385) Remeasurement (302) - Accrued interest – note 10 1,272 1,757 Foreign exchange effects (952) (5,752) Balance at the end of the year 19,639 25,689 Current liabilities 16,246 15,999 Non-current liabilities 3,393 9,690 |
Loans and financings (Tables)
Loans and financings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of analysis of the loans and financings | Schedule of analysis of the loans and financings 2021 2020 Type Average interest rate Current Non-current Total Total Eurobonds – USD Fixed + 5.73 20,081 1,318,253 1,338,334 1,338,972 BNDES TJLP + 2.82 % 3.10 5.46 18,721 197,080 215,801 179,828 Export credit notes LIBOR + 1.54 134.20 115.55 1,466 133,611 135,077 234,221 Term loans LIBOR + 1.27 8.49 - - - 213,735 Debentures 107.5 4,916 - 4,916 10,388 Other 1,529 3,658 5,187 47,170 46,713 1,652,602 1,699,315 2,024,314 Current portion of long-term loans and financings (principal) 19,276 Interest on loans and financings 27,437 |
Schedule of movements in loans and financings | Schedule of movements in loans and financings 2021 2020 Balance at the beginning of the year 2,024,314 1,508,557 New loans and financings 59,771 1,296,496 Debt issue costs (178) (9,921) Payments of loans and financings (251,044) (542,983) Prepayment of fair value debt – note 24 (b) (90,512) - Bonds repurchase - (214,530) Foreign exchange effects (21,066) (45,295) Changes in fair value of financing liabilities related to changes in the Company´s own credit risk (i) 5,066 787 Fair value of loans and financings (ii) (10,784) 8,058 Write off of fair value of loans and financings (iii) (8,596) - Interest accrual 113,456 107,532 Premium paid on bonds repurchase – note 10 - (14,481) Interest paid on loans and financings (121,112) (69,906) Balance at the end of the year 1,699,315 2,024,314 (i) On June 30, 2021, NEXA had two debt contracts measured at fair value through profit or loss, of which one was prepaid in July 2021. In 2021, the Company’s credit risk decreased, in comparison to 2020, mainly due to the normalization of its operations, with a consequent increase in the fair value of these debts in USD 5,066 5,188 122 (ii) During the year, the Company recognized a gain in the income statement of USD 10,784 12,228 1,444 (iii) As mentioned above, on July 9, the Company prepaid its term loan debt, together with the respective SWAP contract. The carrying amount of the debt at the date of prepayment was USD 102,042 92,902 9,140 8,596 544 |
Schedule of maturity profile of the loans and financings | Schedule of maturity profile of the loans and financings 2021 2022 2023 2024 2025 2026 As from Total Eurobonds – USD 20,081 126,370 - - - 1,191,883 1,338,334 BNDES 18,721 21,381 22,336 21,429 19,216 112,718 215,801 Export credit notes 1,466 - - 133,611 - - 135,077 Debentures 4,916 - - - - - 4,916 Other 1,529 461 35 451 451 2,260 5,187 46,713 148,212 22,371 155,491 19,667 1,306,861 1,699,315 |
Schedule of analysis of the loans and financings, by currency | Schedule of analysis of the loans and financings, by currency 2021 2020 Current Non-current Total Total USD 20,281 1,406,681 1,426,962 1,569,942 BRL 25,073 245,498 270,571 451,634 Other 1,359 423 1,782 2,738 46,713 1,652,602 1,699,315 2,024,314 |
Schedule of analysis of the loans and financings, by index | Schedule of analysis of the loans and financings, by index 2021 2020 Current Non-current Total Total Fixed rate 21,530 1,318,717 1,340,247 1,456,090 LIBOR 248 88,429 88,677 230,574 TLP 8,559 161,765 170,324 132,280 BNDES SELIC 6,613 23,067 29,680 30,683 CDI 6,134 45,182 51,316 156,683 TJLP 3,629 15,442 19,071 17,962 Other - - - 42 46,713 1,652,602 1,699,315 2,024,314 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade payables | Schedule of trade payables 2021 2020 Trade payables 407,007 360,235 Related parties - note 20 4,811 9,887 Trade payables 411,818 370,122 |
Asset retirement and environm_2
Asset retirement and environmental obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement And Environmental Obligations | |
Summary of changes in asset retirement and environmental obligations | Summary of changes in asset retirement and environmental obligations 2021 2020 Asset retirement obligations Environmental obligations Total Total Balance at the beginning of the year 227,189 48,857 276,046 293,828 Payments (19,932) (6,323) (26,255) (10,426) Foreign exchange effects (4,848) (3,003) (7,851) (37,145) Interest accrual 7,051 2,616 9,667 14,015 Remeasurement and additions ( i 12,250 293 12,543 15,774 Balance at the end of the year 221,710 42,440 264,150 276,046 Current liabilities 20,826 11,127 31,953 33,095 Non-current liabilities 200,884 31,313 232,197 242,951 (i) As of December 31, 2021, the credit risk-adjusted rate used for Peru was between 3.54% to 7.28% (December 31, 2020: 1.70% to 4.00%) and for Brazil was between 7.68% to 8.67% (December 31, 2020: 0.07% to 6.75%). Besides, as part of its annual asset retirement and environmental obligations review, the Company increased its expected disbursements on decommissioning obligations in certain operations, in accordance with updates in their asset retirement or environmental obligations studies and update in the discount rates. For operational assets, Property, plant and equipment has been increased in an amount of USD 5,879; and, for non-operational structures and environmental obligations, an expense of USD 6,664 was recognized in Other income and expenses, net, according to the updates mentioned above. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | |
Schedule of provisions | Schedule of provisions 2021 2020 Tax Labor Civil Environmental Total Total Balance at the beginning of the year 6,234 15,208 785 8,669 30,896 26,070 Additions 9,943 12,328 1,676 9,358 33,305 24,052 Reversals (8,572) (7,012) (754) (3,794) (20,132) (13,140) Interest accrual (418) 1,131 40 (7) 746 1,389 Payments (2,162) (1,739) (935) (491) (5,327) (1,721) Foreign exchange effects (448) (1,087) (30) (820) (2,385) (5,147) Other (43) (150) (82) (275) (607) Balance at the end of the year 4,534 18,679 700 12,915 36,828 30,896 |
Schedule of provisions and judicial deposits | The provisions and the corresponding judicial deposits are as follows: Schedule of provisions and judicial deposits 2021 2020 Judicial deposits Provisions Carrying amount Judicial deposits Provisions Carrying amount Tax (1,528) 6,062 4,534 (1,594) 7,828 6,234 Labor (2,752) 21,431 18,679 (2,797) 18,005 15,208 Civil (751) 1,451 700 (722) 1,507 785 Environmental - 12,915 12,915 - 8,669 8,669 Balance at the end of the year (5,031) 41,859 36,828 (5,113) 36,009 30,896 |
Schedule of contingent liabilities | Schedule of contingent liabilities 2021 2020 Tax (i) 156,779 182,380 Labor (ii) 36,215 33,205 Civil (iii) 14,617 17,502 Environmental (iv) 97,027 85,390 304,639 318,477 |
Contractual obligations (Tables
Contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Contract liabilities [abstract] | |
The changes in the contractual obligation are shown below | The changes in the contractual obligation are shown below 2021 2020 Balance at the beginning of the year 166,025 180,522 Revenues recognition upon ore delivery (45,309) (28,492) Remeasurement of revenues based on new reserves (i) 19,580 7,813 Accretion for the year 6,936 6,182 Balance at the end of year 147,232 166,025 Current 33,156 27,132 Non-current 114,076 138,893 i) In September 2021, the Company recognized a remeasurement adjustment in its contractual obligations of silver streaming with a corresponding reduction in revenues for an amount of USD 19,312 7,813 1,658 |
Shareholders_ equity (Tables)
Shareholders’ equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reserves within equity [abstract] | |
The changes in the accumulated other comprehensive income are as follows: | The changes in the accumulated other comprehensive income are as follows: Cumulative translation adjustment Hedge accounting Changes in fair value of financial instruments Total At January 01, 2019 (109,788) 384 - (109,404) Translation adjustment on foreign subsidiaries (21,115) - - (21,115) Cash flow hedge accounting - 879 - 879 At December 31, 2019 (130,903) 1,263 - (129,640) Translation adjustment on foreign subsidiaries (138,840) - - (138,840) Cash flow hedge accounting - 3 - 3 Changes in fair value of financial liabilities - - (875) (875) At December 31, 2020 (269,743) 1,266 (875) (269,352) Translation adjustment on foreign subsidiaries (64,575) - - (64,575) Cash flow hedge accounting - 327 - 327 Changes in fair value of financial liabilities - - (7,441) (7,441) Changes in fair value of investments in equity instruments - - (2,632) (2,632) At December 31, 2021 (334,318) 1,593 (10,948) (343,673) Attributable to NEXA's shareholders (299,995) Attributable to non-controlling interests (43,678) |
Schedule of earnings per share information | Schedule of earnings per share information 2021 2020 2019 Net income (loss) for the year attributable to NEXA's shareholders 114,332 (559,247) (145,135) Weighted average number of outstanding shares – in thousands 132,439 132,439 132,622 Earnings (losses) per share - USD 0.86 (4.22) (1.09) |
Schedule of Summarised financial information of the non-controlling interests | Schedule of Summarised financial information of the non-controlling interests Summarized balance sheet NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Current assets 680,609 590,948 23,070 14,537 Current liabilities 288,736 225,424 13,279 7,699 Current net assets 391,872 365,524 9,791 6,838 Non-current assets 1,345,420 1,472,015 53,516 48,831 Non-current liabilities 566,059 745,179 - - Non-current net assets 779,361 726,836 53,516 48,831 Net assets 1,171,233 1,092,360 63,307 55,669 Accumulated non-controlling interests 213,997 201,964 44,011 41,835 Summarized income statement NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Net revenues 828,571 541,099 20,996 8,591 Net income (loss) for the year 94,706 (207,866) 39,136 26,943 Other comprehensive loss (940) (5,575) (2,977) (28,548) Total comprehensive income (loss) for the year 93,766 (213,441) 36,159 (1,605) Comprehensive income (loss) attributable to non-controlling interests 12,991 (99,500) 24,947 (10,586) Dividends paid to non-controlling interests - - 23,730 5,332 Summarized statement of cash flows NEXA PERU Pollarix S.A. 2021 2020 2021 2020 Net cash provided by (used in) operating activities 179,842 31,370 (8,522) (82) Net cash used in investing activities (93,632) (48,883) - - Net cash (used in) provided by financing activities (92,905) (113,415) 8,997 (868) (Decrease) increase in cash and cash equivalents (8,542) (132,544) 475 (950) |
General information (Details Na
General information (Details Narrative) - USD ($) | Dec. 31, 2021 | Jun. 04, 2020 | Dec. 31, 2021 |
GeneralInformationLineItems [Line Items] | |||
Impairment loss of non-current assets | $ 557,497 | ||
Parent [member] | |||
GeneralInformationLineItems [Line Items] | |||
Percentage of equity interest held by the controlling shareholder (as a percent) | 64.68% | 64.68% |
Schedule of segment results and
Schedule of segment results and reconciliation to (loss) income before income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
Cost of sales | (1,966,036) | (1,563,931) | (1,947,828) |
Gross profit | 656,074 | 386,998 | 384,887 |
Selling, general and administrative | 156,786 | 151,619 | 216,511 |
Selling, general and administrative | (156,786) | (151,619) | (216,511) |
Mineral exploration and project evaluation | 85,043 | 57,201 | 119,063 |
Mineral exploration and project evaluation | (85,043) | (57,201) | (119,063) |
Other income and expenses, net | 31,948 | (19,164) | (18,206) |
Operating (loss) income | 446,193 | (398,483) | (111,026) |
Depreciation and amortization | 258,711 | 243,925 | 317,892 |
Gains on sales of investments and other miscellaneous adjustments (i) | (664) | ||
Adjusted EBITDA | 704,240 | 402,939 | 348,999 |
Adjusted EBITDA | (258,711) | ||
Net financial results | (136,902) | (278,175) | (104,854) |
(Loss) income before income tax | 309,291 | (676,658) | (215,880) |
Impairment of non-current assets | 557,497 | 142,133 | |
Impairment of non-current assets | (557,497) | (142,133) | |
Impairment loss reversal of impairment loss recognised in profit or loss1 | 557,497 | 142,133 | |
Depreciation and amortisation expense1 | (243,925) | ||
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Depreciation and amortization | (317,892) | ||
Gains on sales of investments and other miscellaneous adjustments (i) | 664 | ||
Impairment of non-current assets | (142,133) | ||
Impairment of non-current assets | 142,133 | ||
Operating segments [member] | Mining segment [member] | |||
Disclosure of operating segments [line items] | |||
Net revenues | 1,165,584 | 748,462 | 1,000,580 |
Cost of sales | (719,358) | (625,408) | (805,058) |
Gross profit | 123,054 | 195,522 | |
Selling, general and administrative | (70,271) | (70,354) | (117,280) |
Selling, general and administrative | 70,271 | 70,354 | 117,280 |
Mineral exploration and project evaluation | (75,549) | (48,555) | (109,549) |
Mineral exploration and project evaluation | 75,549 | 48,555 | 109,549 |
Other income and expenses, net | (34,050) | (23,648) | (13,955) |
Operating (loss) income | 266,356 | (532,209) | (187,395) |
Depreciation and amortization | 174,891 | 159,984 | 217,870 |
Gains on sales of investments and other miscellaneous adjustments (i) | (664) | ||
Adjusted EBITDA | 440,583 | 140,481 | 172,608 |
Impairment of non-current assets | (512,706) | (142,133) | |
Impairment of non-current assets | 512,706 | 142,133 | |
Impairment loss reversal of impairment loss recognised in profit or loss1 | 512,706 | 142,133 | |
Operating segments [member] | Smelting segment [member] | |||
Disclosure of operating segments [line items] | |||
Net revenues | 2,028,831 | 1,550,323 | 1,865,733 |
Cost of sales | (1,796,111) | (1,287,902) | (1,655,062) |
Gross profit | 232,720 | 262,421 | 210,671 |
Selling, general and administrative | (68,593) | (64,874) | (89,540) |
Selling, general and administrative | 68,593 | 64,874 | 89,540 |
Mineral exploration and project evaluation | (9,494) | (5,466) | (9,503) |
Mineral exploration and project evaluation | 9,494 | 5,466 | 9,503 |
Other income and expenses, net | 34,196 | (5,545) | (29,569) |
Operating (loss) income | 188,829 | 141,745 | 82,059 |
Depreciation and amortization | 78,861 | 82,650 | 97,975 |
Adjusted EBITDA | 267,690 | 269,186 | 180,034 |
Impairment of non-current assets | (44,791) | ||
Impairment of non-current assets | 44,791 | ||
Impairment loss reversal of impairment loss recognised in profit or loss1 | 44,791 | ||
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Net revenues | (636,212) | (375,402) | (535,776) |
Cost of sales | 636,212 | 375,402 | 535,776 |
Material reconciling items [member] | |||
Disclosure of operating segments [line items] | |||
Net revenues | 63,907 | 27,546 | 2,178 |
Cost of sales | (86,779) | (26,023) | (23,484) |
Gross profit | (22,872) | 1,523 | (21,306) |
Selling, general and administrative | (17,922) | (16,391) | (9,691) |
Selling, general and administrative | 17,922 | 16,391 | 9,691 |
Mineral exploration and project evaluation | (3,180) | (11) | |
Mineral exploration and project evaluation | 3,180 | 11 | |
Other income and expenses, net | 31,802 | 10,029 | 25,318 |
Operating (loss) income | (8,992) | (8,019) | (5,690) |
Depreciation and amortization | 4,959 | 1,291 | 2,047 |
Adjusted EBITDA | $ (4,033) | $ (6,728) | $ (3,643) |
Schedule of ownership percentag
Schedule of ownership percentages (Details) | Dec. 31, 2021 | Dec. 31, 2020 | |
Campos novos energia s.a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Headquarter | Brazil | ||
Principal activity | Energy | ||
Percentage of shares in joint operation | 20.98% | 20.98% | |
Cia. minera shalipayco s.a.c [member] | |||
Disclosure of subsidiaries [line items] | |||
Headquarter | Peru | ||
Principal activity | Mining projects | ||
Percentage of shares in joint operation | 75.00% | 75.00% | |
L.d.o.s.p.e. empreendimentos e participaes ltda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Energy | ||
L.d.q.s.p.e. empreendimentos e participaes ltda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Energy | ||
L.d.r.s.p.e. empreendimentos e participaes ltda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Energy | ||
Minerao dardanelos ltda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Mining projects | ||
Nexa recursos minerais s.a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Directly | ||
Headquarter | Brazil | ||
Principal activity | Mining / Smelting | ||
Minerao santa maria ltda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Mining projects | ||
Pollarix s. a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | [1] | 33.33% | 33.33% |
Type of control | [1] | Indirectly | |
Headquarter | [1] | Brazil | |
Principal activity | [1] | Holding and others | |
Karmin holding ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Holding and others | ||
Mineracao rio aripuana ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Brazil | ||
Principal activity | Holding and others | ||
Votorantim metals canada inc. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | Canada | ||
Principal activity | Holding and others | ||
Nexa resources el porvenir s.a.c. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Headquarter | Peru | ||
Principal activity | Mining | ||
Minera pampa de cobre s.a.c [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Headquarter | Peru | ||
Principal activity | Mining | ||
Nexa resources cajamarquilla s.a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Directly | ||
Headquarter | Peru | ||
Principal activity | Smelting | ||
Nexa resources peru s.a.a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 83.55% | 83.55% | |
Type of control | Indirectly | ||
Headquarter | Peru | ||
Principal activity | Mining | ||
Nexa resources atacocha s.a.a. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 66.62% | 66.62% | |
Type of control | Indirectly | ||
Headquarter | Peru | ||
Principal activity | Mining | ||
Nexa resources uk ltd.nexa uk [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Indirectly | ||
Headquarter | United Kingdom | ||
Principal activity | Mining | ||
Nexa resources us. inc. [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | 100.00% | |
Type of control | Directly | ||
Headquarter | United States | ||
Principal activity | Trading | ||
Nexa resources uk ltd.nexa ecuador [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of shares in subsidiary | 100.00% | (0.00%) | |
Type of control | Directly | ||
Headquarter | Ecuador | ||
Principal activity | Holding and others | ||
[1] | NEXA BR owns all the common shares of Pollarix, which represents 33.33% of its total share capital. The remaining shares are preferred shares with limited voting rights, which are indirectly owned by NEXA’s controlling shareholder, VSA. |
Schedule of net revenues by bil
Schedule of net revenues by billing (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Revenues | |||
Gross billing | $ 2,974,850 | $ 2,138,786 | $ 2,552,275 |
Billing from products | 2,898,210 | 2,074,203 | 2,473,534 |
Billing from freight and insurance services | 76,640 | 64,583 | 78,741 |
Taxes on sales | (347,311) | (184,714) | (216,141) |
Return of products sales | (5,429) | (3,143) | (3,419) |
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
Schedule of net revenues from p
Schedule of net revenues from products (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NetRevenuesLineItems [Line Items] | |||
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
Taxes on sales | 347,311 | 184,714 | 216,141 |
Return of products sales | 5,429 | 3,143 | 3,419 |
Revenues from products | 2,974,850 | 2,138,786 | 2,552,275 |
Zinc [member] | |||
NetRevenuesLineItems [Line Items] | |||
Freight and insurance services | 1,844,632 | 1,323,287 | 1,592,050 |
Lead [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 223,341 | 161,964 | 259,238 |
Copper [member] | |||
NetRevenuesLineItems [Line Items] | |||
Freight and insurance services | 305,793 | 197,756 | 174,697 |
Silver [member] | |||
NetRevenuesLineItems [Line Items] | |||
Freight and insurance services | 69,691 | 58,568 | 63,867 |
Other [member] | |||
NetRevenuesLineItems [Line Items] | |||
Freight and insurance services | 102,013 | 144,771 | 164,122 |
Freight and insurance services [member] | |||
NetRevenuesLineItems [Line Items] | |||
Freight and insurance services | $ 76,640 | $ 64,583 | $ 78,741 |
Schedule of revenues by geograp
Schedule of revenues by geographical location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NetRevenuesLineItems [Line Items] | |||
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
PE [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 774,735 | 485,850 | 595,601 |
Brazil [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 753,280 | 583,141 | 625,033 |
United state [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 119,564 | 116,717 | 159,672 |
South korea [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 118,596 | 77,429 | 95,913 |
Luxembourg [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 97,462 | 76,072 | 145,493 |
Argentina [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 93,107 | 56,165 | 60,850 |
Switzerland [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 78,770 | 68,912 | 101,636 |
Japan [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 58,296 | 46,719 | 71,352 |
Singapore [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 56,879 | 76,724 | 99,488 |
Colombia [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 54,325 | 34,768 | 37,149 |
Chile [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 54,044 | 48,969 | 80,849 |
Taiwan [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 53,752 | 28,764 | 33,551 |
Austria [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 45,057 | 35,197 | 39,897 |
Turkey [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 34,493 | 25,005 | 33,905 |
Malaysia [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 25,681 | 13,948 | 6,535 |
South africa [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 25,126 | 1,892 | |
Netherlands [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 17,693 | 11,740 | 9,381 |
Ecuado [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 15,652 | 9,095 | 13,012 |
Italy [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 14,834 | 9,895 | 9,000 |
Vietnam [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 14,555 | 10,798 | 3,142 |
Belgium [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 13,690 | 30,174 | 25,500 |
Indonesia [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 11,774 | 8,609 | 1,098 |
Guatemala [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 11,101 | 4,738 | 7,094 |
Germany [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 7,297 | 33,869 | 20,749 |
Other [member] | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | $ 72,347 | $ 57,631 | $ 54,923 |
Schedule of revenues by currenc
Schedule of revenues by currency (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NetRevenuesLineItems [Line Items] | |||
Net revenues | $ 2,622,110 | $ 1,950,929 | $ 2,332,715 |
United States of America, Dollars | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | 1,914,905 | 1,388,746 | 1,731,765 |
Brazil, Brazil Real | |||
NetRevenuesLineItems [Line Items] | |||
Net revenues | $ 707,205 | $ 562,183 | $ 600,950 |
Net revenues (Details Narrative
Net revenues (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NetRevenuesLineItems [Line Items] | |||
Billing from products | $ 2,898,210,000 | $ 2,074,203,000 | $ 2,473,534,000 |
Percentage of billing from products | 10.00% | ||
Other tax expenses | $ 71,949 | ||
One customer [member] | |||
NetRevenuesLineItems [Line Items] | |||
Billing from products | $ 390,469 |
Schedule of expense by nature (
Schedule of expense by nature (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ExpenseByNatureLineItems [Line Items] | |||
Raw materials and consumables used | $ 1,189,728 | $ 856,300 | $ 1,063,094 |
Third-party services | 467,071 | 407,695 | 574,228 |
Depreciation and amortization | (258,711) | (243,925) | (317,892) |
Employee benefit expenses | 223,115 | 213,865 | 254,251 |
Others | (69,240) | (50,966) | (73,937) |
Total | (2,207,865) | $ (1,772,751) | $ (2,283,402) |
Expenses By Nature Cost Of Sales [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Raw materials and consumables used | 1,188,495 | ||
Third-party services | 373,282 | ||
Depreciation and amortization | (251,657) | ||
Employee benefit expenses | 140,418 | ||
Others | (12,184) | ||
Total | (1,966,036) | ||
Expenses By Nature Selling General And Administrative [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Raw materials and consumables used | 1,233 | ||
Third-party services | 40,839 | ||
Depreciation and amortization | (7,019) | ||
Employee benefit expenses | 65,009 | ||
Others | (42,686) | ||
Total | (156,786) | ||
Expenses By Nature Mineral Exploration And Project Development [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Raw materials and consumables used | |||
Third-party services | 52,950 | ||
Depreciation and amortization | (35) | ||
Employee benefit expenses | 17,688 | ||
Others | (14,370) | ||
Total | $ (85,043) |
Schedule of mineral exploration
Schedule of mineral exploration and project evaluation costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Mineral Exploration And Project Evaluation Costs | |||
Mineral exploration | $ (55,594) | $ (38,519) | $ (79,838) |
Project evaluation | (29,449) | (18,682) | (39,225) |
Mineral exploration and Project development | $ (85,043) | $ (57,201) | $ (119,063) |
Schedule of other income and ex
Schedule of other income and expenses, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule Of Other Income And Expenses Net | ||||
Remeasurement of asset retirement and environmental obligations – note 26 | $ (6,664) | $ (900) | $ 4,810 | |
Provision of legal claims – note 27 | (13,173) | (10,912) | (4,424) | |
Contribution to communities | (7,070) | (2,773) | (3,893) | |
Derivative financial instruments - note 16 (b) | 7,486 | 948 | (833) | |
Loss on sale of property, plant and equipment and intangible assets | (4,891) | (2,268) | (857) | |
Pre-operating expenses related to Aripuanã | (8,753) | (1,885) | (1,312) | |
ICMS tax incentives | [1] | 71,949 | ||
Others | (6,936) | (1,374) | (11,697) | |
Total other income and expenses, net | $ 31,948 | $ (19,164) | $ (18,206) | |
[1] | The Brazilian Complementary Law No. 160/2017, which amended Law No. 12.973/2014, states that government grants of ICMS tax incentives are considered investment subsidies and excluded from taxable income for the purpose of calculating the corporate income taxes IRPJ and CSLL. In 2021, the Company, supported by the opinion of its external legal advisors, concluded that the ICMS tax incentives obtained in 2021 and 2020 for a total amount of US$ 71,949 could be excluded from the corporate income taxes basis for the fiscal year ended on December 31, 2021 and recognized ICMS taxes in Taxes on Sales and ICMS tax incentives in Other income and expense, net. The ICMS tax incentives are a permanent difference and the related corporate income tax effect in the amount of USD 24,463 reduced the current tax expense in 2021 as shown in note 11 (a). |
Schedule of net financial resul
Schedule of net financial results (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financial income | ||||
Interest income on financial investments and cash equivalents | $ 6,074 | $ 7,295 | $ 20,909 | |
Interest on tax credits | 1,377 | 854 | 5,498 | |
Other financial income | 4,021 | 3,019 | 4,647 | |
Total financial income | 11,472 | 11,168 | 31,054 | |
Financial expenses | ||||
Interest on loans and financings | 96,565 | 97,422 | 67,369 | |
Premium paid on bonds repurchase – note 24 (c) | (14,481) | |||
Interest on other liabilities | 12,371 | 8,051 | 10,864 | |
Interest on contractual obligations | (6,936) | (6,182) | (6,526) | |
Interest on lease liabilities – note 23 (b) | 1,272 | 1,757 | 3,416 | |
Other financial expenses | 25,131 | 31,866 | 29,224 | |
Total financial expenses | (142,275) | (159,759) | (117,399) | |
Other financial items, net | ||||
Fair value of loans and financings – note 24 (c) | 19,380 | (8,058) | (6,640) | |
Derivative financial instruments - note 16 (b) | 5,640 | 717 | (1,024) | |
Foreign exchange losses | [1] | (19,839) | (120,809) | (12,893) |
Other financial items, net | (6,099) | (129,584) | (18,509) | |
Net financial results | $ (136,902) | $ (278,175) | $ (104,854) | |
[1] | The Company’s activities are subject to the income tax regime of each country where it operates. However, NEXA’s Cerro Lindo mining unit had a lower income tax rate in comparison with that of other Peruvian operations because it was taxed under the laws and guarantees of a stability agreement signed by NEXA PERU, which was valid until the end of 2021. The deferred taxes of NEXA’s Cerro Lindo unit, however, are calculated considering the statutory income tax rate of 29.5 |
Schedule of reconciliation of i
Schedule of reconciliation of income tax benefit (expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
IncomeTaxDisclosureLineItems [Line Items] | ||||
Income (loss) before income tax | $ 309,291 | $ (676,658) | $ (215,880) | |
Statutory income tax rate | 24.94% | 24.94% | 24.94% | |
Income tax (expense) benefit at statutory rate | $ (77,137) | $ 168,759 | $ 53,840 | |
Tax effects of translation of non-monetary assets/liabilities to functional currency | (32,998) | (28,174) | (3,575) | |
Unrecognized deferred tax benefit on net operating losses | (35,735) | (35,849) | ||
Special mining levy and special mining tax | (17,279) | (5,909) | (7,431) | |
Withholding tax on dividends paid by subsidiaries | (9,764) | |||
Difference in tax rate of subsidiaries outside Luxembourg | [1] | (3,179) | 36,390 | 24,698 |
Withholding tax over subsidiary capital reduction | [2] | (10,526) | ||
Impairment of goodwill | (78,866) | |||
ICMS tax incentives | [3] | 24,463 | ||
Other permanent tax differences | (813) | (32,199) | 596 | |
Income tax (expense) benefit | (153,204) | 24,152 | 58,364 | |
Current | (122,081) | (63,192) | (46,382) | |
Deferred | $ (31,123) | $ 87,344 | $ 104,746 | |
Parent [member] | ||||
IncomeTaxDisclosureLineItems [Line Items] | ||||
Income tax rate | 29.50% | |||
Capital reduction | $ 10,526 | |||
[1] | The Company’s activities are subject to the income tax regime of each country where it operates. However, NEXA’s Cerro Lindo mining unit had a lower income tax rate in comparison with that of other Peruvian operations because it was taxed under the laws and guarantees of a stability agreement signed by NEXA PERU, which was valid until the end of 2021. The deferred taxes of NEXA’s Cerro Lindo unit, however, are calculated considering the statutory income tax rate of 29.5 | |||
[2] | On June 10, 2021, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 210,703 which was paid on July 27, 2021. Given this capital reduction, the Company recognized USD 10,526 | |||
[3] | See note 9. |
Schedule of analysis of deferre
Schedule of analysis of deferred income tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Deferred income tax assets | $ 168,205 | $ 221,580 | |||
Deferred income tax liabilities | 208,583 | 218,392 | |||
Total | (40,378) | 3,188 | $ (48,212) | $ 104,746 | |
Balace of tax losses | 11,996 | ||||
Unused tax losses [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | [1] | 116,284 | 108,767 | ||
Unrealised foreign exchange gains (losses) [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 33,123 | ||||
Other environment related provision [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 13,923 | 16,611 | |||
Provision for decommissioning, restoration and rehabilitation costs [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 17,698 | 20,507 | |||
Temporary differences tax civil and labor provisions [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 7,797 | 7,162 | |||
Miscellaneous other provisions [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 8,613 | 9,825 | |||
Temporary differences provision for inventory losses [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 7,224 | 6,813 | |||
Temporary differences provision for employee benefits [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 7,138 | 5,299 | |||
Derivatives [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 506 | 3,056 | |||
Other temporary differences [member] | |||||
IncomeTaxDisclosureLineItems [Line Items] | |||||
Tax credits | 7,039 | 6,513 | |||
Tax debits | $ (3,951) | $ (6,444) | |||
[1] | As a result of adopting Complementary Law No. 160/2017, as described in note 9, there was also an increase in the amount of USD 11,996 |
Schedule of effects of deferred
Schedule of effects of deferred tax and taxes on profit or loss and other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current And Deferred Income Tax | |||
Balance at beginning of the year | $ 3,188 | $ (48,212) | $ 104,746 |
Effect on (loss) income for the year | (31,123) | 87,344 | 104,746 |
Effect on other comprehensive income (loss) - Fair value adjustment | (2,536) | 13 | 453 |
Prior years uncertain income tax treatment payment | 4,706 | ||
Impact of the adoption of IFRIC 23 | (10,070) | ||
Foreign exchange (loss) gain | (9,907) | (40,663) | (6,531) |
Balance at end of the year | $ (40,378) | $ 3,188 | $ (48,212) |
Current and deferred income t_3
Current and deferred income tax (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current And Deferred Income Tax | ||
contingent liabilities | $ 134,804 | $ 163,670 |
Description of contingent liabilities on income taxes | As a result of this procedure, SUNAT determined an amount to be paid by the Company of USD 47,575 (including principal, penalties and interest) arguing that NEXA PERU’s income tax expense should be calculated considering the Peruvian statutory income tax rate for 2014 fiscal year of 30% instead of the 20% income tax rate that the stability agreement granted to Cerro Lindo’s operations. According to SUNAT, the Company should separate the income coming from the facilities built under the approved feasibility study (which includes a plant with a production capacity of 5,000 tpd) from that coming from the other facilities and since this is not possible, SUNAT disregarded the stabilized rate. |
Schedule of sensitivity analysi
Schedule of sensitivity analysis risk factors affecting price of financial instrument (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Currency risk b r l [member] | |
Disclosure of financial assets [line items] | |
Exchange rate exposure | 5.5805 |
Cash and cash equivalents and financial investments | $ 65,403 |
Loans and financing | 272,323 |
Derivative financial instruments | $ (66) |
Currency risk b r l [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 1.46% |
Exchange rate at scenario1 | $ (1) |
Exchange price at negative25 | 19 |
Exchange price at negative50 | 38 |
Exchange price at positive25 | (19) |
Exchange price at positive50 | (38) |
Currency risk b r l [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange rate at scenario1 | (3,029) |
Exchange price at negative25 | 51,730 |
Exchange price at negative50 | 103,460 |
Exchange price at positive25 | (51,730) |
Exchange price at positive50 | $ (103,460) |
Currency risk e u r [member] | |
Disclosure of financial assets [line items] | |
Exchange rate exposure | 1.1327 |
Cash and cash equivalents and financial investments | $ 3,604 |
Loans and financing | |
Derivative financial instruments | |
Currency risk e u r [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 1.53% |
Exchange rate at scenario1 | $ 55 |
Exchange price at negative25 | (901) |
Exchange price at negative50 | (1,802) |
Exchange price at positive25 | 901 |
Exchange price at positive50 | 1,802 |
Currency risk e u r [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Currency risk p e n [member] | |
Disclosure of financial assets [line items] | |
Exchange rate exposure | 4.0069 |
Cash and cash equivalents and financial investments | $ 23,846 |
Loans and financing | 1,783 |
Derivative financial instruments | |
Currency risk p e n [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | (0.33%) |
Exchange rate at scenario1 | $ (72) |
Exchange price at negative25 | (5,515) |
Exchange price at negative50 | (11,031) |
Exchange price at positive25 | 5,515 |
Exchange price at positive50 | 11,031 |
Currency risk p e n [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Currency risk c a d [member] | |
Disclosure of financial assets [line items] | |
Exchange rate exposure | 1.2718 |
Cash and cash equivalents and financial investments | $ 1,040 |
Loans and financing | |
Derivative financial instruments | |
Currency risk c a d [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 0.94% |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Currency risk c a d [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange rate at scenario1 | 10 |
Exchange price at negative25 | (260) |
Exchange price at negative50 | (520) |
Exchange price at positive25 | 260 |
Exchange price at positive50 | $ 520 |
Currency risk n a d [member] | |
Disclosure of financial assets [line items] | |
Exchange rate exposure | 15.9600 |
Cash and cash equivalents and financial investments | $ 1,427 |
Loans and financing | |
Derivative financial instruments | |
Currency risk n a d [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | (6.08%) |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Currency risk n a d [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange rate at scenario1 | (87) |
Exchange price at negative25 | (357) |
Exchange price at negative50 | (713) |
Exchange price at positive25 | 357 |
Exchange price at positive50 | 713 |
Currency risk BRLCDISELIC [member] | |
Disclosure of financial assets [line items] | |
Loans and financing | 81,473 |
Derivative financial instruments | $ (66) |
Interest rates | 9.15% |
Cash cash equivalents and short term investments commodity price1 | $ 64,871 |
Currency risk BRLCDISELIC [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 191.00% |
Exchange price at negative50 | $ 3,083 |
Exchange price at positive25 | (1,339) |
Exchange price at positive50 | (2,570) |
Interest rate at scenario1 | (40) |
Interest price at negative25 | 1,466 |
Currency risk BRLCDISELIC [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rate at scenario1 | |
Interest price at negative25 | |
Currency risk USD LIBOR [member] | |
Disclosure of financial assets [line items] | |
Loans and financing | 88,677 |
Derivative financial instruments | $ (6,465) |
Interest rates | 0.22% |
Cash cash equivalents and short term investments commodity price1 | |
Currency risk USD LIBOR [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 2.00% |
Exchange price at negative50 | $ 107 |
Exchange price at positive25 | (53) |
Exchange price at positive50 | (107) |
Interest rate at scenario1 | (24) |
Interest price at negative25 | 53 |
Currency risk USD LIBOR [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | (10) |
Exchange price at positive25 | 5 |
Exchange price at positive50 | 10 |
Interest rate at scenario1 | 4 |
Interest price at negative25 | (5) |
Currency risk IPCATLP [member] | |
Disclosure of financial assets [line items] | |
Loans and financing | 171,346 |
Derivative financial instruments | |
Interest rates | 10.06% |
Cash cash equivalents and short term investments commodity price1 | |
Currency risk IPCATLP [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | (456.00%) |
Exchange price at negative50 | $ 8,619 |
Exchange price at positive25 | (4,309) |
Exchange price at positive50 | (8,619) |
Interest rate at scenario1 | 7,813 |
Interest price at negative25 | 4,309 |
Currency risk IPCATLP [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rate at scenario1 | |
Interest price at negative25 | |
Currency risk TJLP [member] | |
Disclosure of financial assets [line items] | |
Loans and financing | 19,325 |
Derivative financial instruments | |
Interest rates | 5.32% |
Cash cash equivalents and short term investments commodity price1 | |
Currency risk TJLP [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Interest rates | 44.00% |
Exchange price at negative50 | $ 514 |
Exchange price at positive25 | (257) |
Exchange price at positive50 | (514) |
Interest rate at scenario1 | (85) |
Interest price at negative25 | 257 |
Currency risk TJLP [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rate at scenario1 | |
Interest price at negative25 | |
Zinc [member] | |
Disclosure of financial assets [line items] | |
Loans and financing | |
Derivative financial instruments | (6,465) |
Cash cash equivalents and short term investments commodity price1 | |
Commodities price | 3,630 |
Zinc [member] | Income statement [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | 47,481 |
Exchange price at positive25 | (23,740) |
Exchange price at positive50 | $ (47,481) |
Commodities price | (18.73%) |
Commodity rate at scenario1 | $ 33,485 |
Commodity price at negative25 | 23,740 |
Zinc [member] | Comprehensive income1 [member] | |
Disclosure of financial assets [line items] | |
Exchange price at negative50 | (9,378) |
Exchange price at positive25 | 4,689 |
Exchange price at positive50 | 9,378 |
Commodity rate at scenario1 | (6,613) |
Commodity price at negative25 | $ (4,689) |
Summary of financial assets and
Summary of financial assets and liabilities in foreign currency (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||||
Trade accounts receivables | $ 231,174 | $ 229,032 | ||
Total assets | 4,904,836 | 5,064,226 | ||
Loans and financings | 1,699,315 | $ 102,042 | 2,024,314 | $ 1,508,557 |
Trade payables | 411,818 | 370,122 | ||
Lease liabilities | 19,639 | 25,689 | $ 34,384 | |
Total liabilities | 3,260,556 | 3,442,982 | ||
Foreign currencies [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash, cash equivalents and financial investments | 95,320 | 257,706 | ||
Derivative financial instruments | 314 | 22,376 | ||
Trade accounts receivables | 34,858 | 42,612 | ||
Total assets | 130,492 | 322,694 | ||
Loans and financings | 272,353 | 454,372 | ||
Derivative financial instruments | 380 | 21,484 | ||
Trade payables | 200,983 | 165,019 | ||
Lease liabilities | 7,921 | 20,792 | ||
Use of public assets | 24,384 | 20,787 | ||
Total liabilities | 506,021 | 682,454 | ||
Net exposure | $ (375,529) | $ (359,760) |
Schedule of credit quality of f
Schedule of credit quality of financial assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of financial assets [line items] | ||||
Financial assets | $ 1,014,312 | $ 1,382,221 | ||
Ifrs cash and cash equivalents [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 743,817 | 1,086,163 | [1] | |
Ifrs cash and cash equivalents [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 181,395 | 408,264 | ||
Ifrs cash and cash equivalents [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 562,422 | 677,899 | ||
Ifrs cash and cash equivalents [member] | Credit rating aaa [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 117,439 | 131,489 | [1] | |
Ifrs cash and cash equivalents [member] | Credit rating aaa [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 117,439 | 131,489 | ||
Ifrs cash and cash equivalents [member] | Credit rating aa plus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [1] | 1,959 | ||
Ifrs cash and cash equivalents [member] | Credit rating aa plus [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 1,959 | |||
Ifrs cash and cash equivalents [member] | Credit rating aa [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 19 | 30,178 | [1] | |
Ifrs cash and cash equivalents [member] | Credit rating aa [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 19 | 30,178 | ||
Ifrs cash and cash equivalents [member] | Credit rating aa minus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 21,252 | 30,386 | [1] | |
Ifrs cash and cash equivalents [member] | Credit rating aa minus [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 8,754 | |||
Ifrs cash and cash equivalents [member] | Credit rating aa minus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 21,252 | 21,632 | ||
Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 354,043 | 414,184 | [1] | |
Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 35,923 | 164,987 | ||
Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 318,120 | 249,197 | ||
Ifrs cash and cash equivalents [member] | Credit ratinga [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 141,007 | 327,607 | [1] | |
Ifrs cash and cash equivalents [member] | Credit ratinga [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 25,354 | 69,608 | ||
Ifrs cash and cash equivalents [member] | Credit ratinga [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 115,653 | 257,999 | ||
Ifrs cash and cash equivalents [member] | Credit rating aminus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 104,528 | 116,992 | [1] | |
Ifrs cash and cash equivalents [member] | Credit rating aminus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 104,528 | 116,992 | ||
Ifrs cash and cash equivalents [member] | Credit rating bbb plus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [1] | 30,706 | ||
Ifrs cash and cash equivalents [member] | Credit rating bbb plus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 30,706 | |||
Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [2] | 5,529 | 2,662 | [1] |
Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [2] | 2,660 | 1,289 | |
Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [2] | 2,869 | 1,373 | |
Financial investments [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 19,202 | 35,044 | [1] | |
Financial investments [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 19,202 | 35,044 | ||
Financial investments [member] | Credit rating aaa [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 16,849 | 32,411 | [1] | |
Financial investments [member] | Credit rating aaa [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 16,849 | 32,411 | ||
Financial investments [member] | Credit rating aa plus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [1] | 2,257 | ||
Financial investments [member] | Credit rating aa plus [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 2,257 | |||
Financial investments [member] | Credit rating aa [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 2,353 | 46 | [1] | |
Financial investments [member] | Credit rating aa [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 2,353 | 46 | ||
Financial investments [member] | Credit rating aa minus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | [1] | 330 | ||
Financial investments [member] | Credit rating aa minus [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 330 | |||
Derivatives [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 16,394 | 31,980 | [1] | |
Derivatives [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 314 | 2,068 | ||
Derivatives [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 16,080 | 29,912 | ||
Derivatives [member] | Credit rating aaa [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 314 | 2,068 | [1] | |
Derivatives [member] | Credit rating aaa [member] | Local [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 314 | 2,068 | ||
Derivatives [member] | Credit rating aplus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 8,491 | 1,977 | [1] | |
Derivatives [member] | Credit rating aplus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 8,491 | 1,977 | ||
Derivatives [member] | Credit rating aminus [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 7,589 | 27,935 | [1] | |
Derivatives [member] | Credit rating aminus [member] | Global [member] | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | $ 7,589 | $ 27,935 | ||
[1] | As mentioned in note 5 (c), in 2021, the Company modified its Financial Risk Management Policy, allowing the use of local ratings available from local agencies in Peru, for assessing the credit risks of financial institutions in Peru. Therefore, the Company is presenting the 2020 comparative balances according to the updated policy. | |||
[2] | Refers to subsidiaries of international financial institutions that do not have a global rating available in the international rating agencies. According to the Company's policy, for these financial institutions, the rating of the financial institution controlling entities is assumed, which must be at least BBB-. |
Summary of estimated future cas
Summary of estimated future cash flow (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 3,476,004 | $ 3,685,310 |
Loans and financing [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 2,244,541 | 2,648,661 |
Lease liabilities [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 21,084 | 25,689 |
Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 22,925 | 26,874 |
Trade payables [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 411,818 | 370,122 |
Confirming payable [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 232,860 | 145,295 |
Salaries and payroll charges [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 76,031 | 56,107 |
Dividends payable [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 11,441 | 4,557 |
Related parties [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 392 | 561 |
Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 424,803 | 377,900 |
Service concession arrangements [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 30,109 | 29,544 |
Not later than one year [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 920,056 | 847,068 |
Not later than one year [member] | Loans and financing [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 114,240 | 214,614 |
Not later than one year [member] | Lease liabilities [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 17,340 | 15,999 |
Not later than one year [member] | Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 22,684 | 5,390 |
Not later than one year [member] | Trade payables [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 411,818 | 370,122 |
Not later than one year [member] | Confirming payable [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 232,860 | 145,295 |
Not later than one year [member] | Salaries and payroll charges [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 76,031 | 56,107 |
Not later than one year [member] | Dividends payable [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 11,441 | 4,557 |
Not later than one year [member] | Related parties [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 321 | |
Not later than one year [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 31,953 | 33,714 |
Not later than one year [member] | Service concession arrangements [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,368 | 1,270 |
Later than one year and not later than three years [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 515,737 | 551,325 |
Later than one year and not later than three years [member] | Loans and financing [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 443,780 | 484,579 |
Later than one year and not later than three years [member] | Lease liabilities [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 3,744 | 9,690 |
Later than one year and not later than three years [member] | Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 146 | 51 |
Later than one year and not later than three years [member] | Related parties [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 71 | 561 |
Later than one year and not later than three years [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 64,752 | 53,501 |
Later than one year and not later than three years [member] | Service concession arrangements [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 3,244 | 2,943 |
Later than three years and not later than five years [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 335,975 | 556,164 |
Later than three years and not later than five years [member] | Loans and financing [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 247,226 | 459,215 |
Later than three years and not later than five years [member] | Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 71 | 21,374 |
Later than three years and not later than five years [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 85,021 | 70,444 |
Later than three years and not later than five years [member] | Service concession arrangements [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 3,657 | 5,131 |
Later than five years [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,704,235 | 1,730,753 |
Later than five years [member] | Loans and financing [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,439,295 | 1,490,253 |
Later than five years [member] | Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 24 | 59 |
Later than five years [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 243,076 | 220,241 |
Later than five years [member] | Service concession arrangements [member] | ||
Disclosure of financial assets [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 21,840 | $ 20,200 |
Summary of leverage ratio (Deta
Summary of leverage ratio (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 09, 2021USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of financial assets [abstract] | |||||
Loans and financings | $ 1,699,315 | $ 2,024,314 | $ 1,508,557 | $ 102,042 | |
Derivative financial instruments | 6,531 | (5,106) | 2,294 | ||
Lease liabilities | 19,639 | 25,689 | 34,384 | ||
Cash and cash equivalents | (743,817) | (1,086,163) | (698,618) | $ (1,032,938) | |
Financial investments | (19,202) | (35,044) | (58,775) | ||
Net debt | 962,466 | 923,690 | 787,842 | ||
Net income (loss) for the period | 156,087 | (652,506) | (157,516) | ||
Depreciation and amortization | 258,711 | 243,925 | 317,892 | ||
Net financial results | (136,902) | (278,175) | (104,854) | ||
Income tax expense (benefit) | 153,204 | (24,152) | (58,364) | ||
EBITDA | 704,904 | (154,558) | 206,866 | ||
Impairment of non-current assets | 557,497 | 142,133 | |||
Miscellaneous adjustments | (664) | ||||
Adjusted EBITDA | $ 704,240 | $ 402,939 | $ 348,999 | ||
Leverage ratio (Net debt/Adjusted EBITDA) | 1.37 | 2.29 | 2.26 |
Schedule of financial instrumen
Schedule of financial instruments breakdown by category (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | $ 1,014,312 | $ 1,382,221 | |
Financial liabilities | 2,411,333 | 2,612,070 | |
Loans and financing [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 1,699,315 | 2,024,314 | |
Lease liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 19,639 | 25,689 | |
Derivatives [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 22,925 | 26,874 | |
Trade payables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 411,818 | 370,122 | |
Confirming payable [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 232,860 | 145,295 | |
Use of public assets [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 19,215 | ||
Service concession arrangements [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 24,384 | ||
Related parties [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 392 | 561 | |
Financial liabilities at amortised cost, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 2,299,731 | 2,383,638 | |
Financial liabilities at amortised cost, category [member] | Loans and financing [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 1,610,638 | 1,822,756 | |
Financial liabilities at amortised cost, category [member] | Lease liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 19,639 | 25,689 | |
Financial liabilities at amortised cost, category [member] | Trade payables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 411,818 | 370,122 | |
Financial liabilities at amortised cost, category [member] | Confirming payable [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 232,860 | 145,295 | |
Financial liabilities at amortised cost, category [member] | Use of public assets [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 24,384 | 19,215 | |
Financial liabilities at amortised cost, category [member] | Related parties [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 392 | 561 | |
Financial liabilities at fair value through profit or loss, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 111,602 | 228,432 | |
Financial liabilities at fair value through profit or loss, category [member] | Loans and financing [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 88,677 | 201,558 | |
Financial liabilities at fair value through profit or loss, category [member] | Derivatives [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | 22,925 | 26,874 | |
Financial assets at fair value through other comprehensive income, category [member] | Loans and financing [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | |||
Ifrs cash and cash equivalents [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 743,817 | 1,086,163 | [1] |
Financial investments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 19,202 | 35,044 | [1] |
Derivatives [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 16,394 | 31,980 | [1] |
Trade receivables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 231,174 | 229,032 | |
Equity investments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 3,723 | ||
Related parties [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 2 | 2 | |
Financial assets at amortised cost, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 847,990 | 1,185,471 | |
Financial assets at amortised cost, category [member] | Ifrs cash and cash equivalents [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 743,817 | 1,086,163 | |
Financial assets at amortised cost, category [member] | Financial investments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 19,202 | 35,044 | |
Financial assets at amortised cost, category [member] | Trade receivables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 84,969 | 64,262 | |
Financial assets at amortised cost, category [member] | Related parties [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 2 | 2 | |
Financial assets at fair value through profit or loss, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 162,599 | 196,750 | |
Financial assets at fair value through profit or loss, category [member] | Derivatives [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 16,394 | 31,980 | |
Financial assets at fair value through profit or loss, category [member] | Trade receivables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 146,205 | $ 164,770 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 3,723 | ||
Financial assets at fair value through other comprehensive income, category [member] | Equity investments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | $ 3,723 | ||
[1] | As mentioned in note 5 (c), in 2021, the Company modified its Financial Risk Management Policy, allowing the use of local ratings available from local agencies in Peru, for assessing the credit risks of financial institutions in Peru. Therefore, the Company is presenting the 2020 comparative balances according to the updated policy. |
Financial instruments (Details
Financial instruments (Details Narrative) - USD ($) | Apr. 16, 2021 | Mar. 17, 2021 | Mar. 17, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [abstract] | ||||||
Additional shares acquired | 654,758 | 29,895,754,000 | ||||
Payments to acquire or redeem entity's shares | $ 136 | $ 6,220,000 | $ 8,103,000 |
Classification of financial ass
Classification of financial assets and liabilities in the fair value hierarchy (Details) - At fair value [member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | $ 166,322 | $ 196,750 | ||
Financial liabilities, at fair value | 111,602 | 228,432 | ||
Loans and financing [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities, at fair value | 88,677 | 201,558 | [1] | |
Level 2 of fair value hierarchy [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | 162,599 | 196,750 | ||
Financial liabilities, at fair value | 111,602 | 228,432 | ||
Level 2 of fair value hierarchy [member] | Derivatives [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities, at fair value | 22,925 | 26,874 | ||
Derivatives [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | 16,394 | 31,980 | ||
Derivatives [member] | Level 2 of fair value hierarchy [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | 16,394 | 31,980 | ||
Trade receivables [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | 146,205 | 164,770 | ||
Trade receivables [member] | Level 2 of fair value hierarchy [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | 146,205 | $ 164,770 | ||
Investment in equity instruments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | [2] | 3,723 | ||
Investment in equity instruments [member] | Level 1 of fair value hierarchy [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, at fair value | [2] | $ 3,723 | ||
[1] | As explained above, certain loans and financings are measured at fair value. The carrying amount of other financial instruments measured at amortized cost do not differ significantly from their fair value. | |||
[2] | The Level 1 fair value amount of the investments in equity instruments is determined using the share´s quotation as of the last day of the reporting period. |
Schedule of cash and cash equiv
Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [abstract] | ||||
Cash and banks | $ 276,761 | $ 113,017 | ||
Term deposits | 467,056 | 973,146 | ||
Total cash and cash equivalents | $ 743,817 | $ 1,086,163 | $ 698,618 | $ 1,032,938 |
Schedule of changes in operatin
Schedule of changes in operating assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Decrease (increase) in assets | |||
Trade accounts receivables | $ (9,375) | $ (68,896) | $ (8,634) |
Inventory | (102,068) | 8,883 | (35,425) |
Derivative financial instruments | (14,936) | (7,809) | (4,649) |
Other assets | (47,312) | 30,557 | (45,872) |
Trade payables | 44,880 | 21,589 | 18,823 |
Confirming payables | 87,565 | 62,525 | 12,278 |
Other liabilities | 2,759 | 58,481 | 12,856 |
Changes in operating assets and liabilities | $ (38,487) | $ 105,330 | $ (50,623) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CashAndCashEquivalentsLineItems [Line Items] | ||
Additions to right-of-use assets | $ 5,174 | $ 5,785 |
Write-offs amount of property, plant and equipment | 3,343 | |
Remeasurement of asset retirement obligation | $ 14,314 | |
Decrease in the fair value amount | 19,380 | |
Additions in intangible assets | 19,407 | |
Credit risk [member] | ||
CashAndCashEquivalentsLineItems [Line Items] | ||
Amount of credit risk | $ 5,066 |
Schedule of fair value by strat
Schedule of fair value by strategy (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value | $ (6,531) | $ 5,106 | $ (2,294) | |
Current assets | 16,292 | 16,329 | ||
Non-current assets | 102 | 15,651 | ||
Current liabilities | 22,684 | 5,390 | ||
Non-current liabilities | 241 | 21,484 | ||
Hedging programs for mismatches of quotation periods [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value | (9,898) | 2,398 | ||
Hedging programs for sales of zinc at fixed price [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value | 3,433 | 1,815 | ||
Hedging programs for inflation risks [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value | (66) | 1,310 | ||
Hedging of changes in foreign exchange rates [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value | (417) | |||
Zinc forward [member] | Hedging programs for mismatches of quotation periods [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Nominal | 215,809 | 204,394 | ||
Fair value | (9,898) | 2,398 | ||
Zinc forward [member] | Hedging programs for sales of zinc at fixed price [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Nominal | 8,787 | 15,695 | ||
Fair value | 3,433 | 1,815 | ||
Brazilian inflation versus brazilian interbank interest rate swap [member] | Hedging programs for inflation risks [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Nominal | 226,880 | 226,880 | ||
Fair value | (66) | 1,310 | ||
Brl vs. usd [member] | Hedging of changes in foreign exchange rates [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Nominal | [1] | 477,000 | ||
Fair value | [1] | $ (417) | ||
[1] | Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021 |
Schedule of changes in fair val
Schedule of changes in fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about hedging instruments [line items] | ||||
Inventory | $ 1,146 | |||
Cost of sales | (37,963) | |||
Net revenues | 9,709 | |||
Other income and expenses, net | 7,486 | |||
Other comprehensive (loss) income | 488 | |||
Realized (loss) gain | (13,137) | |||
Net financial results | (5,640) | $ (717) | $ 1,024 | |
Zinc forward [member] | Hedging programs for mismatches of quotation periods [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Inventory | 1,146 | |||
Cost of sales | (37,963) | |||
Net revenues | 9,709 | |||
Other income and expenses, net | 1,820 | |||
Other comprehensive (loss) income | 454 | |||
Realized (loss) gain | (12,538) | |||
Zinc forward [member] | Hedging programs for sales of zinc at fixed price [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Other income and expenses, net | 5,666 | |||
Other comprehensive (loss) income | 34 | |||
Realized (loss) gain | 4,082 | |||
Brazilian inflation versus brazilian interbank interest rate swap [member] | Hedging programs for inflation risks [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Realized (loss) gain | 2,587 | |||
Net financial results | 1,211 | |||
Brl vs. usd [member] | Hedging of changes in foreign exchange rates [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Realized (loss) gain | [1] | (7,268) | ||
Net financial results | [1] | $ (6,851) | ||
[1] | Related to a derivative financial instrument entered into at the same time of a debt contract (a term loan in NEXA PERU) in order to manage some of the risks of such debt contract. As explained in note 24 (c), both the debt and the related derivative were prepaid on July 09, 2021. |
Schedule of composition of trad
Schedule of composition of trade accounts receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Related parties | $ 1,016 | $ 2,411 |
Total trade accounts receivables | 231,174 | 229,032 |
Gross carrying amount [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 233,623 | 229,800 |
Related parties | 1,016 | 2,411 |
Total trade accounts receivables | 234,639 | 232,211 |
Accumulated impairment [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total trade accounts receivables | $ (3,465) | $ (3,179) |
Schedule of changes in impairme
Schedule of changes in impairment of trade accounts receivables (Details) - Accumulated impairment [member] - Trade receivables [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Trade receivables impairment provision at the beginning of the year | $ (3,179) | $ (2,337) |
Additions | (1,586) | (2,643) |
Reversals | 1,206 | 1,288 |
Foreign exchange gains | 94 | 513 |
Trade receivable impairment provision at the end of the year | $ (3,465) | $ (3,179) |
Schedule of analysis of trade a
Schedule of analysis of trade accounts receivables by currency (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | $ 231,174 | $ 229,032 |
United States of America, Dollars | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 196,316 | 186,420 |
Brazil, Brazil Real | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 34,464 | 41,601 |
Other currencies [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | $ 394 | $ 1,011 |
Schedule of aging of trade acco
Schedule of aging of trade accounts receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | $ 231,174 | $ 229,032 |
Gross carrying amount [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 234,639 | 232,211 |
Gross carrying amount [member] | Current [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 222,083 | 222,670 |
Gross carrying amount [member] | Not later than three months [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 9,201 | 6,728 |
Gross carrying amount [member] | Later than three months and not later than six months [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 51 | 102 |
Gross carrying amount [member] | Later than six months [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | 3,304 | 2,711 |
Accumulated impairment [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Trade accounts receivables | $ (3,465) | $ (3,179) |
Schedule of inventories (Detail
Schedule of inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | |||
Finished products | $ 157,285 | $ 94,033 | |
Semi-finished products | 60,315 | 56,335 | |
Raw materials | [1] | 90,087 | 66,278 |
Auxiliary materials and consumables | 94,564 | 68,950 | |
Inventory provisions | (29,749) | (29,074) | |
Total | $ 372,502 | $ 256,522 | |
[1] | Raw materials include a USD 23,009 reclassification from Assets and projects under construction, within Property, plant and equipment, to Inventory, related to the ore pile costs that were incurred during Aripuanã’s commissioning phase and which should already be included in the Company's inventory. |
Schedule of changes in the prov
Schedule of changes in the provision for obsolescence (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | ||
Balance at the beginning of the year | $ (29,074) | $ (28,398) |
Additions | (15,094) | (11,439) |
Reversals | 13,986 | 9,647 |
Exchange variation gains | 433 | 1,116 |
Balance at the end of the year | $ (29,749) | $ (29,074) |
Schedule of the composition of
Schedule of the composition of other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other recoverable taxes | $ 128,377 | $ 127,815 |
Advances to third parties | 8,545 | 15,006 |
Prepaid expenses | 10,361 | 10,522 |
Judicial deposits | 5,446 | 5,566 |
Other assets | 26,974 | 25,363 |
Total other assets | 179,703 | 184,272 |
Current assets | 81,119 | 91,141 |
Non-current assets | $ 98,584 | $ 93,131 |
Schedule of related parties tra
Schedule of related parties transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of transactions between related parties [line items] | ||||
Related parties assets | $ 2 | $ 2 | ||
Trade payables | 4,811 | 9,887 | ||
Trade accounts receivable | 1,016 | 2,411 | ||
Related parties liabilities | 392 | 561 | ||
Dividends payable | 11,441 | 4,557 | ||
Trade accounts receivable, current | 1,016 | 2,411 | ||
Trade payables, current | 4,811 | 9,887 | ||
Dividends payable, current | 11,441 | 4,557 | ||
Related parties assets, non-current | 2 | 2 | ||
Sales | 15,094 | 17,579 | $ 6,177 | |
Purchases | 71,235 | 47,279 | 32,133 | |
Parent [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Related parties assets | [1] | 2 | 2 | |
Trade payables | [1] | 1,102 | 809 | |
Sales | [1] | 26 | ||
Purchases | [1] | 3,735 | 4,378 | 6,176 |
Andrade gutierrez engenharia s.a. [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade payables | [2] | 1,890 | 1,160 | |
Purchases | [2] | 41,498 | 26,280 | 5,046 |
Companhia brasileira de aluminio [member | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade payables | 264 | 175 | ||
Trade accounts receivable | 1,479 | 158 | ||
Sales | 8,988 | 7,828 | 2,157 | |
Purchases | 3,736 | 1,156 | 1,964 | |
Votorantim cimentos s.a. [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Related parties assets | ||||
Trade payables | 64 | 121 | ||
Trade accounts receivable | 551 | 595 | ||
Purchases | 661 | 524 | 2,186 | |
Votener votorantim comercializadora de energia ltda [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade payables | 945 | 6,330 | ||
Trade accounts receivable | 302 | 332 | ||
Sales | 5,993 | 9,740 | 3,288 | |
Purchases | 16,207 | 7,721 | 9,596 | |
Votorantim international csc s.a.c [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade payables | 306 | 421 | ||
Related parties liabilities | 152 | |||
Purchases | 4,278 | 6,638 | 5,584 | |
Other related parties [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade payables | 871 | 240 | ||
Trade accounts receivable | 5 | 5 | ||
Related parties liabilities | 240 | 561 | ||
Dividends payable | 11,441 | 4,557 | ||
Purchases | 1,120 | 582 | 1,581 | |
Other [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales | $ 113 | $ 11 | $ 510 | |
[1] | The Company entered into an agreement with VSA on September 4, 2008, for services provided by its Center of Excellence (“CoE”) related to administrative activities, human resources, back office, accounting, taxes, technical assistance, and training, among others. Under a cost sharing agreement, the Company reimburses VSA for the expenses related to these activities in respect of the Company. | |||
[2] | As part of the execution of the Aripuanã project, in June 2019 the Company entered into a mining development services agreement with Andrade Gutierrez Engenharia S.A., in which one of the Company director’s close family member may have significant influence at its holding level. Additionally, in June 2020, NEXA entered into one additional agreement with Consórcio Construtor Nova Aripuanã (a consortium of the Andrade Gutierrez group of companies) in connection with construction services for the Aripuanã project. |
Schedule of key management comp
Schedule of key management compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | ||
Short-term benefits | $ 6,602 | $ 6,765 |
Other long-term benefits | 664 | 1,791 |
Total key management compensation | $ 7,266 | $ 8,556 |
Schedule of detailed informatio
Schedule of detailed information about property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | $ 2,087,730 | $ 1,898,296 | ||
Reclassification | [1] | (31,851) | ||
Additions | 510,166 | [2] | 340,707 | |
Disposals and write-offs | (10,435) | (2,676) | ||
Depreciation | (177,029) | (167,679) | ||
Impairment of non-current assets | (83,539) | (159,045) | ||
Foreign exchange effects | (23,757) | [3] | (243,809) | |
Remeasurement of asset retirement obligation | 5,879 | 14,874 | ||
Balance at the beginning of the year | 2,087,730 | 1,898,296 | ||
Transfers | (4,649) | |||
Reclassification | (2,117) | |||
Dam and buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 454,603 | 538,659 | ||
Additions | [2] | 12 | ||
Disposals and write-offs | (567) | (240) | ||
Depreciation | (56,493) | (48,938) | ||
Impairment of non-current assets | (15,963) | (45,188) | ||
Foreign exchange effects | 57,393 | [3] | (60,934) | |
Balance at the beginning of the year | 438,985 | 454,603 | ||
Transfers | 71,244 | |||
Machinery equipment and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 626,194 | 752,554 | ||
Additions | [2] | 671 | 3,315 | |
Disposals and write-offs | (7,663) | (1,732) | ||
Depreciation | (110,895) | (110,515) | ||
Impairment of non-current assets | (23,188) | (26,521) | ||
Foreign exchange effects | 82,252 | [3] | (78,038) | |
Balance at the beginning of the year | 567,371 | 626,194 | ||
Transfers | 88,047 | |||
Reclassification | (916) | |||
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 527,532 | 535,092 | ||
Additions | [2] | 507,907 | 336,457 | |
Disposals and write-offs | (454) | (662) | ||
Impairment of non-current assets | (40,278) | (57,621) | ||
Foreign exchange effects | (182,612) | [3] | (83,982) | |
Balance at the beginning of the year | 812,095 | 527,532 | ||
Transfers | (201,752) | |||
Transfer | 748 | |||
Additions | 19,614 | 2,023 | ||
Transfer to inventories | 23,009 | |||
Asset retirement obligation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 86,812 | 104,659 | ||
Depreciation | (6,436) | (6,096) | ||
Impairment of non-current assets | (2,452) | (13,804) | ||
Foreign exchange effects | [3] | (12,821) | ||
Remeasurement of asset retirement obligation | 5,879 | 14,874 | ||
Balance at the beginning of the year | 83,803 | 86,812 | ||
Mining assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 183,624 | 168,108 | ||
Reclassification | [1] | (31,851) | ||
Depreciation | (2,062) | (869) | ||
Impairment of non-current assets | (1,027) | (15,805) | ||
Foreign exchange effects | 16,553 | [3] | (3,852) | |
Balance at the beginning of the year | 165,237 | 183,624 | ||
Transfers | 36,042 | |||
Transfer | 31,851 | |||
Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 19,531 | 23,618 | ||
Additions | 1,576 | [2] | 935 | |
Disposals and write-offs | (1,751) | (42) | ||
Depreciation | (1,143) | (1,261) | ||
Impairment of non-current assets | (631) | (106) | ||
Foreign exchange effects | 2,657 | [3] | (4,182) | |
Balance at the beginning of the year | 20,239 | 19,531 | ||
Transfers | 1,770 | |||
Reclassification | (1,201) | |||
Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 4,520,321 | 4,527,613 | ||
Balance at the beginning of the year | 4,656,087 | 4,520,321 | ||
Gross carrying amount [member] | Dam and buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 1,022,432 | 1,050,632 | ||
Balance at the beginning of the year | 1,054,413 | 1,022,432 | ||
Gross carrying amount [member] | Machinery equipment and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 2,360,426 | 2,419,034 | ||
Balance at the beginning of the year | 2,330,748 | 2,360,426 | ||
Gross carrying amount [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 596,675 | 549,903 | ||
Balance at the beginning of the year | 874,776 | 596,675 | ||
Gross carrying amount [member] | Asset retirement obligation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 211,650 | 201,892 | ||
Balance at the beginning of the year | 202,242 | 211,650 | ||
Gross carrying amount [member] | Mining assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 292,322 | 261,117 | ||
Balance at the beginning of the year | 158,642 | 292,322 | ||
Gross carrying amount [member] | Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | 36,816 | 45,035 | ||
Balance at the beginning of the year | 35,266 | 36,816 | ||
Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (2,622,025) | (2,404,923) | ||
Balance at the beginning of the year | (2,568,357) | (2,622,025) | ||
Accumulated depreciation, amortisation and impairment [member] | Dam and buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (567,829) | (511,973) | ||
Balance at the beginning of the year | (615,428) | (567,829) | ||
Accumulated depreciation, amortisation and impairment [member] | Machinery equipment and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (1,734,232) | (1,666,480) | ||
Balance at the beginning of the year | (1,763,377) | (1,734,232) | ||
Accumulated depreciation, amortisation and impairment [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (69,143) | (14,811) | ||
Balance at the beginning of the year | (62,681) | (69,143) | ||
Accumulated depreciation, amortisation and impairment [member] | Asset retirement obligation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (124,838) | (97,233) | ||
Balance at the beginning of the year | (118,439) | (124,838) | ||
Accumulated depreciation, amortisation and impairment [member] | Mining assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (108,698) | (93,009) | ||
Balance at the beginning of the year | 6,595 | (108,698) | ||
Accumulated depreciation, amortisation and impairment [member] | Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at the end of the year | (17,285) | (21,417) | ||
Balance at the beginning of the year | $ (15,027) | $ (17,285) | ||
[1] | Reclassification of USD 31,851 | |||
[2] | Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 19,614 2,023 | |||
[3] | Amount includes: (i) a transfer from Assets and projects under construction to Inventories (raw materials) of USD 23,009 748 |
Schedule of reconciliation of c
Schedule of reconciliation of changes in intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | $ 1,076,405 | $ 1,538,526 | |
Balance at the beginning of the year | (1,315,983) | ||
Reclassification of intengible assets | [1] | 31,851 | |
Balance at the beginning of the year | 1,108,256 | ||
Additions | 21,821 | ||
Disposals | (9) | (55) | |
Amortization | (71,379) | (63,778) | |
Foreign exchange effect | (2,666) | (4,485) | |
Transfers | 748 | 4,649 | |
Balance at the end of the year | 1,056,771 | 1,076,405 | |
Balance at the end of the year | (1,480,856) | (1,315,983) | |
Impairment of non-current assets | (398,452) | ||
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 406,434 | 674,645 | |
Balance at the beginning of the year | 406,434 | ||
Foreign exchange effect | (206) | (869) | |
Balance at the end of the year | 406,228 | 406,434 | |
Impairment of non-current assets | (267,342) | ||
Mining rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 648,870 | 843,793 | |
Reclassification of intengible assets | [1] | 31,851 | |
Balance at the beginning of the year | 680,721 | ||
Amortization | (67,829) | (60,936) | |
Foreign exchange effect | (622) | (2,877) | |
Balance at the end of the year | 612,270 | 648,870 | |
Impairment of non-current assets | (131,110) | ||
Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 21,101 | 20,088 | |
Balance at the beginning of the year | 21,101 | ||
Additions | 21,821 | ||
Disposals | (9) | (55) | |
Amortization | (3,550) | (2,842) | |
Foreign exchange effect | (1,838) | (739) | |
Transfers | 748 | 4,649 | |
Balance at the end of the year | 38,273 | 21,101 | |
Gross carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 2,403,009 | ||
Balance at the beginning of the year | 2,392,388 | ||
Balance at the end of the year | 2,392,388 | ||
Gross carrying amount [member] | Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 673,776 | 674,645 | |
Balance at the end of the year | 673,570 | 673,776 | |
Gross carrying amount [member] | Mining rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 1,665,149 | 1,668,956 | |
Balance at the end of the year | 1,791,643 | 1,665,149 | |
Gross carrying amount [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | 53,463 | 59,408 | |
Balance at the end of the year | 72,414 | 53,463 | |
Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | (864,483) | ||
Balance at the beginning of the year | (1,315,983) | ||
Balance at the end of the year | (1,315,983) | ||
Accumulated depreciation, amortisation and impairment [member] | Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | (267,342) | ||
Balance at the end of the year | (267,342) | (267,342) | |
Accumulated depreciation, amortisation and impairment [member] | Mining rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | (1,016,279) | ||
Amortization | (825,163) | ||
Balance at the end of the year | (1,179,373) | (1,016,279) | |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at the beginning of the year | (32,362) | (39,320) | |
Balance at the end of the year | $ (34,141) | $ (32,362) | |
[1] | The Company identified USD 31,851 of legal mining rights that were being classified as Mining projects within Property, Plant and Equipment, instead of as Rights to use natural resources within Intangible assets. Given the nature of this reclassification, only between Property, Plant and Equipment and Intangible assets, the Company made an out-of-period adjustment, to account for the correct classification of those legal mining rights as of December 31, 2021. |
Intangible assets (Details Narr
Intangible assets (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Description of energy resources agreement | Brazilian Electric Energy Chamber (“CCEE”) finalized the necessary calculations for the extension of the concession period for the energy power plants that were affected by the increased costs related to GSF and after evaluating the amounts involved, NEXA agreed to accept the renegotiation agreement with the Brazilian Electricity Regulator Agency (“ANEEL”) and to waive any future judicial claim related to the increased GSF costs. This had an impact of USD 19,407 (Picada – 5 years of extended concession period: USD 4,592; Armador Aguiar I – 6 years and 2 months of extended concession period: USD 3,293; Igarapava – 2 years and 7 months of extended concession period: USD 2,565; and, Enercan – 3 years and 6 months of extended concession period: USD 8,957). |
Summary of rights-of-use-assets
Summary of rights-of-use-assets - Changes in the year (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | $ 18,869 | $ 29,547 |
Amortization | (10,303) | (12,468) |
Amortization | 5,174 | 5,785 |
Remeasurement | (290) | 0 |
Foreign exchange effect | (761) | (3,995) |
At the end of the year | 12,689 | 18,869 |
At the end of the year | 12,689 | 18,869 |
Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 47,562 | 45,772 |
At the end of the year | 50,003 | 47,562 |
At the end of the year | 50,003 | 47,562 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | (28,693) | (16,225) |
At the end of the year | (37,314) | (28,693) |
At the end of the year | (37,314) | (28,693) |
Buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 3,332 | |
At the end of the year | 1,887 | 3,332 |
At the end of the year | $ 1,887 | 3,332 |
Average annual amortization rates % | 31.00% | |
Machinery equipment and facilities [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | $ 4,940 | |
At the end of the year | 4,803 | 4,940 |
At the end of the year | $ 4,803 | 4,940 |
Average annual amortization rates % | 34.00% | |
I t equipmrnt [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | $ 284 | |
At the end of the year | 0 | 284 |
At the end of the year | $ 0 | 284 |
Average annual amortization rates % | 33.00% | |
Vehicles [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | $ 10,313 | |
At the end of the year | 5,999 | 10,313 |
At the end of the year | $ 5,999 | 10,313 |
Average annual amortization rates % | 34.00% | |
Buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization | $ 0 | |
Amortization | (1,063) | |
Remeasurement | (290) | |
Foreign exchange effect | (92) | |
At the end of the year | 1,887 | |
At the end of the year | 1,887 | |
Buildings [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 6,461 | |
At the end of the year | 5,731 | 6,461 |
At the end of the year | 5,731 | 6,461 |
Buildings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | (3,129) | |
At the end of the year | (3,844) | (3,129) |
At the end of the year | (3,844) | (3,129) |
Machinery equipment and facilities [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization | 2,723 | |
Amortization | (2,668) | |
Remeasurement | ||
Foreign exchange effect | (192) | |
At the end of the year | 4,803 | |
At the end of the year | 4,803 | |
Machinery equipment and facilities [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 10,639 | |
At the end of the year | 17,560 | 10,639 |
At the end of the year | 17,560 | 10,639 |
Machinery equipment and facilities [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | (5,699) | |
At the end of the year | (12,757) | (5,699) |
At the end of the year | (12,757) | (5,699) |
I t equipmrnt [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization | 0 | |
Amortization | (284) | |
Remeasurement | ||
Foreign exchange effect | ||
I t equipmrnt [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 5,846 | |
At the end of the year | 5,427 | 5,846 |
At the end of the year | 5,427 | 5,846 |
I t equipmrnt [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | (5,562) | |
At the end of the year | (5,427) | (5,562) |
At the end of the year | (5,427) | (5,562) |
Vehicles [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization | 2,451 | |
Amortization | (6,288) | |
Remeasurement | ||
Foreign exchange effect | (477) | |
At the end of the year | 5,999 | |
At the end of the year | 5,999 | |
Vehicles [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | 24,616 | |
At the end of the year | 21,285 | 24,616 |
At the end of the year | 21,285 | 24,616 |
Vehicles [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | (14,303) | |
At the end of the year | (15,286) | (14,303) |
At the end of the year | (15,286) | $ (14,303) |
Computer equipment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the end of the year | ||
At the end of the year |
Summary of lease liabilities -
Summary of lease liabilities - changes in the year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |||
At the beginning of the year | $ 25,689 | $ 34,384 | |
New contracts | 5,174 | 5,785 | |
Payments of lease liabilities | (9,827) | (9,100) | $ (13,280) |
Interest paid on lease liabilities | (1,415) | (1,385) | (3,259) |
Interest accrued | 1,272 | 1,757 | 3,416 |
Foreign exchange effect | (952) | (5,752) | |
Lease liabilities | 19,639 | 25,689 | $ 34,384 |
Current liabilities | 16,246 | 15,999 | |
Non-current liabilities | $ 3,393 | $ 9,690 |
Schedule of analysis of the loa
Schedule of analysis of the loans and financings (Details) R$ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Jul. 09, 2021USD ($) | Jun. 28, 2021USD ($) | Jun. 23, 2021BRL (R$) | Jan. 22, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 46,713 | $ 146,002 | |||||
Non-current | 1,652,602 | 1,878,312 | |||||
Total borrowings | 1,699,315 | $ 102,042 | 2,024,314 | $ 1,508,557 | |||
Current portion of long term loans and financing (principal) | 192,760 | ||||||
Interest on loans and financing | 274,370 | ||||||
Fixed interest rate [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | 21,530 | ||||||
Non-current | 1,318,717 | ||||||
Total borrowings | 1,340,247 | 1,456,090 | |||||
Interbank deposit certificate rate cdi [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | 6,134 | ||||||
Non-current | 45,182 | ||||||
Total borrowings | 51,316 | 156,683 | |||||
Ifrs london interbank offered rate libor [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | 248 | ||||||
Non-current | 88,429 | ||||||
Total borrowings | 88,677 | 230,574 | |||||
Eurobonds u s d [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | 200,810 | ||||||
Non-current | 13,182,530 | ||||||
Total borrowings | $ 1,338,334 | 13,389,720 | |||||
Eurobonds u s d [member] | Fixed interest rate [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 5.73% | ||||||
Debt with brazilian national bank for economic and social development [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 187,210 | ||||||
Non-current | 1,970,800 | ||||||
Total borrowings | $ 215,801 | 1,798,280 | |||||
Debt with brazilian national bank for economic and social development [member] | Brazilian system for clearance and custody selic rate [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate | 3.10% | ||||||
Debt with brazilian national bank for economic and social development [member] | Tlp ipca [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate | 5.46% | ||||||
Export credit note one [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 42,969 | R$ 245000 | $ 250,000 | ||||
Export credit note one [member] | London interbank offered rate libor three months [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate | 1.54% | ||||||
Export credit note [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 14,660 | ||||||
Non-current | 1,336,110 | ||||||
Total borrowings | $ 135,077 | 2,342,210 | |||||
Export credit note [member] | Interbank deposit certificate rate cdi [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of reference rate | 134.20% | ||||||
Export credit note [member] | Interbank deposit certificate rate cdi one [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of reference rate | 115.55% | ||||||
Term loans [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total borrowings | 2,137,350 | ||||||
Term loans [member] | Ifrs london interbank offered rate libor [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate | 1.27% | ||||||
Term loan one [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 8.49% | ||||||
Debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 49,160 | ||||||
Total borrowings | $ 4,916 | 103,880 | |||||
Debentures [member] | Interbank deposit certificate rate cdi [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of reference rate | 107.50% | ||||||
Other borrowings [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current | $ 15,290 | ||||||
Non-current | 36,580 | ||||||
Total borrowings | $ 5,187 | $ 471,700 |
Schedule of movements in loans
Schedule of movements in loans and financings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 09, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||||||
Balance at the beginning of the year | $ 2,024,314 | $ 1,508,557 | ||||
New loans and financings | 59,771 | 1,296,496 | ||||
Debt issue costs | (178) | (9,921) | ||||
Payments of loans and financings | (251,044) | (542,983) | ||||
Prepayment of fair value debt | (90,512) | |||||
Premium paid on bonds repurchase | (214,530) | |||||
Foreign exchange effects | (21,066) | (45,295) | ||||
Changes in the Company's credit risk of the financial liability (i) | [1] | 5,066 | 787 | |||
Fair value of loans and financings (i) | [2] | (10,784) | 8,058 | |||
"Write off of fair value of loans and financings" | [3] | (8,596) | ||||
Interest accrual | 113,456 | 107,532 | ||||
Premium paid on bonds repurchase | (14,481) | |||||
Interest paid on loans and financings | (121,112) | (69,906) | ||||
Balance at the end of the year | $ 1,699,315 | $ 102,042 | 1,699,315 | 2,024,314 | 1,508,557 | |
Fair value measurement liabilities | 5,066 | |||||
Fair value of loans and financings | 10,784 | 9,140 | ||||
Loans and financings | 1,699,315 | 102,042 | 1,699,315 | $ 2,024,314 | $ 1,508,557 | |
Repayments of non-curret borrowings | 92,902 | |||||
Other financial items net [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Fair value of loans and financings | 8,596 | |||||
Other financial items | $ 544 | |||||
Nexa peru [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Fair value measurement liabilities | $ 5,188 | |||||
Fair value of loans and financings | 12,228 | |||||
Brazilian export credit note [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Fair value measurement liabilities | 122 | |||||
Fair value of loans and financings | $ 1,444 | |||||
[1] | On June 30, 2021, NEXA had two debt contracts measured at fair value through profit or loss, of which one was prepaid in July 2021. In 2021, the Company’s credit risk decreased, in comparison to 2020, mainly due to the normalization of its operations, with a consequent increase in the fair value of these debts in USD 5,066 5,188 122 | |||||
[2] | During the year, the Company recognized a gain in the income statement of USD 10,784 12,228 1,444 | |||||
[3] | As mentioned above, on July 9, the Company prepaid its term loan debt, together with the respective SWAP contract. The carrying amount of the debt at the date of prepayment was USD 102,042 92,902 9,140 8,596 544 |
Schedule of maturity profile of
Schedule of maturity profile of the loans and financings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | $ 1,699,315 | $ 102,042 | $ 2,024,314 | $ 1,508,557 |
Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 46,713 | |||
Later than ten years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 1,306,861 | |||
Later than one year and not later than two years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 148,212 | |||
Later than two years and not later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 22,371 | |||
Later than three years and not later than four years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 155,491 | |||
Later than four years and not later than five years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 19,667 | |||
Eurobonds u s d [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 1,338,334 | 13,389,720 | ||
Eurobonds u s d [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 20,081 | |||
Eurobonds u s d [member] | Later than five years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 126,370 | |||
Eurobonds u s d [member] | Later than ten years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 1,191,883 | |||
Debt with brazilian national bank for economic and social development [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 215,801 | 1,798,280 | ||
Debt with brazilian national bank for economic and social development [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 18,721 | |||
Debt with brazilian national bank for economic and social development [member] | Later than ten years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 112,718 | |||
Debt with brazilian national bank for economic and social development [member] | Later than one year and not later than two years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 21,381 | |||
Debt with brazilian national bank for economic and social development [member] | Later than two years and not later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 22,336 | |||
Debt with brazilian national bank for economic and social development [member] | Later than three years and not later than four years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 21,429 | |||
Debt with brazilian national bank for economic and social development [member] | Later than four years and not later than five years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 19,216 | |||
Export credit note [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 135,077 | 2,342,210 | ||
Export credit note [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 1,466 | |||
Export credit note [member] | Later than three years and not later than four years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 133,611 | |||
Debentures [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 4,916 | 103,880 | ||
Debentures [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 4,916 | |||
Other borrowings [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 5,187 | $ 471,700 | ||
Other borrowings [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 1,529 | |||
Other borrowings [member] | Later than ten years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 2,260 | |||
Other borrowings [member] | Later than one year and not later than two years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 461 | |||
Other borrowings [member] | Later than two years and not later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 35 | |||
Other borrowings [member] | Later than three years and not later than four years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | 451 | |||
Other borrowings [member] | Later than four years and not later than five years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | $ 451 |
Schedule of analysis of the l_2
Schedule of analysis of the loans and financings, by currency (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||
Current | $ 46,713 | $ 146,002 | ||
Non-current | 1,652,602 | 1,878,312 | ||
Loans and financings | 1,699,315 | $ 102,042 | 2,024,314 | $ 1,508,557 |
United States of America, Dollars | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 20,281 | |||
Non-current | 1,406,681 | |||
Loans and financings | 1,426,962 | 1,569,942 | ||
Brazil, Brazil Real | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 25,073 | |||
Non-current | 245,498 | |||
Loans and financings | 270,571 | 451,634 | ||
Other currencies [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 1,359 | |||
Non-current | 423 | |||
Loans and financings | $ 1,782 | $ 2,738 |
Schedule of analysis of the l_3
Schedule of analysis of the loans and financings, by index (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||
Current | $ 46,713 | $ 146,002 | ||
Non-current | 1,652,602 | 1,878,312 | ||
Loans and financings | 1,699,315 | $ 102,042 | 2,024,314 | $ 1,508,557 |
Fixed interest rate [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 21,530 | |||
Non-current | 1,318,717 | |||
Loans and financings | 1,340,247 | 1,456,090 | ||
Ifrs london interbank offered rate libor [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 248 | |||
Non-current | 88,429 | |||
Loans and financings | 88,677 | 230,574 | ||
Brazilian national monetary council and brazil expected inflation plus spread tlp [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 8,559 | |||
Non-current | 161,765 | |||
Loans and financings | 170,324 | 132,280 | ||
Brazilian national bank for economic and social development brazilian system for clearance and custody [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 6,613 | |||
Non-current | 23,067 | |||
Loans and financings | 29,680 | 30,683 | ||
Interbank deposit certificate rate cdi [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 6,134 | |||
Non-current | 45,182 | |||
Loans and financings | 51,316 | 156,683 | ||
Long term interest rate set by brazilian national monetary council [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 3,629 | |||
Non-current | 15,442 | |||
Loans and financings | $ 19,071 | 17,962 | ||
Other floating interest rates [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loans and financings | $ 42 |
Loans and financings (Details N
Loans and financings (Details Narrative) | Jul. 31, 2021USD ($) | Jul. 28, 2021USD ($) | Jul. 09, 2021USD ($) | Jul. 09, 2021BRL (R$) | Jun. 28, 2021USD ($) | Jun. 23, 2021USD ($) | Jun. 23, 2021BRL (R$) | Jun. 18, 2021BRL (R$) | May 28, 2021USD ($) | May 28, 2021BRL (R$) | Jan. 23, 2021USD ($) | Jan. 23, 2021BRL (R$) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021BRL (R$) | Jul. 09, 2021BRL (R$) | Jan. 22, 2021USD ($) | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Current borrowings and current portion of non-current borrowings | $ 46,713,000 | $ 146,002,000 | |||||||||||||||||
Accrued Intrest | (96,565,000) | (97,422,000) | $ (67,369,000) | ||||||||||||||||
Repayments of noncurrent borrowings | $ 92,902,000 | ||||||||||||||||||
Repayment of principal | 251,044,000 | 542,983,000 | 19,437,000 | ||||||||||||||||
Payment of accrued interest | 1,290,000 | 1,234,000 | |||||||||||||||||
Amount drawn down | 59,771,000 | 1,296,496,000 | 106,229,000 | ||||||||||||||||
Loans and financings | 102,042,000 | 1,699,315,000 | 2,024,314,000 | $ 1,508,557,000 | |||||||||||||||
Export credit note one [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Current borrowings and current portion of non-current borrowings | $ 42,969,000 | R$ 245000000 | $ 250,000,000 | ||||||||||||||||
Interest income on impaired financial assets accrued | $ 50,077 | $ 294,000 | R$ 2974000 | $ 51,105,000 | R$ 12905000 | ||||||||||||||
Global financial institution [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Notional amount | 90,512,000 | R$ 477000000 | |||||||||||||||||
Accrued Intrest | 2,389,000 | R$ 12592000 | |||||||||||||||||
Global financial institution [member] | Swaps1 [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of noncurrent borrowings | $ 12,398,000 | ||||||||||||||||||
Export credit note [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Current borrowings and current portion of non-current borrowings | 14,660,000 | ||||||||||||||||||
Repayment of principal | $ 80,000,000 | ||||||||||||||||||
Payment of accrued interest | $ 211,000 | ||||||||||||||||||
Loans and financings | 135,077,000 | 2,342,210,000 | |||||||||||||||||
Bndes may2021 loan agreement [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Amount drawn down | $ 30,608,000 | R$ 160000000 | |||||||||||||||||
Bndes june2021 loan agreement [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Amount drawn down | R$ 101300000 | $ 20,136,000 | |||||||||||||||||
BNDES disbursements [member] | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Maximum amount of borrowing capacity | R$ | R$ 750000 | ||||||||||||||||||
Borrowings | 736,300,000 | ||||||||||||||||||
Loans and financings | $ 50,744,000 | $ 87,664,000 | R$ 261300 | R$ 475000000 |
Schedule of trade payables (Det
Schedule of trade payables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other payables [abstract] | ||
Trade payables | $ 407,007 | $ 360,235 |
Related parties - note 20 | 4,811 | 9,887 |
Trade payables | $ 411,818 | $ 370,122 |
Summary of changes in asset ret
Summary of changes in asset retirement and environmental obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | $ 30,896 | $ 26,070 |
Payments | (5,327) | (1,721) |
Foreign exchange effect | (2,385) | (5,147) |
Interest accrual | 746 | 1,389 |
Balance at the end of the year | 36,828 | 30,896 |
Current liabilities | 31,953 | 33,095 |
Non-current liabilities | 232,197 | 242,951 |
Provision for decommissioning, restoration and rehabilitation costs [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 227,189 | |
Payments | (19,932) | |
Foreign exchange effect | (4,848) | |
Interest accrual | 7,051 | |
Remeasurement discount rate | 12,250 | |
Balance at the end of the year | 221,710 | 227,189 |
Current liabilities | 20,826 | |
Non-current liabilities | 200,884 | |
Other environment related provision [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 48,857 | |
Payments | (6,323) | |
Foreign exchange effect | (3,003) | |
Interest accrual | 2,616 | |
Remeasurement discount rate | 293 | |
Balance at the end of the year | 42,440 | 48,857 |
Current liabilities | 11,127 | |
Non-current liabilities | 31,313 | |
Asset Retirement Obligation And Environmental Obligations [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 276,046 | 293,828 |
Payments | (26,255) | (10,426) |
Foreign exchange effect | (7,851) | (37,145) |
Interest accrual | 9,667 | 14,015 |
Remeasurement discount rate | 12,543 | 15,774 |
Balance at the end of the year | 264,150 | 276,046 |
Current liabilities | 31,953 | 33,095 |
Non-current liabilities | $ 232,197 | $ 242,951 |
Schedule of provisions (Details
Schedule of provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Balance at the beginning of the year | $ 30,896 | $ 26,070 |
Additions | 33,305 | 24,052 |
Reversals | (20,132) | (13,140) |
Interest accrual | 746 | 1,389 |
Payments | (5,327) | (1,721) |
Foreign exchange effect | (2,385) | (5,147) |
Other | (275) | (607) |
Balance at the end of the year | 36,828 | 30,896 |
Legal proceedings provision tax [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Balance at the beginning of the year | 6,234 | |
Additions | 9,943 | |
Reversals | (8,572) | |
Interest accrual | (418) | |
Payments | (2,162) | |
Foreign exchange effect | (448) | |
Other | (43) | |
Balance at the end of the year | 4,534 | 6,234 |
Legal Proceedings Provision Labor [Member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Balance at the beginning of the year | 15,208 | |
Additions | 12,328 | |
Reversals | (7,012) | |
Interest accrual | 1,131 | |
Payments | (1,739) | |
Foreign exchange effect | (1,087) | |
Other | (150) | |
Balance at the end of the year | 18,679 | 15,208 |
Legal proceedings provision civil [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Balance at the beginning of the year | 785 | |
Additions | 1,676 | |
Reversals | (754) | |
Interest accrual | 40 | |
Payments | (935) | |
Foreign exchange effect | (30) | |
Other | (82) | |
Balance at the end of the year | 700 | 785 |
Legal proceedings provision environmental [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Balance at the beginning of the year | 8,669 | |
Additions | 9,358 | |
Reversals | (3,794) | |
Interest accrual | (7) | |
Payments | (491) | |
Foreign exchange effect | (820) | |
Other | ||
Balance at the end of the year | $ 12,915 | $ 8,669 |
Schedule of provisions and judi
Schedule of provisions and judicial deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Carrying amount | $ 36,828 | $ 30,896 | $ 26,070 |
Legal proceedings provision tax [member] | |||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Judicial deposits | (1,528) | (1,594) | |
Provision | 6,062 | 7,828 | |
Carrying amount | 4,534 | 6,234 | |
Legal Proceedings Provision Labor [Member] | |||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Judicial deposits | (2,752) | (2,797) | |
Provision | 21,431 | 18,005 | |
Carrying amount | 18,679 | 15,208 | |
Legal proceedings provision civil [member] | |||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Judicial deposits | (751) | (722) | |
Provision | 1,451 | 1,507 | |
Carrying amount | 700 | 785 | |
Legal proceedings provision environmental [member] | |||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Provision | 12,915 | 8,669 | |
Carrying amount | 12,915 | 8,669 | |
Legal proceedings provision [member] | |||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | |||
Judicial deposits | (5,031) | (5,113) | |
Provision | 41,859 | 36,009 | |
Carrying amount | $ 36,828 | $ 30,896 |
Schedule of contingent liabilit
Schedule of contingent liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | $ 134,804 | $ 163,670 |
Legal proceedings contingent liability tax [member] | ||
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | 156,779,000 | 182,380,000 |
Legal proceedings contingent liability labor [member] | ||
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | 36,215,000 | 33,205,000 |
Legal proceedings contingent liability environmental [member] | ||
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | 14,617,000 | 17,502,000 |
Legal proceedings contingent liability civil [member] | ||
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | 97,027,000 | 85,390,000 |
Legal proceedings contingent liability [member] | ||
Disclosure of contingent liabilities [line items] | ||
Amount under litigation considered as a possible loss | $ 304,639,000 | $ 318,477,000 |
Provisions (Details Narrative)
Provisions (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Judicial deposits outstanding | $ 5,446,000 | $ 5,566,000 |
Estimate of financial effect of contingent liability | 134,804 | $ 163,670 |
Income tax over transfers of shares in peru [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 91,781,000 | |
Compensation for exploration for mineral resources [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 10,176,000 | |
Indirect taxes on sales [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 3,491,000 | |
Value added tax on sales of certain energy contracts [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 11,498,000 | |
Tax rate applied to interstate sales for manufactured goods with imported content [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 3,131,000 | |
Credits to purchases of property plant and equipment [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 6,075,000 | |
Indemnity lawsuits alleging property damage contingent civil liabilities [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 15,456,000 | |
Alleged pollution of sao francisco river contingent environmental liability [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 67,385,000 | |
Peruvian environmental enforcemenrt agency [member] | ||
ReconciliationOfChangesInOtherProvisionsLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | $ 6,934,000 |
The changes in the contractual
The changes in the contractual obligation are shown below (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contract liabilities [abstract] | ||
Balance at the beginning of the year | $ 166,025 | $ 180,522 |
Revenues recognition upon ore delivery | (45,309) | (28,492) |
Increase (decrease) through cumulative catch-up adjustments to revenue arising from change in measure of progress, contract liabilities | 19,580 | 7,813 |
Accretion for the year | 6,936 | 6,182 |
Balance at the end of year | 147,232 | 166,025 |
Current | 33,156 | 27,132 |
Non-current | $ 114,076 | $ 138,893 |
Contractual obligations (Detail
Contractual obligations (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Contract liabilities [abstract] | |
Upfront payment for silver streaming arrangement | $ 250,000 |
Confirming Payables (Details Na
Confirming Payables (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Confirming Payables | |||
Extended supplier payment terms | 180 days | ||
Period during which supplier has right to request payment from bank | 180 days | ||
Proportion of ownership interest of suppliers | 90.00% | ||
Amount of interests paid | $ 1,290 | $ 1,234 | |
Confirming payables | $ 232,860 | $ 145,295 | $ 82,770 |
The changes in the accumulated
The changes in the accumulated other comprehensive income are as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2021 | $ 1,621,244 | $ 2,482,186 | $ 2,858,483 | |
Translation adjustment on foreign investments | (64,575) | (138,840) | (21,115) | |
Cash flow hedge accounting | 327 | 3 | ||
Changes in fair value of financial liabilities that relate to changes in the Company's own credit risk | (7,441) | (875) | ||
Changes in fair value of investments in equity instruments | (2,632) | |||
At December 31, 2021 | 1,644,280 | 1,621,244 | 2,482,186 | $ 2,858,483 |
Attributable to NEXA's shareholders | 1,386,273 | 1,377,445 | ||
Attributable to non-controlling interests | 258,007 | 243,799 | ||
Reserve of cash flow hedges including non controlling interest [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2021 | (269,743) | (130,903) | (109,788) | |
Translation adjustment on foreign investments | (64,575) | (138,840) | (21,115) | |
At December 31, 2021 | (334,318) | (269,743) | (130,903) | (109,788) |
Reserve of cash flow hedges including non controlling interest [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2021 | 1,266 | 1,263 | 384 | |
Cash flow hedge accounting | 3 | 879 | ||
At December 31, 2021 | 1,593 | 1,266 | 1,263 | 384 |
Accumulated other comprehensive income including non controlling interest [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2021 | (269,352) | (129,640) | (109,404) | |
Cash flow hedge accounting | 327 | 879 | ||
At December 31, 2021 | (343,673) | (269,352) | $ (129,640) | $ (109,404) |
Attributable to NEXA's shareholders | (299,995) | |||
Attributable to non-controlling interests | (43,678) | |||
Reserve of change in fair value of financial liability attributable to change in credit risk of liability [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2021 | (875) | |||
Changes in fair value of financial liabilities that relate to changes in the Company's own credit risk | (7,441) | (875) | ||
Changes in fair value of investments in equity instruments | (2,632) | |||
At December 31, 2021 | $ (10,948) | $ (875) |
Schedule of earnings per share
Schedule of earnings per share information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reserves within equity [abstract] | |||
Net (loss) income for the year attributable to NEXA's shareholders | $ 114,332 | $ (559,247) | $ (145,135) |
Weighted average number of outstanding common shares | 132,439 | 132,439 | 132,622 |
Basic and diluted (losses) earnings per share - USD | $ 0.86 | $ (4.22) | $ (1.09) |
Schedule of Summarised financia
Schedule of Summarised financial information of the non-controlling interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Current assets | $ 1,472,809 | $ 1,727,184 | |
Current liabilities | 989,282 | 876,559 | |
Non-current assets | 3,432,027 | 3,337,042 | |
Non-current liabilities | 2,271,274 | 2,566,423 | |
Accumulated non-controlling interests | 258,007 | 243,799 | |
Net revenues | 2,622,110 | 1,950,929 | $ 2,332,715 |
Net income (loss) for the year | 156,087 | (652,506) | (157,516) |
Other comprehensive loss | (74,321) | (139,712) | (20,236) |
Total comprehensive income (loss) for the year | 81,766 | (792,218) | (177,752) |
Comprehensive (loss) income attributable to non-controlling interests | 37,938 | (110,086) | (5,299) |
Net cash provided by (used in) operating activities | 492,985 | 291,700 | 122,823 |
Net cash (used in) provided by financing activities | (344,134) | 451,615 | (119,289) |
(Decrease) increase in cash and cash equivalents | (342,346) | 387,545 | $ (334,320) |
Nexa resources peru s.a.a. [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 680,609 | 590,948 | |
Current liabilities | 288,736 | 225,424 | |
Current net assets | 391,872 | 365,524 | |
Non-current assets | 1,345,420 | 1,472,015 | |
Non-current liabilities | 566,059 | 745,179 | |
Non-current net assets | 779,361 | 726,836 | |
Net assets | 1,171,233 | 1,092,360 | |
Accumulated non-controlling interests | 213,997 | 201,964 | |
Net revenues | 828,571 | 541,099 | |
Net income (loss) for the year | 94,706 | (207,866) | |
Other comprehensive loss | (940) | (5,575) | |
Total comprehensive income (loss) for the year | 93,766 | (213,441) | |
Comprehensive (loss) income attributable to non-controlling interests | 12,991 | (99,500) | |
Net cash provided by (used in) operating activities | 179,842 | 31,370 | |
Net cash used in investing activities | (93,632) | (48,883) | |
Net cash (used in) provided by financing activities | (92,905) | (113,415) | |
(Decrease) increase in cash and cash equivalents | (8,542) | (132,544) | |
Pollarix s. a. [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 23,070 | 14,537 | |
Current liabilities | 13,279 | 7,699 | |
Current net assets | 9,791 | 6,838 | |
Non-current assets | 53,516 | 48,831 | |
Non-current net assets | 53,516 | 48,831 | |
Net assets | 63,307 | 55,669 | |
Accumulated non-controlling interests | 44,011 | 41,835 | |
Net revenues | 20,996 | 8,591 | |
Net income (loss) for the year | 39,136 | 26,943 | |
Other comprehensive loss | (2,977) | (28,548) | |
Total comprehensive income (loss) for the year | 36,159 | (1,605) | |
Comprehensive (loss) income attributable to non-controlling interests | 24,947 | (10,586) | |
Dividends paid to non-controlling interests | 23,730 | 5,332 | |
Net cash provided by (used in) operating activities | (8,522) | (82) | |
Net cash (used in) provided by financing activities | 8,997 | (868) | |
(Decrease) increase in cash and cash equivalents | $ 475 | $ (950) |
Shareholders_ equity (Details N
Shareholders’ equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Mar. 11, 2021 | Jun. 04, 2020 | Sep. 20, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reserves within equity [line items] | |||||||
Capital | $ 132,439 | $ 132,439 | $ 132,439 | ||||
Capital, shares | 132,439 | 132,439 | |||||
Par value ($ per share) | $ 1 | $ 1 | |||||
Authorized, but unissued and unsubscribed share capital | $ 231,925 | $ 231,925 | |||||
Maximum amount of shares authorized to repurchase under buy back program | $ 30,000 | ||||||
Period of time for repurchase of shares under buy back program | 12 months | ||||||
Treasury shares | $ 9,435 | ||||||
Dividends declared to non-controlling interests | (23,730) | $ (5,332) | $ (49,556) | ||||
Nexa resources s.a. [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Dividends paid | $ 35,000 | ||||||
Pollarix s. a. [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Dividends declared to non-controlling interests | $ 23,730 | ||||||
Parent [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Percentage of equity interest held by the controlling shareholder (as a percent) | 64.68% | 64.68% |
Impairment of non-current ass_2
Impairment of non-current assets (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of information for cash-generating units [abstract] | |
Impairment loss | $ 557,497 |
Long-term commitments (Details
Long-term commitments (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Commitments | ||
Contracted capital commitments for Aripuana project | $ 75,250 | $ 156,893 |
Potential disbursements after September 2024 in case minimum investment levels are not met | $ 102,900 |
Events after the reporting pe_2
Events after the reporting period (Details Narrative) - Events after reporting period [member] - USD ($) | Feb. 15, 2022 | Jan. 21, 2022 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Cash distribution paid | $ 50,000 | |
Offtake agreement [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Sales of produced copper for a 5 year period. | 100.00% | |
Offtake agreement | 5 years |