Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
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$1.00 |
Trading Symbol | NEXA |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 132,438,611 |
Contact Personnel Name | José Carlos del Valle |
ICFR Auditor Attestation Flag | true |
Auditor Firm Id | 1351 |
Auditor Name | PricewaterhouseCoopers Auditores Independentes Ltda |
Auditor Location | Curitiba, Brazil |
Consolidated income statement
Consolidated income statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net revenues | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 |
Cost of sales | (2,395,180) | (1,989,019) | (1,576,159) |
Gross profit | 638,810 | 633,091 | 374,770 |
Operating expenses | |||
Selling, general and administrative | (145,543) | (133,803) | (139,391) |
Mineral exploration and project evaluation | (98,862) | (85,043) | (57,201) |
Impairment loss of long-lived assets | (32,512) | (557,497) | |
Other income and expenses, net | (2,674) | 31,948 | (19,164) |
Total operating expenses | (279,591) | (186,898) | (773,253) |
Operating income (loss) | 359,219 | 446,193 | (398,483) |
Share in the results of associates | 1,885 | ||
Total from associates equity | 1,885 | ||
Net financial results | |||
Financial income | 25,018 | 11,472 | 11,168 |
Financial expenses | (168,694) | (142,275) | (159,759) |
Other financial items, net | 9,949 | (6,099) | (129,584) |
Net financial results | (133,727) | (136,902) | (278,175) |
Income (loss) before income tax | 227,377 | 309,291 | (676,658) |
Income tax | (150,983) | (153,204) | 24,152 |
Net income (loss) for the year | 76,394 | 156,087 | (652,506) |
Attributable to NEXA's shareholders | 49,101 | 114,332 | (559,247) |
Attributable to non-controlling interests | $ 27,293 | $ 41,755 | $ (93,259) |
Weighted average number of outstanding shares – in thousands | 132,439 | 132,439 | 132,439 |
Basic and diluted earnings (losses) per share – USD | $ 0.37 | $ 0.86 | $ (4.22) |
Consolidated statement of compr
Consolidated statement of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net income (loss) for the year | $ 76,394 | $ 156,087 | $ (652,506) |
Other comprehensive loss, net of income tax - items that will not be reclassified to the income statement | |||
Cash flow hedge accounting | (1,329) | 488 | (98) |
Deferred income tax | 998 | (161) | 101 |
Translation adjustment of foreign subsidiaries | 65,243 | (64,575) | (138,840) |
Total other comprehensive income (loss), net of income tax, items that can be reclassified to the income statement | 64,912 | (64,248) | (138,837) |
Changes in fair value of financial liabilities related to changes in the Company’s own credit risk | 521 | (5,066) | (787) |
Deferred income tax | (178) | (2,375) | (88) |
Changes in fair value of investments in equity instruments | (3,608) | (2,632) | |
Total other comprehensive income (loss), net of income tax, items that will not be reclassified to the income statement | (3,265) | (10,073) | (875) |
Other comprehensive income (loss) for the year, net of income tax | 61,647 | (74,321) | (139,712) |
Total comprehensive income (loss) for the year | 138,041 | 81,766 | (792,218) |
Attributable to NEXA’s shareholders | 105,972 | 43,828 | (682,132) |
Attributable to non-controlling interests | $ 32,069 | $ 37,938 | $ (110,086) |
Consolidated balance sheet
Consolidated balance sheet - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 497,826 | $ 743,817 |
Financial investments | 18,062 | 19,202 |
Other financial instruments | 7,380 | 16,292 |
Trade accounts receivables | 223,740 | 231,174 |
Inventory | 395,197 | 372,502 |
Recoverable income tax | 2,455 | 8,703 |
Other assets | 75,486 | 81,119 |
Total current assets | 1,220,146 | 1,472,809 |
Non-current assets | ||
Investments in equity instruments | 7,115 | 3,723 |
Other financial instruments | 63 | 102 |
Deferred income tax | 166,983 | 168,205 |
Recoverable income tax | 4,914 | 4,223 |
Other assets | 134,474 | 98,584 |
Investments in associates | 38,990 | |
Property, plant and equipment | 2,295,275 | 2,087,730 |
Intangible assets | 1,016,927 | 1,056,771 |
Right-of-use assets | 6,895 | 12,689 |
Total non-current assets | 3,671,636 | 3,432,027 |
Total assets | 4,891,782 | 4,904,836 |
Current liabilities | ||
Loans and financings | 50,840 | 46,713 |
Lease liabilities | 3,661 | 16,246 |
Other financial instruments | 11,435 | 22,684 |
Trade payables | 413,856 | 411,818 |
Confirming payables | 216,392 | 232,860 |
Dividends payable | 7,922 | 11,441 |
Asset retirement and environmental obligations | 23,646 | 31,953 |
Contractual obligations | 26,188 | 33,156 |
Salaries and payroll charges | 79,078 | 76,031 |
Tax liabilities | 40,610 | 65,063 |
Other liabilities | 25,136 | 41,317 |
Total current liabilities | 898,764 | 989,282 |
Non-current liabilities | ||
Loans and financings | 1,618,419 | 1,652,602 |
Lease liabilities | 1,360 | 3,393 |
Other financial instruments | 20,416 | 241 |
Asset retirement and environmental obligations | 242,673 | 232,197 |
Provisions | 43,897 | 36,828 |
Deferred income tax | 199,499 | 208,583 |
Contractual obligations | 105,972 | 114,076 |
Other liabilities | 50,528 | 23,354 |
Total non-current liabilities | 2,282,764 | 2,271,274 |
Total liabilities | 3,181,528 | 3,260,556 |
Shareholders’ equity | ||
Attributable to NEXA’s shareholders | 1,442,245 | 1,386,273 |
Attributable to non-controlling interests | 268,009 | 258,007 |
Total shareholders' equity | 1,710,254 | 1,644,280 |
Total liabilities and shareholders’ equity | $ 4,891,782 | $ 4,904,836 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of cash flows [abstract] | |||
Income (loss) before income tax | $ 227,377,000 | $ 309,291,000 | $ (676,658,000) |
Impairment loss of long-lived assets | 32,512,000 | 557,497,000 | |
Depreciation and amortization | 290,937,000 | 258,711,000 | 243,925,000 |
Share in the results of associates | (1,885,000) | ||
Interest and foreign exchange effects | 126,545,000 | 143,496,000 | 157,806,000 |
Loss on sale of property, plant and equipment and intangible assets | 698,000 | 4,891,000 | 2,268,000 |
Changes in accruals and other assets impairments | 84,393,000 | 21,325,000 | 13,159,000 |
Changes in fair value of loans and financings | 1,472,000 | (19,380,000) | 8,058,000 |
Changes in fair value of derivative financial instruments | (14,947,000) | 26,408,000 | 7,809,000 |
Changes in fair value of offtake agreement | (24,267,000) | ||
Contractual obligations | (20,873,000) | (25,729,000) | (20,679,000) |
GSF recovered costs | (19,407,000) | ||
Decrease (increase) in assets | |||
Trade accounts receivables | 2,223,000 | (9,375,000) | (68,896,000) |
Inventory | (75,071,000) | (102,068,000) | 8,883,000 |
Other financial instruments | 8,648,000 | (14,936,000) | (7,809,000) |
Other assets | (72,607,000) | (47,312,000) | 30,557,000 |
Increase (decrease) in liabilities | |||
Trade payables | (32,476,000) | 44,880,000 | 21,589,000 |
Confirming payables | (16,348,000) | 87,565,000 | 62,525,000 |
Other liabilities | (17,448,000) | 2,759,000 | 58,481,000 |
Cash provided by operating activities | 498,883,000 | 661,119,000 | 398,515,000 |
Interest paid on loans and financings | (109,263,000) | (121,112,000) | (69,906,000) |
Interest paid on lease liabilities | (994,000) | (1,415,000) | (1,385,000) |
Premium paid on bonds repurchase | (3,277,000) | (14,481,000) | |
Income tax paid | (118,719,000) | (45,607,000) | (21,043,000) |
Net cash provided by operating activities | 266,630,000 | 492,985,000 | 291,700,000 |
Cash flows from investing activities | |||
Additions of property, plant and equipment | (382,468,000) | (485,204,000) | (323,688,000) |
Additions of intangible assets | (4,595,000) | ||
Net sales of financial investments | 10,647,000 | 20,076,000 | (47,522,000) |
Proceeds from the sale of property, plant and equipment | 751,000 | 2,210,000 | 2,014,000 |
Investments in equity instruments | (7,000,000) | (6,356,000) | |
Acquisition of additional shares in associates | (4,136,000) | ||
Dividends received from associates | 7,867,000 | ||
Net cash used in investing activities | (378,934,000) | (469,274,000) | (369,196,000) |
Cash flows from financing activities | |||
New loans and financings | 95,621,000 | 59,771,000 | 1,296,496,000 |
Debt issue costs | (63,000) | (178,000) | (9,921,000) |
Payments of loans and financings | (24,639,000) | (251,044,000) | (542,983,000) |
Prepayment of fair value debt | (90,512,000) | ||
Bonds repurchase | (128,470,000) | (214,530,000) | |
Payments of lease liabilities | (17,091,000) | (9,827,000) | (9,100,000) |
Dividends paid | (68,466,000) | (52,344,000) | (55,964,000) |
Payments of share premium | (6,126,000) | ||
Dividends not withdrawn | 1,009,000 | ||
Capital reduction of subsidiary – non-controlling interests | (13,392,000) | ||
Net cash (used in) provided by financing activities | (149,234,000) | (344,134,000) | 451,615,000 |
Foreign exchange effects on cash and cash equivalents | 15,547,000 | (21,923,000) | (16,070,000) |
Other high liquid short term investments | 29,496,000 | ||
(Decrease) increase in cash and cash equivalents | (245,991,000) | (342,346,000) | 387,545,000 |
Cash and cash equivalents at the beginning of the year | 743,817,000 | 1,086,163,000 | 698,618,000 |
Cash and cash equivalents at the end of the year | 497,826,000 | 743,817,000 | 1,086,163,000 |
Additions to right-of-use assets | (2,018,000) | (5,174,000) | (5,785,000) |
Additions to intangible assets related to GSF recovered costs | (19,407,000) | ||
Write-offs of property, plant and equipment | 1,449,000 | 3,343,000 | |
Additions to intangible assets related to offtake agreement and other intangibles | (52,934,000) | ||
Increase in investment in associates | (32,456,000) | ||
Derecognition of Nexa’s share of Enercan’s property, plant and equipment, intangible assets and financial investments | 46,858,000 | ||
(Decrease) increase in dividends payable | 4,961,000 | 6,885,000 | (1,418,000) |
Decrease in loans and financings at fair value | $ (14,314,000) |
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, 2022 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 income for the year | (122,885) | (122,885) | (16,827) | (139,712) | |||||
Total comprehensive income for the year | (559,247) | (122,885) | (682,132) | (110,086) | (792,218) | ||||
Dividends distribution to NEXA's shareholders – USD 0.33 per share – note 30 (g) | (50,000) | (50,000) | (50,000) | ||||||
Cancellation of 881,902 treasury shares acquired for USD 9,455 | (882) | 9,455 | (8,573) | ||||||
Dividends distribution to non-controlling interests | (5,332) | (5,332) | |||||||
Capital reduction of subsidiary - non-controlling interests | (13,392) | (13,392) | |||||||
Total contributions by and distributions to shareholders | (882) | 9,455 | (58,573) | (50,000) | (18,724) | (68,724) | |||
At December 31, 2022 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 income for the year | (70,504) | (70,504) | (3,817) | (74,321) | |||||
Total comprehensive income 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 0.33 per share – note 30 (g) | (35,000) | (35,000) | (35,000) | ||||||
Dividends distribution to non-controlling interests | (23,730) | (23,730) | |||||||
Total contributions by and distributions to shareholders | (45,965) | 10,965 | (35,000) | (23,730) | (58,730) | ||||
At December 31, 2022 at Dec. 31, 2021 | 132,438 | 1,043,755 | 1,245,418 | (746,308) | (289,030) | 1,386,273 | 258,007 | 1,644,280 | |
IfrsStatementLineItems [Line Items] | |||||||||
Net income for the year | 49,101 | 49,101 | 27,293 | 76,394 | |||||
Other comprehensive income for the year | 56,871 | 56,871 | 4,776 | 61,647 | |||||
Total comprehensive income for the year | 49,101 | 56,871 | 105,972 | 32,069 | 138,041 | ||||
Dividends distribution to NEXA's shareholders – USD 0.33 per share – note 30 (g) | (43,874) | (43,874) | (43,874) | ||||||
Share premium distribution to NEXA's shareholders – USD 0.05 per share – note 30 (g) | (6,126) | (6,126) | (6,126) | ||||||
Dividends distribution to non-controlling interests | (23,075) | (23,075) | |||||||
Other equity movements | 1,008 | 1,008 | |||||||
Total distributions to shareholders | (6,126) | (43,874) | (50,000) | (22,067) | (72,067) | ||||
At December 31, 2022 at Dec. 31, 2022 | $ 132,438 | $ 1,037,629 | $ 1,245,418 | $ (741,081) | $ (232,159) | $ 1,442,245 | $ 268,009 | $ 1,710,254 |
Consolidated statement of cha_2
Consolidated statement of changes in shareholder's equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |||
Dividend distribution per share | $ 0.33 | $ 0.26 | $ 0.38 |
Number of treasury shares cancelled | 881,902 | ||
The amount of treasury stock cancelled during the period | $ 9,455 | ||
Share premium distribution per share | $ 0.05 |
General information
General information | 12 Months Ended |
Dec. 31, 2022 | |
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”). 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 include 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 currently continues the ramp-up process at its third polymetallic mine in Aripuanã, Brazil. The Company also owns and operates a zinc smelter in Peru and two zinc smelters in Brazil. NEXA’s majority shareholder is Votorantim S.A. (“VSA”), which holds 64.68 |
Information by business segment
Information by business segment | 12 Months Ended |
Dec. 31, 2022 | |
Information By Business Segment | |
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, mainly analyzing performance from the production obtained in the operations. The Company has identified two operating segments: • Mining: consists of six long-life polymetallic mines, three located in the Central Andes of Peru and three located in Brazil (two in the state of Minas Gerais and one in the state of Mato Grosso). 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 net 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. This measure is presented to provide information to investors and other stakeholders about the Company’s ability to generate cash flow from its core operations. During December, 2022, the Company updated its definition of Adjusted EBITDA as follows: 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; (vi) impairment and impairment reversals; (vii) (loss) gain on sale of long-lived assets; (viii) write-offs of long-lived assets; and (ix) remeasurement in estimates of asset retirement obligations. 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. For comparative purposes, the related 2021 and 2020 amounts have also been adjusted following this updated definition. 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”, as shown in the tables below. These adjustments include reclassifications of certain overhead costs and revenues from Other income and expenses, net to Net Revenues, Cost of sales and/or Selling, general and administrative expenses. In 2022, the Company decided to stop reclassifying certain accounts to better approximate business segment information to the financial statements. These reclassifications included the effects of derivative financial instruments from Other income and expenses, net to Net revenues and Cost of sales. For comparative purposes, the related 2021 and 2020 amounts have also been reclassified. The Company uses customary market terms for intersegment sales. The Company’s corporate headquarters expenses are allocated to the operating segments to the extent they are included in the measures of performance used by the CODM. The presentation of segments results and reconciliation to income before income tax in the consolidated income statement is as follows: Schedule of segment results and reconciliation to (loss) income before income tax 2022 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,248,027 2,466,967 (683,583) 2,579 3,033,990 Cost of sales (905,241) (2,190,903) 683,583 17,381 (2,395,180) Gross profit 342,786 276,064 - 19,960 638,810 Selling, general and administrative (64,444) (60,435) - (20,664) (145,543) Mineral exploration and project evaluation (88,947) (9,915) - - (98,862) Impairment loss of long-lived assets (32,276) (236) - - (32,512) Other income and expenses, net (32,787) 43,049 - (12,936) (2,674) Operating income 124,332 248,527 - (13,640) 359,219 Depreciation and amortization 204,514 78,727 - 7,696 290,937 Miscellaneous adjustments 110,993 (825) - - 110,168 Adjusted EBITDA 439,839 326,429 - (5,944) 760,324 Change in fair value of offtake agreement (i) 24,267 Impairment loss of long-lived assets (32,512) Aripuaña’s pre-operating expenses and ramp-up impacts (ii) (87,540) Impairment of other assets (9,302) Loss on sale of long-lived assets (698) Remeasurement in estimates of asset retirement obligations 6,182 Remeasurement adjustment of streaming agreement (iii) (10,565) Miscellaneous adjustments (110,168) Depreciation and amortization (290,937) Share in the results of associates 1,885 Net financial results (133,727) Income before income tax 227,377 2021 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,165,584 2,021,787 (636,212) 70,951 2,622,110 Cost of sales (726,653) (1,842,704) 636,212 (55,874) (1,989,019) Gross profit 438,931 179,083 - 15,077 633,091 Selling, general and administrative (64,739) (51,635) - (17,429) (133,803) Mineral exploration and project evaluation (75,550) (9,493) - - (85,043) Other income and expenses, net (32,286) 70,874 - (6,640) 31,948 Operating income 266,356 188,829 - (8,992) 446,193 Depreciation and amortization 174,891 78,861 - 4,959 258,711 Miscellaneous adjustments 35,697 3,234 - - 38,931 Adjusted EBITDA 476,944 270,924 - (4,033) 743,835 Aripuaña’s pre-operating expenses (ii) (8,753) Loss on sale of long-lived assets (4,891) Remeasurement in estimates of asset retirement obligations (6,371) Remeasurement adjustment of streaming agreement (iii) (19,580) Other adjustments 664 Miscellaneous adjustments (38,931) Depreciation and amortization (258,711) Net financial results (136,902) Income before income tax 309,291 2020 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 748,462 1,547,398 (375,402) 30,471 1,950,929 Cost of sales (627,372) (1,310,206) 375,402 (13,983) (1,576,159) Gross profit 121,090 237,192 - 16,488 374,770 Selling, general and administrative (70,223) (54,021) - (15,147) (139,391) Mineral exploration and project evaluation (48,555) (5,466) - (3,180) (57,201) Impairment loss of long-lived assets (512,706) (44,791) - - (557,497) Other income and expenses, net (21,815) 8,831 - (6,180) (19,164) Operating (loss) income (532,209) 141,745 - (8,019) (398,483) Depreciation and amortization 159,984 82,650 - 1,291 243,925 Miscellaneous adjustments 527,582 45,893 - - 573,475 Adjusted EBITDA 155,357 270,288 - (6,728) 418,917 Impairment loss of long-lived assets (557,497) Aripuaña’s pre-operating expenses (ii) (1,885) Loss on sale of long-lived assets (2,268) Remeasurement in estimates of asset retirement obligations (4,012) Remeasurement adjustment of streaming agreement (iii) (7,813) Miscellaneous adjustments (573,475) Depreciation and amortization (243,925) Net financial results (278,175) Loss before income tax (676,658) (i) This amount represents the change in the fair value of the offtake agreement described in note 16, which is being measured at Fair value through profit and loss (“FVTPL”). This change in the fair value is a non-cash item and has been included in the Company’s Adjusted EBITDA calculation. |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Preparation Of Consolidated Financial Statements | |
Basis of preparation of the consolidated financial statements | (ii) These amounts include Aripuanã’s pre-operating expenses and ramp-up impacts; considering that these items do not reflect the Company’s normal operating activities, they have been adjusted from its EBITDA. For the year 2022, this amount includes USD 42,785 related to the idleness of Aripuanã mine’s and plant’s capacity (without depreciation), USD 8,916 related to other pre-operating expenses and USD 35,838 related to the provision of Aripuanã’s inventory to its net realizable value (without depreciation). For comparative purposes, the related 2021 and 2020 amounts have also been adjusted. (iii) This amount includes the annual remeasurement adjustment of the Company’s silver streaming revenues previously recognized given the changes in long-term prices and in the mine plan for the Cerro Lindo mining unit. This remeasurement is a non-cash item and has been included in the Company’s Adjusted EBITDA calculation. 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 other financial instruments) measured at fair value at the end of each reporting period. The consolidated financial statements of the Company for the year ended December 31, 2022, were approved for issue in accordance with a resolution of the Board of Directors on February 15, 2023. |
Principles of consolidation
Principles of consolidation | 12 Months Ended |
Dec. 31, 2022 | |
Principles Of Consolidation | |
Principles of consolidation | 4 Principles of consolidation The consolidated financial statements comprise the financial statements of NEXA and its subsidiaries. The main entities included in the consolidated financial statements are: Schedule of ownership percentages Percentage of shares Company Headquarter Activities 2022 2021 controls Subsidiaries Nexa Recursos Minerais S.A. "NEXA BR" 100 100 Directly Brazil Mining / Smelting Nexa Resources Cajamarquilla S.A. "NEXA CJM" 99.99 99.99 Directly Peru Smelting Nexa Resources US. Inc. 100 100 Directly United States Trading Exploraciones Chimborazo Metals & Mining 100 100 Directly Ecuador Holding and others 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 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 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 Joint-operations Campos Novos Energia S.A. - "Enercan" (ii) - 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. (ii) On November 17 th The following table shows the amounts in each balance sheet line that were derecognized since December 2022. Schedule of balance sheet Assets November 30, 2022 Current assets Cash and cash equivalents 1 Financial investments 8,260 Trade accounts receivables 9,137 Other assets 275 Total current assets 17,674 Non-current assets Deferred income tax 1,320 Recoverable income tax 126 Other assets 299 Property, plant and equipment 29,216 Intangible assets 9,382 Total non-current assets 40,342 Total assets 58,016 Liabilities and shareholders’ equity Current liabilities Trade payables 1,014 Dividends payable 8,745 Salaries and payroll charges 35 Tax liabilities 7,917 Other liabilities 788 Total current liabilities 18,499 Non-current liabilities Provisions 311 Deferred income tax 4,658 Other liabilities 2,093 Total non-current liabilities 7,062 Total liabilities 25,561 Shareholders’ equity Attributable to NEXA’s shareholders 32,456 As of December 31, 2022, the total investment of NEXA in Enercan is USD 38,990 32,456 4,136 1,885 (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 unconsolidated 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 accounting policies’ standardization, 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 a subsidiary’s ownership interest, 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. (c) Associates Associates are initially recognized at cost and adjusted thereafter for the equity method, being increased, or reduced from its interest in the investee's income after the acquisition date. For an entity to become an associate the Company must have significant influence, which is the power to participate in the financial and operating policy decisions of the investee, without having its control or joint control of those policies. (d) 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. (e) 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 of the Company’s entities 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 Company’s 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, 2022 | |
Changes In Main Accounting Policies And Disclosures | |
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, 2022 or thereafter There were some new standards and amendments effective for annual periods commencing on January 1, 2022. The adoption of these new standards and amendments did not have a material 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) Critical estimates, assumptions 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. Critical estimates, assumptions and judgments, 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 14 • estimation of impairment of trade accounts receivables – note 17 · estimation of the net realizable value of inventories – note 18 • estimation of quantification of mineral reserves and resources for useful life calculation – note 22 • estimation of asset retirement and environmental obligations – note 27 • estimation of provisions for legal claims – note 28 • estimation of contractual obligations – note 29 • estimation of impairment of long-lived 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. Among others, the Company has considered the effects of the Environmental, Social and Governance (“ESG”) commitments when making its critical estimates, assumptions and judgments based on the long-term ESG commitments announced by NEXA on October 6, 2022. Events and changes in circumstances arising after December 31, 2022 will be reflected in management’s estimates for future periods. Ukraine war impacts on NEXA´s financial statements and operations The invasion of Ukraine by Russia, the resulting conflict, and retaliatory measures by the global community have created global security concerns and economic uncertainty, including the possibility of expanded regional or global conflict, which have had, and are likely to continue to have, adverse impacts around the globe. Potential ramifications include disruption of the supply chain, which may impact production, investment, and demand for the Company’s products, higher and more volatile prices for oil and gas, volatility in commodity prices, and disruption of global financial markets, further exacerbating overall macroeconomic trends including inflation and rising interest rates. As of the date of issuance of these consolidated financial statements, we have not identified any material impacts on the Company´s operations, financial condition, or cash flows related to this war. However, NEXA cannot predict any future impact that this war could have on its business and operations and continues to closely monitor the developments related to it. Peruvian political instability impact on the Company’s consolidated financial statements and operations As of the date of the issuance of these consolidated financial statements, there have been no identified impacts on the Company´s operations, financial condition, or cash flows that could be related to this political situation. However, the Company cannot predict any future impact that this situation could have on its business and operations and continues to closely monitor the developments related to it, mainly considering that the Peruvian mining sector, as well as other economic sectors have been affected in some ways, such as logistics and personnel transport. |
Net revenues
Net revenues | 12 Months Ended |
Dec. 31, 2022 | |
Net Revenues | |
Net revenues | 6 Net revenues Accounting policy Revenues represent the amount 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 contractual 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 29 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 as per the London Metal Exchange (LME) quotational periods. As of December 31, 2022, 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 29. (a) Composition (i) Gross billing reconciliation Schedule of net revenues by billing 2022 2021 2020 Gross billing 3,440,863 2,974,850 2,138,786 Billing from products 3,330,975 2,898,210 2,074,203 Billing from freight and insurance services 109,888 76,640 64,583 Taxes on sales (402,064) (347,311) (184,714) Return of products sales (4,809) (5,429) (3,143) Net revenues 3,033,990 2,622,110 1,950,929 (ii) Net revenues breakdown Schedule of net revenues from products 2022 2021 2020 Zinc 2,093,105 1,844,632 1,323,287 Lead 276,438 223,341 161,964 Copper 290,519 305,793 197,756 Silver 57,921 69,691 58,568 Other products 206,119 102,013 144,771 Freight and insurance services 109,888 76,640 64,583 Net revenues 3,033,990 2,622,110 1,950,929 Taxes on sales 402,064 347,311 184,714 Return of products sales 4,809 5,429 3,143 Gross billing 3,440,863 2,974,850 2,138,786 (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: (i) Schedule of revenues by geographical location 2022 2021 2020 Peru 859,760 774,735 485,850 Brazil 827,173 753,280 583,141 United States 174,526 119,564 116,717 Singapore 166,412 56,879 76,724 Switzerland 124,726 78,770 68,912 Chile 120,060 54,044 48,969 Luxembourg 95,252 97,462 76,072 Argentina 94,433 93,107 56,165 Japan 71,370 58,296 46,719 Taiwan 65,036 53,752 28,764 Colombia 64,013 54,325 34,768 South Africa 55,864 25,126 - Turkey 54,955 34,493 25,005 Austria 48,676 45,057 35,197 South Korea 32,406 118,596 77,429 Malaysia 26,032 25,681 13,948 Belgium 17,905 13,690 30,174 Ecuador 15,433 15,652 9,095 Netherlands 13,623 17,693 11,740 Italy 9,586 14,834 9,895 Vietnam 8,396 14,555 10,798 Other 88,353 102,519 104,847 Net revenues 3,033,990 2,622,110 1,950,929 (ii) Schedule of revenues by currency 2022 2021 2020 USD 2,251,866 1,914,905 1,388,746 Brazilian Real (“BRL”) 782,124 707,205 562,183 Net revenues 3,033,990 2,622,110 1,950,929 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2022 | |
Expenses By Nature | |
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 and, if applicable, in the same period in which the income they are related to is recognized. Schedule of expense by nature 2022 2021 2020 Cost of sales (i) Selling, general and administrative Mineral exploration and project evaluation Total Total Total Raw materials and consumables used (1,463,472) - - (1,463,472) (1,189,728) (856,300) Third-party services (449,373) (30,878) (65,041) (545,292) (467,071) (407,695) Depreciation and amortization (282,968) (4,064) (37) (287,069) (258,711) (243,925) Employee benefit expenses (182,609) (58,909) (18,030) (259,548) (223,115) (213,865) Others (16,758) (51,692) (15,754) (84,204) (69,240) (50,966) Total (2,395,180) (145,543) (98,862) (2,639,585) (2,207,865) (1,772,751) (i) Includes USD 52,215 (including depreciation of USD 16,377) related to the provision of Aripuanã’s inventory to its net realizable value, for both its ore stockpile and its produced concentrates, as explained in note 18. This amount also includes USD 15,681 (including depreciation of USD 5,911) related to the idleness of the Aripuanã mine’s and plant’s capacity since November given the start of the unit’s revenues. Before November, 2022 these idleness costs were recorded within Other income and expenses, net. |
Mineral exploration and project
Mineral exploration and project evaluation | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Exploration And Project Evaluation | |
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 Schedule of mineral exploration and project evaluation costs 2022 2021 2020 Mineral exploration (61,986) (55,594) (38,519) Project evaluation (36,876) (29,449) (18,682) Mineral exploration and Project development (98,862) (85,043) (57,201) |
Other income and expenses, net
Other income and expenses, net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income And Expenses Net | |
Other income and expenses, net | 9 Other income and expenses, net Schedule of other income and expenses, net 2022 2021 2020 ICMS tax incentives (i) 56,697 71,949 - Changes in fair value of offtake agreement - note 16 (d) 24,267 - - Changes in fair value of derivative financial instruments – note 16 (c) 1,363 7,486 948 Loss on sale of property, plant and equipment (698) (4,891) (2,268) Remeasurement of asset retirement and environmental obligations (1,512) (6,664) (900) Slow moving and obsolete inventory (11,511) (985) (1,057) Provision of legal claims (7,664) (13,173) (10,912) Contribution to communities (17,233) (7,070) (2,773) Pre-operating expenses related to Aripuanã (ii) (45,800) (8,753) (1,885) Impairment of other assets (iii) (9,302) - - Others 8,719 (5,951) (317) Total other income and expenses, net (2,674) 31,948 (19,164) (i) In December 2021, the Company adhered to a Brazilian Law that states that government grants of the “Imposto circulação de mercadorias e serviços” (“ICMS”) tax incentives are considered investment subsidies and should be excluded from taxable income for the purpose of calculating the Corporate Income Tax (“IRPJ”) and the Social Contribution on Net Income tax (“CSLL”). In 2022, the Company received USD 56,697 of ICMS tax incentives, which were excluded from the corporate income taxes basis for the year and were considered a permanent difference reducing the income tax to pay in the amount of USD 19,277 as shown in note 11 (a). Additionally, based on this, the Company stopped presenting the expenses and revenues of the received ICMS tax incentives on a net basis and started to separate the expenses in Taxes on Sales and the corresponding revenues in Other income and expenses, net. The presentation on a gross basis became necessary to demonstrate the taxes on sales for Brazilian corporate tax deduction purposes. (ii) Related to Aripuanã’s pre-operating expenses that mainly comprise USD 36,884 (including depreciation of USD 3,868) related to the idleness of the Aripuanã mine’s and plant’s capacity from January to October, the period before the unit started to generate revenues. Since November, these idleness costs were recorded within Cost of Sales. (iii) Amounts mainly related to the write-off of some non-commercial account receivables and taxes, which the Company does not expect to recover. |
Net financial results
Net financial results | 12 Months Ended |
Dec. 31, 2022 | |
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 assets 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 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 2022 2021 2020 Financial income Interest income on financial investments and cash equivalents 16,913 6,074 7,295 Interest on tax credits 980 1,377 854 Other financial income 7,125 4,021 3,019 Total financial income 25,018 11,472 11,168 Financial expenses Interest on loans and financings (104,689) (96,565) (97,422) Premium paid on bonds repurchase – note 24 (c) (3,277) - (14,481) Interest on other liabilities (35,134) (12,371) (8,051) Interest on contractual obligations - note 29 (a) (5,801) (6,936) (6,182) Interest on lease liabilities (542) (1,272) (1,757) Other financial expenses (19,251) (25,131) (31,866) Total financial expenses (168,694) (142,275) (159,759) Other financial items, net Changes in fair value of loans and financings – note 24 (c) (1,472) 19,380 (8,058) Changes in fair value of derivative financial instruments – note 16 (c) (83) (5,640) (717) Foreign exchange gains (losses) (i) 11,504 (19,839) (120,809) Other financial items, net 9,949 (6,099) (129,584) Net financial results (133,727) (136,902) (278,175) (i) The amounts for years 2022 and 2021 include USD 6,413 10,468 |
Current and deferred income tax
Current and deferred income tax | 12 Months Ended |
Dec. 31, 2022 | |
Current And Deferred Income Tax | |
Current and deferred income tax | 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 tax 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 deductible 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, assumptions 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 estimates, assumptions and judgments are required to determine the amount of deferred tax assets 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) 2022 2021 2020 Income (loss) before income tax 227,377 309,291 (676,658) Statutory income tax rate 24.94% 24.94% 24.94% Income tax (expense) benefit at statutory rate (56,708) (77,137) 168,759 ICMS tax incentives permanent difference – note 9 19,277 24,463 - Tax effects of translation of non-monetary assets/liabilities to functional currency 6,279 (32,998) (28,174) Withholding tax over subsidiary capital reduction (i) (5,263) (10,526) - Impairment of goodwill (18,247) - (78,866) Special mining levy and special mining tax (13,321) (17,279) (5,909) Difference in tax rate of subsidiaries outside Luxembourg (ii) (10,319) (3,179) 36,390 Unrecognized deferred tax on net operating losses (iii) (66,069) (36,577) (35,849) Other permanent tax differences (6,612) 29 (32,199) Income tax (expense) benefit (150,983) (153,204) 24,152 Current (146,869) (122,081) (63,192) Deferred (4,114) (31,123) 87,344 Income tax (expense) benefit (150,983) (153,204) 24,152 (i) On July 13, 2022, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 105,350 210,703 5,263 10,526 (ii) NEXA’s subsidiaries had a higher taxable profit in 2022 which explains their higher income tax for the year. (iii) On December 31, 2022, Nexa has not recognized deferred tax on net operating losses over a taxable basis of USD 211,780 134,156 (b) Schedule of analysis of deferred income tax assets and liabilities 2022 2021 Tax credits on net operating losses (i) 127,016 116,284 Uncertain income tax treatments (10,980) (5,279) Tax credits on temporary differences Environmental liabilities 15,764 13,923 Asset retirement obligations 18,175 17,698 Inventory provisions 10,569 7,224 Tax, labor and civil provisions 8,882 7,797 Provision for employee benefits 7,099 7,138 Revaluation of derivative financial instruments 754 506 Other 12,144 15,652 Tax debits on temporary differences Capitalized interest (10,504) (9,261) Foreign exchange gains (25,542) (16,365) Depreciation, amortization and asset impairment (178,041) (189,799) Other (7,852) (5,896) (32,516) (40,378) Deferred income tax assets 166,983 168,205 Deferred income tax liabilities (199,499) (208,583) (32,516) (40,378) (i) As a result of adopting the Law described in note 9, there was also an increase in the amount of USD 19,277 (c) Effects of deferred tax on income statement and other comprehensive income Schedule of effects of deferred tax and taxes on profit or loss and other comprehensive income 2022 2021 2020 Balance at the beginning of the year (40,378) 3,188 (48,212) Effect on income (loss) for the year (4,114) (31,123) 87,344 Effect on other comprehensive income (loss) – Fair value adjustment 820 (2,536) 13 Prior years uncertain income tax treatment payment 1,923 - 4,706 Effect on other comprehensive income – Translation effect included in Cumulative translation adjustment 8,481 (9,907) (40,663) Derecognition of Nexa’s share of Enercan's deferred income taxes - note 4 (ii) 3,338 - - Others movements of deferred income tax (2,586) - - Balance at the end of the year (32,516) (40,378) 3,188 (d) There are discussions and ongoing disputes with tax authorities related to uncertain tax positions adopted by the Company in the calculation of its income tax, and for which management, supported by its legal counsel, concluded that the risk of loss is not more likely to occur, and then, it is not probable that an outflow of resources will be required. In such cases, a provision is not recognized. As of December 31, 2022, the main legal proceedings are related to: (i) the interpretation of the application of Cerro Lindo´s stability agreement; and (ii) the carryforward calculation of net operating losses. The estimated amount of these contingent liabilities on December 31, 2022 is USD 349,322 134,804 |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2022 | |
Financial Risk Management | |
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 such 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 related to cash and cash equivalents, financial investments, loans and financings, and other 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, 2022 are described below: · Scenario I: considers a change in the market forward yield curves and quotations as of December 31, 2022, according to the base scenario defined by the Company for March 31, 2023. · Scenario II: considers a change of + or -25% in the market forward yield curves as of December 31, 2022. · Scenario III considers a change of + or -50% in the market forward yield curves as of December 31, 2022. 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, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Cash and cash equivalents and financial investments Foreign exchange rates BRL 5.2177 61,919 2.06 - - - - - 1,274 (15,479) (30,959) 15,479 30,959 EUR 1.0674 12 ( 6.01 (1) (3) (6) 3 6 - - - - - PEN 3.7895 32,963 ( 5.41 (1,783) (8,240) (16,480) 8,240 16,480 - - - - - CAD 1.3536 641 2.46 - - - - - 16 (160) (321) 160 321 NAD 16.9647 1,862 6.19 - - - - - 115 (466) (931) 466 931 Interest rates BRL - CDI - SELIC 13.65 61,341 ( 1 (8) (2,093) (4,187) 2,093 4,187 - - - - - Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Loans and financings Foreign exchange rates BRL 5.2177 277,852 2.06 - - - - - (5,717) 69,463 138,926 (69,463) (138,926) PEN 3.7895 443 ( 5.41 24 111 222 (111) (222) - - - - - Interest rates BRL - CDI - SELIC 13.65 78,904 ( 1 10 2,693 5,385 (2,693) (5,385) - - - - - USD - LIBOR 4.77 182,067 6 (106) 2,169 4,339 (2,169) (4,339) - - - - - IPCA - TLP 5.79 176,269 ( 29 511 2,551 5,103 (2,551) (5,103) - - - - - TJLP 7.37 22,634 17 (38) 417 834 (417) (834) - - - - - Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Other financial instruments Foreign exchange rates BRL 5.2177 (292) 2.06 (6) 73 146 (73) (146) - - - - - Interest rates BRL - CDI - SELIC 13.65% (292) ( 1 41 986 2,114 (867) (1,633) - - - - - USD - LIBOR 4.77% (2,283) 6 bps (2) 140 280 (140) (280) (0) (36) (71) 36 71 Commodities price Zinc 3,025 (2,283) 1.79 18,733 20,988 41,976 (20,988) (41,976) (4,174) (4,676) (9,353) 4,676 9,353 Copper 8,387 (21,833) ( 8.49 (14,153) (4,483) (360) (55,027) (97,498) - - - - - (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, 2022. 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 2022 2021 Assets Cash, cash equivalents and financial investments 97,397 95,320 Derivative Financial Instruments 143 314 Trade accounts receivables 19,132 34,858 Total assets 116,672 130,492 Liabilities Loans and financings 276,634 272,353 Derivative Financial Instruments 435 380 Trade payables and other liabilities 182,275 200,983 Lease liabilities 2,738 7,921 Use of public assets 23,263 24,384 Total liabilities 485,345 506,021 Net exposure (368,673) (375,529) (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. (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, inventory levels, 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 for future trading on the over-the-counter market. (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 2022 2021 Local rating Global rating Total Local rating Global rating Total Cash and cash equivalents AAA 191,269 - 191,269 117,439 - 117,439 AA+ - - - - - - AA 10,259 - 10,259 19 - 19 AA- - 15,958 15,958 - 21,252 21,252 A+ - 117,968 117,968 35,923 318,120 354,043 A - 93,117 93,117 25,354 115,653 141,007 A- - 54,737 54,737 - 104,528 104,528 No rating (i) 8,451 6,067 14,518 2,660 2,869 5,529 209,979 287,847 497,826 181,395 562,422 743,817 Financial investments AAA 18,006 - 18,006 16,849 - 16,849 AA - - - 2,353 - 2,353 No rating (i) 56 - 56 - - - 18,062 - 18,062 19,202 - 19,202 Derivative financial instruments AAA 144 - 144 314 - 314 A+ - 3,061 3,061 - 8,491 8,491 A- - 4,238 4,238 - 7,589 7,589 144 7,299 7,443 314 16,080 16,394 (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-. (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 2022 Less than 1 year Between 1 and 3 years Between 3 and 5 years Over 5 years Total Loans and financings 136,348 391,201 981,759 704,944 2,214,252 Lease liabilities 4,105 1,410 - - 5,515 Derivative financial instruments 9,712 215 86 5 10,018 Trade payables and other liabilities 413,856 12,154 - - 426,010 Confirming payables 216,392 - - - 216,392 Salaries and payroll charges 79,078 - - - 79,078 Dividends payable 7,922 - - - 7,922 Related parties 487 546 - - 1,033 Asset retirement and environmental obligations 19,360 29,625 28,868 241,258 319,111 Use of public assets 2,484 4,972 4,890 16,584 28,930 889,744 440,123 1,015,603 962,791 3,308,261 2021 Less than 1 year Between 1 and 3 years Between 3 and 5 years 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 85,021 243,076 424,802 Use of public assets 1,368 3,244 3,657 21,840 30,109 920,056 515,737 335,975 1,704,235 3,476,003 (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 2022 2021 2020 Loans and financings 24 (a) 1,669,259 1,699,315 2,024,314 Derivative financial instruments 16 (a) 2,575 6,531 (5,106) Lease liabilities 23 (b) 5,021 19,639 25,689 Cash and cash equivalents 15 (497,826) (743,817) (1,086,163) Financial investments (18,062) (19,202) (35,044) Net debt (i) 1,160,967 962,466 923,690 Net income (loss) for the year 76,394 156,087 (652,506) Plus (less): Depreciation and amortization 21, 22 and 23 290,937 258,711 243,925 Share in the results of associates (1,885) Net financial results 10 133,727 136,902 278,175 Income tax expense (benefit) 11 (a) 150,983 153,204 (24,152) Miscellaneous adjustments 2 110,168 38,931 573,475 Adjusted EBITDA (ii) 760,324 743,835 418,917 Leverage ratio (Net debt/Adjusted EBITDA) 1.53 1.29 2.20 (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, 2022 | |
Financial Instruments | |
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. For these loans and financings, the portion of the variation in credit risk is recorded in the OCI. (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. Investments in equity instruments are measured at fair value through other comprehensive income as mentioned before. (a) Breakdown by category The Company’s financial assets and liabilities are classified as follows: Schedule of financial instruments breakdown by category 2022 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through other comprehensive income Total Cash and cash equivalents 15 497,826 - - 497,826 Financial investments 18,062 - - 18,062 Other financial instruments 16 (a) - 7,443 - 7,443 Trade accounts receivables 17 53,123 170,617 - 223,740 Investments in equity instruments 14 (c) - - 7,115 7,115 Related parties (i) 20 (a) 2 - - 2 569,013 178,060 7,115 754,188 2022 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) 1,578,864 90,395 - 1,669,259 Lease liabilities 23 (b) 5,021 - - 5,021 Other financial instruments 16 (a) - 31,851 - 31,851 Trade payables 25 413,856 - - 413,856 Confirming payables 26 216,392 - - 216,392 Use of public assets (ii) 23,263 - - 23,263 Related parties (ii) 20 (a) 1,033 - - 1,033 2,238,429 122,246 - 2,360,675 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 Other financial instruments 16 (a) - 16,394 - 16,394 Trade accounts receivables 17 84,969 146,205 - 231,174 Investments in equity instruments 14 (c) - - 3,723 3,723 Related parties (i) 20 (a) 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 Other financial instruments 16 (a) - 22,925 - 22,925 Trade payables 25 411,818 - - 411,818 Confirming payables 26 232,860 - - 232,860 Use of public assets (ii) 24,384 - - 24,384 Related parties (ii) 20 (a) 393 - - 393 2,299,732 111,602 - 2,411,334 (i) Classified as Other assets in the consolidated balance sheet. (ii) Classified as Other liabilities in the consolidated balance sheet. |
Fair value estimates
Fair value estimates | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Estimates | |
Fair value estimates | 14 Fair value estimates Critical accounting estimates, assumptions 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 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. · Other 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. (b) Classification of financial assets and liabilities in the fair value hierarchy 2022 Note Level 1 Level 2 Total Assets Other financial instruments 16 (a) - 7,443 7,443 Trade accounts receivables - 170,617 170,617 Investments in equity instruments (i) 14 (c) 7,115 - 7,115 7,115 178,060 185,175 Liabilities Other financial instruments 16 (a) - 31,851 31,851 Loans and financings designated at fair value (ii) - 90,395 90,395 - 122,246 122,246 2021 Note Level 1 Level 2 Total Assets Other financial instruments 16 (a) - 16,394 16,394 Trade accounts receivables - 146,205 146,205 Investments in equity instruments (i) 14 (c) 3,723 - 3,723 3,723 162,599 166,322 Liabilities Other financial instruments 16 (a) - 22,925 22,925 Loans and financings designated at fair value (ii) - 88,677 88,677 - 111,602 111,602 (i) To determine the fair value of the investments in equity instruments, the Company uses the share’s quotation as of the last day of the reporting period. (ii) Loans and financings are measured at amortized cost, except for certain contracts for which the Company has elected the fair value option. The Company discloses fair value measurements based on their level on the following fair value measurement hierarchy: Level 1: When fair value is calculated with 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: When fair value is calculated with valuation techniques since the financial instruments are not traded in an active market and 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: When fair value is calculated with inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). As of December 31, 2022, there were no financial assets and liabilities carried at fair value classified as Level 3. (c) In 2021, the Company acquired 9.0% of the issued and outstanding common shares of Tinka Resources Limited (“Tinka”), an exploration and development company which holds 100% of the Ayawilca zinc-silver project in Peru. On May 31, 2022, the Company subscribed to an additional 40,792,541 0.17 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
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) Schedule of cash and cash equivalents 2022 2021 Cash and banks 330,653 276,761 Term deposits 167,173 467,056 Total cash and cash equivalents 497,826 743,817 |
Other financial instruments
Other financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Other financial instruments | 16 Other 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. For derivatives that meet the hedge accounting criteria, 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) Derivative financial instruments designated as 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 affects 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 some strategies related to mismatches of quotational periods. (ii) Derivative financial instruments designated as 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 does not have any derivatives designated as fair value hedge. (iii) Derivatives financial instruments not designated as hedge accounting Changes in the fair value of derivative financial instruments not designated as hedge accounting are recognized in the income statement in the line affected by the related transaction. Currently, the Company does not designate as hedge accounting some strategies related to mismatches of quotational periods, to sales of zinc at a fixed price, and to interest rate risk. (iv) Offtake agreement On January 25, 2022, the Company signed an offtake agreement with an international offtaker (the “Offtaker”) a subsidiary of a BBB rated company, in which it agreed to sell 100 5 The offtake agreement resulted from negotiations with the Offtaker to sell the copper concentrate in lieu of paying future royalties related to the previous acquisition of the Aripuanã project mining rights from the Offtaker. The amount of USD 46,100 Additionally, the Company opted to voluntarily and irrevocably designate the entire offtake agreement at fair value through profit and loss within the scope of IFRS 9, rather than separate the value of the embedded derivative associated with the price cap, recognizing a non-cash accumulated gain of USD 24,267 (a) Composition Schedule of Derivative financial instruments 2022 2021 Derivatives financial instruments Current assets 7,380 16,292 Non-current assets 63 102 Current liabilities (9,711) (22,684) Non-current liabilities (307) (241) Derivatives financial instruments, net (2,575) (6,531) Offtake agreement measured at FVTPL Current liabilities (1,724) - Non-current liabilities (20,109) - Offtake agreement measured at FVTPL, net (21,833) - (b) Derivative financial instruments: Fair value by strategy Schedule of fair value by strategy 2022 2021 Strategy Per Unit Notional Fair value Notional Fair value Mismatches of quotational periods Zinc forward ton 209,319 (2,357) 215,809 (9,898) (2,357) (9,898) Sales of zinc at a fixed price Zinc forward ton 8,297 74 8,787 3,433 74 3,433 Interest rate risk IPCA vs. CDI BRL 226,880 (292) 226,880 (66) (292) (66) (2,575) (6,531) (c) Derivative financial instruments: Changes in fair value – At the end of each period Schedule of changes in fair value Strategy Inventory Cost of sales Net revenues Other income and expenses, net Net financial results Other comprehensive income Realized (loss) gain Mismatches of quotational periods (1,014) 19,394 (2,868) 743 - (1,329) 7,385 Sales of zinc at a fixed price - - (2,859) 620 - - 1,120 Interest rate risk – IPCA vs. CDI - - - - (83) - 143 2022 (1,014) 19,394 (5,727) 1,363 (83) (1,329) 8,648 2021 1,146 (37,963) 9,709 7,486 (5,640) 488 (13,137) (d) Offtake agreement measured at FVTPL: Changes in fair value Schedule of changes in fair value offtake agreement 2022 2021 Inception date 46,100 - Changes in fair value (24,267) - Balance at the end of year 21,833 - Notional (ton) 30,810 - |
Trade accounts receivables
Trade accounts receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade Accounts Receivables | |
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 outstanding at the balance sheet date that is designated at inception to be 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, which is recorded on net revenues. 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. (a) Composition Schedule of composition of trade accounts receivables 2022 2021 Trade accounts receivables 227,265 233,623 Related parties - note 20 801 1,016 Impairment of trade accounts receivables (4,326) (3,465) 223,740 231,174 (b) Changes in impairment of trade accounts receivables Schedule of changes in impairment of trade accounts receivables 2022 2021 Balance at the beginning of the year (3,465) (3,179) Additions (1,793) (1,586) Reversals 1,005 1,206 Foreign exchange (losses) gains (73) 94 Balance at the end of the year (4,326) (3,465) (c) Analysis by currency Schedule of analysis of trade accounts receivables by currency 2022 2021 USD 204,608 196,316 BRL 18,740 34,464 Other 392 394 223,740 231,174 (d) Aging of trade accounts receivables Schedule of aging of trade accounts receivables 2022 2021 Current 212,814 222,083 Up to 3 months past due 10,495 9,201 From 3 to 6 months past due 2,181 51 Over 6 months past due 2,576 3,304 228,066 234,639 Impairment of trade accounts receivable (4,326) (3,465) 223,740 231,174 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Abstract | |
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 costs based on the actual production level. Imports in transit are stated at the accumulated cost of each import. At the end of the reporting period, the net realizable value of inventories is assessed and a provision for non-realizable, losses on obsolete or slow-moving inventory may be recognized. The provision for net realizable value is estimated considering the current selling price in the ordinary course of business, less any additional selling expenses. The write-downs and reversals are recognized within Cost of sales. 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 and is recognized as Other income and expenses. 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 and is recognized as Other income and expenses. (a) Composition Schedule of inventories 2022 2021 Finished products 142,935 157,285 Semi-finished products (i) 163,805 60,315 Raw materials 68,497 90,087 Auxiliary materials and consumables 115,562 94,564 Inventory provisions (95,602) (29,749) Total 395,197 372,502 (i) Semi-finished products in December 2022 include the stockpile produced during Aripuanã’s commissioning phase in the total amount of USD 40,303. In 2021, the amount of USD 23,009 of the ore stockpile that was included in raw material was reclassified as a semi-finished products. (b) Changes in the provision of the year Schedule of changes in the provision for obsolescence 2022 2021 Balance at the beginning of the year (29,749) (29,074) Additions (i) (69,761) (15,094) Reversals 4,634 13,986 Exchange variation (losses) gains (726) 433 Balance at the end of the year (95,602) (29,749) (i) The main amount is related to the provision of Aripuanã’s inventory to its net realizable value for both its ore stockpile and its produced concentrates in the total amount of USD 52,215 16,377 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets | |
Other assets | 19 Other assets Schedule of the composition of other assets 2022 2021 Other recoverable taxes 139,168 128,377 Advances to third parties 7,057 8,545 Prepaid expenses 9,858 10,361 Judicial deposits 16,753 5,446 Works-for-taxes program 7,902 5,338 Other assets 29,222 21,636 Total other assets 209,960 179,703 Current assets 75,486 81,119 Non-current assets 134,474 98,584 |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Parties | |
Related parties | 20 Related parties (a) Balances Schedule of related parties transactions Trade accounts receivables Related parties’ assets Trade payables Dividends payable Related parties’ liabilities Assets and liabilities 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Parent Votorantim S.A. - - 2 2 765 1,102 - - - - Related parties Andrade Gutierrez Engenharia S.A. - - - - 3,353 1,890 - - - - Auren Comercializadora de Energia Ltda. 1 302 - - 976 945 - - - - Campos Novos Energia S.A. - - - - 9,652 - - - - - Companhia Brasileira de Alumínio 187 158 - - 263 264 - - - - Votorantim Cimentos S.A. 607 551 - - 163 64 - - - - Votorantim International CSC S.A.C - - - - 1 306 - - 487 152 Other 6 5 - - 164 240 7,922 11,441 546 241 801 1,016 2 2 15,337 4,811 7,922 11,441 1,033 393 Current 801 1,016 - - 15,337 4,811 7,922 11,441 - - Non-current - - 2 2 - - - - 1,033 393 801 1,016 2 2 15,337 4,811 7,922 11,441 1,033 393 (b) Transactions Sales Purchases Profit and loss 2022 2021 2020 2022 2021 2020 Parent Votorantim S.A. - - - 4,704 3,735 4,378 Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - 38,907 41,498 26,280 Auren Comercializadora de Energia Ltda. 744 5,993 9,740 4,974 16,207 7,721 Campos Novos Energia S.A. - - - 4,954 - - Companhia Brasileira de Alumínio 9,708 8,988 7,828 8,891 3,736 1,156 Votorantim Cimentos S.A. - - - 3,078 661 524 Votorantim International CSC S.A.C - - - 12,480 4,278 6,638 Other - 113 11 1,157 1,120 582 10,452 15,094 17,579 79,145 71,235 47,279 (i) 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. (c) 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 2022 2021 Short-term benefits 7,371 6,602 Other long-term benefits 158 664 Total key management compensation 7,529 7,266 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, 2022 | |
Property, plant and equipment [abstract] | |
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 (“LOM”) 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 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 (“CGUs”) 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 22. 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 2022 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 1,054,413 2,330,748 874,776 202,242 181,528 35,266 4,678,973 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) (16,291) (15,027) (2,591,243) Balance at the beginning of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Additions (ii) 4 706 381,223 22,252 479 56 404,720 Disposals and write-offs (568) (369) (430) - - (82) (1,449) Depreciation (82,293) (109,009) - (5,169) (2,120) (1,302) (199,893) Impairment (loss) reversal of long-lived assets - note 31 19,802 7,513 (6,168) - (39,910) - (18,763) Derecognition of Nexa’s share of Enercan's property, plant and equipment - note 4 (ii) (19,688) (8,711) (634) - - (183) (29,216) Foreign exchange effects 18,577 23,855 37,280 3,686 1,215 839 85,452 Transfers (v) – note 22 466,513 284,635 (767,561) - 3,524 8,608 (4,281) Remeasurement of asset retirement obligations - - - (29,025) - - (29,025) Balance at the end of the year 841,332 765,991 455,805 75,547 128,425 28,175 2,295,275 Cost 1,512,360 2,636,582 521,191 200,665 221,077 44,094 5,135,969 Accumulated depreciation and impairment (671,028) (1,870,591) (65,386) (125,118) (92,652) (15,919) (2,840,694) Balance at the end of the year 841,332 765,991 455,805 75,547 128,425 28,175 2,295,275 Average annual depreciation rates % 4 8 - UoP UoP 2021 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligation 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 42,739 - 1,576 552,905 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 - - - (36,860) - - (36,860) 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 2,330,748 874,776 202,242 181,528 35,266 4,678,973 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) (16,291) (15,027) (2,591,243) 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 (i) Reclassification of USD 31,851 (ii) Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 15,946 19,614 (iii) Only the amounts related to the operating unit Atacocha are being depreciated under the UoP method. (iv) Amount includes: (i) in 2021 a transfer from Assets and projects under construction to Inventories (raw materials) of USD 23,009 748 (v) Mainly related to the transfers from Assets and projects under construction to the corresponding group of assets, given the ramp-up process in Aripuanã’s mining unit as explained in note 1. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
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 CGUs. Refer to note 31 for the Company’s impairment accounting policy. Critical accounting estimates, assumptions 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 United States Securities and Exchange Commission’s (SEC) Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (S-K 1300) and Item 601 (b)(96) Technical Report Summary. 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 (“LOM”). Any changes to the LOM, based on new information regarding estimates of mineral reserves and mineral resources and mining plan, may affect prospectively the LOM 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 LOM. 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, assumptions and judgments that could have a material impact on the Company’s results of operations. (a) Changes in the year Schedule of reconciliation of changes in intangible assets 2022 Goodwill (iv) Rights to use natural resources Other Total Balance at the beginning of the year 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 beginning of the year 406,228 612,270 38,273 1,056,771 Additions (ii) - 57,529 - 57,529 Amortization - (76,695) (5,639) (82,334) Impairment (loss) reversal of long-lived assets – note 31 (61,856) 48,107 - (13,749) Derecognition of Nexa’s share of Enercan's intangible assets - note 4 (ii) - - (9,382) (9,382) Foreign exchange effects 195 3,661 (45) 3,811 Transfers – note 21 - 2,546 1,735 4,281 Balance at the end of the year 344,567 647,418 24,942 1,016,927 Cost 611,909 1,855,014 65,246 2,532,169 Accumulated amortization and impairment (267,342) (1,207,596) (40,304) (1,515,242) Balance at the end of the year 344,567 647,418 24,942 1,016,927 Average annual depreciation rates % - UoP - 2021 Goodwill (iv) 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 - 31,851 406,434 680,721 21,101 1,108,256 Additions (iii) - - 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 beginning 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 - (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, which is entirely 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 related to the offtake agreement signed on January 25, 2022 to sell 100% of the copper concentrate to be produced by Aripuanã for a specified period. As explained in note 16, this agreement replaced the obligation of future royalty payments arising from the acquisition of mining rights by the Company for the Aripuanã project. The fair value of this agreement on its inception date, in the amount of USD 46,100 (iii) As described in the audited consolidated financial statements for the year ended on December 31, 2021, 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 the Generation Scaling Factor (“GSF”). 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). (iv) At December 31, 2022, the balances of the Company’s recognized goodwill were: (i) USD 95,484 249,082 |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, interest rates were between 5.87% to 11.39% for Brazil; and, 2.85% 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. (a) Right-of-use assets - Changes in the year Summary of rights-of-use-assets - Changes in the year 2022 2021 Buildings Machinery, equipment, and facilities IT equipment Vehicles Total Total Balance at the beginning of the year Cost 5,731 17,560 5,427 21,286 50,004 47,562 Accumulated amortization (3,844) (12,757) (5,427) (15,286) (37,314) (28,693) Balance at the beginning of the year 1,887 4,803 - 6,000 12,690 18,869 New contracts 1,547 189 282 - 2,018 5,174 Amortization (1,235) (2,330) (84) (5,061) (8,710) (10,303) Remeasurement 563 (98) - (46) 419 (290) Foreign exchange effects 71 148 - 259 478 (761) Balance at the end of the year 2,833 2,712 198 1,152 6,895 12,690 Cost 7,300 18,106 282 18,830 44,518 50,004 Accumulated amortization (4,467) (15,394) (84) (17,678) (37,623) (37,314) Balance at the end of the year 2,833 2,712 198 1,152 6,895 12,690 Average annual amortization rates % 31 34 33 34 (b) Lease liabilities - Changes in the year Summary of lease liabilities - changes in the year 2022 2021 Balance at the beginning of the year 19,638 25,689 New contracts 2,018 5,174 Payments of lease liabilities (17,091) (9,827) Interest paid on lease liabilities (994) (1,415) Remeasurement 419 (302) Accrued interest – note 10 542 1,272 Foreign exchange effects 489 (952) Balance at the end of the year 5,021 19,638 Current liabilities 3,661 16,246 Non-current liabilities 1,360 3,393 |
Loans and financings
Loans and financings | 12 Months Ended |
Dec. 31, 2022 | |
Loans And Financings | |
Loans and financings | 24 Loans and financings Accounting policy Loans and financings are initially recognized 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 Total Fair Value 2022 2021 2022 2021 Type Average interest rate Current Non-current Total Total Total Total Eurobonds – USD Pre-USD 5.84 18,656 1,191,827 1,210,483 1,338,334 1,162,741 1,440,920 BNDES TJLP + 2.82 % 3.10 5.46 26,105 190,211 216,316 215,801 183,452 180,565 Export credit notes LIBOR + 1.54 134.20 2.5 5,500 227,290 232,790 135,077 227,201 136,389 Debentures 107.5 - - - 4,916 - 4,901 Other 579 9,091 9,670 5,187 7,054 4,192 50,840 1,618,419 1,669,259 1,699,315 1,580,448 1,766,967 (b) Loans and financing transactions during the year ended on December 31, 2022 On March 18, 2022, the Company entered into an Export Credit Note agreement in the total principal amount of USD 90,000 459,468 2.5 On March 28, 2022, the Company completed the early redemption and cancellation of all outstanding 4.625 128,470 2,971 3,277 (c) Changes in the year Schedule of movements in loans and financings 2022 2021 Balance at the beginning of the year 1,699,315 2,024,314 New loans and financings 95,621 59,771 Debt issue costs (63) (178) Payments of loans and financings (24,639) (251,044) Bonds repurchase (128,470) - Prepayment of fair value debt - (90,512) Foreign exchange effects 22,695 (21,066) Changes in fair value of financing liabilities related to changes (521) 5,066 Changes in fair value of loans and financings 1,472 (10,784) Write-off of fair value of loans and financings - (8,596) Interest accrual 110,679 113,456 Interest paid on loans and financings (109,263) (121,112) Amortization of debt issue costs 2,433 - Balance at the end of the year 1,669,259 1,699,315 (d) Maturity profile Schedule of maturity profile of the loans and financings 2022 2023 2024 2025 2026 2027 As from Total Eurobonds – USD (i) 18,656 (2,149) (2,216) (2,287) 698,561 499,918 1,210,483 BNDES 26,105 24,773 23,722 21,154 13,454 107,108 216,316 Export credit notes 5,500 88,907 48,382 - 90,000 1 232,790 Other 579 97 1,285 1,285 1,285 5,139 9,670 50,840 111,628 71,173 20,152 803,300 612,166 1,669,259 (i) The negative balances refer to related funding costs (fee) amortization. (e) Analysis by currency Schedule of analysis of the loans and financings, by currency 2022 2021 Current Non-current Total Total USD 21,861 1,370,764 1,392,625 1,426,962 BRL 28,535 247,655 276,190 270,571 Other 444 - 444 1,782 50,840 1,618,419 1,669,259 1,699,315 (f) Analysis by index Schedule of analysis of the loans and financings, by index 2022 2021 Current Non-current Total Total Fixed rate 19,144 1,191,828 1,210,972 1,340,247 LIBOR 1,474 88,937 90,411 88,677 TLP 14,348 160,924 175,272 170,324 BNDES SELIC 7,943 19,853 27,796 29,680 CDI 2,369 48,353 50,722 51,316 SOFR 1,657 90,000 91,657 - TJLP 3,830 18,524 22,354 19,071 Other 75 - 75 - 50,840 1,618,419 1,669,259 1,699,315 (g) Guarantees and covenants The Company has loans and financings that are subject to certain financial covenants at the consolidated level, such as: (i) leverage ratio; (ii) capitalization ratio; and (iii) debt service coverage ratio. When applicable, these compliance obligations are standardized for all debt agreements. No changes to the contractual guarantees occurred in the period ended on December 31, 2022. As of December 31, 2022, the Company was in compliance with all its financial covenants, as well as the Company was compliant with other qualitative covenants. |
Trade Payables
Trade Payables | 12 Months Ended |
Dec. 31, 2022 | |
Trade Payables | |
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 2022 2021 Trade payables 398,519 407,007 Related parties - note 20 15,337 4,811 Trade payables 413,856 411,818 |
Confirming Payables
Confirming Payables | 12 Months Ended |
Dec. 31, 2022 | |
Confirming Payables | |
Confirming Payables | 26 Confirming Payables Accounting policy The Company has contracts with some suppliers in which the commercial payment term is 180 days 180 days 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 2022 was of USD 932 1,290 As of December 31, 2022, accounts payable of USD 216,392 232,860 145,295 |
Asset retirement and environmen
Asset retirement and environmental obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement And Environmental Obligations | |
Asset retirement and environmental obligations | 27 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, assumptions 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 LOM, 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 2022 2021 Asset retirement obligations Environmental obligations Total Total Balance at the beginning of the year 221,710 42,441 264,151 276,046 Additions (ii) 26,116 8,920 35,036 51,893 Payments (14,879) (10,514) (25,393) (26,255) Foreign exchange effects 6,034 3,126 9,160 (7,851) Interest accrual 20,014 3,648 23,662 9,667 Remeasurement - discount rate (i) / (ii) (39,072) (1,225) (40,297) (39,350) Balance at the end of the year 219,923 46,396 266,319 264,151 Current liabilities 18,658 4,988 23,646 31,953 Non-current liabilities 201,265 41,408 242,673 232,197 (i) As of December 31, 2022, the credit risk-adjusted rate used for Peru was between 10.92% and 12.04% (December 31, 2021: 3.54% and 7.28%) and for Brazil was between 8.22% and 8.61% (December 31, 2021: 7.68% and 8.67%). (ii) The change in the period ended on December 31, 2022, was mainly due to the time change in the expected disbursements on decommissioning obligations in certain operations, in accordance with updates in their asset retirement and environmental obligations studies, and by the increase in the discount rates, as described above. In this way, asset retirement obligations for operational assets, decreased in an amount of USD 6,773 (December 31, 2021: increase of USD 5,879) as shown in note 21; and asset retirement and environmental obligations for non-operational assets expense in USD 1,512 (December 31, 2021: expense of USD 6,664) as shown in note 9. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Provisions | 28 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 and assumptions – 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) Schedule of provisions 2022 2021 Tax Labor Civil Environmental Total Total Balance at the beginning of the year 4,535 18,674 703 12,916 36,828 30,896 Additions (i) 4,282 5,016 724 3,126 13,148 33,305 Derecognition of Nexa’s share of Enercan’s provisions – note 4 (ii) (311) - - - (311) - Reversals (722) (3,288) (409) (1,065) (5,484) (20,132) Interest accrual 547 1,494 (383) 96 1,754 746 Payments (802) (1,936) (1,180) (666) (4,584) (5,327) Foreign exchange effects 398 1,117 89 662 2,266 (2,385) Other 232 (557) 700 (95) 280 (275) Balance at the end of the year 8,159 20,520 244 14,974 43,897 36,828 (i) Brazillian Court of Justice in which the tax authorities of the State of Minas Gerais charge VAT applied to interstate sales for manufactured goods with imported content. This decision resulted in a new assessment of the likelihood of this proceeding by the Company in 2022, changing from possible to probable, and according with this change in the evaluation a provision in the amount of USD 3,583 was registered. Currently the proceeding awaits decision by Brazillian Supreme Federal Court and Superior Court of Justice. (b) The provisions and the corresponding judicial deposits are as follows: Schedule of provisions and judicial deposits 2022 2021 Judicial deposits Provisions Carrying amount Judicial deposits Provisions Carrying amount Tax (1,200) 9,359 8,159 (1,528) 6,062 4,534 Labor (3,399) 23,919 20,520 (2,752) 21,431 18,679 Civil - 244 244 (751) 1,451 700 Environmental - 14,974 14,974 - 12,915 12,915 Balance at the end of the year (4,599) 48,496 43,897 (5,031) 41,859 36,828 The outstanding judicial deposits of the Company as of December 31, 2022 that are not presented net of the provisions are USD 16,753 5,446 (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 2022 2021 Tax (i) 134,637 156,779 Labor (ii) 41,454 36,215 Civil (iii) 16,946 14,618 Environmental (iv) 112,541 97,027 305,578 304,639 (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 60,784 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 11,219 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 3,802 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 20,439 · 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 7,046 (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 16,374 (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 76,386 |
Contractual obligations
Contractual obligations | 12 Months Ended |
Dec. 31, 2022 | |
Contractual Obligations | |
Contractual obligations | 29 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 LOM 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, assumptions 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) estimate prices for determining the upfront payment; (iii) discount rates used to measure the present value of future inflows and outflows; and (iv) estimates of LOM, 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: The changes in the contractual obligation are shown below 2022 2021 Balance at the beginning of the year 147,232 166,025 Revenues recognition upon ore delivery (31,438) (45,309) Remeasurement adjustment (i) 10,565 19,580 Accretion for the year – note 10 5,801 6,936 Balance at the end of year 132,160 147,232 Current 26,188 33,156 Non-current 105,972 114,076 (i) In September 2022, the Company recognized a remeasurement adjustment in its contractual obligations of silver streaming with a corresponding reduction in revenues for an amount of USD 10,565 and an increase in accretion for an amount of USD 1,041 (September 30, 2021: USD 19,312 and USD 1,658, respectively), given the higher long-term prices and the updated mine plan for its Cerro Lindo Mining Unit. According to the Company’s silver streaming accounting policy, prices and changes in the LOM given an update in mine plans are variable considerations and then, the recognized income under the streaming agreement should be adjusted to reflect the updated variables. |
Shareholders_ equity
Shareholders’ equity | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, the outstanding capital of USD 132,439 132,439 132,439 132,439 1.00 231,925 (b) Treasury shares 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, purchased based on a share buyback program in prior years. For this reason, after the cancellation that 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: 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, 2020 (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 related to changes in the Company’s own credit risk - - (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 related to changes in the Company’s own credit risk - - (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) Translation adjustment on foreign subsidiaries 65,243 - - 65,243 Cash flow hedge accounting - (331) - (331) Changes in fair value of financial liabilities related to changes in the Company’s own credit risk - - 343 343 Changes in fair value of investments in equity instruments - - (3,608) (3,608) At December 31, 2022 (269,075) 1,262 (14,213) (282,026) Attributable to NEXA's shareholders (243,124) Attributable to non-controlling interests (38,902) (f) Earnings per share Basic earnings per share are computed by dividing the net income attributable to 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 potentially dilutive shares and consequently the basic and diluted earnings per share are the same. Schedule of earnings per share information 2022 2021 2020 Net income (loss) for the year attributable to NEXA's shareholders 49,101 114,332 (559,247) Weighted average number of outstanding shares – in thousands 132,439 132,439 132,439 Earnings (losses) per share - USD 0.37 0.86 (4.22) (g) Dividend 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 USD 50,000. From this amount, USD 43,874 were distributed as dividends (cash dividend) and USD 6,126, as share premium (special cash dividend). This cash distribution was paid on March 25, 2022. Additionally, the Company’s subsidiary, Pollarix, declared dividends to non-controlling interests, owned by Auren Energia S.A. (formerly Votorantim Geração de Energia S.A.), which is a related party, in the amounts of (i) USD 14,951 73,515 3,163 16,622 4,961 25,883 9,449 46,458 2,996 15,714 12,147 63,825 (h) Non-controlling interests Schedule of Summarised financial information of the non-controlling interests Summarized balance sheet NEXA PERU Pollarix S.A. 2022 2021 2022 2021 Current assets 658,099 680,609 9,822 23,070 Current liabilities 260,980 288,736 8,820 13,279 Current net assets 397,119 391,873 1,002 9,791 Non-current assets 1,282,556 1,345,420 68,984 53,516 Non-current liabilities 409,106 566,059 - - Non-current net assets 873,449 779,361 68,984 53,516 Net assets 1,270,568 1,171,234 69,985 63,307 Accumulated non-controlling interests 217,167 213,997 50,842 44,011 Summarized income statement NEXA PERU Pollarix S.A. 2022 2021 2022 2021 Net revenues 892,389 828,571 6,906 20,996 Net income for the year 106,501 94,706 29,635 39,136 Other comprehensive income (loss) 7,308 (940) 9,686 (2,977) Total comprehensive income for the year 113,809 93,766 39,321 36,159 Comprehensive income attributable to non-controlling interests 1,199 12,991 30,870 24,947 Dividends paid to non-controlling interests - - 24,592 23,730 Summarized statement of cash flows NEXA PERU Pollarix S.A. 2022 2021 2022 2021 Net cash provided by (used in) operating activities 196,850 179,842 4,474 (8,522) Net cash used in investing activities (86,969) (93,632) - - Net cash (used in) provided by financing activities (137,426) (92,905) (6,945) 8,997 (Decrease) increase in cash and cash equivalents (28,582) (8,542) (2,471) 475 |
Impairment of long-lived assets
Impairment of long-lived assets | 12 Months Ended |
Dec. 31, 2022 | |
Impairment Of Long-lived Assets | |
Impairment of long-lived assets | Impairment of long-lived 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 during the third quarter, 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 long-lived 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 LOM, 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 or related with prior goodwill impairments are not recognized. For individual assets, if there is any indicator that an asset become unusable by damage or a decision that would lead the asset to not contribute economically to the Company, it is impaired. In addition, greenfields, projects for which the Company decides to quit exploration and there is no expectation that in the future will bring cash inflows are also impaired. Impairment of exploration and evaluation costs and development projects costs Exploration assets representing mineral rights acquired in business combinations, mineral rights, and other capitalized exploration and evaluation costs, as well as development projects 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 exploration and evaluation costs, and development project 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 exploration and evaluation costs and development project costs, the Company performs the impairment test in two steps. In the first step, producing assets or group of producing assets are tested for impairment on an individual basis. In the second step, exploration and evaluation costs and development project 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 when pricing the asset. FVLCD is estimated by the Company using discounted cash flows techniques (using a post-tax discount rate) and market past transaction multiples (amount paid per ton of minerals for projects in similar stages) for greenfield projects for which resources allocation is under review, 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. Additionally, it is applied to the estimated future cash flows a pre-tax discount rate. Forecast assumptions The cash flow forecasts are based on management’s best estimates of expected future revenues and costs, including the future cash costs of production, capital expenditure, and closure, restoration, and environmental costs. The resulting estimates are based on detailed LOM and long-term production plans. When calculating FVLCD, these forecasts include capital and operating expenditures related to expansions and restructurings of both brownfield and greenfield projects that a market participant would consider in seeking to obtain the highest and best use of the asset, considering their evaluation, eventual changes in their scope or feasibility, and their 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 that also reflects the view of market participants. 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 LOM 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 considers 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 LOM 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 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 exploration assets and development projects, for some assets 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, assumptions and judgments - Impairment of long-lived 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. 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 assumptions, judgment and projections for future cash flows. These calculations use cash flow projections based on 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 LOM 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 assumptions and estimates of future cash flows used for the Company’s impairment testing of goodwill and long-lived 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 test analysis During September 2022, the Company performed its annual impairment test for the CGUs to which goodwill has been previously allocated (Mining Peru group of CGUs: Cerro Pasco and Cerro Lindo; and Cajamarquilla), considering available key assumptions included in the strategic planning process which is performed during the third quarter of every year, as well as other variables discussed in such process, and did not identify any net material impairment loss or reversal to be recognized. For Brazillian CGUs (Três Marias System and Juiz de Fora), no impairment indicators were identified, and no impairment test was required for these CGUs. As of December 31, 2022, the Company identified impairment indicators mainly related to: (i) a CAPEX and costs increase in the Cerro Pasco CGU given the review process started by management in October; and (ii) the Company’s decision not to maintain in its portfolio two of its greenfields projects (Shalipayco and Pukaqaqa) which are included in the Cerro Lindo CGU which is also part of the Mining Peru group of CGUs. The Company also identified impairment reversal indicators related to the performance of metal prices during the fourth quarter of 2022 which led the Company’ sensitivities over the estimated metal price to increase. The impairment assessment as of December 31, 2022, resulted in the recognition of an impairment reversal of USD 79,529 61,856 10,275 39,910 32,512 30,971 For the year ended on December 31, 2021, the Company performed its annual impairment test, and did not identify impairment provisions or reversals for the period. For the year ended on December 31, 2020, the Company recognized an impairment loss of USD 557,497 (a) Key assumptions used in impairment test The recoverable amounts for each CGU were determined based on the FVLCD method, which were higher than those determined based on the VIU method. The Company identified long-term metal prices, discount rate and LOM as key assumptions for the recoverable amounts determination, due to the material impact such assumptions may cause on the recoverable value. Part of these assumptions are summarized below: Schedule of key assumptions used in impairment test 2022 2021 2020 Long-term zinc price (USD/t) 2,787 2,724 2,449 Discount rate (Peru) 6.93 6.22 7.22 Brownfield projects - LOM (years) (i) From 5 14 from 4 13 From 5 14 (i) As part of the Cerro Lindo CGU recoverable amount, the Company has included the value of its greenfield projects based on market multiples as disclosed above in the FVLCD section. No impairment indicator was identified for these greenfield projects, other than for Shalipayco and Pukaqaqa. (b) Impairment reversal – Cerro Pasco CGU As mentioned above, the impairment reversal was identified at the CGU level, not being directly related to a single asset. Then, the gain was allocated on a pro rata basis to the following assets: Schedule of allocation of impairment loss identified at the CGU level Carrying amount prior to impairment reversal Impairment reversal Carrying amount after impairment reversal Property, plant and equipment 124,576 31,258 155,834 Intangible assets 167,913 48,272 216,185 Other net liabilities (100,379) - (100,379) 192,110 79,529 271,640 The Company performed a stress test on the key assumptions used for the calculation of the recoverable amount of the CGU Cerro Pasco. A decrease of 5% in the long-term LME zinc price to USD 2,648 per ton compared to management´s estimation as of December 31, 2022, would have resulted in an impairment reversal of USD 31,061 48,468 70,010 9,519 (c) Impairment loss - Mining Peru group of CGUs Goodwill Before the impairment test performed on December 31, 2022, the Mining Peru group of CGU’s included a goodwill of USD 310,938 249,082 Schedule of Impairment loss Carrying amount prior to impairment Impairment Carrying amount after impairment Goodwill- Mining Peru 310,938 (61,856) 249,082 The Company performed a stress test on the key assumptions used for the calculation of the recoverable amount of the Mining Peru group of CGUs. A decrease of 10% in the long-term LME zinc price to USD 2,508 per ton compared to management´s estimation as of December 31, 2022, would have resulted in an impairment loss of USD 88,437 26,581 (d) Impairment results – Other CGUs The impairment reversal indicator, identified during the year, also led to an increase in the recoverable amount of the other CGUs included in the Mining Peru group of CGUs. The Company estimated the amount by which the value assigned to the key assumptions must change in order for the assessed CGUs recoverable amount to be equal to their carrying amount: Schedule of CGU recoverable carrying amount CGU Excess over recoverable amount Decrease in Long term Zinc (USD/t) Increase in WACC Change Price Change Rate Cerro Lindo 179,440 ( 28.1 2,003 175.5 19.1 Cajamarquilla 407,027 ( 15.2 2,246 41.9 9.8 |
Long-term commitments
Long-term commitments | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Commitments | |
Long-term commitments | 32 Long-term commitments 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, 2022 | |
Events After Reporting Period | |
Events after the reporting period | 33 Events after the reporting period On February 15, 2023, the Company’s Board of Directors approved, subject to ratification by the Company’s shareholders at the 2024 annual shareholders’ meeting in accordance with Luxembourg laws, a cash distribution to the Company’s shareholders of approximately USD 25,000 |
Information by business segme_2
Information by business segment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Information By Business Segment | |
Schedule of segment results and reconciliation to (loss) income before income tax | Schedule of segment results and reconciliation to (loss) income before income tax 2022 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,248,027 2,466,967 (683,583) 2,579 3,033,990 Cost of sales (905,241) (2,190,903) 683,583 17,381 (2,395,180) Gross profit 342,786 276,064 - 19,960 638,810 Selling, general and administrative (64,444) (60,435) - (20,664) (145,543) Mineral exploration and project evaluation (88,947) (9,915) - - (98,862) Impairment loss of long-lived assets (32,276) (236) - - (32,512) Other income and expenses, net (32,787) 43,049 - (12,936) (2,674) Operating income 124,332 248,527 - (13,640) 359,219 Depreciation and amortization 204,514 78,727 - 7,696 290,937 Miscellaneous adjustments 110,993 (825) - - 110,168 Adjusted EBITDA 439,839 326,429 - (5,944) 760,324 Change in fair value of offtake agreement (i) 24,267 Impairment loss of long-lived assets (32,512) Aripuaña’s pre-operating expenses and ramp-up impacts (ii) (87,540) Impairment of other assets (9,302) Loss on sale of long-lived assets (698) Remeasurement in estimates of asset retirement obligations 6,182 Remeasurement adjustment of streaming agreement (iii) (10,565) Miscellaneous adjustments (110,168) Depreciation and amortization (290,937) Share in the results of associates 1,885 Net financial results (133,727) Income before income tax 227,377 2021 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 1,165,584 2,021,787 (636,212) 70,951 2,622,110 Cost of sales (726,653) (1,842,704) 636,212 (55,874) (1,989,019) Gross profit 438,931 179,083 - 15,077 633,091 Selling, general and administrative (64,739) (51,635) - (17,429) (133,803) Mineral exploration and project evaluation (75,550) (9,493) - - (85,043) Other income and expenses, net (32,286) 70,874 - (6,640) 31,948 Operating income 266,356 188,829 - (8,992) 446,193 Depreciation and amortization 174,891 78,861 - 4,959 258,711 Miscellaneous adjustments 35,697 3,234 - - 38,931 Adjusted EBITDA 476,944 270,924 - (4,033) 743,835 Aripuaña’s pre-operating expenses (ii) (8,753) Loss on sale of long-lived assets (4,891) Remeasurement in estimates of asset retirement obligations (6,371) Remeasurement adjustment of streaming agreement (iii) (19,580) Other adjustments 664 Miscellaneous adjustments (38,931) Depreciation and amortization (258,711) Net financial results (136,902) Income before income tax 309,291 2020 Mining Smelting Intersegment sales Adjustments Consolidated Net revenues 748,462 1,547,398 (375,402) 30,471 1,950,929 Cost of sales (627,372) (1,310,206) 375,402 (13,983) (1,576,159) Gross profit 121,090 237,192 - 16,488 374,770 Selling, general and administrative (70,223) (54,021) - (15,147) (139,391) Mineral exploration and project evaluation (48,555) (5,466) - (3,180) (57,201) Impairment loss of long-lived assets (512,706) (44,791) - - (557,497) Other income and expenses, net (21,815) 8,831 - (6,180) (19,164) Operating (loss) income (532,209) 141,745 - (8,019) (398,483) Depreciation and amortization 159,984 82,650 - 1,291 243,925 Miscellaneous adjustments 527,582 45,893 - - 573,475 Adjusted EBITDA 155,357 270,288 - (6,728) 418,917 Impairment loss of long-lived assets (557,497) Aripuaña’s pre-operating expenses (ii) (1,885) Loss on sale of long-lived assets (2,268) Remeasurement in estimates of asset retirement obligations (4,012) Remeasurement adjustment of streaming agreement (iii) (7,813) Miscellaneous adjustments (573,475) Depreciation and amortization (243,925) Net financial results (278,175) Loss before income tax (676,658) (i) This amount represents the change in the fair value of the offtake agreement described in note 16, which is being measured at Fair value through profit and loss (“FVTPL”). This change in the fair value is a non-cash item and has been included in the Company’s Adjusted EBITDA calculation. |
Principles of consolidation (Ta
Principles of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Principles Of Consolidation | |
Schedule of ownership percentages | Schedule of ownership percentages Percentage of shares Company Headquarter Activities 2022 2021 controls Subsidiaries Nexa Recursos Minerais S.A. "NEXA BR" 100 100 Directly Brazil Mining / Smelting Nexa Resources Cajamarquilla S.A. "NEXA CJM" 99.99 99.99 Directly Peru Smelting Nexa Resources US. Inc. 100 100 Directly United States Trading Exploraciones Chimborazo Metals & Mining 100 100 Directly Ecuador Holding and others 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 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 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 Joint-operations Campos Novos Energia S.A. - "Enercan" (ii) - 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. (ii) On November 17 th |
Schedule of balance sheet | Schedule of balance sheet Assets November 30, 2022 Current assets Cash and cash equivalents 1 Financial investments 8,260 Trade accounts receivables 9,137 Other assets 275 Total current assets 17,674 Non-current assets Deferred income tax 1,320 Recoverable income tax 126 Other assets 299 Property, plant and equipment 29,216 Intangible assets 9,382 Total non-current assets 40,342 Total assets 58,016 Liabilities and shareholders’ equity Current liabilities Trade payables 1,014 Dividends payable 8,745 Salaries and payroll charges 35 Tax liabilities 7,917 Other liabilities 788 Total current liabilities 18,499 Non-current liabilities Provisions 311 Deferred income tax 4,658 Other liabilities 2,093 Total non-current liabilities 7,062 Total liabilities 25,561 Shareholders’ equity Attributable to NEXA’s shareholders 32,456 |
Net revenues (Tables)
Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Revenues | |
Schedule of net revenues by billing | Schedule of net revenues by billing 2022 2021 2020 Gross billing 3,440,863 2,974,850 2,138,786 Billing from products 3,330,975 2,898,210 2,074,203 Billing from freight and insurance services 109,888 76,640 64,583 Taxes on sales (402,064) (347,311) (184,714) Return of products sales (4,809) (5,429) (3,143) Net revenues 3,033,990 2,622,110 1,950,929 |
Schedule of net revenues from products | Schedule of net revenues from products 2022 2021 2020 Zinc 2,093,105 1,844,632 1,323,287 Lead 276,438 223,341 161,964 Copper 290,519 305,793 197,756 Silver 57,921 69,691 58,568 Other products 206,119 102,013 144,771 Freight and insurance services 109,888 76,640 64,583 Net revenues 3,033,990 2,622,110 1,950,929 Taxes on sales 402,064 347,311 184,714 Return of products sales 4,809 5,429 3,143 Gross billing 3,440,863 2,974,850 2,138,786 |
Schedule of revenues by geographical location | Schedule of revenues by geographical location 2022 2021 2020 Peru 859,760 774,735 485,850 Brazil 827,173 753,280 583,141 United States 174,526 119,564 116,717 Singapore 166,412 56,879 76,724 Switzerland 124,726 78,770 68,912 Chile 120,060 54,044 48,969 Luxembourg 95,252 97,462 76,072 Argentina 94,433 93,107 56,165 Japan 71,370 58,296 46,719 Taiwan 65,036 53,752 28,764 Colombia 64,013 54,325 34,768 South Africa 55,864 25,126 - Turkey 54,955 34,493 25,005 Austria 48,676 45,057 35,197 South Korea 32,406 118,596 77,429 Malaysia 26,032 25,681 13,948 Belgium 17,905 13,690 30,174 Ecuador 15,433 15,652 9,095 Netherlands 13,623 17,693 11,740 Italy 9,586 14,834 9,895 Vietnam 8,396 14,555 10,798 Other 88,353 102,519 104,847 Net revenues 3,033,990 2,622,110 1,950,929 |
Schedule of revenues by currency | Schedule of revenues by currency 2022 2021 2020 USD 2,251,866 1,914,905 1,388,746 Brazilian Real (“BRL”) 782,124 707,205 562,183 Net revenues 3,033,990 2,622,110 1,950,929 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses By Nature | |
Schedule of expense by nature | Schedule of expense by nature 2022 2021 2020 Cost of sales (i) Selling, general and administrative Mineral exploration and project evaluation Total Total Total Raw materials and consumables used (1,463,472) - - (1,463,472) (1,189,728) (856,300) Third-party services (449,373) (30,878) (65,041) (545,292) (467,071) (407,695) Depreciation and amortization (282,968) (4,064) (37) (287,069) (258,711) (243,925) Employee benefit expenses (182,609) (58,909) (18,030) (259,548) (223,115) (213,865) Others (16,758) (51,692) (15,754) (84,204) (69,240) (50,966) Total (2,395,180) (145,543) (98,862) (2,639,585) (2,207,865) (1,772,751) (i) Includes USD 52,215 (including depreciation of USD 16,377) related to the provision of Aripuanã’s inventory to its net realizable value, for both its ore stockpile and its produced concentrates, as explained in note 18. This amount also includes USD 15,681 (including depreciation of USD 5,911) related to the idleness of the Aripuanã mine’s and plant’s capacity since November given the start of the unit’s revenues. Before November, 2022 these idleness costs were recorded within Other income and expenses, net. |
Mineral exploration and proje_2
Mineral exploration and project evaluation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Exploration And Project Evaluation | |
Schedule of mineral exploration and project evaluation costs | Schedule of mineral exploration and project evaluation costs 2022 2021 2020 Mineral exploration (61,986) (55,594) (38,519) Project evaluation (36,876) (29,449) (18,682) Mineral exploration and Project development (98,862) (85,043) (57,201) |
Other income and expenses, net
Other income and expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income And Expenses Net | |
Schedule of other income and expenses, net | Schedule of other income and expenses, net 2022 2021 2020 ICMS tax incentives (i) 56,697 71,949 - Changes in fair value of offtake agreement - note 16 (d) 24,267 - - Changes in fair value of derivative financial instruments – note 16 (c) 1,363 7,486 948 Loss on sale of property, plant and equipment (698) (4,891) (2,268) Remeasurement of asset retirement and environmental obligations (1,512) (6,664) (900) Slow moving and obsolete inventory (11,511) (985) (1,057) Provision of legal claims (7,664) (13,173) (10,912) Contribution to communities (17,233) (7,070) (2,773) Pre-operating expenses related to Aripuanã (ii) (45,800) (8,753) (1,885) Impairment of other assets (iii) (9,302) - - Others 8,719 (5,951) (317) Total other income and expenses, net (2,674) 31,948 (19,164) (i) In December 2021, the Company adhered to a Brazilian Law that states that government grants of the “Imposto circulação de mercadorias e serviços” (“ICMS”) tax incentives are considered investment subsidies and should be excluded from taxable income for the purpose of calculating the Corporate Income Tax (“IRPJ”) and the Social Contribution on Net Income tax (“CSLL”). In 2022, the Company received USD 56,697 of ICMS tax incentives, which were excluded from the corporate income taxes basis for the year and were considered a permanent difference reducing the income tax to pay in the amount of USD 19,277 as shown in note 11 (a). Additionally, based on this, the Company stopped presenting the expenses and revenues of the received ICMS tax incentives on a net basis and started to separate the expenses in Taxes on Sales and the corresponding revenues in Other income and expenses, net. The presentation on a gross basis became necessary to demonstrate the taxes on sales for Brazilian corporate tax deduction purposes. (ii) Related to Aripuanã’s pre-operating expenses that mainly comprise USD 36,884 (including depreciation of USD 3,868) related to the idleness of the Aripuanã mine’s and plant’s capacity from January to October, the period before the unit started to generate revenues. Since November, these idleness costs were recorded within Cost of Sales. (iii) Amounts mainly related to the write-off of some non-commercial account receivables and taxes, which the Company does not expect to recover. |
Net financial results (Tables)
Net financial results (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Financial Results | |
Schedule of net financial results | Schedule of net financial results 2022 2021 2020 Financial income Interest income on financial investments and cash equivalents 16,913 6,074 7,295 Interest on tax credits 980 1,377 854 Other financial income 7,125 4,021 3,019 Total financial income 25,018 11,472 11,168 Financial expenses Interest on loans and financings (104,689) (96,565) (97,422) Premium paid on bonds repurchase – note 24 (c) (3,277) - (14,481) Interest on other liabilities (35,134) (12,371) (8,051) Interest on contractual obligations - note 29 (a) (5,801) (6,936) (6,182) Interest on lease liabilities (542) (1,272) (1,757) Other financial expenses (19,251) (25,131) (31,866) Total financial expenses (168,694) (142,275) (159,759) Other financial items, net Changes in fair value of loans and financings – note 24 (c) (1,472) 19,380 (8,058) Changes in fair value of derivative financial instruments – note 16 (c) (83) (5,640) (717) Foreign exchange gains (losses) (i) 11,504 (19,839) (120,809) Other financial items, net 9,949 (6,099) (129,584) Net financial results (133,727) (136,902) (278,175) (i) The amounts for years 2022 and 2021 include USD 6,413 10,468 |
Current and deferred income t_2
Current and deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Current And Deferred Income Tax | |
Schedule of reconciliation of income tax benefit (expense) | Schedule of reconciliation of income tax benefit (expense) 2022 2021 2020 Income (loss) before income tax 227,377 309,291 (676,658) Statutory income tax rate 24.94% 24.94% 24.94% Income tax (expense) benefit at statutory rate (56,708) (77,137) 168,759 ICMS tax incentives permanent difference – note 9 19,277 24,463 - Tax effects of translation of non-monetary assets/liabilities to functional currency 6,279 (32,998) (28,174) Withholding tax over subsidiary capital reduction (i) (5,263) (10,526) - Impairment of goodwill (18,247) - (78,866) Special mining levy and special mining tax (13,321) (17,279) (5,909) Difference in tax rate of subsidiaries outside Luxembourg (ii) (10,319) (3,179) 36,390 Unrecognized deferred tax on net operating losses (iii) (66,069) (36,577) (35,849) Other permanent tax differences (6,612) 29 (32,199) Income tax (expense) benefit (150,983) (153,204) 24,152 Current (146,869) (122,081) (63,192) Deferred (4,114) (31,123) 87,344 Income tax (expense) benefit (150,983) (153,204) 24,152 (i) On July 13, 2022, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 105,350 210,703 5,263 10,526 (ii) NEXA’s subsidiaries had a higher taxable profit in 2022 which explains their higher income tax for the year. (iii) On December 31, 2022, Nexa has not recognized deferred tax on net operating losses over a taxable basis of USD 211,780 134,156 |
Schedule of analysis of deferred income tax assets and liabilities | Schedule of analysis of deferred income tax assets and liabilities 2022 2021 Tax credits on net operating losses (i) 127,016 116,284 Uncertain income tax treatments (10,980) (5,279) Tax credits on temporary differences Environmental liabilities 15,764 13,923 Asset retirement obligations 18,175 17,698 Inventory provisions 10,569 7,224 Tax, labor and civil provisions 8,882 7,797 Provision for employee benefits 7,099 7,138 Revaluation of derivative financial instruments 754 506 Other 12,144 15,652 Tax debits on temporary differences Capitalized interest (10,504) (9,261) Foreign exchange gains (25,542) (16,365) Depreciation, amortization and asset impairment (178,041) (189,799) Other (7,852) (5,896) (32,516) (40,378) Deferred income tax assets 166,983 168,205 Deferred income tax liabilities (199,499) (208,583) (32,516) (40,378) (i) As a result of adopting the Law described in note 9, there was also an increase in the amount of USD 19,277 |
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 2022 2021 2020 Balance at the beginning of the year (40,378) 3,188 (48,212) Effect on income (loss) for the year (4,114) (31,123) 87,344 Effect on other comprehensive income (loss) – Fair value adjustment 820 (2,536) 13 Prior years uncertain income tax treatment payment 1,923 - 4,706 Effect on other comprehensive income – Translation effect included in Cumulative translation adjustment 8,481 (9,907) (40,663) Derecognition of Nexa’s share of Enercan's deferred income taxes - note 4 (ii) 3,338 - - Others movements of deferred income tax (2,586) - - Balance at the end of the year (32,516) (40,378) 3,188 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Risk Management | |
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, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Cash and cash equivalents and financial investments Foreign exchange rates BRL 5.2177 61,919 2.06 - - - - - 1,274 (15,479) (30,959) 15,479 30,959 EUR 1.0674 12 ( 6.01 (1) (3) (6) 3 6 - - - - - PEN 3.7895 32,963 ( 5.41 (1,783) (8,240) (16,480) 8,240 16,480 - - - - - CAD 1.3536 641 2.46 - - - - - 16 (160) (321) 160 321 NAD 16.9647 1,862 6.19 - - - - - 115 (466) (931) 466 931 Interest rates BRL - CDI - SELIC 13.65 61,341 ( 1 (8) (2,093) (4,187) 2,093 4,187 - - - - - Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Loans and financings Foreign exchange rates BRL 5.2177 277,852 2.06 - - - - - (5,717) 69,463 138,926 (69,463) (138,926) PEN 3.7895 443 ( 5.41 24 111 222 (111) (222) - - - - - Interest rates BRL - CDI - SELIC 13.65 78,904 ( 1 10 2,693 5,385 (2,693) (5,385) - - - - - USD - LIBOR 4.77 182,067 6 (106) 2,169 4,339 (2,169) (4,339) - - - - - IPCA - TLP 5.79 176,269 ( 29 511 2,551 5,103 (2,551) (5,103) - - - - - TJLP 7.37 22,634 17 (38) 417 834 (417) (834) - - - - - Impacts on income statement Impacts on statement of comprehensive income Scenarios II and III Scenarios II and III Risk factor Quotation at December 31, 2022 Amount Changes from 2022 Scenario I -25% -50% +25% +50% Scenario I -25% -50% +25% +50% Other financial instruments Foreign exchange rates BRL 5.2177 (292) 2.06 (6) 73 146 (73) (146) - - - - - Interest rates BRL - CDI - SELIC 13.65% (292) ( 1 41 986 2,114 (867) (1,633) - - - - - USD - LIBOR 4.77% (2,283) 6 bps (2) 140 280 (140) (280) (0) (36) (71) 36 71 Commodities price Zinc 3,025 (2,283) 1.79 18,733 20,988 41,976 (20,988) (41,976) (4,174) (4,676) (9,353) 4,676 9,353 Copper 8,387 (21,833) ( 8.49 (14,153) (4,483) (360) (55,027) (97,498) - - - - - |
Summary of financial assets and liabilities in foreign currency | Summary of financial assets and liabilities in foreign currency USD amounts of foreign currency balances 2022 2021 Assets Cash, cash equivalents and financial investments 97,397 95,320 Derivative Financial Instruments 143 314 Trade accounts receivables 19,132 34,858 Total assets 116,672 130,492 Liabilities Loans and financings 276,634 272,353 Derivative Financial Instruments 435 380 Trade payables and other liabilities 182,275 200,983 Lease liabilities 2,738 7,921 Use of public assets 23,263 24,384 Total liabilities 485,345 506,021 Net exposure (368,673) (375,529) |
Schedule of credit quality of financial assets | Schedule of credit quality of financial assets 2022 2021 Local rating Global rating Total Local rating Global rating Total Cash and cash equivalents AAA 191,269 - 191,269 117,439 - 117,439 AA+ - - - - - - AA 10,259 - 10,259 19 - 19 AA- - 15,958 15,958 - 21,252 21,252 A+ - 117,968 117,968 35,923 318,120 354,043 A - 93,117 93,117 25,354 115,653 141,007 A- - 54,737 54,737 - 104,528 104,528 No rating (i) 8,451 6,067 14,518 2,660 2,869 5,529 209,979 287,847 497,826 181,395 562,422 743,817 Financial investments AAA 18,006 - 18,006 16,849 - 16,849 AA - - - 2,353 - 2,353 No rating (i) 56 - 56 - - - 18,062 - 18,062 19,202 - 19,202 Derivative financial instruments AAA 144 - 144 314 - 314 A+ - 3,061 3,061 - 8,491 8,491 A- - 4,238 4,238 - 7,589 7,589 144 7,299 7,443 314 16,080 16,394 (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-. |
Summary of estimated future cash flow | Summary of estimated future cash flow 2022 Less than 1 year Between 1 and 3 years Between 3 and 5 years Over 5 years Total Loans and financings 136,348 391,201 981,759 704,944 2,214,252 Lease liabilities 4,105 1,410 - - 5,515 Derivative financial instruments 9,712 215 86 5 10,018 Trade payables and other liabilities 413,856 12,154 - - 426,010 Confirming payables 216,392 - - - 216,392 Salaries and payroll charges 79,078 - - - 79,078 Dividends payable 7,922 - - - 7,922 Related parties 487 546 - - 1,033 Asset retirement and environmental obligations 19,360 29,625 28,868 241,258 319,111 Use of public assets 2,484 4,972 4,890 16,584 28,930 889,744 440,123 1,015,603 962,791 3,308,261 2021 Less than 1 year Between 1 and 3 years Between 3 and 5 years 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 85,021 243,076 424,802 Use of public assets 1,368 3,244 3,657 21,840 30,109 920,056 515,737 335,975 1,704,235 3,476,003 |
Summary of leverage ratio | Summary of leverage ratio Note 2022 2021 2020 Loans and financings 24 (a) 1,669,259 1,699,315 2,024,314 Derivative financial instruments 16 (a) 2,575 6,531 (5,106) Lease liabilities 23 (b) 5,021 19,639 25,689 Cash and cash equivalents 15 (497,826) (743,817) (1,086,163) Financial investments (18,062) (19,202) (35,044) Net debt (i) 1,160,967 962,466 923,690 Net income (loss) for the year 76,394 156,087 (652,506) Plus (less): Depreciation and amortization 21, 22 and 23 290,937 258,711 243,925 Share in the results of associates (1,885) Net financial results 10 133,727 136,902 278,175 Income tax expense (benefit) 11 (a) 150,983 153,204 (24,152) Miscellaneous adjustments 2 110,168 38,931 573,475 Adjusted EBITDA (ii) 760,324 743,835 418,917 Leverage ratio (Net debt/Adjusted EBITDA) 1.53 1.29 2.20 (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, 2022 | |
Financial Instruments | |
Schedule of financial instruments breakdown by category | Schedule of financial instruments breakdown by category 2022 Assets per balance sheet Note Amortized cost Fair value through profit or loss Fair value through other comprehensive income Total Cash and cash equivalents 15 497,826 - - 497,826 Financial investments 18,062 - - 18,062 Other financial instruments 16 (a) - 7,443 - 7,443 Trade accounts receivables 17 53,123 170,617 - 223,740 Investments in equity instruments 14 (c) - - 7,115 7,115 Related parties (i) 20 (a) 2 - - 2 569,013 178,060 7,115 754,188 2022 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) 1,578,864 90,395 - 1,669,259 Lease liabilities 23 (b) 5,021 - - 5,021 Other financial instruments 16 (a) - 31,851 - 31,851 Trade payables 25 413,856 - - 413,856 Confirming payables 26 216,392 - - 216,392 Use of public assets (ii) 23,263 - - 23,263 Related parties (ii) 20 (a) 1,033 - - 1,033 2,238,429 122,246 - 2,360,675 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 Other financial instruments 16 (a) - 16,394 - 16,394 Trade accounts receivables 17 84,969 146,205 - 231,174 Investments in equity instruments 14 (c) - - 3,723 3,723 Related parties (i) 20 (a) 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 Other financial instruments 16 (a) - 22,925 - 22,925 Trade payables 25 411,818 - - 411,818 Confirming payables 26 232,860 - - 232,860 Use of public assets (ii) 24,384 - - 24,384 Related parties (ii) 20 (a) 393 - - 393 2,299,732 111,602 - 2,411,334 (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, 2022 | |
Fair Value Estimates | |
Classification of financial assets and liabilities in the fair value hierarchy | Classification of financial assets and liabilities in the fair value hierarchy 2022 Note Level 1 Level 2 Total Assets Other financial instruments 16 (a) - 7,443 7,443 Trade accounts receivables - 170,617 170,617 Investments in equity instruments (i) 14 (c) 7,115 - 7,115 7,115 178,060 185,175 Liabilities Other financial instruments 16 (a) - 31,851 31,851 Loans and financings designated at fair value (ii) - 90,395 90,395 - 122,246 122,246 2021 Note Level 1 Level 2 Total Assets Other financial instruments 16 (a) - 16,394 16,394 Trade accounts receivables - 146,205 146,205 Investments in equity instruments (i) 14 (c) 3,723 - 3,723 3,723 162,599 166,322 Liabilities Other financial instruments 16 (a) - 22,925 22,925 Loans and financings designated at fair value (ii) - 88,677 88,677 - 111,602 111,602 (i) To determine the fair value of the investments in equity instruments, the Company uses the share’s quotation as of the last day of the reporting period. (ii) Loans and financings are measured at amortized cost, except for certain contracts for which the Company has elected the fair value option. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Schedule of cash and cash equivalents 2022 2021 Cash and banks 330,653 276,761 Term deposits 167,173 467,056 Total cash and cash equivalents 497,826 743,817 |
Other financial instruments (Ta
Other financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Schedule of Derivative financial instruments | Schedule of Derivative financial instruments 2022 2021 Derivatives financial instruments Current assets 7,380 16,292 Non-current assets 63 102 Current liabilities (9,711) (22,684) Non-current liabilities (307) (241) Derivatives financial instruments, net (2,575) (6,531) Offtake agreement measured at FVTPL Current liabilities (1,724) - Non-current liabilities (20,109) - Offtake agreement measured at FVTPL, net (21,833) - |
Schedule of fair value by strategy | Schedule of fair value by strategy 2022 2021 Strategy Per Unit Notional Fair value Notional Fair value Mismatches of quotational periods Zinc forward ton 209,319 (2,357) 215,809 (9,898) (2,357) (9,898) Sales of zinc at a fixed price Zinc forward ton 8,297 74 8,787 3,433 74 3,433 Interest rate risk IPCA vs. CDI BRL 226,880 (292) 226,880 (66) (292) (66) (2,575) (6,531) |
Schedule of changes in fair value | Schedule of changes in fair value Strategy Inventory Cost of sales Net revenues Other income and expenses, net Net financial results Other comprehensive income Realized (loss) gain Mismatches of quotational periods (1,014) 19,394 (2,868) 743 - (1,329) 7,385 Sales of zinc at a fixed price - - (2,859) 620 - - 1,120 Interest rate risk – IPCA vs. CDI - - - - (83) - 143 2022 (1,014) 19,394 (5,727) 1,363 (83) (1,329) 8,648 2021 1,146 (37,963) 9,709 7,486 (5,640) 488 (13,137) (d) Offtake agreement measured at FVTPL: Changes in fair value |
Schedule of changes in fair value offtake agreement | Schedule of changes in fair value offtake agreement 2022 2021 Inception date 46,100 - Changes in fair value (24,267) - Balance at the end of year 21,833 - Notional (ton) 30,810 - |
Trade accounts receivables (Tab
Trade accounts receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Accounts Receivables | |
Schedule of composition of trade accounts receivables | Schedule of composition of trade accounts receivables 2022 2021 Trade accounts receivables 227,265 233,623 Related parties - note 20 801 1,016 Impairment of trade accounts receivables (4,326) (3,465) 223,740 231,174 |
Schedule of changes in impairment of trade accounts receivables | Schedule of changes in impairment of trade accounts receivables 2022 2021 Balance at the beginning of the year (3,465) (3,179) Additions (1,793) (1,586) Reversals 1,005 1,206 Foreign exchange (losses) gains (73) 94 Balance at the end of the year (4,326) (3,465) |
Schedule of analysis of trade accounts receivables by currency | Schedule of analysis of trade accounts receivables by currency 2022 2021 USD 204,608 196,316 BRL 18,740 34,464 Other 392 394 223,740 231,174 |
Schedule of aging of trade accounts receivables | Schedule of aging of trade accounts receivables 2022 2021 Current 212,814 222,083 Up to 3 months past due 10,495 9,201 From 3 to 6 months past due 2,181 51 Over 6 months past due 2,576 3,304 228,066 234,639 Impairment of trade accounts receivable (4,326) (3,465) 223,740 231,174 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Abstract | |
Schedule of inventories | Schedule of inventories 2022 2021 Finished products 142,935 157,285 Semi-finished products (i) 163,805 60,315 Raw materials 68,497 90,087 Auxiliary materials and consumables 115,562 94,564 Inventory provisions (95,602) (29,749) Total 395,197 372,502 (i) Semi-finished products in December 2022 include the stockpile produced during Aripuanã’s commissioning phase in the total amount of USD 40,303. In 2021, the amount of USD 23,009 of the ore stockpile that was included in raw material was reclassified as a semi-finished products. |
Schedule of changes in the provision for obsolescence | Schedule of changes in the provision for obsolescence 2022 2021 Balance at the beginning of the year (29,749) (29,074) Additions (i) (69,761) (15,094) Reversals 4,634 13,986 Exchange variation (losses) gains (726) 433 Balance at the end of the year (95,602) (29,749) (i) The main amount is related to the provision of Aripuanã’s inventory to its net realizable value for both its ore stockpile and its produced concentrates in the total amount of USD 52,215 16,377 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets | |
Schedule of the composition of other assets | Schedule of the composition of other assets 2022 2021 Other recoverable taxes 139,168 128,377 Advances to third parties 7,057 8,545 Prepaid expenses 9,858 10,361 Judicial deposits 16,753 5,446 Works-for-taxes program 7,902 5,338 Other assets 29,222 21,636 Total other assets 209,960 179,703 Current assets 75,486 81,119 Non-current assets 134,474 98,584 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Parties | |
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 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Parent Votorantim S.A. - - 2 2 765 1,102 - - - - Related parties Andrade Gutierrez Engenharia S.A. - - - - 3,353 1,890 - - - - Auren Comercializadora de Energia Ltda. 1 302 - - 976 945 - - - - Campos Novos Energia S.A. - - - - 9,652 - - - - - Companhia Brasileira de Alumínio 187 158 - - 263 264 - - - - Votorantim Cimentos S.A. 607 551 - - 163 64 - - - - Votorantim International CSC S.A.C - - - - 1 306 - - 487 152 Other 6 5 - - 164 240 7,922 11,441 546 241 801 1,016 2 2 15,337 4,811 7,922 11,441 1,033 393 Current 801 1,016 - - 15,337 4,811 7,922 11,441 - - Non-current - - 2 2 - - - - 1,033 393 801 1,016 2 2 15,337 4,811 7,922 11,441 1,033 393 (b) Transactions Sales Purchases Profit and loss 2022 2021 2020 2022 2021 2020 Parent Votorantim S.A. - - - 4,704 3,735 4,378 Related parties Andrade Gutierrez Engenharia S.A. (ii) - - - 38,907 41,498 26,280 Auren Comercializadora de Energia Ltda. 744 5,993 9,740 4,974 16,207 7,721 Campos Novos Energia S.A. - - - 4,954 - - Companhia Brasileira de Alumínio 9,708 8,988 7,828 8,891 3,736 1,156 Votorantim Cimentos S.A. - - - 3,078 661 524 Votorantim International CSC S.A.C - - - 12,480 4,278 6,638 Other - 113 11 1,157 1,120 582 10,452 15,094 17,579 79,145 71,235 47,279 (i) 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 2022 2021 Short-term benefits 7,371 6,602 Other long-term benefits 158 664 Total key management compensation 7,529 7,266 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
Schedule of detailed information about property, plant and equipment | Schedule of detailed information about property, plant and equipment 2022 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 1,054,413 2,330,748 874,776 202,242 181,528 35,266 4,678,973 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) (16,291) (15,027) (2,591,243) Balance at the beginning of the year 438,985 567,371 812,095 83,803 165,237 20,239 2,087,730 Additions (ii) 4 706 381,223 22,252 479 56 404,720 Disposals and write-offs (568) (369) (430) - - (82) (1,449) Depreciation (82,293) (109,009) - (5,169) (2,120) (1,302) (199,893) Impairment (loss) reversal of long-lived assets - note 31 19,802 7,513 (6,168) - (39,910) - (18,763) Derecognition of Nexa’s share of Enercan's property, plant and equipment - note 4 (ii) (19,688) (8,711) (634) - - (183) (29,216) Foreign exchange effects 18,577 23,855 37,280 3,686 1,215 839 85,452 Transfers (v) – note 22 466,513 284,635 (767,561) - 3,524 8,608 (4,281) Remeasurement of asset retirement obligations - - - (29,025) - - (29,025) Balance at the end of the year 841,332 765,991 455,805 75,547 128,425 28,175 2,295,275 Cost 1,512,360 2,636,582 521,191 200,665 221,077 44,094 5,135,969 Accumulated depreciation and impairment (671,028) (1,870,591) (65,386) (125,118) (92,652) (15,919) (2,840,694) Balance at the end of the year 841,332 765,991 455,805 75,547 128,425 28,175 2,295,275 Average annual depreciation rates % 4 8 - UoP UoP 2021 Dam and buildings Machinery, equipment, and facilities Assets and projects under construction Asset retirement obligation 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 42,739 - 1,576 552,905 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 - - - (36,860) - - (36,860) 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 2,330,748 874,776 202,242 181,528 35,266 4,678,973 Accumulated depreciation and impairment (615,428) (1,763,377) (62,681) (118,439) (16,291) (15,027) (2,591,243) 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 (i) Reclassification of USD 31,851 (ii) Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 15,946 19,614 (iii) Only the amounts related to the operating unit Atacocha are being depreciated under the UoP method. (iv) Amount includes: (i) in 2021 a transfer from Assets and projects under construction to Inventories (raw materials) of USD 23,009 748 (v) Mainly related to the transfers from Assets and projects under construction to the corresponding group of assets, given the ramp-up process in Aripuanã’s mining unit as explained in note 1. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Schedule of reconciliation of changes in intangible assets | Schedule of reconciliation of changes in intangible assets 2022 Goodwill (iv) Rights to use natural resources Other Total Balance at the beginning of the year 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 beginning of the year 406,228 612,270 38,273 1,056,771 Additions (ii) - 57,529 - 57,529 Amortization - (76,695) (5,639) (82,334) Impairment (loss) reversal of long-lived assets – note 31 (61,856) 48,107 - (13,749) Derecognition of Nexa’s share of Enercan's intangible assets - note 4 (ii) - - (9,382) (9,382) Foreign exchange effects 195 3,661 (45) 3,811 Transfers – note 21 - 2,546 1,735 4,281 Balance at the end of the year 344,567 647,418 24,942 1,016,927 Cost 611,909 1,855,014 65,246 2,532,169 Accumulated amortization and impairment (267,342) (1,207,596) (40,304) (1,515,242) Balance at the end of the year 344,567 647,418 24,942 1,016,927 Average annual depreciation rates % - UoP - 2021 Goodwill (iv) 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 - 31,851 406,434 680,721 21,101 1,108,256 Additions (iii) - - 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 beginning 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 - (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, which is entirely 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 related to the offtake agreement signed on January 25, 2022 to sell 100% of the copper concentrate to be produced by Aripuanã for a specified period. As explained in note 16, this agreement replaced the obligation of future royalty payments arising from the acquisition of mining rights by the Company for the Aripuanã project. The fair value of this agreement on its inception date, in the amount of USD 46,100 (iii) As described in the audited consolidated financial statements for the year ended on December 31, 2021, 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 the Generation Scaling Factor (“GSF”). 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). (iv) At December 31, 2022, the balances of the Company’s recognized goodwill were: (i) USD 95,484 249,082 |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Buildings Machinery, equipment, and facilities IT equipment Vehicles Total Total Balance at the beginning of the year Cost 5,731 17,560 5,427 21,286 50,004 47,562 Accumulated amortization (3,844) (12,757) (5,427) (15,286) (37,314) (28,693) Balance at the beginning of the year 1,887 4,803 - 6,000 12,690 18,869 New contracts 1,547 189 282 - 2,018 5,174 Amortization (1,235) (2,330) (84) (5,061) (8,710) (10,303) Remeasurement 563 (98) - (46) 419 (290) Foreign exchange effects 71 148 - 259 478 (761) Balance at the end of the year 2,833 2,712 198 1,152 6,895 12,690 Cost 7,300 18,106 282 18,830 44,518 50,004 Accumulated amortization (4,467) (15,394) (84) (17,678) (37,623) (37,314) Balance at the end of the year 2,833 2,712 198 1,152 6,895 12,690 Average annual amortization rates % 31 34 33 34 |
Summary of lease liabilities - changes in the year | Summary of lease liabilities - changes in the year 2022 2021 Balance at the beginning of the year 19,638 25,689 New contracts 2,018 5,174 Payments of lease liabilities (17,091) (9,827) Interest paid on lease liabilities (994) (1,415) Remeasurement 419 (302) Accrued interest – note 10 542 1,272 Foreign exchange effects 489 (952) Balance at the end of the year 5,021 19,638 Current liabilities 3,661 16,246 Non-current liabilities 1,360 3,393 |
Loans and financings (Tables)
Loans and financings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans And Financings | |
Schedule of analysis of the loans and financings | Schedule of analysis of the loans and financings Total Fair Value 2022 2021 2022 2021 Type Average interest rate Current Non-current Total Total Total Total Eurobonds – USD Pre-USD 5.84 18,656 1,191,827 1,210,483 1,338,334 1,162,741 1,440,920 BNDES TJLP + 2.82 % 3.10 5.46 26,105 190,211 216,316 215,801 183,452 180,565 Export credit notes LIBOR + 1.54 134.20 2.5 5,500 227,290 232,790 135,077 227,201 136,389 Debentures 107.5 - - - 4,916 - 4,901 Other 579 9,091 9,670 5,187 7,054 4,192 50,840 1,618,419 1,669,259 1,699,315 1,580,448 1,766,967 |
Schedule of movements in loans and financings | Schedule of movements in loans and financings 2022 2021 Balance at the beginning of the year 1,699,315 2,024,314 New loans and financings 95,621 59,771 Debt issue costs (63) (178) Payments of loans and financings (24,639) (251,044) Bonds repurchase (128,470) - Prepayment of fair value debt - (90,512) Foreign exchange effects 22,695 (21,066) Changes in fair value of financing liabilities related to changes (521) 5,066 Changes in fair value of loans and financings 1,472 (10,784) Write-off of fair value of loans and financings - (8,596) Interest accrual 110,679 113,456 Interest paid on loans and financings (109,263) (121,112) Amortization of debt issue costs 2,433 - Balance at the end of the year 1,669,259 1,699,315 |
Schedule of maturity profile of the loans and financings | Schedule of maturity profile of the loans and financings 2022 2023 2024 2025 2026 2027 As from Total Eurobonds – USD (i) 18,656 (2,149) (2,216) (2,287) 698,561 499,918 1,210,483 BNDES 26,105 24,773 23,722 21,154 13,454 107,108 216,316 Export credit notes 5,500 88,907 48,382 - 90,000 1 232,790 Other 579 97 1,285 1,285 1,285 5,139 9,670 50,840 111,628 71,173 20,152 803,300 612,166 1,669,259 (i) The negative balances refer to related funding costs (fee) amortization. |
Schedule of analysis of the loans and financings, by currency | Schedule of analysis of the loans and financings, by currency 2022 2021 Current Non-current Total Total USD 21,861 1,370,764 1,392,625 1,426,962 BRL 28,535 247,655 276,190 270,571 Other 444 - 444 1,782 50,840 1,618,419 1,669,259 1,699,315 |
Schedule of analysis of the loans and financings, by index | Schedule of analysis of the loans and financings, by index 2022 2021 Current Non-current Total Total Fixed rate 19,144 1,191,828 1,210,972 1,340,247 LIBOR 1,474 88,937 90,411 88,677 TLP 14,348 160,924 175,272 170,324 BNDES SELIC 7,943 19,853 27,796 29,680 CDI 2,369 48,353 50,722 51,316 SOFR 1,657 90,000 91,657 - TJLP 3,830 18,524 22,354 19,071 Other 75 - 75 - 50,840 1,618,419 1,669,259 1,699,315 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Payables | |
Schedule of trade payables | Schedule of trade payables 2022 2021 Trade payables 398,519 407,007 Related parties - note 20 15,337 4,811 Trade payables 413,856 411,818 |
Asset retirement and environm_2
Asset retirement and environmental obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement And Environmental Obligations | |
Summary of changes in asset retirement and environmental obligations | Summary of changes in asset retirement and environmental obligations 2022 2021 Asset retirement obligations Environmental obligations Total Total Balance at the beginning of the year 221,710 42,441 264,151 276,046 Additions (ii) 26,116 8,920 35,036 51,893 Payments (14,879) (10,514) (25,393) (26,255) Foreign exchange effects 6,034 3,126 9,160 (7,851) Interest accrual 20,014 3,648 23,662 9,667 Remeasurement - discount rate (i) / (ii) (39,072) (1,225) (40,297) (39,350) Balance at the end of the year 219,923 46,396 266,319 264,151 Current liabilities 18,658 4,988 23,646 31,953 Non-current liabilities 201,265 41,408 242,673 232,197 (i) As of December 31, 2022, the credit risk-adjusted rate used for Peru was between 10.92% and 12.04% (December 31, 2021: 3.54% and 7.28%) and for Brazil was between 8.22% and 8.61% (December 31, 2021: 7.68% and 8.67%). (ii) The change in the period ended on December 31, 2022, was mainly due to the time change in the expected disbursements on decommissioning obligations in certain operations, in accordance with updates in their asset retirement and environmental obligations studies, and by the increase in the discount rates, as described above. In this way, asset retirement obligations for operational assets, decreased in an amount of USD 6,773 (December 31, 2021: increase of USD 5,879) as shown in note 21; and asset retirement and environmental obligations for non-operational assets expense in USD 1,512 (December 31, 2021: expense of USD 6,664) as shown in note 9. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Schedule of provisions | Schedule of provisions 2022 2021 Tax Labor Civil Environmental Total Total Balance at the beginning of the year 4,535 18,674 703 12,916 36,828 30,896 Additions (i) 4,282 5,016 724 3,126 13,148 33,305 Derecognition of Nexa’s share of Enercan’s provisions – note 4 (ii) (311) - - - (311) - Reversals (722) (3,288) (409) (1,065) (5,484) (20,132) Interest accrual 547 1,494 (383) 96 1,754 746 Payments (802) (1,936) (1,180) (666) (4,584) (5,327) Foreign exchange effects 398 1,117 89 662 2,266 (2,385) Other 232 (557) 700 (95) 280 (275) Balance at the end of the year 8,159 20,520 244 14,974 43,897 36,828 |
Schedule of provisions and judicial deposits | Schedule of provisions and judicial deposits 2022 2021 Judicial deposits Provisions Carrying amount Judicial deposits Provisions Carrying amount Tax (1,200) 9,359 8,159 (1,528) 6,062 4,534 Labor (3,399) 23,919 20,520 (2,752) 21,431 18,679 Civil - 244 244 (751) 1,451 700 Environmental - 14,974 14,974 - 12,915 12,915 Balance at the end of the year (4,599) 48,496 43,897 (5,031) 41,859 36,828 |
Schedule of contingent liabilities | Schedule of contingent liabilities 2022 2021 Tax (i) 134,637 156,779 Labor (ii) 41,454 36,215 Civil (iii) 16,946 14,618 Environmental (iv) 112,541 97,027 305,578 304,639 |
Contractual obligations (Tables
Contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contractual Obligations | |
The changes in the contractual obligation are shown below | The changes in the contractual obligation are shown below 2022 2021 Balance at the beginning of the year 147,232 166,025 Revenues recognition upon ore delivery (31,438) (45,309) Remeasurement adjustment (i) 10,565 19,580 Accretion for the year – note 10 5,801 6,936 Balance at the end of year 132,160 147,232 Current 26,188 33,156 Non-current 105,972 114,076 |
Shareholders_ equity (Tables)
Shareholders’ equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 (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 related to changes in the Company’s own credit risk - - (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 related to changes in the Company’s own credit risk - - (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) Translation adjustment on foreign subsidiaries 65,243 - - 65,243 Cash flow hedge accounting - (331) - (331) Changes in fair value of financial liabilities related to changes in the Company’s own credit risk - - 343 343 Changes in fair value of investments in equity instruments - - (3,608) (3,608) At December 31, 2022 (269,075) 1,262 (14,213) (282,026) Attributable to NEXA's shareholders (243,124) Attributable to non-controlling interests (38,902) |
Schedule of earnings per share information | Schedule of earnings per share information 2022 2021 2020 Net income (loss) for the year attributable to NEXA's shareholders 49,101 114,332 (559,247) Weighted average number of outstanding shares – in thousands 132,439 132,439 132,439 Earnings (losses) per share - USD 0.37 0.86 (4.22) |
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. 2022 2021 2022 2021 Current assets 658,099 680,609 9,822 23,070 Current liabilities 260,980 288,736 8,820 13,279 Current net assets 397,119 391,873 1,002 9,791 Non-current assets 1,282,556 1,345,420 68,984 53,516 Non-current liabilities 409,106 566,059 - - Non-current net assets 873,449 779,361 68,984 53,516 Net assets 1,270,568 1,171,234 69,985 63,307 Accumulated non-controlling interests 217,167 213,997 50,842 44,011 Summarized income statement NEXA PERU Pollarix S.A. 2022 2021 2022 2021 Net revenues 892,389 828,571 6,906 20,996 Net income for the year 106,501 94,706 29,635 39,136 Other comprehensive income (loss) 7,308 (940) 9,686 (2,977) Total comprehensive income for the year 113,809 93,766 39,321 36,159 Comprehensive income attributable to non-controlling interests 1,199 12,991 30,870 24,947 Dividends paid to non-controlling interests - - 24,592 23,730 Summarized statement of cash flows NEXA PERU Pollarix S.A. 2022 2021 2022 2021 Net cash provided by (used in) operating activities 196,850 179,842 4,474 (8,522) Net cash used in investing activities (86,969) (93,632) - - Net cash (used in) provided by financing activities (137,426) (92,905) (6,945) 8,997 (Decrease) increase in cash and cash equivalents (28,582) (8,542) (2,471) 475 |
Impairment of long-lived asse_2
Impairment of long-lived assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Impairment Of Long-lived Assets | |
Schedule of key assumptions used in impairment test | Schedule of key assumptions used in impairment test 2022 2021 2020 Long-term zinc price (USD/t) 2,787 2,724 2,449 Discount rate (Peru) 6.93 6.22 7.22 Brownfield projects - LOM (years) (i) From 5 14 from 4 13 From 5 14 (i) As part of the Cerro Lindo CGU recoverable amount, the Company has included the value of its greenfield projects based on market multiples as disclosed above in the FVLCD section. No impairment indicator was identified for these greenfield projects, other than for Shalipayco and Pukaqaqa. |
Schedule of allocation of impairment loss identified at the CGU level | Schedule of allocation of impairment loss identified at the CGU level Carrying amount prior to impairment reversal Impairment reversal Carrying amount after impairment reversal Property, plant and equipment 124,576 31,258 155,834 Intangible assets 167,913 48,272 216,185 Other net liabilities (100,379) - (100,379) 192,110 79,529 271,640 |
Schedule of Impairment loss | Schedule of Impairment loss Carrying amount prior to impairment Impairment Carrying amount after impairment Goodwill- Mining Peru 310,938 (61,856) 249,082 |
Schedule of CGU recoverable carrying amount | Schedule of CGU recoverable carrying amount CGU Excess over recoverable amount Decrease in Long term Zinc (USD/t) Increase in WACC Change Price Change Rate Cerro Lindo 179,440 ( 28.1 2,003 175.5 19.1 Cajamarquilla 407,027 ( 15.2 2,246 41.9 9.8 |
General information (Details Na
General information (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
General Information | |
Percentage of equity interest held by the controlling shareholder (as a percent) | 64.68% |
Information by business segme_3
Information by business segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 | |
Cost of sales | 2,395,180 | 1,989,019 | 1,576,159 | |
Gross profit | 638,810 | 633,091 | 374,770 | |
Other income and expenses, net | (2,674) | 31,948 | (19,164) | |
Operating (loss) income | 359,219 | 446,193 | (398,483) | |
Adjusted EBITDA | [1] | 760,324 | 743,835 | 418,917 |
Impairment loss of long-lived assets | 32,512 | 557,497 | ||
Impairment of other assets | [2] | (9,302) | ||
Share in the results of associates | 1,885 | |||
Net financial results | (133,727) | (136,902) | (278,175) | |
(Loss) income before income tax | 227,377 | 309,291 | (676,658) | |
Operating segments [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | 3,033,990 | 2,622,110 | 1,950,929 | |
Cost of sales | (2,395,180) | (1,989,019) | (1,576,159) | |
Gross profit | 638,810 | 633,091 | 374,770 | |
Selling, general and administrative | (145,543) | (133,803) | ||
Mineral exploration and project evaluation | (98,862) | |||
Impairment loss of long-lived assets | (32,512) | (557,497) | ||
Other income and expenses, net | (2,674) | 31,948 | (19,164) | |
Operating (loss) income | 359,219 | 446,193 | (398,483) | |
Depreciation and amortization | 290,937 | 258,711 | 243,925 | |
Gains on sales of investments and other miscellaneous adjustments (i) | (110,168) | (38,931) | (573,475) | |
Gains on sales of investments and other miscellaneous adjustments (i) | 110,168 | 38,931 | 573,475 | |
Adjusted EBITDA | 760,324 | 743,835 | 418,917 | |
Change in fair value of offtake agreement | 24,267 | |||
Impairment loss of long-lived assets | (32,512) | |||
Aripuanas pre-operating expenses and ramp-up impacts | (87,540) | (1,885) | ||
Impairment of other assets | (9,302) | |||
Loss on sale of long-lived assets | (698) | (4,891) | (2,268) | |
Remeasurement in estimates of asset retirement obligations | 6,182 | (6,371) | (4,012) | |
Remeasurement adjustment of streaming agreement | (10,565) | (19,580) | (7,813) | |
Depreciation and amortization | (290,937) | |||
Share in the results of associates | 1,885 | |||
Net financial results | (133,727) | (136,902) | (278,175) | |
(Loss) income before income tax | 227,377 | 309,291 | (676,658) | |
Mineral exploration and project evaluation | (85,043) | |||
[custom:OperatingsExpenses] | (8,753) | |||
Other adjustments | 664 | |||
Depreciation and amortization | (258,711) | |||
Selling, general and administrative | 139,391 | |||
Selling, general and administrative | (139,391) | |||
Mineral exploration and project evaluation | (57,201) | |||
Depreciation and amortization | (243,925) | |||
Operating segments [member] | Mining segment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | 1,248,027 | 1,165,584 | 748,462 | |
Cost of sales | (905,241) | (726,653) | (627,372) | |
Gross profit | 342,786 | 438,931 | 121,090 | |
Selling, general and administrative | (64,444) | (64,739) | ||
Mineral exploration and project evaluation | (88,947) | |||
Impairment loss of long-lived assets | (32,276) | (512,706) | ||
Other income and expenses, net | (32,787) | (32,286) | (21,815) | |
Operating (loss) income | 124,332 | 266,356 | (532,209) | |
Depreciation and amortization | 204,514 | 174,891 | 159,984 | |
Gains on sales of investments and other miscellaneous adjustments (i) | 110,993 | 35,697 | 527,582 | |
Adjusted EBITDA | 439,839 | 476,944 | 155,357 | |
Mineral exploration and project evaluation | (75,550) | |||
Selling, general and administrative | (70,223) | |||
Selling, general and administrative | 70,223 | |||
Mineral exploration and project evaluation | (48,555) | |||
Operating segments [member] | Smelting segment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | 2,466,967 | 2,021,787 | 1,547,398 | |
Cost of sales | (2,190,903) | (1,842,704) | (1,310,206) | |
Gross profit | 276,064 | 179,083 | 237,192 | |
Selling, general and administrative | (60,435) | (51,635) | ||
Mineral exploration and project evaluation | (9,915) | |||
Impairment loss of long-lived assets | (236) | (44,791) | ||
Other income and expenses, net | 43,049 | 70,874 | 8,831 | |
Operating (loss) income | 248,527 | 188,829 | 141,745 | |
Depreciation and amortization | 78,727 | 78,861 | 82,650 | |
Gains on sales of investments and other miscellaneous adjustments (i) | (825) | 3,234 | 45,893 | |
Adjusted EBITDA | 326,429 | 270,924 | 270,288 | |
Mineral exploration and project evaluation | (9,493) | |||
Selling, general and administrative | (54,021) | |||
Selling, general and administrative | 54,021 | |||
Mineral exploration and project evaluation | (5,466) | |||
Elimination of intersegment amounts [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | (683,583) | (636,212) | (375,402) | |
Cost of sales | 683,583 | 636,212 | 375,402 | |
Material reconciling items [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net revenues | 2,579 | 70,951 | 30,471 | |
Cost of sales | 17,381 | (55,874) | (13,983) | |
Gross profit | 19,960 | 15,077 | 16,488 | |
Selling, general and administrative | (20,664) | (17,429) | ||
Other income and expenses, net | (12,936) | (6,640) | (6,180) | |
Operating (loss) income | (13,640) | (8,992) | (8,019) | |
Depreciation and amortization | 7,696 | 4,959 | 1,291 | |
Adjusted EBITDA | $ (5,944) | $ (4,033) | (6,728) | |
Selling, general and administrative | (15,147) | |||
Selling, general and administrative | 15,147 | |||
Mineral exploration and project evaluation | $ (3,180) | |||
[1]Adjusted EBITDA for capital management calculation uses the same assumptions described in note 2 for Adjusted EBITDA by segment.[2]Amounts mainly related to the write-off of some non-commercial account receivables and taxes, which the Company does not expect to recover. |
Principles of consolidation (De
Principles of consolidation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Nexa Recursos Minerais SANEXABR [member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of entity's operations and principal activities | Mining / Smelting | ||
Nexa Resources Cajamarquilla S A N E X A C J M [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of entity's operations and principal activities | Smelting | ||
Nexa Recursos Minerais SANEXABR [member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Directly | ||
Country of incorporation of subsidiary | Brazil | ||
Nexa Resources Cajamarquilla S A N E X A C J M [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Directly | ||
Country of incorporation of subsidiary | Peru | ||
Nexa Resources U S Inc [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Directly | ||
Country of incorporation of subsidiary | United States | ||
Description of nature of entity's operations and principal activities | Trading | ||
Exploraciones Chimborazo Metals And Mining [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Directly | ||
Country of incorporation of subsidiary | Ecuador | ||
Description of nature of entity's operations and principal activities | Holding and others | ||
L.d.o.s.p.e. empreendimentos e participaes ltda. [member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Energy | ||
L.d.q.s.p.e. empreendimentos e participaes ltda. [member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Energy | ||
L.d.r.s.p.e. Empreendimentos E Participaes Ltda. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Energy | ||
Minerao Dardanelos Ltda. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Mining projects | ||
Minerao Santa Maria Ltda. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Mining projects | ||
Pollarix S. A. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | [1] | 33.33% | 33.33% |
Type of control | [1] | Indirectly | |
Country of incorporation of subsidiary | [1] | Brazil | |
Description of nature of entity's operations and principal activities | [1] | Holding and others | |
Karmin Holding Ltda [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Holding and others | ||
Mineracao Rio Aripuana Ltda [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Brazil | ||
Description of nature of entity's operations and principal activities | Holding and others | ||
Votorantim Metals Canada Inc. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Canada | ||
Description of nature of entity's operations and principal activities | Holding and others | ||
Nexa Resources El Porvenir S.a.c. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Peru | ||
Description of nature of entity's operations and principal activities | Mining | ||
Minera Pampa De Cobre S.a.c [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 99.99% | 99.99% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Peru | ||
Description of nature of entity's operations and principal activities | Mining | ||
Nexa Resources Peru S.a.a. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 83.55% | 83.55% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Peru | ||
Description of nature of entity's operations and principal activities | Mining | ||
Nexa Resources Atacocha S.a.a. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 66.62% | 66.62% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | Peru | ||
Description of nature of entity's operations and principal activities | Mining | ||
Nexa Resources Uk Ltd.nexa Uk [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 100% | 100% | |
Type of control | Indirectly | ||
Country of incorporation of subsidiary | United Kingdom | ||
Description of nature of entity's operations and principal activities | Mining | ||
Campos Novos Energia S.a. [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | [2] | 20.98% | |
Country of incorporation of subsidiary | [2] | Brazil | |
Description of nature of entity's operations and principal activities | [2] | Energy | |
Cia. Minera Shalipayco S.a.c [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of shares in subsidiary | 75% | 75% | |
Country of incorporation of subsidiary | Peru | ||
Description of nature of entity's operations and principal activities | Mining projects | ||
[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.[2]On November 17 th |
Principles of consolidation (_2
Principles of consolidation (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | |||||
Cash and cash equivalents | $ 497,826 | $ 1 | $ 743,817 | $ 1,086,163 | $ 698,618 |
Financial investments | 18,062 | 8,260 | 19,202 | ||
Trade accounts receivables | 223,740 | 9,137 | 231,174 | ||
Other assets | 75,486 | 275 | 81,119 | ||
Total current assets | 1,220,146 | 17,674 | 1,472,809 | ||
Non-current assets | |||||
Deferred income tax | 1,320 | ||||
Recoverable income tax | 4,914 | 126 | 4,223 | ||
Other assets | 134,474 | 299 | 98,584 | ||
Property, plant and equipment | 2,295,275 | 29,216 | 2,087,730 | ||
Intangible assets | 1,016,927 | 9,382 | 1,056,771 | $ 2,392,388 | |
Total non-current assets | 3,671,636 | 40,342 | 3,432,027 | ||
Total assets | 4,891,782 | 58,016 | 4,904,836 | ||
Current liabilities | |||||
Trade payables | 413,856 | 1,014 | 411,818 | ||
Dividends payable | 7,922 | 8,745 | 11,441 | ||
Salaries and payroll charges | 79,078 | 35 | 76,031 | ||
Tax liabilities | 40,610 | 7,917 | 65,063 | ||
Other liabilities | 25,136 | 788 | 41,317 | ||
Total current liabilities | 898,764 | 18,499 | 989,282 | ||
Non-current liabilities | |||||
Provisions | 43,897 | 311 | 36,828 | ||
Deferred income tax | 199,499 | 4,658 | 208,583 | ||
Other liabilities | 50,528 | 2,093 | 23,354 | ||
Total non-current liabilities | 2,282,764 | 7,062 | 2,271,274 | ||
Total liabilities | 3,181,528 | 25,561 | 3,260,556 | ||
Shareholders’ equity | |||||
Attributable to NEXA’s shareholders | $ 1,442,245 | $ 32,456 | $ 1,386,273 |
Principles of consolidation (_3
Principles of consolidation (Details Narrative) $ in Thousands | Dec. 31, 2022 USD ($) |
Principles Of Consolidation | |
Investment | $ 38,990 |
Assets and liabilities | 32,456 |
Additional shares | 4,136 |
NEXAs share | $ 1,885 |
Net revenues (Details)
Net revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Revenues | |||
Gross billing | $ 3,440,863 | $ 2,974,850 | $ 2,138,786 |
Billing from products | 3,330,975 | 2,898,210 | 2,074,203 |
Billing from freight and insurance services | 109,888 | 76,640 | 64,583 |
Taxes on sales | (402,064) | (347,311) | (184,714) |
Return of products sales | (4,809) | (5,429) | (3,143) |
Net revenues | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 |
Net revenues (Details 1)
Net revenues (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Net revenues | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 |
Taxes on sales | 402,064 | 347,311 | 184,714 |
Return of products sales | 4,809 | 5,429 | 3,143 |
Revenues from products | 3,440,863 | 2,974,850 | 2,138,786 |
Zinc [member] | |||
IfrsStatementLineItems [Line Items] | |||
Freight and insurance services | 2,093,105 | 1,844,632 | 1,323,287 |
Lead [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net revenues | 276,438 | 223,341 | 161,964 |
Copper [member] | |||
IfrsStatementLineItems [Line Items] | |||
Freight and insurance services | 290,519 | 305,793 | 197,756 |
Silver [member] | |||
IfrsStatementLineItems [Line Items] | |||
Freight and insurance services | 57,921 | 69,691 | 58,568 |
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Freight and insurance services | 206,119 | 102,013 | 144,771 |
Freight and insurance services [member] | |||
IfrsStatementLineItems [Line Items] | |||
Freight and insurance services | $ 109,888 | $ 76,640 | $ 64,583 |
Net revenues (Details 2)
Net revenues (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Other | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 |
Net revenues | 3,033,990 | 2,622,110 | 1,950,929 |
P E [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 859,760 | 774,735 | 485,850 |
Brazil [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 827,173 | 753,280 | 583,141 |
United State [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 174,526 | 119,564 | 116,717 |
Singapore [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 166,412 | 56,879 | 76,724 |
Switzerland [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 124,726 | 78,770 | 68,912 |
Chile [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 120,060 | 54,044 | 48,969 |
Luxembourg [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 95,252 | 97,462 | 76,072 |
Argentina [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 94,433 | 93,107 | 56,165 |
Japan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 71,370 | 58,296 | 46,719 |
Taiwan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 65,036 | 53,752 | 28,764 |
Colombia [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 64,013 | 54,325 | 34,768 |
South Africa [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 55,864 | 25,126 | |
Turkey [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 54,955 | 34,493 | 25,005 |
Austria [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 48,676 | 45,057 | 35,197 |
South Korea [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 32,406 | 118,596 | 77,429 |
Malaysia [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 26,032 | 25,681 | 13,948 |
Belgium [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 17,905 | 13,690 | 30,174 |
Ecuador [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 15,433 | 15,652 | 9,095 |
Netherlands [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 13,623 | 17,693 | 11,740 |
Italy [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 9,586 | 14,834 | 9,895 |
Vietnam [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | 8,396 | 14,555 | 10,798 |
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Other | $ 88,353 | $ 102,519 | $ 104,847 |
Net revenues (Details 3)
Net revenues (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Net revenues | $ 3,033,990 | $ 2,622,110 | $ 1,950,929 |
Net revenues | 3,033,990 | 2,622,110 | 1,950,929 |
United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Net revenues | 2,251,866 | 1,914,905 | 1,388,746 |
Brazil, Brazil Real | |||
IfrsStatementLineItems [Line Items] | |||
Net revenues | $ 782,124 | $ 707,205 | $ 562,183 |
Expenses by nature (Details)
Expenses by nature (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Raw materials and consumables used | $ (1,463,472) | $ (1,189,728) | $ (856,300) |
Third-party services | (545,292) | (467,071) | (407,695) |
Depreciation and amortization | (287,069) | (258,711) | (243,925) |
Employee benefit expenses | (259,548) | (223,115) | (213,865) |
Others | (84,204) | (69,240) | (50,966) |
Total | (2,639,585) | $ (2,207,865) | $ (1,772,751) |
Expenses By Nature Cost Of Sales [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Raw materials and consumables used | (1,463,472) | ||
Third-party services | (449,373) | ||
Depreciation and amortization | (282,968) | ||
Employee benefit expenses | (182,609) | ||
Others | (16,758) | ||
Total | (2,395,180) | ||
Expenses By Nature Selling General And Administrative [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Raw materials and consumables used | |||
Third-party services | (30,878) | ||
Depreciation and amortization | (4,064) | ||
Employee benefit expenses | (58,909) | ||
Others | (51,692) | ||
Total | (145,543) | ||
Expenses By Nature Mineral Exploration And Project Development [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Raw materials and consumables used | |||
Third-party services | (65,041) | ||
Depreciation and amortization | (37) | ||
Employee benefit expenses | (18,030) | ||
Others | (15,754) | ||
Total | $ (98,862) |
Mineral exploration and proje_3
Mineral exploration and project evaluation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Mineral Exploration And Project Evaluation | |||
Mineral exploration | $ (61,986) | $ (55,594) | $ (38,519) |
Project evaluation | (36,876) | (29,449) | (18,682) |
Mineral exploration and Project development | $ (98,862) | $ (85,043) | $ (57,201) |
Other income and expenses, ne_2
Other income and expenses, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Other Income And Expenses Net | ||||
ICMS tax incentives | [1] | $ (56,697) | $ (71,949) | |
Changes in fair value of offtake agreement - note 16 (d) | 24,267 | |||
Changes in fair value of derivative financial instruments – note 16 (c) | 1,363 | 7,486 | 948 | |
Loss on sale of property, plant and equipment | (698) | (4,891) | (2,268) | |
Remeasurement of asset retirement and environmental obligations | (1,512) | (6,664) | (900) | |
Slow moving and obsolete inventory | (11,511) | (985) | (1,057) | |
Provision of legal claims | (7,664) | (13,173) | (10,912) | |
Contribution to communities | (17,233) | (7,070) | (2,773) | |
Pre-operating expenses related to Aripuanã | [2] | (45,800) | (8,753) | (1,885) |
Impairment of other assets | [3] | (9,302) | ||
Others | 8,719 | (5,951) | (317) | |
Total other income and expenses, net | $ (2,674) | $ 31,948 | $ (19,164) | |
[1]In December 2021, the Company adhered to a Brazilian Law that states that government grants of the “Imposto circulação de mercadorias e serviços” (“ICMS”) tax incentives are considered investment subsidies and should be excluded from taxable income for the purpose of calculating the Corporate Income Tax (“IRPJ”) and the Social Contribution on Net Income tax (“CSLL”). In 2022, the Company received USD 56,697 of ICMS tax incentives, which were excluded from the corporate income taxes basis for the year and were considered a permanent difference reducing the income tax to pay in the amount of USD 19,277 as shown in note 11 (a). Additionally, based on this, the Company stopped presenting the expenses and revenues of the received ICMS tax incentives on a net basis and started to separate the expenses in Taxes on Sales and the corresponding revenues in Other income and expenses, net. The presentation on a gross basis became necessary to demonstrate the taxes on sales for Brazilian corporate tax deduction purposes.[2]Related to Aripuanã’s pre-operating expenses that mainly comprise USD 36,884 (including depreciation of USD 3,868) related to the idleness of the Aripuanã mine’s and plant’s capacity from January to October, the period before the unit started to generate revenues. Since November, these idleness costs were recorded within Cost of Sales.[3]Amounts mainly related to the write-off of some non-commercial account receivables and taxes, which the Company does not expect to recover. |
Net financial results (Details)
Net financial results (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Financial income | |||||
Interest income on financial investments and cash equivalents | $ 16,913 | $ 6,074 | $ 7,295 | ||
Interest on tax credits | 980 | 1,377 | 854 | ||
Other financial income | 7,125 | 4,021 | 3,019 | ||
Total financial income | 25,018 | 11,472 | 11,168 | ||
Financial expenses | |||||
Interest on loans and financings | $ (2,971) | (104,689) | (96,565) | (97,422) | |
Premium paid on bonds repurchase – note 24 (c) | (3,277) | (14,481) | |||
Interest on other liabilities | (35,134) | (12,371) | (8,051) | ||
Interest on contractual obligations - note 29 (a) | (5,801) | (6,936) | (6,182) | ||
Interest on lease liabilities | (542) | (1,272) | (1,757) | ||
Other financial expenses | (19,251) | (25,131) | (31,866) | ||
Total financial expenses | (168,694) | (142,275) | (159,759) | ||
Other financial items, net | |||||
Changes in fair value of loans and financings – note 24 (c) | (1,472) | 19,380 | (8,058) | ||
Changes in fair value of derivative financial instruments – note 16 (c) | (83) | (5,640) | (717) | ||
Foreign exchange loss | [1] | 11,504 | (19,839) | (120,809) | |
Other financial items, net | 9,949 | (6,099) | (129,584) | ||
Net financial results | (133,727) | (136,902) | $ (278,175) | ||
Nexa Recursos Minerais S.a. [Member] | |||||
Other financial items, net | |||||
Foreign exchange loss | $ 6,413 | $ 10,468 | |||
[1]The amounts for years 2022 and 2021 include USD 6,413 10,468 |
Current and deferred income t_3
Current and deferred income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jul. 13, 2022 | Jul. 13, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||||
Income (loss) before income tax | $ 227,377 | $ 309,291 | $ (676,658) | |||
Statutory income tax rate | 24.94% | 24.94% | 24.94% | |||
Income tax (expense) benefit at statutory rate | $ (56,708) | $ (77,137) | $ 168,759 | |||
ICMS tax incentives permanent difference – note 9 | 19,277 | 24,463 | ||||
Tax effects of translation of non-monetary assets/liabilities to functional currency | 6,279 | (32,998) | (28,174) | |||
Withholding tax over subsidiary capital reduction | [1] | (5,263) | (10,526) | |||
Impairment of goodwill | (18,247) | (78,866) | ||||
Special mining levy and special mining tax | (13,321) | (17,279) | (5,909) | |||
Difference in tax rate of subsidiaries outside Luxembourg | [2] | (10,319) | (3,179) | 36,390 | ||
Unrecognized deferred tax on net operating losses | [3] | (66,069) | (36,577) | (35,849) | ||
Other permanent tax differences | (6,612) | 29 | (32,199) | |||
Income tax (expense) benefit | (150,983) | (153,204) | 24,152 | |||
Current | (146,869) | (122,081) | (63,192) | |||
Deferred | (4,114) | (31,123) | $ 87,344 | |||
Capital reduction | $ 105,350 | $ 210,703 | ||||
Deferred tax | $ 211,780 | $ 134,156 | ||||
N E X A C J M [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Capital reduction | $ 5,263 | |||||
Tax expenses | $ 10,526 | |||||
[1]On July 13, 2022, NEXA and the other shareholders of NEXA CJM approved a capital reduction of USD 105,350 210,703 5,263 10,526 211,780 134,156 |
Current and deferred income t_4
Current and deferred income tax (Details 1) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
IfrsStatementLineItems [Line Items] | ||||||
Deferred income tax assets | $ 166,983,000 | $ 168,205,000 | ||||
Deferred income tax liabilities | (199,499,000) | (208,583,000) | ||||
Total | (32,516,000) | (40,378,000) | $ 3,188,000 | $ (48,212,000) | ||
Balace of tax losses | 19,277 | |||||
Unused tax losses [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | [1] | 127,016,000 | 116,284,000 | |||
Temporary Differences Uncertain Income Tax Treatments [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax debits | [1] | (10,980,000) | (5,279,000) | |||
Other environment related provision [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 15,764,000 | [1] | 13,923,000 | |||
Provision for decommissioning, restoration and rehabilitation costs [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 18,175,000 | [1] | 17,698,000 | |||
Miscellaneous other provisions [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 10,569,000 | 7,224,000 | ||||
Temporary Differences Tax Civil And Labor Provisions [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 8,882,000 | 7,797,000 | ||||
Temporary Differences Provision For Employee Benefits [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 7,099,000 | 7,138,000 | ||||
Derivatives [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 754,000 | 506,000 | ||||
Other temporary differences [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax credits | 12,144,000 | 15,652,000 | ||||
Tax debits | (7,852,000) | (5,896,000) | ||||
Temporary Differences Capitalized Interest [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax debits | (10,504,000) | (9,261,000) | ||||
Temporary Differences Foreign Exchange Gains [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax debits | (25,542,000) | (16,365,000) | ||||
Temporary Differences Depreciation Amortization And Asset Impairment [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Tax debits | $ (178,041,000) | $ (189,799,000) | ||||
[1]As a result of adopting the Law described in note 9, there was also an increase in the amount of USD 19,277 |
Current and deferred income t_5
Current and deferred income tax (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current And Deferred Income Tax | |||
Balance at beginning of the year | $ (40,378) | $ 3,188 | $ (48,212) |
Effect on (loss) income for the year | (4,114) | (31,123) | 87,344 |
Effect on other comprehensive income (loss) - Fair value adjustment | 820 | (2,536) | 13 |
Prior years uncertain income tax treatment payment | 1,923 | 4,706 | |
Effect on other comprehensive income – Translation effect included in Cumulative translation adjustment | 8,481 | (9,907) | (40,663) |
Derecognition of Nexa’s share of Enercan's deferred income taxes - note 4 | 3,338 | ||
Others movements of deferred income tax | (2,586) | ||
Balance at end of the year | $ (32,516) | $ (40,378) | $ 3,188 |
Current and deferred income t_6
Current and deferred income tax (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current And Deferred Income Tax | ||
contingent liabilities | $ 349,322 | $ 134,804 |
Financial risk management (Deta
Financial risk management (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Currency risk b r l [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate exposure | 5.2177 |
Cash and cash equivalents and financial investments | $ 61,919 |
Exchange rate exposure | 5.2177 |
Loans and financings | $ 277,852 |
Derivative financial instruments | (292) |
Currency risk b r l [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rates | 2.06% |
Currency risk b r l [member] | Comprehensive income1 [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate at scenario1 | $ 1,274 |
Exchange price at negative25 | (15,479) |
Exchange price at negative50 | (30,959) |
Exchange price at positive25 | 15,479 |
Exchange price at positive50 | 30,959 |
Currency risk b r l [member] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Exchange rate at scenario2 | |
Currency risk b r l [member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative25 | 69,463 |
Exchange price at negative50 | 138,926 |
Exchange price at positive25 | (69,463) |
Exchange price at positive50 | (138,926) |
Exchange rate at scenario2 | $ (5,717) |
Currency risk b r l [member] | Income Statement 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 2.06% |
Exchange rate at scenario1 | $ (6) |
Exchange price at negative25 | 73 |
Exchange price at negative50 | 146 |
Exchange price at positive25 | (73) |
Exchange price at positive50 | (146) |
Currency risk b r l [member] | Comprehensive Income 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate at scenario1 | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Currency risk b r l [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 2.06% |
Currency risk e u r [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate exposure | 1.0674 |
Cash and cash equivalents and financial investments | $ 12 |
Currency risk e u r [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 6.01% |
Exchange rate at scenario1 | $ (1) |
Exchange price at negative25 | (3) |
Exchange price at negative50 | (6) |
Exchange price at positive25 | 3 |
Exchange price at positive50 | 6 |
Currency risk e u r [member] | Comprehensive income1 [member] | |
IfrsStatementLineItems [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] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate exposure | 3.7895 |
Cash and cash equivalents and financial investments | $ 32,963 |
Exchange rate exposure | 3.7895 |
Loans and financings | $ 443 |
Currency risk p e n [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 5.41% |
Exchange rate at scenario1 | $ (1,783) |
Exchange price at negative25 | (8,240) |
Exchange price at negative50 | (16,480) |
Exchange price at positive25 | 8,240 |
Exchange price at positive50 | $ 16,480 |
Interest rates | 5.41% |
Currency risk p e n [member] | Comprehensive income1 [member] | |
IfrsStatementLineItems [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] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative25 | 111 |
Exchange price at negative50 | 222 |
Exchange price at positive25 | (111) |
Exchange price at positive50 | (222) |
Exchange rate at scenario2 | 24 |
Currency risk p e n [member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative25 | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Exchange rate at scenario2 | |
Currency risk c a d [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate exposure | 1.3536 |
Cash and cash equivalents and financial investments | $ 641 |
Currency risk c a d [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 2.46% |
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] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate at scenario1 | 16 |
Exchange price at negative25 | (160) |
Exchange price at negative50 | (321) |
Exchange price at positive25 | 160 |
Exchange price at positive50 | $ 321 |
Currency risk n a d [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate exposure | 16.9647 |
Cash and cash equivalents and financial investments | $ 1,862 |
Currency risk n a d [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 6.19% |
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] | |
IfrsStatementLineItems [Line Items] | |
Exchange rate at scenario1 | 115 |
Exchange price at negative25 | (466) |
Exchange price at negative50 | (931) |
Exchange price at positive25 | 466 |
Exchange price at positive50 | $ 931 |
Currency risk BRLCDISELIC [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 13.65% |
Cash cash equivalents and short term investments commodity price1 | $ 61,341 |
Loans and financings | 78,904 |
Derivative financial instruments | $ (292) |
Currency risk BRLCDISELIC [member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 1% |
Exchange price at negative50 | $ (4,187) |
Exchange price at positive25 | 2,093 |
Exchange price at positive50 | 4,187 |
Interest rate at scenario1 | (8) |
Interest price at negative25 | $ (2,093) |
Interest rates | 1% |
Currency risk BRLCDISELIC [member] | Comprehensive income1 [member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rate at scenario1 | |
Interest price at negative25 | |
Currency risk BRLCDISELIC [member] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | 5,385 |
Exchange price at positive25 | (2,693) |
Exchange price at positive50 | (5,385) |
Interest price at negative25 | 2,693 |
Interest rate at scenario 2 | 10 |
Currency risk BRLCDISELIC [member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest price at negative25 | |
Interest rate at scenario 2 | |
Currency risk BRLCDISELIC [member] | Income Statement 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 1% |
Exchange price at negative50 | $ 2,114 |
Exchange price at positive25 | (867) |
Exchange price at positive50 | (1,633) |
Interest rate at scenario1 | 41 |
Interest price at negative25 | 986 |
Currency risk BRLCDISELIC [member] | Comprehensive Income 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest rate at scenario1 | |
Interest price at negative25 | |
Currency Risk U S D L I B O R [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 4.77% |
Loans and financings | $ 182,067 |
Derivative financial instruments | $ (2,283) |
Currency Risk U S D L I B O R [Member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 6% |
Currency Risk U S D L I B O R [Member] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | $ 4,339 |
Exchange price at positive25 | (2,169) |
Exchange price at positive50 | (4,339) |
Interest price at negative25 | 2,169 |
Interest rate at scenario 2 | (106) |
Currency Risk U S D L I B O R [Member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest price at negative25 | |
Interest rate at scenario 2 | |
Currency Risk U S D L I B O R [Member] | Income Statement 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 6% |
Exchange price at negative50 | $ 280 |
Exchange price at positive25 | (140) |
Exchange price at positive50 | (280) |
Interest rate at scenario1 | (2) |
Interest price at negative25 | 140 |
Currency Risk U S D L I B O R [Member] | Comprehensive Income 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | (71) |
Exchange price at positive25 | 36 |
Exchange price at positive50 | 71 |
Interest rate at scenario1 | 0 |
Interest price at negative25 | $ (36) |
Currency Risk I P C A T L P [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 5.79% |
Loans and financings | $ 176,269 |
Currency Risk I P C A T L P [Member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 29% |
Currency Risk I P C A T L P [Member] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | $ 5,103 |
Exchange price at positive25 | (2,551) |
Exchange price at positive50 | (5,103) |
Interest price at negative25 | 2,551 |
Interest rate at scenario 2 | 511 |
Currency Risk I P C A T L P [Member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest price at negative25 | |
Interest rate at scenario 2 | |
Currency Risk T J L P [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 7.37% |
Loans and financings | $ 22,634 |
Currency Risk T J L P [Member] | Income statement [member] | |
IfrsStatementLineItems [Line Items] | |
Interest rates | 17% |
Currency Risk T J L P [Member] | Income Statement 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | $ 834 |
Exchange price at positive25 | (417) |
Exchange price at positive50 | (834) |
Interest price at negative25 | 417 |
Interest rate at scenario 2 | (38) |
Currency Risk T J L P [Member] | Comprehensive Income 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Interest price at negative25 | |
Interest rate at scenario 2 | |
Zinc [member] | |
IfrsStatementLineItems [Line Items] | |
Derivative financial instruments | (2,283) |
Commodities price | 3,025 |
Zinc [member] | Income Statement 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | 41,976 |
Exchange price at positive25 | (20,988) |
Exchange price at positive50 | $ (41,976) |
Commodities price | 1.79% |
Commodity rate at scenario1 | $ 18,733 |
Commodity price at negative25 | 20,988 |
Zinc [member] | Comprehensive Income 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | (9,353) |
Exchange price at positive25 | 4,676 |
Exchange price at positive50 | 9,353 |
Commodity rate at scenario1 | (4,174) |
Commodity price at negative25 | (4,676) |
Copper [member] | |
IfrsStatementLineItems [Line Items] | |
Derivative financial instruments | (21,833) |
Commodities price | 8,387 |
Copper [member] | Income Statement 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | (360) |
Exchange price at positive25 | (55,027) |
Exchange price at positive50 | $ (97,498) |
Commodities price | 8.49% |
Commodity rate at scenario1 | $ (14,153) |
Commodity price at negative25 | (4,483) |
Copper [member] | Comprehensive Income 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Exchange price at negative50 | |
Exchange price at positive25 | |
Exchange price at positive50 | |
Commodity rate at scenario1 | |
Commodity price at negative25 |
Financial risk management (De_2
Financial risk management (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||||
Trade accounts receivables | $ 223,740 | $ 9,137 | $ 231,174 | ||
Total assets | 4,891,782 | 58,016 | 4,904,836 | ||
Loans and financings | 1,669,259 | 1,699,315 | $ 2,024,314 | ||
Trade payables and other liabilities | 413,856 | 1,014 | 411,818 | ||
Lease liabilities | 5,021 | 19,639 | $ 25,689 | ||
Total liabilities | 3,181,528 | $ 25,561 | 3,260,556 | ||
Financial assets | 754,188 | 1,014,312 | |||
Ifrs cash and cash equivalents [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 497,826 | 743,817 | |||
Ifrs cash and cash equivalents [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 191,269 | 117,439 | |||
Ifrs cash and cash equivalents [member] | Credit rating aa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 10,259 | 21,252 | |||
Ifrs cash and cash equivalents [member] | Credit rating aa plus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 19 | ||||
Ifrs cash and cash equivalents [member] | Credit rating aa minus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 15,958 | 354,043 | |||
Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 117,968 | 141,007 | |||
Ifrs cash and cash equivalents [member] | Credit ratinga [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 93,117 | 104,528 | |||
Ifrs cash and cash equivalents [member] | Credit rating aminus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 54,737 | ||||
Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | [1] | 14,518 | 5,529 | ||
Financial investments [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 18,062 | 19,202 | |||
Financial investments [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 18,006 | 16,849 | |||
Financial investments [member] | Credit rating aa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 2,353 | ||||
Financial investments [member] | Credit rating no rating [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | [1] | 56 | |||
Derivatives [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Derivative Financial Instruments | (2,575) | (6,531) | |||
Financial assets | 7,443 | 16,394 | |||
Derivatives [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 144 | 314 | |||
Derivatives [member] | Credit rating aplus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 3,061 | 8,491 | |||
Derivatives [member] | Credit rating aminus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 4,238 | 7,589 | |||
Local [member] | Ifrs cash and cash equivalents [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 209,979 | 181,395 | |||
Local [member] | Ifrs cash and cash equivalents [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 191,269 | 117,439 | |||
Local [member] | Ifrs cash and cash equivalents [member] | Credit rating aa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 10,259 | 19 | |||
Local [member] | Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 35,923 | ||||
Local [member] | Ifrs cash and cash equivalents [member] | Credit ratinga [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 25,354 | ||||
Local [member] | Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | [1] | 8,451 | 2,660 | ||
Local [member] | Financial investments [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 18,062 | 19,202 | |||
Local [member] | Financial investments [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 18,006 | 16,849 | |||
Local [member] | Financial investments [member] | Credit rating aa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 2,353 | ||||
Local [member] | Financial investments [member] | Credit rating no rating [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | [1] | 56 | |||
Local [member] | Derivatives [member] | Credit rating aaa [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 144 | 314 | |||
Global [member] | Ifrs cash and cash equivalents [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 287,847 | 562,422 | |||
Global [member] | Ifrs cash and cash equivalents [member] | Credit rating aa minus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 15,958 | 21,252 | |||
Global [member] | Ifrs cash and cash equivalents [member] | Credit rating aplus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 117,968 | 318,120 | |||
Global [member] | Ifrs cash and cash equivalents [member] | Credit ratinga [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 93,117 | 115,653 | |||
Global [member] | Ifrs cash and cash equivalents [member] | Credit rating aminus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 54,737 | 104,528 | |||
Global [member] | Ifrs cash and cash equivalents [member] | Credit rating no rating [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | [1] | 6,067 | 2,869 | ||
Global [member] | Derivatives [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 7,299 | 16,080 | |||
Global [member] | Derivatives [member] | Credit rating aplus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 3,061 | 8,491 | |||
Global [member] | Derivatives [member] | Credit rating aminus [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Financial assets | 4,238 | 7,589 | |||
Foreign Currencies [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash, cash equivalents and financial investments | 97,397 | 95,320 | |||
Derivative Financial Instruments | 143 | 314 | |||
Trade accounts receivables | 19,132 | 34,858 | |||
Total assets | 116,672 | 130,492 | |||
Loans and financings | 276,634 | 272,353 | |||
Derivative Financial Instruments | 435 | 380 | |||
Trade payables and other liabilities | 182,275 | 200,983 | |||
Lease liabilities | 2,738 | 7,921 | |||
Use of public assets | 23,263 | 24,384 | |||
Total liabilities | 485,345 | 506,021 | |||
Net exposure | $ (368,673) | $ (375,529) | |||
[1]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-. |
Financial risk management (De_3
Financial risk management (Details 3) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 3,308,261 | $ 3,476,003 |
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 889,744 | 920,056 |
Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 440,123 | 515,737 |
Later than three years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,015,603 | 335,975 |
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 962,791 | 1,704,235 |
Salaries and payroll charges [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 76,031 | |
Loans and financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 2,214,252 | 2,244,541 |
Loans and financing [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 136,348 | 114,240 |
Loans and financing [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 391,201 | 443,780 |
Loans and financing [member] | Later than three years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 981,759 | 247,226 |
Loans and financing [member] | Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 704,944 | 1,439,295 |
Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 5,515 | 21,084 |
Lease liabilities [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 4,105 | 17,340 |
Lease liabilities [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,410 | 3,744 |
Derivatives [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 10,018 | 22,925 |
Derivatives [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 9,712 | 22,684 |
Derivatives [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 215 | 146 |
Derivatives [member] | Later than three years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 86 | 71 |
Derivatives [member] | Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 5 | 24 |
Trade payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 426,010 | 411,818 |
Trade payables [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 413,856 | 411,818 |
Trade payables [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 12,154 | |
Confirming payable [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 216,392 | 232,860 |
Confirming payable [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 216,392 | 232,860 |
Salaries and payroll charges [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 79,078 | |
Salaries and payroll charges [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 79,078 | 76,031 |
Dividends payable [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 7,922 | 11,441 |
Dividends payable [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 7,922 | 11,441 |
Related parties [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,033 | 392 |
Related parties [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 487 | 321 |
Related parties [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 546 | 71 |
Provision for decommissioning, restoration and rehabilitation costs [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 319,111 | 424,802 |
Provision for decommissioning, restoration and rehabilitation costs [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 19,360 | 31,953 |
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 29,625 | 64,752 |
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than three years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 28,868 | 85,021 |
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 241,258 | 243,076 |
Service concession arrangements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 28,930 | 30,109 |
Service concession arrangements [member] | Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 2,484 | 1,368 |
Service concession arrangements [member] | Later than one year and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 4,972 | 3,244 |
Service concession arrangements [member] | Later than three years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 4,890 | 3,657 |
Service concession arrangements [member] | Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 16,584 | $ 21,840 |
Financial risk management (De_4
Financial risk management (Details 4) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Financial Risk Management | ||||
Loans and financings | $ 1,669,259 | $ 1,699,315 | $ 2,024,314 | |
Derivative financial instruments | 2,575 | 6,531 | (5,106) | |
Lease liabilities | 5,021 | 19,639 | 25,689 | |
Cash and cash equivalents | (497,826) | (743,817) | (1,086,163) | |
Financial investments | (18,062) | (19,202) | (35,044) | |
Net debt | [1] | 1,160,967 | 962,466 | 923,690 |
Net income (loss) for the period | 76,394 | 156,087 | (652,506) | |
Depreciation and amortization | 290,937 | 258,711 | 243,925 | |
Share in the results of associates | (1,885) | |||
Net financial results | 133,727 | 136,902 | 278,175 | |
Income tax expense (benefit) | 150,983 | 153,204 | (24,152) | |
Miscellaneous adjustments | 110,168 | 38,931 | 573,475 | |
Adjusted EBITDA | [2] | $ 760,324 | $ 743,835 | $ 418,917 |
Leverage ratio (Net debt/Adjusted EBITDA) | 1.53 | 1.29 | 2.20 | |
[1]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.[2]Adjusted EBITDA for capital management calculation uses the same assumptions described in note 2 for Adjusted EBITDA by segment. |
Financial instruments (Details)
Financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Financial assets | $ 754,188 | $ 1,014,312 | |
Financial liabilities | 2,360,675 | 2,411,334 | |
Loans and financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 1,669,259 | 1,699,315 | |
Lease liabilities [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 5,021 | 19,639 | |
Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 31,851 | 22,925 | |
Trade payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 413,856 | 411,818 | |
Confirming payable [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 216,392 | 232,860 | |
Use of public assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 23,263 | 24,384 | [1] |
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 1,033 | 393 | [1] |
Financial liabilities at amortised cost, category [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 2,238,429 | 2,299,732 | |
Financial liabilities at amortised cost, category [member] | Loans and financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 1,578,864 | 1,610,638 | |
Financial liabilities at amortised cost, category [member] | Lease liabilities [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 5,021 | 19,639 | |
Financial liabilities at amortised cost, category [member] | Trade payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 413,856 | 411,818 | |
Financial liabilities at amortised cost, category [member] | Confirming payable [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 216,392 | 232,860 | |
Financial liabilities at amortised cost, category [member] | Use of public assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 23,263 | 24,384 | [1] |
Financial liabilities at amortised cost, category [member] | Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 1,033 | 393 | [1] |
Financial liabilities at fair value through profit or loss, category [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 122,246 | 111,602 | |
Financial liabilities at fair value through profit or loss, category [member] | Loans and financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 90,395 | 88,677 | |
Financial liabilities at fair value through profit or loss, category [member] | Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities | 31,851 | 22,925 | |
Ifrs cash and cash equivalents [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 497,826 | 743,817 | |
Financial Investment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 18,062 | 19,202 | |
Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 7,443 | 16,394 | |
Trade receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 223,740 | 231,174 | |
Equity investments [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 7,115 | 3,723 | |
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 2 | 2 | [2] |
Financial assets at amortised cost, category [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 569,013 | 847,990 | |
Financial assets at amortised cost, category [member] | Ifrs cash and cash equivalents [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 497,826 | 743,817 | |
Financial assets at amortised cost, category [member] | Financial Investment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 18,062 | 19,202 | |
Financial assets at amortised cost, category [member] | Trade receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 53,123 | 84,969 | |
Financial assets at amortised cost, category [member] | Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 2 | 2 | [2] |
Financial assets at fair value through profit or loss, category [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 178,060 | 162,599 | |
Financial assets at fair value through profit or loss, category [member] | Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 7,443 | 16,394 | |
Financial assets at fair value through profit or loss, category [member] | Trade receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 170,617 | 146,205 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | 7,115 | 3,723 | |
Financial assets at fair value through other comprehensive income, category [member] | Equity investments [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets | $ 7,115 | $ 3,723 | |
[1]Classified as Other liabilities in the consolidated balance sheet.[2]Classified as Other assets in the consolidated balance sheet. |
Fair value estimates (Details)
Fair value estimates (Details) - At fair value [member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | $ 185,175 | $ 166,322 | |
Financial liabilities, at fair value | 122,246 | 111,602 | |
Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities, at fair value | 31,851 | 22,925 | |
Loans and financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities, at fair value | [1] | 90,395 | 88,677 |
Level 2 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 178,060 | 162,599 | |
Financial liabilities, at fair value | 122,246 | 111,602 | |
Level 2 of fair value hierarchy [member] | Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities, at fair value | 31,851 | 22,925 | |
Level 2 of fair value hierarchy [member] | Loans and financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial liabilities, at fair value | [1] | 90,395 | 88,677 |
Level 1 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 7,115 | ||
Derivatives [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 7,443 | 16,394 | |
Derivatives [member] | Level 2 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 7,443 | 16,394 | |
Trade receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 170,617 | 146,205 | |
Trade receivables [member] | Level 2 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | 170,617 | 146,205 | |
Investment In Equity Instruments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | [2] | 7,115 | 3,723 |
Investment In Equity Instruments [Member] | Level 1 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | [2] | $ 7,115 | 3,723 |
Level 1 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial assets, at fair value | $ 3,723 | ||
[1]Loans and financings are measured at amortized cost, except for certain contracts for which the Company has elected the fair value option.[2]To determine the fair value of the investments in equity instruments, the Company uses the share’s quotation as of the last day of the reporting period. |
Fair value estimates (Details N
Fair value estimates (Details Narrative) | 1 Months Ended |
May 31, 2022 $ / shares shares | |
Fair Value Estimates | |
Additional common shares | shares | 40,792,541 |
Transaction price | $ / shares | $ 0.17 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [abstract] | |||||
Cash and banks | $ 330,653 | $ 276,761 | |||
Term deposits | 167,173 | 467,056 | |||
Total cash and cash equivalents | $ 497,826 | $ 1 | $ 743,817 | $ 1,086,163 | $ 698,618 |
Other financial instruments (De
Other financial instruments (Details) - Derivatives [member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives financial instruments | ||
Current assets | $ 7,380 | $ 16,292 |
Non-current assets | 63 | 102 |
Current liabilities | (9,711) | (22,684) |
Non-current liabilities | (307) | (241) |
Derivatives financial instruments, net | (2,575) | (6,531) |
Offtake agreement measured at FVTPL | ||
Current liabilities | (1,724) | |
Non-current liabilities | (20,109) | |
Offtake agreement measured at FVTPL, net | $ (21,833) |
Other financial instruments (_2
Other financial instruments (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | |||
Fair value | $ 2,575 | $ 6,531 | $ (5,106) |
Hedging programs for mismatches of quotation periods [member] | |||
IfrsStatementLineItems [Line Items] | |||
Fair value | (2,357) | (9,898) | |
Hedging programs for mismatches of quotation periods [member] | Zinc forward [member] | |||
IfrsStatementLineItems [Line Items] | |||
Nominal | 209,319 | 215,809 | |
Fair value | (2,357) | (9,898) | |
Hedging programs for sales of zinc at fixed price [member] | |||
IfrsStatementLineItems [Line Items] | |||
Fair value | 74 | 3,433 | |
Hedging programs for sales of zinc at fixed price [member] | Zinc forward [member] | |||
IfrsStatementLineItems [Line Items] | |||
Nominal | 8,297 | 8,787 | |
Fair value | 74 | 3,433 | |
Hedging programs for inflation risks [member] | |||
IfrsStatementLineItems [Line Items] | |||
Fair value | (292) | (66) | |
Hedging programs for inflation risks [member] | Brazilian inflation versus brazilian interbank interest rate swap [member] | |||
IfrsStatementLineItems [Line Items] | |||
Nominal | 226,880 | 226,880 | |
Fair value | (292) | (66) | |
Hedging of changes in foreign exchange rates [member] | |||
IfrsStatementLineItems [Line Items] | |||
Fair value | $ (6,531) | $ (2,575) |
Other financial instruments (_3
Other financial instruments (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Inventory | $ (1,014) | $ 1,146 |
Cost of sales | 19,394 | (37,963) |
Net revenues | (5,727) | 9,709 |
Other income and expenses, net | 1,363 | 7,486 |
Other comprehensive (loss) income | (1,329) | 488 |
Realized (loss) gain | 8,648 | (13,137) |
Net financial results | (83) | $ (5,640) |
Hedging programs for mismatches of quotation periods [member] | Zinc forward [member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventory | (1,014) | |
Cost of sales | 19,394 | |
Net revenues | (2,868) | |
Other income and expenses, net | 743 | |
Other comprehensive (loss) income | (1,329) | |
Realized (loss) gain | 7,385 | |
Hedging programs for sales of zinc at fixed price [member] | Zinc forward [member] | ||
IfrsStatementLineItems [Line Items] | ||
Net revenues | (2,859) | |
Other income and expenses, net | 620 | |
Realized (loss) gain | 1,120 | |
Hedging Programs For Interest Rate Risk [Member] | Zinc forward [member] | ||
IfrsStatementLineItems [Line Items] | ||
Realized (loss) gain | 143 | |
Net financial results | $ (83) |
Other financial instruments (_4
Other financial instruments (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial Instruments | ||
Change in fair value at beginning | $ 46,100 | |
Changes in fair value | (24,267) | |
Change in fair value at ending | 21,833 | |
Notional | $ 30,810 |
Other financial instruments (_5
Other financial instruments (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 25, 2022 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Fair value agreement | $ 46,100 | |
Non-cash accumulated gain | $ 24,267 | |
Offtake agreement [member] | ||
IfrsStatementLineItems [Line Items] | ||
Sales of produced copper for a 5 year period. | 100% | |
Offtake agreement | 5 years |
Trade accounts receivables (Det
Trade accounts receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||
Related parties | $ 801 | $ 1,016 | |
Total trade accounts receivables | 223,740 | $ 9,137 | 231,174 |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 227,265 | 233,623 | |
Related parties | 801 | 1,016 | |
Total trade accounts receivables | 228,066 | 234,639 | |
Accumulated impairment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total trade accounts receivables | $ (4,326) | $ (3,465) |
Trade accounts receivables (D_2
Trade accounts receivables (Details 1) - Accumulated impairment [member] - Trade receivables [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Trade receivables impairment provision at the beginning of the year | $ (3,465) | $ (3,179) |
Additions | (1,793) | (1,586) |
Reversals | 1,005 | 1,206 |
Foreign exchange gains | (73) | 94 |
Trade receivable impairment provision at the end of the year | $ (4,326) | $ (3,465) |
Trade accounts receivables (D_3
Trade accounts receivables (Details 2) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | $ 223,740 | $ 9,137 | $ 231,174 |
United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 204,608 | 196,316 | |
Brazil, Brazil Real | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 18,740 | 34,464 | |
Other currencies [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | $ 392 | $ 394 |
Trade accounts receivables (D_4
Trade accounts receivables (Details 3) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | $ 223,740 | $ 9,137 | $ 231,174 |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 228,066 | 234,639 | |
Gross carrying amount [member] | Current [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 212,814 | 222,083 | |
Gross carrying amount [member] | Not later than three months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 10,495 | 9,201 | |
Gross carrying amount [member] | Later than three months and not later than six months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 2,181 | 51 | |
Gross carrying amount [member] | Later than six months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | 2,576 | 3,304 | |
Accumulated impairment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade accounts receivables | $ (4,326) | $ (3,465) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Abstract | |||
Finished products | $ 142,935 | $ 157,285 | |
Semi-finished products | [1] | 163,805 | 60,315 |
Raw materials | 68,497 | 90,087 | |
Auxiliary materials and consumables | 115,562 | 94,564 | |
Inventory provisions | (95,602) | (29,749) | |
Total | $ 395,197 | $ 372,502 | |
[1]Semi-finished products in December 2022 include the stockpile produced during Aripuanã’s commissioning phase in the total amount of USD 40,303. In 2021, the amount of USD 23,009 of the ore stockpile that was included in raw material was reclassified as a semi-finished products. |
Inventory (Details 1)
Inventory (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Write down of inventories | $ (29,749) | $ (29,074) | |
Additions | [1] | (69,761) | (15,094) |
Reversals | 4,634 | 13,986 | |
Exchange variation gains | (726) | 433 | |
Write down of inventories | (95,602) | $ (29,749) | |
Iinventory net realizable | 52,215 | ||
Aripuanas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Depreciation | $ 16,377 | ||
[1]The main amount is related to the provision of Aripuanã’s inventory to its net realizable value for both its ore stockpile and its produced concentrates in the total amount of USD 52,215 16,377 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 |
Other Assets | |||
Other recoverable taxes | $ 139,168 | $ 128,377 | |
Advances to third parties | 7,057 | 8,545 | |
Prepaid expenses | 9,858 | 10,361 | |
Judicial deposits | 16,753 | 5,446 | |
Works-for-taxes program | 7,902 | 5,338 | |
Other assets | 29,222 | 21,636 | |
Total other assets | 209,960 | 179,703 | |
Current assets | 75,486 | $ 275 | 81,119 |
Non-current assets | $ 134,474 | $ 299 | $ 98,584 |
Related parties (Details)
Related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
IfrsStatementLineItems [Line Items] | ||||
Related parties assets | $ 2 | $ 2 | ||
Trade payables | 15,337 | 4,811 | ||
Trade accounts receivable | 801 | 1,016 | ||
Related parties' liabilities | 1,033 | 393 | ||
Dividends payable | 7,922 | 11,441 | ||
Trade accounts receivable, current | 801 | 1,016 | ||
Trade payables, current | 15,337 | 4,811 | ||
Dividends payable, current | 7,922 | 11,441 | $ 8,745 | |
Related parties' liabilities | 2 | 2 | ||
Purchases | 79,145 | 71,235 | $ 47,279 | |
Sales | 10,452 | 15,094 | 17,579 | |
Short-term benefits | 7,371 | 6,602 | ||
Other long-term benefits | 158 | 664 | ||
Total key management compensation | 7,529 | 7,266 | ||
Parent [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Related parties assets | 2 | 2 | ||
Trade payables | 765 | 1,102 | ||
Purchases | 4,704 | 3,735 | 4,378 | |
Andrade gutierrez engenharia s.a. [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 3,353 | 1,890 | ||
Purchases | 38,907 | 41,498 | 26,280 | |
Auren Comercializadora De Energia Ltda [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 976 | 945 | ||
Trade accounts receivable | 1 | 302 | ||
Purchases | 4,974 | 16,207 | 7,721 | |
Sales | 744 | 5,993 | 9,740 | |
Campos Novos Energia S.a [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 9,652 | |||
Purchases | 4,954 | |||
Companhia brasileira de aluminio [member | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 263 | 264 | ||
Trade accounts receivable | 187 | 158 | ||
Purchases | 8,891 | 3,736 | 1,156 | |
Sales | 9,708 | 8,988 | 7,828 | |
Votorantim cimentos s.a. [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 163 | 64 | ||
Trade accounts receivable | 607 | 551 | ||
Purchases | 3,078 | 661 | 524 | |
Votorantim international csc s.a.c [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 1 | 306 | ||
Related parties' liabilities | 487 | 152 | ||
Purchases | 12,480 | 4,278 | 6,638 | |
Other related parties [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 164 | 240 | ||
Trade accounts receivable | 6 | 5 | ||
Related parties' liabilities | 546 | 241 | ||
Dividends payable | 7,922 | 11,441 | ||
Purchases | $ 1,157 | 1,120 | 582 | |
Other [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Sales | $ 113 | $ 11 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | $ 2,087,730 | $ 1,898,296 | ||
Additions | [1] | 404,720 | 552,905 | |
Disposals and write-offs | (1,449) | (10,435) | ||
Depreciation | (199,893) | (177,029) | ||
Impairment (loss) reversal of long-lived assets | (18,763) | |||
[custom:DerecognitionOfPropertyPlantAndEquipment] | [1] | (29,216) | ||
Foreign exchange effects | 85,452 | (83,539) | ||
Transfers | (4,281) | (23,757) | [2] | |
Remeasurement of asset retirement obligations | (29,025) | (36,860) | ||
Balance at the end of the year | 2,295,275 | 2,087,730 | ||
Reclassification | [3] | (31,851) | ||
Dam and buildings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 438,985 | 454,603 | ||
Additions | [1] | 4 | 12 | |
Disposals and write-offs | (568) | (567) | ||
Depreciation | (82,293) | (56,493) | ||
Impairment (loss) reversal of long-lived assets | 19,802 | |||
[custom:DerecognitionOfPropertyPlantAndEquipment] | [1] | (19,688) | ||
Foreign exchange effects | 18,577 | (15,963) | ||
Transfers | 466,513 | 57,393 | [2] | |
Balance at the end of the year | 841,332 | 438,985 | ||
Machinery equipment and facilities [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 567,371 | 626,194 | ||
Additions | [1] | 706 | 671 | |
Disposals and write-offs | (369) | (7,663) | ||
Depreciation | (109,009) | (110,895) | ||
Impairment (loss) reversal of long-lived assets | 7,513 | |||
[custom:DerecognitionOfPropertyPlantAndEquipment] | [1] | (8,711) | ||
Foreign exchange effects | 23,855 | (23,188) | ||
Transfers | 284,635 | 82,252 | [2] | |
Balance at the end of the year | 765,991 | 567,371 | ||
Construction in progress [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 812,095 | 527,532 | ||
Additions | [1] | 381,223 | 507,907 | |
Disposals and write-offs | (430) | (454) | ||
Impairment (loss) reversal of long-lived assets | (6,168) | |||
[custom:DerecognitionOfPropertyPlantAndEquipment] | [1] | (634) | ||
Foreign exchange effects | 37,280 | (40,278) | ||
Transfers | (767,561) | (182,612) | [2] | |
Balance at the end of the year | 455,805 | 812,095 | ||
Transfer | 748 | |||
Additions | 15,946 | 19,614 | ||
Transfer to inventories | 23,009 | |||
Asset retirement obligation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 83,803 | 86,812 | ||
Additions | [1] | 22,252 | 42,739 | |
Depreciation | (5,169) | (6,436) | ||
Foreign exchange effects | 3,686 | (2,452) | ||
Remeasurement of asset retirement obligations | (29,025) | (36,860) | ||
Balance at the end of the year | 75,547 | 83,803 | ||
Mining assets [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 165,237 | 183,624 | ||
Additions | [1] | 479 | ||
Depreciation | (2,120) | (2,062) | ||
Impairment (loss) reversal of long-lived assets | (39,910) | |||
Foreign exchange effects | 1,215 | (1,027) | ||
Transfers | 3,524 | 16,553 | [2] | |
Balance at the end of the year | 128,425 | 165,237 | ||
Reclassification | [3] | (31,851) | ||
Transfer | 31,851 | |||
Other property, plant and equipment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 20,239 | 19,531 | ||
Additions | [1] | 56 | 1,576 | |
Disposals and write-offs | (82) | (1,751) | ||
Depreciation | (1,302) | (1,143) | ||
[custom:DerecognitionOfPropertyPlantAndEquipment] | [1] | (183) | ||
Foreign exchange effects | 839 | (631) | ||
Transfers | 8,608 | 2,657 | [2] | |
Balance at the end of the year | 28,175 | 20,239 | ||
Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 4,678,973 | 4,520,321 | ||
Balance at the end of the year | 5,135,969 | 4,678,973 | ||
Gross carrying amount [member] | Dam and buildings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 1,054,413 | 1,022,432 | ||
Balance at the end of the year | 1,512,360 | 1,054,413 | ||
Gross carrying amount [member] | Machinery equipment and facilities [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 2,330,748 | 2,360,426 | ||
Balance at the end of the year | 2,636,582 | 2,330,748 | ||
Gross carrying amount [member] | Construction in progress [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 874,776 | 596,675 | ||
Balance at the end of the year | 521,191 | 874,776 | ||
Gross carrying amount [member] | Asset retirement obligation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 202,242 | 211,650 | ||
Balance at the end of the year | 200,665 | 202,242 | ||
Gross carrying amount [member] | Mining assets [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 181,528 | 292,322 | ||
Balance at the end of the year | 221,077 | 181,528 | ||
Gross carrying amount [member] | Other property, plant and equipment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | 35,266 | 36,816 | ||
Balance at the end of the year | 44,094 | 35,266 | ||
Accumulated Depreciation Amortization And Impairment [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (2,591,243) | (2,622,025) | ||
Balance at the end of the year | (2,840,694) | (2,591,243) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Dam and buildings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (615,428) | (567,829) | ||
Balance at the end of the year | (671,028) | (615,428) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Machinery equipment and facilities [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (1,763,377) | (1,734,232) | ||
Balance at the end of the year | (1,870,591) | (1,763,377) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Construction in progress [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (62,681) | (69,143) | ||
Balance at the end of the year | (65,386) | (62,681) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Asset retirement obligation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (118,439) | (124,838) | ||
Balance at the end of the year | (125,118) | (118,439) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Mining assets [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (16,291) | (108,698) | ||
Balance at the end of the year | (92,652) | (16,291) | ||
Accumulated Depreciation Amortization And Impairment [Member] | Other property, plant and equipment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at the beginning of the year | (15,027) | (17,285) | ||
Balance at the end of the year | $ (15,919) | $ (15,027) | ||
[1]Additions include capitalized borrowing costs on Assets and projects under construction in the amount of USD 15,946 19,614 23,009 748 31,851 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | ||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | $ 1,056,771,000 | $ 2,392,388,000 | ||||
Balance at the beginning of the year | 1,076,405,000 | |||||
Additions | 57,529,000 | [1] | 21,821,000 | [2] | ||
Amortization | (82,334,000) | (71,379,000) | ||||
Impairment (loss) reversal of long-lived assets | (13,749,000) | |||||
[custom:DerecognitionOfIntangibleAssets] | [1] | (9,382,000) | ||||
Foreign exchange effect | 3,811,000 | (2,666,000) | ||||
Transfers | 4,281,000 | 748,000 | ||||
Balance at the end of the year | 1,016,927,000 | 1,056,771,000 | ||||
Reclassification of intengible assets | [3] | 31,851,000 | ||||
Balance at the beginning of the year | 1,108,256,000 | |||||
Disposals | (9,000) | |||||
Intangible assets amortized | $ 46,100,000 | |||||
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 the Generation Scaling Factor (“GSF”). 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). | |||||
Goodwill | $ 95,484,000 | $ 249,082,000 | ||||
Goodwill [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 406,228,000 | 406,434,000 | ||||
Impairment (loss) reversal of long-lived assets | (61,856,000) | |||||
Foreign exchange effect | 195,000 | (206,000) | ||||
Balance at the end of the year | 344,567,000 | 406,228,000 | ||||
Balance at the beginning of the year | 406,434,000 | |||||
Mining rights [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 612,270,000 | 648,870,000 | ||||
Additions | [1] | 57,529,000 | ||||
Amortization | (76,695,000) | (67,829,000) | ||||
Impairment (loss) reversal of long-lived assets | 48,107,000 | |||||
Foreign exchange effect | 3,661,000 | (622,000) | ||||
Transfers | 2,546,000 | |||||
Balance at the end of the year | 647,418,000 | 612,270,000 | ||||
Reclassification of intengible assets | [3] | 31,851,000 | ||||
Balance at the beginning of the year | 680,721,000 | |||||
Other intangible assets [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 38,273,000 | 21,101,000 | ||||
Additions | [2] | 21,821,000 | ||||
Amortization | (5,639,000) | (3,550,000) | ||||
[custom:DerecognitionOfIntangibleAssets] | [1] | (9,382,000) | ||||
Foreign exchange effect | (45,000) | (1,838,000) | ||||
Transfers | 1,735,000 | 748,000 | ||||
Balance at the end of the year | 24,942,000 | 38,273,000 | ||||
Balance at the beginning of the year | 21,101,000 | |||||
Disposals | (9,000) | |||||
Gross carrying amount [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 2,537,627,000 | |||||
Balance at the end of the year | 2,532,169 | 2,537,627,000 | ||||
Gross carrying amount [member] | Goodwill [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 673,570,000 | 673,776,000 | ||||
Balance at the end of the year | 611,909,000 | 673,570,000 | ||||
Gross carrying amount [member] | Mining rights [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 1,791,643,000 | 1,665,149,000 | ||||
Balance at the end of the year | 1,855,014,000 | 1,791,643,000 | ||||
Gross carrying amount [member] | Other intangible assets [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | 72,414,000 | 53,463,000 | ||||
Balance at the end of the year | 65,246,000 | 72,414,000 | ||||
Accumulated Depreciation Amortization And Impairment [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | (1,315,983,000) | |||||
Balance at the beginning of the year | (1,480,856,000) | |||||
Balance at the end of the year | (1,515,242,000) | (1,480,856,000) | ||||
Accumulated Depreciation Amortization And Impairment [Member] | Goodwill [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | (267,342,000) | (267,342,000) | ||||
Balance at the end of the year | (267,342,000) | (267,342,000) | ||||
Accumulated Depreciation Amortization And Impairment [Member] | Mining rights [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | (1,179,373,000) | (1,016,279,000) | ||||
Balance at the end of the year | (1,207,596,000) | (1,179,373,000) | ||||
Accumulated Depreciation Amortization And Impairment [Member] | Other intangible assets [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Balance at the beginning of the year | (34,141,000) | (32,362,000) | ||||
Balance at the end of the year | $ (40,304,000) | $ (34,141,000) | ||||
[1] The main addition is related to the offtake agreement signed on January 25, 2022 to sell 100% of the copper concentrate to be produced by Aripuanã for a specified period. As explained in note 16, this agreement replaced the obligation of future royalty payments arising from the acquisition of mining rights by the Company for the Aripuanã project. The fair value of this agreement on its 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 the Generation Scaling Factor (“GSF”). 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). |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | $ 12,690 | $ 18,869 |
New contracts | 2,018 | 5,174 |
Amortization | (8,710) | (10,303) |
Remeasurement | 419 | (290) |
Foreign exchange effect | 478 | (761) |
Balance at the end of the year | 6,895 | 12,690 |
Balance at the end of the year | 6,895 | 12,690 |
Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
New contracts | 1,547 | |
Amortization | (1,235) | |
Remeasurement | 563 | |
Foreign exchange effect | 71 | |
Balance at the end of the year | 2,833 | |
Balance at the end of the year | 2,833 | |
Machinery equipment and facilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
New contracts | 189 | |
Amortization | (2,330) | |
Remeasurement | (98) | |
Foreign exchange effect | 148 | |
I t equipmrnt [member] | ||
IfrsStatementLineItems [Line Items] | ||
New contracts | 282 | |
Amortization | (84) | |
Remeasurement | 0 | |
Foreign exchange effect | $ 0 | |
Average annual amortization rates % | 33% | |
Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
New contracts | ||
Amortization | (5,061) | |
Remeasurement | (46) | |
Foreign exchange effect | 259 | |
Balance at the end of the year | 1,152 | |
Balance at the end of the year | 1,152 | |
Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the end of the year | 198 | |
Balance at the end of the year | 198 | |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 50,004 | 47,562 |
Balance at the end of the year | 44,518 | 50,004 |
Balance at the end of the year | 44,518 | 50,004 |
Gross carrying amount [member] | Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 5,731 | |
Balance at the end of the year | 7,300 | 5,731 |
Balance at the end of the year | 7,300 | 5,731 |
Gross carrying amount [member] | Machinery equipment and facilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 17,560 | |
Balance at the end of the year | 18,106 | 17,560 |
Balance at the end of the year | 18,106 | 17,560 |
Gross carrying amount [member] | I t equipmrnt [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 5,427 | |
Balance at the end of the year | 282 | 5,427 |
Balance at the end of the year | 282 | 5,427 |
Gross carrying amount [member] | Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 21,286 | |
Balance at the end of the year | 18,830 | 21,286 |
Balance at the end of the year | 18,830 | 21,286 |
Accumulated depreciation and amortisation [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | (37,314) | (28,693) |
Balance at the end of the year | (37,623) | (37,314) |
Balance at the end of the year | (37,623) | (37,314) |
Accumulated depreciation and amortisation [member] | Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | (3,844) | |
Balance at the end of the year | (4,467) | (3,844) |
Balance at the end of the year | (4,467) | (3,844) |
Accumulated depreciation and amortisation [member] | Machinery equipment and facilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | (12,757) | |
Balance at the end of the year | (15,394) | (12,757) |
Balance at the end of the year | (15,394) | (12,757) |
Accumulated depreciation and amortisation [member] | I t equipmrnt [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | (5,427) | |
Balance at the end of the year | (84) | (5,427) |
Balance at the end of the year | (84) | (5,427) |
Accumulated depreciation and amortisation [member] | Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | (15,286) | |
Balance at the end of the year | (17,678) | (15,286) |
Balance at the end of the year | (17,678) | (15,286) |
Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 1,887 | |
Balance at the end of the year | 2,833 | 1,887 |
Balance at the end of the year | $ 2,833 | 1,887 |
Average annual amortization rates % | 31% | |
Machinery equipment and facilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | $ 4,803 | |
Balance at the end of the year | 2,712 | 4,803 |
Balance at the end of the year | $ 2,712 | 4,803 |
Average annual amortization rates % | 34% | |
I t equipmrnt [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | ||
Balance at the end of the year | 198 | |
Balance at the end of the year | 198 | |
Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at the beginning of the year | 6,000 | |
Balance at the end of the year | 1,152 | 6,000 |
Balance at the end of the year | $ 1,152 | $ 6,000 |
Average annual amortization rates % | 34% |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Right-of-use Assets And Lease Liabilities | |||
Balance at the beginning of the year | $ 19,638 | $ 25,689 | |
New contracts | 2,018 | 5,174 | |
Payments of lease liabilities | (17,091) | (9,827) | $ (9,100) |
Interest paid on lease liabilities | (994) | (1,415) | (1,385) |
Remeasurement | 419 | (302) | |
Interest accrued | 542 | 1,272 | |
Foreign exchange effect | 489 | (952) | |
Balance at the end of the year | 5,021 | 19,638 | $ 25,689 |
Current liabilities | 3,661 | 16,246 | |
Non-current liabilities | $ 1,360 | $ 3,393 |
Loans and financings (Details)
Loans and financings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 28, 2022 | Mar. 18, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||||
Interest rate | 4.625% | |||||
Current | $ 50,840 | $ 128,470 | $ 46,713 | |||
Non-current | 1,618,419 | 1,652,602 | ||||
Total borrowings | 1,669,259 | 1,699,315 | $ 2,024,314 | |||
Fair value | 1,580,448 | 1,766,967 | ||||
Fixed interest rate [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | 19,144 | |||||
Non-current | 1,191,828 | |||||
Total borrowings | 1,210,972 | 1,340,247 | ||||
Interbank Deposit Certificate Rate Cdi [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | 2,369 | |||||
Non-current | 48,353 | |||||
Total borrowings | 50,722 | 51,316 | ||||
Eurobonds u s d [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | 18,656 | |||||
Non-current | 1,191,827 | |||||
Total borrowings | 1,210,483 | [1] | 1,338,334 | |||
Fair value | $ 1,162,741 | 1,440,920 | ||||
Eurobonds u s d [member] | Fixed interest rate [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Interest rate | 5.84% | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | $ 26,105 | |||||
Non-current | 190,211 | |||||
Total borrowings | 216,316 | 215,801 | ||||
Fair value | $ 183,452 | 180,565 | ||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Brazilian System For Clearance And Custody Selic Rate [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Adjustment to interest rate | 3.10% | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Tlp Ipca [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Adjustment to interest rate | 5.46% | |||||
Export Credit Note One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Interest rate | 2.50% | |||||
Current | $ 90,000 | |||||
Export Credit Note One [Member] | London Interbank Offered Rate Libor Three Months [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Adjustment to interest rate | 1.54% | |||||
Export Credit Note [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | $ 5,500 | |||||
Non-current | 227,290 | |||||
Total borrowings | 232,790 | 135,077 | ||||
Fair value | $ 227,201 | 136,389 | ||||
Export Credit Note [Member] | Interbank Deposit Certificate Rate Cdi [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of reference rate | 134.20% | |||||
Export Credit Note [Member] | Interbank Deposit Certificate Rate Cdi One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of reference rate | 2.50% | |||||
Debentures [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Total borrowings | 4,916 | |||||
Fair value | 4,901 | |||||
Debentures [Member] | Interbank Deposit Certificate Rate Cdi [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of reference rate | 107.50% | |||||
Other borrowings [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Current | $ 579 | |||||
Non-current | 9,091 | |||||
Total borrowings | 9,670 | 5,187 | ||||
Fair value | $ 7,054 | $ 4,192 | ||||
[1]The negative balances refer to related funding costs (fee) amortization. |
Loans and financings (Details 1
Loans and financings (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans And Financings | |||
Balance at the beginning of the year | $ 1,699,315,000 | $ 2,024,314,000 | |
New loans and financings | 95,621,000 | 59,771,000 | |
Debt issue costs | (63,000) | (178,000) | |
Payments of loans and financings | (24,639,000) | (251,044,000) | |
Bonds repurchase | (128,470,000) | ||
Prepayment of fair value debt | (90,512,000) | ||
Foreign exchange effects | 22,695,000 | (21,066,000) | |
Changes in fair value of financing liabilities related to changes in the Company´s own credit risk | (521,000) | 5,066,000 | |
Changes in fair value of loans and financings | 1,472,000 | (10,784,000) | |
Write off of fair value of loans and financings | (8,596,000) | ||
Interest accrual | 110,679,000 | 113,456,000 | |
Interest paid on loans and financings | (109,263,000) | (121,112,000) | |
Amortization of debt issue costs | 2,433,000 | ||
Balance at the end of the year | $ 1,669,259,000 | $ 1,699,315,000 | $ 2,024,314,000 |
Loans and financings (Details 2
Loans and financings (Details 2) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | $ 1,669,259 | $ 1,699,315 | $ 2,024,314 | |||
Current | 50,840 | $ 128,470 | 46,713 | |||
Non-current | 1,618,419 | 1,652,602 | ||||
United States of America, Dollars | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1,392,625 | 1,426,962 | ||||
Current | 21,861 | |||||
Non-current | 1,370,764 | |||||
Brazil, Brazil Real | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 276,190 | 270,571 | ||||
Current | 28,535 | |||||
Non-current | 247,655 | |||||
Other [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 444 | 1,782 | ||||
Current | 444 | |||||
Not later than one year [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 50,840 | |||||
Later than two years and not later than three years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 111,628 | |||||
Later than three years and not later than four years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 71,173 | |||||
Later than four years and not later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 20,152 | |||||
Later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 803,300 | |||||
Later than ten years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 612,166 | |||||
Eurobonds u s d [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1,210,483 | [1] | 1,338,334 | |||
Current | 18,656 | |||||
Non-current | 1,191,827 | |||||
Eurobonds u s d [member] | Not later than one year [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | 18,656 | ||||
Eurobonds u s d [member] | Later than two years and not later than three years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | (2,149) | ||||
Eurobonds u s d [member] | Later than three years and not later than four years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | (2,216) | ||||
Eurobonds u s d [member] | Later than four years and not later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | (2,287) | ||||
Eurobonds u s d [member] | Later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | 698,561 | ||||
Eurobonds u s d [member] | Later than ten years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | [1] | 499,918 | ||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 216,316 | 215,801 | ||||
Current | 26,105 | |||||
Non-current | 190,211 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Not later than one year [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 26,105 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Later than two years and not later than three years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 24,773 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Later than three years and not later than four years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 23,722 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Later than four years and not later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 21,154 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 13,454 | |||||
Debt With Brazilian National Bank For Economic And Social Development [Member] | Later than ten years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 107,108 | |||||
Export Credit Note [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 232,790 | 135,077 | ||||
Current | 5,500 | |||||
Non-current | 227,290 | |||||
Export Credit Note [Member] | Not later than one year [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 5,500 | |||||
Export Credit Note [Member] | Later than two years and not later than three years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 88,907 | |||||
Export Credit Note [Member] | Later than three years and not later than four years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 48,382 | |||||
Export Credit Note [Member] | Later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 90,000 | |||||
Export Credit Note [Member] | Later than ten years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1 | |||||
Other borrowings [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 9,670 | $ 5,187 | ||||
Current | 579 | |||||
Non-current | 9,091 | |||||
Other borrowings [member] | Not later than one year [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 579 | |||||
Other borrowings [member] | Later than two years and not later than three years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 97 | |||||
Other borrowings [member] | Later than three years and not later than four years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1,285 | |||||
Other borrowings [member] | Later than four years and not later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1,285 | |||||
Other borrowings [member] | Later than five years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | 1,285 | |||||
Other borrowings [member] | Later than ten years [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loans and financings | $ 5,139 | |||||
[1]The negative balances refer to related funding costs (fee) amortization. |
Loans and financings (Details 4
Loans and financings (Details 4) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Current | $ 50,840 | $ 128,470 | $ 46,713 | |
Non-current | 1,618,419 | 1,652,602 | ||
Loans and financings | 1,669,259 | 1,699,315 | $ 2,024,314 | |
Fixed interest rate [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 19,144 | |||
Non-current | 1,191,828 | |||
Loans and financings | 1,210,972 | 1,340,247 | ||
Ifrs london interbank offered rate libor [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 1,474 | |||
Non-current | 88,937 | |||
Loans and financings | 90,411 | 88,677 | ||
Brazilian national monetary council and brazil expected inflation plus spread tlp [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 14,348 | |||
Non-current | 160,924 | |||
Loans and financings | 175,272 | 170,324 | ||
Brazilian national bank for economic and social development brazilian system for clearance and custody [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 7,943 | |||
Non-current | 19,853 | |||
Loans and financings | 27,796 | 29,680 | ||
Interbank Deposit Certificate Rate Cdi [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 2,369 | |||
Non-current | 48,353 | |||
Loans and financings | 50,722 | 51,316 | ||
S O F R [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 1,657 | |||
Non-current | 90,000 | |||
Loans and financings | 91,657 | |||
Long term interest rate set by brazilian national monetary council [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 3,830 | |||
Non-current | 18,524 | |||
Loans and financings | 22,354 | $ 19,071 | ||
Other floating interest rates [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Loans and financings | $ 75 |
Loans and financings (Details N
Loans and financings (Details Narrative) R$ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 28, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 18, 2022 USD ($) | Mar. 18, 2022 BRL (R$) | |
IfrsStatementLineItems [Line Items] | ||||||
Principal amount | $ 128,470 | $ 50,840 | $ 46,713 | |||
Equivalent | (497,826) | (743,817) | $ (1,086,163) | |||
Borrowing interest rate | 4.625% | |||||
Accrued interest | $ 2,971 | $ 104,689 | $ 96,565 | $ 97,422 | ||
Premium paid | $ 3,277 | |||||
Export Credit Note One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Principal amount | $ 90,000 | |||||
Equivalent | R$ | R$ 459468 | |||||
Borrowing interest rate | 2.50% | 2.50% |
Trade Payables (Details)
Trade Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 |
Trade Payables | |||
Trade payables | $ 398,519 | $ 407,007 | |
Related parties - note 20 | 15,337 | 4,811 | |
Trade payables | $ 413,856 | $ 1,014 | $ 411,818 |
Confirming Payables (Details Na
Confirming Payables (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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% | ||
Amount of interests paid | $ 932 | $ 1,290 | |
Confirming payables | $ 216,392 | $ 232,860 | $ 145,295 |
Confirming Payables (Details)
Confirming Payables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | $ 264,151 | $ 276,046 | |
Additions | [1] | 35,036 | 51,893 |
Payments | (25,393) | (26,255) | |
Foreign exchange effects | 9,160 | (7,851) | |
Interest accrual | 23,662 | 9,667 | |
Remeasurement discount rate | [1],[2] | (40,297) | (39,350) |
Balance at the end of the year | 266,319 | 264,151 | |
Current liabilities | 23,646 | 31,953 | |
Non-current liabilities | 242,673 | 232,197 | |
Provision for decommissioning, restoration and rehabilitation costs [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 221,710 | ||
Additions | [1] | 26,116 | |
Payments | (14,879) | ||
Foreign exchange effects | 6,034 | ||
Interest accrual | 20,014 | ||
Remeasurement discount rate | [1],[2] | (39,072) | |
Balance at the end of the year | 219,923 | 221,710 | |
Current liabilities | 18,658 | ||
Non-current liabilities | 201,265 | ||
Other environment related provision [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 42,441 | ||
Additions | [1] | 8,920 | |
Payments | (10,514) | ||
Foreign exchange effects | 3,126 | ||
Interest accrual | 3,648 | ||
Remeasurement discount rate | [1],[2] | (1,225) | |
Balance at the end of the year | 46,396 | $ 42,441 | |
Current liabilities | 4,988 | ||
Non-current liabilities | $ 41,408 | ||
[1]As of December 31, 2022, the credit risk-adjusted rate used for Peru was between 10.92% and 12.04% (December 31, 2021: 3.54% and 7.28%) and for Brazil was between 8.22% and 8.61% (December 31, 2021: 7.68% and 8.67%).[2]The change in the period ended on December 31, 2022, was mainly due to the time change in the expected disbursements on decommissioning obligations in certain operations, in accordance with updates in their asset retirement and environmental obligations studies, and by the increase in the discount rates, as described above. In this way, asset retirement obligations for operational assets, decreased in an amount of USD 6,773 (December 31, 2021: increase of USD 5,879) as shown in note 21; and asset retirement and environmental obligations for non-operational assets expense in USD 1,512 (December 31, 2021: expense of USD 6,664) as shown in note 9. |
Provisions (Details)
Provisions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | $ 36,828,000 | $ 30,896,000 | |
Additions | [1] | 13,148,000 | 33,305,000 |
Derecognition of Nexa's share of Enercan's provisions - note 4 | (311,000) | ||
Reversals | (5,484,000) | (20,132,000) | |
Interest accrual | 1,754,000 | 746,000 | |
Payments | (4,584,000) | (5,327,000) | |
Foreign exchange effect | 2,266,000 | (2,385,000) | |
Other | 280,000 | (275,000) | |
Balance at the end of the year | 43,897,000 | 36,828,000 | |
Legal proceedings provision tax [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 4,535,000 | ||
Additions | [1] | 4,282,000 | |
Derecognition of Nexa's share of Enercan's provisions - note 4 | (311,000) | ||
Reversals | (722,000) | ||
Interest accrual | 547,000 | ||
Payments | (802,000) | ||
Foreign exchange effect | 398,000 | ||
Other | 232,000 | ||
Balance at the end of the year | 8,159,000 | 4,535,000 | |
Legal Proceedings Provision Labor [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 18,674,000 | ||
Additions | [1] | 5,016,000 | |
Reversals | (3,288,000) | ||
Interest accrual | 1,494,000 | ||
Payments | (1,936,000) | ||
Foreign exchange effect | 1,117,000 | ||
Other | (557,000) | ||
Balance at the end of the year | 20,520,000 | 18,674,000 | |
Legal proceedings provision civil [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 703,000 | ||
Additions | [1] | 724,000 | |
Reversals | (409,000) | ||
Interest accrual | (383,000) | ||
Payments | (1,180,000) | ||
Foreign exchange effect | 89,000 | ||
Other | 700,000 | ||
Balance at the end of the year | 244,000 | 703,000 | |
Legal proceedings provision environmental [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the year | 12,916,000 | ||
Additions | [1] | 3,126,000 | |
Reversals | (1,065,000) | ||
Interest accrual | 96,000 | ||
Payments | (666,000) | ||
Foreign exchange effect | 662,000 | ||
Other | (95,000) | ||
Balance at the end of the year | $ 14,974,000 | $ 12,916,000 | |
[1]Brazillian Court of Justice |
Provisions (Details 1)
Provisions (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | |||
Carrying amount | $ 266,319 | $ 264,151 | $ 276,046 |
Legal proceedings provision tax [member] | |||
IfrsStatementLineItems [Line Items] | |||
Judicial deposits | (1,200) | (1,528) | |
Provisions | 9,359 | 6,062 | |
Carrying amount | 8,159 | 4,534 | |
Legal Proceedings Provision Labor [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Judicial deposits | (3,399) | (2,752) | |
Provisions | 23,919 | 21,431 | |
Carrying amount | 20,520 | 18,679 | |
Legal proceedings provision civil [member] | |||
IfrsStatementLineItems [Line Items] | |||
Judicial deposits | (751) | ||
Provisions | 244 | 1,451 | |
Carrying amount | 244 | 700 | |
Legal proceedings provision environmental [member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions | 14,974 | 12,915 | |
Carrying amount | 14,974 | 12,915 | |
Legal proceedings provision [member] | |||
IfrsStatementLineItems [Line Items] | |||
Judicial deposits | (4,599) | (5,031) | |
Provisions | 48,496 | 41,859 | |
Carrying amount | $ 43,897 | $ 36,828 |
Provisions (Details 2)
Provisions (Details 2) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | $ 349,322 | $ 134,804 |
Legal proceedings contingent liability tax [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 134,637 | 156,779 |
Legal proceedings contingent liability labor [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 41,454 | 36,215 |
Legal proceedings contingent liability environmental [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 16,946 | 14,618 |
Legal proceedings contingent liability civil [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 112,541 | 97,027 |
Legal proceedings contingent liability [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 305,578 | $ 304,639 |
Value added tax on sales of certain energy contracts [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 20,439 | |
Credits to purchases of property plant and equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | $ 7,046 |
Provisions (Details Narrative)
Provisions (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Judicial deposits outstanding | $ 16,753 | $ 5,446 |
Estimate of financial effect of contingent liability | 349,322 | $ 134,804 |
Income tax over transfers of shares in peru [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 60,784 | |
Compensation for exploration for mineral resources [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 11,219 | |
Indirect taxes on sales [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 3,802 | |
Indemnity lawsuits alleging property damage contingent civil liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | 16,374 | |
Alleged pollution of sao francisco river contingent environmental liability [member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimate of financial effect of contingent liability | $ 76,386 |
Contractual obligations (Detail
Contractual obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contractual Obligations | ||
Balance at the beginning of the year | $ 147,232 | $ 166,025 |
Revenues recognition upon ore delivery | (31,438) | (45,309) |
Remeasurement adjustment | 10,565 | 19,580 |
Accretion for the year | 5,801 | 6,936 |
Balance at the end of year | 132,160 | 147,232 |
Current | 26,188 | 33,156 |
Non-current | $ 105,972 | $ 114,076 |
Contractual obligations (Deta_2
Contractual obligations (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2016 USD ($) | |
Contractual Obligations | |
Upfront payment for silver streaming arrangement | $ 250,000 |
Shareholders equity (Details)
Shareholders equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2022 | $ 1,644,280 | $ 1,621,244 | $ 2,482,186 | |
Translation adjustment on foreign subsidiaries | 65,243 | (64,575) | (138,840) | |
Cash flow hedge accounting | (331) | |||
Changes in fair value of financial liabilities related to changes in the Company's own credit risk | (7,441) | (875) | ||
Changes in fair value of investments in equity instruments | (3,608) | |||
At December 31, 2022 | 1,710,254 | 1,644,280 | 1,621,244 | |
Attributable to NEXA's shareholders | 1,442,245 | 1,386,273 | $ 32,456 | |
Attributable to non-controlling interests | 268,009 | 258,007 | ||
Reserve of cash flow hedges including non controlling interest [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2022 | (334,318) | (269,743) | (130,903) | |
Translation adjustment on foreign subsidiaries | 65,243 | (64,575) | (138,840) | |
At December 31, 2022 | (269,075) | (334,318) | (269,743) | |
Reserve of cash flow hedges including non controlling interest [member] [Default Label] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2022 | 1,593 | 1,266 | 1,263 | |
Cash flow hedge accounting | (331) | 327 | 3 | |
At December 31, 2022 | 1,262 | 1,593 | 1,266 | |
Reserve of change in fair value of financial liability attributable to change in credit risk of liability [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2022 | (10,948) | (875) | ||
Changes in fair value of financial liabilities related to changes in the Company's own credit risk | 343 | (7,441) | (875) | |
Changes in fair value of investments in equity instruments | (3,608) | (2,632) | ||
At December 31, 2022 | (14,213) | (10,948) | (875) | |
Accumulated other comprehensive income including non controlling interest [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
At January 1, 2022 | (343,673) | (269,352) | (129,640) | |
At December 31, 2022 | (282,026) | $ (343,673) | $ (269,352) | |
Attributable to NEXA's shareholders | (243,124) | |||
Attributable to non-controlling interests | $ (38,902) |
Shareholders equity (Details 1)
Shareholders equity (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income for the year attributable to NEXA's shareholders | $ 49,101 | $ 114,332 | $ (559,247) |
Weighted average number of outstanding shares - in thousands | 132,439 | 132,439 | 132,439 |
Earnings (losses) per share - USD | $ 0.37 | $ 0.86 | $ (4.22) |
Schedule of Summarised financia
Schedule of Summarised financial information of the non-controlling interests (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
IfrsStatementLineItems [Line Items] | ||||
Current assets | $ 1,220,146 | $ 1,472,809 | $ 17,674 | |
Current liabilities | 898,764 | 989,282 | 18,499 | |
Current net assets | 32,456 | |||
Non-current assets | 3,671,636 | 3,432,027 | 40,342 | |
Non-current liabilities | 2,282,764 | 2,271,274 | $ 7,062 | |
Accumulated non-controlling interests | 268,009 | 258,007 | ||
Net revenues | 3,033,990 | 2,622,110 | $ 1,950,929 | |
Net income (loss) for the year | 76,394 | 156,087 | (652,506) | |
Other comprehensive loss | 61,647 | (74,321) | (139,712) | |
Total comprehensive income (loss) for the year | 138,041 | 81,766 | (792,218) | |
Comprehensive (loss) income attributable to non-controlling interests | 32,069 | 37,938 | (110,086) | |
Net cash provided by (used in) operating activities | 266,630 | 492,985 | 291,700 | |
Net cash (used in) provided by financing activities | (149,234) | (344,134) | 451,615 | |
(Decrease) increase in cash and cash equivalents | (245,991) | (342,346) | $ 387,545 | |
Nexa Resources Peru S.a.a. [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current assets | 658,099 | 680,609 | ||
Current liabilities | 260,980 | 288,736 | ||
Current net assets | 397,119 | 391,873 | ||
Non-current assets | 1,282,556 | 1,345,420 | ||
Non-current liabilities | 409,106 | 566,059 | ||
Non-current net assets | 873,449 | 779,361 | ||
Net assets | 1,270,568 | 1,171,234 | ||
Accumulated non-controlling interests | 217,167 | 213,997 | ||
Net revenues | 892,389 | 828,571 | ||
Net income (loss) for the year | 106,501 | 94,706 | ||
Other comprehensive loss | 7,308 | (940) | ||
Total comprehensive income (loss) for the year | 113,809 | 93,766 | ||
Comprehensive (loss) income attributable to non-controlling interests | 1,199 | 12,991 | ||
Net cash provided by (used in) operating activities | 196,850 | 179,842 | ||
Net cash used in investing activities | (86,969) | (93,632) | ||
Net cash (used in) provided by financing activities | (137,426) | (92,905) | ||
(Decrease) increase in cash and cash equivalents | (28,582) | (8,542) | ||
Pollarix S. A. [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current assets | 9,822 | 23,070 | ||
Current liabilities | 8,820 | 13,279 | ||
Current net assets | 1,002 | 9,791 | ||
Non-current assets | 68,984 | 53,516 | ||
Non-current net assets | 68,984 | 53,516 | ||
Net assets | 69,985 | 63,307 | ||
Accumulated non-controlling interests | 50,842 | 44,011 | ||
Net revenues | 6,906 | 20,996 | ||
Net income (loss) for the year | 29,635 | 39,136 | ||
Other comprehensive loss | 9,686 | (2,977) | ||
Total comprehensive income (loss) for the year | 39,321 | 36,159 | ||
Comprehensive (loss) income attributable to non-controlling interests | 30,870 | 24,947 | ||
Dividends paid to non-controlling interests | 24,592 | 23,730 | ||
Net cash provided by (used in) operating activities | 4,474 | (8,522) | ||
Net cash (used in) provided by financing activities | (6,945) | 8,997 | ||
(Decrease) increase in cash and cash equivalents | $ (2,471) | $ 475 |
Shareholders_ equity (Details N
Shareholders’ equity (Details Narrative) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Jun. 04, 2020 | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 BRL (R$) | Dec. 27, 2022 USD ($) | Dec. 27, 2022 BRL (R$) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 BRL (R$) | May 31, 2022 USD ($) | May 31, 2022 BRL (R$) | Apr. 29, 2022 USD ($) | Apr. 29, 2022 BRL (R$) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
IfrsStatementLineItems [Line Items] | ||||||||||||||
Capital | $ 132,439 | $ 132,439 | $ 132,439 | |||||||||||
Capital, shares | shares | 132,439 | 132,439 | 132,439 | |||||||||||
Par value ($ per share) | $ / shares | $ 1 | $ 1 | ||||||||||||
Authorized, but unissued and unsubscribed share capital | $ 231,925 | $ 231,925 | ||||||||||||
Percentage of equity interest held by the controlling shareholder (as a percent) | 64.68% | |||||||||||||
Dividends declared to non-controlling interests | $ 23,075 | $ 23,730 | $ 5,332 | |||||||||||
Dividends payment | 12,147 | R$ 63825 | $ 2,996 | R$ 15714 | $ 9,449 | R$ 46458 | ||||||||
Pollarix S. A. [Member] | ||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||
Dividends declared to non-controlling interests | $ 4,961 | R$ 25883 | $ 3,163 | R$ 16622 | $ 14,951 | R$ 73515 | ||||||||
Parent [member] | ||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||
Percentage of equity interest held by the controlling shareholder (as a percent) | 64.68% |
Impairment of long-lived asse_3
Impairment of long-lived assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||
Long-term zinc price (USD/t) | $ 2,787 | $ 2,724 | $ 2,449 | |
Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Brownfield projects - LOM (years) | [1] | 5 years | 4 years | 5 years |
Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Brownfield projects - LOM (years) | [1] | 14 years | 13 years | 14 years |
P E [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Discount rate | 6.93% | 6.22% | 7.22% | |
[1]As part of the Cerro Lindo CGU recoverable amount, the Company has included the value of its greenfield projects based on market multiples as disclosed above in the FVLCD section. No impairment indicator was identified for these greenfield projects, other than for Shalipayco and Pukaqaqa. |
Impairment of long-lived asse_4
Impairment of long-lived assets (Details 1) - Cerro Pasco [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
IfrsStatementLineItems [Line Items] | |
Carrying amount prior to impairment reversal | $ 192,110 |
Impairment reversal | 79,529 |
Carrying amount after impairment reversal | 271,640 |
Other Net Liability [Member] | |
IfrsStatementLineItems [Line Items] | |
Carrying amount prior to impairment reversal | (100,379) |
Carrying amount after impairment reversal | (100,379) |
Intangible Assets [Member] | |
IfrsStatementLineItems [Line Items] | |
Carrying amount prior to impairment reversal | 167,913 |
Impairment reversal | 48,272 |
Carrying amount after impairment reversal | 216,185 |
Property Plant And Equipments [Member] | |
IfrsStatementLineItems [Line Items] | |
Carrying amount prior to impairment reversal | 124,576 |
Impairment reversal | 31,258 |
Carrying amount after impairment reversal | $ 155,834 |
Impairment of long-lived asse_5
Impairment of long-lived assets (Details 2) - Mining Peru Cgu [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
IfrsStatementLineItems [Line Items] | |
Carrying amount prior to impairment | $ 310,938 |
Impairment | (61,856) |
Carrying amount after impairment | $ 249,082 |
Impairment of long-lived asse_6
Impairment of long-lived assets (Details 3) $ in Thousands | Dec. 31, 2022 USD ($) |
Cerro Lindo [Member] | |
IfrsStatementLineItems [Line Items] | |
Excess over recoverable amount | $ 179,440 |
Percentage assigned change | (28.10%) |
Value of assumption | $ 2,003 |
Cerro Lindo [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Percentage assigned change | 175.50% |
Cerro Lindo [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Percentage assigned change | 19.10% |
Cajamarquilla [Member] | |
IfrsStatementLineItems [Line Items] | |
Excess over recoverable amount | $ 407,027 |
Percentage assigned change | (15.20%) |
Value of assumption | $ 2,246 |
Cajamarquilla [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Percentage assigned change | 41.90% |
Cajamarquilla [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Percentage assigned change | 9.80% |
Impairment of long-lived asse_7
Impairment of long-lived assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Impairment reversal | $ 79,529 | |
Impairment loss | $ (557,497) | |
After tax impairment loss | (30,971) | |
Impairment loss | (88,437) | |
Additional impairment loss | (26,581) | |
Cerro Pasco [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Impairment reversal | 31,061 | |
Decrease impairment reversal | 48,468 | |
Impairment reversal | 70,010 | |
Decrease impairment reversal | 9,519 | |
Carrying amount prior to impairment reversal | 192,110 | |
Mining Peru Cgu [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount prior to impairment reversal | 310,938 | |
Carrying amount after impairment | 249,082 | |
Impairment Loss [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Impairment loss | (61,856) | |
Individual assets impairments | (10,275) | |
Construction amount | (39,910) | |
Net impairment loss | $ (32,512) |
Long-term commitments (Details
Long-term commitments (Details Narrative) $ in Thousands | Dec. 31, 2022 USD ($) |
Long-term Commitments | |
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) | Feb. 15, 2022 USD ($) |
Events after reporting period [member] | |
IfrsStatementLineItems [Line Items] | |
Cash distribution paid | $ 25,000 |