04/29/2021 | Press release | Distributed by Public on 04/29/2021 15:57

Financial Statements at March 31, 2021

	Nexa Resources S.A.
	Condensed consolidated interim
	financial statements (Unaudited)
	at and for the three-month period
	ended on March 31, 2021

Contents
Condensed consolidated financial interim statements
Condensed consolidated interim income statement	3
Condensed consolidated interim statement of comprehensive income	4
Condensed consolidated interim balance sheet	5
Condensed consolidated interim statement of cash flows	6
Condensed consolidated interim statement of changes in shareholders' equity	7

Notes to the condensed consolidated interim financial statements

1	General information	8
2	Information by business segment	9
3	Basis of preparation of the condensed consolidated interim financial statements	11
4	Net revenues	15
5	Expenses by nature	15
6	Other income and expenses, net	16
7	Net financial results	16
8	Current and deferred income tax	17
9	Financial instruments	18
10	Cash and cash equivalents	20
11	Derivative financial instruments	22
12	Trade accounts receivable	23
13	Inventory	24
14	Other assets	24
15	Property, plant and equipment	25
16	Intangible assets	26
17	Loans and financings	27
18	Asset retirement and environmental obligations	28
19	Impairment of non-current assets	29
20	Events after the reporting period	29

Nexa Resources S.A.
Condensed consolidated interim income statement
Unaudited
Periods ended March 31
All amounts in thousands of US dollars, unless otherwise stated

		Note			March 31, 2021			March 31, 2020
Net revenues			4				602,929				442,129
Cost of sales			5				(422,783	)			(391,348	)
Gross profit							180,146				50,781
Operating expenses
Selling, general and administrative			5				(36,537	)			(41,648	)
Mineral exploration and project evaluation			5				(14,314	)			(15,826	)
Impairment of non-current assets			19				-				(484,594	)
Other income and expenses, net			6				(8,531	)			(17,191	)
							(59,382	)			(559,259	)
Operating income (loss)							120,764				(508,478	)
Net financial results			7
Financial income							1,921				3,622
Financial expenses							(34,215	)			(39,742	)
Other financial items, net							(41,885	)			(129,227	)
							(74,179	)			(165,347	)
Income (loss) before income tax							46,585				(673,825	)
Income tax			8(a)
Current							(37,563	)			(20,720	)
Deferred							22,589				80,721
Net income (loss) for the period							31,611				(613,824	)
Attributable to NEXA's shareholders							22,787				(523,682	)
Attributable to non-controlling interests							8,824				(90,142	)
Net income (loss) for the period							31,611				(613,824	)
Weighted average number of outstanding shares - in thousands							132,439				132,439
Basic and diluted earnings (losses) per share - USD							0.17				(3.95	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Nexa Resources S.A.
Condensed consolidated interim income statement of comprehensive income
Unaudited
Periods ended March 31
All amounts in thousands of US dollars, unless otherwise stated

		Note			March 31, 2021			March 31, 2020
Net income (loss) for the period							31,611				(613,824	)
Other comprehensive (loss) income, net of income tax - items that can be reclassified to the income statement
Cash flow hedge accounting			11(b)			36				1,547
Deferred income tax							(121	)			(450	)
Translation adjustment of foreign subsidiaries							(51,786	)			(148,697	)
							(51,871	)			(147,600	)
Other comprehensive (loss) income, net of income tax - items that will not be reclassified to the income statement
Changes in fair value of financial liabilities that relate to changes in the Company's own credit risk			17(b)			(1,332	)			32,439
Deferred income tax							403				(10,824	)
Changes in fair value of investments in equity instruments							119				-
							(810	)			21,615
Other comprehensive loss for the period, net of income tax							(52,681	)			(125,985	)
Total comprehensive loss for the period							(21,070	)			(739,809	)
Attributable to NEXA's shareholders							(25,484	)			(634,982	)
Attributable to non-controlling interests							4,414				(104,827	)
Total comprehensive loss for the period							(21,070	)			(739,809	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Nexa Resources S.A.
Condensed consolidated interim balance sheet Unaudited All amounts in thousands of US Dollars, unless otherwise stated

Assets		Note		March 31, 2021			December 31, 2020
Current assets
Cash and cash equivalents			10			1,006,055				1,086,163
Financial investments						27,710				35,044
Derivative financial instruments			11			10,068				16,329
Trade accounts receivables			12			175,604				229,032
Inventory			13			310,118				256,522
Recoverable income tax						6,127				12,953
Other assets			14			81,676				91,141
						1,617,358				1,727,184
Non-current assets
Investment in equity instruments			1 (c)			6,290				-
Derivative financial instruments			11			8,018				15,651
Deferred income tax			8			225,817				221,580
Recoverable income tax						10,221				13,110
Other assets			14			78,235				93,131
Property, plant and equipment			15			1,834,955				1,898,296
Intangible assets			16			1,058,599				1,076,405
Right-of-use assets						15,964				18,869
						3,238,099				3,337,042
Total assets						4,855,457				5,064,226
Liabilities and shareholders' equity
Current liabilities
Loans and financings			17			133,323				146,002
Lease liabilities						15,601				15,999
Derivative financial instruments			11			3,449				5,390
Trade payables						347,379				370,122
Confirming payables						158,853				145,295
Dividends payable						8,551				4,557
Asset retirement and environmental obligations			18			39,068				33,095
Contractual obligations						23,894				27,132
Salaries and payroll charges						45,397				56,107
Tax liabilities						31,138				43,630
Other liabilities						28,394				29,230
						835,047				876,559
Non-current liabilities
Loans and financings			17			1,792,523				1,878,312
Lease liabilities						7,322				9,690
Derivative financial instruments			11			32,345				21,484
Asset retirement and environmental obligations			18			224,808				242,951
Provisions						31,214				30,896
Deferred income tax			8			215,653				218,392
Contractual obligations						130,244				138,893
Other liabilities						25,052				25,805
						2,459,161				2,566,423
Total liabilities						3,294,208				3,442,982
Shareholders' equity
Attributable to NEXA's shareholders						1,316,961				1,377,445
Attributable to non-controlling interests						244,288				243,799
						1,561,249				1,621,244
Total liabilities and shareholders' equity						4,855,457				5,064,226

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Nexa Resources S.A.
Condensed consolidated interim statement of cash flows
Unaudited
Periods ended March 31
All amounts in thousands of US Dollars, unless otherwise stated

		Note		March 31, 2021			March 31, 2020
Cash flows from operating activities
Income (loss) before income tax						46,585				(673,825	)
Impairment of non-current assets			19			-				484,594
Depreciation and amortization			15 and 16			59,198				67,593
Interest and foreign exchange effects						32,906				136,756
Gain on sale of property, plant and equipment and intangible assets			6			(393	)			(170	)
Changes in accruals						9,674				18,114
Changes in Fair Value of loans and financings			7			(8,875	)			9,543
Changes in Fair Value of derivative financial instruments						13,480				3,347
Contractual obligations						(13,310	)			(9,903	)
Changes in operating assets and liabilities			10 (b)			13,142				(61,393	)
Cash provided by (used in) operating activities						152,407				(25,344	)
Interest paid on loans and financings			17 (b)			(35,493	)			(10,247	)
Interest paid on lease liabilities						(302	)			(487	)
Premium paid on bonds repurchase			17 (b)			-				(14,481	)
Income tax paid						(21,948	)			(15,561	)
Net cash provided by (used in) operating activities						94,664				(66,120	)
Cash flows from investing activities
Additions of property, plant and equipment						(82,623	)			(85,309	)
Net sales (purchases) of financial investments						6,651				(165,097	)
Proceeds from the sale of property, plant and equipment						779				4
Investment in equity instruments			1 (c)			(6,220	)			-
Net cash used in investing activities						(81,413	)			(250,402	)
Cash flows from financing activities
New loans and financings			17 (b)			-				345,633
Debt issue costs			17 (b)			-				(1,426	)
Payments of loans and financings			17 (b)			(47,204	)			(1,094	)
Bonds repurchase			17 (b)			-				(214,530	)
Payments of lease liabilities						(2,257	)			(2,586	)
Dividends paid			1 (b)			(33,145	)			(50,000	)
Net cash (used in) provided by financing activities						(82,606	)			75,997
Foreign exchange effects on cash and cash equivalents						(10,753	)			(5,910	)
Decrease in cash and cash equivalents						(80,108	)			(246,435	)
Cash and cash equivalents at the beginning of the period						1,086,163				698,618
Cash and cash equivalents at the end of the period						1,006,055				452,183

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Nexa Resources S.A.
Condensed consolidated interim statement of changes in shareholders' equity
Unaudited
At and for the three-month period ended on March 31
All amounts in thousands of US dollars, unless otherwise stated

	Capital		Treasury shares		Share premium		Additional paid in capital		Retained earnings (cumulative deficit)		Accumulated other comprehensive loss		Total		Non- controlling interests		Total shareholders' equity
At January 1, 2020	133,320		(9,455	)	1,043,755		1,245,418		(196,855	)	(106,606	)	2,109,577		372,609		2,482,186
Net loss for the period	-		-		-		-		(523,682	)			(523,682	)	(90,142	)	(613,824	)
Other comprehensive loss for the period	-		-		-		-		-		(111,300	)	(111,300	)	(14,685	)	(125,985	)
Total comprehensive loss for the period	-		-		-		-		(523,682	)	(111,300	)	(634,982	)	(104,827	)	(739,809	)
Dividends distribution to NEXA's shareholders - USD 0.38 per share	-		-		-		-		(50,000	)	-		(50,000	)	-		(50,000	)
Total distributions to shareholders	-		-		-		-		(50,000	)	-		(50,000	)	-		(50,000	)
At March 31, 2020	133,320		(9,455	)	1,043,755		1,245,418		(770,537	)	(217,906	)	1,424,595		267,782		1,692,377
At January 1, 2021	132,438		-		1,043,755		1,245,418		(814,675	)	(229,491	)	1,377,445		243,799		1,621,244
Net income for the period	-		-		-		-		22,787				22,787		8,824		31,611
Other comprehensive loss for the period	-		-		-		-		-		(48,271	)	(48,271	)	(4,410	)	(52,681	)
Total comprehensive (loss) income for the period	-		-		-		-		22,787		(48,271	)	(25,484	)	4,414		(21,070	)
Dividends distribution to NEXA's shareholders - USD 0.26 per share	-		-		-		-		(35,000	)	-		(35,000	)	-		(35,000	)
Dividends distribution to non-controlling interests	-		-		-		-		-		-		-		(3,925	)	(3,925	)
Total distributions to shareholders	-		-		-		-		(35,000	)	-		(35,000	)	(3,925	)	(38,925	)
At March 31, 2021	132,438		-		1,043,755		1,245,418		(826,888	)	(277,762	)	1,316,961		244,288		1,561,249

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

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') and the Toronto Stock Exchange ('TSX'). The Company's registered office is located at 37A, Avenue J. F. Kennedy in the city of Luxembourg in the Grand Duchy of Luxembourg.

NEXA and its subsidiaries (the 'Company') have operations that comprise large-scale, mechanized underground and open pit mines and smelters. The Company owns and operates three polymetallic mines in Peru, and two polymetallic mines in Brazil and is constructing another polymetallic mine in Brazil. The Company also owns and operates a zinc smelter in Peru and two zinc smelters in Brazil.

The Company's majority shareholder is Votorantim S.A. ('VSA'), which holds 64.68% of its equity. VSA is a Brazilian privately-owned industrial conglomerate that holds ownership interests in metal, steel, cement, and energy companies, among others.

Main events for the three-month period ended on March 31, 2021

(a)COVID-19 outbreak impacts on NEXA´s financial statements and operations

In March 2020, the World Health Organization characterized the current COVID-19 disease ('COVID-19') as a pandemic. Since then, COVID-19 spread across the world with severe effects that impacted the global economy in general and the Company's business. As a response to COVID-19, the Company implemented and continues to implement additional safety procedures in all its operations to ensure the health and safety of its employees, contractors and communities.

The Company remains committed to maintaining the continuity of its business, having implemented measures to mitigate the impacts that COVID-19 has had and could still have on its operations, supply chain and financial condition, considering the pandemic's current status and the slow and diverse progress of the vaccination campaigns around the world.

Government authorities in the countries in which the Company operates implemented policies in response to the COVID-19 global outbreak, which negatively affected the Company's financial position, results of operations and cash flows for the year ended on December 31, 2020, particularly in Peru during the first and second quarters of 2020, when the Company's Peruvian mines were suspended and its Peruvian smelters reduced production in response to measures imposed by the Peruvian government.

Currently, although the Peruvian subsidiaries continue to operate subject to additional measures to control and mitigate the spread of COVID-19, they have returned to their normal production levels except for the Atacocha underground mine which continues suspended under care and maintenance. On January 27, 2021 the Peruvian government, among other measures in response to the in-country COVID-19 status declared a new lockdown in certain areas of the country which ended on February 28, 2021 while maintaining some restrictive mobilization measures. The Peruvian operations were not affected by these additional measures.

During the first quarter of 2021, due to the accelerated increase of cases in Brazil and the collapse of its health care system, the Brazilian government took actions to deal with the spread of the virus, including emergency quarantines in some states, some of which continue as of the date of issuance of these financial statements. The Brazilian operations, however, have not been affected by these measures.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

Although the Company's operations have returned to normal, the ultimate impact of the COVID-19 global outbreak on the Company's financial condition, results of operations and cash flows depends on the pandemic's continuing duration and severity, on the efforts to contain its spread, on the abilities of countries to advance in the distribution of effective vaccines against it, and on the impact of response measures taken by the Company, governments, and others. A new disruption period or an extended global recession caused by the outbreak, could materially and adversely impact the Company's results of operations, access to sources of liquidity and overall financial condition. Within this context, since the beginning of the pandemic, the Company has prioritized measures to strengthen its cash position and enhance its short-term liquidity.

(b)Dividends distribution

On February 11, 2021, the Company's Board of Directors approved, subject to ratification by the Company's shareholders at the 2022 annual shareholders' meeting in accordance with Luxembourg laws, a cash dividend distribution to the Company's shareholders of record on March 12, 2021 of USD 35,000.

(c)Investment in equity instruments - Tinka shares acquisition

On March 17, 2021, the Company acquired 29,895,754 common shares of Tinka Resources Limited ('Tinka'), an exploration and development company, from an arm's length shareholder in a private transaction at a market price of CAD 0.26 per share for total consideration of CAD 7,773 (USD 6,220). As a result, the Company owns 8.8% of the issued and outstanding common shares of Tinka, which holds 100% of the Ayawilca zinc-silver project in Peru. The transaction is accounted for as an investment in equity instruments at its acquisition cost and will be subsequently measured at fair value through other comprehensive income.

(d)Prepaid Export Credit Note

On January 22, 2021, the Company prepaid the outstanding principal and accrued interest of an Export Credit Note in Brazil in the amount of BRL 250,000 thousand and BRL 12,905 thousand of accrued interest (a total of approximately USD 51,105).

(e)Temporary suspension of Vazante's Extremo Norte Mine

In March 2021, during a regular inspection at the Extremo Norte mine in Vazante, above-normal ground displacements were identified in the area around the mine's main access and escape route. The Extremo Norte mine requires dewatering the aquifer for its operations, which leads to depressurization and can cause local disturbances in the rock mass around the mine. As a preventive measure, activities in this area have been temporarily suspended. The Company, supported by external experts, initiated a detailed analysis of the geological and geotechnical conditions to ensure the safety of its workers and the resumption of the operational activities in the Extremo Norte mine. Mining acitivites are expected to resume in July 2021 and the Company does not expect any material impact in its financial statements associated with this event.

2Information by business segment

The presentation of segment results and reconciliation to income (loss) before income tax in the condensed consolidated interim income statement is as follows:

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

		March 31, 2021
		Mining			Smelting			Intersegment sales			Adjustments (ii)			Consolidated
Net revenues (i)			255,244				467,399				(129,315	)			9,601				602,929
Cost of sales			(163,596	)			(380,462	)			129,315				(8,040	)			(422,783	)
Gross profit			91,648				86,937				-				1,561				180,146
Selling, general and administrative			(17,180	)			(16,179	)			-				(3,178	)			(36,537	)
Mineral exploration and project evaluation			(13,015	)			(1,298	)			-				(1	)			(14,314	)
Other income and expenses, net			(1,930	)			(6,024	)			-				(577	)			(8,531	)
Operating income (loss)			59,523				63,436				-				(2,195	)			120,764
Depreciation and amortization			37,795				20,134				-				1,269				59,198
Adjusted EBITDA			97,318				83,570				-				(926	)			179,962
Depreciation and amortization																			(59,198	)
Net financial results																			(74,179	)
Income before income tax																			46,585

		March 31, 2020
		Mining			Smelting			Intersegment sales			Adjustments (ii)			Consolidated
Net revenues (i)			162,523				371,848				(87,710	)			(4,532	)			442,129
Cost of sales			(183,177	)			(313,245	)			87,710				17,364				(391,348	)
Gross profit			(20,654	)			58,603				-				12,832				50,781
Selling, general and administrative			(18,534	)			(16,689	)			-				(6,425	)			(41,648	)
Mineral exploration and project evaluation			(13,192	)			(4,161	)			-				1,527				(15,826	)
Impairment of non-current assets			(446,687	)			(37,907	)			-				-				(484,594	)
Other income and expenses, net			(9,697	)			1,305				-				(8,799	)			(17,191	)
Operating (loss) income			(508,764	)			1,151				-				(865	)			(508,478	)
Depreciation and amortization			45,487				22,313				-				(203	)			67,597
Impairment of non-current assets (iii)			446,687				37,907				-				-				484,594
Adjusted EBITDA			(16,590	)			61,371				-				(1,068	)			43,713
Impairment of non-current assets (iii)																			(484,594	)
Depreciation and amortization																			(67,597	)
Net financial results																			(165,347	)
Loss before income tax																			(673,825	)

(i) As more fully described in NEXA's audited consolidated financial statements for the year ended on December 31, 2020, all revenues from products or services transferred to customers occur at a point in time.

(ii) The internal information used for making decisions is prepared using International Financial Reporting Standards ('IFRS') based accounting measurements and management reclassifications between income statement lines items, which are reconciled to the condensed consolidated interim financial statements in the column 'Adjustments'. These adjustments include reclassifications of the effects of derivative financial instruments from Other income and expenses, net to Net revenues and Cost of sales; and, of certain overhead costs from Other income and expenses, net to Cost of sales and/or Selling, general and administrative expenses.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(iii) For the three-month period ended on March 31, 2020, this line was described as 'Exceptional items' and for a better understanding, it has been changed to 'Impairment of non-current assets'.

3Basis of preparation of the condensed consolidated interim financial statements

These condensed consolidated interim financial statements as at and for the three-month period ended on March 31, 2021 have been prepared in accordance with the International Accounting Standard 34 Interim Financial Reporting ('IAS 34') using the accounting principles consistent with the IFRS as issued by the International Accounting Standards Board ('IASB').

These condensed consolidated interim financial statements do not include all disclosures required by IFRS for annual consolidated financial statements and accordingly, should be read in conjunction with the Company's audited consolidated financial statements for the year ended on December 31, 2020 prepared in accordance with IFRS as issued by the IASB.

These condensed consolidated interim financial statements have been prepared on the basis of, and using the accounting policies, methods of computation and presentation consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended on December 31, 2020.

The preparation of these condensed consolidated interim financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the period end. Such estimates and assumptions affect the carrying amounts of the Company's goodwill, long-lived assets, indefinite-lived intangible assets, inventory, deferred income taxes, and the allowance for doubtful accounts. These critical accounting estimates and assumptions represent approximations that are uncertain and changes in those estimates and assumptions could materially impact the Company's condensed consolidated interim financial statements. Actual future outcomes may differ from present estimates and assumptions and the Company reviews them on an ongoing basis using the most current information available. Events and changes in circumstances arising after March 31, 2021, including those resulting from the impacts of COVID-19, will be reflected in management's estimates and assumptions for future periods. Management also exercises judgment in the process of applying the Company's accounting policies.

The critical judgments, estimates and assumptions in the application of accounting principles during the three-month period ended on March 31, 2021 are the same as those disclosed in the Company's audited consolidated financial statements for the year ended on December 31, 2020.

These condensed consolidated interim financial statements for the three-month period ended on March 31, 2021 were approved on April 29, 2021 to be issued in accordance with a resolution of the Board of Directors.

New and amended standards- applicable January 1, 2021

Several new and amended standards became applicable for the current reporting period. The Company does not expect any changes in its accounting policies or any retrospective adjustments as a result of the adoption of these new and amended standards.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

Benchmark interest rate reform

In 2014, developments in the global markets revealed weaknesses in the LIBOR's sustainability as a reference rate. Since then, regulators around the world have focused on the transition to a new benchmark that would replace the USD LIBOR.

In July 2017, the Financial Conduct Authority announced its intention to phase out LIBOR by the end of 2021. However, on March 5, 2021, the ICE Benchmark Administration ('IBA'), the LIBOR´s administrator, publicly announced that as a result of not having had access to the necessary input data to calculate LIBOR settings on a representative basis, the transition of the LIBOR to a new benchmark has been postponed to the first semester of 2023.

Therefore, there continues to be uncertainty around the timing and precise nature of these changes.

The Company continues to discuss with the financial entities which interest rate reference will replace the loans measured by LIBOR, among other changes, but does not expect any significant impacts on its financial statements.

Impact of new or amended standards issued but not yet applied by the Company

New or amended standards that are not yet effective have not been early adopted by the Company. The Company does not believe that these new or amended standards will have a material effect on its financial statements.

Revision of the condensed consolidated interim financial statements

i.	Deferred tax on depreciation of Property, plant and equipment

At the end of 2020, the Company identified a calculation error in its historical tax base for the depreciation of certain property, plant and equipment which impacted the book/tax temporary differences of these assets and the corresponding deferred tax asset/liability balances. The calculation error resulted in an accumulated adjustment to deferred tax expenses of USD 37,875 recorded in the Retained earnings (cumulative deficit) as of January 1, 2020. The adjustment required a reallocation of USD 23,201 between deferred tax assets and liabilities, with a net increase effect of USD 14,674 in tax liabilities as of January 1, 2020. In addition, the correction of this calculation error required an adjustment in the deferred income taxes recognized along 2020. The condensed consolidated interim financial statements for the three-month period ended March 31, 2020 have been adjusted to reflect the correction of the calculation error by revising each of the affected line items in the condensed consolidated interim income statement, condensed consolidated interim statement of comprehensive income and condensed consolidated interim statement of changes in shareholders' equity as of January 1, 2020 and in the first quarter of 2020. For additional information please refer to note 3.1 in NEXA's audited consolidated financial statements for the year ended on December 31, 2020.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

ii.	Dividends paid in 2020

On December 31, 2020, the Company reclassified the dividends of USD 50,000 paid during the first quarter of 2020, from the Share premium account to the Retained earnings (cumulative deficit) account. For comparative purposes, as of March 31, 2020, the Company also made this reclassification.

The following tables summarize the effects on the Company's condensed consolidated interim financial statements of such adjustments.

(a)Condensed consolidated interim income statement

		As previously reported At March 31, 2020			Adjustments (i)			Revised At March 31, 2020
Income tax
Deferred			82,490				(1,769	)			80,721
Net loss for the period			(612,055	)			(1,769	)			(613,824	)
Attributable to NEXA's shareholders			(521,913	)			(1,769	)			(523,682	)
Attributable to non-controlling interests			(90,142	)			-				(90,142	)
Net loss for the period			(612,055	)			(1,769	)			(613,824	)
Weighted average number of outstanding shares - in thousands			132,439				-				132,439
Basic and diluted losses per share - USD			(3.94	)			(0,01	)			(3.95	)

(i) Correspond to the deferred tax adjustments as explained in note 3 (i).

(b)	Condensed consolidated interim statement of comprehensive income

		As previously reported At March 31, 2020			Adjustments (i)			Revised At March 31, 2020
Net loss for the period			(612,055	)			(1,769	)			(613,824	)
Total comprehensive loss for the period			(738,040	)			(1,769	)			(739,809	)
Attributable to NEXA's shareholders			(633,213	)			(1,769	)			(634,982	)
Attributable to non-controlling interests			(104,827	)			-				(104,827	)
Total comprehensive loss for the period			(738,040	)			(1,769	)			(739,809	)

(i) Correspond to the deferred tax adjustments as explained in note 3 (i).

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(c)	Condensed consolidated interim statement of changes in shareholders' equity

		As previously reported									Revised
		Share premium			Retained earnings (cumulative deficit)			Total			Total shareholders' equity			Adjustments (i)			Adjustments (ii)			Share premium			Retained earnings (cumulative deficit)			Total			Total shareholders' equity
At January 1, 2020			1,043,755				(158,980	)			2,147,452				2,520,061				-				(37,875	)			1,043,755				(196,855	)			2,109,577				2,482,186
Net loss for the period			-				(521,913	)			(521,913	)			(612,055	)			-				(1,769	)							(523,682	)			(523,682	)			(613,824	)
Other comprehensive loss for the period			-				-				(111,300	)			(125,985	)			-				-								-				(111,300	)			(125,985	)
Total comprehensive loss for the period			-				(521,913	)			(633,213	)			(738,040	)			-				(1,769	)			-				(523,682	)			(634,982	)			(739,809	)
Dividends distribution to NEXA's shareholders - USD 0.38 per share			(50,000	)			-				(50,000	)			(50,000	)			+/-50,000				-				-				(50,000	)			(50,000	)			(50,000	)
Total distributions to shareholders			(50,000	)			-				(50,000	)			(50,000	)			+/-50,000				-				-				(50,000	)			(50,000	)			(50,000	)
At March 31, 2020			993,755				(680,893	)			1,464,239				1,732,021				+/-50,000				(39,644	)			1,043,755				(770,537	)			1,424,595				1,692,377

(i) Correspond to the dividends adjustments as explained in note 3 (ii).

(ii) Correspond to the deferred tax adjustments as explained in note 3 (i).

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

4 Net revenues

		March 31, 2021			March 31, 2020
Gross revenues			669,040				485,802
Revenues from products (i)			653,435				468,107
Revenues from services			15,605				17,695
Taxes on sales			(64,878	)			(42,856	)
Return of products sales			(1,233	)			(817	)
Net revenues			602,929				442,129

(i) Revenues from products increased in the three-month period ended on March 31, 2021, mainly because of the higher metal prices during the quarter. Also, production in the Peruvian operating units increased during the first quarter of 2021 compared to that of the same period in 2020 as they returned to their normal operation levels after the government removed the restrictive measures imposed during the first and second quarters of 2020 as explained in note 1 (a).

5Expenses by nature

										March 31, 2021			March 31, 2020
		Cost of sales (iii)			Selling, general and administrative			Mineral exploration and project evaluation			Total			Total
Raw materials and consumables used (i)			(245,785	)			-				-				(245,785	)			(201,787	)
Third-party services			(80,659	)			(12,118	)			(7,886	)			(100,663	)			(104,735	)
Depreciation and amortization (ii)			(57,464	)			(1,727	)			(7	)			(59,198	)			(67,593	)
Employee benefit expenses			(35,868	)			(16,041	)			(3,419	)			(55,328	)			(57,988	)
Other expenses			(3,007	)			(6,651	)			(3,002	)			(12,660	)			(16,719	)
			(422,783	)			(36,537	)			(14,314	)			(473,634	)			(448,822	)

(i) Raw materials and consumables increased in the three-month period ended on March 31, 2021, because of the higher smelting production in Peru, as described in note 4, and the higher price of the zinc concentrates used in the Company's smelting segment.

(ii) Depreciation and amortization decreased in the three-month period ended on March 31, 2021, due to the reduction in the carrying amount of long-lived assets as a result of the impairment of non-current assets recorded in 2019 and in 2020.

(iii) In 2021, the Company recognized USD 4,144 in cost of sales related to Atacocha's abnormal production costs due to the illegal disruption caused by protest activities undertaken by communities, which resulted in the temporary suspension of this mine's production during many days in January and in March 2021.

On March 31, 2020, the Company recognized USD 16,982 in cost of sales related to abnormal production costs at its Peruvian operations, given their production decrease related to the COVID-19 outbreak as explained in note 1 (a). Since August 2020, the Company has concluded that there is no longer any need to recognize any abnormal production costs in response to the COVID-19, since the operating units have returned to their normal production.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

6 Other income and expenses, net

		March 31, 2021			March 31, 2020
Remeasurement of environmental obligations (i)			(6,520	)			4,108
Provision of legal claims			(5,257	)			(8,039	)
Contribution to communities			(992	)			(719	)
Derivative financial instruments - note 11 (b)			1,250				(10,799	)
Gain on sale of property, plant and equipment and intangible assets			393				170
Other operating income (expenses), net			2,595				(1,912	)
			(8,531	)			(17,191	)

(i) Environmental obligations increased in the three-month period ended on March 31, 2021 due to the incremental costs to be incurred as part of Três Marias unit remediation plans.

7 Net financial results

		March 31, 2021			March 31, 2020
Financial income
Interest income on financial investments and cash equivalents			1,064				2,554
Interest on tax credits			162				439
Other financial income			695				629
			1,921				3,622
Financial expenses
Interest on loans and financings			(24,780	)			(16,094	)
Premium paid on bonds repurchase - note 17 (b)			-				(14,481	)
Interest on other liabilities			(2,789	)			(1,998	)
Interest on contractual obligations			(1,423	)			(1,521	)
Interest on lease liabilities			(361	)			(625	)
Other financial expenses			(4,862	)			(5,023	)
			(34,215	)			(39,742	)
Other financial items, net (i)
Fair value of loans and financings - note 17 (b)			8,875				(9,543	)
Derivative financial instruments - note 11 (b)			(13,654	)			(960	)
Foreign exchange losses (ii)			(37,106	)			(118,724	)
			(41,885	)			(129,227	)
Net financial results			(74,179	)			(165,347	)

(i) Starting in September 2020, the Company began presenting the income and expenses from derivative financial instruments and from the changes in the fair value of loans and financings by their net results, consistent with how management analyzes these items. Consequently, the Company has adjusted the financial income and the financial expenses subtotals for the period ended on March 31, 2020 in the income statement.

(ii) The amounts in 2021 and 2020 include USD 22,237 and USD 65,572 respectively, of foreign exchange losses related to the outstanding US Dollars ('USD') denominated intercompany debt of Nexa Recursos Minerais S.A. ('NEXA BR') with NEXA.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

8 Current and deferred income tax

(a)	Reconciliation of income tax (expense) benefit

		March 31, 2021			March 31, 2020
Income (loss) before income tax			46,585				(673,825	)
Standard rate			24.94	%			24.94	%
Income tax (expense) benefit at standard rate			(11,618	)			168,051
Difference in tax rate of subsidiaries outside Luxembourg			835				18,944
Special mining levy and special mining tax			(3,534	)			(640	)
Deferred tax on net operating losses			(2,688	)			(28,778	)
Impairment of goodwill			-				(78,197	)
Tax effects of translation of non-monetary assets/liabilities to functional currency			2,465				(1,769	)
Other permanent tax differences			(434	)			(17,610	)
Income tax (expense) benefit			(14,974	)			60,001
Current			(37,563	)			(20,720	)
Deferred			22,589				80,721
Income tax (expense) benefit			(14,974	)			60,001

(b)	Composition of deferred income tax assets and liabilities

		March 31, 2021			December 31, 2020
Tax credits on net operating losses (i)			95,436				108,767
Uncertain income tax treatments			(6,987	)			(6,712	)
Tax credits on temporary differences
Foreign exchange losses			43,100				33,123
Environmental liabilities			17,193				16,611
Asset retirement obligations			19,576				20,507
Tax, civil and labor provisions			7,431				7,162
Other provisions			8,124				9,825
Provision for obsolete and slow-moving inventory			6,993				6,813
Provision for employee benefits			2,879				5,299
Revaluation of derivative financial instruments			5,732				3,056
Other			6,970				6,513
Tax debits on temporary differences
Capitalized interest			(9,382	)			(10,274	)
Revaluation of loans and financings			(1,043	)			(88	)
Depreciation, amortization and asset impairment			(181,464	)			(190,970	)
Other			(4,394	)			(6,444	)
			10,164				3,188
Deferred income tax assets			225,817				221,580
Deferred income tax liabilities			(215,653	)			(218,392	)
			10,164				3,188

(i) Tax credits on net operating losses decreased in the three-month period ended on March 31, 2021, because of the continuous Brazilian Real ('BRL') devaluation against the USD during the year, which affected the Company's tax credits from its Brazilian legal entities.

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(c)	Effects of deferred tax on income statement and other comprehensive income

		March 31, 2021			March 31, 2020
Balance at the beginning of the period			3,188				(48,212	)
Effect on (loss) income for the period			22,589				80,721
Effect on other comprehensive (loss) income - Fair value adjustment			282				(11,274	)
Effect on other comprehensive (loss) income - Cumulative translation adjustment			(15,895	)			759
Balance at the end of the period			10,164				21,994

(d)	Summary of contingent liabilities on income tax

There are uncertainties and legal proceedings for which it is unlikely that an outflow of resources embodying economic benefits will be required. In such cases, a provision is not recognized. As of March 31, 2021, the main legal proceedings are related to the carryforward calculation of net operating losses and to the deductibility of foreign exchange losses and other expenses. The estimated amount of these contingent liabilities is USD 162,892 (December 31, 2020: USD 163,670).

9	Financial instruments

(a)	Breakdown by category

The Company classifies its financial assets and liabilities under the following categories: amortized cost, fair value through other comprehensive income and fair value through profit or loss. The classification by category and the corresponding accounting policies of each financial instrument in these condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended on December 31, 2020.

								Fair value through profit or			Fair value through other comprehensive			March 31, 2021
Assets per balance sheet		Note			Amortized cost			loss			income			Total
Cash and cash equivalents			10				1,006,055				-				-				1,006,055
Financial investments							27,710				-				-				27,710
Derivative financial instruments			11	(a)			-				18,086				-				18,086
Trade accounts receivables			12				66,261				109,343				-				175,604
Investment in equity instruments							-				-				6,290				6,290
Related parties (i)							2				-				-				2
							1,100,028				127,429				6,290				1,233,747
											Fair value through profit or				Fair value through other comprehensive				March 31, 2021
Liabilities per balance sheet			Note				Amortized cost				loss				income				Total
Loans and financings			17	(a)			1,746,335				179,511				-				1,925,846
Lease liabilities							22,923				-				-				22,923
Derivative financial instruments			11	(a)			-				35,794				-				35,794
Trade payables							347,379				-				-				347,379
Confirming payables							158,853				-				-				158,853
Use of public assets (ii)							18,232				-				-				18,232
Related parties (ii)							391				-				-				391
							2,294,113				215,305				-				2,509,418

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

											December 31, 2020
Assets per balance sheet			Note				Amortized cost				Fair value through profit or loss				Total
Cash and cash equivalents			10				1,086,163				-				1,086,163
Financial investments							35,044				-				35,044
Derivative financial instruments			11	(a)			-				31,980				31,980
Trade accounts receivables			12				64,262				164,770				229,032
Related parties (i)							2				-				2
							1,185,471				196,750				1,382,221
															December 31, 2020
Liabilities per balance sheet			Note				Amortized cost				Fair value through profit or loss				Total
Loans and financings			17	(a)			1,822,756				201,558				2,024,314
Lease liabilities							25,689				-				25,689
Derivative financial instruments			11	(a)			-				26,874				26,874
Trade payables							370,122				-				370,122
Confirming payables							145,295				-				145,295
Use of public assets (ii)							19,215				-				19,215
Related parties (ii)							561				-				561
							2,383,638				228,432				2,612,070

(i) Classified as Other assets in the condensed consolidated interim balance sheet.

(ii) Classified as Other liabilities in the condensed consolidated interim balance sheet.

(b)Fair value by hierarchy

											March 31, 2021
			Note				Level 1				Level 2 (ii)				Total
Assets
Derivative financial instruments			11	(a)			-				18,086				18,086
Trade accounts receivables							-				109,343				109,343
Investment in equity instruments (iii)							6,290				-				6,290
							6,290				127,429				133,719
Liabilities
Derivative financial instruments			11	(a)			-				35,794				35,794
Loans and financings designated at fair value (i)							-				179,511				179,511
							-				215,305				215,305

															December 31, 2020
							Level 1				Level 2 (ii)				Total
Assets
Derivative financial instruments			11	(a)			-				31,980				31,980
Trade accounts receivables							-				164,770				164,770
							-				196,750				196,750
Liabilities
Derivative financial instruments			11	(a)			-				26,874				26,874
Loans and financings designated at fair value (i)							-				201,558				201,558
							-				228,432				228,432

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(i) Loans and financings are measured at amortized cost, except for certain contracts for which the Company has elected the fair value option. The carrying amount of other financial instruments measured at amortized cost do not differ significantly from their fair value.

(ii) The methodology to determine the Level 2 fair value amounts is the same as the one disclosed in the Company's audited consolidated financial statements for the year ended on December 31, 2020.

(iii) The Level 1 fair value amount of the investment in equity instruments is determined using the share's quotation as of the last day of the reporting period.

10Cash and cash equivalents

(a)Composition

		March 31, 2021			December 31, 2020
Cash and banks			182,471				113,017
Term deposits			823,584				973,146
			1,006,055				1,086,163

Cash and cash equivalents decreased in the three-month period ended on March 31, 2021 mainly due to the prepayment of the export credit note explained in note 1(d).

(b) Changes in operating assets and liabilities

		March 31, 2021			March 31, 2020
Decrease (increase) in assets
Trade accounts receivables (i)			48,237				50,320
Inventory (ii)			(57,021	)			55,142
Derivative financial instruments			9,162				2,869
Other assets (iii)			20,161				(25,283	)
Increase (decrease) in liabilities
Trade payables			(5,844	)			(127,914	)
Confirming payables (iv)			13,558				(16,201	)
Other liabilities (v)			(15,111	)			(326	)
			13,142				(61,393	)

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements

Unaudited

At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(i) Changes in trade accounts receivables in the three-month period ended on March 31, 2021 reflect a decrease in the Company's sales volumes in comparison to those of the fourth quarter of 2020 while maintaining the same level of receipts in the first quarter of 2021.

(ii) Changes in inventories in the three-month period ended on March 31, 2021 reflect the increase in the balance of finished goods in comparison to that of the end of the fourth quarter of 2020, given that the volumes sold during the first quarter of 2021 were lower than the volumes produced, mostly in the smelting segment.

(iii) Changes in other assets in the three-month period ended on March 31, 2021 reflect the decrease in recoverable taxes given the tax credit compensation for the income tax liabilities in NEXA's Peruvian companies.

(iv) Changes in confirming payables in the three-month period ended on March 31, 2021 are due to the higher value of the factoring transactions made by Nexa Resources Cajamarquilla S.A. ('NEXA CJM') given the increased price of zinc concentrates during the quarter.

(v) Changes in other liabilities in the three-month period ended on March 31, 2021 are due to the decrease in income tax liabilities and in salaries and payroll charges.

(c) Non-cash investing and financing transactions

During the three month-period ended on March 31, 2021, the Company had reductions in Property, plant and equipment mainly due to the remeasurement of the discount rate of asset retirement obligations in the amount of USD 8,303 (March 31, 2020: additions of USD 9,127); additions in Right-of-use assets in the amount of USD 967 (March 31, 2020: USD 404); and, a write-off of Property, plant and equipment in the amount of US$ 2,903.

Nexa Resources S.A. Notes to the condensed consolidated interim financial statements Unaudited At and for the three-month period ended on March 31 All amounts in thousands of US dollars, unless otherwise stated

11	Derivative financial instruments

(a)	Fair value by strategy

								March 31, 2021						December 31, 2020
Strategy		Per Unit			Notional			Fair value			Notional			Fair value
Mismatches of quotational periods
Zinc forward			ton				180,635				423				204,394				2,398
											423								2,398
Sales of zinc at a fixed price
Zinc forward			ton				14,375				522				15,695				1,815
											522								1,815
Interest rate risk
IPCA vs. CDI			BRL				226,880				809				226,880				1,310
											809								1,310
Foreign exchange risk
BRL vs. USD (i)			BRL				477,000				(19,462	)			477,000				(417	)
											(19,462	)							(417	)
											(17,708	)							5,106
Current assets											10,068								16,329
Non-current assets											8,018								15,651
Current liabilities											(3,449	)							(5,390	)
Non-current liabilities											(32,345	)							(21,484	)

(i) Related to a derivative financial instrument entered into at the same time of a debt contract in order to manage some of the risks of such debt contract. Refer to note 17 (b) for additional information.

(b)	Changes in fair value

Strategy		Inventory			Cost of sales			Net revenues			Other income and expenses, net			Net financial results			Other comprehensive income			Realized gain
Mismatches of quotational periods			(218	)			300				(1,158	)			1,459				-				36				2,394
Sales of zinc at a fixed price			-				-				-				(209	)			-				-				1,084
Interest rate risk - IPCA vs. CDI			-				-				-				-				260				-				761
Foreign exchange risk - BRL vs USD (i)			-				-				-				-				(13,914	)			-				5,131
		(218	)			300				(1,158	)			1,250				(13,654	)			36				9,370

(i) Related to a derivative financial instrument entered into at the same time of a debt contract in order to manage some of the risks of such debt contract. Refer to note 17 (b) for additional information.

Nexa Resources S.A. Notes to the condensed consolidated interim financial statements Unaudited At and for the three-month period ended on March 31 All amounts in thousands of US dollars, unless otherwise stated

12	Trade accounts receivable

(a)	Composition

		March 31, 2021			December 31, 2020
Trade accounts receivables			178,070				229,800
Related parties			1,380				2,411
Impairment of trade accounts receivables			(3,846	)			(3,179	)
			175,604				229,032

(b)	Changes in impairment of trade accounts receivables

		March 31, 2021			December 31, 2020
Balance at the beginning of the period			(3,179	)			(2,337	)
Additions			(1,307	)			(2,643	)
Reversals			502				1,288
Foreign exchange gains			138				513
Balance at the end of the period			(3,846	)			(3,179	)

(c)	Analysis by currency

		March 31, 2021			December 31, 2020
USD			136,778				186,420
BRL			37,805				41,601
Other			1,021				1,011
			175,604				229,032

(d)	Aging of trade accounts receivables

		March 31, 2021			December 31, 2020
Current			172,613				222,670
Up to 3 months past due			2,959				6,728
From 3 to 6 months past due			567				102
Over 6 months past due			3,311				2,711
			179,450				232,211
Impairment			(3,846	)			(3,179	)
			175,604				229,032

Nexa Resources S.A. Notes to the condensed consolidated interim financial statements Unaudited At and for the three-month period ended on March 31 All amounts in thousands of US dollars, unless otherwise stated

13

Inventory

(a)	Composition

		March 31, 2021			December 31, 2020
Finished products (i)			131,695				94,033
Semi-finished products			55,735				56,335
Raw materials (ii)			77,723				66,278
Auxiliary materials and consumables			71,627				68,950
Inventory provisions			(26,662	)			(29,074	)
			310,118				256,522

(i) Finished products increased in the three-month period ended on March 31, 2021, since the volumes sold during the quarter were lower than the volumes produced, mostly in the smelting segment.

(ii) Raw materials increased in the three-month period ended on March 31, 2021, due to the purchases of raw materials in the smelting segment, with higher values and volumes, given the increased zinc price during the quarter and the higher smelting production in Peru as explained in note 4.

14	Other assets

		March 31, 2021			December 31, 2020
Other recoverable taxes			105,820				127,815
Advances to third parties			12,776				15,006
Prepaid expenses			6,848				10,522
Judicial deposits			5,165				5,566
Other assets			29,302				25,363
			159,911				184,272
Current assets			81,676				91,141
Non-current assets			78,235				93,131

Nexa Resources S.A.
Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31
All amounts in thousands of US dollars, unless otherwise stated

15	Property, plant and equipment

(a)	Changes in the three-month period ended on March 31

		2021			2020
		Dam and			Machinery, equipment,			Assets and projects			Asset retirement			Mining projects
		buildings			and facilities			under construction			obligations			(ii)			Other			Total			Total
Balance at the beginning of the period
Cost			1,022,432				2,360,426				596,675				211,650				292,322				36,816				4,520,321				4,527,613
Accumulated depreciation and impairment			(567,829	)			(1,734,232	)			(69,143	)			(124,838	)			(108,698	)			(17,285	)			(2,622,025	)			(2,404,923	)
Net balance at the beginning of the period			454,603				626,194				527,532				86,812				183,624				19,531				1,898,296				2,122,690
Additions (i)			5				45				83,838				-				-				67				83,955				80,389
Disposals and write-offs			-				(2,584	)			(24	)			-				-				(681	)			(3,289	)			(4	)
Depreciation			(12,610	)			(26,298	)			-				(1,573	)			(154	)			(307	)			(40,942	)			(45,949	)
Impairment of non-current assets - note 19			-				-				-				-				-				-				-				(106,826	)
Foreign exchange effects			(20,576	)			(28,854	)			(40,008	)			(2,830	)			(1,314	)			(898	)			(94,480	)			(250,849	)
Transfers - note 16 (a)			11,890				21,022				(38,036	)			-				4,842				-				(282	)			(2	)
Remeasurement of asset retirement obligations			-				-				-				(8,303	)			-				-				(8,303	)			9,127
Balance at the end of the period			433,312				589,525				533,302				74,106				186,998				17,712				1,834,955				1,808,576
Cost			1,001,106				2,331,154				601,496				201,157				295,851				33,852				4,464,616				4,260,037
Accumulated depreciation and impairment			(567,794	)			(1,741,629	)			(68,194	)			(127,051	)			(108,853	)			(16,140	)			(2,629,661	)			(2,451,461	)
Balance at the end of the period			433,312				589,525				533,302				74,106				186,998				17,712				1,834,955				1,808,576
Average annual depreciation rates %			4				7				-				5				UoP				-

(i) Additions include capitalized borrowing costs in the amount of USD 3,703 for the three-month period ended on March 31, 2021 (March 31, 2020: USD 2,753).

(ii) Only the amounts related to the operating unit Atacocha are being depreciated under the units of production ('UoP') method.

Nexa Resources S.A.
Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31
All amounts in thousands of US dollars, unless otherwise stated

(b)	Capital Commitments - Aripuanã project

As of March 31, 2021, the Company had contracted USD 133,981 (December 31, 2020: USD 156,893) of capital expenditures related to the Aripuanã project for the purchase of property, plant and equipment that have not been incurred yet. This decrease of the capital commitments is mainly related to the continuous BRL devaluation against the USD during the year, combined with the fulfillment of third party commitments through the delivery of services or products.

16	Intangible assets

(a)	Changes in the three-month period ended on March 31

		2021			2020
		Goodwill			Rights to use natural resources			Other			Total			Total
Balance at the beginning of the period
Cost			673,776				1,665,149				53,463				2,392,388				2,403,009
Accumulated amortization and impairment			(267,342	)			(1,016,279	)			(32,362	)			(1,315,983	)			(864,483	)
Net balance at the beginning of the period			406,434				648,870				21,101				1,076,405				1,538,526
Amortization			-				(14,496	)			(943	)			(15,439	)			(17,800	)
Impairment of non-current assets - note 19			-				-				-				-				(377,768	)
Transfers - note 15 (a)			-				-				282				282				2
Foreign exchange effects			(263	)			(818	)			(1,568	)			(2,649	)			(7,214	)
Balance at the end of the period			406,171				633,556				18,872				1,058,599				1,135,746
Cost			673,513				1,663,982				49,712				2,387,207				2,117,643
Accumulated amortization and impairment			(267,342	)			(1,030,426	)			(30,840	)			(1,328,608	)			(981,897	)
Balance at the end of the period			406,171				633,556				18,872				1,058,599				1,135,746
Average annual amortization rates %			-				UoP				-

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

17	Loans and financings

(a)	Composition

												March 31, 2021			December 31, 2020
Type		Average interest rate		Current			Non-current			Total			Total
Eurobonds - USD		Fixed + 5.73 %			22,890				1,316,652				1,339,542				1,338,972
Export credit notes		LIBOR + 1.54 % 134.20 % CDI 115.55 % CDI			43,279				132,338				175,617				234,221
Term loans		LIBOR + 1.27 % Fixed + 8.49 %			41,296				150,352				191,648				213,735
BNDES		TJLP + 2.82 % SELIC + 3.10 % TLP - IPCA + 5.43 %			11,142				151,944				163,086				179,828
Debentures		107.5 % CDI			4,720				4,711				9,431				10,388
Other					9,996				36,526				46,522				47,170
					133,323				1,792,523				1,925,846				2,024,314
Current portion of long-term loans and financings (principal)					105,016
Interest on loans and financings					28,307

(b)	Changes in the three-month period ended on March 31

		2021			2020
Balance at the beginning of the period			2,024,314				1,508,557
New loans and financings			-				345,633
Debit issue costs			-				(1,426	)
Payments of loans and financings			(47,204	)			(1,094	)
Bonds repurchase			-				(214,530	)
Foreign exchange effects			(36,474	)			(58,508	)
Changes in the Company´s credit risk of the financial liability (i)			1,332				(32,439	)
Fair value of loans and financings (ii) - note 7			(8,875	)			9,543
Interest accrual			28,246				49,342
Premium paid on bonds repurchase			-				(14,481	)
Interest paid on loans and financings			(35,493	)			(10,247	)
Balance at the end of the period			1,925,846				1,580,350

(i) Related to the changes in the fair value of two debt contracts for which the Company elected to apply the fair value option for measurement. During the first quarter of 2020, the Company's credit risk increased impacted by the effects of COVID-19 on the global economy, which reduced the fair value of these debts. During the first quarter of 2021, the Company's credit risk decreased due to the normalization of its operations, with a consequent change in the fair value of these debts.

(ii) One of debts mentioned above has a derivative financial instrument entered into at the same time of such debt contract in order to manage some of its risks. As of March 31, 2021, the fair value of the related derivative resulted in a loss in the total amount of USD 13,914. Therefore, in 2021, the net result between the debt contract and the relevant derivative financial instrument was a loss of USD 5,039 (excluding the effect of changes in the Company´s credit risk of the financial liability which was a loss of USD 1,332, and is included in the statement of comprehensive income).

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

(c)	Maturity profile

																										March 31, 2021
		2021			2022			2023			2024			2025			As from 2026			Total
Eurobonds - USD			23,417				-				124,244				-				-				1,191,881				1,339,542
Export credit notes			305				42,928				-				88,075				44,309				-				175,617
Term loans			40,512				40,772				20,515				-				89,849				-				191,648
BNDES			7,722				13,584				17,521				18,026				17,160				89,073				163,086
Debentures			4,722				4,709				-				-				-				-				9,431
Other			9,567				9,391				8,226				7,737				7,736				3,865				46,522
			86,245				111,384				170,506				113,838				159,054				1,284,819				1,925,846

(d)	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 March 31, 2021.

As of March 31, 2021, the Company was in compliance with all its financial covenants.

18	Asset retirement and environmental obligations

(a)	Changes in the three-month period ended on March 31

		2021			2020
		Asset retirement obligations			Environmental obligations			Total			Total
Balance at the beginning of the period			227,189				48,857				276,046				293,827
Payments			(109	)			(741	)			(850	)			(1,653	)
Foreign exchange effects			(6,033	)			(4,543	)			(10,576	)			(37,092	)
Interest accrual			1,518				474				1,992				3,380
Remeasurement discount rate and additions (i)			(9,256	)			6,520				(2,736	)			7,386
Balance at the end of the period			213,309				50,567				263,876				265,848
Current liabilities			28,456				10,612				39,068				16,269
Non-current liabilities			184,853				39,955				224,808				249,579

(i) As of March 31, 2021, the credit risk-adjusted rate used for Peru was between 2.21% and 5.23% (December 31, 2020: 1.70% and 4.0%) and for Brazil was between 1.10% and 6.70% (December 31, 2020: 0.07% and 6.75%). As of March 31, 2020, the credit risk-adjusted rate used for Peru was between 0.1% to 6.2% (December 31, 2019: 5.2% to 7.8%) and for Brazil was between 4.5% to 9.0% (December 31, 2019: 3.5% to 5.3%).

Nexa Resources S.A.

Notes to the condensed consolidated interim financial statements
Unaudited
At and for the three-month period ended on March 31

All amounts in thousands of US dollars, unless otherwise stated

19	Impairment of non-current assets

The Company assesses at each reporting date, whether there are indicators that the carrying amount of an asset or CGU may not be recovered. If any indicator exists, the Company estimates the asset's or CGU´s recoverable amount. As of March 31, 2021, the Company did not identify the need to record an impairment charge. For the three-month period ended on March 31, 2020, the Company recognized an impairment charge of USD 484,594.

20	Events after the reporting period

(a) Investment in equity instruments - Tinka shares acquisition

On April 16, 2021, the Company acquired 654,758 additional common shares of Tinka from an arm's length shareholder in a private transaction at a market price of C$0.26 per share for total consideration of approximately CAD 170 (approximately USD 136). After this new acquisition, the Company holds almost 9.0% of Tinka's issued and outstanding common shares.

(b) NEXA's credit ratings update

On April 20, 2021, Moody's affirmed the 'Ba2' rating on NEXA and changed the outlook from 'negative' to 'stable'. The change reflects (i) the normalization of production levels after the disruptions caused by the lockdowns in Peru in 2020; (ii) the efficiencies and costs savings achieved by the Nexa Way program; and (iii) the Company's adequate liquidity.

*.*.*