XML 41 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Basis of preparation of the consolidated financial statements
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
Basis of preparation of the consolidated financial statements

 

3Basis of preparation of the consolidated financial statements

These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS® Accounting Standards). 

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, 2024, were approved for issue in accordance with a resolution of the Board of Directors on February 20, 2025.

3.1Revision of the previously issued consolidated financial statements

During the third quarter of 2024, the Company identified an error in the previously issued consolidated financial statements as of and for the years ended December 31, 2023, and 2022 related to the recognition of contracts containing lease arrangements. The error resulted in the non-recognition of right-of-use assets and lease liabilities, as well as the misstatement of costs and expenses that should have impacted the Company’s results through the amortization of right-of-use assets and interest expense on the lease liabilities, instead of being recorded as costs and operational expenses related to third-party services.

The Company’s management performed a quantitative and qualitative analysis and concluded that the error was not material to the previously issued financial statements as of and for the years ended December 31, 2023, and 2022 that would require restatement of the previously issued financial statements. Despite the fact it was immaterial, the Company revised the comparative information for the years ended December 31, 2023, and 2022 to reflect the adjustments. The revisions reflect the recognition of right-of-use assets of USD 63,590 and lease liabilities of USD 68,187 in the Company’s consolidated balance sheet as of December 31, 2023, and the related amounts affecting the Company’s other financial statements for the years ended December 31, 2023, and 2022 are shown in the tables below. The effect of the error in periods prior to January 1, 2022, was recorded in retained earnings (or cumulative deficit) in the statement of changes in shareholders’ equity as of January 1, 2022.

 

3.1.1Consolidated financial impacts

 

The following tables present the adjustments and the revised figures to the previously issued consolidated financial statements.

 

(a)Consolidated income statement
               
  (As previously reported)   Adjustments   (Revised)
  2023 2022   2023 2022   2023 2022
Cost of sales  (2,276,757) (2,395,180)     2,400   1,244    (2,274,357)  (2,393,936)
Gross profit   296,476   638,810     2,400   1,244     298,876   640,054
                 
Operating expenses                
Selling, general and administrative   (126,948)   (145,543)     349   373     (126,599)   (145,170)
Mineral exploration and project evaluation   (99,666)   (98,862)     54   61     (99,612)   (98,801)
Total operating expenses    (451,841)   (279,591)     403   434     (451,438)   (279,157)
Operating (loss) income   (155,365)   359,219     2,803   1,678     (152,562)   360,897
                 
Net financial results                
Financial income   25,503   25,018     290 -      25,793   25,018
Financial expenses   (204,184)   (168,694)     (5,707)  (1,084)     (209,891)   (169,778)
Total net financial results    (161,641)   (133,727)     (5,417)  (1,084)     (167,058)   (134,811)
                 
Loss before income tax   (293,470)   227,377     (2,614)   594     (296,084)   227,971
                 
Income tax benefit (expense)   4,274   (150,983)     -   -     4,274   (150,983)
                 
Net (loss) income for the year   (289,196)   76,394     (2,614)   594     (291,810)   76,988
Attributable to NEXA's shareholders   (289,354)   49,101     (2,614)   594     (291,968)   49,695
Attributable to non-controlling interests   158   27,293     -   -     158   27,293
Net (loss) income for the year   (289,196)   76,394     (2,614)   594     (291,810)   76,988
Weighted average number of outstanding shares – in thousands   132,439   132,439     -   -     132,439   132,439
Basic and diluted loss per share – USD   (2.18)   0.37     (0.02) 0.01     (2.20)   0.38

 

(b)Consolidated balance sheet
         
  (As previously reported)   Adjustments   (Revised)
  2023       2023
 Non-current assets          
Right-of-use assets                11,228                  63,590                  74,818
Total non current assets          3,780,681                 63,590            3,844,271
Total assets   4,840,507     63,590     4,904,097
           
Liabilities and shareholders’ equity        
Current liabilities          
Lease liabilities                  3,766                  17,912                  21,678
Total current liabilities           1,074,882                 17,912            1,092,794
           
Non-current liabilities          
Lease liabilities                  5,452                  50,275                  55,727
Total non current liabilities           2,308,991                 50,275            2,359,266
           
 Total liabilities   3,383,873     68,187     3,452,060
            
Shareholders’ equity          
Attributable to NEXA’s shareholders            1,201,921     (4,597)              1,197,324
   Attributable to non-controlling interests                 254,713                         -                    254,713
Total shareholders equity           1,456,634     (4,597)            1,452,037
Total liabilities and shareholders’ equity     4,840,507     63,590     4,904,097

 

 

(c)Consolidated cash flow
               
  (As previously reported)   Adjustments   (Revised)
  2023 2022   2023 2022   2023 2022
 Loss before income tax   (293,470)   227,377     (2,614)   594     (296,084)   227,971
 Depreciation and amortization   298,393   290,937     12,082   1,203     310,475   292,140
 Interest and foreign exchange effects   131,988   126,545     5,417   1,085     137,405   127,630
 Cash provided by operating activities   416,608   498,883     14,885   2,882     431,493   501,765
 Interest paid on lease liabilities   (553)   (994)     (5,533)   (549)     (6,086)   (1,543)
 Net cash provided by operating activities   246,846   266,630     9,352   2,333     256,198   268,963
 Payments of lease liabilities   (5,818)   (17,091)     (9,352)   (2,333)     (15,170)   (19,424)
 Net cash used in financing activities   (25,284)   (149,234)     (9,352)  (2,333)     (34,636)   (151,567)

Increase (decrease) in cash and cash equivalents

   (40,567)   (245,991)     -   -     (40,567)   (245,991)

Cash and cash equivalents at the beginning of the year

   497,826   743,817     -   -     497,826   743,817

Cash and cash equivalents at the end of the year

   457,259   497,826     -   -     457,259   497,826

Non-cash investing and financing transactions

               
 Additions to right-of-use assets     (10,304)   (2,018)    (58,124)   (432)     (68,428)   (2,450)

 

(d)Consolidated Earnings per share
               
  (As previously reported)   Adjustments   (Revised)
  2023 2022   2023 2022   2023 2022

Net (loss) income for the year attributable to NEXA's shareholders

   (289,354)   49,101     (2,614)   594     (291,968)   49,695
Weighted average number of outstanding shares – in thousands   132,439   132,439     -   -     132,439   132,439
 Earnings (losses) per share - USD   (2.18)   0.37     (0.02)   0.01     (2.20)   0.38

 

(e)Consolidated statement of comprehensive income

 

                 
  (As previously reported)   Adjustments   (Revised)
  2023 2022   2023 2022   2023 2022
Net (loss) income for the year   (289,196)   76,394     (2,614)   594     (291,810)   76,988
                 
Translation adjustment of foreign subsidiaries   81,315   65,243     98   (783)     81,413 64,460
Total Other comprehensive income (loss), net of income tax - items that can be reclassified to the income statement   80,778   64,912     98 (783)     80,876 64,129
                 
Other comprehensive income (loss) for the year, net of income tax   78,927   61,647     98 (783)     79,025 60,864
                 
Other comprehensive (loss) income for the year, net of income tax   (210,269)   138,041     (2,516) (189)     (212,785) 137,852
Attributable to NEXA’s shareholders   (215,324)   105,972     (2,516) (189)     (217,840) 105,783
Attributable to non-controlling interests              5,055         32,069                -                -                5,055         32,069
Other comprehensive (loss) income for the year, net of income tax   (210,269)   138,041     (2,516) (189)     (212,785) 137,852

 

(f)  Consolidated statement of changes in shareholders’ equity

 

                           
     (As previously reported)       Adjustments       (Revised)
  Retained earnings (cumulative deficit) Accumulated other comprehensive income (loss) Total NEXA’s shareholders  Total shareholders’ equity   Retained earnings (cumulative deficit) Accumulated other comprehensive loss Total NEXA’s shareholders  Total shareholders’ equity   Retained earnings (cumulative deficit) Accumulated other comprehensive income (loss) Total NEXA’s shareholders  Total shareholders’ equity
At January 1, 2022   (746,308)   (289,030)   1,386,273   1,644,280   1,130 (3,022) (1,892) (1,892)   (745,178) (292,052) 1,384,381 1,642,388
 Net loss for the year     49,101   -   49,101   76,394     594   -   594   594     49,695   -   49,695   76,988
 Other comprehensive income (loss) for the year     -   56,871   56,871   61,647     - (783) (783) (783)     - 56,088 56,088 60,864
Total comprehensive income (loss) for the year     49,101   56,871   105,972   138,041     594 (783) (189) (189)     49,695 56,088 105,783 137,852
At December 31, 2022   (741,081)   (232,159)   1,442,245   1,710,254   1,724 (3,805)   (2,081)   (2,081)   (739,357) (235,964)   1,440,164   1,708,173

 

                             
      (As previously reported)       Adjustments       (Revised)
  Retained earnings (cumulative deficit) Accumulated other comprehensive income (loss) Total NEXA’s shareholders  Total shareholders’ equity   Retained earnings (cumulative deficit) Accumulated other comprehensive income (loss) Total NEXA’s shareholders  Total shareholders’ equity   Retained earnings (cumulative deficit) Accumulated other comprehensive income (loss) Total NEXA’s shareholders  Total shareholders’ equity
At January 1, 2023   (741,081)   (232,159)   1,442,245   1,710,254   1,724 (3,805)   (2,081)   (2,081)     (739,357) (235,964)   1,440,164   1,708,173
 Net loss for the year     (289,354)   -   (289,354)   (289,196)     (2,614)   -   (2,614)   (2,614)     (291,968)   -   (291,968)   (291,810)
 Other comprehensive income (loss) for the year     -   74,030   74,030   78,927     -   98   98   98     -   74,128   74,128   79,025
Total comprehensive (loss) income for the year     (289,354)   74,030   (215,324)   (210,269)     (2,614)   98   (2,516)   (2,516)     (291,968)   74,128   (217,840)   (212,785)
At December 31, 2023   (1,030,435)   (158,129)   1,201,921   1,456,634   (890) (3,707)   (4,597)   (4,597)    (1,031,325) (161,836)   1,197,324   1,452,037

 

(g)  Consolidated information by business segment
                     
                      2023
    (As previously reported)     Adjustments     (Revised)
  Mining Smelting Consolidated   Mining Smelting Consolidated   Mining Smelting Consolidated
Cost of sales   (1,028,281)   (1,726,568)   (2,276,757)     2,103   297   2,400     (1,026,178)   (1,726,271)   (2,274,357)
Gross profit   61,995   220,093   296,476     2,103   297   2,400     64,098   220,390   298,876
Selling, general and administrative   (61,903)   (61,233)   (126,948)     213   136   349     (61,690)   (61,097)   (126,599)
Mineral exploration and project evaluation   (90,297)   (9,369)   (99,666)     59   (5)   54     (90,238)   (9,374)   (99,612)
Operating (loss) income   (267,428)   117,783   (155,365)     2,375   428   2,803     (265,053)   118,211   (152,562)
Depreciation and amortization   219,957   77,585   298,393     9,196   2,886   12,082     229,153   80,471   310,475
Adjusted EBITDA   149,058   246,967   391,156     11,571   3,314   14,885     160,629   250,281   406,041
Depreciation and amortization       (298,393)         (12,082)         (310,475)
Net financial results       (161,641)         (5,417)         (167,058)
Loss before income tax       (293,470)         (2,614)         (296,084)
                          

 

                       
                      2022
    (As previously reported)     Adjustments     (Revised)
  Mining Smelting Consolidated   Mining Smelting Consolidated   Mining Smelting Consolidated
Cost of sales   (905,241)   (2,190,903)   (2,395,180)     871   373   1,244     (904,370)   (2,190,903)   (2,393,936)
Gross profit   342,786   276,064   638,810     871   373   1,244     343,657   276,437   640,054
Selling, general and administrative   (64,444)   (60,435)   (145,543)   225      148   373     (64,219)   (60,287)   (145,170)
Mineral exploration and project evaluation   (88,947)   (9,915)   (98,862)     80  (19)   61     (88,867)   (9,934)   (98,801)
Operating income (loss)   124,332   248,527   359,219     1,176   502   1,678     125,508   249,029   360,897
Depreciation and amortization   204,514   78,727   290,937     2,026   (823)   1,203     206,540   77,904   292,140
Adjusted EBITDA   439,839   326,429   760,324     3,202)   (321)   2,881     443,041   326,108   763,205
Depreciation and amortization       (290,937)         (1,203)         (292,140)
Net financial results       (133,727)         (1,084)         (134,811)
Income before income tax       227,377         594         227,971

 

(h)  Consolidated changes in right-of-use

 

                                 

 

 

     (As previously reported)         Adjustments       (Revised)
        2023         2023       2023
  Buildings Machinery, equipment, and facilities IT
equipment		 Vehicles Total   Buildings Machinery, equipment, and facilities IT
equipment		 Vehicles Total   Buildings Machinery, equipment, and facilities IT
equipment		 Vehicles Total
 Balance at the beginning of the year                                  
Cost 7,300 18,106 282 18,830 44,518   8,482 14,214 756  (12,362) 11,090   15,782 32,320 1,038 6,468 55,608
Accumulated amortization  (4,467)  (15,394)  (84)  (17,678) (37,623)   100  (3,880)  (473) 13,266 9,013    (4,367)  (19,274)  (557)  (4,412)  (28,610)
 Balance at the beginning of the year      2,833         2,712           198 1,152    6,895        8,582       10,334          283             904      20,103   11,415       13,046           481          2,056   26,998
New contracts 375 7,109 117 2,703 10,304   73 49,131 -     8,920 58,124   448 56,240 117 11,623 68,428
Disposals and write-offs -     (874) -    -     (874)   -     (6,500) -    -     (6,500)   -     (7,374) -    -     (7,374)
Amortization  (1,034)  (1,874)  (61)  (1,884)  (4,853)    (190)  (10,021)  (153)  (1,718)  (12,082)    (1,224)  (11,895)  (214)  (3,602)  (16,935)
Remeasurement 197  (275)  (120) -      (198)   795 422 86 -     1,303   992 147  (34) -     1,105
Transfers -   (114) -  -   (114)   -  -  -  -  -    -   (114) -  -   (114)
Foreign exchange effects 17 45  (1) 7 68   710 1,705 18 209 2,642   727 1,750 17 216 2,710
 Balance at the end of the year      2,388        6,729           133          1,978 11,228        9,970       45,071          234           8,315      63,590       12,358       51,800          367        10,293    74,818
Cost 6,278 16,079 317 22,766 45,440   10,049 59,553 747  (4,227) 66,122   16,327 75,632 1,064 18,539 111,562
Accumulated amortization  (3,890)  (9,350)  (184)  (20,788) (34,212)    (79)  (14,482) (513) 12,542  (2,532)    (3,969)  (23,832)  (697)  (8,246)  (36,744)
 Balance at the end of the year 2,388 6,729 133 1,978 11,228   9,970 45,071 234 8,315 63,590   12,358 51,800 367 10,293 74,818

 

 

(i)Consolidated changes in lease labilities
         
  (As previously reported)   Adjustments   (Revised)
  2023       2023
 Balance at the beginning of the year   5,021     22,184     27,205
New contracts   10,304     58,124     68,428
Leasing contract and write-offs   -     (6,790)     (6,790)
Payments of lease liabilities   (5,818)     (9,352)     (15,170)
Interest paid on lease liabilities   (553)     (5,533)     (6,086)
Remeasurement   (198)     1,303     1,105
Accrued interest– note 10   427     5,705     6,132
Foreign exchange effects   35     2,546     2,581
 Balance at the end of the year   9,218     68,187     77,405
           
   Current liabilities   3,766     17,912     21,678
Non-current liabilities   5,452     50,275     55,727