Exhibit 99.1

Notes to the condensed consolidated interim financial statements

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

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

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

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

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

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. 

2          Information 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

(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”.

3          Basis 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

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

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

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

(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

(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

(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).

5          Expenses by nature

(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

(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

(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

(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

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).

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.

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) 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

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.

10       Cash and cash equivalents

(a)      Composition

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

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