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Nexa starts zinc operation in Mato Grosso

Project received $625m investment, can produce 120,000 tonnes per year

07/08/2022

Nexa, a mining company of zinc and other metals controlled by Votorantim, started this week the operations of a new mine, Aripuanã, in the namesake city, in Mato Grosso. This is one of the largest zinc projects in installation in the world and received investments of $625 million.

In a statement, the company said full production is planned for the second quarter of 2023. Nominal capacity is 120,000 tonnes of zinc equivalent per year, from the processing of 2.2 million tonnes of raw ore.

The new mine is expected to reach commercial production by the fourth quarter of 2022. It is expected to produce between 14,000 and 23,000 tonnes of zinc, 1,600 to 2,300 tonnes of copper, 5,000 to 7,700 tonnes of lead, and 300 to 500 ounces of silver this year. The volumes are subject to the inherent risks of a mine start-up.

The Aripuanã project consists of three main mineralized zones in the region, with an estimated average annual production of 70,000 tonnes of zinc, 24,000 tonnes of lead, 4,000 tonnes of copper, 1,800 ounces of silver and 14,500 ounces of gold. The lifespan of the mine is expected to be 11 years, considering currently estimated mineral reserves.

“Aripuanã is Nexa’s largest investment project in Brazil, which contributes to the social and economic development of the region,” Nexa’s CEO Ignacio Rosado said in the note. “It is also one of the few zinc projects in the world and we are confident that it will be a low-cost mine with a long operating life.”

According to the executive, this is the third major mine in Nexa’s asset portfolio, which strengthens its unique position to meet the growing demand for zinc worldwide. Mr. Rosado took over as CEO of Nexa on January 1st, 2022.

The venture – with underground extraction – is one of the most sustainable mineral projects in the country, says Nexa. According to the company, it has almost 100% water recirculation and the use of dry stacking and cemented paste filling for tailings.

Nexa, which was previously Votorantim Mineração and currently has more than 60% of its capital in the hands of group, has been operating for more than 60 years in the mining and metallurgy segments. The company has operations in Brazil and Peru, headquarters in São Paulo and an office in Luxembourg. Since 2017, its shares have been traded on the New York Stock Exchange. Nexa reported net revenues of $2.6 billion in 2021.

*By Ivo Ribeiro — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Votorantim-CPPIB deal values Cesp at R$9.1bn

Votorantim e canadense CPPIB miram energia solar e podem investir em transmissão - Época Negócios | Empresa

The minority shareholders of Cesp, a São Paulo-based power generating company, managed to improve the conditions of the deal that will merge assets of Votorantim and the Canadian pension fund CPPIB.

Led by Felipe Dutra, from the activist management firm Squadra, the independent committee set by Cesp to negotiate the deal recommended to the board of directors that the power generation utility be valued at R$9.1 billion in the exchange ratio, the equivalent of R$27.93 per unit.

The committee’s recommendation was accepted by Cesp’s board, which approved it on Friday and has just released a notice of material fact about the transaction. With the change, Cesp’s minority shareholders will hold 30.63% of the company resulting from the union of assets. In the original proposal, they would keep 29.9%.

The new evaluation of Cesp implies a 5.9% improvement in comparison to the suggestion made at the end of October by the controlling shareholders. At the time, the power utility was evaluated at R$26.76, with an equity value of R$8.6 billion.=

“According to the math we did last week, considering the internal rate of return to 8%, GSF [Generation Shift Factor], long-term price and reference date [end of 2021], Cesp would be valued at just R$28, which suggests a fair exchange ratio,” said Antonio Junqueira, with Citi, in a preliminary comment sent to asset managers. The analyst also praised the independent committee’s work. “Very good work by the committee. They respected the minority shareholders and really aligned all the variables.”

After the approval of the exchange ratio, Cesp must now call a general meeting of shareholders to consider the matter. As Votorantim and the Canadian pension fund will be able to vote, the deal is virtually approved. The merger is expected to be completed by February.

The creation of the new company, a renewable power giant that will be listed on the exchange B3, is advanced. The first stage has already been concluded, with the union of the electricity assets of VTRM (a joint venture with the Canadians that had control of Cesp and wind power assets) and Votorantim Energia.

In the first stage of the deal, the Canadian pension fund injected R$1.5 billion into VTRM. Votorantim offered the assets of Votorantim Energia, which were valued at R$2.8 billion. Now, the Cesp-VTRM, which will create the new company with a name still undisclosed, remains to be done.

The independent committee also increased the valuation of the assets of Votorantim Energia, to R$2.8 billion from R$ 2.5 billion. With the changes, the power company is born valued at almost R$17.9 billion. The amount considers Cesp’s equity (R$9.1 billion), Votorantim Energia’s assets (R$2.8 billion), those of VTRM (R$4.5 billion) and the Canadian fund’s injection (R$1.5 billion).

Votorantim will hold 37.74% of the new business, while CPPIB will keep 31.94%. The remainder will remain with Cesp’s current minority shareholders, which includes asset management firms such as Squadra (owner of 19.4% of the preferred shares and 12.3% of the total capital) and Truxt.

Source: Valor international

https://valorinternational.globo.com/

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