Q3 2021 Nexa Resources SA Earnings Call
Good morning, and welcome to the Nextera resources third quarter 2021 conference call.
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The presenters on this call are Mr. Tito Martins CEO Opex of resources, Mr. Rodrigo <unk> CFO of extra resources that must Roberto <unk> head of Investor Relations. Please also note. This event is being recorded.
Now I'd like to turn the conference over to Mr. Tito Martins. Please go ahead.
Thank you good morning, and good afternoon, everyone welcome to Nexus earnings Conference call and thank you for taking the time.
Today, we'll be talking about our results for the third quarter of 2000.
'twenty one.
Please let's move now to slide three where we will begin our presentation.
I will start by briefly make some comments about our results.
In the third quarter of 'twenty, one we have continued to benefit from favorable base metal prices.
Our adjusted EBITDA was $155 million.
102, 1% year over year.
Note that adjusted EBITDA in the quarter was affected by silver streaming and by the recovery of <unk>.
Energy costs with a total negative impact of $9 million.
Excluding these effects adjusted EBITDA would be $164 million.
Glen.
And then maintenance shutdowns affected our operational performance.
Operations are already at normal levels optimization on rates and we expect to deliver our guidance.
In terms of zinc production, we estimate we will be closer to the midpoint of the guidance range, while copper is moving toward the upper end rates.
In addition, we have revised our cash cost guidance, which we will comment in more detail during this presentation.
And the first nine months of the year, we generated approximately.
$517 million adjusted EBITDA strongly recording front related to anti.
A record high for the nine months.
This performance not only reflects favorable market conditions, but also the commitment of our team to operational and financial performance.
Global demand for our products remains strong and is expected to consume spam supported by government stimulus packages and the transition toward a more green economy.
Growing global concern on licensed patient rates logistics bottlenecks energy shortage risks.
This scenario.
We ended the quarter with total cash of around $800 million and language of one two times relatively flat to the previous quarters.
We continue to monitor COVID-19 evolution.
All protocols to mitigate the spread of the virus remaining bleeds in all operations inspirational activities and projects and we believe they have been effective.
Multiple for employees and contractors have already been vaccinated at lease with Windows.
We also continue providing support to our host communities and.
Governments in the regions, where we operate.
We remain fully committed on delivering our first greenfield mining projects I need one.
Moving to the next slide slide four I will discuss in more disease.
On October seven the operating license for the any pent up project was granted.
Structural works continue to advance and overall Visco promise has reached 96, 5% at the end of September.
In June.
89%.
Several systems Fund administration plant reached completion and haven't started commission at the end of the third quarter.
These the EBIT systems allow the cold commissioning of the plant and equipment.
We are on track to conclude mechanical completion in the fourth quarter of two into one as well as most of the cold conditions.
Bob Commission existing May two stock next month, and postproduction exist a made to stock during the first quarter afterwards.
In addition, the qualification process for future mining operators continues to progress.
There are currently 161 students in the fourth training class of which 46% are women.
<unk> will be one of the few widen the award with a strong presence of women units total workforce.
We believe the new mine that we stopped production with at least 35% women units workforce.
We are planning to move it up to 50% along the first two years of production.
With respect to our exploration probe exploratory drilling has been focused on northwest extension at Boston.
New drilling continues to consume a high grade mineralization area supporting our belief that <unk> will be a long life mine.
Moving now to slide five please.
Mining development activities in at X and zinc mines have continued to progress and Richard and accumulate 13 points 1000 meters at the end of September.
Approximately 435000 tons of <unk>.
Or has already been a stockpile, which corresponds to roughly two regular monthly production.
We plan to have three months off was the buyer I had not stopped ASP of the plants.
We have today 443 employees working on the mine land environment safety and health and administrative facilities. This number should continue to infuse as youre preparing ourselves for the startup.
Now I would like to basketball basketball, Ella our head of Investor Relations, who will comment on all financial results <unk>. Please.
Thank you Chico with morning, and Bradesco every line, please let's move to slide seven.
Beginning with the shock on your upper left consolidated net revenue in third quarter 2021 was $655 million, a 22% compared to the same period a year ago.
Mainly driven by higher metal prices and byproduct contribution, which was partially offset by lower sales volume and the simplest thing adjustment.
In the third quarter next I recognize that a reduction of $19 million as a remeasurement adjustment is there screaming brackish given forecasted higher long term prices and the updated mine plan for San Juan you can do it.
Also a big quarter next I recognize the recovery I need your cost of $10 million related to undo cross Bae Baylor energy power plants in the past.
These nonrecurring items had a negative net impact of $9 million in our adjusted EBITDA of $155 million.
Back to third quarter 'twenty Granny adjusted it would be dying, we hit by 2%, mostly driven by the mining segment performance.
Next is like really discussed in further detail our segments performed.
On slides eight and nine I will comment on our mining segment results zinc equivalent production reached 136000 tons down 1% year over year.
While remaining flat compared to the previous quarter.
<unk> production in the quarter decreased by 2% comparable third quarter, 'twenty, Granny and second quarter 2021 mainly driven by lower zinc head grade and planted and unplanned maintenance shutdowns in paid during the period.
S. T. J mentioned earlier, we are already operating at normal levels.
In terms of net revenue, we reached $276 million in third quarter, 'twenty 'twenty, 134% year over year explained by higher average selling prices and lower benchmark treatment charges. We just said the negative impact of distinguished swimming adjustment of $19 million in the quarter.
Adjusted EBITDA for the mining segment was $92 million compared to $67 million a year ago. As you can see on slide nine. This performance was mainly explained by.
The Boston ASP price effect of $46 million due to higher zinc prices lower.
Lower treatment charges will be a positive variation of $25 million and higher byproduct contribution.
Which were partially offset by the.
The increase in operating costs driven by increases in maintenance and mine development cost is in the period higher workers' participation provisions due to better results.
The exploration and project about Lee shouldn't expenses and the negative effect of $17 million with respect of silver streaming and energy cost adjustments.
In the first nine months of the year adjusted EBITDA amounted to $331 million strongly recovering from a year ago Consol.
Consolidated mine cash cost was 23 cents per pound encode for 'twenty, 'twenty, one down 32% compared to last year.
This decrease was primarily driven by higher byproduct credits and lower treatment charges, which were partially offset by lower zinc volumes and higher operating costs.
No that they'll break in costs as incurred recorded Lanny Duane.
Or temporary reduce it as operations and better we're still ramping up after the mandatory shutdown due to COVID-19.
Compared to second quarter, 2021 cash cost increased by nine cents per pound due to lower volumes and increased operating costs.
We have revised our full year cash cost guidance for the mining segment. Our thought we are starting to see additional inflationary pressure in our mining operations cash costs at sampling than I think what you might have been better than expected due to continued higher byproduct metal prices. Consequently.
Cash cost guidance for the steel operations have been reduce it.
Consolidated cash cost guidance is now 23 cents per pound.
Compared to our previous guidance of 33 cents per pound.
Now, let's turn to the smelting segment results.
On slide 11, we will discuss hours now can segment operational results.
In third quarter, because I need to buy in one motto sales amounted to 156000 tons down 2% year over year, and 1% from second quarter 2021.
The decrease in production was partially offset by the increasing resale of Matto from third parties.
Net revenue in the quarter was $523 million totaling $1 $5 billion in the first nine months of 2021 positively impacted by higher early media prices and sales volumes.
Adjusted EBITDA for the smelting segment third quarter 2021 is stood at $65 million compared with eight $6 million a year ago, driven by lower treatment charges and higher operating costs.
As you can see on slide 11. This performance was mainly explained by lower treatment charges with the negative impact of $21 million and higher operating costs, driven by higher consumption of imported material inflation maintenance and energy costs, which were partially offset by.
The Boston that.
Effect of $15 million related to higher Ele me prices absent changes in market prices, resulting quotation period adjustments and the energy cost adjustment of $8 million.
And before proceeding I would like to further discuss the treatment charging back.
As you know forgive my Georgia off our third party contracts, which are renewed during different periods should tell you. We use the three year benchmark to see as a reference.
So for this year the reference price considers the treatment charge off 2021 'twenty 'twenty and 2019 at the beginning of the year, we tend to receive real material difference at oldest D C.
And as demands evolve our reference disclosure to the treatment charge of the current year. Consequently, we are seeing a higher negative you can make them on charging back in the third quarter compared to the previous quarter.
Going back to our results in the first nine months of the year adjusted EBITDA increased by 29%.
Two $241 million.
In terms of cash cost as you can see on the bottom right consolidated as Malcolm cash cost of one dollar and 16 cents per pound in third quarter 2021 increased by 47% year over year, mainly driven by market related factors, such as higher zinc prices and lower frequency chart.
We also updated our full year smelting cash cost guidance to one dollar and 14 cents per pound compared to our previous guidance of 95 cents per pound, primarily driven by higher zinc price.
Operating costs have also been affected by higher energy prices due to the current Brazilian scenario as well as an increase in maintenance costs, which has also been affected by inflation.
I'll now turn over to cultural Rodrigo make our CFO, who will provide more detailed information about our balance sheet make please.
Good morning, Good afternoon, everyone I am now on slide 12.
Demonstrated in the upper left graph, our liquidity remains strong and we continue to report a healthy balance sheet with extended debt profile.
By the end of the first quarter, our current available liquidity was $1 1 billion, which.
Which includes our undrawn revolving credit facility of $300 million.
As of September 30, the average maturity of our total debt was five five years with a 496% average debt cost.
Our leverage measured by net debt to adjusted EBITDA ratio increased to one.
2004 times from 119 times, mainly driven by higher net debt as a consequence of the reduced.
The debt breakdown by category and currency is shown on the right side of this slide.
In light of our strong balance sheet during the quarter, we continued to advance with our liability management program and have prepaid additional existing financial debt, reducing our gross debt by $177 million.
Now moving on to slide 13.
On this slide we present Nexus free cash flow generation.
During the war, our free cash flow generation was negative in $260 million.
Describing each partner and starting from our $155 million EBITDA, we had a $21 million loss and working capital $57 million of sustaining capex and $30 million from interest paid in Texas.
NASA has generated $39 million of cash before expansion projects during the analyzed period.
After that we invested $80 million in non sustaining capex, which includes mainly our rd for non development project with $79 million. We also had a negative net effect of $172 million as we have prepaid and mention that during this quarter.
Finally dividends payment of $9 million, and our energy subsidiary politics, and other nonoperational impacts, including foreign exchange effects of $38 million concluded the free cash flow of negative $260 million.
Our turn to the next slide slide 14.
As previously disclosed our 2021 capex guidance remains unchanged at $510 million.
In the second quarter, we have invested $144 million in capex between $79 million.
Directly to the Sequenom.
In the period of nine months.
2021, we have invested a total amount of $344 million and 52% direct a 2021 and the remaining 48% to other projects, including sustaining in Egypt.
As projects advance we estimate we will have a higher disbursement in the fourth quarter was <unk> 21 compared to the previous quarters due to mine development mine equipment for Chase plant maintenance shutdowns at in today's market.
As Milton among other less material events.
With regard to mineral exploration and project that valuation, we have invested a total of $18 million in the quarter totaling $49 million in the period of nine months of 2021.
Full year, we expect to continue our mineral exploration and project evaluation of investment as we will maintain our efforts to replace an increase mineral reserves and resources.
Our business quote.
On October 21st we published our exploration report for the third quarter of 2021.
We hope it could provide further clarity over our results and exploration programs.
I will now handle the call back to chip.
Just two please. Thank you meant we are now at slide 16 here, we will make some comments about the market fundamentals.
Zinc price maintained its upward trend and increased by 28% when compared to the surgical walks off to empty and 3% when compared to the second quarter of 'twenty one.
Spike price volatility during the quarter, the blended to stimulus batch and infrastructure in United States and the positive signs for the fed to maintain economic funding book.
<unk> sentiment in equity and commodity markets and supported zinc price at high levels.
In the short term, we expect the zinc price remain at the levels. They are today, mostly because the tight balance between supply and demand.
Indonesia long terms zinc fundamentals also remain attractive as you can see on the chart on the upper right. Despite this to meet increasing supply there is an imbalance between supply and demand.
With respect to copper, Brian volunteer to do was driven by some signs of slowdown in the Chinese economy, which was intensified by a potential bolt on the real estate sector as well as concerns about the delta variant of COVID-19.
In the mid to long term the outlook for zinc and copper also remains positive.
And their role in the energy transition.
Moving now to our Lastest lines.
As many of you May know, we will start my transition process during this quarter.
First of all I would like to extend my sincere gratitude to all employees for the constant dedication and professionalism that allow us to innovate our business transform our culture.
G vehicles has been an honor and a pleasure to be part of this outstanding team.
I also want to thank our board for its incentive and support all initiatives and decisions along these years.
I have witnessed the remarkable evolution of the company and the expansion of market separations in mind and as milk.
In 2019 with launching the next wave program implementing a continuous improvement program that have resulted in operational efficiency cost optimization and cultural transformation next.
Next we helped us to navigate to reduce spending scenario.
While generating value for all our shareholders we.
We have globally money towards the promised something absolutely.
It is now part of our DNA.
Our day to day work.
Another milestone for US is that as I mentioned earlier, we are close to the first word glass rebuild project.
Last but not least we continue and be able to create shared value through pursuing ESG initiatives that they are aligned with community needs our business strategies and our customers' priorities. We are also finalizing our corporate ESG goals and metrics, which will be presented.
Sure.
I'm very proud of what our company has become today and I believe we are on the right track to build the mining of the future.
As a privilege to lead this company as CEO for nearly a decade.
Thank you all for your time, and let's move to the Q&A session.
Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If you are using a speaker phone we ask that you. Please pickup your handset before pressing the acuity.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
And today's first question Ghansham Aurist work it out with Scotiabank. Please go ahead.
Oh, Hi, good morning, Firstly, Tito I want to wish you best of luck in your next endeavors.
We'll be missing you here.
But.
I wanted to get a better understanding of what's happening at the arrow part of mine.
It sounds like you've already started commissioning.
Some parts of it and you expect to.
Finished mechanical completion by year end and then I am confused why you do not anticipate first production until the end of the first quarter.
Can you maybe give us some color on on whats happening there.
Thank you very much for your awards.
I hope again, we can be together some time in the future.
About Vodafone on what's happening with being very cautious.
Right, we have already started.
Omission being part of the plan.
Actually the mine is on track on our schedule. So the bulk of the minus two according to.
The original schedule soon.
We would be ready to start production as soon as the plant is.
Competitive condition.
While we've been cautious.
You have to see we are entering right now in the rainy season.
So the main call ahead of when the holidays as well there'll be the holidays at the end of the year based on our experience about what happened last year doing dispute uptime, we decided actually to be more conservative.
Our plans are.
When we state that we should see production start sometime by the second half of the quantum of it this way.
Because we may see good things happen, even before that but we didn't want to exit capacity via debt.
It seems it's going to be fine the rugby now.
I don't know if MANCO Habib has another thing to say about this but clearly it is.
A conservative approach.
Okay.
And Peter just as a follow up your disclosure seems to reference that you plan to revise your Arab potash guidance I guess in January.
Should we be interpreting.
Does that suggest that you plan to power the airport a guidance for 2020, if we have if you have these delays we are mentioning about the ramping up of course, it will be affecting the different.
The reason why we have not to say that we're not seeing anything right now is exactly because of the level of uncertainty we have about how the end of construction and the commissioning will behave in the next two to three months, we are going to be more and more.
The assurance of how the ramp up will therefore, well Liam this dispute upside this last quarter of the year I should say.
Okay and then.
Or you will have that.
<unk> sorry.
Just to say, where we will we will as always provide guidance in probably in the second half of January until then we will have more certainty of what Peter was mentioning we would be able to compound our our three year guidance and our 2022 guidance with with anyone on the retina.
Okay, and just finally do you see any knock on impact here on 23 at Ara partner or should just.
Or is there only.
Oh no.
We have not seen any pattern change, but not at all.
So can I ask have not changed it we should be operating in full capacity sometime alone China true.
The concerns we are having today are much more related with the path to start commissioning at the time, we believe that we should start.
But we are based on those nodes.
The lands we are running right now we are still working with the Pope for that full capacity production sometime in the second half of the year.
Thank you Bing should be should be 100%.
She'd be 100% no problem at all.
Thank you Tito.
Thank you.
Ladies and gentlemen, as a reminder, if you'd like to ask a question. Please press Star then one.
Our next question today comes from Jackie because it allows <unk> with BMO capital. Please go ahead.
Great. Thanks, Thanks, very much for taking my question and all that.
Echo Laura's comments Tito will Miss you and best of luck as.
As you move on.
Maybe if I can ask about the zinc market because it's been.
Its a rollercoaster lately.
I know you are you are in a bit of a different situation for things like power just given your smelters are located in South America does that provide you with an advantage are you able to.
To capitalize on the current.
Shortages and closures that we're seeing in the rest of the world and how do you guys approach that.
Thank you Jeff for your question.
Annual awards.
Interesting you mentioned that.
Our dream would be to be more able to to get the lives.
Sure.
In other places that probably as we come up with those more if we were able to produce more probably would be selling more no doubt about that what we are seeing is clearly.
In Europe. The announcement was made in Europe about the cut in production.
They helped the price that's why we saw the volatility in pricing moving up so aggressively.
But demanding.
In Latin America, and North America is still very strong so so.
If we could be able to produce more for sure we would be selling more we saw some reflects some impact in in premiums.
Most of the gain in both the European and Asia, which in some some ways may stay more or less along the last few months.
Not marginal gain of course.
And talking.
Talking about the problems with the energy we are seeing in Asia, and Europe offshore at least in our case.
There is a slight impact in Brazil because of the hydro.
The hydro <unk>.
Generation.
Was suffering along the last few months, but in general we.
Have not seen the impact we were seen before right the reservoirs in Brazil.
They were lower levels, that's why the energy costs decreased.
But once more it's not compatible with what you're seeing in Europe and Asia not at all it seems that the energy probably the award is affecting everybody.
But fortunately our backs have been.
The.
Lower than the ones, we see in other places.
I would say in general but were still very optimistic about the market.
We're already working with the first quarter of next year and seems that the.
The demand even when we say old China, we may see reduction in the demand in China, probably but given all the other factors but.
Demand for zinc is still very high very strong and it doesn't look like it's going to change.
If I had to bet today was that the 23, it's going to be a similar year to 'twenty two to construct a new jewel will be assumed by <unk> to 'twenty, one in terms of supply and demand.
There is one additional information we have not seen additional concentrate being supply in China, which means that everything we've been saying along the last few years has proven to be right.
Most of the additional concentrate being shipped.
And in the Chinese market is coming from abroad.
So if we have a lack of metal to date, we may see a lack of concentrate sometime in the near future.
And does that help on your smelter side with treatment charges I know, you're obviously some of that is gonna be inter company, but but the stuff that you're buying from third parties are you able to get it better.
Better terms on probably probably if it happens probably going to have a better.
No.
Better conditions to negotiate with our suppliers.
It's interesting one we haven't seen yet.
The impact in the concentrate market given the announcements made in Europe or the production cuts.
Actually some of the.
Commodity analysts were saying that.
Some of them were not believing that the producers.
Ashley would cut production if at all.
All the way, we will seize it when we see more concentrate availability.
But if it happens we will benefit from that for sure in the next DC negotiation.
Okay. Thank you and then if I can just ask a separate question on me.
Management transition.
It's unfortunate I guess, we're not able to speak with the incoming CEO I guess he starts start to roll. It starts working for next and next week.
So this might not be a fair question, but since it's the only time.
Well have an opportunity to talk to talk.
<unk> talked to this before before you leave I guess, it's I'm going to ask anyways.
Do you do you have any sense Tito a win win the new.
Cutting CEO joins if theres going to be mek strategic shift of the company.
Or in terms of the new project.
Pecking order I guess, if there's going to be any change to the way.
He moved things forward them are you able to give any color at all on.
What I can tell you.
What I can tell you is the following.
Our board has been very concerned about this strategy.
We have strategic discussions on a regular basis. After 'twenty. One is the year when we had a chance to promote what we call our internal strategic dialogue every three years, we do meet okay. So every three years, we check this strategy and revised but needed to be revised.
And we validate our not the original plants every three years, we do it and we just finished there.
And the last in the last call we have.
You raised the question is about.
Would look for new geographies.
Sure.
Geopolitical mitigation things like that and I said, yes, we are doing there.
We are not leaving all our projects in sight, but we have the obligation to look at other opportunities Tomorrow. If you ask me today do you think it's going to change dramatically I don't think it will.
<unk> has been very consistent.
May have some setbacks about those projects, but we have been very consistent.
And telling the market that we would pursue the development.
Paul.
Yes.
Uh huh.
The natural coming in doesn't mean that it's this is going to change I don't think so.
Zero.
But it's my point of view, yes.
I'm sure the national when he steps in here, we'll have a chance to speak with you even before the next quarter.
With these results release, so he will be with you sometime in the beginning of the year.
From that because that will be sometime in the beginning of the year. Jacky you can you can you can revert to meet on that promise.
Okay. Thank you very much I.
I think that's all my questions, but thanks very much congrats on the quarter. Thank you. Thank you.
Thank you and our next question today comes from Alex Hacking with Citi. Please go ahead.
Yes, good morning, and let me be the third two I have my.
Thanks Cheeto in Wuxi.
Best of luck in your new endeavors.
Mike If Youre welcome Mike My question has just come back to our point to.
Any update on.
How you're thinking about the operating cost there.
You know since the technical report obviously.
Cost of some things consumables have gone up but there's also been movements in exchange rates. So.
Any update on the on the cost guidance will be helpful. Thank you.
Hi, Alex it's whether they go here we.
We haven't.
This type of information so far in the day and that's part of the.
Yeah.
Let's see.
What we included in the earnings release and that we will revise guidance Theres also.
Cash costs.
Changes as you mentioned, but in any case that appointment is really well placed within the cash cost curve and they will remain being sold but some.
Impacts here and there, but I wouldn't expect thinking about it I wouldn't expect a major shifts on them.
You said consumables are more expensive effects has gone a bit wider than anticipated, which offsets part of this impact. So although you will see a new guidance probably for the year of 2022, especially considering this.
This slight potential delay that Peter described.
We'd be thinking about having it in the same in the same range that you work on syndrome.
Okay. Thank you very much and then just one follow up question.
It has the has the new Peruvian government provided any sort of framework yet in terms of how they're thinking about changes to the mining taxation. Thank you.
It's interesting question actually this week.
The new broadens the process to get there.
Confidence vote funded from the Parliament from the Congress.
But this week.
Worse.
Sure.
I would not see announcements, but some of the government released some information about potential plans to increase.
Taxes in general.
Those tax increase of course would also affect the mining industry there.
But the big question Mark for US the government will be able to do anything.
Given its position.
And the Congress that they don't have the Congress majority. So the performance has been very tough on the government.
The bomb is already in place for the last three months almost four months and they havent bought yet that did vote of confidence.
The government needs to call the vote two to allow the minister to work and they haven't gotten it yet so we don't think the.
The life of the new Columbus will be very easy.
It seems.
It seems to us that probably will see pretty much what you've seen there alone to last.
Down to 15 years, when Congress had a very strong position.
The presidency was supposed to negotiate on a case by case basis.
We don't believe the tax increase will be.
Favorable bye bye bye the Congress. So we are still looking at that being.
Been skeptical about any major change happening.
Doing this bureau of buying them in the next the next month or next few years.
It's still a time to be.
Pay attention.
General complement what people are saying out there there's a process there so they need the vote of confidence they need to discuss putting discuss the proposal that was sent this week and let's be reminded that they have to prove anything.
On to December 31st two habit valid for 2022 automotive is going to be it's going to be an additional year or off discussion to make it a ballast for 'twenty.
So it doesn't necessarily goes on the urgent.
The Congress matters.
Potentially follow.
<unk>.
These are all possibilities that are on the table.
I would pay attention to what's going on in Chile.
Two.
It leads to a tool to try to guess.
What may happen in balloon Nathan Wong.
Good point.
Thanks, Alright, bye bye bye.
By that comment do you mean that the tax framework that eventually emerges out of Chile.
Could be a benchmark for Peru, or you're talking more and more procedural yes. They may they may try to do a similar thing that's what I'm, saying.
No my comment was rather on the process, Alex because its okay fine.
Chile was really hot and then the reality check was that it's not so easy to do but also of course they are neighbors and they are there are some some of the practices that might be the fall.
A good example, the chileans, who want to have a new constitution. There were some pools into asking you about that the Peruvian they don't want to change. The constitution. This is just an example, okay, but in terms of tax increase.
The room above and may pursue something seems not too what the Chilean market.
That's right.
Okay. Thank you and good luck with the new mine.
So very much.
This concludes our question and answer session now I will hand, it over to Tito for his final remarks. Mr. Martinez. Please go ahead.
Pardon me a mcmanus.
Our bathroom, Nick do you want to say something else.
I think that we are missing something that should be I think we covered their messaging maybe.
I'll bet.
Alright.
So what I'd like to add in terms of highlights that we included some information in our earnings release in terms of the outstanding motto.
So we'll be safe.
We will help you in order to update you.
You're more models and Clinton Pointe So one thing that I'd like to pay attention for example, with the outstanding.
Price adjustment that we had for example in an hour.
Mining segment, when we compare the second quarter of 2021 with the third quarter bedroom has a net right.
In fact, it was negative 24 million.
So it will depend in terms of the pricing moving for the current prices so only like to pay attention.
Yeah.
That topic, because we believe with information that we are now providing with a table of how much matter, we have outstanding bolt mining segments.
Oh future evaluation.
Thanks ill hop out besides that the woodlands master.
We have increasing costs assumed the smelters.
Normally the last quarter, but you should pay attention to the marching orders to her at a time.
Margins in the smelters traditional they vary between them.
And 12% right.
Right now at around 12%, which is which is which is still good.
Besides that.
I know that deepwater wasn't disappointed disappointment for most of the anonymous.
I think that.
You should look at the Big picture.
The nine months up 21 have been very good. Despite a lot of problems with fees of course price are helping us no doubt about that but in terms of performance. We have blockades in the first half of the year, we had the issue of not having a in a business policy in individual market because those loan was shut down.
<unk>.
We had the blockades on the third floor too good.
The price were good that's why we decided to move.
To keep up the level of production in the first half in order to enjoy prices of <unk>.
In doing so we had.
We believe so.
So some maintenance shutdowns, which happened in the third quarter, but looking at the Big picture I would say that we tend to have a very good year.
It must become the best year off Nexus ever.
Given that prices and give the performance we are foreseeing for the last quarter of the year. So I ask you to pay attention to that because.
We may see again.
The analysts not very happy.
Happy with us because the models will work.
<unk> forecast.
The fourth quarter looking like the third quarter.
I would ask you to get the answer to that.
Having said that that's my my last call I. Thank you all for your attention your support among others.
Yes.
I'm not sure what I'm going to do but hope we can meet in the future.
And.
I'm really confident the next of kin believer I have no doubt about that we have a very strong team, which knows where they want to be.
Future and what they need to do in order to get to the year.
The Companys farewell structure.
<unk> has a very good strategic plan.
With a very knowledgeable board, which has been very supportive to us.
A very energetic management team so so.
I'm really confident that next so we will be able to deliver what you'd seen tend to deliver.
We all wish you all well.
All the best for all of you and once more thank you very much have a good day would weekend.
Thank you Sir This concludes today's conference call. Thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Thank you.