Welcome to our dedicated page for Nexa Resources news (Ticker: NEXA), a resource for investors and traders seeking the latest updates and insights on Nexa Resources stock.
Nexa Resources S.A. (NYSE: NEXA) is a prominent player in the global non-ferrous metals market, primarily focusing on zinc production while also generating copper, silver, and gold as byproducts. With over 65 years of expertise in the industry, Nexa operates as a low-cost, integrated producer, maximizing efficiency through its vertically integrated operations.
Nexa's business is divided into two main segments: Mining and Smelting. The Mining segment involves mineral exploration and the production of zinc and copper concentrates. This segment is currently driven by five long-life mines located in the central Andes region of Peru and the state of Minas Gerais in Brazil. Their sixth mine, Aripuanã, is being ramped up in the state of Mato Grosso, Brazil.
The Smelting segment includes the refining and recovery of zinc metal from concentrates and other secondary materials. Nexa operates three smelters: two in the state of Minas Gerais, Brazil, and one in Cajamarquilla, Peru, which boasts the title of the largest smelter in the Americas. This segment generates the majority of the company's revenue.
Nexa Resources continues to make strides in sustainability and innovation. In March 2024, they announced the suspension of operations at the Morro Agudo Complex in Brazil, aligning with their strategy to optimize their portfolio and improve cash flow. This decision underscores their commitment to disciplined capital allocation and long-term value maximization for shareholders.
The company is also focused on enhancing its operational efficiency and safety standards. Despite challenging market conditions and the recent fatalities at the El Porvenir and Vazante mines, Nexa remains committed to achieving zero fatalities and improving safety protocols. Their focus on high performance is propelled by inspirational leadership and significant investment in the development of their talented workforce.
Geographically, Nexa has a diverse presence, operating in countries such as Brazil, Peru, the United States, Switzerland, Japan, Argentina, South Korea, Colombia, Vietnam, and Malaysia, among others. This extensive reach allows them to effectively navigate the complexities of the global metals market.
Nexa's forward-looking strategies include robust mineral exploration programs aimed at identifying new mineralized zones in their existing mines and expansion projects. They plan to conduct over 66,000 meters of drilling in 2024, focusing on both brownfield and greenfield targets, to ensure sustained growth and resource replenishment.
In terms of financial performance, Nexa reported solid operating results for the first quarter of 2024, despite lower global zinc prices and other macroeconomic challenges. Their disciplined approach to capital expenditure and portfolio optimization ensures they continue to deliver value to stakeholders, reinforcing their position as a leading and sustainable investment option in the mining industry.
Nexa Resources has reported Q1 2023 exploration results, revealing an expanded drilling program totaling 97,290 meters for the year, up from the previously planned 78,185 meters. This includes 36,340 meters in Brazil, 53,950 meters in Peru, and 7,000 meters in Namibia. In Q1, 19,434 meters were drilled across various sites. Key findings include high-grade mineralization at the Babaçú and Ambrex ore bodies, with impressive results such as 25.1 meters grading 4.83% Zn and 18.84% Zn in various holes. Activities in Brazil and Peru showed significant mineral continuity and high-grade intersections. No drilling occurred in Namibia during this quarter, but operations are expected to resume in Q2 2023.
Nexa Resources has announced the resumption of operations at its Cerro Lindo mine following the restoration of road access. The plant is currently operating at a production rate of 17ktpd, while underground mine dewatering is on track to be completed within 15 days. The mine produces around 233t of zinc per day, with an expectation to recover production losses from Q1 2023 in the coming quarters. The company's 2023 production guidance remains unchanged. Nexa is a leading integrated zinc producer in Latin America, with over 60 years of experience.
Nexa Resources has filed its annual report on Form 20-F for the fiscal year ended December 31, 2022, with the U.S. SEC and on SEDAR in Canada. Shareholders can request a hard copy of the audited financial statements at no cost. Additionally, Nexa has published an updated report on Mineral Reserves and Resources estimates as of December 31, 2022, prepared in accordance with NI 43-101. The company operates five underground mines in Peru and Brazil and is ramping up its sixth mine in Mato Grosso. Nexa ranked among the top five global producers of mined zinc in 2022, according to Wood Mackenzie.