Nexa Resources S.A. (NEXA)

Nexa Resources S.A. (NEXA) Materials & Commodity Exposure

Nexa Resources S.A. is a key player in the zinc mining and smelting industry, operating primarily in Peru and Brazil. The company differentiates itself through its polymetallic mining operations and diversified product portfolio, including silver, gold, and lead, positioning it within the broader industrial materials sector.

What Is the Investment Thesis for NEXA?

Nexa Resources presents an investment opportunity based on its established position in the zinc market and its diversified portfolio of metals. With a P/E ratio of 7.6 and a profit margin of 4.4%, the company demonstrates profitability, though there is room for improvement. The company's ongoing Aripuanã project represents a potential growth catalyst, expected to contribute to increased production capacity. The company's beta of 0.60 suggests lower volatility compared to the broader market. However, investors may want to evaluate risks associated with commodity price fluctuations and geopolitical factors in Peru and Brazil.

Based on FMP financials and quantitative analysis

NEXA Key Highlights

• Market capitalization of $1.74B reflects Nexa's significant presence in the zinc mining industry.
• P/E ratio of 7.6 indicates a potentially reasonable valuation compared to earnings.
• Gross margin of 19.7% demonstrates the company's ability to generate profit from its operations.
• Dividend yield of 0.70% provides a modest return for investors.
• Beta of 0.60 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors.

Who Are NEXA's Competitors?

NEXA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NEXA's Key Strengths?

• Diversified metal production (zinc, silver, gold, lead).
• Strategic locations in Peru and Brazil.
• Established mining operations with significant reserves.
• Experienced management team.

What Are NEXA's Weaknesses?

• Exposure to commodity price fluctuations.
• Dependence on specific geographic regions.
• Environmental and social risks associated with mining operations.
• Profit margin of 4.4% could be improved.

What Could Drive NEXA Stock Higher?

• Completion and commencement of operations at the Aripuanã project in Brazil, expected to increase zinc, lead, and silver production.
• Exploration and development of new mineral deposits in Peru and Brazil to expand reserves and production capacity.
• Implementation of technological upgrades and efficiency improvements to reduce costs and increase productivity.

What Are the Key Risks for NEXA?

• Financial-distress signal — its Altman Z-Score of 1.03 sits in the distress zone (elevated bankruptcy risk).
• Fluctuations in zinc, silver, gold, and lead prices could negatively impact revenue and profitability.
• Geopolitical instability and regulatory changes in Peru and Brazil could disrupt mining operations.
• Environmental and social risks associated with mining operations, including water management and community relations.
• Competition from other mining companies could reduce market share and pricing power.

What Are the Growth Opportunities for NEXA?

• Aripuanã Project Development: The Aripuanã project in Mato Grosso, Brazil, represents a significant growth opportunity for Nexa Resources. This project is expected to increase the company's production capacity and diversify its metal output. The project is in development, with potential for increased zinc, lead, and silver production. Successful completion and operation of the Aripuanã project could significantly boost Nexa's revenue and profitability, with a projected market size dependent on prevailing metal prices.
• Expansion of Polymetallic Mining Operations: Nexa Resources can expand its existing polymetallic mining operations in Peru and Brazil to increase production of zinc, silver, gold, and lead. This expansion could involve exploration of new deposits, optimization of existing mines, and technological upgrades to improve efficiency. The market size for these metals is substantial, driven by demand from various industries, including electronics, jewelry, and industrial manufacturing. Timeline for expansion depends on permitting and capital investment.
• Strategic Acquisitions: Nexa Resources could pursue strategic acquisitions of other mining companies or projects to expand its geographic reach and metal portfolio. This could involve acquiring companies with complementary assets or projects in new regions. The market for mining acquisitions is competitive, but strategic acquisitions could provide Nexa with access to new resources and markets. Timeline depends on availability of suitable targets and regulatory approvals.
• Technological Innovation and Efficiency Improvements: Investing in technological innovation and efficiency improvements can enhance Nexa Resources' operational performance and reduce costs. This could involve implementing advanced mining techniques, automation, and data analytics to optimize production processes. The market for mining technology is growing, with potential for significant cost savings and productivity gains. Timeline for implementation depends on technology development and capital investment.
• Increased Focus on Sustainability and ESG Initiatives: Nexa Resources can enhance its reputation and attract investors by increasing its focus on sustainability and ESG (environmental, social, and governance) initiatives. This could involve reducing carbon emissions, improving water management, and promoting responsible mining practices. The market for sustainable and ethically sourced metals is growing, with increasing demand from consumers and investors. Timeline for implementation depends on specific initiatives and stakeholder engagement.

What Opportunities Does NEXA Have?

• Expansion of existing mining operations.
• Development of the Aripuanã project.
• Strategic acquisitions of other mining companies.
• Increased focus on sustainability and ESG initiatives.

What Threats Does NEXA Face?

• Geopolitical instability in Peru and Brazil.
• Environmental regulations and permitting challenges.
• Competition from other mining companies.
• Fluctuations in exchange rates.

What Are NEXA's Competitive Advantages?

• Geographic concentration in Peru and Brazil provides regional advantages.
• Diversified product portfolio including zinc, silver, gold, and lead.
• Established mining operations with significant reserves.
• Subsidiary of Votorantim S.A., providing financial backing and resources.

What Does NEXA Do?

Nexa Resources S.A. is a leading zinc producer with a significant presence in Latin America. Founded in 1956, the company has evolved from its roots as VM Holding S.A. to become a prominent player in the mining and metals industry. Nexa Resources engages in zinc mining and smelting, producing various metals and by-products, including zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. The company owns and operates five underground polymetallic mines, with three located in the Central Andes of Peru and two in the State of Minas Gerais in Brazil. Additionally, Nexa Resources is developing the Aripuanã project in Mato Grosso, Brazil, further expanding its production capacity. The company exports its products globally, contributing to its revenue stream. Nexa Resources S.A. is a subsidiary of Votorantim S.A., a large Brazilian industrial conglomerate.

What Products and Services Does NEXA Offer?

• Engages in zinc mining and smelting operations.
• Produces zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits.
• Owns and operates five underground polymetallic mines.
• Operates mines in the Central Andes of Peru and the State of Minas Gerais in Brazil.
• Develops the Aripuanã project located in Mato Grosso, Brazil.
• Exports its products globally.

How Does NEXA Make Money?

• Extracts and processes zinc ore from its underground mines.
• Smelts zinc concentrate to produce refined zinc metal.
• Produces and sells other metals and by-products, including silver, gold, and lead.
• Exports its products to customers worldwide.

What Industry Does NEXA Operate In?

Nexa Resources operates within the industrial materials sector, which is influenced by global economic growth, infrastructure development, and commodity prices. The zinc market, in particular, is driven by demand from the construction, automotive, and manufacturing industries. Competition includes other major mining companies with diversified metal portfolios. Nexa's focus on zinc and its strategic locations in Peru and Brazil position it to capitalize on regional growth and demand for base metals. The company's polymetallic mines provide diversification and potential for increased revenue streams.

Who Are NEXA's Key Customers?

• Industrial manufacturers who use zinc in their products.
• Metal traders and distributors.
• Construction companies that use zinc-coated steel.
• Chemical companies that use sulfuric acid.

Company Profile

Nexa Resources S.A. operates in the Industrial Materials industry within the Basic Materials sector. It is headquartered in Luxembourg City, BR. The company is led by CEO Juan Ignacio Rosado Gomez de La Torre. NEXA has traded publicly since 2017.

How Nexa Resources S.A. Is Valued

Nexa Resources S.A. carries a market capitalization of $1.74B, placing it in the small-cap category. Relative to its peer group, NEXA's quantitative score of 50/100 is below the peer average of 62/100.

ROE 21%Key Financial Metrics

Return on equity for Nexa Resources S.A. stands at 21.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.0%, showing how much profit it generates from its asset base. NEXA trades at a trailing price-to-earnings ratio of 7.59, below the Basic Materials sector average of ~22x. Its free cash flow yield is 9.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.85 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 13.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Nexa Resources S.A.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.03 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Nexa Resources S.A. revenue of about $3.55B for fiscal 2026, with EPS near $2.86. The estimate reflects 3 contributing analysts.

NEXA Financials

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NEXA Analyst Consensus

NEXA MoonshotScore

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Common Questions About NEXA (Basic Materials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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