Nexa Resources S.A.’s NEXA Cajamarquilla smelter in Peru had to be temporarily suspended due to a fire on May 13. The fire damaged portions of the smelter's infrastructure. On the day of the incident, personnel were evacuated from the affected area as a safety precaution. The smelter gradually resumed production in late May,
Nexa Resources expects a lost production impact of 7,000 tons of refined zinc, indicating 2% of annual production. Even though this is expected to reflect on its second-quarter performance, the company expects to recover the lost production in the second half of 2026.
NEXA has kept its 2026 sales guidance intact. It expects consolidated zinc production to increase 6% at the mid-point from the 2025 reported level. The increase will be driven by increased output at the Aripuanã, Atacocha and Vazante mines. However, it will be partially offset by lower volumes at Cerro Lindo and El Porvenir due to mine sequencing that anticipates slightly lower grades.
The company expects zinc production to increase 8% in 2027 from the 2026 reported level. 2028 zinc production is expected to be flat as higher production from the Atacocha, Aripuanã and Vazante mines will be offset by lower contributions from Cerro Lindo and El Porvenir.
The company expects consolidated conversion costs for 2026 to remain flat year over year at 31-34 cents per pound. Higher output at Brazilian smelters, driven by plant recovery, process stabilization and roaster improvements, will be somewhat negated by lower production at the Cajamarquilla site.
Nexa Resources Peers’ Outlook
Hudbay Minerals Inc. HBM expects zinc production of 16,000-21,000 tons in 2026, indicating an increase of 5% at the mid-point. Zinc production in 2026 is expected to be flat with that reported in 2025.
Hudbay Minerals expects zinc production to increase to 29,000-36,000 tons by 2028, suggesting a 76% increase from the 2026 reported figure at the mid-point. The upside in Hudbay Minerals’ zinc production will be driven by higher production from the 1901 deposit.
Teck Resources Limited’s TECK production of zinc in concentrate declined to 120 thousand tons in the first quarter of 2026 from 137 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. Teck Resources expects zinc production to trend lower over the next three years as the mine approaches the end of its life. Teck Resources’ 2026 zinc production guidance is 410-460 thousand tons, whereas it produced 565 thousand tons in 2025.
NEXA’s Price Performance, Valuations & Estimates
Nexa Resources’ stock has rocketed 156.3% in a year, outperforming the Zacks Mining - Miscellaneous industry’s 33.7% return. Meanwhile, the Basic Materials sector has risen 23.5% and the S&P 500 has rallied 24.8%.
The NEXA stock is currently trading at a forward 12-month earnings multiple of 5.02X, which is a discount to the industry average of 13.66X.
The Zacks Consensus Estimate for Nexa Resources’ 2026 sales is $3.44 billion, indicating a 14.5% year-over-year jump. The consensus mark for the year’s earnings is pegged at $2.82 per share, suggesting a year-over-year upsurge of 231%.
The Zacks Consensus Estimate for 2027 sales implies a 9% year-over-year dip. The same for earnings suggests a fall of 16.9%.
EPS estimates for 2026 have moved 35.6% north over the past 60 days, while the same for 2027 has moved up 27.2% over the past 60 days.
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NEXA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Nexa Resources S.A. (NEXA): Free Stock Analysis Report
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Teck Resources Ltd (TECK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).