Nexa Resources S.A. NEXA has announced that it is gradually resuming production at its Cajamarquilla smelter in Peru, which was temporarily suspended following 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. Nexa Resources is still investigating the cause of the incident.
Nexa Resources stated that the electrolysis lines at Cajamarquilla are already fully operational, with one casting line restarted over the weekend to resume zinc bar production. The second casting line is expected to be back online within the next few days, while the final casting line will be back by mid-June.
NEXA’s Outlook
Nexa Resources expects a production impact of 7,000 tons of refined zinc, indicating 2% of annual production, due to the temporary production halt at Cajamarquilla. However, the company expects to recover the lost production in the second half of 2026.
NEXA does not expect any material financial impact from this incident. The company guides consolidated smelting conversion costs of 31-34 cents per pound for 2026. Nexa Resources’ full-year capital expenditure guidance remains unchanged at $381 million.
Nexa Resources Stock’s Price Performance
Shares of NEXA have skyrocketed 207.7% in the past year compared with the industry’s 61.4% surge.
NEXA’s Zacks Rank & Other Stocks to Consider
Nexa Resources currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the basic materials space are Albemarle Corporation ALB, Air Products and Chemicals, Inc. APD and Avino Silver & Gold Mines Ltd. ASM. ALB flaunts a Zacks Rank #1 (Strong Buy) at present, and APD and ASM carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares soared 203.1% so far this year.
The Zacks Consensus Estimate for Air Products and Chemicals’ current-year earnings is pegged at $13.20 per share, indicating a 9.7% year-over-year rise. APD has an average trailing four-quarter earnings surprise of 2.9%. Air Products and Chemicals’ shares have gained 10.1% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares surged 113.4% in a year.
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This article originally published on Zacks Investment Research (zacks.com).