Nexa Resources Stock Jumps on Strong Results, Upbeat Outlook

Key Performance Highlights

Nexa Resources SA (NYSE:NEXA) saw its stock climb 3.4% after announcing strong operational results for 2025 and a positive production outlook for the 2026-2028 period. The company successfully met its consolidated mining production guidance across all metals.

Notably, zinc production totaled 316,000 tonnes for 2025. The company also reported an exceptional mining cash cost performance, with its consolidated C1 cash cost reaching negative $0.30 per pound, approximately 48% below annual guidance.

Operational Overview and Projections

The smelting segment performed well, with metal sales reaching 567,000 tonnes, in line with guidance. A record-high annual production at the Cajamarquilla smelter was a key contributor, offsetting operational issues at other facilities.

Looking forward, Nexa projects a 6% increase in zinc production for 2026, followed by further growth of 8% in 2027. The company also plans to increase capital expenditures to $381 million in 2026, up $34 million from 2025, to fund mine development and safety initiatives.

Market Impact and Future Steps

The positive results and clear growth strategy have been well-received by the market, reflecting confidence in the company's operational efficiency and future output. Nexa is scheduled to release its complete fourth quarter and full-year 2025 financial results on February 26, 2026, which will provide further details on its financial health.

Conclusion

Nexa's strong performance, particularly in cost management and production consistency, positions it for sustained growth. Investors will be closely watching the upcoming financial release and the company's ability to execute on its production targets for 2026 and beyond.

FAQ

Q: What was the main reason for the rise in Nexa Resources' stock?
A: The stock rose due to strong 2025 operational results, exceptionally low cash costs, and a positive production outlook for 2026 through 2028.

Q: What is Nexa's zinc production forecast for 2026?
A: Nexa expects its zinc production to increase by approximately 6% in 2026 compared to 2025.

Source: Investing.com