Nexa Resources SA
TSX:NEXA
Nexa Resources SA
Nexa Resources SA, a name that commands attention in the mining industry, traces its roots back to the intertwining landscapes of Brazil and Peru. This company embodies the robust and untapped mineral wealth of Latin America. Nexa, integrated vertically from mine to market, operates primarily in the production of zinc, alongside significant exploration and output of copper and lead. With a strategic focus on these base metals, Nexa capitalizes on its extensive portfolio of long-life mines and smelting operations. Its positioning is not by chance; by managing both mining and smelting activities, the company ensures a smooth flow from raw extraction to the commodity forms that reach global markets.
Revenue generation for Nexa hinges not just on the sheer extraction of minerals but on the efficiency and restructuring of its operations. With smelters that process the mined ores, Nexa produces metals refined to meet industry standards, thus adding significant value. This vertically integrated framework allows the company to capture margins across the production chain, tapping into the high-volume, cyclical demand for metals driven by infrastructure and industrial sectors globally. By maintaining a keen eye on operational efficiency, cost management, and strategic investments in technology and exploration, Nexa deftly manages to stay competitive and profitable in a challenging and fluctuating market.
Nexa Resources SA, a name that commands attention in the mining industry, traces its roots back to the intertwining landscapes of Brazil and Peru. This company embodies the robust and untapped mineral wealth of Latin America. Nexa, integrated vertically from mine to market, operates primarily in the production of zinc, alongside significant exploration and output of copper and lead. With a strategic focus on these base metals, Nexa capitalizes on its extensive portfolio of long-life mines and smelting operations. Its positioning is not by chance; by managing both mining and smelting activities, the company ensures a smooth flow from raw extraction to the commodity forms that reach global markets.
Revenue generation for Nexa hinges not just on the sheer extraction of minerals but on the efficiency and restructuring of its operations. With smelters that process the mined ores, Nexa produces metals refined to meet industry standards, thus adding significant value. This vertically integrated framework allows the company to capture margins across the production chain, tapping into the high-volume, cyclical demand for metals driven by infrastructure and industrial sectors globally. By maintaining a keen eye on operational efficiency, cost management, and strategic investments in technology and exploration, Nexa deftly manages to stay competitive and profitable in a challenging and fluctuating market.
Strong Quarter: Nexa delivered robust Q3 results with higher mining output, improved smelting performance, and strong financials.
Operational Recovery: Mining production reached 84,000 tons of zinc, up 14% sequentially, led by record output at Aripuana and recovery at Vazante.
Financials: Net revenue was $764 million (up 8% QoQ and YoY) and adjusted EBITDA reached $186 million (up 16% QoQ), with net income of $100 million and free cash flow of $52 million.
Leverage Down: Net leverage improved to 2.2x from 2.3x last quarter; management reiterated its commitment to deleveraging.
CapEx & Guidance: 2025 CapEx guidance remains at $347 million and is expected to be similar in 2026; CapEx has some flexibility if needed.
Aripuana Progress: Fourth tailings filter installation is on track, supporting full production capacity by mid-2026.
Market Outlook: Management sees a supportive backdrop for zinc, copper, and silver, with tight supply and resilient demand.
ESG Achievements: Nexa received several recognitions for gender equity, emissions reduction, and responsible sourcing.
