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LUXEMBOURG - Nexa Resources S.A. (NYSE:NEXA), a mining company with a market capitalization of $649 million and an EBITDA of $591 million in the last twelve months, announced Tuesday the partial and temporary suspension of mining activities at its Atacocha and El Porvenir mines in Peru due to illegal blockades by individuals from the San Juan de Milpo community.
The company reported that while there has been no material impact on production to date, operations have been limited to critical activities to ensure safety and proper maintenance at the mining facilities.
The Cerro Pasco Complex, which includes these mines, contributes approximately 1.2 kilotons of zinc per week to Nexa’s production. Despite the disruption, the company stated that its 2025 production guidance remains unchanged at this time.
"Nexa remains committed to constructive dialogue with the community and authorities to achieve a peaceful and prompt resolution," the company said in a press release statement.
Nexa Resources, which describes itself as a large-scale, low-cost integrated polymetallic producer with zinc as its main product, operates four underground polymetallic mines - two in Peru and two in Brazil - along with one open-pit mine in Peru and three smelters in Brazil and Peru.
The company will continue to monitor the situation and provide updates to the market as necessary, according to the statement.
In other recent news, Nexa Resources S.A. has fully resumed operations at its Cajamarquilla smelter following a temporary suspension due to labor disputes. The company announced that normal capacity utilization levels have been restored after successful negotiations with the operator employees’ labor union. This development follows a three-day halt in operations, which began when the union initiated a strike despite prior negotiations involving the Ministry of Labor. In a separate update, Morgan Stanley downgraded Nexa Resources from Equalweight to Underweight, citing a less optimistic view on zinc prices. The downgrade also included a reduction in the price target from $7.00 to $5.00. Morgan Stanley’s decision was influenced by its commodity team’s revised outlook on zinc prices, which could affect Nexa’s financial performance. These recent developments highlight both operational and financial challenges that the company is navigating.
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