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LUXEMBOURG - Nexa Resources S.A. (NYSE:NEXA), with current market capitalization of $650 million and annual revenue of $2.81 billion, has fully resumed operations at its Cajamarquilla smelter following a three-day temporary suspension, the company announced Monday.
The zinc producer said normal capacity utilization levels have been restored after successful conclusion of negotiations between the company and operator employees represented by their labor union last Friday evening.
Nexa Resources, which operates the largest smelter in the Americas, confirmed that its 2025 sales guidance remains unchanged despite the brief operational interruption.
The Cajamarquilla facility, located in Lima, Peru, is one of three smelters operated by Nexa, with the other two situated in the state of Minas Gerais, Brazil.
According to the company statement, Nexa was among the top five producers of mined zinc globally in 2024 and one of the top five metallic zinc producers worldwide during the same year.
The company operates four long-life underground polymetallic mines, with two located in Peru’s Central Andes region and two in Brazil. Nexa also owns and operates one low-cost polymetallic open pit mine in Peru.
The announcement was made in a press release issued by the Luxembourg-based company, which emphasized its commitment to employee health and safety and promoting constructive dialogue with labor representatives in compliance with applicable regulations.
In other recent news, Nexa Resources has temporarily halted operations at its Cajamarquilla smelter in Peru due to a strike by operator employees. Despite ongoing negotiations with the Ministry of Labor, no agreement has been reached with the operator’s union, although an agreement with the technician’s union has been secured. Nexa Resources has stated that the strike is not expected to impact its 2025 sales guidance. Additionally, BMO Capital Markets has initiated coverage of Nexa Resources with a Market Perform rating and a price target of $6.00, citing challenges with free cash flow, weak smelting margins, and difficulties with the Aripuana project. BMO Capital analysts anticipate improved operating cash flow but note that reducing debt remains a near-term priority for the company. In a separate development, Nexa Resources announced plans to issue new senior unsecured notes to fund a cash tender offer for existing notes due in 2027 and 2028. The proceeds will also be used for general corporate purposes, including liability management transactions. These notes will not be registered under the U.S. Securities Act and will only be available to qualified institutional buyers or non-U.S. persons.
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