| Over a month ago | ||||
Morgan Stanley downgraded… Morgan Stanley downgraded Nexa Resources to Underweight from Overweight with a price target of $5.60, down from $6.00, as part of a broader research note on Americas Metals & Mining. While the firm remains constructive over the long term on decarbonization/electrification trends that support demand for metals and challenging conditions to develop new supply, it prefers to "take chips off the table" as mining equities share prices are more adequately reflecting the China reopening. The timing and magnitude of the company's operational turnaround were "overestimated", Morgan Stanley adds, noting that it is now cutting its 2023 and 2024 EBITDA estimates by 40% and 5% respectively after incorporating the company's latest guidance. | ||||
Nexa Resources announced… Nexa Resources announced that Cerro Lindo has resumed its operations. The road access has been restored. However, some drainage systems are still being repaired. The plant is currently operating according to our production plan, 17ktpd, while the underground mine dewatering process is progressing as planned and is expected to be completed within 15 days. Cerro Lindo produces approximately 233t of zinc per day. The 1Q23 production loss is expected to be recovered in the upcoming quarters. The 2023 guidance remains unchanged as of the date of this press release. | ||||
Nexa Resources informs… Nexa Resources informs that production at the Cerro Lindo mine is suspended due to unusual heavy rainfall levels and overflowing rivers caused by Cyclone Yaku, which has been affecting the region, as well as other parts of the country. Nexa's underground mine received more water than it could pump to the surface, partially flooding some lower levels of the mine. Road access was also compromised. Nexa is closely monitoring and evaluating the situation as it develops and is taking all necessary precautions to ensure the safety of its employees, contractors and host communities. On a daily basis, Cerro Lindo produces approximately 233t of zinc. Production has not yet been impacted month to date. "We expect to be able to resume production within the next ten to twelve days, subject to the dewatering process in the underground mine and the impact of rainfall on other areas of the operation. The potential impact on the 2023 guidance and its results are under review. Nexa reiterates its commitment to the health and safety of its employees and will keep the market informed of further developments." | ||||
| Over a quarter ago | ||||
The company states:… The company states: "Nexa Resources informs that production at the Atacocha San Gerardo open pit mine is temporarily suspended. The Machcan community has illegally blocked the road access to the mine due to protest activities, and although there is no material impact on Atacocha's production to date, mine production has been suspended, and activities are limited to critical operations with a minimum workforce to ensure proper maintenance. Nexa is complying with all existing agreements, pursuing an active dialogue with the community and authorities for a peaceful resolution of this situation, in addition to remaining committed to the social development of all its host communities. On a weekly basis, Atacocha produces approximately 0.2kt of zinc, accounting for less than 3% of Nexa's zinc production. Nexa will keep the market informed of further developments." | ||||
Nexa Resources is down… Nexa Resources is down -21.0%, or -$1.41 to $5.30. | ||||
Nexa Resources is down… Nexa Resources is down -13.8%, or -93c to $5.78. | ||||
Nexa Resources is down… Nexa Resources is down -6.1%, or -32c to $4.86. | ||||
Nexa Resources is up… Nexa Resources is up 10.0%, or 50c to $5.48. | ||||
Morgan Stanley analyst… Morgan Stanley analyst Carlos De Alba upgraded Nexa Resources to Overweight from Equal Weight with a price target of $6.60, down from $7.20. The analyst believes value is beginning to show within Americas metals and mining stocks, but cautions that uncertainty remains. He "selectively" upgraded several names with Teck named a top pick. The upgrades reflect exposure to deep value and/or self-help stories, amid macro uncertainties and questions over a China recovery, De Alba tells investors in a research note. He says Nexa has material upside to consensus expectations. | ||||
Nexa Resources has… Nexa Resources has appointed Jose Carlos del Valle as Nexa's Senior VP of Finance and Group CFO, effective October 3rd. del Valle joins Nexa after spending nine years as CFO at Compania Minera Antamina. Before Antamina, he was the CFO of Volcan Compania Minera. Prior to that, he held various leadership positions at well-known companies, including McKinsey & Company, Standard Chartered Bank, and Wells Fargo Bank, among others. | ||||
