Nexa Provides Update on Cajamarquilla Operation
Rhea-AI Summary
Nexa Resources (NYSE:NEXA) temporarily suspended operations at its Cajamarquilla smelter in Peru after a fire on May 13, 2026. The fire was contained and personnel were evacuated. There were no fatalities; four people were injured and are in stable condition.
Portions of the smelter infrastructure were damaged, but the company currently does not expect a material impact and is coordinating with authorities while investigating the cause and assessing the restart timeline.
AI-generated analysis. Not financial advice.
Positive
- Fire at Cajamarquilla smelter was contained
- No fatalities reported; four injured individuals in stable condition
- Company does not anticipate a material impact from the incident
- Active coordination with relevant authorities and internal emergency teams
Negative
- Temporary suspension of operations at Cajamarquilla smelter
- Damage to portions of the smelter infrastructure
- Restart timeline and full operational impact still under assessment
Key Figures
Market Reality Check
Peers on Argus
While NEXA was up 3.83%, peers in Other Industrial Metals & Mining were broadly negative: CRML -1.76%, SGML -9.12%, SLI -5.34%, UAMY -3.3%, USAS -0.96%, suggesting a stock-specific move around the Cajamarquilla update rather than a sector-wide trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 06 | 1Q26 earnings strength | Positive | -16.7% | Stronger 1Q26 profitability and revenues alongside higher metal prices and volumes. |
| Apr 24 | Sustainability report | Positive | -2.4% | Publication of 2025 Sustainability Report under multiple ESG reporting frameworks. |
| Mar 26 | Annual report & MRMR | Neutral | +3.8% | Filing of Form 20-F and mining report on reserves and resources. |
| Mar 26 | Reserves/resources update | Positive | +3.8% | 4.4% growth in Mineral Reserves to 115.1 Mt and life-of-mine extensions. |
| Feb 26 | 2025 results | Positive | +13.6% | Turn to 2025 net income with higher Adjusted EBITDA and proposed distribution. |
Recent history shows that even strong operational and financial updates can trigger both sharp gains and sharp selloffs, indicating event reactions have been mixed rather than uniformly positive.
Over the last months, Nexa has highlighted stronger financial and operational performance, including US$223 million 2025 net income and US$772 million Adjusted EBITDA, followed by 1Q26 net income of US$118 million and Adjusted EBITDA of US$283 million on revenues of US$888 million. Mineral Reserves grew to 115.1 Mt and life-of-mine at Vazante was extended to 2034. Despite these positives, the 1Q26 earnings release saw a -16.69% move. Today’s Cajamarquilla fire-related suspension contrasts this improving backdrop with an operational risk event.
Market Pulse Summary
This announcement details a fire at Nexa’s Cajamarquilla zinc smelter, leading to a temporary suspension, infrastructure damage, and 4 reported injuries, though all are in stable condition and the company does not expect a material impact based on current information. It follows a period of stronger financial performance, including 1Q26 net income of US$118 million and growing Mineral Reserves of 115.1 Mt. Investors may watch updates on restart timing, safety measures, and any revisions to operational guidance.
AI-generated analysis. Not financial advice.
Luxembourg, Luxembourg--(Newsfile Corp. - May 13, 2026) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources", "Nexa" or the "Company") announces that operations at the Cajamarquilla smelter in Peru have been temporarily suspended following an incident this morning that resulted in a fire, which has been contained.
Personnel were evacuated from the affected areas as a precautionary measure, with the support of the Company's internal emergency response teams.
There were no fatalities. Four people sustained injuries, one Nexa employee and three contractors, and all are in stable condition.
The incident has caused damage to portions of the smelter infrastructure. Based on currently available information, the Company does not anticipate a material impact arising from this incident.
Notifications and coordination with the relevant authorities are underway as the Company assesses the timeline for the resumption of operations, while the cause of the incident remains under investigation.
About Nexa
Nexa is a large-scale, low-cost, integrated polymetallic producer, with zinc as our main product. We have over 65 years of experience developing and operating mining and smelting assets in Latin America. We currently own and operate five polymetallic mines - four long-life underground (two in the Central Andes region of Peru and two in Brazil, in the states of Minas Gerais and Mato Grosso) and one open-pit mine in the Central Andes region of Peru. We also own and operate three zinc smelters - two in the state of Minas Gerais, Brazil (Três Marias and Juiz de Fora), and one in Lima, Peru (Cajamarquilla), which is the largest zinc smelter in the Americas.
Cautionary Statement on Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this news release as "forward-looking statements"). Forward-looking statements contained in this news release may include, but are not limited to, zinc and other metal prices and exchange rate assumptions, projected operating and capital costs, metal or mineral recoveries, head grades, mine life, production rates, and returns; the Company's potential plans; the estimation of the tonnage, grade and content of deposits and the extent of mineral resource and mineral reserve estimates; timing of commencement of production; exploration potential and results; the timing and receipt of necessary permits for future operations; and the impacts of COVID-19 on our operations.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results and future performance and achievements will meet or not differ from the expectations of management or qualified persons. All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental, or other risks that could materially affect the potential development of the Project, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally, as well as risks relating to ongoing or future investigations by local authorities with respect to our business and operations and the conduct of our customers, including the impact to our financial statements regarding the resolution of any such matters.
These forward-looking statements related to future events or future performance and include current estimates, predictions, forecasts, beliefs and statements as to management's expectations with respect to, but not limited to, the business and operations of the Company and mining production, our growth strategy, the impact of applicable laws and regulations, future zinc and other metal prices, smelting sales, capex, expenses related to exploration and project evaluation, estimation of Mineral Reserves and/or Mineral Resources, mine life and our financial liquidity.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable and appropriate by management and qualified persons considering their experience are inherently subject to significant uncertainties and contingencies and may prove to be incorrect. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, full integration of mining and smelting operations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labor disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, among other assumptions.
Estimates and forward-looking statements refer only to the date when they were made, and we do not undertake any obligation to update or revise any estimate or forward-looking statement due to new information, future events or otherwise, except as required by law. Estimates and forward-looking statements involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our public disclosures filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov).
For further information, please contact:
Investor Relations Team
ir@nexaresources.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297379