Nexa Provides Update on Cajamarquilla Operation
Rhea-AI Summary
Nexa Resources (NYSE:NEXA) updated the market on the Cajamarquilla zinc smelter in Peru after the May 13, 2026 incident. Electrolysis lines are fully running and one casting line is producing zinc bars. Nexa expects a 2Q26 loss of about 7kt (~2% of annual refined zinc output), to be recovered in 2H26. 2026 sales guidance is unchanged and no material financial impact is currently anticipated, while the incident’s cause remains under investigation.
AI-generated analysis. Not financial advice.
Positive
- Electrolysis lines at Cajamarquilla are fully operational again
- One casting line restarted and producing zinc bars
- Second and final casting lines targeted to restart by mid-June 2026
- Estimated 7kt 2Q26 zinc production loss expected to be recovered in 2H26
- 2026 sales guidance remains unchanged despite the incident
- Company does not currently expect a material financial impact
Negative
- Incident caused temporary disruption at Cajamarquilla smelter
- Estimated 2Q26 refined zinc production impact of about 7kt (~2% annual output)
- Root cause of the incident is still under investigation
Key Figures
Market Reality Check
Peers on Argus
NEXA gained 2.76% with several basic materials peers also positive (e.g., SGML up 5.87%, USAS up 5.57%), but the momentum scanner flagged this as stock-specific rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 13 | Cajamarquilla incident | Negative | +6.4% | Fire-related suspension at Cajamarquilla; limited financial impact expected. |
| May 06 | 1Q26 earnings | Positive | -16.7% | Strong 1Q26 net income, revenue and EBITDA growth with reaffirmed guidance. |
| Apr 24 | Sustainability report | Neutral | -2.4% | Publication of 2025 Sustainability Report with ESG and reporting framework details. |
| Mar 26 | 20-F and MRMR | Neutral | +3.8% | Filing of Form 20-F and updated MRMR report underpinning production outlook. |
| Mar 26 | Reserves update | Positive | +3.8% | 2025 reserves grew 4.4% to 115.1 Mt with zinc additions and mine life extensions. |
Recent history shows mixed alignment: strong earnings and adverse events both produced price moves, with notable divergences between headline tone and short-term reaction.
Over the last few months, Nexa reported strong 1Q26 financials on May 6 with higher revenues and EBITDA, yet the stock fell 16.69%. A fire-driven suspension at Cajamarquilla on May 13 led to a 6.36% gain as investors assessed limited financial impact. Earlier, sustainability and reporting updates in late March–April, including 2025 MRMR and reserves growth to 115.1 Mt, saw modest moves around ±3–4%. Today’s update about gradual restart at Cajamarquilla connects directly to the May 13 incident and clarifies the expected 2Q26 production impact.
Market Pulse Summary
This announcement updates the market on Cajamarquilla’s gradual restart, with electrolysis lines running and casting lines phased back into service. Nexa estimates a 7 kt 2Q26 impact, about 2% of annual refined zinc, expected to be recovered later in 2026, and keeps 2026 sales guidance unchanged. This follows earlier regulatory filings describing the incident and emphasizes that no material financial impact is currently anticipated, though the root cause investigation continues.
Key Terms
electrolysis technical
AI-generated analysis. Not financial advice.
Luxembourg, Luxembourg--(Newsfile Corp. - May 29, 2026) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources", "Nexa" or the "Company") provides an update on the gradual resumption of operations at its Cajamarquilla smelter in Peru following the incident reported on May 13, 2026.
Nexa is gradually resuming production at Cajamarquilla, with the electrolysis lines already fully operational and one casting line back in operation since the weekend, currently producing zinc bars. The Company plans to restart the second casting line within the next few days, followed by the final casting line by mid-June.
As a result of the temporary disruption, the Company estimates a production impact in 2Q26 of approximately 7kt (~
The cause of the incident remains under investigation. The Company will continue to update the market as further information becomes available.
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 document contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, as well as forward-looking information within the meaning of applicable Canadian securities legislation, including National Instrument 51-102 (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "would," "could", "should", "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts", "targets", outlook", "guidance", "potential", "project", and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. These factors include, among others, volatility in zinc, copper, lead, silver and gold prices, by-product credits and treatment charges; exchange rate fluctuations, particularly in the Brazilian real and Peruvian sol against the U.S. dollar; availability and cost of critical inputs, including energy, transportation and labor; operational and health, safety and engineering risks inherent to underground and open-pit mining and zinc smelting, including process safety events, equipment failures and fires at smelting facilities; tailings storage facility integrity and management; community opposition, social license disruptions and blockades affecting access to our operations; labor disputes and relations with our workforce and with local communities; cybersecurity incidents and disruptions to information technology systems; execution risk on capital projects, and the risk that capital projects are not completed within expected timelines or budgets; political, regulatory, fiscal and institutional developments in Peru, Brazil and Luxembourg, and broader geopolitical developments, including trade restrictions, tariff changes and policy shifts affecting cross-border commerce, supply chains and capital markets; permitting, environmental regulation, and changes in mining legislation, taxation or government policies; physical climate risk, including the increasing severity and frequency of weather events, and transition risks associated with the global energy transition and decarbonization, including the risk of failing to meet announced sustainability and emissions targets; outbreaks of contagious or infectious diseases, pandemics, or other public health crises; the activities of competitors and global and regional economic conditions; and risks relating to ongoing or future regulatory matters or investigations involving the Company, its operations or customers, and any related impacts on our financial statements. The occurrence of one or more of these factors may materially impact our results of operations and the assumptions underlying our forward-looking statements.
Certain forward-looking statements are based on third-party data and market forecasts, which may not be accurate or current. Nexa does not guarantee such external data and assumes no obligation to update it except as required by law.
Material factors and assumptions on which our forward-looking statements are based include, among others: that demand for our products develops as expected; that customers and counterparties perform their contractual obligations; that operations are not disrupted by mechanical failures, supply constraints, labor disturbances, transportation or utility interruptions or adverse weather; that capital projects are executed within expected timelines and budgets; and that there are no material adverse variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, nor material differences between estimated mineral reserves and mineral resources and actual recovered amounts, beyond those reflected in any specific assumptions disclosed in the materials accompanying this document.
Forward-looking statements speak only as of the date on which they are made, and Nexa undertakes no obligation to update or revise any forward-looking statement, except as required by applicable law.
Further information regarding risks and uncertainties associated with these forward-looking statements, and the assumptions, parameters and methods used to estimate our mineral reserves and mineral resources under National Instruments 43-101, can be found in Nexa's annual report on Form 20-F and in other public disclosures available on our website and filed with the SEC on EDGAR (www.sec.gov), with the Canadian Securities Administrators on SEDAR+ (www.sedarplus.ca).
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/299099