Nexa Resources Provides Update on Atacocha Mine Operation
Rhea-AI Summary
Positive
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Negative
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Market Reaction
Following this news, NEXA has declined 4.46%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $12.42. This price movement has removed approximately $80M from the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
NEXA gained 6.86% while peers were mixed: SGML +10.5%, UAMY +9.7%, CRML -9.15%, SLI -2.01%, USAS +0.73%, indicating a stock-specific move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 22 | Asset sale | Positive | +1.1% | Sale of Otavi and Namibia North EPLs to Midnab Resources. |
| Oct 30 | Earnings update | Positive | -2.1% | Strong 3Q25 net income and Adjusted EBITDA with higher revenues. |
| Aug 19 | Operations resumed | Positive | -0.8% | Full resumption of Cerro Pasco Complex after protest-related disruption. |
| Aug 12 | Operational disruption | Negative | -0.4% | Partial suspension at Atacocha and El Porvenir due to illegal blockades. |
| Jul 31 | Earnings update | Positive | -3.5% | Strong 2Q25 results with higher Adjusted EBITDA and bond issuance. |
Stock has sometimes declined on strong earnings updates, while asset sales and operational resolutions have seen more aligned or modest positive reactions.
Over the last six months, Nexa has combined portfolio optimization, solid earnings, and operational challenges. The Otavi project sale on Dec 22, 2025 aligned with its strategy to prioritize return-generating assets and was followed by a modest +1.14% move. Strong 2Q25 and 3Q25 results, with Adjusted EBITDA of US$161M and US$186M respectively, saw share price declines, suggesting a tendency to sell on good earnings. Community-related disruptions at the Cerro Pasco Complex in August 2025, involving about 1.2kt weekly zinc production, led to limited negative reactions even as guidance was maintained.
Market Pulse Summary
This announcement details a temporary suspension at the Atacocha San Gerardo open pit mine due to community road blockades. The mine produces about 0.2kt of zinc per week and less than 3% of Nexa’s total zinc output, indicating a constrained operational impact. Recent history shows similar community-related disruptions at the Cerro Pasco Complex. Investors may focus on the duration of the suspension, progress in community dialogue, and any updates to production guidance or future operational stability.
AI-generated analysis. Not financial advice.
Luxembourg, Luxembourg--(Newsfile Corp. - January 21, 2026) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources", "Nexa" or the "Company") informs that production at the Atacocha San Gerardo open pit mine is temporarily suspended.
The Joraoniyoc 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
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. Nexa currently owns and operates five polymetallic mines - four long-life underground (two in the Central Andes region of Peru and two in Brazil, in the state of Minas Gerais and Mato Grosso), and one open-pit in Peru. Nexa also owns and operates three smelters: two in Minas Gerais, Brazil (Três Marias and Juiz de Fora), and one in Lima, Peru (Cajamarquilla), which is the largest 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/281138
