Nexa Resources Resumes Cajamarquilla Smelter Operations, Minimal Impact Expected
Summary
Nexa Resources announced the gradual resumption of operations at its Cajamarquilla zinc smelter in Peru following a recent fire, with full recovery expected by mid-June and no change to 2026 sales guidance.
Key Events
-
Cajamarquilla Smelter Resumes Operations
Nexa Resources is gradually restarting its Cajamarquilla zinc smelter in Peru, with electrolysis lines fully operational and one casting line back in production.
-
Full Operational Recovery Expected by Mid-June
The company anticipates restarting the second casting line within days and the final casting line by mid-June.
-
Minor Production Impact, Guidance Unchanged
Nexa estimates a Q2 2026 refined zinc production impact of approximately 7kt (2% of annual production), which is expected to be recovered in the second half of 2026. The 2026 sales guidance remains unchanged, with no material financial impact currently anticipated.
Analysis
This filing provides a positive update on the Cajamarquilla smelter, which had temporarily suspended operations due to a fire on May 13. The rapid resumption of production, coupled with the company's assessment of a minor and recoverable production impact and unchanged sales guidance, significantly mitigates the financial and operational concerns raised by the initial incident. This indicates a quicker and less severe disruption than initially feared.
At the time of this filing, NEXA was trading at $15.14 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2B. The 52-week trading range was $4.44 to $16.89. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.