Stock Markets February 6, 2026

Nexa Resources Posts Robust 2025 Operations, Projects Rising Zinc Output Through 2028

Company reports lower-than-expected mining cash costs and plans higher capex for 2026 to support production growth

By Avery Klein NEXA
Nexa Resources Posts Robust 2025 Operations, Projects Rising Zinc Output Through 2028
NEXA

Nexa Resources saw its shares climb after reporting that 2025 operational targets were met across metals, delivering 316,000 tonnes of zinc and a consolidated mining C1 cash cost roughly 48% below guidance at negative $0.30 per pound. The smelting business matched metal sales guidance with 567,000 tonnes, aided by a record year at the Cajamarquilla plant. Management forecasts zinc production growth of about 6% in 2026 and 8% in 2027, with stabilization in 2028, and plans $381 million of capital spending next year.

Key Points

  • Nexa met its consolidated mining production guidance for 2025, producing 316,000 tonnes of zinc - sectors affected: Mining, Materials, Commodities.
  • Consolidated mining C1 cash cost finished about 48% below guidance, reaching negative $0.30 per pound, indicating strong cost performance - sectors affected: Mining, Industrials.
  • Company expects zinc production to rise ~6% in 2026 and ~8% in 2027 with stabilization in 2028; 2026 capex planned at $381 million, up $34 million versus 2025 - sectors affected: Mining, Capital Goods

Nexa Resources SA's shares rose 3.4% on Friday after the miner published operational results showing it met consolidated mining production guidance for 2025 and set out an optimistic production trajectory through 2028.

The company reported zinc output of 316,000 tonnes for 2025. Cost performance was noteworthy: consolidated mining C1 cash cost ended approximately 48% below the company's annual guidance, equating to negative $0.30 per pound. That reading indicates mining cash costs materially outperformed management's expectation for the year.

On the smelting side, Nexa recorded metal sales of 567,000 tonnes, in line with its stated guidance. The Cajamarquilla smelter delivered a record annual production result, a performance that the company said helped mitigate operational headwinds at its Brazilian facilities.

Looking ahead, Nexa outlined production growth targets for zinc: an increase of roughly 6% in 2026, driven mainly by higher output at the Aripuanã, Atacocha and Vazante mines; further growth of about 8% in 2027; and a stabilization of production in 2028. Management also expects metal sales volumes to rise by around 3% in 2026 compared with 2025, with modest incremental growth continuing through 2027 and 2028.

Capital allocation for 2026 was also disclosed. The company plans $381 million of capital expenditures next year, an increase of $34 million from 2025 levels. The incremental spend is earmarked for mine development, sustaining capital and health, safety and environmental initiatives.

Nexa is scheduled to publish its complete fourth-quarter and full-year 2025 financial statements on February 26, 2026.

These operational results and the multi-year production guidance framed the company's near-term outlook and underpinned the positive market reaction. The combination of stronger-than-expected mining cost performance, record smelter output at Cajamarquilla and targeted capex to support mine development were highlighted as central elements of the update.


Contextual note: The information above is limited to the operational and planning details Nexa provided. No additional financial results beyond the scheduled release date were included.

Risks

  • Operational challenges at Brazilian facilities were noted and required offset from other assets such as the Cajamarquilla smelter - impacted sectors: Mining, Industrials.
  • Execution risk tied to planned production increases at Aripuanã, Atacocha and Vazante could affect output targets if development or operational issues arise - impacted sectors: Mining, Capital Goods.
  • Higher capital expenditure in 2026 increases near-term cash deployment and execution risk on mine development and sustaining projects - impacted sectors: Mining, Financial Markets

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