Nexa (NEXA) Resumes Cerro Lindo Operations, Retains FY23 View
Nexa Resources NEXA announced that operations at its Cerro Lindo mine in Peru resumed following the restoration of road access. Some drainage systems, however, are being fixed.
Nexa halted operations at the mine earlier this month due to unusually heavy rainfall and overflowing rivers from Cyclone Yaku. The heavy rains partly flooded several lower levels of the mine, compromising road access.
Currently, the plant is operating at 17ktpd. The underground mine dewatering process is moving along per the company's plan, with completion expected in 15 days. Cerro Lindo generates about 233 tons of zinc in a day. In 2022, Cerro Lindo produced 84,000 tons of zinc, which was at the middle of the guidance range.
Despite the setback, Nexa reaffirmed the previously provided guidance for 2023. With a total throughput of 6.0-6.5Mt for the mine, annual zinc production is expected between 69 and 92kt over the next three years. Zinc output at the mid-point of the 2023 guidance range is expected to fall 10kt from 2022, owing primarily to lower zinc head average grade.
In the fourth quarter of 2022, Nexa delivered an adjusted loss of 4 cents per share. This compares to earnings of 1 cent per share a year ago. The company posted revenues of $779.78 million for the December-end quarter, up from $677.9 million a year ago.
Price Performance
Nexa shares have declined 34% in the past year compared with the industry's fall of 26.9%.
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Zacks Rank & Stocks to Consider
Nexa currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Olympic Steel ZEUS, Steel Dynamics STLD, and Yamana Gold AUY. ZEUS and STLD currently flaunt a Zacks Rank #1 (Strong Buy), and AUY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Olympic Steel’s fiscal 2023 earnings per share is pegged at $3.50. Earnings estimates have moved 61% north in the past 60 days. ZEUS has a trailing four-quarter earnings surprise of 26.2%, on average. Its shares have gained 41.2% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $14.84 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 11.2%, on average. The company has gained 26.9% in a year.
The Zacks Consensus Estimate for Yamana Gold’s 2023 earnings per share is pegged at 27 cents. Earnings estimates have moved 3.8% north in the past 60 days. AUY shares have gained 7.4% in the past year.
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Nexa Resources S.A. (NEXA) : Free Stock Analysis Report
