Nexa Resources S.A. ( NEXA Quick Quote NEXA - Free Report) declared that its Atacocha San Gerardo open pit mine in Peru restarted operations after a temporary closure. The mine is expected to run with full capacity within the next two days. The company takes this decision as the Machcan community ended protest activities and road access to the mine has been allowed. Nexa expects to recover the estimated zinc production loss of 0.3 thousand tons (kt) in the coming months. On Mar 18, the company announced the temporary suspension of Atacocha San Gerardo mine production as road access was blocked by the protesters of Machcan community. Mine activities were restricted to critical operations with a minimum workforce to ensure proper maintenance. Atacocha produces around 0.2kt of zinc per week, accounting for less than 3% of Nexa's zinc production. The mine produced 9kt zinc in 2021. For the current year, the mine is expected to produce zinc in the range of 8.5-9.4kt. The midpoint of the guidance is estimated to increase 3% from 2021. Nexa continues to expect current-year zinc production in the band of 287-318kt. The mid-range of the guidance is estimated to decline 5% from 2021 production of 320kt, owing to expected lower grades in Cerro Lindo and the temporary capacity reduction of daily production in Vazante due to heavy rainfalls in the state of Minas Gerais. Nexa is a large-scale, low-cost integrated zinc producer with operating mining and smelting assets in Latin America. Being the fifth largest zinc producer across the globe, the company has an exclusive operating mines portfolio with higher exploration potential and greenfield exploration projects pipeline. The company currently owns and operates five long-life underground mines — three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil. NEXA is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil. Last month, Nexa reported earnings per share of 1 cent in fourth-quarter 2021. The bottom line missed the Zacks Consensus Estimate of 47 cents and plunged 98% year over year. Revenues of $678 million also missed the Zacks Consensus Estimate of $711 million but increased 7% year over year. Price Performance
Nexa’s shares have declined 10% in the past year against the
industry’s growth of 22.3%. Image Source: Zacks Investment Research Zacks Rank & Other Stocks to Consider
Nexa currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some other top-ranked stocks in the basic materials space are The Mosaic Company ( MOS Quick Quote MOS - Free Report) , AdvanSix Inc. ( ASIX Quick Quote ASIX - Free Report) and Allegheny Technologies Incorporated ( ATI Quick Quote ATI - Free Report) , each sporting a Zacks Rank #1, at present.
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Mosaic beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 87.3% in a year. AdvanSix has a projected earnings growth rate of 30.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 25% upward in the past 60 days. AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing once, the average surprise being 23.6%. ASIX has surged 57.3% in a year. Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised upward by 45.6% in the past 60 days. Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 21.3% over a year.