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Nexa (NEXA) Resumes Operations at Vazante, FY22 Guidance Intact
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Nexa Resources (NEXA - Free Report) recently announced that its Vazante operation is now working at full capacity following the underground mine dewatering. It is worth mentioning that daily production had to be cut down to 60% of capacity from mid-January 2022 to February on account of partial flooding of the underground operation due to heavy rainfall levels in the state of Minas Gerais. The company witnessed improving utilization rates in March, which averaged 70%. During this period, Nexa planned the replacement of its main mill, trunnion, and gearbox. The current throughput of Vazante is 4.6-kilo tons per day.
Despite the setback, Nexa affirmed the Vazante mine's zinc production guidance at 118-127kt for 2022. It had earlier provided 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.
Nexa is a large-scale, low-cost integrated zinc producer with operating mining and smelting assets in Latin America. The company is among the top five zinc producers worldwide. It 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. The start-up is scheduled for the third quarter of 2022.
Nexa generated $2.6 billion of consolidated net revenues in 2021, which marked a 34% improvement year on year courtesy of higher prices and volumes. Adjusted EBITDA surged 75% year on year to a record-high of $704 million.
Robust zinc prices this year will boost the company's results. Zinc prices skyrocketed to above $4,400 per ton in April, close to the record in November 2006. This has been fueled by concerns of further supply disruptions due to prolonged high energy prices. Mounting sanctions on Russia for invading Ukraine triggered an international energy crunch, which, in turn, led to several smelters halting or reducing zinc metal production. Meanwhile, strong demand from the steel sector will continue to boost prices in the coming months.
Price Performance
Image Source: Zacks Investment Research
Nexa's shares have declined 3% in the past year against the industry's growth of 14.7%.
Some other top-ranked stocks in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 33.3% in the past 60 days.
Mosaic's earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 116% in a year. It currently sports a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX's current-year earnings has been revised upward by 58% in the past 60 days.
AdvanSix's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 23.6%. ASIX has soared 89% in a year. The company flaunts a Zacks Rank #1.
Allegheny, currently carrying a Zacks Rank #2 (Buy), 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 45.6% upward in the past 60 days.
Allegheny's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 24% over a year.
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Nexa (NEXA) Resumes Operations at Vazante, FY22 Guidance Intact
Nexa Resources (NEXA - Free Report) recently announced that its Vazante operation is now working at full capacity following the underground mine dewatering.
It is worth mentioning that daily production had to be cut down to 60% of capacity from mid-January 2022 to February on account of partial flooding of the underground operation due to heavy rainfall levels in the state of Minas Gerais. The company witnessed improving utilization rates in March, which averaged 70%. During this period, Nexa planned the replacement of its main mill, trunnion, and gearbox. The current throughput of Vazante is 4.6-kilo tons per day.
Despite the setback, Nexa affirmed the Vazante mine's zinc production guidance at 118-127kt for 2022. It had earlier provided 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.
Nexa is a large-scale, low-cost integrated zinc producer with operating mining and smelting assets in Latin America. The company is among the top five zinc producers worldwide. It 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. The start-up is scheduled for the third quarter of 2022.
Nexa generated $2.6 billion of consolidated net revenues in 2021, which marked a 34% improvement year on year courtesy of higher prices and volumes. Adjusted EBITDA surged 75% year on year to a record-high of $704 million.
Robust zinc prices this year will boost the company's results. Zinc prices skyrocketed to above $4,400 per ton in April, close to the record in November 2006. This has been fueled by concerns of further supply disruptions due to prolonged high energy prices. Mounting sanctions on Russia for invading Ukraine triggered an international energy crunch, which, in turn, led to several smelters halting or reducing zinc metal production. Meanwhile, strong demand from the steel sector will continue to boost prices in the coming months.
Price Performance
Image Source: Zacks Investment Research
Nexa's shares have declined 3% in the past year against the industry's growth of 14.7%.
Zacks Rank & Other Stocks to Consider
Nexa currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Some other top-ranked stocks in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 33.3% in the past 60 days.
Mosaic's earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 116% in a year. It currently sports a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX's current-year earnings has been revised upward by 58% in the past 60 days.
AdvanSix's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 23.6%. ASIX has soared 89% in a year. The company flaunts a Zacks Rank #1.
Allegheny, currently carrying a Zacks Rank #2 (Buy), 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 45.6% upward in the past 60 days.
Allegheny's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 24% over a year.