Nexa Resources: The Zinc Upswing Is Not Fully Captured Yet

Nexa Resources S.A. is rated a buy, driven by robust financials, undervaluation, and strong zinc, copper, and silver price outlooks. NEXA's expansion projects—Aripuana tailings filter and Cerro Pasco integration—are advancing, expected to add $100M–$140M in annual cash flow upon completion. The company is rapidly deleveraging, targeting a debt/EBITDA ratio below 1.8 by 2026, while maintaining high liquidity and responsible capital allocation. Trading at a forward P/E of 4.78 and EV/EBITDA of 3.15, NEXA remains significantly discounted versus peers, despite favorable commodity cycles and operational improvements.

Nexa Resources S.A. ( NEXA ) is one of the largest zinc mining and smelting operations in the world, also engaged in other metal production, mainly copper and silver. The company is based in Luxembourg, but all of its