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Nexa Resources shifts from zinc to diversified metals, but profitability risks remain amid high costs and price reliance.

Company Fundamentals
20 Jul 2026
Seeking Alpha
View Source
Neutral
Nexa Resources shifts from zinc to diversified metals, but profitability risks remain amid high costs and price reliance.

Nexa Resources is transforming from a zinc-focused producer to a diversified metals miner, with silver, copper, lead, and gold increasingly contributing to its earnings. Recent EBITDA improvements are largely due to high by-product metal prices, raising concerns about sustainability if these prices fall. The Aripuana mine is expanding but has yet to prove stable, low-cost production and free cash flow. Despite better profitability, Nexa faces challenges with high capital expenditures, weak free cash flow, and leverage risks if commodity prices normalize, limiting shareholder value growth.

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