NEXA

U.S. Stock Market Update: U.S. stock futures are up, with the Dow gaining 0.2%, while Booz Allen Hamilton shares fell 2.9% after a downgrade by Goldman Sachs, lowering its price target significantly.

Pre-Market Trading Declines: Several stocks experienced sharp declines in pre-market trading, including Nexa Resources (-32%), Betterware de México (-24%), and Solaris Resources (-22%).

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Tender Offer Results: Nexa Resources announced the expiration of its cash tender offers for its 5.375% senior unsecured notes due 2027 and 6.500% notes due 2028, with approximately 48.72% and 72.23% of the respective principal amounts validly tendered by the expiration date.

Settlement Date and Consideration: The settlement date for the tender offers is expected on April 9, 2025, with eligible holders receiving US$1,015.00 per US$1,000.00 principal amount for the 2027 Notes and US$1,041.25 for the 2028 Notes, along with accrued interest.

Analyst Rating and Price Target: RBC Capital analyst Sam Crittenden has maintained a Hold rating on Nexa Resources SA with a price target of $8.00, while the company's shares closed at $6.19.

Financial Performance: Nexa Resources reported a quarterly revenue of $740.92 million and a GAAP net loss of $98.5 million for the quarter ending December 31, showing an increase in revenue compared to the previous year but a larger net loss.

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Analyst Rating Update: BofA analyst Lawson Winder has reduced the price target for Nexa Resources (NEXA) from $8 to $6.50 and maintains an Underperform rating, following updates to their Q4 results and future operating guidance.

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Earnings Report Overview: Nexa Resources S.A. reported a quarterly loss of $1 per share, significantly worse than the expected loss of $0.35, marking a 385.71% earnings surprise. Despite this, the company achieved revenues of $740.92 million, exceeding estimates by 5.86%.

Market Performance and Outlook: Shares of Nexa Resources have declined by 39% since the start of the year, contrasting with a 4.5% gain in the S&P 500. The company's future performance may depend on management's commentary and revisions to earnings estimates, currently rated as a Zacks Rank #2 (Buy).

Scotiabank's Price Target Adjustment: Scotiabank has reduced its price target for Nexa Resources (NEXA) from $7 to $5, maintaining an Underperform rating due to the company's disappointing Q4 results.

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Analyst Rating and Performance: RBC Capital analyst Sam Crittenden has maintained a Hold rating on Nexa Resources SA with a price target of $10.00, while the stock closed at $7.79. The general consensus among analysts is a Moderate Sell rating with an average price target of $7.81.

Company Financials: Nexa Resources reported a quarterly revenue of $709.48 million for Q3 2024, showing growth from $649.33 million in the previous year, despite incurring a GAAP net loss of $5.15 million compared to a larger loss of $16.24 million last year.

Nexa Resources Update: Nexa Resources SA has completed the sale of the Pukaqaqa Project in Peru to Olympic Precious Metals, a Canadian company focused on copper and gold development.

Impact on Local Communities: The transaction is significant for the mining sector as Olympic Precious Metals aims to contribute positively to local communities while pursuing its mining opportunities.

Earnings Conference Call Overview: Nexa Resources held its Q3 2024 earnings conference call on November 1, 2024, featuring key executives including CEO Ignacio Rosado and CFO José Carlos del Valle, who discussed the company's performance and future outlook.

Forward-Looking Statements: The presentation included forward-looking statements regarding the business, with a reminder for participants to refer to the accompanying disclaimer for conditions surrounding these statements.

Nexa Resources SA Rating: RBC Capital analyst Sam Crittenden maintained a Hold rating on Nexa Resources SA with a price target of $10.00, while the current analyst consensus is a Moderate Sell with an average price target of $8.00.

Cf Industries Holdings Rating: Analyst Andrew Wong from RBC Capital upheld a Buy rating for Cf Industries Holdings with a price target of $95.00, and the consensus suggests a Moderate Buy with an average price target of $86.30, indicating a slight downside from current levels.

Comparison of Nexa Resources and Wheaton Precious Metals: Nexa Resources S.A. (NEXA) is currently rated higher than Wheaton Precious Metals Corp. (WPM) based on Zacks Rank and various valuation metrics, indicating that NEXA may offer better value for investors at this time.

Valuation Metrics Analysis: NEXA has a more favorable forward P/E ratio of 13.54 and a PEG ratio of 0.28 compared to WPM's ratios of 44.77 and 2.30, respectively, contributing to NEXA's stronger Value grade of B versus WPM's F.

Nexa Resources Sells Pukaqaqa Project: Nexa Resources S.A. has agreed to sell the Pukaqaqa Project for $29.3 million as part of its portfolio optimization strategy, with payments structured over several installments and contingent on project milestones.

Focus on Existing Operations: The company continues to prioritize improving performance at existing mines and developing other projects while having previously decided not to advance certain greenfield projects, including Pukaqaqa and Shalipavco.

Earnings Performance: Nexa Resources S.A. reported quarterly earnings of $0.15 per share, missing estimates and reflecting a significant surprise of -16.67%, despite revenues surpassing expectations at $736.31 million.

Market Outlook: The company's stock is currently rated Zacks Rank #3 (Hold), indicating expected performance in line with the market, while the mining industry faces challenges, ranking in the bottom 28% of Zacks industries.

Comparison of Nexa Resources S.A. and Wheaton Precious Metals Corp.:

• Investors are comparing the undervalued stocks of Nexa Resources S.A. (NEXA) and Wheaton Precious Metals Corp. (WPM) based on Zacks Rank, earnings outlook, and valuation metrics like P/E ratio, P/B ratio, and PEG ratio.

Investment Recommendation:

• NEXA is considered a superior value option over WPM due to its strong earnings outlook and better valuation metrics, earning a Value grade of B compared to WPM's F grade.