domingo, 24 de novembro de 2024
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Mais
    InícioNotíciasNexa's Zinc Business Has Room To Grow, But RBC Says Sentiment Remains...

    Nexa’s Zinc Business Has Room To Grow, But RBC Says Sentiment Remains Negative

    Publicado em

    Although Nexa Resources SA’s (NYSE:NEXA) has an integrated and low cost zinc business, with room for growth and competitive advantages in South America, investor sentiment towards zinc is negative and there is low trading liquidity, according to RBC Capital Markets.

    The Analyst
    RBC’s Sam Crittenden initiated coverage of Nexa Resources with a Sector Perform rating and a price target of $12.

    The Thesis
    As Nexa Resources operates all three zinc smelters in South America, ample concentrate supply and lower freight costs allow the company to command premium prices for refined zinc products, Crittenden said in the note.

    The analyst added that fluctuations in treatment charges are negatively correlated to zinc prices, which smooths out any earnings volatility.

    Nexa Resources is constructing the Aripuana project, which is estimated to provide 60kt of annual zinc production by 2021, in addition to the current run rate of 370kt.

    Since the zinc business has low cost operations and Nexa Resources’ balance sheet is robust, the company is well positioned to build Aripuana, while also returning capital to shareholders, Crittenden mentioned.

    “The main reasons for our Sector Perform rating are the negative sentiment towards zinc and limited trading liquidity that could make it hard for Nexa to find incremental buyers and outperform base metals peers,” the analyst wrote.

    Price Action
    Shares of Nexa Resources traded lower by 1.51% to $9.06 at time of publication.

    Fonte: Benzinga

    São Paulo
    nuvens quebradas
    17.8 ° C
    18.4 °
    17.2 °
    80 %
    5.1kmh
    75 %
    seg
    27 °
    ter
    31 °
    qua
    33 °
    qui
    35 °
    sex
    28 °

    Notícias recentes

    Libero Copper (TSXV:LBC) Advances 14,000-Metre Drill Program to Expand Mocoa Copper-Molybdenum Deposit in Colombia

    (adsbygoogle = window.adsbygoogle || ).push({}); Libero Copper (TSXV:LBC) recently announced details of its...

    Bahia ganha novo Centro Integrado de Estudos Geológicos em Morro do Chapéu

    As novas instalações do Centro Integrado de Estudos Geológicos de Morro do Chapéu (BA)...

    Solaris Resources (TSX:SLS) Announces Emigration Completion Plan, Leadership Changes, and Spin-Out Initiative

    (adsbygoogle = window.adsbygoogle || ).push({}); Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has announced final steps to...

    leia mais

    Libero Copper (TSXV:LBC) Advances 14,000-Metre Drill Program to Expand Mocoa Copper-Molybdenum Deposit in Colombia

    (adsbygoogle = window.adsbygoogle || ).push({}); Libero Copper (TSXV:LBC) recently announced details of its...

    Bahia ganha novo Centro Integrado de Estudos Geológicos em Morro do Chapéu

    As novas instalações do Centro Integrado de Estudos Geológicos de Morro do Chapéu (BA)...

    Solaris Resources (TSX:SLS) Announces Emigration Completion Plan, Leadership Changes, and Spin-Out Initiative

    (adsbygoogle = window.adsbygoogle || ).push({}); Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has announced final steps to...