Nexa Resources announces senior notes offering

LUXEMBOURG - Nexa Resources S.A. (NYSE:NEXA), a significant player in the zinc production industry, has revealed plans to issue new senior unsecured notes, with the backing of guarantees from Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A.

The company intends to direct the net proceeds from this offering primarily to fund a cash tender offer for its existing notes due in 2027 and 2028. These notes are part of tender offers announced today, with any remaining funds slated for general corporate purposes, including liability management transactions.

The notes represent unsecured obligations of Nexa and will receive full and unconditional guarantees by the Guarantors. These guarantees will be on par with all other unsecured and unsubordinated debt obligations of the Guarantors.

Nexa, with a history spanning over 65 years, is a large-scale, low-cost integrated zinc producer operating in Latin America. The company oversees five long-life mines, with a sixth in the process of ramping up, and three smelters, including the largest in the Americas located in Cajamarquilla, Peru.

This news article is based on a press release statement from Nexa Resources S.A.

Nexa Resources S.A. (NYSE:NEXA) has recently made headlines with its strategic financial maneuver to issue new senior unsecured notes. As investors and market observers evaluate the implications of this move, a closer look at Nexa's financial health and market performance through InvestingPro data and tips can provide deeper insights.

From a financial standpoint, Nexa Resources operates with a notable market capitalization of 948.26 million USD, reflecting its significant presence in the zinc production industry. However, the company's P/E ratio stands at -3.11, indicating that it is currently not profitable. This is further underscored by the adjusted P/E ratio for the last twelve months as of Q4 2023, which is at -5.01. These figures align with an InvestingPro Tip highlighting that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months.

Despite the profitability challenges, Nexa pays a significant dividend to shareholders, boasting a high dividend yield of 7.26%. This is an attractive aspect for income-focused investors, especially considering the dividend growth of 56.96% in the last twelve months as of Q4 2023. Nonetheless, the company's revenue has seen a decline, with a -15.19% change in the last twelve months as of Q4 2023.

An InvestingPro Tip points out that Nexa's stock generally trades with low price volatility, which can be appealing to investors seeking stability. However, it's worth noting that other tips from InvestingPro suggest the stock price movements are quite volatile, which could be a factor of concern for potential investors. For those interested in exploring further, there are additional InvestingPro Tips available for Nexa, which can be accessed through the InvestingPro platform.

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For investors considering a deeper analysis or looking to make informed decisions regarding Nexa Resources, the InvestingPro platform offers a wealth of tips and metrics. Use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to the full suite of insights, including the 9 additional InvestingPro Tips for Nexa Resources.

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