Nexa Resources (NEXA) Surges 6.2%: Is This an Indication of Further Gains?

Core Viewpoint - Nexa Resources S.A. has seen a significant increase in its stock price, attributed to the completion of the sale of its Otavi Project and positive earnings expectations [1][2][3]. Group 1: Stock Performance - Nexa Resources shares rose by 6.2% to $9.4 in the last trading session, with a trading volume higher than average [1]. - The stock has gained 31.1% over the past four weeks, indicating strong market interest [1]. Group 2: Project Sale - The company completed the sale of its Otavi Project in Namibia to Midnab Resources, a subsidiary of Midas Minerals [2]. - JOGMEC, a previous joint venture partner, will receive 49% of the sale proceeds from this transaction [2]. Group 3: Financial Expectations - Nexa Resources is focusing on profitable assets and aims to boost free cash flow while adhering to a disciplined capital allocation strategy [3]. - The company is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 135% [3]. - Revenue projections for the upcoming quarter are estimated at $828.12 million, which is an 11.8% increase compared to the same quarter last year [3]. Group 4: Earnings Estimate Revisions - The consensus EPS estimate for Nexa Resources has been revised 25% higher in the last 30 days, indicating positive sentiment among analysts [5]. - A positive trend in earnings estimate revisions is typically associated with stock price appreciation, suggesting potential for further gains [5]. Group 5: Industry Context - Nexa Resources operates within the Zacks Mining - Miscellaneous industry, which includes other companies like Globe Specialty Metals [6]. - Globe Specialty Metals has seen a decline in its stock price and has a consensus EPS estimate that has remained unchanged, contrasting with Nexa's positive outlook [6][7].