Zinc-Linked Stocks Surge as Nexa Jumps 8.22% and Buenaventura Gains 5.43%
Key Facts
- Nexa Resources jumped 8.22% to US$13.16 the sharpest single-session move for the Peru-Brazil miner, signalling a swift re-rating of zinc-exposed Latin American equities
- Buenaventura advanced 5.43% to US$31.86 extending a rally that has delivered a near-80% gain over the past 12 months for the Peruvian precious and base metals group
- Zinc’s main industrial use is galvanising steel and galvanised steel demand depends heavily on construction, infrastructure and automotive output in China, the United States and Brazil
- First-quarter 2026 revenue at Nexa reached about US$888 million beating forecasts and growing strongly year on year, while adjusted EBITDA rose sharply to roughly US$283 million
- Peru, Bolivia and Mexico rank among the world’s major zinc suppliers tying the region’s export earnings to building cycles in North America and Asia and linking local miners to US construction and automotive demand
- Analysts covering Buenaventura currently hold a hold rating with a 12-month price target around US$27.00, slightly below the market price, implying that much of the recovery may already be priced in
Today’s Focus
Zinc-linked Latin American stocks surged on Thursday, with Nexa Resources closing at US$13.16, an 8.22% leap, and Buenaventura finishing at US$31.86, up 5.43%. The gains were fuelled by a combination of recovering galvanised-steel demand, bullish first-quarter numbers from Nexa, and a broader investor appetite for cyclical metal producers. Nexa reported first-quarter revenue of about US$888 million and adjusted EBITDA of roughly US$283 million, beating top-line forecasts even though per-share earnings of US$0.67 missed estimates by more than 10%. For foreign investors, the two New York–listed names provide liquid dollar-denominated exposure to Peru’s mining sector and to Latin American zinc supply, without needing to navigate local equity markets in Lima, Mexico City or La Paz.
Both companies’ balance sheets have improved, with Nexa cutting net debt and Buenaventura reducing leverage, giving them more flexibility to invest in sustaining capital and new projects. Analysts still flag layered risks, including local politics, community relations and environmental permitting in the Andes, which can disrupt production even when zinc prices are rising.
What matters today. The day’s jump in Nexa and Buenaventura reflects a market bet that recovering construction-linked demand for galvanised steel has room to run, though analysts’ price targets suggest the rally may be reaching fair value.
01 The session in one read
Zinc’s Latin American equities proxies delivered one of their strongest single-session performances of 2026 on Thursday as investors bet that a recovery in galvanised-steel demand has further to run. Nexa Resources, the Peru-Brazil integrated zinc producer, closed at US$13.16, a gain of 8.22% that marks a sharp re-rating of the stock on a day when trading volumes signalled broad-based buying. Buenaventura, the Peruvian precious and base metals group, advanced 5.43% to US$31.86, extending a 12-month run that has seen its New York–listed shares gain close to 80% and rank among the strongest performers in its global mining peer group.
The surge in Nexa and Buenaventura shares captures genuine improvement in the zinc demand picture, with steel producers ordering more zinc for construction and infrastructure projects across China, the US and Brazil. Nexa’s first-quarter revenue of about US$888 million and sharply higher adjusted EBITDA of roughly US$283 million lend fundamental weight to the rally, yet the earnings miss of more than 10% is a reminder that operational challenges such as lower ore grades and cost inflation in Peru keep a ceiling on how much of the metal price recovery flows to shareholders. The variable to watch is Chinese galvanised-steel exports and domestic building completions, which remain the single most important swing factor for zinc pricing and therefore for the earnings power of Andean miners.
02 The board
The day’s price board told a clear story of renewed conviction in the zinc story. Nexa’s US$13.16 close, an 8.22% jump, pointed to heavy demand for cyclical metal exposure, while Buenaventura’s US$31.86 finish and 5.43% gain showed that the bid extended to diversified Andean names with meaningful base-metal revenue. The two stocks moved in tandem but at different magnitudes, reflecting Nexa’s heavier operational gearing to zinc prices and Buenaventura’s broader mix of gold, silver and industrial metals.
| Asset | Level | Change |
|---|---|---|
| Nexa Resources | US$13.16 | +8.22% |
| Buenaventura | US$31.86 | +5.43% |
Source: RT close, 2026-07-30. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
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Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 186,502.64 | +0.54% | +21.85% | 185,500.88 | 168,310 | 167,142 | — |
| IPSA | 11,322.60 | -0.17% | — | 11,342.39 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,570.30 | -1.01% | +12.17% | 64,216.98 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,079,779 | -0.16% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,567.27 | -0.81% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 58,641.32 | -0.25% | — | — | — | — | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
03 What moved it
The driver was a convergence of better macro signals for zinc and company-level numbers that validated the thesis. Nexa’s first-quarter 2026 revenue of about US$888 million beat analysts’ forecasts, and adjusted EBITDA surged to roughly US$283 million, lifted by stronger commodity prices and solid output. Zinc’s chief industrial use is as a protective coating for steel, and steelmakers in China, the United States and Brazil have increased zinc orders this year as construction, infrastructure and automotive demand pick up from a sluggish 2025.
Zinc supply has also tightened. Peru, Bolivia and Mexico account for a large share of global mine supply, and production at some Andean operations has been constrained by lower ore grades and cost inflation, while Bolivian output from large-scale projects and thousands of small cooperatives faces its own logistical hurdles. That tighter supply picture, combined with recovering demand, has given analysts covering Nexa a reason to describe a more supportive pricing backdrop compared with the previous year.
04 The Latin American read
For Latin America’s major zinc producers, Thursday’s rally is a reminder of how deeply their fortunes are tied to construction cycles abroad. Peru relies heavily on metal exports, and zinc is one of its top earners, making local miners a direct proxy for the country’s external accounts. Mexico’s zinc industry is wired into US construction and automotive demand through galvanised-steel supply chains, while Bolivia’s zinc sales feed smelters serving steel producers in neighbouring countries and in Asia.
That means the same forces lifting zinc-linked shares today—Chinese building completions, US residential and commercial construction, and Brazilian infrastructure spending—are also strengthening Peru’s trade balance and supporting regional currencies. For a foreign investor sitting outside Lima or Mexico City, the New York–listed shares of Nexa and Buenaventura provide the most liquid way to express that view.
05 The names to watch
Nexa Resources operates zinc, copper and lead mines and smelters in Peru and Brazil, making it one of Latin America’s largest integrated zinc producers. Its model spans underground mines, concentrators and refining operations, so it sells refined zinc metal directly into steel and manufacturing supply chains rather than relying on semi-processed ore. That integration amplifies its sensitivity to zinc prices, which is why the stock’s 8.22% move was sharper than Buenaventura’s.
Compañía de Minas Buenaventura holds stakes in several large Peruvian mines and produces silver, gold and zinc across the country’s main mining regions. While best known for precious metals, its industrial-metal exposure means it trades partly as a zinc proxy, particularly when base-metal sentiment is running hot. Analysts currently hold a hold rating on Buenaventura with a 12-month price target around US$27.00, slightly below the market price, while Nexa’s consensus targets cluster around the low teens, close to where the stock now trades.
06 The outlook
The outlook for Latin America’s zinc names balances improving zinc market fundamentals against a set of familiar Andean risks. Equity research notes that Nexa has been reducing net debt and extending maturities, improving leverage ratios as higher zinc-linked earnings flow through. Buenaventura has also strengthened its balance sheet by cutting debt, boosting its flexibility to invest in sustaining capital and new projects in Peru. On the demand side, any acceleration in Chinese property completions or state-backed infrastructure spending would provide a further tailwind for zinc prices. The counterweight is that Peruvian and Mexican policy debates over mining royalties and environmental standards keep a risk premium embedded in regional mining stocks, tempering upside even when earnings are rising.
07 What to watch
- Chinese galvanised-steel exports: The single biggest swing factor for zinc pricing; any sustained pickup in building completions or infrastructure spending in China would strengthen demand for zinc-coated steel and lift Andean miners’ earnings.
- Nexa’s operational recovery: Investors will scrutinise whether Nexa can overcome lower ore grades and cost inflation at its Peruvian underground mines to capture the full benefit of firmer zinc prices in the second half of 2026.
- Buenaventura’s capital allocation: With the balance sheet strengthened and debt reduced, Buenaventura’s decisions on sustaining capital and new project investment will determine whether the near-80% 12-month rally can extend.
- Mining royalty debates in Peru and Mexico: Any shift in tax or environmental policy could alter the cash-flow outlook for regional miners, so foreign investors should monitor legislative agendas in Lima and Mexico City.
Frequently Asked Questions
Why did Nexa and Buenaventura shares jump?
Zinc demand for galvanised steel is improving in China, the US and Brazil, and Nexa’s first-quarter 2026 revenue of about US$888 million beat forecasts, sparking a broad bid for Latin American zinc-exposed equities.
What exactly does Nexa Resources do?
Nexa operates zinc, copper and lead mines and smelters in Peru and Brazil, selling refined zinc metal into steel and construction supply chains rather than just semi-processed ore.
Is Buenaventura really a zinc stock?
Buenaventura is primarily known for gold and silver, but it has meaningful zinc exposure from its Peruvian mine stakes, so it often trades as a proxy for Andean mining risk and industrial-metal sentiment.
What are the main risks for these Latin American miners?
Local politics, community relations and environmental permitting in Peru and Mexico can disrupt production even when zinc prices are rising, and cost inflation plus lower ore grades are squeezing margins at some operations.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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