Nexa Closes Otavi Project Divestment, Focuses on Core Assets

Nexa Resources S.A. NEXA announced that it has completed the previously disclosed sale of its Otavi Project in Namibia to Midnab Resources (Pty) Ltd., a wholly owned subsidiary of Midas Minerals Ltd. 

The transaction was completed on Dec. 22, 2025. It included the transfer of 10 Exclusive Prospecting Licenses (EPLs) from the Otavi and Namibia North projects from Nexa’s local subsidiary, Votorantim Metals Namibia (Pty) Ltd., to Midnab.  

On completion, all related rights, titles and interests were formally conveyed to the purchaser after all required conditions were fulfilled. The 10 EPLs represent a substantial exploration land package located within the Damara Belt of northern Namibia, a well-known and highly prospective geological corridor for copper mineralization that continues to draw significant exploration activity. 

The Otavi Project was previously held through a joint venture between Nexa Recursos Minerais S.A. and Japan’s state-owned Japan Organization for Metals and Energy Security (“JOGMEC”), which is entitled to 49% of the sale proceeds. Nexa earlier announced that the total consideration consists of a purchase price of $3 million payable at completion, up to $7 million in contingent milestone payments, and the retention by Nexa of royalty rights on any future project advancement. 

Nexa's completion of the sale supports its portfolio optimization strategy by sharpening its focus on higher-return assets, improving free cash flow and maintaining disciplined capital allocation. The company added that despite divesting the Otavi licenses, Namibia remains a strategic priority for future copper exploration as part of its long-term growth plans. 

Shares of NEXA are up 88.5% in the past six months compared with the industry’s 19.6% rise.  

NEXA’s Zacks Rank & Key Picks

NEXA currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Kinross Gold Corporation KGC, Fortuna Mining Corp. FSM and Equinox Gold Corp. EQX.  

At present, KGC sports a Zacks Rank #1 (Strong Buy), while FSM and EQX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.67 per share, indicating a rise of 145.59%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 17.37%. KGC’s shares have gained 212.8% over the past year. 

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pinned at 76 cents per share, indicating a 65.22% year-over-year increase. Its shares have surged 133.5% over the past year. 

The Zacks Consensus Estimate for EQX’s current-year earnings stands at 54 cents per share, implying a 170% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average earnings surprise being 87%. 

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This article originally published on Zacks Investment Research (zacks.com).

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