Zinc Miner Nexa Falls 5% as Markets Slump | Zinc Wrap, Nov 5

On Thursday, November 5, 2026, zinc miners faced a challenging day as global markets experienced a significant downturn. Nexa Resources, a prominent zinc miner operating in Peru and Brazil, saw its stock price drop by 4.96% to US$11.31, while Buenaventura, which also mines zinc but has a diverse portfolio including gold and silver, fell 1.63% to US$28.33.

The primary driver behind the market slump was the broader economic fear, as evidenced by the S&P 500's 4.36% decline and the VIX index's sharp increase of 69.66%. Investors, seeking to protect their portfolios, began selling cyclical shares, including miners like Nexa, regardless of the specific news from the mines. The gap between the two companies is noteworthy, with Nexa heavily reliant on zinc and smelting margins, while Buenaventura benefits from precious metals that often attract buyers during market turbulence.

The decline in Nexa's stock price has been substantial, trading 32.4% below its 12-month high of US$16.72, while Buenaventura is down 35.1% from its 12-month high of US$43.67. Historical data suggests that when Nexa experiences such a sharp 20-session decline, it has recovered in 43% of cases, with a median change of -1.9%. However, this historical trend should not be considered a definitive forecast.

The article emphasizes that regional miners like Nexa and Buenaventura are particularly sensitive to global fear factors, such as the S&P 500's decline and the VIX's surge. The upcoming US jobs report and the VIX's return to a lower level are seen as crucial tests for the market sentiment towards zinc demand. The pending takeover of Nexa by Boliden, scheduled for the first quarter of 2027, is also a factor that could influence the stock's performance in the near term.