10 Most Undervalued Silver Mining Stocks to Buy According to Analysts

5. Nexa Resources S.A. (NYSE:NEXA)

Average Upside Potential: 30.84%

Number of Hedge Fund Holders: 4

Forward P/E ratio: 6.68

Nexa Resources S.A. (NYSE:NEXA), an operator in the global zinc mining and smelting industry, has a broad portfolio that includes six polymetallic mines in Peru and Brazil. The company focuses on sustainable growth through high-return assets, yielding copper, lead, and zinc alongside other by-products. Its main strategic initiatives include the expansion of the Aripuanã project and the integration of the Cerro Pasco mine.

Nexa Resources S.A. (NYSE:NEXA) reported $714 million in adjusted EBITDA, an increase of 79%, for the year ended December 31, 2024. Higher by-product volume and strong zinc prices drove its strong performance. In the fourth quarter, revenue increased by 18% to $741 million compared to the previous year, and adjusted EBITDA reached $197 million. The company’s strong cash flow was due to its ability to control costs, despite the 11% drop in zinc production quarter over quarter.

Furthermore, Nexa Resources S.A.’s (NYSE:NEXA) commitment to improving its precious metal production capabilities was reflected in the Aripuanã mine’s output, which saw a remarkable 114% increase in silver production in 2024. The company also focused on strategic divestments and operational improvement, including the sale of non-operational assets like the Morro Agudo complex and the Pucacaca project.

Moving forward, Nexa Resources S.A. (NYSE:NEXA) predicts further reductions in cash costs as it anticipates sustained strong performance in 2025, mainly from its zinc production. Its entire production capacity will be supported by the successful installation of a fourth tailings filter at Aripuanã. By positioning itself for continued development and efficiency, the company ranks as one of the most undervalued stocks.