Nexa ResourcesGold Royalty

Nexa Resources vs Gold Royalty

On this page, Nexa Resources S.A. and Gold Royalty Corp. are compared as stock peers. This page examines business models, financial performance, and market context in a neutral, accessible way, highli...

Which Baskets Do They Appear In?

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Global Small-Caps (Brazilian Economy Linked) Basket

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Global Income Stocks | Brazil Operations Focus

Global Income Stocks | Brazil Operations Focus

For Brazilians seeking income and diversification, this theme provides a way to tap into the country’s growth potential with potentially reduced local market risk. This basket is composed of US and EU-listed multinational companies that pay dividends and have significant operations in Brazil.

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Brazilian Stocks

Brazilian Stocks

Ready to invest in Latin America's largest economy? These carefully selected Brazilian companies represent the backbone of a resource-rich nation that supplies essential commodities to the world. Each stock was chosen by professional analysts for its market leadership and growth potential.

Published: June 18, 2025

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Investment Analysis

Pros

  • Nexa Resources is a low-cost integrated zinc producer with diversified operations including copper, silver, and gold byproducts.
  • The company has a significant smelting segment that generates maximum revenue, indicating vertical integration benefits.
  • Recent operational updates show that Nexa has achieved its 2024 production and cost guidance while exceeding copper production targets.

Considerations

  • Nexa Resources reported a net loss of $16.23 million with a negative earnings per share and net profit margin slightly below zero.
  • The company has a high debt-to-equity ratio of 146.1%, suggesting elevated leverage and potential financial risk.
  • Nexa’s share price has declined approximately 30% over the past year and around 70% since its IPO, reflecting historical volatility and bearish sentiment.

Pros

  • Gold Royalty Corp offers exposure to gold through royalty and streaming agreements, which typically have lower operational risks than mining companies.
  • The company's business model benefits from diversified royalty streams across multiple jurisdictions, reducing concentration risk.
  • Gold Royalty has shown consistent growth in its royalty portfolio, supporting stable cash flows and potential expansion opportunities.

Considerations

  • Gold Royalty's revenue and profitability are directly sensitive to fluctuations in gold prices, creating exposure to macroeconomic and commodity cycles.
  • As a royalty company, Gold Royalty has limited control over operational execution and mine productivity of the underlying assets.
  • Competitive pressure in the royalty and streaming sector could impact future deal terms and royalty acquisition growth.

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