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NEM vs. AEM: Which Gold Mining Stock Should You Invest in Now?
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Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) are two prominent players in the gold mining space with global operations and diversified portfolios. With gold prices soaring, driven by global economic uncertainties and trade tensions, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have zoomed roughly 30% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on Tuesday as the U.S. dollar tumbled amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates.
Let’s dive deep and closely compare the fundamentals of these two mining giants to determine which one is a better investment now.
The Case for Newmont
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Panel Caves in Australia. These projects should expand production capacity and extend mine life, driving revenues and profits.
The acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. NEM has achieved $500 million in annual run-rate synergies, following the Newcrest buyout.
Newmont also remains committed to divesting non-core businesses as it shifts its strategic focus to Tier 1 assets. NEM’s attributable gold production rose around 9% year over year in the fourth quarter on strong performance from its managed Tier 1 portfolio. The company, in March 2025, completed the divestment of three non-core assets — the Musselwhite and Eleonore operations in Canada and the Cripple Creek & Victor ("CC&V") operation in Colorado. The sale of these three additional non-core assets resulted in total after-tax cash proceeds of $1.7 billion before closing adjustments. Furthermore, NEM completed its non-core divestiture program last month with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada, generating total after-tax cash proceeds of roughly $850 million before closing adjustments. Total gross proceeds from disclosed divestitures are expected to reach $4.3 billion, including $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
Newmont has a strong liquidity position and generates substantial cash flows, which allows it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter of 2025, Newmont had liquidity of $8.8 billion, including cash and cash equivalents of around $4.7 billion. Its operating cash flow from continuing operations soared roughly 162% year over year to around $2 billion in the first quarter. NEM also generated a record free cash flow of $1.2 billion in the quarter.
NEM delivered $1 billion to its shareholders through dividends and share repurchases and reduced debt by $1 billion since the beginning of 2025. Its long-term debt-to-capitalization is around 20%. NEM offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 24% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
The Case for Agnico Eagle
Agnico Eagle is focused on executing projects that are expected to provide additional growth in production and cash flows. It is advancing its key value drivers and pipeline projects, including the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas. The Hope Bay Project, with proven and probable mineral reserves of 3.4 million ounces, is expected to play a significant role in generating cash flow in the coming years. The processing plant expansion at Meliadine was completed and commissioned in the second half of 2024, with mill capacity expected to increase to roughly 6,250 tons per day in 2025.
The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer. The integrated entity now has an extensive pipeline of development and exploration projects to drive sustainable growth. It also has the financial flexibility to fund a strong pipeline of growth projects.
AEM has a strong liquidity position and generates substantial cash flows, which allow it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Its operating cash flow jumped roughly 33% year over year to record $1,044 million in the first quarter. AEM also generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and strong operational results. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. Its long-term debt-to-capitalization is just around 5%.
AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. AEM offers a dividend yield of 1.4% at the current stock price. It has a five-year annualized dividend growth rate of 10.3%. AEM has a payout ratio of 32%.
Price Performance and Valuation of NEM & AEM
Year to date, NEM stock has risen 46.7%, while AEM stock has racked up a gain of 52.3% compared with the Zacks Mining – Gold industry’s increase of 44.8%.
Image Source: Zacks Investment Research
NEM is currently trading at a forward 12-month earnings multiple of 13.04, lower than its five-year median. This represents a roughly 11.4% discount when stacked up with the industry average of 14.72X.
Image Source: Zacks Investment Research
Agnico Eagle is trading at a premium to Newmont. The AEM stock is currently trading at a forward 12-month earnings multiple of 19.9, lower than its five-year median and above the industry.
Image Source: Zacks Investment Research
How Do Zacks Consensus Estimate Compare for NEM & AEM?
The Zacks Consensus Estimate for NEM’s 2025 sales and EPS implies a year-over-year rise of 0.1% and 14.9%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for AEM’s 2025 sales and EPS implies year-over-year growth of 20.6% and 44.4%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
NEM or AEM: Which is a Better Pick?
Both Newmont and Agnico Eagle are well-positioned to benefit from the current surge in gold prices, each demonstrating strong financial performance and commitment to shareholder returns. AEM's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. AEM’s low leverage also indicates lower financial risks. Investors seeking exposure to the gold space might consider Agnico Eagle as the more favorable option at this time.
Image: Bigstock
NEM vs. AEM: Which Gold Mining Stock Should You Invest in Now?
Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) are two prominent players in the gold mining space with global operations and diversified portfolios. With gold prices soaring, driven by global economic uncertainties and trade tensions, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have zoomed roughly 30% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on Tuesday as the U.S. dollar tumbled amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates.
Let’s dive deep and closely compare the fundamentals of these two mining giants to determine which one is a better investment now.
The Case for Newmont
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Panel Caves in Australia. These projects should expand production capacity and extend mine life, driving revenues and profits.
The acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. NEM has achieved $500 million in annual run-rate synergies, following the Newcrest buyout.
Newmont also remains committed to divesting non-core businesses as it shifts its strategic focus to Tier 1 assets. NEM’s attributable gold production rose around 9% year over year in the fourth quarter on strong performance from its managed Tier 1 portfolio. The company, in March 2025, completed the divestment of three non-core assets — the Musselwhite and Eleonore operations in Canada and the Cripple Creek & Victor ("CC&V") operation in Colorado. The sale of these three additional non-core assets resulted in total after-tax cash proceeds of $1.7 billion before closing adjustments. Furthermore, NEM completed its non-core divestiture program last month with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada, generating total after-tax cash proceeds of roughly $850 million before closing adjustments. Total gross proceeds from disclosed divestitures are expected to reach $4.3 billion, including $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
Newmont has a strong liquidity position and generates substantial cash flows, which allows it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter of 2025, Newmont had liquidity of $8.8 billion, including cash and cash equivalents of around $4.7 billion. Its operating cash flow from continuing operations soared roughly 162% year over year to around $2 billion in the first quarter. NEM also generated a record free cash flow of $1.2 billion in the quarter.
NEM delivered $1 billion to its shareholders through dividends and share repurchases and reduced debt by $1 billion since the beginning of 2025. Its long-term debt-to-capitalization is around 20%. NEM offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 24% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
The Case for Agnico Eagle
Agnico Eagle is focused on executing projects that are expected to provide additional growth in production and cash flows. It is advancing its key value drivers and pipeline projects, including the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas. The Hope Bay Project, with proven and probable mineral reserves of 3.4 million ounces, is expected to play a significant role in generating cash flow in the coming years. The processing plant expansion at Meliadine was completed and commissioned in the second half of 2024, with mill capacity expected to increase to roughly 6,250 tons per day in 2025.
The merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer. The integrated entity now has an extensive pipeline of development and exploration projects to drive sustainable growth. It also has the financial flexibility to fund a strong pipeline of growth projects.
AEM has a strong liquidity position and generates substantial cash flows, which allow it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Its operating cash flow jumped roughly 33% year over year to record $1,044 million in the first quarter. AEM also generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and strong operational results. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. Its long-term debt-to-capitalization is just around 5%.
AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. AEM offers a dividend yield of 1.4% at the current stock price. It has a five-year annualized dividend growth rate of 10.3%. AEM has a payout ratio of 32%.
Price Performance and Valuation of NEM & AEM
Year to date, NEM stock has risen 46.7%, while AEM stock has racked up a gain of 52.3% compared with the Zacks Mining – Gold industry’s increase of 44.8%.
NEM is currently trading at a forward 12-month earnings multiple of 13.04, lower than its five-year median. This represents a roughly 11.4% discount when stacked up with the industry average of 14.72X.
Agnico Eagle is trading at a premium to Newmont. The AEM stock is currently trading at a forward 12-month earnings multiple of 19.9, lower than its five-year median and above the industry.
How Do Zacks Consensus Estimate Compare for NEM & AEM?
The Zacks Consensus Estimate for NEM’s 2025 sales and EPS implies a year-over-year rise of 0.1% and 14.9%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
The consensus estimate for AEM’s 2025 sales and EPS implies year-over-year growth of 20.6% and 44.4%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
NEM or AEM: Which is a Better Pick?
Both Newmont and Agnico Eagle are well-positioned to benefit from the current surge in gold prices, each demonstrating strong financial performance and commitment to shareholder returns. AEM's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. AEM’s low leverage also indicates lower financial risks. Investors seeking exposure to the gold space might consider Agnico Eagle as the more favorable option at this time.
AEM currently sports a Zacks Rank #1 (Strong Buy), whereas NEM has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.