We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Barrick Mining vs. Newmont: Which Gold Giant Is the Better Bet Now?
Read MoreHide Full Article
Key Takeaways
Barrick is advancing key gold and copper projects while ramping up cash flow and shareholder returns.
Newmont completed major divestitures, boosting liquidity and focusing on high-value Tier 1 assets.
B is up 40.3% YTD with a 54.8% EPS growth outlook, while NEM is up 65.8% with 33.9% EPS growth projected.
Barrick Mining Corporation (B - Free Report) and Newmont Corporation (NEM - Free Report) are two of the biggest gold mining companies on the planet, each with extensive operations across multiple continents and diversified portfolios. With gold prices remaining elevated, driven by global economic and trade uncertainties, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have zoomed to unprecedented levels this year, hitting a record high of $3,500 per ounce on April 22. The surge is largely attributed to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, which have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have significantly increased their gold reserves, led by risks from Trump’s policies. These factors have collectively bolstered gold's appeal as a safe-haven asset. While gold prices have retreated from their April 2025 highs, they are currently hovering above the $3,400 per ounce level, and are up more than 30% so far this year.
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 Barrick
Barrick has pulled off a remarkable comeback this year following a lackluster 2024, thanks to a record-setting rally in gold prices. The gold giant reeled under the effects of high production costs and operational issues across certain mines, which impacted its production last year.
Barrick is well-placed to benefit from the progress in key growth projects, which should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are underway. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production.
The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the 100% Barrick-owned Fourmile, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. The project has progressed to a prefeasibility study on the back of a successful drilling program. The Reko Diq copper-gold project in Pakistan is designed to produce 460,000 tons of copper and 520,000 ounces of gold annually in its second development phase. The first production is expected by the end of 2028.
Also, the $2 billion Super Pit Expansion Project at its Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. Barrick recently stated that the Lumwana expansion is the result of a significant turnaround, transforming the mine from an underperforming asset into a vital part of both its global copper portfolio and Zambia’s long-term development strategy.
Barrick also has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. At the end of first-quarter 2025, Barrick’s cash and cash equivalents were around $4.1 billion. It generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year.
Free cash flow surged to around $375 million in the first quarter from $32 million in the prior-year quarter. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program during the first quarter.
Barrick offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 28% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 3%.
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 has also divested non-core businesses as it shifts its strategic focus to Tier 1 assets. NEM completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada. NEM recently executed agreements to sell its shares in Greatland Resources Limited and Discovery Silver Corp, for total cash proceeds of around $470 million after taxes and commissions. Following the sale of these shares, the company anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.
Newmont has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter, Newmont had liquidity of $8.8 billion, including cash and cash equivalents of around $4.7 billion. 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 has reduced debt by $1 billion since the beginning of 2025. NEM offers a dividend yield of 1.7% at the current stock price. Its payout ratio is 24%.
Price Performance and Valuation of B & NEM
Year to date, B stock has risen 40.3%, while NEM stock has racked up a gain of 65.8% compared with the Zacks Mining – Gold industry’s increase of 54.2%.
Image Source: Zacks Investment Research
B is currently trading at a forward 12-month earnings multiple of 9.88X, lower than its five-year median. This represents a roughly 20.7% discount when stacked up with the industry average of 12.46X.
Image Source: Zacks Investment Research
Newmont is trading at a premium to Barrick. The NEM stock is currently trading at a forward 12-month earnings multiple of 12.70X, lower than its five-year median and above the industry.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for B & NEM?
The Zacks Consensus Estimate for B’s 2025 sales and EPS implies a year-over-year rise of 17.9% and 54.8%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for NEM’s 2025 sales and EPS implies year-over-year growth of 3.1% and 33.9%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
Both Barrick and Newmont are well-positioned to benefit from the current favorable gold price environment, each demonstrating strong financial performance and commitment to shareholder returns. However, Barrick appears to have a slight edge over Newmont due to its more attractive valuation. In addition, Barrick's higher growth projections suggest that it may offer better investment prospects in the current market environment. Investors seeking exposure to the gold space might consider Barrick as the more favorable option at this time.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Barrick Mining vs. Newmont: Which Gold Giant Is the Better Bet Now?
Key Takeaways
Barrick Mining Corporation (B - Free Report) and Newmont Corporation (NEM - Free Report) are two of the biggest gold mining companies on the planet, each with extensive operations across multiple continents and diversified portfolios. With gold prices remaining elevated, driven by global economic and trade uncertainties, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have zoomed to unprecedented levels this year, hitting a record high of $3,500 per ounce on April 22. The surge is largely attributed to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, which have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have significantly increased their gold reserves, led by risks from Trump’s policies. These factors have collectively bolstered gold's appeal as a safe-haven asset. While gold prices have retreated from their April 2025 highs, they are currently hovering above the $3,400 per ounce level, and are up more than 30% so far this year.
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 Barrick
Barrick has pulled off a remarkable comeback this year following a lackluster 2024, thanks to a record-setting rally in gold prices. The gold giant reeled under the effects of high production costs and operational issues across certain mines, which impacted its production last year.
Barrick is well-placed to benefit from the progress in key growth projects, which should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are underway. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production.
The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the 100% Barrick-owned Fourmile, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. The project has progressed to a prefeasibility study on the back of a successful drilling program. The Reko Diq copper-gold project in Pakistan is designed to produce 460,000 tons of copper and 520,000 ounces of gold annually in its second development phase. The first production is expected by the end of 2028.
Also, the $2 billion Super Pit Expansion Project at its Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. Barrick recently stated that the Lumwana expansion is the result of a significant turnaround, transforming the mine from an underperforming asset into a vital part of both its global copper portfolio and Zambia’s long-term development strategy.
Barrick also has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. At the end of first-quarter 2025, Barrick’s cash and cash equivalents were around $4.1 billion. It generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year.
Free cash flow surged to around $375 million in the first quarter from $32 million in the prior-year quarter. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program during the first quarter.
Barrick offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 28% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 3%.
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 has also divested non-core businesses as it shifts its strategic focus to Tier 1 assets. NEM completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada. NEM recently executed agreements to sell its shares in Greatland Resources Limited and Discovery Silver Corp, for total cash proceeds of around $470 million after taxes and commissions. Following the sale of these shares, the company anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.
Newmont has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter, Newmont had liquidity of $8.8 billion, including cash and cash equivalents of around $4.7 billion. 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 has reduced debt by $1 billion since the beginning of 2025. NEM offers a dividend yield of 1.7% at the current stock price. Its payout ratio is 24%.
Price Performance and Valuation of B & NEM
Year to date, B stock has risen 40.3%, while NEM stock has racked up a gain of 65.8% compared with the Zacks Mining – Gold industry’s increase of 54.2%.
B is currently trading at a forward 12-month earnings multiple of 9.88X, lower than its five-year median. This represents a roughly 20.7% discount when stacked up with the industry average of 12.46X.
Newmont is trading at a premium to Barrick. The NEM stock is currently trading at a forward 12-month earnings multiple of 12.70X, lower than its five-year median and above the industry.
How Does Zacks Consensus Estimate Compare for B & NEM?
The Zacks Consensus Estimate for B’s 2025 sales and EPS implies a year-over-year rise of 17.9% and 54.8%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
The consensus estimate for NEM’s 2025 sales and EPS implies year-over-year growth of 3.1% and 33.9%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
B or NEM: Which is a Better Pick?
Both B and NEM currently have a Zacks Rank #2 (Buy) each, so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Barrick and Newmont are well-positioned to benefit from the current favorable gold price environment, each demonstrating strong financial performance and commitment to shareholder returns. However, Barrick appears to have a slight edge over Newmont due to its more attractive valuation. In addition, Barrick's higher growth projections suggest that it may offer better investment prospects in the current market environment. Investors seeking exposure to the gold space might consider Barrick as the more favorable option at this time.