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B vs. KGC: Which Gold Mining Stock Is the Better Bet Now?
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Key Takeaways
Gold remains above $3,300 per ounce after a 27% YTD rally fueled by tariffs and central bank buying.
Barrick advances Goldrush, Fourmile, Lumwana, and Reko Diq, strengthening its production pipeline.
Kinross grows output at Tasiast and Paracatu, while boosting cash flow and reducing debt levels.
Barrick Mining Corporation (B - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations. While gold prices have fallen from their April 2025 highs, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Amid this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals sector.
Despite the recent pullback, gold prices have gained roughly 27% this year. The aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety, leading to the price rally. 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 April 22. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices.
Let’s dive deep and closely compare the fundamentals of these two Canada-based gold miners to determine which one is a better investment now.
The Case for Barrick
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 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 second-quarter 2025, Barrick’s cash and cash equivalents were around $4.8 billion. It generated strong operating cash flows of roughly $1.3 billion in the quarter, up 15% year over year. Free cash flow rose to around $395 million in the second quarter from $340 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 $411 million under this program during the first half of 2025.
Barrick offers a dividend yield of 1.6% at the current stock price. Its payout ratio is 25% (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%.
Barrick, however, is challenged by higher costs, which may eat into its margins. Its cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 17% and 12% year over year, respectively, in the second quarter. AISC of $1,684 increased from the year-ago quarter due to higher total cash costs per ounce, although declining 5% from the previous quarter. Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, also contributed to the rise in its unit costs.
For 2025, Barrick continues to see total cash costs per ounce of $1,050-$1,130 and AISC in the range of $1,460-$1,560 per ounce. These projections suggest a year-over-year increase at the midpoint of the respective ranges. Higher labor and energy costs may lead to increased costs.
The Case for Kinross
Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with a consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu continues to deliver strong performance, with second-quarter production rising on higher grades and improved mill recoveries.
KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. KGC ended second-quarter 2025 with robust liquidity of roughly $2.8 billion, including cash and cash equivalents of more than $1.1 billion. Second-quarter free cash flow surged roughly 87% year over year and 74% from the preceding quarter, driven by the strength in gold prices and strong operating performance.
Kinross repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter of 2025. Moreover, KGC improved its net debt position to around $100 million at the end of the second quarter from $540 million in the prior quarter. Its long-term debt-to-capitalization is 13.9% compared with Barrick’s 12.2%. KGC also offers a dividend yield of 0.6% at the current stock price. It has a payout ratio of 10%.
Price Performance and Valuation of B & KGC
Year to date, Barrick stock has gained 64.7%, while KGC stock has rallied 110.6% compared with the Zacks Mining – Gold industry’s increase of 72.7%.
Image Source: Zacks Investment Research
Barrick is currently trading at a forward 12-month earnings multiple of 11.31, lower than its five-year median. This represents a roughly 16.7% discount when stacked up with the industry average of 13.57X.
Image Source: Zacks Investment Research
Kinross is trading at a premium to Barrick. The KGC stock is currently trading at a forward 12-month earnings multiple of 13.98, modestly above the industry.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for B & KGC?
The Zacks Consensus Estimate for B’s 2025 sales and EPS implies a year-over-year rise of 19% 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 KGC’s 2025 sales and EPS implies year-over-year growth of 23.4% and 102.9%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
B or KGC: Which Stock Should You Bet on Now?
Both Barrick and Kinross are well-positioned to capitalize on the current favorable gold price environment. Both have a strong pipeline of development projects, solid financial health and are seeing favorable estimate revisions. KGC’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 Kinross as the more favorable option at this time.
Image: Bigstock
B vs. KGC: Which Gold Mining Stock Is the Better Bet Now?
Key Takeaways
Barrick Mining Corporation (B - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations. While gold prices have fallen from their April 2025 highs, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Amid this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals sector.
Despite the recent pullback, gold prices have gained roughly 27% this year. The aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety, leading to the price rally. 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 April 22. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices.
Let’s dive deep and closely compare the fundamentals of these two Canada-based gold miners to determine which one is a better investment now.
The Case for Barrick
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 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 second-quarter 2025, Barrick’s cash and cash equivalents were around $4.8 billion. It generated strong operating cash flows of roughly $1.3 billion in the quarter, up 15% year over year. Free cash flow rose to around $395 million in the second quarter from $340 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 $411 million under this program during the first half of 2025.
Barrick offers a dividend yield of 1.6% at the current stock price. Its payout ratio is 25% (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%.
Barrick, however, is challenged by higher costs, which may eat into its margins. Its cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 17% and 12% year over year, respectively, in the second quarter. AISC of $1,684 increased from the year-ago quarter due to higher total cash costs per ounce, although declining 5% from the previous quarter. Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, also contributed to the rise in its unit costs.
For 2025, Barrick continues to see total cash costs per ounce of $1,050-$1,130 and AISC in the range of $1,460-$1,560 per ounce. These projections suggest a year-over-year increase at the midpoint of the respective ranges. Higher labor and energy costs may lead to increased costs.
The Case for Kinross
Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with a consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu continues to deliver strong performance, with second-quarter production rising on higher grades and improved mill recoveries.
KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. KGC ended second-quarter 2025 with robust liquidity of roughly $2.8 billion, including cash and cash equivalents of more than $1.1 billion. Second-quarter free cash flow surged roughly 87% year over year and 74% from the preceding quarter, driven by the strength in gold prices and strong operating performance.
Kinross repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter of 2025. Moreover, KGC improved its net debt position to around $100 million at the end of the second quarter from $540 million in the prior quarter. Its long-term debt-to-capitalization is 13.9% compared with Barrick’s 12.2%. KGC also offers a dividend yield of 0.6% at the current stock price. It has a payout ratio of 10%.
Price Performance and Valuation of B & KGC
Year to date, Barrick stock has gained 64.7%, while KGC stock has rallied 110.6% compared with the Zacks Mining – Gold industry’s increase of 72.7%.
Barrick is currently trading at a forward 12-month earnings multiple of 11.31, lower than its five-year median. This represents a roughly 16.7% discount when stacked up with the industry average of 13.57X.
Kinross is trading at a premium to Barrick. The KGC stock is currently trading at a forward 12-month earnings multiple of 13.98, modestly above the industry.
How Does Zacks Consensus Estimate Compare for B & KGC?
The Zacks Consensus Estimate for B’s 2025 sales and EPS implies a year-over-year rise of 19% and 54.8%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
The consensus estimate for KGC’s 2025 sales and EPS implies year-over-year growth of 23.4% and 102.9%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
B or KGC: Which Stock Should You Bet on Now?
Both Barrick and Kinross are well-positioned to capitalize on the current favorable gold price environment. Both have a strong pipeline of development projects, solid financial health and are seeing favorable estimate revisions. KGC’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 Kinross as the more favorable option at this time.
B currently carries a Zacks Rank #3 (Hold), whereas KGC sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.