Barrick Mining vs. Agnico Eagle: Which Gold Miner is Shining Brighter?

Anindya Barman September 23, 2025

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Key Takeaways

Barrick advances major gold and copper projects like Goldrush, Lumwana and Reko Diq.
Agnico Eagle boosts growth with Odyssey, Detour Lake, Hope Bay and Upper Beaver.
Barrick stock is up 128% YTD, while Agnico Eagle has gained 106% amid soaring gold prices.

Barrick Mining Corporation (B - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) are two leading players in the gold mining space with global operations and diversified portfolios. With gold prices soaring to the moon, driven by the Federal Reserve’s dovish stance, uncertainties surrounding U.S. trade tariffs and geopolitical tensions, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals sector.

Gold prices have seen a record-setting rally this year, mainly 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 have rocketed roughly 43% so far this year. The Federal Reserve’s interest rate reduction by a quarter of a percentage point, along with prospects of more rate cuts this year amid concerns over the labor market, has triggered the rally lately, driving prices north of $3,700 per ton for the first time. Increased purchases by central banks and geopolitical and trade tensions are the other factors expected to help the yellow metal sustain the upswing in 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 1.8% 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 result in increased costs.

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 years to come. 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. At Canadian Malartic, Agnico Eagle is advancing the transition to underground mining with the construction of the Odyssey mine and executing other opportunities to beef up annual production.

During the second quarter of 2025, AEM continued exploration drilling to extend the East Gouldie deposit at Canadian Malartic to the east. It also advanced the development of the production levels at East Gouldie, with work in progress for the planned start-up in the second half of 2026.

At Hope Bay, drilling results at Patch 7 also suggest the potential for mineral resource expansion. Moreover, drilling at the Marban deposit, added through the acquisition of O3 Mining, focuses on mineral reserve and mineral resource expansion. AEM also continued to work on a feasibility study at San Nicolas, with completion expected in late 2025. At Detour Lake, AEM started the development of the exploration ramp during the second quarter.

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 robust liquidity position and generates substantial cash flows, which enable 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 for the second quarter was roughly $1.85 billion, up 92% from $961 million a year ago.

AEM recorded second-quarter free cash flow of roughly $1.3 billion, more than doubling the prior-year quarter figure of $557 million. This was backed by the strength in gold prices and robust operational results.

The company remains focused on paying down debt using excess cash, with long-term debt reducing by $550 million sequentially to $595 million at the end of the second quarter. It ended the quarter with a significant net cash position of $963 million, driven by the increase in cash position and reduction in debt. AEM also returned around $300 million in the second quarter. Its long-term debt-to-capitalization is just around 2.8%, lower than Barrick’s 12.2%. AEM offers a dividend yield of 1% at the current stock price. It has a five-year annualized dividend growth rate of 6.9%. AEM has a payout ratio of 27%.

Despite these positives, Agnico Eagle is still exposed to higher production costs. Its second-quarter 2025 results show concerning increases in unit costs. Its AISC was $1,289 per ounce, marking a 9% increase from the prior quarter and a 10% year-over-year rise. AISC increased due to higher total cash costs and an uptick in sustaining capital expenditures and general and administrative expenses. Total cash costs per ounce for gold were $933, up 7% from $870 a year ago and increased from $903 in the prior quarter.

AEM forecasts AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint. AISC is likely to rise in the latter part of 2025 as deferred expenditures are realized. While AEM is taking actions to control costs, the inflationary pressure is likely to continue over the near term, weighing on its profit margins and overall financial performance.

B & AEM: Price Performance, Valuation & Other Comparisons

Year to date, Barrick stock has surged 128.2%, while AEM stock has rallied 106.1% compared with the Zacks Mining – Gold industry’s increase of 112.5%.