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 Shining Brighter Now?
Read MoreHide Full Article
Key Takeaways
Gold's surge above $4,000 per ton has lifted both Barrick and Newmont shares sharply this year.
Barrick advances key projects like Goldrush and Lumwana while maintaining solid cash flow.
Newmont grows through Newcrest integration, project expansion and strategic divestitures.
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 shooting higher, 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 as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid the intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks.
The Federal Reserve’s interest rate reduction by a quarter of a percentage point, prospects of more rate cuts this year amid concerns over the labor market, along with growing concerns over a protracted U.S. government shutdown and escalating U.S.-China trade tensions, have triggered the rally, driving prices north of $4,000 per ton for the first time. Prices of the yellow metal have surged roughly 56% this year and are currently hovering near $4,100 per ton.
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 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. B’s board, in February 2025, authorized a new program for the buyback 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 1.7% 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 3.8%.
Barrick, however, is challenged by higher costs, which may weigh on 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 down 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 company also expects attributable gold production in the range of 3.15-3.5 million ounces for full-year 2025, excluding production from Loulo-Gounkoto, which is temporarily suspended. This projection suggests a year-over-year decline from 3.91 million ounces in 2024. Higher production from Pueblo Viejo, Turquoise Ridge, Porgera and Kibali, along with stable performance across Carlin and Cortez, is projected to be offset by reduced production across Veladero and Phoenix. Lower production is expected to weigh on the company’s performance in 2025.
The Case for Newmont
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including the Ahafo North expansion in Ghana and the Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand production capacity and extend mine life, driving revenues and profits.
NEM recently achieved a significant milestone at Ahafo North. It recorded the first gold pour at Ahafo North, marking an important step toward commercial production planned in the fourth quarter of 2025. Ahafo North is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years.
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. It 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 has 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 second quarter of 2025, Newmont had robust liquidity of $10.2 billion, including cash and cash equivalents of around $6.2 billion. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment. Net cash from operating activities shot up 17% from the prior quarter to $2.4 billion.
NEM has distributed roughly $2 billion to its shareholders through dividends and share repurchases and has reduced debt by $1.4 billion since the beginning of 2025. Newmont’s board has also authorized an additional $3 billion share buyback program. The company offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 20%.
B & NEM: Price Performance, Valuation & Other Comparisons
Year to date, B stock has risen 103.2%, while NEM stock has racked up a gain of 131.9% compared with the Zacks Mining – Gold industry’s increase of 136%.
Image Source: Zacks Investment Research
B is currently trading at a forward 12-month earnings multiple of 12.57, lower than its five-year median. This represents a roughly 23% discount when stacked up with the industry average of 16.32X.
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 13.91, lower than its five-year median and below the industry.
Image Source: Zacks Investment Research
NEM’s return on equity of 17.9% is higher than B’s 8.2%. This reflects Newmont’s efficient use of shareholder funds in generating profits.
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 19.4% and 65.1%, 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 11.3% and 60.1%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
B or NEM: Which is a Better Pick?
Both Barrick and Newmont are well-positioned to benefit from the current favorable gold price environment. Both have a strong pipeline of development projects, solid financial health and strong earnings growth prospects and are seeing favorable estimate revisions. However, Barrick faces headwinds from higher production costs, which may eat into its margins. Its downbeat production outlook also warrants caution. NEM’s higher ROE also indicates that it is more effectively utilizing shareholder funds. Investors seeking exposure to the gold space might consider Newmont as the more favorable option at this time.
Image: Bigstock
Barrick Mining vs. Newmont: Which Gold Giant Shining Brighter 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 shooting higher, 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 as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid the intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks.
The Federal Reserve’s interest rate reduction by a quarter of a percentage point, prospects of more rate cuts this year amid concerns over the labor market, along with growing concerns over a protracted U.S. government shutdown and escalating U.S.-China trade tensions, have triggered the rally, driving prices north of $4,000 per ton for the first time. Prices of the yellow metal have surged roughly 56% this year and are currently hovering near $4,100 per ton.
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 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. B’s board, in February 2025, authorized a new program for the buyback 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 1.7% 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 3.8%.
Barrick, however, is challenged by higher costs, which may weigh on 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 down 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 company also expects attributable gold production in the range of 3.15-3.5 million ounces for full-year 2025, excluding production from Loulo-Gounkoto, which is temporarily suspended. This projection suggests a year-over-year decline from 3.91 million ounces in 2024. Higher production from Pueblo Viejo, Turquoise Ridge, Porgera and Kibali, along with stable performance across Carlin and Cortez, is projected to be offset by reduced production across Veladero and Phoenix. Lower production is expected to weigh on the company’s performance in 2025.
The Case for Newmont
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including the Ahafo North expansion in Ghana and the Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand production capacity and extend mine life, driving revenues and profits.
NEM recently achieved a significant milestone at Ahafo North. It recorded the first gold pour at Ahafo North, marking an important step toward commercial production planned in the fourth quarter of 2025. Ahafo North is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years.
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. It 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 has 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 second quarter of 2025, Newmont had robust liquidity of $10.2 billion, including cash and cash equivalents of around $6.2 billion. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment. Net cash from operating activities shot up 17% from the prior quarter to $2.4 billion.
NEM has distributed roughly $2 billion to its shareholders through dividends and share repurchases and has reduced debt by $1.4 billion since the beginning of 2025. Newmont’s board has also authorized an additional $3 billion share buyback program. The company offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 20%.
B & NEM: Price Performance, Valuation & Other Comparisons
Year to date, B stock has risen 103.2%, while NEM stock has racked up a gain of 131.9% compared with the Zacks Mining – Gold industry’s increase of 136%.
B is currently trading at a forward 12-month earnings multiple of 12.57, lower than its five-year median. This represents a roughly 23% discount when stacked up with the industry average of 16.32X.
Newmont is trading at a premium to Barrick. The NEM stock is currently trading at a forward 12-month earnings multiple of 13.91, lower than its five-year median and below the industry.
NEM’s return on equity of 17.9% is higher than B’s 8.2%. This reflects Newmont’s efficient use of shareholder funds in generating profits.
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 19.4% and 65.1%, 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 11.3% and 60.1%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
B or NEM: Which is a Better Pick?
Both Barrick and Newmont are well-positioned to benefit from the current favorable gold price environment. Both have a strong pipeline of development projects, solid financial health and strong earnings growth prospects and are seeing favorable estimate revisions. However, Barrick faces headwinds from higher production costs, which may eat into its margins. Its downbeat production outlook also warrants caution. NEM’s higher ROE also indicates that it is more effectively utilizing shareholder funds. Investors seeking exposure to the gold space might consider Newmont as the more favorable option at this time.
B currently carries a Zacks Rank #3 (Hold), whereas NEM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.