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NEM vs. AEM: Which Gold Mining Stock Should You Invest in Now?
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Key Takeaways
Newmont's Newcrest buyout and divestiture program strengthened its portfolio and reinforced liquidity.
AEM boosted Q3 free cash flow to $1.2B, aided by strong operations and higher gold prices.
Estimates for both miners are trending upward over the past 60 days, with higher projected sales and EPS
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. While gold prices have fallen from their October 2025 highs, they remain favorable and are currently hovering above the $4,000 per ounce level. Against this backdrop, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have shot up roughly 55% 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. Increased purchases by central banks and geopolitical and trade tensions are expected to help the yellow metal sustain the upswing in gold prices.
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 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, last month, achieved a significant milestone at Ahafo North. It achieved commercial production at the project, which followed the first gold pour in September 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. Production is expected to be 50,000 ounces this year, with a ramp-up to full capacity expected in 2026. 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 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 third quarter of 2025, Newmont had robust liquidity of $9.6 billion, including cash and cash equivalents of around $5.6 billion. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion.
NEM has distributed more than $5.7 billion to its shareholders through dividends and share repurchases over the past two years. It also remains committed to deleveraging, reducing debt by roughly $2 billion in the third quarter, resulting in a near-zero net debt position at the end of the quarter. Newmont has repurchased shares worth $2.1 billion this year, executing $3.3 billion from $6 billion of authorization. NEM offers a dividend yield of 1.2% at the current stock price. Its payout ratio is 17%, with a five-year annualized dividend growth rate of about -18.6%.
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 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 was roughly $1.8 billion in the third quarter, up around 67% from the year-ago quarter.
AEM recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year quarter figure of $620 million. The increase was backed by the strength in gold prices and robust operational results. The company remains focused on paying down debt using excess cash, with total long-term debt reducing by roughly $400 million sequentially to $196 million at the end of the quarter.
The quarter also ended with a significant net cash position of nearly $2.2 billion, driven by the increase in cash position and reduction in debt. AEM also returned around $350 million to its shareholders in the last-reported quarter.
AEM offers a dividend yield of 1% at the current stock price. It has a five-year annualized dividend growth rate of 3.1%. AEM has a payout ratio of 23%.
However, Agnico Eagle is exposed to higher production costs. In the third quarter, its total cash costs per ounce for gold were $994, up 8% from $921 a year ago and from $933 in the prior quarter. All-in-sustaining costs (AISC) — a critical cost metric for miners — were $1,373 per ounce, marking a roughly 6% increase from the prior quarter and a 7% year-over-year rise.
The company forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While Agnico Eagle 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.
NEM & AEM: Price Performance, Valuation & Other Comparisons
Year to date, NEM stock has rallied 124.3%, while AEM stock has racked up a gain of 104.6% compared with the Zacks Mining – Gold industry’s increase of 115.1%.
Image Source: Zacks Investment Research
NEM is currently trading at a forward 12-month earnings multiple of 11.7, lower than its five-year median. This represents a roughly 5% discount when stacked up with the industry average of 12.35X.
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 17.49, lower than its five-year median and above the industry.
Image Source: Zacks Investment Research
NEM’s return on equity of 20.4% is higher than AEM’s 15.6%. This reflects Newmont’s efficient use of shareholder funds in generating profits.
Image Source: Zacks Investment Research
How Does 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 14.1% and 71.3%, 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 34.6% and 82.3%, 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 gold pricing strength, each demonstrating strong financial performance and commitment to shareholder returns. Both have a strong pipeline of development projects, solid financial health and are seeing favorable estimate revisions. However, AEM’s high production costs warrant caution. NEM’s higher ROE also indicates that it is more effectively utilizing shareholder funds. In addition, NEM’s cheap valuation offers an attractive entry point. Investors seeking exposure to the gold space might consider Newmont as the more favorable option at this time.
Image: Bigstock
NEM vs. AEM: Which Gold Mining Stock Should You Invest in Now?
Key Takeaways
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. While gold prices have fallen from their October 2025 highs, they remain favorable and are currently hovering above the $4,000 per ounce level. Against this backdrop, comparing these two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.
Gold prices have shot up roughly 55% 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. Increased purchases by central banks and geopolitical and trade tensions are expected to help the yellow metal sustain the upswing in gold prices.
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 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, last month, achieved a significant milestone at Ahafo North. It achieved commercial production at the project, which followed the first gold pour in September 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. Production is expected to be 50,000 ounces this year, with a ramp-up to full capacity expected in 2026.
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 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 third quarter of 2025, Newmont had robust liquidity of $9.6 billion, including cash and cash equivalents of around $5.6 billion. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion.
NEM has distributed more than $5.7 billion to its shareholders through dividends and share repurchases over the past two years. It also remains committed to deleveraging, reducing debt by roughly $2 billion in the third quarter, resulting in a near-zero net debt position at the end of the quarter. Newmont has repurchased shares worth $2.1 billion this year, executing $3.3 billion from $6 billion of authorization. NEM offers a dividend yield of 1.2% at the current stock price. Its payout ratio is 17%, with a five-year annualized dividend growth rate of about -18.6%.
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 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 was roughly $1.8 billion in the third quarter, up around 67% from the year-ago quarter.
AEM recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year quarter figure of $620 million. The increase was backed by the strength in gold prices and robust operational results. The company remains focused on paying down debt using excess cash, with total long-term debt reducing by roughly $400 million sequentially to $196 million at the end of the quarter.
The quarter also ended with a significant net cash position of nearly $2.2 billion, driven by the increase in cash position and reduction in debt. AEM also returned around $350 million to its shareholders in the last-reported quarter.
AEM offers a dividend yield of 1% at the current stock price. It has a five-year annualized dividend growth rate of 3.1%. AEM has a payout ratio of 23%.
However, Agnico Eagle is exposed to higher production costs. In the third quarter, its total cash costs per ounce for gold were $994, up 8% from $921 a year ago and from $933 in the prior quarter. All-in-sustaining costs (AISC) — a critical cost metric for miners — were $1,373 per ounce, marking a roughly 6% increase from the prior quarter and a 7% year-over-year rise.
The company forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While Agnico Eagle 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.
NEM & AEM: Price Performance, Valuation & Other Comparisons
Year to date, NEM stock has rallied 124.3%, while AEM stock has racked up a gain of 104.6% compared with the Zacks Mining – Gold industry’s increase of 115.1%.
NEM is currently trading at a forward 12-month earnings multiple of 11.7, lower than its five-year median. This represents a roughly 5% discount when stacked up with the industry average of 12.35X.
Agnico Eagle is trading at a premium to Newmont. The AEM stock is currently trading at a forward 12-month earnings multiple of 17.49, lower than its five-year median and above the industry.
NEM’s return on equity of 20.4% is higher than AEM’s 15.6%. This reflects Newmont’s efficient use of shareholder funds in generating profits.
How Does 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 14.1% and 71.3%, 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 34.6% and 82.3%, 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 gold pricing strength, each demonstrating strong financial performance and commitment to shareholder returns. Both have a strong pipeline of development projects, solid financial health and are seeing favorable estimate revisions. However, AEM’s high production costs warrant caution. NEM’s higher ROE also indicates that it is more effectively utilizing shareholder funds. In addition, NEM’s cheap valuation offers an attractive entry point. Investors seeking exposure to the gold space might consider Newmont as the more favorable option at this time.
NEM currently carries a Zacks Rank #2 (Buy), whereas AEM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.