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NEM vs. KGC: Which Gold Mining Stock Is a Better Pick Now?
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Key Takeaways
NEM's expansion through projects and strong free cash flow support shareholder returns.
Kinross is advancing growth projects while reducing debt and boosting liquidity.
Both NEM and KGC outpaced the industry with rising estimates, fueled by higher gold prices.
Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations and diversified portfolios. Gold prices have lost steam after hitting record levels in January 2026. Prices have tumbled to their lowest level in four months on mounting inflation worries amid a spike in crude oil prices triggered by the war in the Middle East. Against this backdrop, comparing these two major industry players is particularly relevant for investors seeking exposure to the precious metals sector.
After surging roughly 65% in 2025, gold entered 2026 with strong momentum. Heightened geopolitical strains, a weaker U.S. dollar and concerns over the independence of the Federal Reserve pushed bullion to record highs, with prices climbing to nearly $5,600 per ounce in late January. The rally was followed by a brief pullback to below $4,900 per ounce due to aggressive profit-taking and a rebound in the U.S. dollar. However, bargain hunting after the sharp selloff lifted prices back above $5,000 per ounce.
Bullion strengthened earlier this month again, surging past $5,400 per ounce on March 2, as safe-haven demand spiked, following joint U.S.-Israel strikes on Iran. Gold prices have since retreated from those levels amid a stronger U.S. dollar and inflation fears tied to surging oil prices. The Federal Reserve also kept interest rates unchanged amid a sharp upswing in oil prices due to the ongoing war, and projected only one rate cut this year. The Fed’s hawkish tone further weighed on gold prices. These factors have dragged bullion to below $4,500 per ounce.
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 Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand Newmont’s production capacity and extend mine life, driving revenues and profits.
In October 2025, NEM 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. Output is expected to be 315,000 ounces this year, with a ramp-up to full capacity.
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.
The company generated $3.6 billion from its portfolio optimization actions in 2025. 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 2025, Newmont had robust liquidity of roughly $11.6 billion, including cash and cash equivalents of around $7.6 billion. Its free cash flow nearly doubled year over year to a record $2.8 billion in the fourth quarter and surged two-and-a-half-fold year over year to a record $7.3 billion, led by an increase in net cash from operating activities. Net cash from operating activities shot up 44% from the prior-year quarter to $3.6 billion, and surged 62% to $10.3 billion in 2025.
NEM has distributed $3.4 billion to its shareholders through dividends and share repurchases in 2025. It also remains committed to deleveraging, reducing debt by roughly $3.4 billion in 2025, resulting in a strong net cash position of $2.1 billion. NEM announced an increased dividend of 26 cents per share for the fourth quarter of 2025. Newmont has executed $3.6 billion from $6 billion of buyback authorization as of Feb. 19, 2026.
NEM offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
Newmont, however, faces headwinds from higher unit costs in 2026, partly due to lower gold production. The company anticipates gold production for 2026 at about 5.26 million ounces, indicating a decline from 5.89 million ounces in 2025. It expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to lower sales volumes as a result of planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 into 2026 and inventory changes. The production decline and higher costs could undercut the profitability goals.
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 remain on track. These projects are expected to boost production and cash flow, and deliver significant value. The successful execution of these projects will position the company for a new wave of low-cost, long-life production.
KGC, in January 2026, said that it is progressing with the construction of three organic growth projects to expand its U.S. portfolio. This is aimed at extending mine life and cost optimization. The projects are Round Mountain Phase X and Bald Mountain Redbird 2 in Nevada, and the Kettle River–Curlew project in Washington.
Together, these projects are expected to contribute significantly to Kinross’ U.S. production profile and add a strong value proposition with a combined Internal Rate of Return (IRR) of 59% and a combined incremental post-tax Net Present Value (NPV) of $4.3 billion. These projects are expected to contribute 3 million ounces of life-of-mine production to KGC’s portfolio, adding grades and mine lives. Kinross Gold is planning to self-fund three growth projects entirely from operating cash flows, reflecting its disciplined strategy.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast is the highest-margin asset within its portfolio, with a consistently strong performance. Paracatu continues to deliver a solid performance, with fourth-quarter 2025 production rising 25% year over year on higher grades. La Coipa also saw a strong fourth quarter on increased mill throughput. KGC completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in higher-grade production at the Fort Knox operation.
KGC has strong liquidity of $3.5 billion and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. Kinross reactivated its share buyback program in April 2025. It completed a $600 million share repurchase program as of Dec. 31, 2025. KGC generated a record free cash flow of roughly $2.5 billion last year. It returned $752.4 million to its shareholders through dividends and buybacks in 2025, ending the year with about $1 billion in net cash.
In 2025, the company repaid $700 million of debt. With $1.7 billion in available credit (as of Dec. 31, 2025) and no debt maturities until 2033, Kinross is well-positioned to support growth while strengthening its balance sheet and delivering shareholder value.
KGC’s board has approved a 14% increase to its quarterly dividend, amounting to 16 cents per share on an annualized basis. Kinross is targeting to return 40% of its free cash flow through share buybacks and dividends in 2026. KGC offers a dividend yield of 0.6% at the current stock price. It has a payout ratio of 8%.
Kinross is exposed to headwinds from higher production costs. It saw fourth-quarter attributable AISC of $1,825 per ounce, marking a 21% increase from the year-ago quarter and a rise from $1,622 in the prior quarter. For full-year 2025, Kinross’ AISC was $1,571, up from $1,388 in 2024. Kinross expects AISC to be $1,730 per ounce (+/-5%) in 2026, indicating a year-over-year increase partly due to inflationary impacts.
Price Performance and Valuation of NEM & KGC
NEM stock has rallied 109.6% in the past year, while KGC stock has soared 128% compared with the Zacks Mining – Gold industry’s increase of 77.7%.
Image Source: Zacks Investment Research
NEM is currently trading at a forward 12-month earnings multiple of 10.73. This represents a roughly 4.6% premium when stacked up with the industry average of 10.26X.
Image Source: Zacks Investment Research
Kinross is trading at a discount to Newmont. The KGC stock is currently trading at a forward 12-month earnings multiple of 10.06, below its industry average.
Image Source: Zacks Investment Research
How Do Zacks Consensus Estimates Compare for NEM & KGC?
The Zacks Consensus Estimate for NEM’s 2026 sales and EPS implies a year-over-year rise of 15.9% and 27.6%, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for KGC’s 2026 sales and EPS implies year-over-year growth of 25.4% and 50%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Both Newmont and Kinross are demonstrating strong financial performance and commitment to shareholder returns, supported by favorable gold prices. Both have a strong pipeline of development projects and solid financial health. The companies are also seeing favorable estimate revisions. Both are, however, mired in headwinds from cost inflation. Kinross appears to have an edge over Newmont due to its more attractive valuation and higher growth projections. Investors seeking exposure to the gold space might consider KGC as the more favorable option at this time.
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NEM vs. KGC: Which Gold Mining Stock Is a Better Pick Now?
Key Takeaways
Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations and diversified portfolios. Gold prices have lost steam after hitting record levels in January 2026. Prices have tumbled to their lowest level in four months on mounting inflation worries amid a spike in crude oil prices triggered by the war in the Middle East. Against this backdrop, comparing these two major industry players is particularly relevant for investors seeking exposure to the precious metals sector.
After surging roughly 65% in 2025, gold entered 2026 with strong momentum. Heightened geopolitical strains, a weaker U.S. dollar and concerns over the independence of the Federal Reserve pushed bullion to record highs, with prices climbing to nearly $5,600 per ounce in late January. The rally was followed by a brief pullback to below $4,900 per ounce due to aggressive profit-taking and a rebound in the U.S. dollar. However, bargain hunting after the sharp selloff lifted prices back above $5,000 per ounce.
Bullion strengthened earlier this month again, surging past $5,400 per ounce on March 2, as safe-haven demand spiked, following joint U.S.-Israel strikes on Iran. Gold prices have since retreated from those levels amid a stronger U.S. dollar and inflation fears tied to surging oil prices. The Federal Reserve also kept interest rates unchanged amid a sharp upswing in oil prices due to the ongoing war, and projected only one rate cut this year. The Fed’s hawkish tone further weighed on gold prices. These factors have dragged bullion to below $4,500 per ounce.
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 Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand Newmont’s production capacity and extend mine life, driving revenues and profits.
In October 2025, NEM 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. Output is expected to be 315,000 ounces this year, with a ramp-up to full capacity.
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.
The company generated $3.6 billion from its portfolio optimization actions in 2025. 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 2025, Newmont had robust liquidity of roughly $11.6 billion, including cash and cash equivalents of around $7.6 billion. Its free cash flow nearly doubled year over year to a record $2.8 billion in the fourth quarter and surged two-and-a-half-fold year over year to a record $7.3 billion, led by an increase in net cash from operating activities. Net cash from operating activities shot up 44% from the prior-year quarter to $3.6 billion, and surged 62% to $10.3 billion in 2025.
NEM has distributed $3.4 billion to its shareholders through dividends and share repurchases in 2025. It also remains committed to deleveraging, reducing debt by roughly $3.4 billion in 2025, resulting in a strong net cash position of $2.1 billion. NEM announced an increased dividend of 26 cents per share for the fourth quarter of 2025. Newmont has executed $3.6 billion from $6 billion of buyback authorization as of Feb. 19, 2026.
NEM offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
Newmont, however, faces headwinds from higher unit costs in 2026, partly due to lower gold production. The company anticipates gold production for 2026 at about 5.26 million ounces, indicating a decline from 5.89 million ounces in 2025. It expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to lower sales volumes as a result of planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 into 2026 and inventory changes. The production decline and higher costs could undercut the profitability goals.
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 remain on track. These projects are expected to boost production and cash flow, and deliver significant value. The successful execution of these projects will position the company for a new wave of low-cost, long-life production.
KGC, in January 2026, said that it is progressing with the construction of three organic growth projects to expand its U.S. portfolio. This is aimed at extending mine life and cost optimization. The projects are Round Mountain Phase X and Bald Mountain Redbird 2 in Nevada, and the Kettle River–Curlew project in Washington.
Together, these projects are expected to contribute significantly to Kinross’ U.S. production profile and add a strong value proposition with a combined Internal Rate of Return (IRR) of 59% and a combined incremental post-tax Net Present Value (NPV) of $4.3 billion. These projects are expected to contribute 3 million ounces of life-of-mine production to KGC’s portfolio, adding grades and mine lives. Kinross Gold is planning to self-fund three growth projects entirely from operating cash flows, reflecting its disciplined strategy.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast is the highest-margin asset within its portfolio, with a consistently strong performance. Paracatu continues to deliver a solid performance, with fourth-quarter 2025 production rising 25% year over year on higher grades. La Coipa also saw a strong fourth quarter on increased mill throughput. KGC completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in higher-grade production at the Fort Knox operation.
KGC has strong liquidity of $3.5 billion and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. Kinross reactivated its share buyback program in April 2025. It completed a $600 million share repurchase program as of Dec. 31, 2025. KGC generated a record free cash flow of roughly $2.5 billion last year. It returned $752.4 million to its shareholders through dividends and buybacks in 2025, ending the year with about $1 billion in net cash.
In 2025, the company repaid $700 million of debt. With $1.7 billion in available credit (as of Dec. 31, 2025) and no debt maturities until 2033, Kinross is well-positioned to support growth while strengthening its balance sheet and delivering shareholder value.
KGC’s board has approved a 14% increase to its quarterly dividend, amounting to 16 cents per share on an annualized basis. Kinross is targeting to return 40% of its free cash flow through share buybacks and dividends in 2026. KGC offers a dividend yield of 0.6% at the current stock price. It has a payout ratio of 8%.
Kinross is exposed to headwinds from higher production costs. It saw fourth-quarter attributable AISC of $1,825 per ounce, marking a 21% increase from the year-ago quarter and a rise from $1,622 in the prior quarter. For full-year 2025, Kinross’ AISC was $1,571, up from $1,388 in 2024. Kinross expects AISC to be $1,730 per ounce (+/-5%) in 2026, indicating a year-over-year increase partly due to inflationary impacts.
Price Performance and Valuation of NEM & KGC
NEM stock has rallied 109.6% in the past year, while KGC stock has soared 128% compared with the Zacks Mining – Gold industry’s increase of 77.7%.
NEM is currently trading at a forward 12-month earnings multiple of 10.73. This represents a roughly 4.6% premium when stacked up with the industry average of 10.26X.
Kinross is trading at a discount to Newmont. The KGC stock is currently trading at a forward 12-month earnings multiple of 10.06, below its industry average.
How Do Zacks Consensus Estimates Compare for NEM & KGC?
The Zacks Consensus Estimate for NEM’s 2026 sales and EPS implies a year-over-year rise of 15.9% and 27.6%, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days.
The consensus estimate for KGC’s 2026 sales and EPS implies year-over-year growth of 25.4% and 50%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
NEM or KGC: Which Stock Should You Bet on Now?
NEM and KGC currently carry a Zacks Rank #3 (Hold) 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 Newmont and Kinross are demonstrating strong financial performance and commitment to shareholder returns, supported by favorable gold prices. Both have a strong pipeline of development projects and solid financial health. The companies are also seeing favorable estimate revisions. Both are, however, mired in headwinds from cost inflation. Kinross appears to have an edge over Newmont due to its more attractive valuation and higher growth projections. Investors seeking exposure to the gold space might consider KGC as the more favorable option at this time.