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 Is Shining Brighter?
Read MoreHide Full Article
Key Takeaways
Barrick and Newmont shares rally in a year, lifted by gold's surge to record highs.
Barrick Mining advances key projects while facing higher costs and a projected dip in gold output.
Newmont strengthens liquidity and funds growth while facing declining production and higher unit costs.
Barrick Mining Corporation (B - Free Report) and Newmont Corporation (NEM - Free Report) are two of the biggest gold mining companies, each with extensive operations across multiple continents and diversified portfolios. While gold prices have fallen from their January 2026 highs, they remain favorable.
Heightened geopolitical strains, a weaker U.S. dollar, tariff threats and concerns over the independence of the Federal Reserve drove bullion to a record high of nearly $5,600 per ounce in late January. This was followed by a brief pullback to below $4,900 per ounce due to aggressive profit-booking and a rebound in the U.S. dollar. Bullion strengthened again, surging past $5,400 per ounce on March 2, as safe-haven demand spiked, following joint U.S.-Israel strikes on Iran. A stronger U.S. dollar, inflation fears tied to a spike in oil prices and the Fed’s hawkish tone weighed on gold prices, dragging bullion to below $4,500 per ounce in late March.
Gold surged to near $4,800 per ounce earlier this month after the United States and Iran agreed to a two-week ceasefire, leading to oil prices crashing and easing inflation worries. This was followed by another brief pullback on inflation concerns following failed U.S.-Iran ceasefire talks and the announcement of a U.S. naval blockade of the Strait of Hormuz. Gold prices again gained ground last week, surpassing $4,800 per ounce as oil prices fell on hopes of a U.S.-Iran truce, before slipping below that level on renewed geopolitical tensions.
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-positioned to capitalize on advancements across its key growth projects, which are expected to meaningfully boost production. Its major gold and copper initiatives, such as Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are progressing on schedule and within budget, setting the stage for the next wave of profitable output.
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 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 $2-billion Super Pit Expansion Project at Barrick’s Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. The expansion is expected to produce 240,000 tons of copper annually.
Barrick maintains a strong liquidity position and robust cash flow generation, enabling it to capitalize on compelling development, exploration and acquisition opportunities, enhance shareholder value and lower debt. At the end of fourth-quarter 2025, Barrick’s cash and cash equivalents were around $6.7 billion. It generated strong operating cash flows of roughly $2.7 billion in the fourth quarter, up 13% year over year, while free cash flow rose 9% year over year to around $1.6 billion. For full-year 2025, operating cash flow surged 71% to around $7.7 billion, and free cash flow shot up 194% to $3.9 billion.
Barrick returned $2.4 billion to its shareholders in 2025 through dividends and repurchases. It repurchased shares worth $1.5 billion during 2025, including $500 million in the fourth quarter. The company increased its dividend to 42 cents per share for the fourth quarter of 2025, marking a 140% increase over the third quarter. It also announced a new dividend policy that targets a total payout of 50% of attributable free cash flow on an annualized basis.
Barrick offers a dividend yield of 3.9% at the current stock price. Its payout ratio is 29% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 13.3%.
Barrick is, however, challenged by higher costs, which may weigh on its margins. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 15% and 9% year over year, respectively, in the fourth quarter, and rose from the previous quarter as well. AISC of $1,581 increased from the year-ago quarter due to higher total cash costs per ounce. AISC also rose 10% year over year to $1,637 in 2025. Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, contributed to the rise in its unit costs.
For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint. Cash costs per ounce are forecast to be $1,330-$1,470, up from $1,199 in 2025.
Certain operational issues adversely impacted Barrick’s gold production for full-year 2025. The company’s attributable gold production fell around 17% year over year to roughly 3.26 million ounces in 2025. The company provided a tepid forecast for 2026, with attributable gold production expected to be in the range of 2.9-3.25 million ounces. Weak production is expected to weigh on the company’s performance in the near term.
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. 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 0.9% at the current stock price. Its payout ratio is 14%. Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
NEM saw lower gold production for the fourth quarter of 2025, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 24% year-over-year decline in gold production to 1.45 million ounces, although increasing modestly from the prior quarter. The company also reported a roughly 14% year-over-year decline in gold production in 2025, reaching 5.89 million ounces.
The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline. Lower production is also expected to lead to higher unit costs in 2026. NEM expects AISC 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.
Price Performance and Valuation of B & NEM
B stock has surged 111.7% in a year, while NEM stock has racked up a gain of 111% compared with the Zacks Mining – Gold industry’s growth of 84.8%.
Image Source: Zacks Investment Research
B is currently trading at a forward 12-month earnings multiple of 11.37, lower than its five-year median. This represents a roughly 10.4% discount when stacked up with the industry average of 12.69X.
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 12.74, lower than its five-year median and modestly above the industry.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for B & NEM?
The Zacks Consensus Estimate for B’s 2026 sales and EPS implies a year-over-year rise of 17.2% and 49.2%, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for NEM’s 2026 sales and EPS implies year-over-year growth of 13.2% and 28.2%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Both Barrick and Newmont are well-positioned to benefit from still-elevated gold prices. They have a strong pipeline of development projects and solid financial health and remain committed to driving shareholder value. However, both companies face headwinds from higher costs and weaker production. Barrick appears to have an edge over Newmont due to its more attractive valuation and higher earnings growth projections. Investors seeking exposure to the gold space might consider Barrick as the more favorable option at this time.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Barrick Mining vs. Newmont: Which Gold Giant Is Shining Brighter?
Key Takeaways
Barrick Mining Corporation (B - Free Report) and Newmont Corporation (NEM - Free Report) are two of the biggest gold mining companies, each with extensive operations across multiple continents and diversified portfolios. While gold prices have fallen from their January 2026 highs, they remain favorable.
Heightened geopolitical strains, a weaker U.S. dollar, tariff threats and concerns over the independence of the Federal Reserve drove bullion to a record high of nearly $5,600 per ounce in late January. This was followed by a brief pullback to below $4,900 per ounce due to aggressive profit-booking and a rebound in the U.S. dollar. Bullion strengthened again, surging past $5,400 per ounce on March 2, as safe-haven demand spiked, following joint U.S.-Israel strikes on Iran. A stronger U.S. dollar, inflation fears tied to a spike in oil prices and the Fed’s hawkish tone weighed on gold prices, dragging bullion to below $4,500 per ounce in late March.
Gold surged to near $4,800 per ounce earlier this month after the United States and Iran agreed to a two-week ceasefire, leading to oil prices crashing and easing inflation worries. This was followed by another brief pullback on inflation concerns following failed U.S.-Iran ceasefire talks and the announcement of a U.S. naval blockade of the Strait of Hormuz. Gold prices again gained ground last week, surpassing $4,800 per ounce as oil prices fell on hopes of a U.S.-Iran truce, before slipping below that level on renewed geopolitical tensions.
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-positioned to capitalize on advancements across its key growth projects, which are expected to meaningfully boost production. Its major gold and copper initiatives, such as Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are progressing on schedule and within budget, setting the stage for the next wave of profitable output.
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 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 $2-billion Super Pit Expansion Project at Barrick’s Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. The expansion is expected to produce 240,000 tons of copper annually.
Barrick maintains a strong liquidity position and robust cash flow generation, enabling it to capitalize on compelling development, exploration and acquisition opportunities, enhance shareholder value and lower debt. At the end of fourth-quarter 2025, Barrick’s cash and cash equivalents were around $6.7 billion. It generated strong operating cash flows of roughly $2.7 billion in the fourth quarter, up 13% year over year, while free cash flow rose 9% year over year to around $1.6 billion. For full-year 2025, operating cash flow surged 71% to around $7.7 billion, and free cash flow shot up 194% to $3.9 billion.
Barrick returned $2.4 billion to its shareholders in 2025 through dividends and repurchases. It repurchased shares worth $1.5 billion during 2025, including $500 million in the fourth quarter. The company increased its dividend to 42 cents per share for the fourth quarter of 2025, marking a 140% increase over the third quarter. It also announced a new dividend policy that targets a total payout of 50% of attributable free cash flow on an annualized basis.
Barrick offers a dividend yield of 3.9% at the current stock price. Its payout ratio is 29% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 13.3%.
Barrick is, however, challenged by higher costs, which may weigh on its margins. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 15% and 9% year over year, respectively, in the fourth quarter, and rose from the previous quarter as well. AISC of $1,581 increased from the year-ago quarter due to higher total cash costs per ounce. AISC also rose 10% year over year to $1,637 in 2025. Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, contributed to the rise in its unit costs.
For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint. Cash costs per ounce are forecast to be $1,330-$1,470, up from $1,199 in 2025.
Certain operational issues adversely impacted Barrick’s gold production for full-year 2025. The company’s attributable gold production fell around 17% year over year to roughly 3.26 million ounces in 2025. The company provided a tepid forecast for 2026, with attributable gold production expected to be in the range of 2.9-3.25 million ounces. Weak production is expected to weigh on the company’s performance in the near term.
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. 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 0.9% at the current stock price. Its payout ratio is 14%. Backed by strong cash flows and sound financial health, the company's dividend is perceived as safe and reliable.
NEM saw lower gold production for the fourth quarter of 2025, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 24% year-over-year decline in gold production to 1.45 million ounces, although increasing modestly from the prior quarter. The company also reported a roughly 14% year-over-year decline in gold production in 2025, reaching 5.89 million ounces.
The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline. Lower production is also expected to lead to higher unit costs in 2026. NEM expects AISC 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.
Price Performance and Valuation of B & NEM
B stock has surged 111.7% in a year, while NEM stock has racked up a gain of 111% compared with the Zacks Mining – Gold industry’s growth of 84.8%.
B is currently trading at a forward 12-month earnings multiple of 11.37, lower than its five-year median. This represents a roughly 10.4% discount when stacked up with the industry average of 12.69X.
Newmont is trading at a premium to Barrick. The NEM stock is currently trading at a forward 12-month earnings multiple of 12.74, lower than its five-year median and modestly above the industry.
How Does Zacks Consensus Estimate Compare for B & NEM?
The Zacks Consensus Estimate for B’s 2026 sales and EPS implies a year-over-year rise of 17.2% and 49.2%, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days.
The consensus estimate for NEM’s 2026 sales and EPS implies year-over-year growth of 13.2% and 28.2%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
B or NEM: Which is a Better Pick?
Both B and NEM currently have a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Barrick and Newmont are well-positioned to benefit from still-elevated gold prices. They have a strong pipeline of development projects and solid financial health and remain committed to driving shareholder value. However, both companies face headwinds from higher costs and weaker production. Barrick appears to have an edge over Newmont due to its more attractive valuation and higher earnings growth projections. Investors seeking exposure to the gold space might consider Barrick as the more favorable option at this time.