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AEM vs. KGC: Which Gold Miner Deserves a Spot in Your Portfolio?
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Key Takeaways
Agnico Eagle is advancing projects like Hope Bay and Odyssey, backed by strong cash flows.
Kinross is expanding production through projects including Round Mountain Phase X and Bald Mountain Redbird 2.
AEM trades at 15.24X forward earnings vs. KGC at 11.71X, with both showing rising EPS estimates.
Agnico Eagle Mines Limited (AEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations. While gold prices have pulled back sharply from their January 2026 highs, they remain supportive.
Bullion prices rocketed 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 near $4,400 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 crashing oil prices 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 to near $4,700 per ounce on continued geopolitical tensions despite the U.S.-Iran ceasefire extension.
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 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. 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. Production from East Gouldie is expected to commence from the ramp in the first quarter of 2026. AEM also continued to work on a feasibility study at San Nicolas. At Detour Lake, AEM advanced the development of the exploration ramp during the fourth quarter.
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 $2.1 billion in the fourth quarter, up around 87% from the year-ago quarter. Operating cash flow for full-year 2025 was a record $6.8 billion, driven by operational efficiencies.
AEM recorded fourth-quarter free cash flow of roughly $1.3 billion, more than double the prior-year figure of $570 million. For the full year, free cash flow was a record $4.4 billion, up 105% year over year. The upside 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 $950 million in 2025, ending the year with $196 million.
The company ended 2025 with a significant net cash position of nearly $2.7 billion, driven by the increase in cash position and reduction in debt. AEM also returned around $1.4 billion to its shareholders in 2025 through dividends and share buybacks. It raised its quarterly dividend by 12.5% to 45 cents per share. AEM offers a dividend yield of 0.9% at the current stock price. It has a five-year annualized dividend growth rate of 2.8%. AEM has a payout ratio of 19%.
Higher production costs warrant caution, as they will likely weigh on AEM’s profitability. Its all-in-sustaining costs (AISC) — a critical cost metric for miners — was $1,517 per ounce in the fourth quarter, marking a roughly 10% increase from the prior quarter and a 15% year-over-year rise. AISC increased year over year due to higher total cash costs and an uptick in sustaining capital expenditures. Total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and higher than $994 in the prior quarter. Total cash costs of $979 per ounce and AISC of $1,339 per ounce for 2025 were also above the top end of AEM’s guidance due to increased royalty costs.
AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges. Cash costs are expected to increase in 2026, partly due to higher royalty costs, cost inflation (including higher labor and electricity costs) and lower grades across certain mines.
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, the projects are expected to contribute significantly to Kinross’ U.S. production profile.
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.
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 0.5% at the current stock price. It has a payout ratio of 8%.
Kinross is also exposed to headwinds from higher production costs. It saw fourth-quarter attributable all-in-sustaining costs (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.
AEM & KGC: Price Performance, Valuation & Other Comparisons
AEM stock has jumped 70.6% in the past year, while KGC stock has rallied 122.2% compared with the Zacks Mining – Gold industry’s increase of 75.2%.
Image Source: Zacks Investment Research
AEM is currently trading at a forward 12-month earnings multiple of 15.24, which represents a roughly 30.7% premium when stacked up with the industry average of 11.66X.
Image Source: Zacks Investment Research
Kinross looks more attractively priced than Agnico Eagle. KGC stock is currently trading at a forward 12-month earnings multiple of 11.71, modestly above the industry average.
Image Source: Zacks Investment Research
KGC’s return on equity (ROE) of 28.2% is higher than AEM’s 18.1%. This reflects Kinross’ efficient use of shareholder funds in generating profits.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for AEM & KGC?
The Zacks Consensus Estimate for AEM’s 2026 sales and EPS implies a year-over-year rise of 38.6% and 59.4%, 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 indicates year-over-year growth of 26.8% and 50.5%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Both AEM and KGC are well-positioned to benefit from the current favorable gold price environment, each demonstrating strong financial performance and commitment to shareholder returns. However, both face headwinds from higher production costs. Kinross appears to have an edge over Agnico Eagle due to its more attractive valuation. KGC’s higher ROE also indicates that it is more effectively utilizing shareholder funds. Investors seeking exposure to the gold space might consider Kinross as the more favorable option at this time.
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AEM vs. KGC: Which Gold Miner Deserves a Spot in Your Portfolio?
Key Takeaways
Agnico Eagle Mines Limited (AEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) are two prominent players in the gold mining space with global operations. While gold prices have pulled back sharply from their January 2026 highs, they remain supportive.
Bullion prices rocketed 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 near $4,400 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 crashing oil prices 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 to near $4,700 per ounce on continued geopolitical tensions despite the U.S.-Iran ceasefire extension.
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 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. 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. Production from East Gouldie is expected to commence from the ramp in the first quarter of 2026. AEM also continued to work on a feasibility study at San Nicolas. At Detour Lake, AEM advanced the development of the exploration ramp during the fourth quarter.
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 $2.1 billion in the fourth quarter, up around 87% from the year-ago quarter. Operating cash flow for full-year 2025 was a record $6.8 billion, driven by operational efficiencies.
AEM recorded fourth-quarter free cash flow of roughly $1.3 billion, more than double the prior-year figure of $570 million. For the full year, free cash flow was a record $4.4 billion, up 105% year over year. The upside 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 $950 million in 2025, ending the year with $196 million.
The company ended 2025 with a significant net cash position of nearly $2.7 billion, driven by the increase in cash position and reduction in debt. AEM also returned around $1.4 billion to its shareholders in 2025 through dividends and share buybacks. It raised its quarterly dividend by 12.5% to 45 cents per share.
AEM offers a dividend yield of 0.9% at the current stock price. It has a five-year annualized dividend growth rate of 2.8%. AEM has a payout ratio of 19%.
Higher production costs warrant caution, as they will likely weigh on AEM’s profitability. Its all-in-sustaining costs (AISC) — a critical cost metric for miners — was $1,517 per ounce in the fourth quarter, marking a roughly 10% increase from the prior quarter and a 15% year-over-year rise. AISC increased year over year due to higher total cash costs and an uptick in sustaining capital expenditures. Total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and higher than $994 in the prior quarter. Total cash costs of $979 per ounce and AISC of $1,339 per ounce for 2025 were also above the top end of AEM’s guidance due to increased royalty costs.
AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges. Cash costs are expected to increase in 2026, partly due to higher royalty costs, cost inflation (including higher labor and electricity costs) and lower grades across certain mines.
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, the projects are expected to contribute significantly to Kinross’ U.S. production profile.
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.
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 0.5% at the current stock price. It has a payout ratio of 8%.
Kinross is also exposed to headwinds from higher production costs. It saw fourth-quarter attributable all-in-sustaining costs (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.
AEM & KGC: Price Performance, Valuation & Other Comparisons
AEM stock has jumped 70.6% in the past year, while KGC stock has rallied 122.2% compared with the Zacks Mining – Gold industry’s increase of 75.2%.
AEM is currently trading at a forward 12-month earnings multiple of 15.24, which represents a roughly 30.7% premium when stacked up with the industry average of 11.66X.
Kinross looks more attractively priced than Agnico Eagle. KGC stock is currently trading at a forward 12-month earnings multiple of 11.71, modestly above the industry average.
KGC’s return on equity (ROE) of 28.2% is higher than AEM’s 18.1%. This reflects Kinross’ efficient use of shareholder funds in generating profits.
How Does Zacks Consensus Estimate Compare for AEM & KGC?
The Zacks Consensus Estimate for AEM’s 2026 sales and EPS implies a year-over-year rise of 38.6% and 59.4%, 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 indicates year-over-year growth of 26.8% and 50.5%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
AEM or KGC: Which Is a Better Pick?
Both AEM and KGC currently carry 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 AEM and KGC are well-positioned to benefit from the current favorable gold price environment, each demonstrating strong financial performance and commitment to shareholder returns. However, both face headwinds from higher production costs. Kinross appears to have an edge over Agnico Eagle due to its more attractive valuation. KGC’s higher ROE also indicates that it is more effectively utilizing shareholder funds. Investors seeking exposure to the gold space might consider Kinross as the more favorable option at this time.