ARMN vs. BTG: Which Gold Mining Stock is the Better Pick Now?

Core Insights - Aris Mining Corporation (ARMN) and B2Gold Corp. (BTG) are both international gold mining companies with operations in the Americas, focusing on emerging markets [1] - Gold prices have increased approximately 26% this year, reaching a peak of $3,500 per ounce in April 2025, driven by geopolitical tensions and central bank purchases [2] - Both companies are positioned to benefit from the favorable gold price environment, but they face challenges from rising costs [24] Aris Mining Highlights - Aris Mining has shown an 8% year-over-year increase in gold production for Q1, aiming for a full-year production guidance of 230,000 to 275,000 ounces [4][8] - The Segovia Operations in Colombia are crucial for production growth, with expansion projects expected to increase production rates significantly in the second half of 2025 [5] - The company has a strong balance sheet with a cash balance of $240 million and generated $40 million in cash flow in Q1, supporting its growth initiatives [7] - However, Aris Mining's all-in-sustaining costs (AISC) increased to $1,570 per ounce, indicating a decline in cost efficiency [8][9] B2Gold Highlights - B2Gold is on track to produce between 970,000 and 1,075,000 ounces of gold in 2025, benefiting from new projects like the Goose Project and the Gramalote Project [12][13] - The company has a solid financial position with cash and cash equivalents of $330 million and a low long-term debt-to-capitalization ratio of 11.4% [14] - B2Gold offers a dividend yield of 2.2% and has a payout ratio of 44%, indicating a commitment to returning value to shareholders [14] - The company's AISC rose to $1,533 per ounce, reflecting cost inflation pressures across its operations [15] Stock Performance and Valuation - Year-to-date, Aris Mining's stock has increased by 89.1%, while B2Gold's stock has risen by 45.9%, compared to the Zacks Mining – Gold industry's increase of 56.6% [16] - Aris Mining is trading at a forward 12-month earnings multiple of 4.44, which is a 67.2% discount to the industry average of 13.52X [19] - B2Gold is trading at a forward earnings multiple of 7.15, which is below the industry average but at a premium to Aris Mining [20] Earnings Growth Estimates - The Zacks Consensus Estimate for Aris Mining's 2025 sales and EPS indicates a year-over-year growth of 55.7% and 226.5%, respectively [21] - B2Gold's 2025 sales and EPS estimates imply year-over-year growth of 56.2% and 231.3%, respectively [22]