Barrick Mining vs. Newmont: Which Gold Heavyweight Has More Glitter?

Core Insights - Barrick Mining Corporation and Newmont Corporation are leading gold mining companies with extensive global operations, making them relevant for investors amid rising gold prices driven by geopolitical tensions and economic uncertainties [1] Gold Market Overview - Gold prices reached record highs last year, driven by global trade tensions, increased demand for safe-haven assets, a weaker U.S. dollar, strong central bank buying, and expectations of interest rate cuts by the Federal Reserve [2][3] - Gold surged approximately 65% last year, currently trading above $4,700 per ounce, supported by sustained central bank purchases and geopolitical risks [3] Barrick Mining Corporation - Barrick is advancing key growth projects, including Goldrush, Pueblo Viejo expansion, and Reko Diq, which are expected to significantly boost production [5][6] - The Goldrush mine aims for 400,000 ounces of annual production by 2028, while the Reko Diq project is projected to produce 460,000 tons of copper and 520,000 ounces of gold annually [6] - Barrick's liquidity position is strong, with cash and equivalents around $5 billion and operating cash flows of approximately $2.4 billion, up 105% year over year [8] - The company has authorized a $1 billion share repurchase program, reflecting confidence in its financial health [9] - Barrick's cash costs per ounce increased by around 3% year over year, with all-in-sustaining costs (AISC) rising to $1,538 due to lower production and higher costs [12][13] - The company offers a dividend yield of 1.4% with a payout ratio of 32%, indicating sustainability [11] Newmont Corporation - Newmont is investing in growth projects like Ahafo North and Cadia Panel Caves, which are expected to enhance production capacity [14][15] - Ahafo North achieved commercial production in October 2025, with an expected annual output of 275,000 to 325,000 ounces of gold [15] - Newmont has divested non-core assets, generating approximately $470 million in cash proceeds, and anticipates $3 billion from its 2025 divestiture program [16][17] - The company has a robust liquidity position with $9.6 billion in total liquidity and $5.6 billion in cash, alongside a free cash flow of $1.6 billion, more than doubling year over year [18] - Newmont has distributed over $5.7 billion to shareholders through dividends and share repurchases in the past two years, maintaining a low payout ratio of 17% [19] - However, Newmont experienced a 15% year-over-year decline in gold production for the third quarter, attributed to strategic divestments and operational challenges [20] Stock Performance and Valuation - Barrick's stock has surged 204.6% over the past year, while Newmont's stock has increased by 173.9%, both outperforming the Zacks Mining - Gold industry's growth of 153.9% [23] - Barrick is trading at a forward earnings multiple of 13.65, representing an 8.4% discount to the industry average, while Newmont trades at a premium with a multiple of 14.65 [24][25] Future Outlook - The Zacks Consensus Estimate projects Barrick's 2026 sales and EPS to rise by 20.9% and 57.2%, respectively, while Newmont's estimates imply growth of 10.5% and 22.7% [29][30] - Both companies are well-positioned to benefit from strong gold prices, but Barrick may have an edge due to its attractive valuation and higher growth projections [32][34]