NEM vs. AEM: Which Gold Mining Giant Should You Invest in Now?

By Anindya Barman | February 25, 2026, 8:56 AM

Newmont Corporation NEM and Agnico Eagle Mines Limited AEM are two prominent players in the gold mining space with global operations and diversified portfolios. While gold prices have fallen from their January 2026 highs, they remain favorable. Against this backdrop, comparing the two industry giants is particularly relevant for investors seeking exposure to the precious metals sector.

Heightened geopolitical strains, including the unrest in Iran with the possibility of U.S. intervention, a weaker U.S. dollar, fresh tariff threats and renewed 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 after hitting a four-year low. Bargain hunting following the massive selloff again pushed up prices to above $5,000 per ounce.

Gold gained strength recently, hitting a three-week high, supported by a weaker greenback, U.S. tariff uncertainties and geopolitical risks stemming from uncertainties over U.S.-Iran talks and a potential U.S. action. While prices have again retreated from that level, partly due to aggressive profit-taking and a rebound in the U.S. dollar, they remain elevated, currently hovering above $5,100 per ounce.

Sustained central-bank purchases, hopes of more interest rate cuts following the softer-than-anticipated inflation data, renewed uncertainties over President Donald Trump’s tariff policies and persistent safe-haven demand tied to U.S.-Iran tensions are likely to continue to support gold prices.

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 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. Production 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 0.8% at the current stock price. Its payout ratio is 14%, with a five-year annualized dividend growth rate of about -20.4%.

Newmont, however, faces headwinds from higher unit costs in 2026, partly due to lower gold production. Newmont 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 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 merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer. The integrated entity now has an extensive pipeline of development and exploration projects to drive sustainable growth. It also has the financial flexibility to fund a strong pipeline of growth projects.

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 doubling 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 0.7% at the current stock price. It has a five-year annualized dividend growth rate of 2.6%. AEM has a payout ratio of 19%.

Agnico Eagle remains exposed to higher production costs. Its AISC 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 up from $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. Higher production costs warrant caution, as they will likely weigh on AEM’s profitability.

NEM & AEM: Price Performance, Valuation & Other Comparisons

NEM stock has rallied 181.7% over the past year, while AEM stock has racked up a gain of 150.7% compared with the Zacks Mining – Gold industry’s increase of 156.3%.