B vs. AEM: Which Gold Mining Stock Should You Bet on Now?
Barrick Mining Corporation B and Agnico Eagle Mines Limited AEM are two leading players in the gold mining space with global operations and diversified portfolios. While gold prices have fallen from their April 2025 peak, they remain favorable, aided by geopolitical tensions, and are currently hovering close to the $3,400 per ounce level. Against this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals sector.Gold prices have rallied roughly 29% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22. Increased purchases by central banks and geopolitical tensions worsened by the Israel-Iran conflict are factors expected to help the yellow metal sustain the rally. 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.
Barrick is well-placed to benefit from the progress in key growth projects that should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are being executed. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production. 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 project has progressed to a prefeasibility study on the back of a successful drilling program. 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 first production is expected by the end of 2028.In October 2024, Barrick announced the commencement of the development of a Super Pit at its Lumwana copper mine in Zambia. The Super Pit Expansion entails doubling the present process circuit's throughput and substantially boosting mining volumes. Upon completion, the $2 billion project has the potential to transform Lumwana into a long-term, high-yielding, top-25 copper producer and Tier One copper mine. The expansion is expected to deliver 240,000 tons of copper production annually over the life of the mine.Barrick has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. At the end of first-quarter 2025, Barrick's cash and cash equivalents were around $4.1 billion. It generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year. Free cash flow surged to around $375 million in the first quarter from $32 million in the prior-year quarter. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick's board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program during the first quarter. Barrick offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 28% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 5.1%.Barrick, however, is challenged by higher costs, which may eat into its margins. Its cash costs per ounce of gold and all-in-sustaining costs (AISC) — the most important cost metric of miners — increased around 16% and 20% year over year, respectively, in the first quarter. AISC increased due to higher total cash costs per ounce and higher minesite sustaining capital expenditures. For 2025, the company projects total cash costs per ounce of $1,050-$1,130 and AISC in the range of $1,460-$1,560 per ounce. These projections suggest a year-over-year increase at the midpoint of the respective ranges. Increased mine-site sustaining capital spending and higher labor costs may lead to higher costs.
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 coming years. The processing plant expansion at Meliadine was completed and commissioned in the second half of 2024, with mill capacity expected to increase to roughly 6,250 tons per day in 2025.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 allow 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 jumped roughly 33% year over year to record $1,044 million in the first quarter.AEM generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and strong operational results. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. Its long-term debt-to-capitalization is just around 5%, lower than Barrick's 12.3%. AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. AEM offers a dividend yield of 1.3% at the current stock price. It has a five-year annualized dividend growth rate of 10.3%. AEM has a payout ratio of 32%.Despite these positives, Agnico Eagle is still exposed to higher production costs. In the first quarter, its total cash costs per ounce of gold were up modestly from the previous year to $903. While AISC declined in the quarter due to the deferral of certain sustaining capital expenditures, AEM projects the same to increase in the remainder of 2025. AEM forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While AEM is taking actions to control costs, the inflationary pressure is likely to continue over the near term, weighing on its profit margins and overall financial performance.
Year to date, Barrick stock has gained 36.3%, while AEM stock has rallied 56.8% compared with the Zacks Mining – Gold industry's increase of 55.4%.
Image Source: Zacks Investment Research
Barrick is currently trading at a forward 12-month earnings multiple of 10.73, lower than its five-year median. This represents a roughly 23.8% discount when stacked up with the industry average of 14.08X.
Image Source: Zacks Investment Research
Agnico Eagle is trading at a premium to Barrick. The AEM stock is currently trading at a forward 12-month earnings multiple of 20.27, above the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for B's 2025 sales and EPS implies a year-over-year rise of 13.7% and 43.7%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for AEM's 2025 sales and EPS implies year-over-year growth of 23.6% and 43%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Both B and AEM 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 Agnico Eagle are well-positioned to capitalize on the current gold price environment. Both have a strong pipeline of development projects, solid financial health and strong earnings growth prospects, and are seeing favorable estimate revisions. On the flip side, both are buffeted by higher production costs. AEM's higher dividend growth rate suggests that it may offer better investment prospects in the current market environment. AEM's lower leverage also indicates lesser financial risks. Investors seeking exposure to the gold space might consider Agnico Eagle as the more favorable option at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Barrick Mining Corporation (B) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Don't regulate us like radio, music streamer Spotify tells CRTC
OTTAWA — Music streamer Spotify says Canada's federal broadcast regulator shouldn't impose rules meant for radio on streaming services. Appearing before a CRTC hearing today, company representatives compared regulating Spotify like a radio station to treating Uber like a horse and buggy. In its written submission, Spotify argued the CRTC doesn't have the jurisdiction to extend rules governing commercial negotiations and disputes in the broadcast sector to online players. The CRTC is holding a hearing on market dynamics as part of its work to implement the Online Streaming Act, which updated broadcasting laws to capture online platforms. During previous hearings, large cable and broadcasting companies like Bell and Rogers called on the CRTC to loosen existing rules for traditional players. They're taking aim at regulations governing how cable channels must be packaged and disputes about carriage of cable channels. This report by The Canadian Press was first published June 20, 2025. Anja Karadeglija, The Canadian Press
Yahoo
34 minutes ago
- Yahoo
Defiance Silver Corp. Announces Closing of Brokered LIFE Offering and Concurrent Non-Brokered Offering for Total Gross Proceeds of C$16.5 Million
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) (the "Company", or "Defiance") is pleased to announce the closing of the Company's previously announced "best efforts" private placement (the "Brokered Offering") for gross proceeds of C$15,000,000, which includes the full exercise of the agent's option. Under the Offering, the Company sold 60,000,000 units of the Company (each, a "Unit") at a price of C$0.25 per Unit (the "Offering Price"). Each Unit consists of one common share of the Company (each, a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (a "Warrant Share") at a price of C$0.35 at any time on or before June 20, 2027. Red Cloud Securities Inc. (the "Agent") acted as sole agent and bookrunner in connection with the Brokered Offering. As consideration for their services in the Brokered Offering, the Agent received a cash commission of C$824,950 and were issued 3,299,800 non-transferable common share purchase warrants (the "Broker Warrants"). Each Broker Warrant is exercisable into one Common Share at the Offering Price at any time on or before June 20, 2027. The Company intends to use the net proceeds of the Brokered Offering for further exploration work on the Company's projects, to complete a mineral resource estimate at its San Acacio project, to make periodic cash option payments on its Tepal project, and to provide general working capital to support operations, as is more fully described in the amended offering document related to the Brokered Offering dated June 5, 2025. The Units were issued to Canadian purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions ("NI 45-106"), as amended by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Listed Issuer Financing Exemption") and to purchasers outside of Canada (including to purchasers resident in the United States pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended). The Common Shares and the Warrant Shares underlying the Units are immediately freely tradeable in accordance with applicable Canadian securities legislation if sold to purchasers resident in Canada. MI 61-101 Disclosure George Cavey, Vice President, Exploration and Director of the Company, subscribed under the Brokered Offering for 100,000 Units through its related entity, OreQuest Consultants Ltd, for a total consideration of $25,000 (the "Related Party Transaction"). The Related Party Subscription is considered to be a "related party transaction" of the Company for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). In completing the Related Party Subscription, the Company relied upon exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. Specifically, the Company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Subsection 5.5 (b) of MI 61-101 insofar as no securities of the Company are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the Company is exempt from the minority approval requirement in Section 5.6 of MI 61- 101 for the Related Party Subscription in reliance on Subsection 5.7(1)(a) of MI 61-101 as the fair market value of such Related Party Subscription, insofar as they involve interested parties, is not more than the 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing date of the Offering as the details of the Related Party Subscription was not settled until shortly prior to the closing of the Offering, and the Company wished to close the Offering on an expedited basis for sound business reasons. Concurrent Non-Brokered Offering As previously announced, the Company is pleased to announce the closing, concurrently with the Brokered Offering, of a non-brokered private placement (the "Non-Brokered Offering" and together with the Brokered Offering, the "Offerings") of 6,000,000 units of the Company (the "NB Units") at a price of C$0.25 per NB Unit for additional gross proceeds of up to C$1,500,000. Each NB Unit consists of one common share of the Company (each, a "NB Common Share") and one-half of one common share purchase warrant (each whole warrant, a "NB Warrant"). Each NB Warrant entitles the holder thereof to purchase one NB Common Share at a price of C$0.35 at any time on or before June 20, 2027. The NB Units will be offered by way of the "accredited investor" and "minimum amount investment" exemptions under NI 45-106. In connection with the closing of the Non-Brokered Offering, the Company paid a cash commission of $90,000 to an arm-length finder. In addition, the Company issued 360,000 non-transferable finder warrants (each, a "Finder Warrant") to the arm-length finder. Each Finder Warrant is exercisable into one NB Common Share at a price of C$0.25 at any time on or before June 20, 2027. The net proceeds of the Non-Brokered Offering will be used to provide general working capital. All of the foregoing securities issued under the Non-Brokered Offering are subject to a hold period of four months and day expiring on October 21, 2025. The Offerings remain subject to the final approval of the TSX Venture Exchange (the "TSXV"). This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or under any securities laws of any State of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws. About Defiance Silver Corp. Defiance Silver Corp. is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to expand the San Acacio and Tepal Projects to become premier Mexican silver and gold deposits. On behalf of Defiance Silver Corp. "Chris Wright" CEO & Chairman of the Board For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at info@ Suite 2900-550 Burrard StreetVancouver, BC V6C 0A3CanadaTel: +1 (604) 343-4677Email: info@ Disclaimer Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Information This news release contains statements that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws (collectively, "forward-looking information"). In particular, this press release contains forward-looking information relating to, among other things, the intended use of proceeds of the Offerings, and the final approval of the closing of the Brokered Offering by the TSXV. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Defiance's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information consists of statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Although Defiance believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws. THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
34 minutes ago
- New York Times
Senator Ron Johnson Resists G.O.P. Megabill, Warning It Will Swell Debt
President Trump had some blunt advice for Senator Ron Johnson, the Wisconsin Republican who had been publicly excoriating his signature tax and spending bill as a deficit-driving debacle, at a tense White House meeting this month. Be nice, the president told the businessman-turned-ultraconservative politician. Mr. Johnson immediately toned down his vocal drumbeat of criticism against the plan. But he still looms as a significant obstacle to the sweeping domestic policy bill that Senate Republicans hope to push through next week. Not only does he declare himself adamantly opposed to the current version, he is simultaneously undercutting the party's message that the legislation will not pile on to federal deficits. He is, however, trying to be nicer about it. 'I'm a pretty flexible, reasonable guy,' the sometimes disputatious, three-term Republican referred to on Capitol Hill as 'RonJohn' told reporters on Wednesday, drawing scoffs of disbelief. 'I am!' Mr. Johnson put his accounting background to work in a dense, 30-page report he released this week that rejects claims by the administration and Republican leaders that the combination of continued tax cuts, spending reductions in the range of $1.5 trillion over 10 years and new policies will spur growth to offset lost tax revenue. Under almost any scenario, his report says, deficits will continue to soar above $2 trillion per year, for a cumulative $20 trillion or more over the 10-year life span of the bill. That is in line with — though substantially more favorable than — estimates by the nonpartisan Congressional Budget Office and fiscal research groups that have found that the costs of the bill would swamp any growth it could create. Want all of The Times? Subscribe.
