NEM vs. KGC: Which Gold Mining Stock Should You Bet on Now?

Newmont Corporation NEM and Kinross Gold Corporation KGC are two prominent players in the gold mining space with global operations and diversified portfolios. Although gold prices have seen a sharp correction from the record highs reached in January 2026, they remain at supportive levels. Against this backdrop, comparing these two major industry players is particularly relevant for investors seeking exposure to the precious metals sector.A combination of geopolitical tensions, a weaker U.S. dollar, tariff-related uncertainty and concerns about the Federal Reserve’s independence had propelled bullion to an all-time high of nearly $5,600 per ounce in late January. Since then, gold has retreated significantly due to inflation concerns triggered by a surge in crude oil prices amid Middle East tensions, with prices falling to $4,500 per ounce around the end of May. The decline has continued this month, with prices recently falling near $4,000 per ounce, marking their lowest level in nearly eight months. The latest weakness reflects growing expectations of interest rate hikes and a stronger U.S. dollar, even as inflation fears eased following an interim agreement between the United States and Iran. Meanwhile, in its most recent policy meeting, the Federal Reserve left interest rates unchanged, but signaled a potential rate increase before the year's end. Even after the steep correction, gold prices remain roughly 21% higher than a year ago.  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 NewmontNewmont 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 Newmont’s 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. Output is expected to be 315,000 ounces this year, with a ramp-up to full capacity.NEM recently received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave Project, marking a major milestone in the planned transformation of the Red Chris Mine from an open-pit operation to a large-scale block-cave mine. The approvals move the project closer to a final investment decision, which Newmont expects to make later this year. Newmont has also divested non-core businesses as it shifts its strategic focus to Tier 1 assets.   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 the first quarter of 2026, Newmont had robust liquidity of roughly $12.8 billion, including cash and cash equivalents of around $8.8 billion. Its free cash flow surged 161% year over year to a record $3.1 billion in the first quarter, led by an increase in net cash from operating activities. Net cash from operating activities amounted to $3.8 billion in the first quarter, up from $2 billion in the year-ago quarter. NEM has distributed $3.4 billion to its shareholders through dividends and share repurchases in 2025. It has returned $2.7 billion to its shareholders since Feb. 19, 2026. Newmont has executed buybacks of $6 billion under the earlier authorized share repurchase programs, including $2.4 billion since the fourth-quarter 2025 earnings call. Its board has approved an additional $6 billion repurchase program. NEM offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 12%.Newmont also remains committed to deleveraging, reducing debt by roughly $3.4 billion in 2025. It reduced debt by an additional $42 million in the first quarter, resulting in a strong net cash position of $3.2 billion.  NEM, however, saw lower gold production for the first quarter, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces. Newmont expects second-quarter 2026 production to be below the first-quarter level. The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine.The Case for KinrossKinross 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 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. They are expected to contribute 3 million ounces of life-of-mine production to KGC’s portfolio, adding grades and mine lives.   KGC has strong liquidity of $3.9 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. The Toronto Stock Exchange, in March, accepted the notice to renew its normal course issuer bid program. KGC repurchased shares worth roughly $250 million in the first quarter and $300 million this year through April 29. 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. The company also logged attributable free cash flow of $837.5 million in the first quarter, marking the fourth straight quarter of record free cash flow. It ended the quarter with about $1.4 billion in net cash. In 2025, the company repaid $700 million of debt. With $1.7 billion in available credit (as of March 31, 2026) 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 0.7% at the current stock price. It has a payout ratio of 7% with a five-year annualized dividend growth rate of roughly 2.4%.Despite these positives, KGC remains exposed to headwinds from higher production costs. Its attributable production cost of sales per gold equivalent ounce was $1,380 in the first quarter, up 33% from the prior-year quarter’s levels. The rise was partly due to higher royalty costs stemming from increased gold prices. It saw first-quarter attributable all-in-sustaining costs (AISC) — a critical cost metric for miners — of $1,732 per ounce, marking a 28% increase from the year-ago quarter. Kinross expects AISC to be $1,730 per ounce (+/-5%) for 2026, indicating a year-over-year increase from $1,571 per ounce in 2025, partly due to inflationary impacts. AISC is expected to be adversely impacted by cost inflation from elevated crude oil prices.Price Performance and Valuation of NEM & KGCNEM stock has rallied 68% in the past year, while KGC stock has gained 61.7% compared with the Zacks Mining – Gold industry’s increase of 41.5%. Image Source: Zacks Investment ResearchNEM is currently trading at a forward 12-month earnings multiple of 9.24. This represents a modest 1.8% premium when stacked up with the industry average of 9.08X. Image Source: Zacks Investment ResearchKinross is trading at a discount to Newmont. The KGC stock is currently trading at a forward 12-month earnings multiple of 8.27, below its industry average. Image Source: Zacks Investment ResearchHow Do Zacks Consensus Estimates Compare for NEM & KGC?The Zacks Consensus Estimate for NEM’s 2026 sales and EPS implies a year-over-year rise of 20.2% and 43.8%, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days. Image Source: Zacks Investment ResearchThe consensus estimate for KGC’s 2026 sales and EPS implies year-over-year growth of 33.2% and 58.2%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days. Image Source: Zacks Investment ResearchNEM or KGC: Which Stock is a Better Pick Now?NEM and KGC currently carry a Zacks Rank #3 (Hold) each, so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Both Newmont and Kinross are demonstrating strong financial performance and commitment to shareholder returns, supported by firm gold prices. Both have a strong pipeline of development projects and solid financial health. The companies are also seeing favorable estimate revisions. Kinross appears to have an edge over Newmont due to its more attractive valuation and higher growth projections. Investors seeking exposure to the gold space might consider KGC as the more favorable option at this time.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. 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