AEM vs. NEM: Which Gold Mining Giant Should You Invest in Now? - The Globe and Mail

AI desk brief

Gold has retreated from a late-August high near $4,650/oz to about $4,300/oz after the Fed’s first rate hike in more than three years, with a stronger dollar and firmer oil prices adding pressure; despite that pullback, bullion is still roughly 15% higher year over year. The article argues the setup is still supportive for diversified senior miners, but near-term margins are being squeezed by higher funding conditions and rising operating costs.

Agnico Eagle (AEM) is presented as the higher-quality growth vehicle, backed by record 2025 operating cash flow of $6.8bn, Q2 free cash flow of about $1.3bn, and net cash of roughly $3.3bn, but it faces rising costs and an operational setback at Canadian Malartic’s Barnat pit. Q2 AISC was $1,459/oz, up about 14% y/y, and the Barnat issue is expected to cut H2 2026 output by 60,000-80,000 oz, keeping full-year production near the low end of 3.3-3.5Moz.

Newmont (NEM) is positioned as the larger balance-sheet story, with about $13bn liquidity, record Q2 FCF of $2.2bn, and a net cash position of $3.4bn, while continuing deleveraging and buybacks. However, attributable Q2 gold output fell 13% y/y to 1.29Moz and 2026 production is guided lower at about 5.26Moz versus 5.89Moz in 2025, reflecting transitions at Penasquito and Cadia.