Two Gold Giants Surge Toward Historic Valuations in 2025

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As gold prices continue their record-breaking rally in 2025, two of the world's largest gold producers are experiencing unprecedented growth, with both companies seemingly aiming to achieve historic market capitalizations.

Zijin Gold International: Record-Breaking IPO Success

Zijin Gold International Co. Ltd. (2259:HKG) completed what became the world's second-largest initial public offering of 2025, raising HK$25 billion (US$3.2 billion) in Hong Kong. Trading commenced on September 29 after being delayed one day due to Super Typhoon Ragasa, according to a Reuters report on September 18.

The company's market debut proved spectacular. Zijin Gold's shares climbed 68% to close at HK$120.60 on the first trading day, boosting its valuation to HK$316.5 billion (US$41 billion), as reported by Mining.com on October 1. This performance marked the best opening day globally for an IPO of that size since 2021, according to data compiled by Bloomberg.

Company Background and Operations

Zijin Gold International, established in 2007, operates all of Zijin Mining Group's gold mines outside China. The company has mines spanning Central Asia to Australia, Africa, and South America, according to a CNBC report on September 30.

The company engages in the full value chain of gold mining, from exploration and development to processing, smelting, refining, and sales.

"A US$24 billion market cap for Zijin Gold is reasonable," said David Blennerhassett, a strategist of Ballingal Investment Advisors.

According to a Yahoo Finance report on September 13, Zijin Gold International produced 1.5 million ounces of gold in 2024, with 26.1 million ounces of reserves, according to data compiled by market researcher Frost & Sullivan.

The company's average annual gold output grew 21.4% every year between 2022 and 2024, making it the world's 11th biggest producer in 2024 and the fastest-growing gold producer globally during that period.

Financial Performance

Zijin Gold's 2024 net profit more than doubled to US$481.37 million (HK$3.74 billion), as sales volume grew 5.7% to 1.23 million ounces, while the average selling price surged 22.8% to US$2,288 per ounce, the Yahoo Finance report noted.

The company said in its prospectus that it is planning to use the IPO proceeds over the next five years to upgrade existing mines. Additionally, the company stated it expects global gold demand to grow steadily at a compound annual growth rate of 3.2% from 2024 to 2030.

Strategic Investors and Valuation

Cornerstone investors subscribed to about US$1.6 billion worth of shares.  Singapore wealth fund GIC and private equity firm Hillhouse each purchased US$150 million worth of shares, while asset managers BlackRock and Schroders each took US$120 million worth. A wholly owned unit of industry peer Zhaojin Mining also subscribed to US$30 million worth of shares.

Morgan Stanley and CITIC Securities served as the joint sponsors of the offering.

Investors paid about 20% less per ounce of Zijin's reserves compared to the world's largest mining firms, and 26% below valuations of similarly-sized competitors, according to a Bloomberg Intelligence analyst cited in a Yahoo Finance report on September 18.

"A US$24 billion market cap for Zijin Gold is reasonable," said David Blennerhassett, a strategist of Ballingal Investment Advisors, who publishes on SmartKarma, in a research note. "This is a total bull market for gold plays. Momentum is strong. You have long-only support," he added.

Newmont Corporation: Approaching US$100 Billion Valuation

Newmont Corp. (NEM:NYSE; NGT:TSX; NEM:ASX), the world's largest gold producer, is having a spectacular 2025, with the stock up more than 130% year to date as of early October, according to analyst reports.

As of October 2025, the company has achieved a market capitalization of US$95.41 billion, according to CompaniesMarketCap.com, positioning it to potentially become the first gold mining company to reach a US$100 billion valuation.

Operational and Financial Performance

Newmont reported results for the second quarter of 2025. The company produced approximately 1.5 million attributable gold ounces and generated an all-time record quarterly free cash flow of US$1.7 billion, according to a Newmont news release on July 24, 2025.

"Newmont delivered a strong second quarter, producing approximately 1.5 million attributable gold ounces and generating an all-time record quarterly free cash flow of US$1.7 billion, underscoring the strength of our world-class portfolio and the disciplined execution of the commitments we shared at the beginning of the year," said Tom Palmer, Newmont's Chief Executive Officer, in the release.

The company generated US$2.4 billion in cash flow from operations during the quarter. Adjusted EBITDA stood at US$3.0 billion, with an adjusted net income of US$1.43 per share. The company maintained a strong balance sheet with US$6.2 billion in cash at the end of the quarter.

Gold all-in sustaining costs were reported at US$1,593 per ounce on a co-product basis and US$1,375 per ounce on a by-product basis, representing a 4% year-over-year reduction in costs, according to a Yahoo Finance report on July 25.

Share Repurchasing Program

In conjunction with its second quarter results, Newmont announced an additional US$3.0 billion share repurchase program, bringing the total authorization to US$6.0 billion. The company declared a dividend of US$0.25 per share for the second quarter of 2025.

"Our board approved an additional US$3 billion share repurchase program, doubling the total authorization to US$6 billion, demonstrating the confidence that we have in our business and our commitment to rewarding our shareholders with predictable dividends and ongoing share repurchases in 2025 and beyond," Palmer stated in the release.

Portfolio Optimization

Newmont completed the sale of all non-core operations and its 70% interest in the Havieron project as of April 15, 2025, according to a Newmont news release on July 24, 2025. Total gross proceeds from announced transactions are expected to reach up to US$4.3 billion including contingent payments and closing adjustments, the release stated.

The company expects over US$3.0 billion in after-tax cash proceeds from the divestment program in 2025, according to the July 24 release. This program included six operations and two projects from its Australian, Ghanaian and North American business units, the release noted.

Company Portfolio

Newmont's portfolio includes operations in the United States, Canada, Mexico, Peru, Suriname, Australia, Papua New Guinea, and Ghana. The company is expected to produce approximately 5.6 million ounces of gold in 2025 from its core mines, according to a Morningstar report. The company also produces material amounts of copper, silver, zinc, and lead as byproducts, with byproducts representing around 15% of forecast midcycle revenue from 2029.

As of December 31, 2024, Newmont had about two decades of gold reserves, along with significant byproduct reserves, the Morningstar report noted.

Analyst Upgrades and Price Targets

In September, RBC Capital Markets analyst Josh Wolfson upgraded Newmont to Outperform from Sector Perform and raised his price target to US$95 from US$66, according to a MarketScreener report on September 10.

The RBC upgrade highlights improved fundamentals and portfolio quality following the company's 2023 acquisition of Newcrest Mining, reported in a Newmont news release on November 6, 2023. The Newcrest acquisition brought high-quality, long-life assets, including porphyry copper-gold systems like Cadia and Red Chris, which offer large, long-duration ore bodies with copper by-product credits that cushion all-in sustaining costs, according to a NAI 500 analysis.

Newmont has an average rating of overweight and a mean price target of US$75.93, according to analysts polled by FactSet, the MarketScreener report stated.

Ownership and Share Structure

According to Refinitiv, 0.09% of Newmont is owned by management and insiders. Strategic investors hold 0.19%. Most of the stock, 80.33% is held by institutional investors. 

The rest is retail. 

Refinitiv reports that the company has a market cap of US$97 billion, and trades in the 52-week range between US$$36.86 and US$89.37.

Gold Market Outlook

Both companies could possibly benefit from an exceptionally favorable gold market environment. Gold has been on a rally in 2025, with the spot price reaching record highs throughout the year.

At the end of trading on September 30, the spot gold price was a record US$3,865 per ounce, having risen more than 40% year to date, as reported Reuters on September 30. Bullion rose 11.5% in September and was on pace for its largest monthly percentage gain since August 2011.

The U.S. government shutdown and expectations of U.S. Federal Reserve rate cuts have been driving prices. Other contributing factors, noted a Sept. 29 Investing News Network article, include strong central bank buying, global geopolitical uncertainty and concerns about the U.S. dollar and other fiat currencies.

Goldman Sachs predicts gold will reach US$4,000 per ounce by mid-2026 due to strong demand from central banks and easing by the Fed, the latter supporting ETF demand for gold, a September 30 article noted.

"Our rationale is that emerging market central banks remain significantly underweight gold compared to their developed market counterparts and are gradually increasing allocations as part of a broader diversification strategy," according to Research Analyst Lina Thomas. Goldman Sachs expects central banks to continue amassing gold for another three years.

Deutsche Bank also raised its gold forecast for 2026, as reported by Reuters on September 17. Deutsche Bank expects an average gold price next year of US$4,000, a US$300 increase over its previous estimate in April. Deutsche expects strong central bank demand, potential U.S. dollar weakness, and another rate-easing cycle by the Fed to support gold prices.

Two Gold Producers Experiencing Growth 

Gold mining valuations have increased alongside broader trends in the precious metals sector. Hong Kong has seen IPO proceeds reach more than US$26 billion in 2025, a four-year high, according to Bloomberg Intelligence estimates cited in a Mining.com report on October 1. Zijin Gold's listing was the biggest globally since Contemporary Amperex Technology Co. Ltd.'s US$5.3 billion offering, which was also in Hong Kong, the Mining.com report noted.

The rally in gold has been accompanied by a wave of gold producers raising funds offshore. PT Merdeka Gold Resources began trading in Jakarta in September after raising more than US$280 million in Indonesia's largest IPO of the year, according to the Mining.com report.

Kenny Tang Sing-hing, the chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, stated in a Yahoo Finance report on September 13 that there is likely to be strong interest among investors for gold mining companies.

"Many investors are keen to increase exposure to gold as part of [their] asset diversification amid expectations of rounds of U.S. interest rate cuts and risks of heightened inflation combined with weak economic growth," Tang said. "Investing in gold miners is one way to achieve this."

Zijin Gold International and Newmont Corporation represent two of the world's leading gold producers experiencing growth during the current precious metals market conditions.