Northern Star vs Newmont: Which ASX Gold Stock Looks More Attractive?

Northern Star Resources and Newmont are two leading gold companies listed on the ASX, with recent developments highlighting different aspects of their businesses. Northern Star has recently responded to an indicative takeover proposal from Gold Fields, while Newmont has reported strong production, revenue and cash flow in its latest quarterly results.

Northern Star Resources Limited (ASX: NST)

Northern Star Resources Limited (ASX: NST) has recently attracted attention following an unsolicited takeover proposal from Gold Fields.

On 28 September 2026, Northern Star responded to media speculation regarding a potential takeover and confirmed that it had received a confidential, opportunistic, unsolicited, conditional and non-binding indicative proposal from Gold Fields.

The proposal was received on 14 September 2026 and involved Gold Fields acquiring 100% of Northern Star's fully paid ordinary shares through a scheme of arrangement.

Under the proposal, Northern Star shareholders would receive 0.3125 new Gold Fields shares for each Northern Star share, issued to Australian holders as CHESS Depositary Interests expected to be quoted on the ASX, together with A$7.25 in cash per share.

Based on Gold Fields' closing share price on 11 September 2026, the proposal implied a value of approximately A27perNorthernStarshare,animpliedequityvalueofA38.7 billion and a 15% premium to Northern Star's 30-day VWAP.

However, following a 25% decline in Gold Fields' share price on 25 September, the implied consideration fell to A25.19perNorthernStarshare,representinga14%premiumandanimpliedequityvalueofA36.1 billion.

Northern Star's board and its advisers rejected the proposal based on its terms.

Northern Star currently has a market capitalisation of approximately $33.44 billion and an annual fully franked dividend yield of 2.34%.

Investors comparing Northern Star with other companies in the sector can also explore our analysis of ASX gold stocks

Newmont Corporation (ASX: NEM)

Newmont Corporation (ASX: NEM) provides another perspective on the large-scale gold sector, with its latest results highlighting strong production and cash generation.

On 10 August 2026, Newmont and Barrick reached an agreement involving excluded properties, including Barrick's Fourmile and Newmont's Fiberline and Mike developments, being contributed to the Nevada Gold Mines joint venture. The agreement also concluded all outstanding disputes, with Newmont paying Barrick US$1.95 billion.

Newmont's latest quarterly results were reported for the quarter ended June 2026.

The company produced attributable gold of 1.293 million ounces during the quarter, while the average realised gold price was US4,414perounce.RevenuewasapproximatelyUS6.12 billion, while net income attributable to shareholders reached US$2.2 billion.

Adjusted net income was approximately US$2.25 billion, with diluted EPS of $2.06 and adjusted diluted EPS of $2.10.

Newmont also generated approximately US2.9billioninoperatingcashflowandUS2.2 billion in free cash flow. Capital expenditure was 719million,whilethecompanyendedthequarterwithapproximatelyUS9 billion in cash and cash equivalents.

Newmont currently has a market capitalisation of approximately $174.75 billion.

For another perspective on major gold companies, investors can also explore ASX 200 gold stocks.

Northern Star vs Newmont: Valuation and Long-Term Potential

Both Northern Star and Newmont have significant exposure to the gold market, but their current valuations differ.

Northern Star has a trailing 12-month price-to-book ratio of 2.13x, compared with an industry median of 1.82x.

Newmont has a trailing 12-month price-to-book ratio of 3.47x, compared with an industry median of 2.40x.

The comparison also extends beyond individual company valuations. Investors looking for income-focused exposure can explore Top ASX dividend-paying gold stocks.

For investors seeking broader exposure rather than selecting individual gold companies, ASX gold ETFs provide another way to access the sector.

Based on the current market scenarios and valuation, Northern Star has relatively more potential for long-term value creation, subject to execution risk.