BlackRock Criticizes Gold Miners for Reckless Share Buybacks
BlackRock global head Evy Hambro urged gold mining companies to prioritize production over multi-billion dollar share buyback programs during the FT Mining Summit.
Evy Hambro, global head of thematic and sector investing at BlackRock, criticized gold mining companies for reckless capital allocation regarding share buyback programs. Speaking at the FT Mining Summit, Hambro argued that companies are approving multi-billion dollar repurchases without a rigorous process, contrasting this with the detailed work performed when investing in new mines.
The criticism follows the announcement of approximately $12 billion in buybacks by Barrick Mining, Newmont, AngloGold Ashanti, and Gold Fields. Hambro urged miners to prioritize increasing future production over buybacks, particularly while share prices are at their peak.
Despite the criticism of corporate management, BlackRock remains bullish on gold prices. The asset manager cited massive global government debts and deficits as primary drivers for the long-term appreciation of real assets, noting that gold is likely one of the biggest beneficiaries of this trend.
