BlackRock Criticizes Gold Mining Companies Over $12 Billion Share Buyback Surge

A senior executive at BlackRock, Inc. (BLK) has criticized major gold producers for spending billions of dollars buying back their own shares rather than building new mines. Evy Hambro, head of natural resources at the asset manager, described recent share buyback programs as reckless capital allocation that lacks rigorous evaluation compared to new mining project investments.

Four leading gold producers—Barrick Mining Corporation (B), Newmont Corporation (NEM), AngloGold Ashanti PLC (AU), and Gold Fields Limited (GFI)—have launched stock repurchases worth a combined $12 billion. BlackRock holds significant equity stakes in each of the four miners. Hambro argued that companies perform extensive diligence before committing $1 billion toward mine construction, but fail to apply similar scrutiny when deploying equal funds on share repurchases.

Despite criticizing corporate capital allocation strategies, BlackRock maintains a positive long-term view on gold due to rising global government deficits and currency erosion. Investors will monitor whether gold miners pivot their capital spending toward development projects, especially as monetary policy shifts and interest rate expectations continue to drive near-term gold price swings.