Barrick Gold Corporation (USA) (ABX): More Trouble is about to Hit Gold Miners

There is even more pain to come

Recent earnings estimates for each of the three miners above have not yet been adjusted to reflect the write-downs or even the recent decline in the price of gold. Barrick Gold Corporation (USA) (NYSE:ABX) is expected to earn $3.16 per share for 2013, according to current estimates, although this is down 40% from the $5.30 predicted at the beginning of the year and does not reflect the recent Pascua-Lama write-down or the recent gold price collapse.

Furthermore, Newcrest’s estimates for 2013 have been slashed 50% since the beginning of the year, and that doesn’t reflect further write-downs or a lower price of gold. Finally, Newmont Mining Corp (NYSE:NEM) has cut estimates by 35%.  And like the others that doesn’t take into account any further write-downs.  In fact, the company is not expected to grow earnings for the next two years.

Foolish summary

All in all gold miners have not had it easy during the last few months and the whole situation is about to get worse.  And that’s because the value of mines will continue to be written down and growth estimates will continue to dry up to reflect falling gold prices. Moreover, with a crippling asset write-down forecast ahead, it’s possible, many miners may lose money over the next few quarters. Take a look for yourself, see if you agree.

The article More Trouble is about to Hit Gold Miners originally appeared on Fool.com and is written by Rupert Hargreaves.

Fool contributor Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Rupert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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