Barrick Gold Corporation (USA) (ABX), Eldorado Gold Corp (USA) (EGO): These 5 Gold Majors Down a Shocking 60%+

AngloGold Ashanti Limited (ADR) (NYSE:AU) is facing downgrades from analysts, according this note from Seekingalpha on June 13:

“AngloGold Ashanti is cut to Sell from Hold with a $12.70 price target (down from $20) as part of the firm’s downgrade of an already bearish view on the outlook for gold and silver prices. The firm cites AU’s high all-in cost base and the need to restructure, which may be difficult to achieve with South Africa’s highly unionized labor force.”

Are Any of These Five Beaten Down Majors a Buy?

The majors will be a buy once there’s visibility of an end of write-downs. If the majors can slash costs AND the gold price increases by 15%-20%, that would allow moderate earnings power once again. In the meantime, write-downs, dividend cuts and resource nationalism headlines offer little to be excited about.

The article These 5 Gold Majors Down a Shocking 60%+ originally appeared on Fool.com and is written by Peter Epstein.

Peter Epstein has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Peter 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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