IKN

More matter with less art

Chart of the day is…

…one that tracks the massive capex hikes at Barrick’s (ABX) Pascua Lama project on the Chile/Argentina border.

Here’s today’s 2q12 results NR that includes the latest hike call, here’s the chunk of script:

         Pascua-Lama Cost Increase

– Due to lower than expected productivity and persistent inflationary and other cost pressures, as previously disclosed, the company initiated a detailed review of the cost and schedule estimates for Pascua-Lama in the second quarter. Preliminary results currently indicate an approximate 50-60 percent increase in capital costs from the top end of the previously announced estimate of $4.7-$5.0 billion, with first production expected in mid-2014. The company will provide a further progress update with third quarter results.

Holy crap, an $8Bn can of worms.

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