IKN

Thy sin’s not accidental

The Buenaventura (BVN) 3q12 results: It’s costs, baby, costs.

The BVN 3q12 numbers are out and here’s the story in three words: Costs are up.

Now for three charts, first op income versus op costs

Here’s the costs dataset isolated, done so because it’s the one that matters today:

So to do the math for you, here’s what it’s done to gross revenues

Bottom line: It’s getting more expensive to mine in Peru. Remember that.

UPDATE: Just one more chart, because you see the costs pressure even more clearly if we consider the evolution of the Costs of Sales line item, which excludes costs derived from depreciation, amortization, royalties and exploration.

Y’see? That’s what it costs to mine in Peru

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