Very interesting study released last week by SNL Metals Economics Group.
The report looked at costs in the copper industry over the last few decades. And found some startling numbers.
The most interesting figures had to do with costs. The group estimates that over the last 20 years, the average capital cost for copper production capacity has risen on average by 15% per year, with "much of the increase evident since 2008."
That's an incredible amount of cost inflation for producers to keep up with. And the problems aren't just with capital costs.
The group estimates that the average cost to find and produce a pound of copper has risen from $0.76 in 2003 to $3.30 in 2012.
THAT IS INSANE INFLATION!