Freeport-McMoRan 2008 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2008 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

Management’s Discussion and Analysis
24 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
CONSOLIDATED RESULTS
Years Ended December 31, 2008 2007 2006
(In millions, except per share amounts)
Financial Data
Revenues $ 17,796
a,b
$ 16,939
a,b,c
$ 5,791
a,d
Operating (loss) income (12,710)
a,b,e,f,g
6,555
a,b,c,g
2,869
a,d
(Loss) income from continuing operations applicable to common stock
h
(11,341) 2,734 1,396
Net (loss) income applicable to common stock
h
(11,341)
b,e,f,g,i
2,769
b,c,g,i
1,396
d,i
Diluted net (loss) income per share of common stock:
Continuing operations $ (29.72) $ 7.41 $ 6.63
Discontinued operations – 0.09 –
Diluted net (loss) income per share of common stock $ (29.72)
b,e,f,g,i
$ 7.50
b,c,g,i
$ 6.63
d,i
Diluted average common shares outstanding
j,k
382 397 221
Operating Data – Sales from Mines
Copper
Consolidated share (millions of recoverable pounds) 4,066 3,357 1,201
Average realized price per pound $ 2.69 $ 3.29
c
$ 3.13
Site production and delivery costs per pound
l
$ 1.51 $ 1.18 $ 1.03
Unit net cash costs per pound
l
$ 1.16 $ 0.76 $ 0.60
Gold
Consolidated share (thousands of recoverable ounces) 1,314 2,298 1,736
Average realized price per ounce $ 861 $ 682 $ 567
d
Molybdenum
Consolidated share (millions of recoverable pounds) 71 52 N/A
Average realized price per pound $ 30.55 $ 26.81 N/A
a. As discussed in Note 19, we have revised the presentation of our operating divisions to better reflect management’s view of our consolidated operations, and have also reclassified
amounts for 2007 to conform to the current year presentation. Following is a summary of revenues by operating division (in millions):
Years Ended December 31, 2008 2007 2006
North America copper mines $ 5,265 $ 4,093 $ –
South America copper mines 4,166 3,879 –
Indonesia mining 3,412 4,808 4,395
Africa mining – – –
Molybdenum 2,488 1,746 –
Rod & Refining 5,557 5,140 –
Atlantic Copper Smelting & Refining 2,341 2,388 2,242
Corporate, other & eliminations (5,433) (5,115) (846)
Total FCX revenues $ 17,796 $ 16,939 $ 5,791
Following is a summary of operating (loss) income by operating division (in millions):
Years Ended December 31, 2008 2007 2006
North America copper mines $ (11,522) $ 1,428 $ –
South America copper mines (694) 2,224 –
Indonesia mining 1,307 3,033 2,721
Africa mining (26) (12) –
Molybdenum (1,473) 353 –
Rod & Refining 2 14 –
Atlantic Copper Smelting & Refining 10 3 74
Corporate, other & eliminations (314) (488) 74
Total FCX operating (loss) income $ (12,710) $ 6,555 $ 2,869