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Management’s Discussion and Analysis
48 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
North America Copper Mines Product Revenues and Production Costs
By-Product Co-Product Method
Year Ended December 31, 2008 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments shown below $ 4,382 $ 4,382 $ 892 $ 72 $ 5,346
Site production and delivery, before net noncash and nonrecurring costs
shown below 2,681 2,326 374 35 2,735
By-product credits
a
(910) – – – –
Treatment charges 134 130 – 4 134
Net cash costs 1,905 2,456 374 39 2,869
Depreciation, depletion and amortization 753 664 83 6 753
Noncash and nonrecurring costs, net 743
c
701 39 3 743
Total costs 3,401 3,821 496 48 4,365
Revenue adjustments, primarily for pricing on prior period open sales and hedging (71) (71) – – (71)
Idle facility and other non-inventoriable costs (85) (83) (2) – (85)
Gross profit $ 825 $ 407 $ 394 $ 24 $ 825
Reconciliation to Amounts Reported
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 5,346 $ 2,735 $ 753
Net noncash and nonrecurring costs per above N/A 743
c
N/A
Treatment charges per above N/A 134 N/A
Revenue adjustments, primarily for pricing on prior period open sales and hedging per above (71) N/A N/A
Eliminations and other (10) 96 17
North America copper mines 5,265 3,708 770
South America copper mines 4,166 1,854 511
Indonesia mining 3,412 1,792 222
Africa mining – 16 6
Molybdenum 2,488 1,629 192
Rod & Refining 5,557 5,527 8
Atlantic Copper Smelting & Refining 2,341 2,276 35
Corporate, other & eliminations (5,433) (5,604) 38
As reported in FCX’s consolidated financial statements $ 17,796 $ 11,198
d
$ 1,782
a. Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Includes charges totaling $661 million for LCM inventory adjustments.
d. Includes LCM inventory adjustments of $782 million.