Freeport-McMoRan 2008 Annual Report Download - page 55

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Management’s Discussion and Analysis
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 53
By-Product Co-Product Method
March 20, 2007, through December 31, 2007
a
Method Copper Other
b
Total
(In millions)
Revenues, excluding adjustments shown below $ 3,882 $ 3,882 $ 123 $ 4,005
Site production and delivery, before net noncash and nonrecurring costs
shown below 1,078 1,040 52 1,092
By-product credits (109) – – –
Treatment charges 240 239 1 240
Net cash costs 1,209 1,279 53 1,332
Depreciation, depletion and amortization 377 364 13 377
Noncash and nonrecurring costs, net 171 170 1 171
Total costs 1,757 1,813 67 1,880
Revenue adjustments, primarily for pricing on prior period open sales 75 75 – 75
Other non-inventoriable costs (28) (27) (1) (28)
Gross profit $ 2,172 $ 2,117 $ 55 $ 2,172
Reconciliation to Amounts Reported for the Year Ended December 31, 2007
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 4,005 $ 1,092 $ 377
Net noncash and nonrecurring costs per above N/A 171 N/A
Less: Treatment charges per above (240) N/A N/A
Revenue adjustments, primarily for pricing on prior period open sales per above 75 N/A N/A
Purchased metal 179 179 N/A
Eliminations and other (140) (165) 1
South America copper mines 3,879 1,277 378
North America copper mines 4,093 2,166 499
Indonesia mining 4,808 1,388 199
Africa mining – 10 2
Molybdenum 1,746 1,287 94
Rod & Refining 5,140 5,119 7
Atlantic Copper Smelting & Refining 2,388 2,329 36
Corporate, other & eliminations (5,115) (5,049) 31
As reported in FCX’s consolidated financial statements $ 16,939 $ 8,527 $ 1,246
a. Reflects the results of the South America copper mines under FCX management.
b. Includes molybdenum, gold and silver product revenues and production costs.