Freeport-McMoRan 2008 Annual Report Download - page 57

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Management’s Discussion and Analysis
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 55
By-Product Co-Product Method
Year Ended December 31, 2006
a
Method Copper Other
b
Total
(In millions)
Revenues, excluding adjustments primarily for pricing on prior period open sales $ 3,413 $ 3,413 $ 91 $ 3,504
Site production and delivery, before net noncash and nonrecurring costs $ 918 $ 891 $ 27 $ 918
By-product credits (91) – – –
Treatment charges 194 194 – 194
Net cash costs $ 1,021 $ 1,085 $ 27 $ 1,112
Reconciliation to Amounts Reported by Phelps Dodge
Production
and
Revenues Delivery
(In millions)
Totals presented above $ 3,504 $ 918
Net noncash and nonrecurring costs N/A 2
Less: Treatment charges per above (194) N/A
Revenue adjustments, primarily for pricing on prior period open sales 94 N/A
Purchased metal 213 213
Eliminations and other (175) (168)
South America copper mines 3,442 965
North America copper mines 3,651 1,578
Molybdenum 1,748 1,257
Eliminations and other
c
3,069 3,007
As reported in Phelps Dodge consolidated financial results
d
$ 11,910 $ 6,807
a. Reflects Phelps Dodge pre-acquisition data. As the pre-acquisition data represents the results under Phelps Dodge management, such data is not necessarily indicative of what
past results would have been under FCX management or of future operating results.
b. Includes gold and silver product revenues and production costs.
c. Includes revenues and production and delivery costs associated with the PDIC manufacturing operation, which was sold by FCX on October 31, 2007.
d. Obtained from the Phelps Dodge Form 10-K for the year ended December 31, 2006. As the pre-acquisition data represents the results under Phelps Dodge management, such data
is not necessarily indicative of what past results would have been under FCX management or of future operating results.