Freeport-McMoRan 2008 Annual Report Download - page 58

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Management’s Discussion and Analysis
56 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
Indonesia Mining Product Revenues and Production Costs
By-Product Co-Product Method
Year Ended December 31, 2008 Method Copper Gold Silver Total
(In millions)
Revenues, after adjustments shown below $ 2,628 $ 2,628 $ 1,025 $ 50 $ 3,703
Site production and delivery, before net noncash and nonrecurring costs
shown below 1,762 1,252 487 23 1,762
Gold and silver credits (1,075) – – – –
Treatment charges 268 190 74 4 268
Royalty on metals 113 80 31 2 113
Net cash costs 1,068 1,522 592 29 2,143
Depreciation and amortization 222 158 61 3 222
Noncash and nonrecurring costs, net 30 22 8 – 30
Total costs 1,320 1,702 661 32 2,395
Revenue adjustments, primarily for pricing on prior period open sales 90 90 – – 90
PT Smelting intercompany profit 17 12 5 – 17
Gross profit $ 1,415 $ 1,028 $ 369 $ 18 $ 1,415
Reconciliation to Amounts Reported
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 3,703 $ 1,762 $ 222
Net noncash and nonrecurring costs per above N/A 30 N/A
Less: Treatment charges per above (268) N/A N/A
Less: Royalty per above (113) N/A N/A
Revenue adjustments, primarily for pricing on prior period open sales per above 90 N/A N/A
Indonesia mining 3,412 1,792 222
North America copper mines 5,265 3,708 770
South America copper mines 4,166 1,854 511
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
a
$ 1,782
a. Includes LCM inventory adjustments of $782 million.