Freeport-McMoRan 2008 Annual Report Download - page 59

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Management’s Discussion and Analysis
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 57
By-Product Co-Product Method
Year Ended December 31, 2007 Method Copper Gold Silver Total
(In millions)
Revenues, after adjustments shown below $ 3,777 $ 3,777 $ 1,490 $ 48 $ 5,315
Site production and delivery, before net noncash and nonrecurring costs
shown below 1,342 954 376 12 1,342
Gold and silver credits (1,538) – – – –
Treatment charges 385 274 108 3 385
Royalty on metals 133 94 38 1 133
Net cash costs 322 1,322 522 16 1,860
Depreciation and amortization 199 141 56 2 199
Noncash and nonrecurring costs, net 46 33 12 1 46
Total costs 567 1,496 590 19 2,105
Revenue adjustments, primarily for pricing on prior period open sales 11 11 – – 11
PT Smelting intercompany profit 13 10 3 – 13
Gross profit $ 3,234 $ 2,302 $ 903 $ 29 $ 3,234
Reconciliation to Amounts Reported
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 5,315 $ 1,342 $ 199
Net noncash and nonrecurring costs per above N/A 46 N/A
Less: Treatment charges per above (385) N/A N/A
Less: Royalty per above (133) N/A N/A
Revenue adjustments, primarily for pricing on prior period open sales per above 11 N/A N/A
Indonesia mining 4,808 1,388 199
North America copper mines 4,093 2,166 499
South America copper mines 3,879 1,277 378
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