Freeport-McMoRan 2008 Annual Report Download - page 60

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Management’s Discussion and Analysis
58 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
By-Product Co-Product Method
Year Ended December 31, 2006 Method Copper Gold Silver Total
(In millions)
Revenues, after adjustments shown below $ 3,764 $ 3,764 $ 1,072 $ 47 $ 4,883
Site production and delivery, before net noncash and nonrecurring costs
shown below 1,235 952 271 12 1,235
Gold and silver credits (1,119) – – – –
Treatment charges 477 368 104 5 477
Royalty on metals 126 97 28 1 126
Net cash costs 719 1,417 403 18 1,838
Depreciation and amortization 184 142 40 2 184
Noncash and nonrecurring costs, net 44 34 10 – 44
Total costs 947 1,593 453 20 2,066
Revenue adjustments, primarily for pricing on prior period open sales 115
a
197 (69) (13) 115
PT Smelting intercompany profit (3) (2) (1) – (3)
Gross profit $ 2,929 $ 2,366 $ 549 $ 14 $ 2,929
Reconciliation to Amounts Reported
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 4,883 $ 1,235 $ 184
Net noncash and nonrecurring costs per above N/A 44 N/A
Less: Treatment charges per above (477) N/A N/A
Less: Royalty per above (126) N/A N/A
Revenue adjustments, primarily for pricing on prior period open sales per above 115 N/A N/A
Indonesia mining 4,395 1,279 184
Atlantic Copper Smelting & Refining 2,242 2,119 33
Corporate, other & eliminations (846) (873) 11
As reported in FCX’s consolidated financial statements $ 5,791 $ 2,525 $ 228
a. Includes a $69 million loss on the redemption of FCX’s Gold-Denominated Preferred Stock, Series II, and a $13 million loss on the redemption of FCX’s Silver-Denominated
Preferred Stock.