Freeport-McMoRan 2008 Annual Report Download - page 61

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Management’s Discussion and Analysis
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 59
Henderson Molybdenum Mine Product Revenues and Production Costs
Years Ended December 31, 2008 2007
a
(In millions)
Revenues $ 1,182 $ 853
Site production and delivery, before net noncash and nonrecurring costs
shown below 216 137
Net cash costs 216 137
Depreciation, depletion and amortization 172 80
Noncash and nonrecurring costs, net 7
b
2
Total costs 395 219
Gross profit
c
$ 787 $ 634
Reconciliation to Amounts Reported
Production Depreciation,
and Depletion and
Year Ended December 31, 2008 Revenues Delivery Amortization
(In millions)
Totals presented above $ 1,182 $ 216 $ 172
Net noncash and nonrecurring costs per above N/A 7
b
N/A
Henderson mine 1,182 223 172
Other molybdenum operations and eliminations
d
1,306 1,406
e
20
Molybdenum 2,488 1,629 192
North America copper mines 5,265 3,708 770
South America copper mines 4,166 1,854 511
Indonesia mining 3,412 1,792 222
Africa mining – 16 6
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
f
$ 1,782
Year Ended December 31, 2007
(In millions)
Totals presented above $ 853 $ 137 $ 80
Net noncash and nonrecurring costs per above N/A 2 N/A
Henderson mine 853 139 80
Other molybdenum operations and eliminations
d
893 1,148 14
Molybdenum 1,746 1,287 94
North America copper mines 4,093 2,166 499
South America copper mines 3,879 1,277 378
Indonesia mining 4,808 1,388 199
Africa mining – 10 2
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 period from March 20, 2007, through December 31, 2007, which represents the results of the Henderson molybdenum mine under FCX management.
b. Includes charges totaling $1 million for LCM inventory adjustments.
c. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum segment includes profits on sales
as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
d. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced as a by-product at our North and South America
copper mines.
e. Includes LCM inventory adjustments of $100 million.
f. Includes LCM inventory adjustments of $782 million.