Freeport-McMoRan 2011 Annual Report Download - page 10

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2011
Cash Unit Costs
Site Production & Delivery $ 1.72
By-product Credits (0.89)
Treatment Charges 0.14
Royalties 0.04
Unit Net Cash Costs $ 1.01
Consolidated Unit Cash Costs
per lb of copper
Consolidated Results
Freeport-McMoRan Copper & Gold Inc.’s (FCX) consolidated copper sales for 2011 totaled
3.7 billion pounds at an average realized price of $3.86 per pound, compared with 2010 sales
of 3.9 billion pounds at an average realized price of $3.59 per pound. FCX’s consolidated gold
sales for 2011 totaled 1.4 million ounces at an average realized price of $1,583 per ounce, compared
with 2010 sales of 1.9 million ounces at an average realized price of $1,271 per ounce. Sales
of copper and gold in 2011 were adversely aected by labor disruptions and the temporary
suspension of milling operations at PT Freeport Indonesia from damage to the concentrate and
fuel pipelines. Lower copper sales volumes from Indonesia in 2011 were partly oset by higher
sales volumes in North America.
FCX’s consolidated molybdenum sales for 2011 totaled 79 million pounds at an average
realized price of $16.98 per pound, compared with 2010 sales of 67 million pounds at an
average realized price of $16.47 per pound. Higher molybdenum sales volumes in 2011
reected improved demand.
Consolidated copper sales volumes for 2012 are expected to approximate 3.8 billion pounds of
copper, 1.2 million ounces of gold and 80 million pounds of molybdenum. Higher projected
copper sales volumes in 2012 primarily reect higher production in North America and Indonesia,
partly oset by slightly lower production in South America. Lower gold sales volumes for 2012
are because of mine sequencing in Indonesia. Molybdenum sales in 2012 are expected to be similar
to 2011, with higher production from primary molybdenum mines oset by lower production
from the North and South America copper mines.
OPERATIONAL OVERVIEW
Consolidated Copper
Reserve Breakdown
34% North America
33% South America
26% Indonesia
7% Africa
8 | FREEPORT-MMR COPPER & GOLD INC.