Freeport-McMoRan 2011 Annual Report Download - page 54

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52 | FREEPORT-McMoRan COPPER & GOLD INC.
We show adjustments for prior period open sales as separate
line items. Because these adjustments do not result from current
period sales, we have reected these separately from revenues
on current period sales. Noncash and other costs consist of items
such as stock-based compensation costs, write-os of equipment
and/or unusual charges. ey are removed from site production
and delivery costs in the calculation of unit net cash costs. As
discussed above, gold, molybdenum and other metal revenues
at copper mines are reected as credits against site production
and delivery costs in the by-product method. Following are
presentations under both the by-product and co-product methods
together with reconciliations to amounts reported in our
consolidated nancial statements.
North America Copper Mines Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments $ 4,968 $ 4,968 $ 546 $ 111 $ 5,625
Site production and delivery, before net noncash
and other costs shown below 2,213 1,987 238 46 2,271
By-product credits
a
(599) — — — —
Treatment charges 138 132 — 6 138
Net cash costs 1,752 2,119 238 52 2,409
Depreciation, depletion and amortization 264 247 13 4 264
Noncash and other costs, net 84 81 2 1 84
Total costs 2,100 2,447 253 57 2,757
Revenue adjustments (1) (1) — — (1)
Idle facility and other non-inventoriable costs (82) (80) (2) — (82)
Gross profit $ 2,785 $ 2,440 $ 291 $ 54 $ 2,785
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 5,625 $ 2,271 $ 264
Treatment charges N/A 138 N/A
Net noncash and other costs N/A 84 N/A
Revenue adjustments (1) N/A N/A
Idle facility and other non-inventoriable costs N/A 82 N/A
Eliminations and other 9 54 15
North America copper mines 5,633 2,629 279
South America mining 5,258 1,905 258
Indonesia mining 5,046 1,902 215
Africa mining 1,289 591 140
Molybdenum 1,424 1,036 60
Rod & Refining 5,549 5,527 8
Atlantic Copper Smelting & Refining 2,984 2,991 40
Corporate, other & eliminations (6,303) (6,683) 22
As reported in FCX’s consolidated financial statements $ 20,880 $ 9,898 $ 1,022
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
MANAGEMENT’S DISCUSSION AND ANALYSIS