Freeport-McMoRan 2011 Annual Report Download - page 59

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2011 ANNUAL REPORT | 57
South America Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2009 Method Copper Other Total
(In millions)
Revenues, excluding adjustments $ 3,768 $ 3,768 $ 167
a
$ 3,935
Site production and delivery, before net noncash
and other costs shown below 1,512 1,429 91 1,520
By-product credits (159) — — —
Treatment charges 206 206 — 206
Net cash costs 1,559 1,635 91 1,726
Depreciation, depletion and amortization 275 267 8 275
Noncash and other costs, net 28 28 — 28
Total costs 1,862 1,930 99 2,029
Revenue adjustments, primarily for pricing on
prior period open sales 109 109 — 109
Other non-inventoriable costs (31) (26) (5) (31)
Gross profit $ 1,984 $ 1,921 $ 63 $ 1,984
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 3,935 $ 1,520 $ 275
Treatment charges (206) N/A N/A
Net noncash and other costs N/A 28 N/A
Revenue adjustments, primarily for pricing on
prior period open sales 109 N/A N/A
Other non-inventoriable costs N/A 31 N/A
Eliminations and other 1 (16) —
South America mining 3,839 1,563 275
North America copper mines 3,264 1,911 280
Indonesia mining 5,908 1,505 275
Africa mining 389 315 66
Molybdenum 847 660
b
49
Rod & Refining 3,356 3,336 8
Atlantic Copper Smelting & Refining 1,892 1,895 36
Corporate, other & eliminations (4,455) (4,179) 25
As reported in FCX’s consolidated financial statements $ 15,040 $ 7,006
b
$ 1,014
a. Includes gold sales of 90 thousand ounces ($982 per ounce average realized price) and silver sales of 3.0 million ounces ($14.88 per ounce average realized price); also includes molybdenum
sales of 2 million pounds ($7.74 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.
b. Includes LCM molybdenum inventory adjustments of $19 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS