Freeport-McMoRan 2011 Annual Report Download - page 63

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2011 ANNUAL REPORT | 61
Africa Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Cobalt Total
(In millions)
Revenues, excluding adjustments
a
$ 1,059 $ 1,059 $ 25 3 $ 1,312
Site production and delivery, before net noncash
and other costs shown below 444 393 141 534
Cobalt credits
b
(165) — — —
Royalty on metals 24 20 4 24
Net cash costs 303 413 145 558
Depreciation, depletion and amortization 140 120 20 140
Noncash and other costs, net 45 39 6 45
Total costs 488 572 171 743
Revenue adjustments, primarily for pricing on
prior period open sales (1) (1) 2 1
Other non-inventoriable costs (12) (10) (2) (12)
Gross profit $ 558 $ 476 $ 82 $ 558
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,312 $ 534 $ 140
Royalty on metals (24) N/A N/A
Net noncash and other costs N/A 45 N/A
Revenue adjustments, primarily for pricing on
prior period open sales 1 N/A N/A
Other non-inventoriable costs N/A 12 N/A
Africa mining 1,289 591 140
North America copper mines 5,633 2,629 279
South America mining 5,258 1,905 258
Indonesia mining 5,046 1,902 215
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. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.
MANAGEMENT’S DISCUSSION AND ANALYSIS