Freeport-McMoRan 2011 Annual Report Download - page 66

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64 | FREEPORT-McMoRan COPPER & GOLD INC.
Reconciliation to Amounts Reported (continued)
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Year Ended December 31, 2009
Totals presented above $ 347 $ 148 $ 26
Treatment charges and other (30) N/A N/A
Net noncash and other costs N/A 1 N/A
Henderson mine 317 149 26
Other molybdenum operations and eliminations
c
530 511
d
23
Molybdenum 847 660 49
North America copper mines 3,264 1,911 280
South America mining 3,839 1,563 275
Indonesia mining 5,908 1,505 275
Africa mining 389 315 66
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
d
$ 1,014
a. Revenues and costs were adjusted to include freight and downstream conversion costs in net cash costs; gross profit was not affected by these adjustments.
b. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division 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.
c. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced at our North and South America copper mines.
d. Includes LCM molybdenum inventory adjustments of $19 million.
CAUTIONARY STATEMENT
Our discussion and analysis contains forward-looking statements
in which we discuss factors we believe may aect our future
performance. Forward-looking statements are all statements other
than statements of historical facts, such as those statements
regarding projected ore grades and milling rates, projected
production and sales volumes, projected unit net cash costs,
projected operating cash ows, projected capital expenditures,
exploration eorts and results, mine production and development
plans, the impact of deferred intercompany prots on earnings,
liquidity, other nancial commitments and tax rates, the impact of
copper, gold, molybdenum and cobalt price changes, reserve
estimates, potential prepayments of debt, future dividend
payments and potential share purchases. e words “anticipates,”
“may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,”
“intends,” “likely,” “will,” “should,” “to be,” and any similar
expressions are intended to identify those assertions as forward-
looking statements. e declaration of dividends is at the
discretion of our Board and will depend on our nancial results,
cash requirements, future prospects, and other factors deemed
relevant by the Board.
We caution readers that forward-looking statements are not
guarantees of future performance and our actual results may dier
materially from those anticipated, projected or assumed in the
forward-looking statements. Important factors that can cause our
actual results to dier materially from those anticipated in the
forward-looking statements include commodity prices, mine
sequencing, production rates, industry risks, regulatory changes,
political risks, the potential eects of violence in Indonesia, the
resolution of administrative disputes in the DRC, weather- and
climate-related risks, labor relations, environmental risks, litigation
results, currency translation risks and other factors described in
more detail under the heading “Risk Factors” in our Annual
Report on Form 10-K for the year ended December31,2011, led
with the SEC.
Investors are cautioned that many of the assumptions on which
our forward-looking statements are based are likely to change aer
our forward-looking statements are made, including for example
commodity prices, which we cannot control, and production
volumes and costs, some aspects of which we may or may not be
able to control. Further, we may make changes to our business
plans that could or will aect our results. We caution investors that
we do not intend to update our forward-looking statements more
frequently than quarterly notwithstanding any changes in our
assumptions, changes in our business plans, our actual experience,
or other changes, and we undertake no obligation to update any
forward-looking statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS