Freeport-McMoRan 2013 Annual Report Download - page 64

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MANAGEMENT’S DISCUSSION AND ANALYSIS
62 | FREEPORT-McMoRan
North America Copper Mines Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2013 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments
$ 4,752 $ 4,752 $ 349 $ 106 $ 5,207
Site production and delivery, before net noncash
and other costs shown below
2,828 2,744 123 74 2,941
By-product credits
(342) — — — —
Treatment charges
155 151 — 4 155
Net cash costs 2,641 2,895 123 78 3,096
Depreciation, depletion and amortization
391 378 7 6 391
Noncash and other costs, net
202
c
200 1 1 202
Total costs
3,234 3,473 131 85 3,689
Revenue adjustments, primarily for pricing on prior period open sales
(4) (4) — — (4)
Gross profit
$ 1,514 $ 1,275 $ 218 $ 21 $ 1,514
Copper sales (millions of recoverable pounds)
1,416 1,416
Molybdenum sales (millions of recoverable pounds)
a
32
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments
$ 3.36 $ 3.36 $ 10.79
Site production and delivery, before net noncash
and other costs shown below
2.00
1.94 3.79
By-product credits
(0.24) — —
Treatment charges
0.11 0.11 —
Unit net cash costs
1.87 2.05 3.79
Depreciation, depletion and amortization
0.28 0.27 0.22
Noncash and other costs, net
0.14
c
0.14 0.04
Total unit costs
2.29 2.46 4.05
Revenue adjustments, primarily for pricing on prior period open sales
— — —
Gross profit per pound
$ 1.07 $ 0.90 $ 6.74
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 5,207 $ 2,941 $ 391
Treatment charges
— 155 —
Net noncash and other costs
— 202 —
Revenue adjustments, primarily for pricing on prior period open sales
(4) — —
Eliminations and other
(20) (32) 11
North America copper mines
5,183 3,266 402
Other mining & eliminations
d
13,118 7,885 1,020
Total mining
18,301 11,151 1,422
U.S. oil & gas operations
2,616 682 1,364
Corporate, other & eliminations
4 7 11
As reported in FCX’s consolidated financial statements
$ 20,921 $ 11,840 $ 2,797
a. Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
b. Includes gold and silver product revenues and production costs.
c. Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
d. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.