Freeport-McMoRan 2013 Annual Report Download - page 65

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 63
North America Copper Mines Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2012 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments $ 4,908 $ 4,908 $ 468 $ 91 $ 5,467
Site production and delivery, before net noncash
and other costs shown below 2,572 2,357 227 60 2,644
By-product credits (487) — — — —
Treatment charges 161 147 — 14 161
Net cash costs 2,246 2,504 227 74 2,805
Depreciation, depletion and amortization 346 323 18 5 346
Noncash and other costs, net 138 134 3 1 138
Total costs 2,730 2,961 248 80 3,289
Revenue adjustments, primarily for pricing on prior period open sales 4 4 — — 4
Gross profit $ 2,182 $ 1,951 $ 220 $ 11 $ 2,182
Copper sales (millions of recoverable pounds) 1,347 1,347
Molybdenum sales (millions of recoverable pounds)
a
36
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments $ 3.64 $ 3.64 $ 13.00
Site production and delivery, before net noncash
and other costs shown below 1.91 1.75 6.32
By-product credits (0.36) — —
Treatment charges 0.12 0.11 —
Unit net cash costs 1.67 1.86 6.32
Depreciation, depletion and amortization 0.26 0.24 0.48
Noncash and other costs, net 0.10 0.10 0.09
Total unit costs 2.03 2.20 6.89
Revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 —
Gross profit per pound $ 1.62 $ 1.45 $ 6.11
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 5,467 $ 2,644 $ 346
Treatment charges — 161 —
Net noncash and other costs — 138 —
Revenue adjustments, primarily for pricing on prior period open sales 4 — —
Eliminations and other 15 (10) 14
North America copper mines 5,486 2,933 360
Other mining & eliminations
c
12,517 7,446 812
Total mining 18,003 10,379 1,172
U.S. oil & gas operations — — —
Corporate, other & eliminations 7 3 7
As reported in FCX’s consolidated financial statements $ 18,010 $ 10,382 $ 1,179
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. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.