Freeport-McMoRan 2013 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2013 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 65
South America Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2013 Method Copper Other Total
(In millions)
Revenues, excluding adjustments
$ 4,366 $ 4,366 $ 374
a
$ 4,740
Site production and delivery, before net noncash
and other costs shown below
2,023
b
1,875 170 2,045
By-product credits
(352) — — —
Treatment charges
226 226 — 226
Net cash costs
1,897 2,101 170 2,271
Depreciation, depletion and amortization
346 323 23 346
Noncash and other costs, net
49 44 5 49
Total costs
2,292 2,468 198 2,666
Revenue adjustments, primarily for pricing on prior period open sales
(28) (28) — (28)
Gross profit
$ 2,046 $ 1,8 70 $ 176 $ 2,046
Copper sales (millions of recoverable pounds)
1,325 1,325
Gross profit per pound of copper:
Revenues, excluding adjustments
$ 3.30 $ 3.30
Site production and delivery, before net noncash
and other costs shown below
1.53
b
1.42
By-product credits
(0.27) —
Treatment charges
0.17 0.17
Unit net cash costs
1.43 1.59
Depreciation, depletion and amortization
0.26 0.24
Noncash and other costs, net
0.04 0.03
Total unit costs
1.73 1.86
Revenue adjustments, primarily for pricing on prior period open sales
(0.03) (0.03)
Gross profit per pound
$ 1.54 $ 1.41
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 4,740 $ 2,045 $ 346
Treatment charges
(226) — —
Net noncash and other costs
— 49 —
Revenue adjustments, primarily for pricing on prior period open sales
(28) — —
Eliminations and other
(1) (25) —
South America mining
4,485 2,069 346
Other mining & eliminations
c
13,816 9,082 1,076
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. Includes gold sales of 102 thousand ounces ($1,350 per ounce average realized price) and silver sales of 4.1 million ounces ($21.88 per ounce average realized price).
Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b. Includes charges totaling $36 million ($0.03 per pound) associated with labor agreement costs at Cerro Verde.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.