Freeport-McMoRan 2013 Annual Report Download - page 68

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MANAGEMENT’S DISCUSSION AND ANALYSIS
66 | FREEPORT-McMoRan
South America Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2012 Method Copper Other Total
(In millions)
Revenues, excluding adjustments $ 4,462 $ 4,462 $ 355
a
$ 4,817
Site production and delivery, before net noncash
and other costs shown below 1,995
b
1,846 173 2,019
By-product credits (331) — — —
Treatment charges 202 202 — 202
Net cash costs 1,866 2,048 173 2,221
Depreciation, depletion and amortization 287 272 15 287
Noncash and other costs, net 110 75 35 110
Total costs 2,263 2,395 223 2,618
Revenue adjustments, primarily for pricing on prior period open sales 106 106 — 106
Gross profit $ 2,305 $ 2,173 $ 132 $ 2,305
Copper sales (millions of recoverable pounds) 1,245 1,245
Gross profit per pound of copper:
Revenues, excluding adjustments $ 3.58 $ 3.58
Site production and delivery, before net noncash
and other costs shown below 1.60
b
1.49
By-product credits (0.26) —
Treatment charges 0.16 0.16
Unit net cash costs 1.50 1.65
Depreciation, depletion and amortization 0.23 0.22
Noncash and other costs, net 0.09 0.06
Total unit costs 1.82 1.93
Revenue adjustments, primarily for pricing on prior period open sales 0.09 0.09
Gross profit per pound $ 1.85 $ 1.74
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 4,817 $ 2,019 $ 287
Treatment charges (202) — —
Net noncash and other costs — 110 —
Revenue adjustments, primarily for pricing on prior period open sales 106 — —
Eliminations and other 7 (15) —
South America mining 4,728 2,114 287
Other mining & eliminations
c
13,275 8,265 885
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. Includes gold sales of 82 thousand ounces ($1,673 per ounce average realized price) and silver sales of 3.2 million ounces ($30.33 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 $16 million ($0.01 per pound) associated with labor agreement costs at Candelaria.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.