Freeport-McMoRan 2013 Annual Report Download - page 73

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 71
Africa Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2013 Method Copper Cobalt Total
(In millions)
Revenues, excluding adjustments
a
$ 1,457 $ 1, 457 $ 20 5 $ 1,662
Site production and delivery, before net noncash
and other costs shown below
649 614 111 725
Cobalt credits
b
(131) — — —
Royalty on metals
29 26 3 29
Net cash costs
547 640 114 754
Depreciation, depletion and amortization
246 220 26 246
Noncash and other costs, net
29 26 3 29
Total costs
822 886 143 1,029
Revenue adjustments, primarily for pricing on prior period open sales
2 2 2 4
Gross profit
$ 637 $ 573 $ 64 $ 637
Copper sales (millions of recoverable pounds)
454 454
Cobalt sales (millions of contained pounds)
25
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustments
a
$ 3.21 $ 3.21 $ 8.02
Site production and delivery, before net noncash
and other costs shown below
1.43 1.35 4.35
Cobalt credits
b
(0.29) — —
Royalty on metals
0.07 0.06 0.14
Unit net cash costs
1.21 1.41 4.49
Depreciation, depletion and amortization
0.54 0.48 1.00
Noncash and other costs, net
0.06 0.06 0.11
Total unit costs
1.81 1.95 5.60
Revenue adjustments, primarily for pricing on prior period open sales
— — 0.09
Gross profit per pound
$ 1.40 $ 1.26 $ 2.51
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 1,662 $ 725 $ 246
Royalty on metals
(29) — —
Net noncash and other costs
— 29 —
Revenue adjustments, primarily for pricing on prior period open sales
4 — —
Africa mining
1,637 754 246
Other mining & eliminations
c
16,664 10,397 1,176
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 point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.