Freeport-McMoRan 2013 Annual Report Download - page 75

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 73
Africa Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Cobalt Total
(In millions)
Revenues, excluding adjustments
a
$ 1,059 $ 1,059 $ 253 $ 1,312
Site production and delivery, before net noncash
and other costs shown below 444 393 141 534
Cobalt credits
b
(165) — — —
Royalty on metals 24 20 4 24
Net cash costs 303 413 145 558
Depreciation, depletion and amortization 140 120 20 140
Noncash and other costs, net 57 49 8 57
Total costs 500 582 173 755
Revenue adjustments, primarily for pricing on prior period open sales (1) (1) 2 1
Gross profit $ 558 $ 476 $ 82 $ 558
Copper sales (millions of recoverable pounds) 283 283
Cobalt sales (millions of contained pounds) 25
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustments
a
$ 3.74 $ 3.74 $ 9.99
Site production and delivery, before net noncash
and other costs shown below 1.57 1.39 5.58
Cobalt credits
b
(0.58) — —
Royalty on metals 0.08 0.07 0.16
Unit net cash costs 1.07 1.46 5.74
Depreciation, depletion and amortization 0.50 0.42 0.78
Noncash and other costs, net 0.20 0.18 0.32
Total unit costs 1.77 2.06 6.84
Revenue adjustments, primarily for pricing on prior period open sales — — 0.06
Gross profit per pound $ 1.97 $ 1.68 $ 3.21
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 1,312 $ 534 $ 140
Royalty on metals (24) — —
Net noncash and other costs — 57 —
Revenue adjustments, primarily for pricing on prior period open sales 1 — —
Africa mining 1,289 591 140
Other mining & eliminations
c
19,583 9,310 875
Total mining 20,872 9,901 1,015
U.S. oil & gas operations — — —
Corporate, other & eliminations 8 (3) 7
As reported in FCX’s consolidated financial statements $ 20,880 $ 9,898 $ 1,022
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.