Freeport-McMoRan 2013 Annual Report Download - page 76

MANAGEMENT’S DISCUSSION AND ANALYSIS
74 | FREEPORT-McMoRan
Molybdenum Mines Product Revenues and Production Costs
Years Ended December 31, 2013
a
2012
a
2011
a
(In millions)
Revenues, excluding adjustments
b
$ 566 $ 484 $ 628
Site production and delivery, before net noncash and other costs shown below 303 210 209
Treatment charges and other 44 30 33
Net cash costs 347 240 242
Depreciation, depletion and amortization 82 33 37
Noncash and other costs, net 14 8 2
Total costs 443 281 281
Gross profit $ 123 $ 203 $ 347
Molybdenum sales (millions of recoverable pounds)
b
49 34 38
Gross profit per pound of molybdenum:
Revenues, excluding adjustments
b
$ 11.65 $ 14.27 $ 16.42
Site production and delivery, before net noncash and other costs shown below 6.24 6.19 5.46
Treatment charges and other 0.91 0.88 0.88
Unit net cash costs 7.15 7.07 6.34
Depreciation, depletion and amortization 1.68 0.97 0.96
Noncash and other costs, net 0.29 0.24 0.04
Total unit costs 9.12 8.28 7.34
Gross profit per pound $ 2.53 $ 5.99 $ 9.08
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 566 $ 303 $ 82
Treatment charges and other (44) — —
Net noncash and other costs — 14 —
Molybdenum mines 522 317 82
Other mining & eliminations
c
17,779 10,834 1,340
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
Year Ended December 31, 2012
Totals presented above $ 484 $ 210 $ 33
Treatment charges and other (30) — —
Net noncash and other costs — 8 —
Henderson mine 454 218 33
Climax mine 75 102 26
Molybdenum mines 529 320 59
Other mining & eliminations
c
17,474 10,059 1,113
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
Year Ended December 31, 2011
Totals presented above $ 628 $ 209 $ 37
Treatment charges and other (33) — —
Net noncash and other costs — 2 —
Henderson mine 595 211 37
Climax mine — 48 8
Molybdenum mines 595 259 45
Other mining & eliminations
c
20,277 9,642 970
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. The year 2013 includes the combined results of the Henderson and Climax mines; the years 2012 and 2011 reflect the results of only the Henderson mine as start-up activities were still underway at the Climax mine.
b. Reflects sales of the molybdenum mines’ production to FCX’s molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third
parties; as a result, FCX’s consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16. Also includes amounts associated with FCX’s molybdenum sales company, which includes
sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
Year Ended December 31, 2013