Freeport-McMoRan 2003 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2003 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 80

  • 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

2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 43
By-Product Co-Product Method
Year Ended December 31, 2001 Method Copper Gold Silver Total
(In Thousands)
Revenues $ 968,484 $ 968,484 $ 710,835 $ 15,995 $1,695,314
Site production and delivery 542,699 310,028 227,550 5,121 542,699
Gold and silver credits (726,830) — — — —
Treatment charges 254,485 145,380 106,704 2,401 254,485
Royalty on metals 24,302 13,883 10,190 229 24,302
Net cash production costs 94,656 469,291 344,444 7,751 821,486
Depreciation and amortization 251,835 143,866 105,593 2,376 251,835
Noncash and other 3,159 1,805 1,325 29 3,159
Total production costs 349,650 614,962 451,362 10,156 1,076,480
Adjustments, primarily for copper pricing on prior
period sales and silver hedging (2,413) (4,528) — 2,115 (2,413)
Gross profit $ 616,421 $ 348,994 $ 259,473 $ 7,954 $ 616,421
Pounds of copper sold (000) 1,399,100 1,399,100
Ounces of gold sold 2,644,800
Ounces of silver sold 3,782,600
Gross profit per pound of copper (cents)/per ounce of gold and silver ($):
Revenues 69.0 69.0 269.24 4.80
Site production and delivery 38.8 22.2 86.04 1.35
Gold and silver credits (51.9) — — —
Treatment charges 18.2 10.4 40.34 0.63
Royalty on metals 1.7 1.0 3.85 0.06
Net cash production costs 6.8 33.6 130.23 2.04
Depreciation and amortization 18.0 10.3 39.92 0.63
Noncash and other 0.2 0.1 0.50 0.01
Total production costs 25.0 44.0 170.65 2.68
Adjustments, primarily for copper pricing on prior
period sales and silver hedging 0.1 — (0.48) (0.02)
Gross profit per pound/ounce 44.1 25.0 98.11 2.10
RECONCILIATION TO AMOUNTS REPORTED
Production Depreciation and
Revenues and Delivery Amortization
(In Thousands)
Totals presented above $1,695,314 $ 542,699 $ 251,835
Noncash and other per above N/A 3,159 N/A
Less: Treatment charges per above (254,485) N/A N/A
Royalty per above (24,302) N/A N/A
Adjustments, primarily for copper pricing on prior
period sales and hedging per above (2,413) N/A N/A
Mining and exploration segment 1,414,114 545,858 251,835
Smelting and refining segment 758,282 738,618 27,262
Eliminations and other (333,530) (341,037) 4,792
As reported in consolidated financial
statements $1,838,866 $ 943,439 $ 283,889
MANAGEMENT’S DISCUSSION AND ANALYSIS