Freeport-McMoRan 2004 Annual Report Download - page 44

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42฀| FREEPORT-McMoRan COPPER & GOLD INC.
฀By-Product฀ Co-Product฀Method฀
Year฀Ended฀December฀31,฀2004฀ Method฀ Copper฀ Gold฀ Silver฀ Total
(In฀Thousands)฀
Revenues,฀after฀adjustments฀shown฀below฀ $฀1,363,587฀ $฀1,363,587฀ $฀ 595,206฀ $฀ 21,593฀ $฀1,980,386
Site฀production฀and฀delivery,฀before฀net฀noncash฀and฀฀
฀ nonrecurring฀credits฀shown฀below฀ ฀ 764,206฀ ฀ 526,191฀ ฀ 229,682฀ ฀ 8,333฀ ฀ 764,206
Gold฀and฀silver฀credits฀ ฀(616,799)฀ ฀ —฀ ฀ —฀ ฀ —฀ ฀ —
Treatment฀charges฀ ฀ 202,243฀ ฀ 139,254฀฀ ฀ 60,784฀ ฀ 2,205฀ ฀ 202,243
Royalty฀on฀metals฀ ฀ 43,498฀ ฀ 29,950฀ ฀ 13,074฀ ฀ 474฀ ฀ 43,498
฀ Net฀cash฀production฀costs฀ ฀ 393,148฀ ฀ 695,395฀ ฀ 303,540฀ ฀ 11,012฀ ฀1,009,947
Depreciation฀and฀amortization฀ ฀ 168,195฀ ฀ 115,810฀ ฀ 50,551฀ ฀ 1,834฀ ฀ 168,195
Noncash฀and฀nonrecurring฀credits,฀net฀ ฀ (4,075)฀ ฀ (2,806)฀ ฀ (1,225)฀ ฀ (44)฀ ฀ (4,075)
฀ Total฀production฀costs฀ ฀ 557,268฀ ฀ 808,399฀ ฀ 352,866฀ ฀ 12,802฀ ฀1,174,067
Adjustments,฀primarily฀for฀copper฀pricing฀on฀prior฀period฀
฀ open฀sales฀and฀silver฀hedging฀ ฀ 11,928฀ ฀ 13,369฀ ฀ —฀ ฀ (1,441)฀ ฀ 11,928
Gross฀profit,฀before฀intercompany฀profit฀eliminations฀ $฀ 818,247฀ $฀ 568,557฀ $฀ 242,340฀ $฀ 7,350฀ $฀ 818,247
Pounds฀of฀copper฀sold฀(000s)฀ ฀ 991,600฀ ฀ 991,600
Ounces฀of฀gold฀sold฀ ฀ ฀ ฀ ฀ ฀1,443,000
Ounces฀of฀silver฀sold฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀3,257,800฀
Gross฀profit฀per฀pound฀of฀copper฀(cents)/per฀ounce฀of฀gold฀and฀
฀ silver฀($),฀before฀intercompany฀profit฀eliminations:฀ ฀
Revenues,฀after฀adjustments฀shown฀below฀ ฀ 136.9฀ ฀ 136.9฀ ฀ 412.32฀ ฀ 6.10
฀ ฀
Site฀production฀and฀delivery,฀before฀net฀noncash฀and฀nonrecurring฀
฀ credits฀shown฀below฀ ฀ 77.1฀ ฀ 53.1฀ ฀ 159.17฀ ฀ 2.56
Gold฀and฀silver฀credits฀ ฀ (62.2)฀ ฀ —฀ ฀ —฀ ฀ —
Treatment฀charges฀ ฀ 20.4฀ ฀ 14.0฀ ฀ 42.12฀ ฀ 0.68
Royalty฀on฀metals฀ ฀ 4.4฀ ฀ 3.0฀ ฀ 9.06฀ ฀ 0.15
฀ Net฀cash฀production฀costs฀ ฀ 39.7฀ ฀ 70.1฀ ฀ 210.35฀ ฀ 3.39
Depreciation฀and฀amortization฀ ฀ 17.0฀ ฀ 11.7฀ ฀ 35.03฀ ฀ 0.56
Noncash฀and฀nonrecurring฀credits,฀net฀ ฀ (0.4)฀ ฀ (0.3)฀ ฀ (0.85)฀ ฀ (0.01)
฀ Total฀production฀costs฀ ฀ 56.3฀ ฀ 81.5฀ ฀ 244.53฀ ฀ 3.94
Adjustments,฀primarily฀for฀copper฀pricing฀on฀prior฀period฀open฀sales฀
฀ and฀silver฀hedging฀ ฀ 1.9฀ ฀ 1.9฀ ฀ 0.15฀ ฀ 0.10
Gross฀profit฀per฀pound/ounce,฀before฀intercompany฀profit฀eliminations฀ ฀ 82.5฀ ฀ 57.3฀ ฀ 167.94฀ ฀ 2.26
Reconciliation to Amounts Reported
฀ ฀ Production฀ Depreciation฀and฀ ฀
฀ Revenues฀ and฀Delivery฀ Amortization
(In฀Thousands)฀
Totals฀presented฀above฀ $฀1,980,386฀ $฀ 764,206฀ $฀ 168,195
Net฀noncash฀and฀nonrecurring฀credits฀per฀above฀ ฀ N/A฀ ฀ (4,075)฀ ฀ N/A
Less:฀฀Treatment฀charges฀per฀above฀ ฀ (202,243)฀ ฀ N/A฀ ฀ N/A
฀ ฀ ฀Royalty฀per฀above฀ ฀ (43,498)฀ ฀ N/A฀ ฀ N/A
Adjustments,฀primarily฀for฀copper฀pricing฀on฀prior฀period฀open฀
฀ sales฀and฀hedging฀per฀above฀ ฀ 11,928฀ ฀ N/A฀ ฀ N/A
Mining฀and฀exploration฀segment฀ ฀1,746,573฀ ฀ 760,131฀ ฀ 168,195
Smelting฀and฀refining฀segment฀ ฀ 873,700฀ ฀ 914,452฀ ฀ 28,632
Eliminations฀and฀other฀ ฀ (248,407)฀ ฀(224,292)฀ ฀ 9,581
As฀reported฀in฀FCX’s฀consolidated฀financial฀statements฀ $฀2,371,866฀ $฀1,450,291฀ $฀ 206,408
Management’s Discussion and Analysis