Freeport-McMoRan 2006 Annual Report Download - page 37

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MANAGEMENT’S฀DISCUSSION฀AND฀ANALYSIS




















Years฀Ended฀December฀31,฀ 2005฀ 2004
Grasberg฀open฀pit฀ ฀ ฀ ฀ 174,200฀ ฀ 141,500
Deep฀Ore฀Zone฀฀ ฀ ฀ ฀ 42,000฀ ฀ 43,600
฀ Total฀ ฀ ฀ ฀ 216,200฀ ฀ 185,100











Gross฀Profit฀per฀Pound฀of฀Copper/per฀Ounce฀of฀Gold฀and฀Silver
Year฀Ended฀December฀31,฀2004
Pounds฀of฀copper฀sold฀(000s)฀ ฀ ฀ ฀ 991,600฀ ฀ 991,600
Ounces฀of฀gold฀sold฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ 1,443,000
Ounces฀of฀silver฀sold฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀3,257,800
฀By-Product฀ Co-Product฀Method
฀ ฀ Method฀ Copper฀ Gold฀ Silver
Revenues,฀after฀adjustments฀shown฀below฀ ฀ ฀ $฀1.37฀ $฀1.37฀ $฀412.32฀ $฀6.10a
Site฀production฀and฀delivery,฀before฀net฀noncash฀and฀nonrecurring฀credits฀shown฀below฀ ฀ 0.77b฀ ฀0.53c฀ ฀ 159.17c฀ ฀ 2.56c
Gold฀and฀silver฀credits฀ ฀ ฀ ฀(0.62)฀ ฀ —฀ ฀ —฀ ฀ —
Treatment฀charges฀ ฀ ฀ ฀ 0.20฀ ฀0.14฀ ฀ 42.12฀ ฀ 0.68
Royalty฀on฀metals฀ ฀ ฀ ฀ 0.05฀ ฀0.03฀ ฀ 9.06฀ ฀ 0.15
฀ Unit฀net฀cash฀costsd฀ ฀ ฀ ฀ 0.40฀ ฀0.70฀ ฀ 210.35฀ ฀ 3.39
Depreciation฀and฀amortization฀ ฀ ฀ ฀ 0.17฀ ฀0.12฀ ฀ 35.03฀ ฀ 0.56
Noncash฀and฀nonrecurring฀credits,฀net฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ (0.85)฀ ฀(0.01)
฀ Total฀unit฀costs฀ ฀ ฀ ฀ 0.57฀ ฀0.82฀ ฀ 244.53฀ ฀ 3.94
Revenue฀adjustments,฀primarily฀for฀pricing฀on฀prior฀period฀open฀sales฀ ฀ ฀ 0.02e฀ ฀0.02฀ ฀ 0.15฀ ฀ 0.10
PT฀Smelting฀intercompany฀profit฀elimination฀ ฀ ฀ ฀(0.01)฀ ฀(0.01)฀ ฀ (2.87)฀ ฀(0.05)
Gross฀profit฀per฀pound/ounce฀ ฀ ฀ $฀0.81฀ $฀0.56฀ $฀165.07฀ $฀2.21
 
 
 

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FINANCIAL฀&฀OPERATING฀INFORMATION 35