Freeport-McMoRan 2006 Annual Report Download - page 50

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MANAGEMENT’S฀DISCUSSION฀AND฀ANALYSIS
฀By-Product฀ ฀ Co-Product฀Method
Year฀Ended฀December฀31,฀2005฀ Method฀ Copper฀ Gold฀ Silver฀ Total
(In฀Thousands)
Revenues,฀after฀adjustments฀shown฀below฀ $฀2,707,049฀ $฀2,707,049฀ $฀1,269,893฀ $฀35,165฀ $฀4,012,107
Site฀production฀and฀delivery,฀before฀net฀noncash฀and฀nonrecurring฀
฀ costs฀shown฀below฀ ฀ 949,469a฀ ฀ 640,626b฀ ฀ 300,521b฀ ฀ 8,322b฀ ฀ 949,469
Gold฀and฀silver฀credits฀ ฀(1,305,058)฀ ฀ —฀ ฀ —฀ ฀ —฀ ฀ —
Treatment฀charges฀ ฀ 350,422฀ ฀ 236,437฀ ฀ 110,914฀ ฀ 3,071฀ ฀ 350,422
Royalty฀on฀metals฀ ฀ 103,726฀ ฀ 69,986฀ ฀ 32,831฀ ฀ 909฀ ฀ 103,726
฀ Unit฀net฀cash฀costs฀ ฀ 98,559฀ ฀ 947,049฀ ฀ 444,266฀ ฀ 12,302฀ ฀1,403,617
Depreciation฀and฀amortization฀ ฀ 209,713฀ ฀ 141,498฀ ฀ 66,377฀ ฀ 1,838฀ ฀ 209,713
Noncash฀and฀nonrecurring฀costs,฀net฀ ฀ 4,570฀ ฀ 3,083฀ ฀ 1,447฀ ฀ 40฀ ฀ 4,570
฀ Total฀unit฀costs฀ ฀ 312,842฀ ฀1,091,630฀ ฀ 512,090฀ ฀ 14,180฀ ฀1,617,900
Revenue฀adjustments,฀primarily฀for฀pricing฀on฀prior฀period฀open฀sales฀
฀ and฀silver฀hedging฀ ฀ 10,023c฀ ฀ 14,975฀ ฀ —฀ ฀ (4,952)฀ ฀ 10,023
PT฀Smelting฀intercompany฀profit฀elimination฀ ฀ (23,565)฀ ฀ (15,899)฀ ฀ (7,459)฀ ฀ (207)฀ ฀ (23,565)
Gross฀profit฀฀ $฀2,380,665฀ $฀1,614,495฀ $฀ 750,344฀ $฀15,826฀ $฀2,380,665
Reconciliation฀to฀Amounts฀Reported
฀ ฀ Production฀ Depreciation฀and฀ ฀
฀ Revenues฀ and฀Delivery฀ Amortization
(In฀Thousands)
Totals฀presented฀above฀ $฀4,012,107฀ $฀ 949,469฀ $฀ 209,713
Net฀noncash฀and฀nonrecurring฀costs฀per฀above฀ ฀ N/A฀ ฀ 4,570฀ ฀ N/A
Less:฀฀Treatment฀charges฀per฀above฀ ฀ (350,422)฀ ฀ N/A฀ ฀ N/A
฀ ฀ Royalty฀per฀above฀ ฀ (103,726)฀ ฀ N/A฀ ฀ N/A
Revenue฀adjustments,฀primarily฀for฀pricing฀on฀prior฀period฀open฀sales฀
฀ and฀hedging฀per฀above฀ ฀ 10,023฀ ฀ N/A฀ ฀ N/A
Mining฀and฀exploration฀segment฀ ฀3,567,982฀ ฀ 954,039฀ ฀ 209,713
Smelting฀and฀refining฀segment฀ ฀1,363,208฀ ฀1,288,610฀ ฀ 28,995
Eliminations฀and฀other฀ ฀ (752,072)฀ ฀ (605,017)฀ ฀ 12,804
As฀reported฀in฀FCX’s฀consolidated฀financial฀statements฀ $฀4,179,118฀ $฀1,637,632฀ $฀251,512
 

 

 
48 FREEPORT-McMoRan฀COPPER฀&฀GOLD฀INC.฀฀2006฀Annual฀Report