Freeport-McMoRan 2007 Annual Report Download - page 67

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Financial & Operating Information 65
Management’s Discussion and Analysis
Indonesian Mining Product Revenues and Production Costs
By-Product Co-Product Method
Year Ended December 31, 2006 Method Copper Gold Silver Total
Revenues, after adjustments shown below $ 3,764 $ 3,764 $ 1,072 $ 47 $ 4,883
Site production and delivery, before net noncash and nonrecurring costs shown below 1,235 952 271 12 1,235
Gold and silver credits (1,119) – – – –
Treatment charges 477 368 104 5 477
Royalty on metals 126 97 28 1 126
Net cash costs 719 1,417 403 18 1,838
Depreciation and amortization 184 142 40 2 184
Noncash and nonrecurring costs, net 44 34 10 – 44
Total costs 947 1,593 453 20 2,066
Revenue adjustments, primarily for pricing on prior period open sales and gold/silver hedging 115a 197 (69) (13) 115
PT Smelting intercompany profit elimination (3) (2) (1) – (3)
Gross profit $ 2,929 $ 2,366 $ 549 $ 14 $ 2,929
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 4,883 $ 1,235 $ 184
Net noncash and nonrecurring costs per above N/A 44 N/A
Less: Treatment charges per above (477) N/A N/A
Less: Royalty per above (126) N/A N/A
Revenue adjustments, primarily for pricing on prior period open sales and hedging per above 115 N/A N/A
Total Indonesian mining operations 4,395 1,279 184
Atlantic Copper smelting & refining 2,242 2,119 33
Corporation, other & eliminations (846) (873) 11
As reported in FCX’s consolidated financial statements $ 5,791 $ 2,525 $ 228
a. Includes a $69 million loss on the redemption of FCX’s Gold-Denominated Preferred Stock, Series II, and a $13 million loss on the redemption of FCX’s Silver-Denominated Preferred Stock.