Freeport-McMoRan 2008 Annual Report Download - page 51

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Management’s Discussion and Analysis
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 49
By-Product Co-Product Method
March 20, 2007, through December 31, 2007
a
Method Copper Molybdenum
b
Other
c
Total
(In millions)
Revenues, excluding adjustments shown below $ 3,526 $ 3,526 $ 717 $ 47 $ 4,290
Site production and delivery, before net noncash and nonrecurring costs
shown below 1,516 1,296 253 18 1,567
By-product credits
b
(713) – – – –
Treatment charges 100 98 – 2 100
Net cash costs 903 1,394 253 20 1,667
Depreciation, depletion and amortization 487 418 67 2 487
Noncash and nonrecurring costs, net 361 341 4 16 361
Total costs 1,751 2,153 324 38 2,515
Revenue adjustments, primarily for pricing on prior period open sales and hedging (203) (203) – – (203)
Idle facility and other non-inventoriable costs (56) (55) (1) – (56)
Gross profit $ 1,516 $ 1,115 $ 392 $ 9 $ 1,516
Reconciliation to Amounts Reported for the Year Ended December 31, 2007
Production Depreciation,
and Depletion and
Revenues Delivery Amortization
(In millions)
Totals presented above $ 4,290 $ 1,567 $ 487
Net noncash and nonrecurring costs per above N/A 361 N/A
Treatment charges per above N/A 100 N/A
Revenue adjustments, primarily for pricing on prior period open sales and hedging per above (203) N/A N/A
Eliminations and other 6 138 12
North America copper mines 4,093 2,166 499
South America copper mines 3,879 1,277 378
Indonesia mining 4,808 1,388 199
Africa mining – 10 2
Molybdenum 1,746 1,287 94
Rod & Refining 5,140 5,119 7
Atlantic Copper Smelting & Refining 2,388 2,329 36
Corporate, other & eliminations (5,115) (5,049) 31
As reported in FCX’s consolidated financial statements $ 16,939 $ 8,527 $ 1,246
a. Reflects the results of the North America copper mines under FCX management.
b. Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
c. Includes gold and silver product revenues and production costs.