Freeport-McMoRan 2008 Annual Report Download - page 62

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results of the Henderson molybdenum mine under Phelps Dodge
management, such data is not necessarily indicative of what
past results would have been under FCX management or of
future operating results. Presentations shown below have been
reconciled to the revenues and production and delivery costs
included in our pro forma consolidated financial results for the
year ended December 31, 2007, and as reported in Phelps
Dodge’s Form 10-K for the year ended December 31, 2006.
Management’s Discussion and Analysis
60 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
Years Ended December 31, 2007
a
2006
a
Revenues $ 1,029 $ 821
Site production and delivery, before net noncash and nonrecurring costs 171 137
Net cash costs $ 171 $ 137
Reconciliation to Revenues and Production and Delivery Costs
Production
and
Revenues Delivery
(In millions)
Year Ended December 31, 2007
Totals presented above $ 1,029 $ 171
Net noncash and nonrecurring costs N/A 1
Combined Henderson mine 1,029 172
Other molybdenum operations and eliminations
b
1,164 1,421
Combined Molybdenum 2,193 1,593
Combined North America copper mines 5,046 2,595
Combined South America copper mines 4,438 1,465
Indonesia mining 4,808 1,388
Combined Africa mining – 8
Combined Rod & Refining 6,437 6,411
Atlantic Copper Smelting & Refining 2,388 2,329
Eliminations and other (6,077) (5,979)
As reported in FCX’s pro forma consolidated financial results
c
$ 19,233 $ 9,810
Year Ended December 31, 2006
Totals presented above $ 821 $ 137
Net noncash and nonrecurring costs N/A 1
Henderson mine 821 138
Other molybdenum operations and eliminations
b
927 1,119
Molybdenum 1,748 1,257
North America copper mines 3,651 1,578
South America copper mines 3,442 965
Eliminations and other
d
3,069 3,007
As reported in Phelps Dodge consolidated financial results
e
$ 11,910 $ 6,807
a. The year ended December 31, 2007, combines our historical data beginning March 20, 2007, with Phelps Dodge pre-acquisition data through March 19, 2007, and for the year
ended December 31, 2006, which reflects Phelps Dodge pre-acquisition data. As the pre-acquisition data represents the results under Phelps Dodge management, such data is
not necessarily indicative of what past results would have been under FCX management or of future operating results.
b. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced as a by-product at our North and South America
copper mines.
c. Refer to Note 18 for summary of unaudited pro forma financial information for year ended December 31, 2007.
d. Includes revenues and production and delivery costs associated with the PDIC manufacturing operation, which was sold by FCX on October 31, 2007.
e. Obtained from the Phelps Dodge Form 10-K for the year ended December 31, 2006. As the pre-acquisition data represents the results under Phelps Dodge management, such data
is not necessarily indicative of what past results would have been under FCX management or of future operating results.
Combined Product Revenues and Production Costs
For comparative purposes, the following tables summarize net
cash costs for the Henderson molybdenum mine for the year
ended December 31, 2007, which reflects our historical data
beginning March 20, 2007, combined with Phelps Dodge
pre-acquisition data through March 19, 2007, and for the year
ended December 31, 2006, which reflects Phelps Dodge
pre-acquisition data. As the pre-acquisition data represents the