Freeport-McMoRan 2009 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2009 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

2XUHVWLPDWHGFRQVROLGDWHGHIIHFWLYHWD[UDWHIRUZLOOYDU\ZLWK
FRPPRGLW\SULFHFKDQJHVDQGWKHPL[RILQFRPHIURPLQWHUQDWLRQDO
DQG86RSHUDWLRQV$VVXPLQJDYHUDJHSULFHVRISHUSRXQGIRU
FRSSHUSHURXQFHIRUJROGSHUSRXQGIRUPRO\EGHQXP
DQGFXUUHQWVDOHVHVWLPDWHVZHHVWLPDWHRXUDQQXDOFRQVROLGDWHG
HIIHFWLYHWD[UDWHZLOODSSUR[LPDWHSHUFHQWKRZHYHUWKHUDWH
ZRXOGUDQJHIURPDSSUR[LPDWHO\SHUFHQWDWSHUSRXQGIRU
FRSSHUWRDSSUR[LPDWHO\SHUFHQWDWSHUSRXQGIRUFRSSHU
2XULQFRPHWD[SURYLVLRQIURPFRQWLQXLQJRSHUDWLRQVLQ
UHVXOWHGIURPWD[HVRQLQWHUQDWLRQDORSHUDWLRQVELOOLRQDQG86
RSHUDWLRQVPLOOLRQ7KHGLIIHUHQFHEHWZHHQRXUFRQVROLGDWHG
HIIHFWLYHLQFRPHWD[UDWHRISHUFHQWIRUDQGWKH86IHGHUDO
VWDWXWRU\UDWHRISHUFHQWSULPDULO\ZDVDWWULEXWDEOHWRLZLWKKROGLQJ
WD[HVUHODWHGWRHDUQLQJVIURP,QGRQHVLDDQG6RXWK$PHULFDPLQLQJ
RSHUDWLRQVLLD86IRUHLJQWD[FUHGLWOLPLWDWLRQDQGLLLDQ
DGMXVWPHQWDVVRFLDWHGZLWKWKHUHYHUVDORIWKH3KHOSV'RGJHLQGHÀQLWH
UHLQYHVWPHQWDVVHUWLRQRQFHUWDLQHDUQLQJVLQ6RXWK$PHULFDSDUWO\
RIIVHWE\D86EHQHÀWIRUSHUFHQWDJHGHSOHWLRQDQGDQLQWHUQDWLRQDO
WD[UDWHGLIIHUHQWLDO
$VXPPDU\RIWKHDSSUR[LPDWHDPRXQWVLQWKHFDOFXODWLRQRIRXU
FRQVROLGDWHGSURYLVLRQIRULQFRPHWD[HVIRUIROORZVLQPLOOLRQV
H[FHSWSHUFHQWDJHV
 @LHY,UKLK+LJLTILY
0UJVTL,MMLJ[P]L 0UJVTL ;H_
 3VZZH ;H_9H[L 7YV]PZPVU
86      
6RXWK$PHULFD    
,QGRQHVLD   
$IULFD   10  
(OLPLQDWLRQVDQGRWKHU   1$ 
$GMXVWPHQWV 1$  1$ E
&RQVROLGDWHG)&;   
54$5V[TLHUPUNM\S
H 9LWYLZLU[ZPUJVTLMYVTJVU[PU\PUNVWLYH[PVUZI`NLVNYHWOPJSVJH[PVUILMVYLPUJVTL
[H_LZHUKLX\P[`PUHMÄSPH[LKJVTWHUPLZ»UL[LHYUPUNZ
I 9LWYLZLU[ZHUHKQ\Z[TLU[MVYHVUL[PTLJOHYNLHZZVJPH[LK^P[O[OLYL]LYZHSVM[OL
7OLSWZ+VKNLPUKLÄUP[LYLPU]LZ[TLU[HZZLY[PVUVUJLY[HPULHYUPUNZPU:V\[O(TLYPJH;OPZ
HKQ\Z[TLU[^HZM\SS`VMMZL[I`HYLK\J[PVUPUUVUJVU[YVSSPUNPU[LYLZ[ZOHYLVMUL[PUJVTL
5HIHUWR1RWHIRUIXUWKHUGLVFXVVLRQRILQFRPHWD[HV
OPERATIONS
-VYJVTWHYH[P]LW\YWVZLZJLY[HPUVM[OLVWLYH[PUNKH[HPUJS\KLKPU
[OPZZLJ[PVUMVYV\Y5VY[O(TLYPJHJVWWLYTPULZ:V\[O(TLYPJH
JVWWLYTPULZHUK4VS`IKLU\TVWLYH[PVUZMVY[OL`LHY
JVTIPULZV\YOPZ[VYPJHSKH[HILNPUUPUN4HYJO^P[O7OLSWZ
+VKNLWYLHJX\PZP[PVUKH[H[OYV\NO4HYJO (Z[OL
WYLHJX\PZP[PVUKH[HYLWYLZLU[Z[OLYLZ\S[ZVM[OLZLVWLYH[PVUZ
\UKLY7OLSWZ+VKNLTHUHNLTLU[Z\JOJVTIPULKKH[HPZUV[
ULJLZZHYPS`PUKPJH[P]LVM^OH[WHZ[YLZ\S[Z^V\SKOH]LILLU\UKLY
-*?THUHNLTLU[VYVMM\[\YLVWLYH[PUNYLZ\S[Z
North America Copper Mines
:HFXUUHQWO\KDYHVL[RSHUDWLQJFRSSHUPLQHVLQ1RUWK$PHULFD²
0RUHQFL6LHUULWD%DJGDG6DIIRUGDQG0LDPLLQ$UL]RQDDQG7\URQH
LQ1HZ0H[LFR$OORIWKHVHPLQLQJRSHUDWLRQVDUH ZKROO\RZQHG
H[FHSWIRU0RUHQFLDQXQLQFRUSRUDWHGMRLQWYHQWXUHLQZKLFKZHRZQ
DQSHUFHQWXQGLYLGHGLQWHUHVW
7KH1RUWK$PHULFDFRSSHUPLQHVLQFOXGHRSHQSLWPLQLQJVXOÀGH
RUHFRQFHQWUDWLQJOHDFKLQJDQGVROXWLRQH[WUDFWLRQHOHFWURZLQQLQJ
6;(:RSHUDWLRQV,QDGGLWLRQWRFRSSHUWKH0RUHQFL6LHUULWDDQG
%DJGDGPLQHVSURGXFHPRO\EGHQXPDVDE\SURGXFW$ PDMRULW\RI
WKHFRSSHUSURGXFHGDWRXU1RUWK$PHULFDFRSSHUPLQHVLVFDVWLQWR
FRSSHUURGE\RXU5RG5HÀQLQJRSHUDWLRQV5RGDQGZLUHVDOHVWR
RXWVLGHZLUHDQGFDEOHPDQXIDFWXUHUVUHSUHVHQWHGDSSUR[LPDWHO\
SHUFHQWRI1RUWK$PHULFDFRSSHUVDOHVLQ7KHUHPDLQGHURIRXU
1RUWK$PHULFDFRSSHUVDOHVLVSULPDULO\LQWKHIRUPRIFRSSHUFDWKRGH
RUFRSSHUFRQFHQWUDWH5HIHUWR1RWHIRUIXUWKHUGLVFXVVLRQRIRXU
UHSRUWDEOHVHJPHQWLQWKH1RUWK$PHULFDFRSSHUPLQHVGLYLVLRQ
,QUHVSRQVHWRZHDNPDUNHWFRQGLWLRQVRSHUDWLQJSODQVDWRXU
1RUWK$PHULFDFRSSHUPLQHVZHUHUHYLVHGDWWKHHQGRIDQGLQ
HDUO\SULPDULO\WRUHÁHFWFXUWDLOHGSURGXFWLRQUDWHVFDSLWDOFRVW
UHGXFWLRQVDQGWKHLQFRUSRUDWLRQRIUHGXFHGLQSXWFRVWVUHIHUWR
1RWHIRUIXUWKHUGLVFXVVLRQ,Q2FWREHUZHDQQRXQFHG
MANAGEMENTS DISCUSSION AND ANALYSIS
28-9,,769;4J4V9HU*677,9.63+05*
 (UU\HS9LWVY[
Year Ended December 31, 2009 @LHY,UKLK+LJLTILY
0UJVTL ;H_ 0UJVTL ;H_
0UJVTL,MMLJ[P]L 7YV]PZPVU 0UJVTL,MMLJ[P]L 7YV]PZPVU
 3VZZH ;H_9H[L )LULÄ[ 3VZZH ;H_9H[L )LULÄ[
<:  $117 70% $(82)      
:V\[O(TLYPJH2,010 32% (650)    
0UKVULZPH 4,000 42% (1,697)    
(MYPJH  (60) 25% 15     
(ZZL[PTWHPYTLU[JOHYNLZ N/A    
.VVK^PSSPTWHPYTLU[JOHYNLZ N/A   5( ·
3*4PU]LU[VY`HKQ\Z[TLU[Z (19) 20% 4  
,SPTPUH[PVUZHUKV[OLY (232) N/A 60  5(  
(KQ\Z[TLU[Z  N/A N/A 43I 5( 5(  J
*VUZVSPKH[LK-*? $5,816 40% $(2,307)    
H 9LWYLZLU[ZPUJVTLSVZZMYVTJVU[PU\PUNVWLYH[PVUZI`NLVNYHWOPJSVJH[PVUILMVYLPUJVTL[H_LZHUKLX\P[`PUHMÄSPH[LKJVTWHUPLZ»UL[LHYUPUNZ
I 0UJS\KLZHMH]VYHISLHKQ\Z[TLU[[V[HSPUNTPSSPVUYLZ\S[PUNMYVTJVTWSL[PVUVMHYL]PL^VM<:KLMLYYLKPUJVTL[H_HJJV\U[Z
J 9LWYLZLU[ZHUHKQ\Z[TLU[[VLZ[HISPZOH]HS\H[PVUHSSV^HUJLHNHPUZ[<:MLKLYHSHS[LYUH[P]LTPUPT\T[H_JYLKP[Z