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MANAGEMENT’S DISCUSSION AND ANALYSIS
FREEPORT-McMoRan COPPER & GOLD INC. 2010 Annual Report
52
North America Copper Mines Product Revenues and Production Costs (continued)
By-Product Co-Product Method
Year Ended December 31, 2009 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments $ 2,823 $ 2,823 $ 274 $ 45 $ 3,142
Site production and delivery, before net noncash
and other costs shown below 1,483 1,364 142 22 1,528
By-product credits
a
(274) — — — —
Treatment charges 102 100 — 2 102
Net cash costs 1,311 1,464 142 24 1,630
Depreciation, depletion and amortization 264 251 10 3 264
Noncash and other costs, net 129 127 2 — 129
Total costs 1,704 1,842 154 27 2,023
Revenue adjustments, primarily for hedging 92 92 — — 92
Idle facility and other non-inventoriable costs (100) (100) — — (100)
Gross profit $ 1,111 $ 973 $ 120 $ 18 $ 1,111
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 3,142 $ 1,528 $ 264
Treatment charges per above N/A 102 N/A
Net noncash and other costs per above N/A 129 N/A
Revenue adjustments, primarily for hedging per above 92 N/A N/A
Idle facility and other non-inventoriable costs per above N/A 100 N/A
Eliminations and other 1 52 16
North America copper mines 3,235 1,911 280
South America mining 3,839 1,563 275
Indonesia mining 5,908 1,505 275
Africa mining 389 315 66
Molybdenum 847 660
c
49
Rod & Refining 3,356 3,336 8
Atlantic Copper Smelting & Refining 1,892 1,895 36
Corporate, other & eliminations (4,426) (4,150) 25
As reported in FCX’s consolidated financial statements $ 15,040 $ 7,035
c
$ 1,014
a. Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Includes LCM molybdenum inventory adjustments of $19 million.