Freeport-McMoRan 2010 Annual Report Download - page 55

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North America Copper Mines Product Revenues and Production Costs (continued)
By-Product Co-Product Method
Year Ended December 31, 2008 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments $ 4,382 $ 4,382 $ 892 $ 72 $ 5,346
Site production and delivery, before net noncash
and other costs shown below 2,681 2,326 374 35 2,735
By-product credits
a
(910) — — — —
Treatment charges 134
130
— 4 134
Net cash costs 1,905 2,456 374 39 2,869
Depreciation, depletion and amortization 753 664 83 6 753
Noncash and other costs, net 743
c
701 39 3 743
Total costs 3,401 3,821 496 48 4,365
Revenue adjustments, primarily for hedging (71) (71) — — (71)
Idle facility and other non-inventoriable costs (85) (83) (2) — (85)
Gross profit $ 825 $ 407 $ 394 $ 24 $ 825
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 5,346 $ 2,735 $ 753
Treatment charges per above N/A 134 N/A
Net noncash and other costs per above N/A 743
c
N/A
Revenue adjustments, primarily for hedging per above (71) N/A N/A
Idle facility and other non-inventoriable costs per above N/A 85 N/A
Eliminations and other (10) 11 17
North America copper mines 5,265 3,708 770
South America mining 4,166 1,854 511
Indonesia mining 3,412 1,792 222
Africa mining — 16 6
Molybdenum 2,488 1,629 192
Rod & Refining 5,557 5,527 8
Atlantic Copper Smelting & Refining 2,341 2,276 35
Corporate, other & eliminations (5,433) (5,604) 38
As reported in FCX’s consolidated financial statements $ 17,796 $ 11,198
d
$ 1,782
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 charges totaling $661 million for LCM inventory adjustments.
d. Includes LCM inventory adjustments of $782 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FREEPORT-McMoRan COPPER & GOLD INC. 2010 Annual Report
53