Freeport-McMoRan 2010 Annual Report Download - page 58

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FREEPORT-McMoRan COPPER & GOLD INC. 2010 Annual Report
56
South America Mining Product Revenues and Production Costs (continued)
By-Product Co-Product Method
Year Ended December 31, 2008 Method Copper Other
a
Total
(In millions)
Revenues, excluding adjustments $ 3,910 $ 3,910 $ 216 $ 4,126
Site production and delivery, before net noncash
and other costs shown below 1,711 1,631 102 1,733
By-product credits (194) — — —
Treatment charges 211 211 — 211
Net cash costs 1,728 1,842 102 1,944
Depreciation, depletion and amortization 508 483 25 508
Noncash and other costs, net 103
b
100 3 103
Total costs 2,339 2,425 130 2,555
Revenue adjustments, primarily for pricing on prior
year open sales 230 230 — 230
Other non-inventoriable costs (37) (34) (3) (37)
Gross profit $ 1,764 $ 1,681 $ 83 $ 1,764
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 4,126 $ 1,733 $ 508
Treatment charges per above (211) N/A N/A
Net noncash and other costs per above N/A 103
b
N/A
Revenue adjustments, primarily for pricing on prior
year open sales per above 230 N/A N/A
Other non-inventoriable costs per above N/A 37 N/A
Eliminations and other 21 (19) 3
South America mining 4,166 1,854 511
North America copper mines 5,265 3,708 770
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
c
$ 1,782
a. Includes gold, silver and molybdenum product revenues and production costs.
b. Includes charges totaling $10 million for LCM inventory adjustments.
c. Includes LCM inventory adjustments of $782 million.