Freeport-McMoRan 2011 Annual Report Download - page 57

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2011 ANNUAL REPORT | 55
South America Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Other Total
(In millions)
Revenues, excluding adjustments $ 4,989 $ 4,989 $ 4 77
a
$ 5,466
Site production and delivery, before net noncash
and other costs shown below 1,826
b
1,679 172 1,851
By-product credits (452) — — —
Treatment charges 219 219 — 219
Net cash costs 1,593 1,898 172 2,070
Depreciation, depletion and amortization 258 242 16 258
Noncash and other costs, net 23 21 2 23
Total costs 1,874 2,161 190 2,351
Revenue adjustments, primarily for pricing on
prior period open sales 15 (4) 19 15
Other non-inventoriable costs (59) (54) (5) (59)
Gross profit $ 3,071 $ 2,770 $ 301 $ 3,071
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 5,466 $ 1,851 $ 258
Treatment charges (219) N/A N/A
Net noncash and other costs N/A 23 N/A
Revenue adjustments, primarily for pricing on
prior period open sales 15 N/A N/A
Other non-inventoriable costs N/A 59 N/A
Eliminations and other (4) (28) —
South America mining 5,258 1,905 258
North America copper mines 5,633 2,629 279
Indonesia mining 5,046 1,902 215
Africa mining 1,289 591 140
Molybdenum 1,424 1,036 60
Rod & Refining 5,549 5,527 8
Atlantic Copper Smelting & Refining 2,984 2,991 40
Corporate, other & eliminations (6,303) (6,683) 22
As reported in FCX’s consolidated financial statements $ 20,880 $ 9,898 $ 1,022
a. Includes gold sales of 101 thousand ounces ($1,580 per ounce average realized price) and silver sales of 3.2 million ounces ($36.81 per ounce average realized price); also includes molybdenum
sales of 10 million pounds ($13.78 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.
b. Includes $50 million for bonuses paid at Cerro Verde and El Abra pursuant to the new labor agreements.
MANAGEMENT’S DISCUSSION AND ANALYSIS