Freeport-McMoRan 2012 Annual Report Download - page 56

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54
MANAGEMENT’S DISCUSSION AND ANALYSIS
South America Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2012 Method Copper Other Total
(In millions)
Revenues, excluding adjustments
$ 4,462 $ 4,462 $ 355
a
$ 4,817
Site production and delivery, before net noncash
and other costs shown below
1,995
b
1,846 173 2,019
By-product credits
(331) — — —
Treatment charges
202 202 — 202
Net cash costs
1,866 2,048 173 2,221
Depreciation, depletion and amortization
287 272 15 287
Noncash and other costs, net
110 75 35 110
Total costs
2,263 2,395 223 2,618
Revenue adjustments, primarily for pricing on
prior period open sales
106 106 — 106
Gross profit
$ 2,305 $ 2,173 $ 132 $ 2,305
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above
$ 4,817 $ 2,019 $ 287
Treatment charges
(202) N/A N/A
Net noncash and other costs
N/A 110 N/A
Revenue adjustments, primarily for pricing on
prior period open sales
106 N/A N/A
Eliminations and other
7 (15) —
South America mining
4,728 2,114 287
North America copper mines
5,490 3,012 362
Indonesia mining
3,921 2,349 212
Africa mining
1,359 615 176
Molybdenum
1,255 1,033 65
Rod & Refining
5,016 4,993 9
Atlantic Copper Smelting & Refining
2,709 2,640 42
Corporate, other & eliminations
(6,468) (6,374) 26
As reported in FCX’s consolidated financial statements
$ 18,010 $ 10,382 $ 1,179
a. Includes gold sales of 82 thousand ounces ($1,673 per ounce average realized price) and silver sales of 3.2 million ounces ($30.33 per ounce average realized price); also includes sales of
Cerro Verde production to our molybdenum sales company of 8 million pounds ($10.58 per pound average realized price), which reflects molybdenum produced at market-based pricing.
b. Includes charges totaling $16 million associated with labor agreement costs at Candelaria.