Freeport-McMoRan 2013 Annual Report Download - page 66

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MANAGEMENT’S DISCUSSION AND ANALYSIS
64 | FREEPORT-McMoRan
North America Copper Mines Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments $ 4,968 $ 4,968 $ 546 $ 111 $ 5,625
Site production and delivery, before net noncash
and other costs shown below 2,213 1,987 238 46 2,271
By-product credits (599) — — — —
Treatment charges 138 132 — 6 138
Net cash costs 1,752 2,119 238 52 2,409
Depreciation, depletion and amortization 264 247 13 4 264
Noncash and other costs, net 166 161 4 1 166
Total costs 2,182 2,527 255 57 2,839
Revenue adjustments, primarily for pricing on prior period open sales (1) (1) — — (1)
Gross profit $ 2,785 $ 2,440 $ 291 $ 54 $ 2,785
Copper sales (millions of recoverable pounds) 1,244 1,244
Molybdenum sales (millions of recoverable pounds)
a
35
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments $ 3.99 $ 3.99 $ 15.72
Site production and delivery, before net noncash
and other costs shown below 1.78 1.60 6.86
By-product credits (0.48) — —
Treatment charges 0.11 0.10 —
Unit net cash costs 1.41 1.70 6.86
Depreciation, depletion and amortization 0.21 0.20 0.39
Noncash and other costs, net 0.13 0.13 0.09
Total unit costs 1.75 2.03 7.34
Revenue adjustments, primarily for pricing on prior period open sales — — —
Gross profit per pound $ 2.24 $ 1.96 $ 8.38
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 5,625 $ 2,271 $ 264
Treatment charges — 138 —
Net noncash and other costs — 166 —
Revenue adjustments, primarily for pricing on prior period open sales (1) — —
Eliminations and other 5 (10) 14
North America copper mines 5,629 2,565 278
Other mining & eliminations
c
15,243 7,336 737
Total mining 20,872 9,901 1,015
U.S. oil & gas operations — — —
Corporate, other & eliminations 8 (3) 7
As reported in FCX’s consolidated financial statements $ 20,880 $ 9,898 $ 1,022
a. Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
b. Includes gold and silver product revenues and production costs.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.