Freeport-McMoRan 2013 Annual Report Download - page 69

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 67
South America Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Other Total
(In millions)
Revenues, excluding adjustments $ 4,989 $ 4,989 $ 477
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 82 75 7 82
Total costs 1,933 2,215 195 2,410
Revenue adjustments, primarily for pricing on prior period open sales 15 (4) 19 15
Gross profit $ 3,071 $ 2,770 $ 301 $ 3,071
Copper sales (millions of recoverable pounds) 1,322 1,322
Gross profit per pound of copper:
Revenues, excluding adjustments $ 3.77 $ 3.77
Site production and delivery, before net noncash
and other costs shown below 1.38
b
1.27
By-product credits (0.35) —
Treatment charges 0.17 0.17
Unit net cash costs 1.20 1.44
Depreciation, depletion and amortization 0.20 0.18
Noncash and other costs, net 0.06 0.05
Total unit costs 1.46 1.67
Revenue adjustments, primarily for pricing on prior period open sales 0.01 —
Gross profit per pound $ 2.32 $ 2.10
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 5,466 $ 1,851 $ 258
Treatment charges (219) — —
Net noncash and other costs — 82 —
Revenue adjustments, primarily for pricing on prior period open sales 15 — —
Eliminations and other (4) (28) —
South America mining 5,258 1,905 258
Other mining & eliminations
c
15,614 7,996 757
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. 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 reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b. Includes $50 million ($0.04 per pound) for bonuses paid at Cerro Verde and El Abra pursuant to new labor agreements.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.