Freeport-McMoRan 2013 Annual Report Download - page 72

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MANAGEMENT’S DISCUSSION AND ANALYSIS
70 | FREEPORT-McMoRan
Indonesia Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2011 Method Copper Gold Silver Total
(In millions)
Revenues, excluding adjustments $ 3,261 $ 3,261 $ 2,011 $ 97
a
$ 5,369
Site production and delivery, before net noncash
and other costs shown below 1,869
b
1,135 700 34 1,869
Gold and silver credits (2,090) — — — —
Treatment charges 156 95 58 3 156
Royalty on metals 137 83 52 2 137
Net cash costs 72 1,313 810 39 2,162
Depreciation and amortization 215 131 80 4 215
Noncash and other costs, net 33 20 12 1 33
Total costs 320 1,464 902 44 2,410
Revenue adjustments, primarily for pricing on prior period open sales (12) (12) (18) — (30)
PT Smelting intercompany profit 111 67 41 3 111
Gross profit $ 3,040 $ 1,852 $ 1,132 $ 56 $ 3,040
Copper sales (millions of recoverable pounds) 846 846
Gold sales (thousands of recoverable ounces) 1,270
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments $ 3.85 $ 3.85 $ 1,583
Site production and delivery, before net noncash
and other costs shown below 2.21
b
1.34 551
Gold and silver credits (2.47) — —
Treatment charges 0.19 0.11 46
Royalty on metals 0.16 0.10 41
Unit net cash costs 0.09 1.55 638
Depreciation and amortization 0.25 0.16 63
Noncash and other costs, net 0.04 0.02 10
Total unit costs 0.38 1.73 711
Revenue adjustments, primarily for pricing on prior period open sales (0.01) (0.01) (13)
PT Smelting intercompany profit 0.13 0.08 32
Gross profit per pound/ounce $ 3.59 $ 2.19 $ 891
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 5,369 $ 1,869 $ 215
Treatment charges (156) — —
Royalty on metals (137) — —
Net noncash and other costs — 33 —
Revenue adjustments, primarily for pricing on prior period open sales (30) — —
PT Smelting intercompany profit — (111) —
Indonesia mining 5,046 1,791 215
Other mining & eliminations
c
15,826 8,110 800
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 silver sales of 2.7 million ounces ($36.18 per ounce average realized price).
b. Includes $66 million ($0.08 per pound) for bonuses and other strike-related costs.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.