Freeport-McMoRan 2014 Annual Report Download - page 65

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MANAGEMENT’S DISCUSSION AND ANALYSIS
63
North America Copper Mines Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2014 Method Copper Molybdenum
a
Other
b
Total
(In millions)
Revenues, excluding adjustments
$ 5,186 $ 5,186 $ 379 $ 127 $ 5,692
Site production and delivery, before net noncash
and other costs shown below
3,057 2,999 90 75 3,164
By-product credits
(399) — — — —
Treatment charges
203 198 — 5 203
Net cash costs
2,861 3,197 90 80 3,367
Depreciation, depletion and amortization
473 462 4 7 473
Noncash and other costs, net
149 147 1 1 149
Total costs
3,483 3,806 95 88 3,989
Revenue adjustments, primarily for pricing on prior period open sales
(7) (7) — — (7)
Gross profit
$ 1,696 $ 1,373 $ 284 $ 39 $ 1,696
Copper sales (millions of recoverable pounds)
1,657 1,657
Molybdenum sales (millions of recoverable pounds)
a
33
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments
$ 3.13 $ 3.13 $ 11.52
Site production and delivery, before net noncash
and other costs shown below
1.85 1.81 2.74
By-product credits
(0.24) — —
Treatment charges
0.12 0.12 —
Unit net cash costs
1.73 1.93 2.74
Depreciation, depletion and amortization
0.29 0.28 0.14
Noncash and other costs, net
0.09 0.09 0.03
Total unit costs
2.11 2.30 2.91
Revenue adjustments, primarily for pricing on prior period open sales
— — —
Gross profit per pound
$ 1.02 $ 0.83 $ 8.61
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 5,692 $ 3,164 $ 473
Treatment charges
— 203 —
Noncash and other costs, net
— 149 —
Revenue adjustments, primarily for pricing on prior period open sales
(7) — —
Eliminations and other
(69) (76) 11
North America copper mines
5,616 3,440 484
Other mining & eliminations
c
11,112 7,225 1,074
Total mining
16,728 10,665 1,558
U.S. oil & gas operations
4,710 1,237 6,028
d
Corporate, other & eliminations
— 2 14
As reported in FCX’s consolidated financial statements
$ 21,438 $ 11,904 $ 7, 600
d
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.
d. Includes impairment of oil and gas properties of $3.7 billion.