Freeport-McMoRan 2014 Annual Report Download - page 71

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MANAGEMENT’S DISCUSSION AND ANALYSIS
69
Indonesia Mining Product Revenues and Production Costs
By-Product
Co-Product Method
Year Ended December 31, 2014 Method Copper Gold Silver Total
(In millions)
Revenues, excluding adjustments
$ 1, 99 8 $ 1,998 $ 1,4 34 $ 39
a
$ 3,471
Site production and delivery, before net noncash
and other costs shown below
1,831 1,054 757 20 1,831
Gold and silver credits
(1,491) — — — —
Treatment charges
171 99 70 2 171
Export duties
77 44 32 1 77
Royalty on metals
115 66 48 1 115
Net cash costs
703 1,263 907 24 2,194
Depreciation and amortization
266 153 110 3 266
Noncash and other costs, net
191
b
110 79 2 191
Total costs
1,160 1,526 1,096 29 2,651
Revenue adjustments, primarily for pricing on prior period open sales
(55) (55) 18 — (37)
PT Smelting intercompany profit
34 20 14 — 34
Gross profit
$ 817 $ 437 $ 370 $ 10 $ 817
Copper sales (millions of recoverable pounds)
664 664
Gold sales (thousands of recoverable ounces)
1,168
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments
$ 3.01 $ 3.01 $ 1,229
Site production and delivery, before net noncash
and other costs shown below
2.76 1.59 648
Gold and silver credits
(2.25) — —
Treatment charges
0.26 0.15 61
Export duties
0.12 0.06 27
Royalty on metals
0.17 0.10 41
Unit net cash costs
1.06 1.90 777
Depreciation and amortization
0.40 0.23 94
Noncash and other costs, net
0.29
b
0.17 68
Total unit costs
1.75 2.30 939
Revenue adjustments, primarily for pricing on prior period open sales
(0.08) (0.08) 15
PT Smelting intercompany profit
0.05 0.03 12
Gross profit per pound/ounce
$ 1.23 $ 0.66 $ 317
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 3,471 $ 1,831 $ 266
Treatment charges
(171) — —
Export duties
(77) — —
Royalty on metals
(115) — —
Noncash and other costs, net
— 191
b
—
Revenue adjustments, primarily for pricing on prior period open sales
(37) — —
PT Smelting intercompany profit
— (34) —
Indonesia mining
3,071 1,988 266
Other mining & eliminations
c
13,657 8,677 1,292
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. Includes silver sales of 2.2 million ounces ($17.42 per ounce average realized price).
b. Includes $143 million ($0.22 per pound) of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT- FI’s operating rates.
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.