Freeport-McMoRan 2014 Annual Report Download - page 76

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MANAGEMENT’S DISCUSSION AND ANALYSIS
74
Africa Mining Product Revenues and Production Costs (continued)
By-Product
Co-Product Method
Year Ended December 31, 2012 Method Copper Cobalt Total
(In millions)
Revenues, excluding adjustments
a
$ 1,179 $ 1,179 $ 194 $ 1,373
Site production and delivery, before net noncash
and other costs shown below 501 465 121 586
Cobalt credits
b
(112) — — —
Royalty on metals 25 22 3 25
Net cash costs 414 487 124 611
Depreciation, depletion and amortization 176 160 16 176
Noncash and other costs, net 29 26 3 29
Total costs 619 673 143 816
Revenue adjustments, primarily for pricing on prior period open sales 8 8 3 11
Gross profit $ 568 $ 514 $ 54 $ 568
Copper sales (millions of recoverable pounds) 336 336
Cobalt sales (millions of contained pounds) 25
Gross profit per pound of copper and cobalt:
Revenues, excluding adjustments
a
$ 3.51 $ 3.51 $ 7.83
Site production and delivery, before net noncash
and other costs shown below 1.49 1.39 4.86
Cobalt credits
b
(0.33) — —
Royalty on metals 0.07 0.06 0.12
Unit net cash costs 1.23 1.45 4.98
Depreciation, depletion and amortization 0.52 0.47 0.67
Noncash and other costs, net 0.09 0.08 0.11
Total unit costs 1.84 2.00 5.76
Revenue adjustments, primarily for pricing on prior period open sales 0.02 0.02 0.09
Gross profit per pound $ 1.69 $ 1.53 $ 2.16
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 1,373 $ 586 $ 176
Royalty on metals (25) — —
Noncash and other costs, net — 29 —
Revenue adjustments, primarily for pricing on prior period open sales 11 — —
Africa mining 1,359 615 176
Other mining & eliminations
c
16,644 9,764 996
Total mining 18,003 10,379 1,172
U.S. oil & gas operations — — —
Corporate, other & eliminations 7 3 7
As reported in FCX’s consolidated financial statements $ 18,010 $ 10,382 $ 1,179
a. Includes point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.
c. Represents the combined total for all other mining operations and the related eliminations, as presented in Note 16.