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As Of Filer Filing For·On·As Docs:Size 8/06/10 Freeport-McMoran Inc 10-Q 6/30/10 52:16M |
Document/Exhibit Description Pages Size 1: 10-Q Fcx 2Q10 Form 10-Q HTML 1.90M 2: EX-3.1 Articles of Incorporation/Organization or Bylaws HTML 50K 3: EX-10.3 Material Contract HTML 112K 4: EX-15.1 Letter re: Unaudited Interim Financial Info HTML 16K 5: EX-31.1 Certification -- §302 - SOA'02 HTML 23K 6: EX-31.2 Certification -- §302 - SOA'02 HTML 23K 7: EX-32.1 Certification -- §906 - SOA'02 HTML 18K 8: EX-32.2 Certification -- §906 - SOA'02 HTML 18K 41: XML IDEA XML File -- Definitions and References XML 184K 48: XML IDEA XML File -- Filing Summary XML 142K 46: XML.R1 Condensed Consolidated Balance Sheets (Unaudited) XML 367K 47: XML.R2 Consolidated Statements of Income (Unaudited) XML 402K 26: XML.R3 Consolidated Statements of Cash Flows (Unaudited) XML 419K 31: XML.R4 Consolidated Statement of Equity (Unaudited) XML 545K 39: XML.R5 General Information XML 38K 38: XML.R6 Earnings Per Share XML 108K 51: XML.R7 Pension and Postretirement Benefits XML 68K 20: XML.R8 Inventories and Mill and Leach Stockpiles XML 80K 37: XML.R9 Income Taxes XML 39K 18: XML.R10 Debt and Equity Transactions XML 43K 17: XML.R11 Financial Instruments XML 153K 25: XML.R12 Fair Value Measurement XML 173K 43: XML.R13 New Accounting Standards XML 40K 27: XML.R14 Subsequent Events XML 38K 28: XML.R15 Business Segments XML 557K 35: XML.R16 Earnings Per Share (Policies) XML 108K 52: XML.R17 Financial Instruments (Policies) XML 47K 23: XML.R18 Business Segments (Policies) XML 37K 15: XML.R19 Earnings Per Share (Tables) XML 105K 30: XML.R20 Pension and Postretirement Benefits (Tables) XML 64K 42: XML.R21 Inventories and Mill and Leach Stockpiles (Tables) XML 85K 21: XML.R22 Financial Instruments (Tables) XML 160K 40: XML.R23 Fair Value Measurement (Tables) XML 171K 29: XML.R24 Business Segments (Tables) XML 544K 50: XML.R25 Earnings Per Share (Details) XML 434K 45: XML.R26 Pension and Post Retirement Benefits (Details) XML 216K 33: XML.R27 Inventories and Mill and Leach Stockpiles XML 388K (Details) 36: XML.R28 Income Taxes (Details) XML 115K 16: XML.R29 Debt and Equity Transactions (Details) XML 738K 19: XML.R30 Financial Instruments (Details) XML 2.31M 22: XML.R31 Fair Value Measurement (Details) XML 1.16M 24: XML.R32 Business Segments (Details) XML 3.25M 34: XML.R33 Document Information XML 43K 44: XML.R34 Entity Information XML 143K 49: EXCEL IDEA Workbook of Financial Reports (.xls) XLS 2.08M 9: EX-101.INS XBRL Instance -- fcx-20100630 XML 3.12M 11: EX-101.CAL XBRL Calculations -- fcx-20100630_cal XML 219K 12: EX-101.DEF XBRL Definitions -- fcx-20100630_def XML 338K 13: EX-101.LAB XBRL Labels -- fcx-20100630_lab XML 1.89M 14: EX-101.PRE XBRL Presentations -- fcx-20100630_pre XML 783K 10: EX-101.SCH XBRL Schema -- fcx-20100630 XSD 221K 32: ZIP XBRL Zipped Folder -- 0000831259-10-000048-xbrl Zip 193K
UNITED STATES
|
||
SECURITIES AND EXCHANGE COMMISSION
|
||
Washington, D.C. 20549
|
||
FORM 10-Q
|
||
(Mark One)
|
||
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||
For the quarterly period ended June 30, 2010
|
||
OR
|
||
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||
For the transition period from
|
to
|
|
Commission File Number: 001-11307-01
|
||
Freeport-McMoRan Copper & Gold Inc.
|
||
(Exact name of registrant as specified in its charter)
|
Delaware
|
74-2480931
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
333 North Central Avenue
|
|
(Address of principal executive offices)
|
(Zip Code)
|
(602) 366-8100
|
|
(Registrant's telephone number, including area code)
|
|
Page
|
|
3
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
20
|
|
21
|
|
65
|
|
65
|
|
66
|
|
66
|
|
66
|
|
66
|
|
66
|
|
67
|
|
E-1
|
|
June 30,
|
||||||||
2009
|
||||||||
(In Millions)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
3,042
|
$
|
2,656
|
||||
Trade accounts receivable
|
1,009
|
1,517
|
||||||
Other accounts receivable
|
235
|
286
|
||||||
Inventories:
|
||||||||
Product
|
1,031
|
1,110
|
||||||
Materials and supplies, net
|
1,097
|
1,093
|
||||||
Mill and leach stockpiles
|
768
|
667
|
||||||
Other current assets
|
111
|
104
|
||||||
Total current assets
|
7,293
|
7,433
|
||||||
Property, plant, equipment and development costs, net
|
16,272
|
16,195
|
||||||
Long-term mill and leach stockpiles
|
1,353
|
1,321
|
||||||
Intangible assets, net
|
333
|
347
|
||||||
Other assets
|
728
|
700
|
||||||
Total assets
|
$
|
25,979
|
$
|
25,996
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
2,065
|
$
|
2,038
|
||||
Dividends payable, including dividends payable to noncontrolling interests
|
329
|
99
|
||||||
Accrued income taxes
|
240
|
474
|
||||||
Current portion of reclamation and environmental obligations
|
198
|
214
|
||||||
Current portion of long-term debt and short-term borrowings
|
101
|
16
|
||||||
Rio Tinto share of joint venture cash flows
|
50
|
161
|
||||||
Total current liabilities
|
2,983
|
3,002
|
||||||
Long-term debt, less current portion
|
4,684
|
6,330
|
||||||
Deferred income taxes
|
2,612
|
2,503
|
||||||
Reclamation and environmental obligations, less current portion
|
2,005
|
1,981
|
||||||
Other liabilities
|
1,402
|
1,423
|
||||||
Total liabilities
|
13,686
|
15,239
|
||||||
Equity:
|
||||||||
FCX stockholders’ equity:
|
||||||||
6¾% Mandatory Convertible Preferred Stock
|
–
|
2,875
|
||||||
Common stock
|
59
|
55
|
||||||
Capital in excess of par value
|
18,639
|
15,680
|
||||||
Accumulated deficit
|
(4,466
|
)
|
(5,805
|
)
|
||||
Accumulated other comprehensive loss
|
(268
|
)
|
(273
|
)
|
||||
Common stock held in treasury
|
(3,432
|
)
|
(3,413
|
)
|
||||
Total FCX stockholders’ equity
|
10,532
|
9,119
|
||||||
Noncontrolling interests
|
1,761
|
1,638
|
||||||
Total equity
|
12,293
|
10,757
|
||||||
Total liabilities and equity
|
$
|
25,979
|
$
|
25,996
|
||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
||||||||||||
2009
|
2010
|
2009
|
||||||||||
(In Millions, Except Share Amounts)
|
||||||||||||
Revenues
|
$
|
3,864
|
$
|
3,684
|
$
|
8,227
|
$
|
6,286
|
||||
Cost of sales:
|
||||||||||||
Production and delivery
|
2,052
|
1,809
|
3,970
|
3,371
|
||||||||
Depreciation, depletion and amortization
|
249
|
256
|
520
|
488
|
||||||||
Lower of cost or market inventory adjustments
|
–
|
–
|
–
|
19
|
||||||||
Total cost of sales
|
2,301
|
2,065
|
4,490
|
3,878
|
||||||||
Selling, general and administrative expenses
|
101
|
89
|
196
|
151
|
||||||||
Exploration and research expenses
|
38
|
24
|
69
|
54
|
||||||||
Restructuring and other charges
|
–
|
(2
|
)
|
–
|
23
|
|||||||
Total costs and expenses
|
2,440
|
2,176
|
4,755
|
4,106
|
||||||||
Operating income
|
1,424
|
1,508
|
3,472
|
2,180
|
||||||||
Interest expense, net
|
(122
|
)
|
(158
|
)
|
(267
|
)
|
(289
|
)
|
||||
Losses on early extinguishment of debt
|
(50
|
)
|
–
|
(77
|
)
|
–
|
||||||
Other income (expense), net
|
9
|
(3
|
)
|
21
|
(17
|
)
|
||||||
Income before income taxes and equity in
|
||||||||||||
affiliated companies’ net earnings
|
1,261
|
1,347
|
3,149
|
1,874
|
||||||||
Provision for income taxes
|
(433
|
)
|
(542
|
)
|
(1,111
|
)
|
(873
|
)
|
||||
Equity in affiliated companies’ net earnings
|
4
|
7
|
9
|
18
|
||||||||
Net income
|
832
|
812
|
2,047
|
1,019
|
||||||||
Net income attributable to noncontrolling interests
|
(168
|
)
|
(164
|
)
|
(438
|
)
|
(268
|
)
|
||||
Preferred dividends
|
(15
|
)
|
(60
|
)
|
(63
|
)
|
(120
|
)
|
||||
Net income attributable to FCX common
|
||||||||||||
stockholders
|
$
|
649
|
$
|
588
|
$
|
1,546
|
$
|
631
|
||||
Net income per share attributable to
|
||||||||||||
FCX common stockholders:
|
||||||||||||
Basic
|
$
|
1.42
|
$
|
1.43
|
$
|
3.48
|
$
|
1.56
|
||||
Diluted
|
$
|
1.40
|
$
|
1.38
|
$
|
3.40
|
$
|
1.54
|
||||
Weighted-average common shares outstanding:
|
||||||||||||
Basic
|
458
|
412
|
444
|
406
|
||||||||
Diluted
|
473
|
471
|
474
|
426
|
||||||||
Dividends declared per share of common stock
|
$
|
0.30
|
$
|
–
|
$
|
0.45
|
$
|
–
|
Six Months Ended
|
||||||||
2009
|
||||||||
(In Millions)
|
||||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
2,047
|
$
|
1,019
|
||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation, depletion and amortization
|
520
|
488
|
||||||
Lower of cost or market inventory adjustments
|
–
|
19
|
||||||
Stock-based compensation
|
75
|
57
|
||||||
Charges for reclamation and environmental obligations, including accretion
|
75
|
112
|
||||||
Payments of reclamation and environmental obligations
|
(97
|
)
|
(47
|
)
|
||||
Losses on early extinguishment of debt
|
77
|
–
|
||||||
Deferred income taxes
|
107
|
61
|
||||||
Intercompany profit on PT Freeport Indonesia sales to PT Smelting
|
(29
|
)
|
37
|
|||||
Increase in long-term mill and leach stockpiles
|
(31
|
)
|
(31
|
)
|
||||
Changes in other assets and liabilities
|
5
|
71
|
||||||
Other, net
|
26
|
36
|
||||||
(Increases) decreases in working capital:
|
||||||||
Accounts receivable
|
502
|
(803
|
)
|
|||||
Inventories, and mill and leach stockpiles
|
(39
|
)
|
53
|
|||||
Other current assets
|
(9
|
)
|
105
|
|||||
Accounts payable and accrued liabilities
|
(161
|
)
|
(675
|
)
|
||||
Accrued income and other taxes
|
(186
|
)
|
394
|
|||||
Net cash provided by operating activities
|
2,882
|
896
|
||||||
Cash flow from investing activities:
|
||||||||
Capital expenditures:
|
||||||||
North America copper mines
|
(81
|
)
|
(100
|
)
|
||||
South America
|
(154
|
)
|
(111
|
)
|
||||
Indonesia
|
(195
|
)
|
(128
|
)
|
||||
Africa
|
(50
|
)
|
(458
|
)
|
||||
Other
|
(47
|
)
|
(97
|
)
|
||||
Proceeds from the sale of assets and other, net
|
8
|
(1
|
)
|
|||||
Net cash used in investing activities
|
(519
|
)
|
(895
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Net proceeds from sale of common stock
|
–
|
740
|
||||||
Proceeds from debt
|
35
|
155
|
||||||
Repayments of debt
|
(1,655
|
)
|
(285
|
)
|
||||
Cash dividends and distributions paid:
|
||||||||
Common stock
|
(130
|
)
|
–
|
|||||
Preferred stock
|
(95
|
)
|
(120
|
)
|
||||
Noncontrolling interests
|
(145
|
)
|
(63
|
)
|
||||
Contributions from noncontrolling interests
|
15
|
29
|
||||||
Net payments for stock-based awards
|
(6
|
)
|
(7
|
)
|
||||
Excess tax benefit from stock-based awards
|
4
|
–
|
||||||
Other
|
–
|
(3
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(1,977
|
)
|
446
|
|||||
Net increase in cash and cash equivalents
|
386
|
447
|
||||||
Cash and cash equivalents at beginning of year
|
2,656
|
872
|
||||||
Cash and cash equivalents at end of period
|
$
|
3,042
|
$
|
1,319
|
FCX Stockholders’ Equity
|
||||||||||||||||||||||||||||||||||||||
Mandatory
|
Accumu-
|
|||||||||||||||||||||||||||||||||||||
Convertible
|
lated
|
Common Stock
|
Total | |||||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Other
|
Held in Treasury
|
FCX
|
||||||||||||||||||||||||||||||||||
Number
|
Number
|
Capital in
|
Accumu-
|
Compre-
|
Number
|
Stock-
|
Non-
|
|||||||||||||||||||||||||||||||
of
|
At Par
|
of
|
At Par
|
Excess of
|
lated
|
hensive
|
of
|
At
|
holders’
|
controlling
|
Total
|
|||||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Par Value
|
Deficit
|
Loss
|
Shares
|
Cost
|
Equity
|
Interests
|
Equity
|
|||||||||||||||||||||||||||
(In Millions)
|
||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2009
|
29
|
$
|
2,875
|
552
|
$
|
55
|
$
|
15,680
|
$
|
(5,805
|
)
|
$
|
(273
|
)
|
122
|
$
|
(3,413
|
)
|
$
|
9,119
|
$
|
1,638
|
$
|
10,757
|
||||||||||||||
Conversions of 6¾% Mandatory
|
||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock
|
(29
|
)
|
(2,875
|
)
|
39
|
4
|
2,871
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||
Exercised and issued stock-based
|
||||||||||||||||||||||||||||||||||||||
awards
|
–
|
–
|
1
|
–
|
13
|
–
|
–
|
–
|
–
|
13
|
–
|
13
|
||||||||||||||||||||||||||
Stock-based compensation
|
–
|
–
|
–
|
–
|
74
|
–
|
–
|
–
|
–
|
74
|
–
|
74
|
||||||||||||||||||||||||||
Tax benefit for stock-based awards
|
–
|
–
|
–
|
–
|
1
|
–
|
–
|
–
|
–
|
1
|
–
|
1
|
||||||||||||||||||||||||||
Tender of shares for stock-based
|
||||||||||||||||||||||||||||||||||||||
awards
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(19
|
)
|
(19
|
)
|
–
|
(19
|
)
|
|||||||||||||||||||||||
Dividends on common stock
|
–
|
–
|
–
|
–
|
–
|
(207
|
)
|
–
|
–
|
–
|
(207
|
)
|
–
|
(207
|
)
|
|||||||||||||||||||||||
Dividends on preferred stock
|
–
|
–
|
–
|
–
|
–
|
(63
|
)
|
–
|
–
|
–
|
(63
|
)
|
–
|
(63
|
)
|
|||||||||||||||||||||||
Dividends and distributions to
|
||||||||||||||||||||||||||||||||||||||
noncontrolling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(330
|
)
|
(330
|
)
|
||||||||||||||||||||||||
Contributions from noncontrolling
|
||||||||||||||||||||||||||||||||||||||
interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
15
|
15
|
||||||||||||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||||||||
Net income
|
–
|
–
|
–
|
–
|
–
|
1,609
|
–
|
–
|
–
|
1,609
|
438
|
2,047
|
||||||||||||||||||||||||||
Other comprehensive income,
|
||||||||||||||||||||||||||||||||||||||
net of taxes:
|
||||||||||||||||||||||||||||||||||||||
Unrealized losses on securities
|
–
|
–
|
–
|
–
|
–
|
–
|
(2
|
)
|
–
|
–
|
(2
|
)
|
–
|
(2
|
)
|
|||||||||||||||||||||||
Defined benefit plans:
|
||||||||||||||||||||||||||||||||||||||
Amortization of unrecognized
|
||||||||||||||||||||||||||||||||||||||
amounts
|
–
|
–
|
–
|
–
|
–
|
–
|
7
|
–
|
–
|
7
|
–
|
7
|
||||||||||||||||||||||||||
Other comprehensive income
|
–
|
–
|
–
|
–
|
–
|
–
|
5
|
–
|
–
|
5
|
–
|
5
|
||||||||||||||||||||||||||
Total comprehensive income
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
1,614
|
438
|
2,052
|
||||||||||||||||||||||||||
Balance at June 30, 2010
|
–
|
$
|
–
|
592
|
$
|
59
|
$
|
18,639
|
$
|
(4,466
|
)
|
$
|
(268
|
)
|
122
|
$
|
(3,432
|
)
|
$
|
10,532
|
$
|
1,761
|
$
|
12,293
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
|||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Net income
|
$
|
832
|
$
|
812
|
$
|
2,047
|
$
|
1,019
|
|||||
Net income attributable to noncontrolling interests
|
(168
|
)
|
(164
|
)
|
(438
|
)
|
(268
|
)
|
|||||
Preferred dividends
|
(15
|
)
|
(60
|
)
|
(63
|
)
|
(120
|
)
|
|||||
Net income attributable to FCX common stockholders
|
649
|
588
|
1,546
|
631
|
|||||||||
Plus income impact of assumed conversion of:
|
|||||||||||||
6¾% Mandatory Convertible Preferred Stocka
|
15
|
49
|
63
|
–
|
b
|
||||||||
5½% Convertible Perpetual Preferred Stockc
|
–
|
11
|
–
|
23
|
|||||||||
Diluted net income attributable to FCX common
|
|||||||||||||
stockholders
|
$
|
664
|
$
|
648
|
$
|
1,609
|
$
|
654
|
|||||
Weighted-average shares of common stock outstanding
|
458
|
412
|
444
|
406
|
|||||||||
Add stock issuable upon conversion, exercise or
|
|||||||||||||
vesting of:
|
|||||||||||||
6¾% Mandatory Convertible Preferred Stocka
|
13
|
39
|
26
|
–
|
b
|
||||||||
5½% Convertible Perpetual Preferred Stockc
|
–
|
18
|
–
|
18
|
|||||||||
Dilutive stock options
|
2
|
1
|
3
|
d
|
1
|
||||||||
Restricted stock
|
–
|
1
|
1
|
1
|
|||||||||
Weighted-average shares of common stock outstanding
|
|||||||||||||
for purposes of calculating diluted net income per share
|
473
|
471
|
474
|
426
|
|||||||||
Diluted net income per share attributable to
|
|||||||||||||
FCX common stockholders
|
$
|
1.40
|
$
|
1.38
|
$
|
3.40
|
$
|
1.54
|
|||||
a.
|
All outstanding 6¾% Mandatory Convertible Preferred Stock automatically converted on May 1, 2010, into FCX common stock (refer to Note 6 for further discussion). During the second quarter of 2010, 28 million shares of preferred stock were converted into 39 million shares of FCX common stock (conversion rate of 1.3716 shares of FCX common stock).
|
b.
|
Preferred dividends of $97 million and additional shares of FCX common stock of approximately 39 million shares for the 6¾% Mandatory Convertible Preferred Stock were excluded for the six months ended June 30, 2009, because they were anti-dilutive.
|
c.
|
In September 2009, FCX redeemed the remaining outstanding shares of its 5½% Convertible Perpetual Preferred Stock.
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
|||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Service cost
|
$
|
8
|
$
|
8
|
$
|
18
|
$
|
17
|
|||||
Interest cost
|
26
|
28
|
53
|
55
|
|||||||||
Expected return on plan assets
|
(24
|
)
|
(20
|
)
|
(47
|
)
|
(40
|
)
|
|||||
Amortization of net actuarial loss
|
6
|
7
|
11
|
15
|
|||||||||
Curtailments
|
–
|
–
|
–
|
(4
|
)
|
||||||||
Special retirement benefits
|
–
|
–
|
–
|
(5
|
)
|
||||||||
Net periodic benefit costs
|
$
|
16
|
$
|
23
|
$
|
35
|
$
|
38
|
|||||
June 30,
|
|||||||
2009
|
|||||||
Mining Operations:
|
|||||||
Raw materials
|
$
|
1
|
$
|
1
|
|||
Work-in-process
|
95
|
108
|
|||||
Finished goodsa
|
600
|
588
|
|||||
Atlantic Copper, S.A. (Atlantic Copper):
|
|||||||
Raw materials (concentrates)
|
144
|
171
|
|||||
Work-in-process
|
187
|
227
|
|||||
Finished goods
|
4
|
15
|
|||||
Total product inventories
|
1,031
|
1,110
|
|||||
Total materials and supplies, netb
|
1,097
|
1,093
|
|||||
Total inventories
|
$
|
2,128
|
$
|
2,203
|
|||
b.
|
Materials and supplies inventory is net of obsolescence reserves totaling $23 million at June 30, 2010, and $21 million at December 31, 2009.
|
June 30,
|
|||||||
2009
|
|||||||
Current:
|
|||||||
Mill stockpiles
|
$
|
58
|
$
|
46
|
|||
Leach stockpiles
|
710
|
621
|
|||||
Total current mill and leach stockpiles
|
$
|
768
|
$
|
667
|
|||
Long-terma:
|
|||||||
Mill stockpiles
|
$
|
453
|
$
|
442
|
|||
Leach stockpiles
|
900
|
879
|
|||||
Total long-term mill and leach stockpiles
|
$
|
1,353
|
$
|
1,321
|
|||
Three Months Ended June 30,
|
||||||||||||
2009
|
||||||||||||
Hedged
|
Hedged
|
|||||||||||
Derivative
|
Item
|
Derivative
|
Item
|
|||||||||
Commodity contracts:
|
||||||||||||
Freeport-McMoRan Corporation’s (FMC)
|
||||||||||||
copper futures and swap contractsa
|
$
|
(20
|
)
|
$
|
20
|
$
|
1
|
$
|
(1
|
)
|
Six Months Ended June 30,
|
||||||||||||
2009
|
||||||||||||
Hedged
|
Hedged
|
|||||||||||
Derivative
|
Item
|
Derivative
|
Item
|
|||||||||
Commodity contracts:
|
||||||||||||
FMC’s copper futures and swap contractsa
|
$
|
(18
|
)
|
$
|
18
|
$
|
6
|
$
|
(6
|
)
|
||
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
||||||||||||
2009
|
2010
|
2009
|
||||||||||
Commodity contracts:
|
||||||||||||
Embedded derivatives in provisional sales contractsa
|
$
|
(330
|
)
|
$
|
283
|
$
|
(199
|
)
|
$
|
596
|
||
Embedded derivatives in provisional purchase
|
||||||||||||
1
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
||||||
PT Freeport Indonesia’s copper forward contractsa
|
–
|
(97
|
)
|
–
|
(97
|
)
|
||||||
Atlantic Copper’s copper forward contractsb
|
1
|
–
|
2
|
4
|
||||||||
FMC’s copper futures and swap contractsa
|
(1
|
)
|
17
|
(1
|
)
|
49
|
June 30,
|
|||||||
2009
|
|||||||
Derivatives designated as hedging instruments
|
|||||||
Commodity contracts:
|
|||||||
FMC’s copper futures and swap contracts:
|
|||||||
Asset positiona
|
$
|
1
|
$
|
11
|
|||
Liability positionb
|
(8
|
)
|
–
|
||||
Derivatives not designated as hedging instruments
|
|||||||
Commodity contracts:
|
|||||||
Embedded derivatives in provisional sales/purchases contracts:c
|
|||||||
Asset position
|
$
|
48
|
$
|
235
|
|||
Liability position
|
(190
|
)
|
(70
|
)
|
|||
Atlantic Copper’s copper forward contracts:
|
|||||||
Asset positiona
|
–
|
1
|
|||||
FMC’s copper futures and swap contracts:d
|
|||||||
Asset positiona
|
–
|
2
|
|||||
d.
|
FCX has paid $19 million to brokers associated with margin requirements (recorded in other current assets) at June 30, 2010, and FCX had received $6 million from brokers associated with margin requirements at December 31, 2009.
|
Average Price
|
|||||||||||
Open
|
Per Unit
|
Maturities
|
|||||||||
Positions
|
Market
|
Through
|
|||||||||
Embedded derivatives in provisional
|
|||||||||||
sales contracts:
|
|||||||||||
Copper (millions of pounds)
|
680
|
$
|
3.19
|
$
|
2.93
|
November 2010
|
|||||
Gold (thousands of ounces)
|
146
|
1,218
|
1,243
|
August 2010
|
|||||||
Embedded derivatives in provisional
|
|||||||||||
purchase contracts:
|
|||||||||||
Copper (millions of pounds)
|
173
|
3.18
|
2.95
|
November 2010
|
|||||||
Molybdenum (thousands of pounds)
|
238
|
16.18
|
14.11
|
July 2010
|
Level 1
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
Level 2
|
Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means; and
|
Level 3
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
|
Fair Value at June 30, 2010
|
||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||
Assets
|
||||||||||||
Cash equivalents:
|
||||||||||||
Money market funds
|
$
|
2,904
|
$
|
2,904
|
$
|
–
|
$
|
–
|
||||
Time deposits
|
99
|
99
|
–
|
–
|
||||||||
Total cash equivalents
|
3,003
|
3,003
|
–
|
–
|
||||||||
Trust assets (current and long-term):
|
||||||||||||
U.S. core fixed income fund
|
42
|
–
|
42
|
–
|
||||||||
Government mortgage-backed securities
|
26
|
–
|
26
|
–
|
||||||||
Government bonds and notes
|
25
|
–
|
25
|
–
|
||||||||
Corporate bonds
|
21
|
–
|
21
|
–
|
||||||||
Asset-backed securities
|
18
|
–
|
18
|
–
|
||||||||
Money market funds
|
19
|
19
|
–
|
–
|
||||||||
Total trust assets
|
151
|
19
|
132
|
–
|
||||||||
Available-for-sale securities:
|
||||||||||||
Time deposits
|
44
|
44
|
–
|
–
|
||||||||
Money market funds
|
7
|
7
|
–
|
–
|
||||||||
Equity securities
|
4
|
4
|
–
|
–
|
||||||||
Total available-for-sale securities
|
55
|
55
|
–
|
–
|
||||||||
Derivatives:
|
||||||||||||
Embedded derivatives in provisional sales/purchases
|
||||||||||||
48
|
48
|
–
|
–
|
|||||||||
Copper futures and swap contracts
|
1
|
1
|
–
|
–
|
||||||||
Total derivatives
|
49
|
49
|
–
|
–
|
||||||||
Total assets
|
$
|
3,258
|
$
|
3,126
|
$
|
132
|
$
|
–
|
||||
Liabilities
|
||||||||||||
Derivatives:
|
||||||||||||
Embedded derivatives in provisional sales/purchases
|
||||||||||||
$
|
(190
|
)
|
$
|
(190
|
)
|
$
|
–
|
$
|
–
|
|||
Copper futures and swap contracts
|
(8
|
)
|
(8
|
)
|
–
|
–
|
||||||
Total derivative liabilities
|
$
|
(198
|
)
|
$
|
(198
|
)
|
$
|
–
|
$
|
–
|
||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||
Cash and cash equivalentsa
|
$
|
3,042
|
$
|
3,042
|
$
|
2,656
|
$
|
2,656
|
||||
Derivatives included in accounts receivablea
|
48
|
48
|
235
|
235
|
||||||||
Trust assets (current and long-term)a, b
|
151
|
151
|
146
|
146
|
||||||||
Available-for-sale securities (current and
|
||||||||||||
long-term)a, b
|
55
|
55
|
74
|
74
|
||||||||
Derivative assetsa, c
|
1
|
1
|
14
|
14
|
||||||||
Derivatives included in accounts payable and
|
||||||||||||
accrued liabilitiesa
|
(198
|
)
|
(198
|
)
|
(70
|
)
|
(70
|
)
|
||||
Long-term debt (including amounts due
|
||||||||||||
within one year)d
|
(4,785
|
)
|
(5,203
|
)
|
(6,346
|
)
|
(6,735
|
)
|
||||
d.
|
Recorded at cost except for long-term debt acquired in the Phelps Dodge Corporation acquisition, which was recorded at fair value at the acquisition date. Fair value of substantially all of FCX’s long-term debt is estimated based on quoted market prices.
|
(In Millions)
|
North America Copper Mines
|
South America
|
Indonesia
|
Africa
|
||||||||||||||||||||||||||||||||||||
Atlantic
|
Corporate,
|
|||||||||||||||||||||||||||||||||||||||
Copper
|
Other &
|
|||||||||||||||||||||||||||||||||||||||
Other
|
Cerro
|
Other
|
Molyb-
|
Rod &
|
Smelting
|
Elimi-
|
FCX
|
|||||||||||||||||||||||||||||||||
Morenci
|
Mines
|
Total
|
Verde
|
Mines
|
Total
|
Grasberg
|
Tenke
|
denum
|
Refining
|
& Refining
|
nations
|
Total
|
||||||||||||||||||||||||||||
Three Months Ended June 30, 2010
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
1
|
$
|
1
|
$
|
2
|
$
|
274
|
$
|
453
|
$
|
727
|
$
|
871
|
a
|
$
|
207
|
$
|
325
|
$
|
1,123
|
$
|
605
|
$
|
4
|
|
$
|
3,864
|
||||||||||||
Intersegment
|
386
|
656
|
1,042
|
108
|
14
|
122
|
56
|
–
|
–
|
6
|
11
|
(1,237
|
)
|
–
|
||||||||||||||||||||||||||
Production and delivery
|
177
|
360
|
537
|
148
|
241
|
389
|
427
|
96
|
190
|
1,121
|
605
|
(1,313
|
)
|
2,052
|
||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
35
|
36
|
71
|
33
|
26
|
59
|
57
|
30
|
12
|
2
|
9
|
9
|
249
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
23
|
–
|
3
|
–
|
4
|
71
|
101
|
|||||||||||||||||||||||||||
Exploration and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
38
|
38
|
|||||||||||||||||||||||||||
Operating income (loss)
|
175
|
261
|
436
|
201
|
200
|
401
|
420
|
81
|
120
|
6
|
(2
|
)
|
(38
|
)
|
1,424
|
|||||||||||||||||||||||||
Interest expense, net
|
–
|
3
|
3
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
3
|
116
|
122
|
|||||||||||||||||||||||||||
Provision for income taxes
|
–
|
–
|
–
|
68
|
66
|
134
|
177
|
18
|
–
|
–
|
–
|
104
|
433
|
|||||||||||||||||||||||||||
Total assets at June 30, 2010
|
1,882
|
4,218
|
6,100
|
4,318
|
2,744
|
7,062
|
4,703
|
3,458
|
1,781
|
306
|
934
|
1,635
|
25,979
|
|||||||||||||||||||||||||||
Capital expenditures
|
12
|
50
|
62
|
19
|
87
|
106
|
97
|
11
|
5
|
1
|
3
|
11
|
296
|
|||||||||||||||||||||||||||
Three Months Ended June 30, 2009
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
18
|
$
|
27
|
$
|
45
|
$
|
342
|
$
|
465
|
$
|
807
|
$
|
1,430
|
a
|
$
|
57
|
$
|
186
|
$
|
741
|
$
|
415
|
$
|
3
|
$
|
3,684
|
|||||||||||||
Intersegment
|
234
|
424
|
658
|
70
|
7
|
77
|
180
|
–
|
–
|
6
|
–
|
(921
|
)
|
–
|
||||||||||||||||||||||||||
Production and delivery
|
144
|
317
|
461
|
153
|
213
|
366
|
415
|
92
|
b
|
162
|
743
|
419
|
(849
|
)
|
1,809
|
|||||||||||||||||||||||||
Depreciation, depletion and amortization
|
34
|
30
|
64
|
40
|
29
|
69
|
78
|
14
|
13
|
2
|
9
|
7
|
256
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
22
|
–
|
3
|
–
|
5
|
59
|
89
|
|||||||||||||||||||||||||||
Exploration and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
24
|
24
|
|||||||||||||||||||||||||||
Restructuring and other charges
|
2
|
–
|
2
|
–
|
(6
|
)
|
(6
|
)
|
–
|
–
|
–
|
–
|
–
|
2
|
(2
|
)
|
||||||||||||||||||||||||
Operating income (loss)
|
72
|
104
|
176
|
219
|
236
|
455
|
1,095
|
(49
|
)
|
8
|
2
|
(18
|
)
|
(161
|
)
|
1,508
|
||||||||||||||||||||||||
Interest expense, net
|
1
|
4
|
5
|
–
|
–
|
–
|
–
|
3
|
–
|
–
|
1
|
149
|
158
|
|||||||||||||||||||||||||||
Provision for (benefit from) income taxes
|
–
|
–
|
–
|
67
|
70
|
137
|
461
|
(25
|
)
|
–
|
–
|
–
|
(31
|
)
|
542
|
|||||||||||||||||||||||||
Total assets at June 30, 2009
|
2,022
|
4,023
|
6,045
|
4,016
|
2,535
|
6,551
|
5,312
|
3,160
|
1,750
|
292
|
842
|
672
|
24,624
|
|||||||||||||||||||||||||||
Capital expenditures
|
5
|
23
|
28
|
33
|
4
|
37
|
73
|
207
|
16
|
3
|
6
|
5
|
375
|
|||||||||||||||||||||||||||
a.
|
Includes PT Freeport Indonesia’s sales to PT Smelting totaling $373 million in second-quarter 2010 and $563 million in second-quarter 2009.
|
|||||||||||||||||||||||||||||||||||||||
b.
|
Includes charges totaling $49 million associated with Tenke Fungurume’s project start-up costs.
|
|||||||||||||||||||||||||||||||||||||||
(In Millions)
|
North America Copper Mines
|
South America
|
Indonesia
|
Africa
|
||||||||||||||||||||||||||||||||||||
Atlantic
|
Corporate,
|
|||||||||||||||||||||||||||||||||||||||
Copper
|
Other &
|
|||||||||||||||||||||||||||||||||||||||
Other
|
Cerro
|
Other
|
Molyb-
|
Rod &
|
Smelting
|
Elimi-
|
FCX
|
|||||||||||||||||||||||||||||||||
Morenci
|
Mines
|
Total
|
Verde
|
Mines
|
Total
|
Grasberg
|
Tenke
|
denum
|
Refining
|
& Refining
|
nations
|
Total
|
||||||||||||||||||||||||||||
Six Months Ended June 30, 2010
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
10
|
$
|
16
|
$
|
26
|
$
|
732
|
$
|
950
|
$
|
1,682
|
$
|
2,032
|
a
|
$
|
456
|
$
|
600
|
$
|
2,189
|
$
|
1,238
|
$
|
4
|
|
$
|
8,227
|
||||||||||||
Intersegment
|
742
|
1,330
|
2,072
|
191
|
45
|
236
|
354
|
–
|
–
|
13
|
11
|
(2,686
|
)
|
–
|
||||||||||||||||||||||||||
Production and delivery
|
323
|
678
|
1,001
|
319
|
446
|
765
|
902
|
206
|
375
|
2,188
|
1,233
|
(2,700
|
)
|
3,970
|
||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
77
|
76
|
153
|
67
|
53
|
120
|
120
|
60
|
25
|
4
|
19
|
19
|
520
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
52
|
–
|
6
|
–
|
10
|
128
|
196
|
|||||||||||||||||||||||||||
Exploration and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
1
|
–
|
–
|
68
|
69
|
|||||||||||||||||||||||||||
Operating income (loss)
|
352
|
592
|
944
|
537
|
496
|
1,033
|
1,312
|
190
|
193
|
10
|
(13
|
)
|
(197
|
)
|
3,472
|
|||||||||||||||||||||||||
Interest expense, net
|
2
|
6
|
8
|
–
|
–
|
–
|
–
|
2
|
–
|
–
|
5
|
252
|
267
|
|||||||||||||||||||||||||||
Provision for income taxes
|
–
|
–
|
–
|
173
|
158
|
331
|
570
|
43
|
–
|
–
|
–
|
167
|
1,111
|
|||||||||||||||||||||||||||
Capital expenditures
|
15
|
66
|
81
|
31
|
123
|
154
|
195
|
50
|
12
|
2
|
12
|
21
|
527
|
|||||||||||||||||||||||||||
Six Months Ended June 30, 2009
|
||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
39
|
$
|
50
|
$
|
89
|
$
|
588
|
$
|
803
|
$
|
1,391
|
$
|
2,350
|
a
|
$
|
57
|
$
|
332
|
$
|
1,354
|
$
|
707
|
$
|
6
|
$
|
6,286
|
|||||||||||||
Intersegment
|
446
|
786
|
1,232
|
147
|
48
|
195
|
382
|
–
|
–
|
12
|
–
|
(1,821
|
)
|
–
|
||||||||||||||||||||||||||
Production and delivery
|
334
|
680
|
1,014
|
302
|
431
|
733
|
765
|
108
|
b
|
281
|
1,357
|
712
|
(1,599
|
)
|
3,371
|
|||||||||||||||||||||||||
Depreciation, depletion and amortization
|
70
|
69
|
139
|
75
|
59
|
134
|
143
|
17
|
22
|
4
|
17
|
12
|
488
|
|||||||||||||||||||||||||||
Lower of cost or market inventory adjustments
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
19
|
–
|
–
|
–
|
19
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
40
|
–
|
7
|
–
|
7
|
97
|
151
|
|||||||||||||||||||||||||||
Exploration and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
54
|
54
|
|||||||||||||||||||||||||||
Restructuring and other charges
|
26
|
(2
|
)
|
24
|
–
|
–
|
–
|
–
|
–
|
(1
|
)
|
(2
|
)
|
–
|
2
|
23
|
||||||||||||||||||||||||
Operating income (loss)
|
55
|
89
|
144
|
358
|
361
|
719
|
1,784
|
(68
|
)
|
4
|
7
|
(29
|
)
|
(381
|
)
|
2,180
|
||||||||||||||||||||||||
Interest expense, net
|
2
|
6
|
8
|
–
|
1
|
1
|
1
|
3
|
–
|
–
|
2
|
274
|
289
|
|||||||||||||||||||||||||||
Provision for (benefit from) income taxes
|
–
|
–
|
–
|
114
|
107
|
221
|
749
|
(26
|
)
|
–
|
–
|
–
|
(71
|
)
|
873
|
|||||||||||||||||||||||||
Capital expenditures
|
34
|
66
|
100
|
70
|
41
|
111
|
128
|
458
|
60
|
6
|
12
|
19
|
894
|
|||||||||||||||||||||||||||
a.
|
Includes PT Freeport Indonesia’s sales to PT Smelting totaling $859 million in the first six months of 2010 and $826 million in the first six months of 2009.
|
|||||||||||||||||||||||||||||||||||||||
b.
|
Includes charges totaling $49 million associated with Tenke Fungurume’s project start-up costs.
|
|||||||||||||||||||||||||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
|
|||||||||||
2009
|
2010
|
2009
|
||||||||||
Financial Data (in millions, except per share amounts)
|
||||||||||||
Revenuesa
|
$
|
3,864
|
b
|
$
|
3,684
|
b
|
$
|
8,227
|
b
|
$
|
6,286
|
b
|
Operating income
|
$
|
1,424
|
b
|
$
|
1,508
|
b
|
$
|
3,472
|
b
|
$
|
2,180
|
b
|
Net income
|
$
|
832
|
$
|
812
|
$
|
2,047
|
$
|
1,019
|
||||
Net income attributable to noncontrolling interests
|
$
|
168
|
$
|
164
|
$
|
438
|
$
|
268
|
||||
Net income attributable to FCX common stockholdersc
|
$
|
649
|
d
|
$
|
588
|
$
|
1,546
|
d
|
$
|
631
|
||
Diluted net income per share attributable to FCX common stockholders
|
$
|
1.40
|
d
|
$
|
1.38
|
$
|
3.40
|
d
|
$
|
1.54
|
||
Diluted weighted-average common shares outstanding
|
473
|
471
|
474
|
426
|
||||||||
FCX Mining Operating Data
|
||||||||||||
Copper (recoverable)
|
||||||||||||
Production (millions of pounds)
|
930
|
1,069
|
1,859
|
2,110
|
||||||||
Sales, excluding purchases (millions of pounds)
|
914
|
1,102
|
1,874
|
2,122
|
||||||||
Average realized price per pound
|
$
|
3.06
|
$
|
2.22
|
$
|
3.13
|
$
|
2.03
|
||||
Site production and delivery costs per pounde,f
|
$
|
1.41
|
$
|
1.04
|
$
|
1.38
|
$
|
1.05
|
||||
Unit net cash costs per pounde,f
|
$
|
0.97
|
$
|
0.43
|
$
|
0.89
|
$
|
0.54
|
||||
Gold (recoverable)
|
||||||||||||
Production (thousands of ounces)
|
316
|
802
|
765
|
1,397
|
||||||||
Sales, excluding purchases (thousands of ounces)
|
298
|
837
|
776
|
1,382
|
||||||||
Average realized price per ounce
|
$
|
1,234
|
$
|
932
|
$
|
1,171
|
$
|
919
|
||||
Molybdenum (recoverable)
|
||||||||||||
Production (millions of pounds)
|
17
|
13
|
34
|
27
|
||||||||
Sales, excluding purchases (millions of pounds)
|
16
|
16
|
33
|
26
|
||||||||
Average realized price per pound
|
$
|
18.18
|
$
|
10.11
|
$
|
16.62
|
$
|
10.65
|
a.
|
Includes the impact of adjustments to provisionally priced concentrate and cathode sales recognized in prior periods. Refer to “Revenues” for further discussion.
|
b.
|
Following is a summary of revenues and operating income (loss) by operating division (in millions):
|
Three Months Ended
|
Three Months Ended
|
|||||||||||
Operating
|
Operating
|
|||||||||||
Income
|
Income
|
|||||||||||
Revenues
|
(Loss)
|
Revenues
|
(Loss)
|
|||||||||
North America copper mines
|
$
|
1,044
|
$
|
436
|
$
|
703
|
$
|
176
|
||||
South America mining
|
849
|
401
|
884
|
455
|
||||||||
Indonesia mining
|
927
|
420
|
1,610
|
1,095
|
||||||||
Africa mining
|
207
|
81
|
57
|
(49
|
)
|
|||||||
Molybdenum
|
325
|
120
|
186
|
8
|
||||||||
Rod & Refining
|
1,129
|
6
|
747
|
2
|
||||||||
Atlantic Copper Smelting & Refining
|
616
|
(2
|
)
|
415
|
(18
|
)
|
||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(38
|
)
|
(918
|
)
|
(161
|
)
|
||||
Total
|
$
|
3,864
|
$
|
1,424
|
$
|
3,684
|
$
|
1,508
|
Six Months Ended
|
Six Months Ended
|
|||||||||||
Operating
|
Operating
|
|||||||||||
Income
|
Income
|
|||||||||||
Revenues
|
(Loss)
|
Revenues
|
(Loss)
|
|||||||||
North America copper mines
|
$
|
2,098
|
$
|
944
|
$
|
1,321
|
$
|
144
|
||||
South America mining
|
1,918
|
1,033
|
1,586
|
719
|
||||||||
Indonesia mining
|
2,386
|
1,312
|
2,732
|
1,784
|
||||||||
Africa mining
|
456
|
190
|
57
|
(68
|
)
|
|||||||
Molybdenum
|
600
|
193
|
332
|
4
|
||||||||
Rod & Refining
|
2,202
|
10
|
1,366
|
7
|
||||||||
Atlantic Copper Smelting & Refining
|
1,249
|
(13
|
)
|
707
|
(29
|
)
|
||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(197
|
)
|
(1,815
|
)
|
(381
|
)
|
||||
Total
|
$
|
8,227
|
$
|
3,472
|
$
|
6,286
|
$
|
2,180
|
c.
|
After net income attributable to noncontrolling interests in subsidiaries and preferred dividends.
|
d.
|
Includes net losses on early extinguishment of debt totaling $42 million ($0.09 per share) for second-quarter 2010 and $65 million ($0.14 per share) for the first six months of 2010. Refer to Note 6 for further discussion.
|
e.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs, and for the 2009 periods excludes Africa mining. For reconciliations of the per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Operations – Unit Net Cash Costs” and to “Product Revenues and Production Costs.”
|
f.
|
The 2009 periods exclude the results of the Tenke Fungurume (Tenke) mine as start-up activities were still under way; the impact of including the results of the Tenke mine for the 2010 periods was $0.01 per pound of copper in second-quarter 2010 and less than $0.01 per pound of copper for the first six months of 2010.
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||
Consolidated revenues – 2009 periods
|
$
|
3,684
|
$
|
6,286
|
||
Higher sales price realizations from mining operations:
|
||||||
Copper
|
768
|
2,005
|
||||
Gold
|
90
|
195
|
||||
Molybdenum
|
132
|
198
|
||||
(Lower) higher sales volumes from mining operations:
|
||||||
Copper
|
(417
|
)
|
(511
|
)
|
||
Gold
|
(502
|
)
|
(557
|
)
|
||
Molybdenum
|
8
|
82
|
||||
Higher purchased copper
|
28
|
30
|
||||
Lower net adjustments for prior period/year provisionally priced sales,
|
||||||
including PT Freeport Indonesia’s 2009 forward copper sales contracts
|
(193
|
)
|
(62
|
)
|
||
Higher Atlantic Copper revenues
|
201
|
542
|
||||
Other, including intercompany eliminations
|
65
|
19
|
||||
Consolidated revenues – 2010 periods
|
$
|
3,864
|
$
|
8,227
|
Six Months Ended
|
Six Months Ended
|
||||||||||||||||||
Income Tax
|
Income Tax
|
||||||||||||||||||
Income
|
Effective
|
(Provision)
|
Income
|
Effective
|
(Provision)
|
||||||||||||||
(Loss)a
|
Tax Rate
|
Benefit
|
(Loss)a
|
Tax Rate
|
Benefit
|
||||||||||||||
U.S.
|
$
|
586
|
23%
|
$
|
(132
|
)
|
$
|
(318
|
)
|
(2)%
|
$
|
(5
|
)
|
||||||
South America
|
1,022
|
32%
|
(331
|
)
|
694
|
32%
|
(221
|
)
|
|||||||||||
Indonesia
|
1,349
|
42%
|
(570
|
)
|
1,759
|
43%
|
(749
|
)
|
|||||||||||
Africa
|
142
|
30%
|
(43
|
)
|
(86
|
)
|
30%
|
26
|
|||||||||||
Eliminations and other
|
50
|
N/A
|
(24
|
)
|
(175
|
)
|
N/A
|
56
|
|||||||||||
Annualized rate adjustment b
|
N/A
|
N/A
|
(11
|
)
|
N/A
|
N/A
|
20
|
||||||||||||
Consolidated FCX
|
$
|
3,149
|
35%c
|
$
|
(1,111
|
)
|
$
|
1,874
|
47%
|
$
|
(873
|
)
|
a.
|
Represents income (loss) by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our estimated annualized tax rate.
|
c.
|
Our estimated consolidated effective tax rate for the year 2010 will vary with commodity price changes and the mix of income from international and U.S. operations. Assuming average prices of $3.00 per pound of copper, $1,200 per ounce of gold and $14 per pound of molybdenum for the remainder of 2010 and current 2010 sales volume and cost estimates, we estimate our annual consolidated effective tax rate will approximate 36 percent.
|
Three Months Ended
June 30,
|
Six Months Ended
|
||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Operating Data, Net of Joint Venture Interest
|
|||||||||||||
Copper (millions of recoverable pounds)
|
|||||||||||||
Production
|
263
|
272
|
527
|
561
|
|||||||||
Sales, excluding purchases
|
289
|
281
|
580
|
582
|
|||||||||
Average realized price per pound
|
$
|
3.21
|
$
|
2.18
|
$
|
3.27
|
$
|
1.88
|
|||||
Molybdenum (millions of recoverable pounds)
|
|||||||||||||
Productiona
|
5
|
7
|
11
|
13
|
|||||||||
100% Operating Data
|
|||||||||||||
SX/EW operations
|
|||||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
646,100
|
553,700
|
624,100
|
611,200
|
|||||||||
Average copper ore grade (percent)
|
0.25
|
0.31
|
0.25
|
0.30
|
|||||||||
Copper production (millions of recoverable pounds)
|
182
|
201
|
384
|
423
|
|||||||||
Mill operations
|
|||||||||||||
Ore milled (metric tons per day)
|
195,300
|
170,600
|
179,200
|
175,700
|
|||||||||
Average ore grade (percent):
|
|||||||||||||
Copper
|
0.32
|
0.31
|
0.31
|
0.33
|
|||||||||
Molybdenum
|
0.02
|
0.03
|
0.02
|
0.03
|
|||||||||
Copper recovery rate (percent)
|
81.4
|
84.8
|
83.3
|
85.3
|
|||||||||
Production (millions of recoverable pounds):
|
|||||||||||||
Copper
|
100
|
89
|
180
|
177
|
|||||||||
Molybdenum
|
5
|
7
|
11
|
13
|
a.
|
Reflects by-product molybdenum production from the North America copper mines. Sales of by-product molybdenum are reflected in the Molybdenum division.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||
By-
|
Co-Product Method
|
By-
|
Co-Product Method
|
|||||||||||||||
Product
|
Molyb-
|
Product
|
Molyb-
|
|||||||||||||||
Method
|
Copper
|
denuma
|
Method
|
Copper
|
denuma
|
|||||||||||||
Revenues, excluding adjustments
|
$
|
3.21
|
$
|
3.21
|
$
|
17.34
|
$
|
2.18
|
$
|
2.18
|
$
|
8.43
|
||||||
Site production and delivery, before net noncash
|
||||||||||||||||||
and other costs shown below
|
1.46
|
1.31
|
8.55
|
1.24
|
1.13
|
5.34
|
||||||||||||
By-product creditsa
|
(0.38
|
)
|
–
|
–
|
(0.21
|
)
|
–
|
–
|
||||||||||
Treatment charges
|
0.09
|
0.08
|
–
|
0.09
|
0.08
|
–
|
||||||||||||
Unit net cash costs
|
1.17
|
1.39
|
8.55
|
1.12
|
1.21
|
5.34
|
||||||||||||
Depreciation, depletion and amortization
|
0.23
|
0.22
|
0.64
|
0.21
|
0.21
|
0.36
|
||||||||||||
Noncash and other costs, net
|
0.19
|
0.18
|
0.04
|
0.15
|
0.14
|
0.04
|
||||||||||||
Total unit costs
|
1.59
|
1.79
|
9.23
|
1.48
|
1.56
|
5.74
|
||||||||||||
Revenue adjustments, primarily for hedging
|
–
|
–
|
–
|
0.06
|
0.06
|
–
|
||||||||||||
Idle facility and other non-inventoriable costs
|
(0.08
|
)
|
(0.08
|
)
|
(0.01
|
)
|
(0.08
|
)
|
(0.08
|
)
|
–
|
|||||||
Gross profit per pound
|
$
|
1.54
|
$
|
1.34
|
$
|
8.10
|
$
|
0.68
|
$
|
0.60
|
$
|
2.69
|
||||||
Copper sales (millions of recoverable pounds)
|
288
|
288
|
281
|
281
|
||||||||||||||
Molybdenum sales (millions of recoverable pounds)b
|
5
|
7
|
Six Months Ended
|
Six Months Ended
|
|||||||||||||||||
By-
|
Co-Product Method
|
By-
|
Co-Product Method
|
|||||||||||||||
Product
|
Molyb-
|
Product
|
Molyb-
|
|||||||||||||||
Method
|
Copper
|
denuma
|
Method
|
Copper
|
denuma
|
|||||||||||||
Revenues, excluding adjustments
|
$
|
3.27
|
$
|
3.27
|
$
|
15.71
|
$
|
1.88
|
$
|
1.88
|
$
|
9.02
|
||||||
Site production and delivery, before net noncash
|
||||||||||||||||||
and other costs shown below
|
1.39
|
1.25
|
8.00
|
1.28
|
1.19
|
4.85
|
||||||||||||
By-product creditsa
|
(0.32
|
)
|
–
|
–
|
(0.19
|
)
|
–
|
–
|
||||||||||
Treatment charges
|
0.08
|
0.08
|
–
|
0.08
|
0.08
|
–
|
||||||||||||
Unit net cash costs
|
1.15
|
1.33
|
8.00
|
1.17
|
1.27
|
4.85
|
||||||||||||
Depreciation, depletion and amortization
|
0.25
|
0.24
|
0.63
|
0.23
|
0.22
|
0.29
|
||||||||||||
Noncash and other costs, net
|
0.13
|
0.13
|
0.05
|
0.15
|
0.15
|
0.10
|
||||||||||||
Total unit costs
|
1.53
|
1.70
|
8.68
|
1.55
|
1.64
|
5.24
|
||||||||||||
Revenue adjustments, primarily for hedging
|
–
|
–
|
–
|
0.15
|
0.15
|
–
|
||||||||||||
Idle facility and other non-inventoriable costs
|
(0.08
|
)
|
(0.08
|
)
|
(0.01
|
)
|
(0.10
|
)
|
(0.11
|
)
|
–
|
|||||||
Gross profit per pound
|
$
|
1.66
|
$
|
1.49
|
$
|
7.02
|
$
|
0.38
|
$
|
0.28
|
$
|
3.78
|
||||||
Copper sales (millions of recoverable pounds)
|
579
|
579
|
582
|
582
|
||||||||||||||
Molybdenum sales (millions of recoverable pounds)b
|
11
|
13
|
a.
|
Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
|
Three Months Ended
June 30,
|
Six Months Ended
|
||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Copper (millions of recoverable pounds)
|
|||||||||||||
Production
|
329
|
358
|
651
|
706
|
|||||||||
Sales
|
311
|
363
|
618
|
713
|
|||||||||
Average realized price per pound
|
$
|
3.02
|
$
|
2.22
|
$
|
3.07
|
$
|
2.10
|
|||||
Gold (thousands of recoverable ounces)
|
|||||||||||||
Production
|
20
|
24
|
39
|
47
|
|||||||||
Sales
|
20
|
25
|
39
|
48
|
|||||||||
Average realized price per ounce
|
$
|
1,221
|
$
|
928
|
$
|
1,175
|
$
|
915
|
|||||
Molybdenum (millions of recoverable pounds)
|
|||||||||||||
Productiona
|
1
|
–
|
3
|
1
|
|||||||||
SX/EW operations
|
|||||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
247,400
|
260,200
|
251,600
|
255,400
|
|||||||||
Average copper ore grade (percent)
|
0.42
|
0.44
|
0.43
|
0.45
|
|||||||||
Copper production (millions of recoverable pounds)
|
130
|
141
|
263
|
278
|
|||||||||
Mill operations
|
|||||||||||||
Ore milled (metric tons per day)
|
187,100
|
186,300
|
183,600
|
184,400
|
|||||||||
Average ore grade (percent):b
|
|||||||||||||
Copper
|
0.62
|
0.67
|
0.62
|
0.68
|
|||||||||
Molybdenum
|
0.02
|
0.02
|
0.02
|
0.02
|
|||||||||
Copper recovery rate (percent)
|
89.9
|
90.2
|
89.5
|
89.6
|
|||||||||
Production (recoverable):
|
|||||||||||||
Copper (millions of pounds)
|
199
|
217
|
388
|
428
|
|||||||||
Gold (thousands of ounces)
|
20
|
24
|
39
|
47
|
|||||||||
Molybdenum (millions of pounds)
|
1
|
–
|
3
|
1
|
a.
|
Reflects by-product molybdenum production from our Cerro Verde copper mine. Sales of by-product molybdenum are reflected in the Molybdenum division.
|
b.
|
Average ore grades of gold produced at our South America mining operations rounds to less than 0.001 grams per metric ton.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||
By-Product
|
Co-Product
|
By-Product
|
Co-Product
|
|||||||||
Method
|
Method
|
Method
|
Method
|
|||||||||
Revenues, excluding adjustments
|
$
|
3.02
|
$
|
3.02
|
$
|
2.22
|
$
|
2.22
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
1.22
|
1.14
|
1.00
|
0.95
|
||||||||
By-product credits
|
(0.19
|
)
|
–
|
(0.10
|
)
|
–
|
||||||
Treatment charges
|
0.11
|
0.11
|
0.15
|
0.15
|
||||||||
Unit net cash costs
|
1.14
|
1.25
|
1.05
|
1.10
|
||||||||
Depreciation, depletion and amortization
|
0.19
|
0.18
|
0.19
|
0.19
|
||||||||
Noncash and other costs, net
|
0.02
|
0.02
|
(0.01
|
)
|
–
|
|||||||
Total unit costs
|
1.35
|
1.45
|
1.23
|
1.29
|
||||||||
Revenue adjustments, primarily for pricing on
|
||||||||||||
prior period open sales
|
(0.37
|
)
|
(0.37
|
)
|
0.26
|
0.26
|
||||||
Other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
(0.02
|
)
|
(0.01
|
)
|
||||
Gross profit per pound
|
$
|
1.28
|
$
|
1.18
|
$
|
1.23
|
$
|
1.18
|
||||
Copper sales (millions of recoverable pounds)
|
311
|
311
|
363
|
363
|
Six Months Ended
|
Six Months Ended
|
|||||||||||
By-Product
|
Co-Product
|
By-Product
|
Co-Product
|
|||||||||
Method
|
Method
|
Method
|
Method
|
|||||||||
Revenues, excluding adjustments
|
$
|
3.07
|
$
|
3.07
|
$
|
2.10
|
$
|
2.10
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
1.21
|
1.14
|
1.00
|
0.94
|
||||||||
By-product credits
|
(0.18
|
)
|
–
|
(0.11
|
)
|
–
|
||||||
Treatment charges
|
0.13
|
0.13
|
0.15
|
0.14
|
||||||||
Unit net cash costs
|
1.16
|
1.27
|
1.04
|
1.08
|
||||||||
Depreciation, depletion and amortization
|
0.19
|
0.18
|
0.19
|
0.18
|
||||||||
Noncash and other costs, net
|
0.01
|
0.01
|
–
|
0.01
|
||||||||
Total unit costs
|
1.36
|
1.46
|
1.23
|
1.27
|
||||||||
Revenue adjustments, primarily for pricing on
|
||||||||||||
prior period open sales
|
(0.03
|
)
|
(0.03
|
)
|
0.15
|
0.15
|
||||||
Other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
(0.03
|
)
|
(0.02
|
)
|
||||
Gross profit per pound
|
$
|
1.66
|
$
|
1.56
|
$
|
0.99
|
$
|
0.96
|
||||
Copper sales (millions of recoverable pounds)
|
618
|
618
|
713
|
713
|
Three Months Ended
June 30,
|
Six Months Ended
|
||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Consolidated Operating Data, Net of Joint Venture Interest
|
|||||||||||||
Copper (millions of recoverable pounds)
|
|||||||||||||
Production
|
276
|
403
|
555
|
807
|
|||||||||
Sales
|
259
|
432
|
555
|
801
|
|||||||||
Average realized price per pound
|
$
|
2.95
|
$
|
2.24
|
$
|
3.05
|
$
|
2.06
|
|||||
Gold (thousands of recoverable ounces)
|
|||||||||||||
Production
|
294
|
778
|
723
|
1,348
|
|||||||||
Sales
|
276
|
811
|
734
|
1,332
|
|||||||||
Average realized price per ounce
|
$
|
1,235
|
$
|
932
|
$
|
1,171
|
$
|
919
|
|||||
100% Operating Data
|
|||||||||||||
Ore milled (metric tons per day):
|
|||||||||||||
Grasberg open pita
|
145,400
|
165,300
|
150,200
|
165,200
|
|||||||||
DOZ underground minea
|
78,000
|
72,400
|
78,500
|
72,400
|
|||||||||
Total
|
223,400
|
237,700
|
228,700
|
237,600
|
|||||||||
Average ore grade:
|
|||||||||||||
Copper (percent)
|
0.81
|
1.10
|
0.79
|
1.11
|
|||||||||
Gold (grams per metric ton)
|
0.63
|
1.51
|
0.75
|
1.32
|
|||||||||
Recovery rates (percent):
|
|||||||||||||
Copper
|
89.1
|
90.6
|
88.7
|
90.6
|
|||||||||
Gold
|
78.2
|
83.6
|
78.7
|
82.9
|
|||||||||
Production (recoverable):
|
|||||||||||||
Copper (millions of pounds)
|
305
|
457
|
613
|
913
|
|||||||||
Gold (thousands of ounces)
|
319
|
849
|
785
|
1,468
|
a.
|
Amounts represent the approximate average daily throughput processed at PT Freeport Indonesia’s mill facilities from each producing mine.
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||
By-Product
|
Co-Product Method
|
By-Product
|
Co-Product Method
|
|||||||||||||||
Method
|
Copper
|
Gold
|
Method
|
Copper
|
Gold
|
|||||||||||||
Revenues, excluding adjustments
|
$
|
2.95
|
$
|
2.95
|
$
|
1,235.26
|
$
|
2.24
|
$
|
2.24
|
$
|
932.32
|
||||||
Site production and delivery, before net noncash
|
||||||||||||||||||
and other costs shown below
|
1.62
|
1.10
|
474.65
|
0.93
|
0.52
|
214.22
|
||||||||||||
Gold and silver credits
|
(1.41
|
)
|
–
|
–
|
(1.80
|
)
|
–
|
–
|
||||||||||
Treatment charges
|
0.26
|
0.18
|
75.18
|
0.22
|
0.12
|
50.10
|
||||||||||||
Royalty on metals
|
0.11
|
0.07
|
31.10
|
0.12
|
0.06
|
26.44
|
||||||||||||
Unit net cash costs (credits)
|
0.58
|
1.35
|
580.93
|
(0.53
|
)
|
0.70
|
290.76
|
|||||||||||
Depreciation and amortization
|
0.22
|
0.15
|
63.62
|
0.18
|
0.10
|
41.45
|
||||||||||||
Noncash and other costs, net
|
0.02
|
0.01
|
6.36
|
0.03
|
0.02
|
6.66
|
||||||||||||
Total unit costs (credits)
|
0.82
|
1.51
|
650.91
|
(0.32
|
)
|
0.82
|
338.87
|
|||||||||||
Revenue adjustments, primarily for pricing on
|
||||||||||||||||||
prior period open sales
|
(0.42
|
)
|
(0.42
|
)
|
37.24
|
0.03
|
0.03
|
(4.04
|
)
|
|||||||||
PT Smelting intercompany profit
|
0.06
|
0.04
|
18.86
|
(0.07
|
)
|
(0.04
|
)
|
(16.23
|
)
|
|||||||||
Gross profit per pound/ounce
|
$
|
1.77
|
$
|
1.06
|
$
|
640.45
|
$
|
2.52
|
$
|
1.41
|
$
|
573.18
|
||||||
Copper sales (millions of recoverable pounds)
|
259
|
259
|
432
|
432
|
||||||||||||||
Gold sales (thousands of recoverable ounces)
|
276
|
811
|
Six Months Ended
|
Six Months Ended
|
|||||||||||||||||
By-Product
|
Co-Product Method
|
By-Product
|
Co-Product Method
|
|||||||||||||||
Method
|
Copper
|
Gold
|
Method
|
Copper
|
Gold
|
|||||||||||||
Revenues, excluding adjustments
|
$
|
3.05
|
$
|
3.05
|
$
|
1,170.67
|
$
|
2.06
|
$
|
2.06
|
$
|
919.28
|
||||||
Site production and delivery, before net noncash
|
||||||||||||||||||
and other costs shown below
|
1.58
|
1.03
|
397.55
|
0.92
|
0.52
|
233.90
|
||||||||||||
Gold and silver credits
|
(1.61
|
)
|
–
|
–
|
(1.58
|
)
|
–
|
–
|
||||||||||
Treatment charges
|
0.24
|
0.16
|
60.53
|
0.21
|
0.12
|
53.44
|
||||||||||||
Royalty on metals
|
0.11
|
0.08
|
28.90
|
0.09
|
0.05
|
23.48
|
||||||||||||
Unit net cash costs (credits)
|
0.32
|
1.27
|
486.98
|
(0.36
|
)
|
0.69
|
310.82
|
|||||||||||
Depreciation and amortization
|
0.22
|
0.14
|
54.28
|
0.18
|
0.10
|
45.11
|
||||||||||||
Noncash and other costs, net
|
0.04
|
0.03
|
10.91
|
0.03
|
0.02
|
7.99
|
||||||||||||
Total unit costs (credits)
|
0.58
|
1.44
|
552.17
|
(0.15
|
)
|
0.81
|
363.92
|
|||||||||||
Revenue adjustments, primarily for pricing on
|
||||||||||||||||||
prior period open sales
|
(0.01
|
)
|
(0.01
|
)
|
1.82
|
0.07
|
0.07
|
4.12
|
||||||||||
PT Smelting intercompany profit
|
0.05
|
0.04
|
13.05
|
(0.05
|
)
|
(0.03
|
)
|
(11.81
|
)
|
|||||||||
Gross profit per pound/ounce
|
$
|
2.51
|
$
|
1.64
|
$
|
633.37
|
$
|
2.23
|
$
|
1.29
|
$
|
547.67
|
||||||
Copper sales (millions of recoverable pounds)
|
555
|
555
|
801
|
801
|
||||||||||||||
Gold sales (thousands of recoverable ounces)
|
734
|
1,332
|
Three Months Ended
June 30,
|
Six Months Ended
|
||||||||||||
2009
|
2010
|
2009a
|
|||||||||||
Copper (millions of recoverable pounds)
|
|||||||||||||
Production
|
62
|
36
|
126
|
36
|
|||||||||
Sales
|
55
|
26
|
121
|
26
|
|||||||||
Average realized price per pound
|
$
|
2.96
|
$
|
2.20
|
$
|
3.12
|
$
|
2.20
|
|||||
Cobalt (millions of contained pounds)
|
|||||||||||||
Production
|
4
|
N/A
|
b
|
9
|
N/A
|
b
|
|||||||
Sales
|
4
|
N/A
|
b
|
7
|
N/A
|
b
|
|||||||
Average realized price per pound
|
$
|
12.37
|
N/A
|
b
|
$
|
11.91
|
N/A
|
b
|
|||||
Ore milled (metric tons per day)
|
8,800
|
6,800
|
9,200
|
6,300
|
|||||||||
Average ore grade (percent):
|
|||||||||||||
Copper
|
3.87
|
3.45
|
3.78
|
3.21
|
|||||||||
Cobalt
|
0.35
|
N/A
|
b
|
0.40
|
N/A
|
b
|
|||||||
Copper recovery rate (percent)
|
90.7
|
92.1
|
91.2
|
92.1
|
b.
|
Comparative results for the 2009 periods have not been included as start up activities were still under way.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||
By-Product
|
Co-Product Method
|
By-Product
|
Co-Product Method
|
|||||||||||||||
Method
|
Copper
|
Cobalt
|
Method
|
Copper
|
Cobalt
|
|||||||||||||
Revenues, excluding adjustments
|
$
|
2.96
|
$
|
2.96
|
$
|
12.37
|
$
|
3.12
|
$
|
3.12
|
$
|
11.91
|
||||||
Site production and delivery, before net noncash
|
||||||||||||||||||
and other costs shown below
|
1.27
|
1.15
|
6.63
|
1.32
|
1.25
|
5.73
|
||||||||||||
Cobalt credits
|
(0.54
|
)a
|
–
|
–
|
(0.46
|
)a
|
–
|
–
|
||||||||||
Royalty on metals
|
0.06
|
0.05
|
0.20
|
0.07
|
0.05
|
0.21
|
||||||||||||
Unit net cash costs
|
0.79
|
1.20
|
6.83
|
0.93
|
1.30
|
5.94
|
||||||||||||
Depreciation, depletion and amortization
|
0.55
|
0.47
|
1.13
|
0.49
|
0.41
|
1.53
|
||||||||||||
Noncash and other costs, net
|
0.04
|
0.03
|
0.08
|
0.03
|
0.03
|
0.09
|
||||||||||||
Total unit costs
|
1.38
|
1.70
|
8.04
|
1.45
|
1.74
|
7.56
|
||||||||||||
Revenue adjustments, primarily for pricing on
|
||||||||||||||||||
prior period open sales
|
(0.01
|
)
|
(0.01
|
)
|
0.35
|
–
|
–
|
0.51
|
||||||||||
Other non-inventoriable costs
|
(0.10
|
)
|
(0.09
|
)
|
(0.22
|
)
|
(0.10
|
)
|
(0.08
|
)
|
(0.30
|
)
|
||||||
Gross profit per pound
|
$
|
1.47
|
$
|
1.16
|
$
|
4.46
|
$
|
1.57
|
$
|
1.30
|
$
|
4.56
|
||||||
Copper sales (millions of recoverable pounds)
|
55
|
55
|
121
|
121
|
||||||||||||||
Cobalt sales (millions of contained pounds)
|
4
|
7
|
Three Months Ended
June 30,
|
Six Months Ended
|
||||||||||||
2009
|
2010
|
2009
|
|||||||||||
Molybdenum (millions of recoverable pounds)
|
|||||||||||||
Productiona
|
11
|
6
|
20
|
13
|
|||||||||
Sales, excluding purchasesb
|
16
|
16
|
33
|
26
|
|||||||||
Average realized price per pound
|
$
|
18.18
|
$
|
10.11
|
$
|
16.62
|
$
|
10.65
|
|||||
Henderson molybdenum mine
|
|||||||||||||
Ore milled (metric tons per day)
|
22,800
|
11,700
|
23,000
|
13,400
|
|||||||||
Average molybdenum ore grade (percent)
|
0.25
|
0.27
|
0.24
|
0.25
|
|||||||||
Molybdenum production (millions of recoverable pounds)
|
11
|
6
|
20
|
13
|
b.
|
Includes sales of molybdenum produced as a by-product at our North and South America copper mines.
|
Three Months Ended
June 30,
|
Six Months Ended
|
|||||||||||
2009a
|
2010
|
2009a
|
||||||||||
Revenues, excluding adjustments
|
$
|
17.36
|
$
|
10.96
|
$
|
16.06
|
$
|
11.32
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
4.65
|
5.99
|
4.57
|
5.78
|
||||||||
Treatment charges and other
|
1.08
|
1.10
|
1.08
|
1.09
|
||||||||
Unit net cash costs
|
5.73
|
7.09
|
5.65
|
6.87
|
||||||||
Depreciation, depletion and amortization
|
0.82
|
1.00
|
0.83
|
0.96
|
||||||||
Noncash and other costs, net
|
0.02
|
0.07
|
0.03
|
0.05
|
||||||||
Total unit costs
|
6.57
|
8.16
|
6.51
|
7.88
|
||||||||
Gross profitb
|
$
|
10.79
|
$
|
2.80
|
$
|
9.55
|
$
|
3.44
|
||||
Molybdenum sales (millions of recoverable pounds)c
|
11
|
6
|
20
|
13
|
a.
|
Revenues and costs were adjusted to include freight and downstream conversion costs in net cash costs; gross profit was not affected by these adjustments.
|
b.
|
Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum segment includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
|
June 30,
|
||||||
2009
|
||||||
Cash at domestic companiesa
|
$
|
1.0
|
$
|
1.5
|
||
Cash at international operations
|
2.0
|
1.2
|
||||
Total consolidated cash and cash equivalents
|
3.0
|
2.7
|
||||
Less: Noncontrolling interests’ share
|
(0.6
|
)
|
(0.3
|
)
|
||
Cash, net of noncontrolling interests’ share
|
2.4
|
2.4
|
||||
Less: Withholding taxes and other
|
(0.2
|
)
|
(0.2
|
)
|
||
Net cash available
|
$
|
2.2
|
$
|
2.2
|
Three Months Ended June 30, 2010
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Molybdenuma
|
Otherb
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
925
|
$
|
925
|
$
|
104
|
$
|
19
|
$
|
1,048
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
421
|
376
|
51
|
9
|
436
|
||||||||||
By-product creditsa
|
(108
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
26
|
26
|
–
|
–
|
26
|
||||||||||
Net cash costs
|
339
|
402
|
51
|
9
|
462
|
||||||||||
Depreciation, depletion and amortization
|
66
|
62
|
3
|
1
|
66
|
||||||||||
Noncash and other costs, net
|
53
|
52
|
1
|
–
|
53
|
||||||||||
Total costs
|
458
|
516
|
55
|
10
|
581
|
||||||||||
Revenue adjustments, primarily for hedging
|
(1
|
)
|
(1
|
)
|
–
|
–
|
(1
|
)
|
|||||||
Idle facility and other non-inventoriable costs
|
(21
|
)
|
(21
|
)
|
–
|
–
|
(21
|
)
|
|||||||
Gross profit
|
$
|
445
|
$
|
387
|
$
|
49
|
$
|
9
|
$
|
445
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
1,048
|
$
|
436
|
$
|
66
|
|||||||||
Net noncash and other costs per above
|
N/A
|
53
|
N/A
|
||||||||||||
Treatment charges per above
|
N/A
|
26
|
N/A
|
||||||||||||
Revenue adjustments, primarily for hedging per above
|
(1
|
)
|
N/A
|
N/A
|
|||||||||||
Idle facility and other non-inventoriable costs per above
|
N/A
|
21
|
N/A
|
||||||||||||
Eliminations and other
|
(3
|
)
|
1
|
5
|
|||||||||||
North America copper mines
|
1,044
|
537
|
71
|
||||||||||||
South America mining
|
849
|
389
|
59
|
||||||||||||
Indonesia mining
|
927
|
427
|
57
|
||||||||||||
Africa mining
|
207
|
96
|
30
|
||||||||||||
Molybdenum
|
325
|
190
|
12
|
||||||||||||
Rod & Refining
|
1,129
|
1,121
|
2
|
||||||||||||
Atlantic Copper Smelting & Refining
|
616
|
605
|
9
|
||||||||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(1,313
|
)
|
9
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,864
|
$
|
2,052
|
$
|
249
|
a.
|
Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
|
Three Months Ended June 30, 2009
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Molybdenuma
|
Otherb
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
615
|
$
|
615
|
$
|
60
|
$
|
10
|
$
|
685
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
350
|
318
|
38
|
6
|
362
|
||||||||||
By-product creditsa
|
(58
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
25
|
24
|
–
|
1
|
25
|
||||||||||
Net cash costs
|
317
|
342
|
38
|
7
|
387
|
||||||||||
Depreciation, depletion and amortization
|
60
|
57
|
3
|
–
|
60
|
||||||||||
Noncash and other costs, net
|
41
|
41
|
–
|
–
|
41
|
||||||||||
Total costs
|
418
|
440
|
41
|
7
|
488
|
||||||||||
Revenue adjustments, primarily for hedging
|
19
|
19
|
–
|
–
|
19
|
||||||||||
Idle facility and other non-inventoriable costs
|
(24
|
)
|
(24
|
)
|
–
|
–
|
(24
|
)
|
|||||||
Gross profit
|
$
|
192
|
$
|
170
|
$
|
19
|
$
|
3
|
$
|
192
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
685
|
$
|
362
|
$
|
60
|
|||||||||
Net noncash and other costs per above
|
N/A
|
41
|
N/A
|
||||||||||||
Treatment charges per above
|
N/A
|
25
|
N/A
|
||||||||||||
Revenue adjustments, primarily for hedging per above
|
19
|
N/A
|
N/A
|
||||||||||||
Idle facility and other non-inventoriable costs per above
|
N/A
|
24
|
N/A
|
||||||||||||
Eliminations and other
|
(1
|
)
|
9
|
4
|
|||||||||||
North America copper mines
|
703
|
461
|
64
|
||||||||||||
South America mining
|
884
|
366
|
69
|
||||||||||||
Indonesia mining
|
1,610
|
415
|
78
|
||||||||||||
Africa mining
|
57
|
92
|
14
|
||||||||||||
Molybdenum
|
186
|
162
|
13
|
||||||||||||
Rod & Refining
|
747
|
743
|
2
|
||||||||||||
Atlantic Copper Smelting & Refining
|
415
|
419
|
9
|
||||||||||||
Corporate, other & eliminations
|
(918
|
)
|
(849
|
)
|
7
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,684
|
$
|
1,809
|
$
|
256
|
a.
|
Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
|
Six Months Ended June 30, 2010
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Molybdenuma
|
Otherb
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
1,890
|
$
|
1,890
|
$
|
181
|
$
|
31
|
$
|
2,102
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
802
|
725
|
92
|
14
|
831
|
||||||||||
By-product creditsa
|
(183
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
48
|
47
|
–
|
1
|
48
|
||||||||||
Net cash costs
|
667
|
772
|
92
|
15
|
879
|
||||||||||
Depreciation, depletion and amortization
|
144
|
136
|
7
|
1
|
144
|
||||||||||
Noncash and other costs, net
|
77
|
76
|
1
|
–
|
77
|
||||||||||
Total costs
|
888
|
984
|
100
|
16
|
1,100
|
||||||||||
Revenue adjustments, primarily for hedging
|
(2
|
)
|
(2
|
)
|
–
|
–
|
(2
|
)
|
|||||||
Idle facility and other non-inventoriable costs
|
(39
|
)
|
(39
|
)
|
–
|
–
|
(39
|
)
|
|||||||
Gross profit
|
$
|
961
|
$
|
865
|
$
|
81
|
$
|
15
|
$
|
961
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
2,102
|
$
|
831
|
$
|
144
|
|||||||||
Net noncash and other costs per above
|
N/A
|
77
|
N/A
|
||||||||||||
Treatment charges per above
|
N/A
|
48
|
N/A
|
||||||||||||
Revenue adjustments, primarily for hedging per above
|
(2
|
)
|
N/A
|
N/A
|
|||||||||||
Idle facility and other non-inventoriable costs per above
|
N/A
|
39
|
N/A
|
||||||||||||
Eliminations and other
|
(2
|
)
|
6
|
9
|
|||||||||||
North America copper mines
|
2,098
|
1,001
|
153
|
||||||||||||
South America mining
|
1,918
|
765
|
120
|
||||||||||||
Indonesia mining
|
2,386
|
902
|
120
|
||||||||||||
Africa mining
|
456
|
206
|
60
|
||||||||||||
Molybdenum
|
600
|
375
|
25
|
||||||||||||
Rod & Refining
|
2,202
|
2,188
|
4
|
||||||||||||
Atlantic Copper Smelting & Refining
|
1,249
|
1,233
|
19
|
||||||||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(2,700
|
)
|
19
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
8,227
|
$
|
3,970
|
$
|
520
|
a.
|
Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
|
Six Months Ended June 30, 2009
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Molybdenuma
|
Otherb
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
1,095
|
$
|
1,095
|
$
|
119
|
$
|
16
|
$
|
1,230
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
746
|
696
|
64
|
8
|
768
|
||||||||||
By-product creditsa
|
(113
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
50
|
49
|
–
|
1
|
50
|
||||||||||
Net cash costs
|
683
|
745
|
64
|
9
|
818
|
||||||||||
Depreciation, depletion and amortization
|
131
|
126
|
4
|
1
|
131
|
||||||||||
Noncash and other costs, net
|
87
|
86
|
1
|
–
|
87
|
||||||||||
Total costs
|
901
|
957
|
69
|
10
|
1,036
|
||||||||||
Revenue adjustments, primarily for hedging
|
88
|
88
|
–
|
–
|
88
|
||||||||||
Idle facility and other non-inventoriable costs
|
(62
|
)
|
(62
|
)
|
–
|
–
|
(62
|
)
|
|||||||
Gross profit
|
$
|
220
|
$
|
164
|
$
|
50
|
$
|
6
|
$
|
220
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
1,230
|
$
|
768
|
$
|
131
|
|||||||||
Net noncash and other costs per above
|
N/A
|
87
|
N/A
|
||||||||||||
Treatment charges per above
|
N/A
|
50
|
N/A
|
||||||||||||
Revenue adjustments, primarily for hedging per above
|
88
|
N/A
|
N/A
|
||||||||||||
Idle facility and other non-inventoriable costs per above
|
N/A
|
62
|
N/A
|
||||||||||||
Eliminations and other
|
3
|
47
|
8
|
||||||||||||
North America copper mines
|
1,321
|
1,014
|
139
|
||||||||||||
South America mining
|
1,586
|
733
|
134
|
||||||||||||
Indonesia mining
|
2,732
|
765
|
143
|
||||||||||||
Africa mining
|
57
|
108
|
17
|
||||||||||||
Molybdenum
|
332
|
300
|
c
|
22
|
|||||||||||
Rod & Refining
|
1,366
|
1,357
|
4
|
||||||||||||
Atlantic Copper Smelting & Refining
|
707
|
712
|
17
|
||||||||||||
Corporate, other & eliminations
|
(1,815
|
)
|
(1,599
|
)
|
12
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
6,286
|
$
|
3,390
|
c
|
$
|
488
|
a.
|
Molybdenum by-product credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
|
Three Months Ended June 30, 2010
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Other a
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
936
|
$
|
936
|
$
|
60
|
$
|
996
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
379
|
356
|
26
|
382
|
||||||||
By-product credits
|
(57
|
)
|
–
|
–
|
–
|
|||||||
Treatment charges
|
33
|
33
|
–
|
33
|
||||||||
Net cash costs
|
355
|
389
|
26
|
415
|
||||||||
Depreciation, depletion and amortization
|
59
|
57
|
2
|
59
|
||||||||
Noncash and other costs, net
|
5
|
4
|
1
|
5
|
||||||||
Total costs
|
419
|
450
|
29
|
479
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
(114
|
)
|
(114
|
)
|
–
|
(114
|
)
|
|||||
Other non-inventoriable costs
|
(6
|
)
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||
Gross profit
|
$
|
397
|
$
|
367
|
$
|
30
|
$
|
397
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
996
|
$
|
382
|
$
|
59
|
||||||
Net noncash and other costs per above
|
N/A
|
5
|
N/A
|
|||||||||
Treatment charges per above
|
(33
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
(114
|
)
|
N/A
|
N/A
|
||||||||
Other non-inventoriable costs per above
|
N/A
|
6
|
N/A
|
|||||||||
Eliminations and other
|
–
|
(4
|
)
|
–
|
||||||||
South America mining
|
849
|
389
|
59
|
|||||||||
North America copper mines
|
1,044
|
537
|
71
|
|||||||||
Indonesia mining
|
927
|
427
|
57
|
|||||||||
Africa mining
|
207
|
96
|
30
|
|||||||||
Molybdenum
|
325
|
190
|
12
|
|||||||||
Rod & Refining
|
1,129
|
1,121
|
2
|
|||||||||
Atlantic Copper Smelting & Refining
|
616
|
605
|
9
|
|||||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(1,313
|
)
|
9
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,864
|
$
|
2,052
|
$
|
249
|
Three Months Ended June 30, 2009
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Other a
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
803
|
$
|
803
|
$
|
40
|
$
|
843
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
364
|
346
|
19
|
365
|
||||||||
By-product credits
|
(39
|
)
|
–
|
–
|
–
|
|||||||
Treatment charges
|
54
|
54
|
–
|
54
|
||||||||
Net cash costs
|
379
|
400
|
19
|
419
|
||||||||
Depreciation, depletion and amortization
|
69
|
67
|
2
|
69
|
||||||||
Noncash and other costs, net
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
||||
Total costs
|
446
|
466
|
20
|
486
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
95
|
95
|
–
|
95
|
||||||||
Other non-inventoriable costs
|
(8
|
)
|
(5
|
)
|
(3
|
)
|
(8
|
)
|
||||
Gross profit
|
$
|
444
|
$
|
427
|
$
|
17
|
$
|
444
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
843
|
$
|
365
|
$
|
69
|
||||||
Net noncash and other costs per above
|
N/A
|
(2
|
)
|
N/A
|
||||||||
Treatment charges per above
|
(54
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
95
|
N/A
|
N/A
|
|||||||||
Other non-inventoriable costs per above
|
N/A
|
8
|
N/A
|
|||||||||
Eliminations and other
|
–
|
(5
|
)
|
–
|
||||||||
South America mining
|
884
|
366
|
69
|
|||||||||
North America copper mines
|
703
|
461
|
64
|
|||||||||
Indonesia mining
|
1,610
|
415
|
78
|
|||||||||
Africa mining
|
57
|
92
|
14
|
|||||||||
Molybdenum
|
186
|
162
|
13
|
|||||||||
Rod & Refining
|
747
|
743
|
2
|
|||||||||
Atlantic Copper Smelting & Refining
|
415
|
419
|
9
|
|||||||||
Corporate, other & eliminations
|
(918
|
)
|
(849
|
)
|
7
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,684
|
$
|
1,809
|
$
|
256
|
Six Months Ended June 30, 2010
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Other a
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,898
|
$
|
1,898
|
$
|
116
|
$
|
2,014
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
746
|
704
|
49
|
753
|
||||||||
By-product credits
|
(108
|
)
|
–
|
–
|
–
|
|||||||
Treatment charges
|
80
|
80
|
–
|
80
|
||||||||
Net cash costs
|
718
|
784
|
49
|
833
|
||||||||
Depreciation, depletion and amortization
|
119
|
115
|
5
|
120
|
||||||||
Noncash and other costs, net
|
7
|
6
|
1
|
7
|
||||||||
Total costs
|
844
|
905
|
55
|
960
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
(17
|
)
|
(17
|
)
|
–
|
(17
|
)
|
|||||
Other non-inventoriable costs
|
(14
|
)
|
(12
|
)
|
(2
|
)
|
(14
|
)
|
||||
Gross profit
|
$
|
1,023
|
$
|
964
|
$
|
59
|
$
|
1,023
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
2,014
|
$
|
753
|
$
|
120
|
||||||
Net noncash and other costs per above
|
N/A
|
7
|
N/A
|
|||||||||
Treatment charges per above
|
(80
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
(17
|
)
|
N/A
|
N/A
|
||||||||
Other non-inventoriable costs per above
|
N/A
|
14
|
N/A
|
|||||||||
Eliminations and other
|
1
|
(9
|
)
|
–
|
||||||||
South America mining
|
1,918
|
765
|
120
|
|||||||||
North America copper mines
|
2,098
|
1,001
|
153
|
|||||||||
Indonesia mining
|
2,386
|
902
|
120
|
|||||||||
Africa mining
|
456
|
206
|
60
|
|||||||||
Molybdenum
|
600
|
375
|
25
|
|||||||||
Rod & Refining
|
2,202
|
2,188
|
4
|
|||||||||
Atlantic Copper Smelting & Refining
|
1,249
|
1,233
|
19
|
|||||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(2,700
|
)
|
19
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
8,227
|
$
|
3,970
|
$
|
520
|
Six Months Ended June 31, 2009
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Other a
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,497
|
$
|
1,497
|
$
|
84
|
$
|
1,581
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
716
|
669
|
53
|
722
|
||||||||
By-product credits
|
(78
|
)
|
–
|
–
|
–
|
|||||||
Treatment charges
|
102
|
102
|
–
|
102
|
||||||||
Net cash costs
|
740
|
771
|
53
|
824
|
||||||||
Depreciation, depletion and amortization
|
134
|
129
|
5
|
134
|
||||||||
Noncash and other costs, net
|
3
|
4
|
(1
|
)
|
3
|
|||||||
Total costs
|
877
|
904
|
57
|
961
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
106
|
106
|
–
|
106
|
||||||||
Other non-inventoriable costs
|
(17
|
)
|
(13
|
)
|
(4
|
)
|
(17
|
)
|
||||
Gross profit
|
$
|
709
|
$
|
686
|
$
|
23
|
$
|
709
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
1,581
|
$
|
722
|
$
|
134
|
||||||
Net noncash and other costs per above
|
N/A
|
3
|
N/A
|
|||||||||
Treatment charges per above
|
(102
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
106
|
N/A
|
N/A
|
|||||||||
Other non-inventoriable costs per above
|
N/A
|
17
|
N/A
|
|||||||||
Eliminations and other
|
1
|
(9
|
)
|
–
|
||||||||
South America mining
|
1,586
|
733
|
134
|
|||||||||
North America copper mines
|
1,321
|
1,014
|
139
|
|||||||||
Indonesia mining
|
2,732
|
765
|
143
|
|||||||||
Africa mining
|
57
|
108
|
17
|
|||||||||
Molybdenum
|
332
|
300
|
b
|
22
|
||||||||
Rod & Refining
|
1,366
|
1,357
|
4
|
|||||||||
Atlantic Copper Smelting & Refining
|
707
|
712
|
17
|
|||||||||
Corporate, other & eliminations
|
(1,815
|
)
|
(1,599
|
)
|
12
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
6,286
|
$
|
3,390
|
b
|
$
|
488
|
Three Months Ended June 30, 2010
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
765
|
$
|
765
|
$
|
352
|
$
|
14
|
$
|
1,131
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
422
|
285
|
132
|
5
|
422
|
||||||||||
Gold and silver credits
|
(366
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
67
|
45
|
21
|
1
|
67
|
||||||||||
Royalty on metals
|
28
|
19
|
9
|
–
|
28
|
||||||||||
Net cash costs
|
151
|
349
|
162
|
6
|
517
|
||||||||||
Depreciation and amortization
|
57
|
38
|
17
|
2
|
57
|
||||||||||
Noncash and other costs, net
|
5
|
4
|
1
|
–
|
5
|
||||||||||
Total costs
|
213
|
391
|
180
|
8
|
579
|
||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales
|
(109
|
)
|
(109
|
)
|
–
|
–
|
(109
|
)
|
|||||||
PT Smelting intercompany profit
|
17
|
11
|
5
|
1
|
17
|
||||||||||
Gross profit
|
$
|
460
|
$
|
276
|
$
|
177
|
$
|
7
|
$
|
460
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
1,131
|
$
|
422
|
$
|
57
|
|||||||||
Net noncash and other costs per above
|
N/A
|
5
|
N/A
|
||||||||||||
Treatment charges per above
|
(67
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty on metals per above
|
(28
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales per above
|
(109
|
)
|
N/A
|
N/A
|
|||||||||||
Indonesia mining
|
927
|
427
|
57
|
||||||||||||
North America copper mines
|
1,044
|
537
|
71
|
||||||||||||
South America mining
|
849
|
389
|
59
|
||||||||||||
Africa mining
|
207
|
96
|
30
|
||||||||||||
Molybdenum
|
325
|
190
|
12
|
||||||||||||
Rod & Refining
|
1,129
|
1,121
|
2
|
||||||||||||
Atlantic Copper Smelting & Refining
|
616
|
605
|
9
|
||||||||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(1,313
|
)
|
9
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,864
|
$
|
2,052
|
$
|
249
|
Three Months Ended June 30, 2009
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
966
|
$
|
966
|
$
|
753
|
$
|
23
|
$
|
1,742
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
401
|
223
|
172
|
6
|
401
|
||||||||||
Gold and silver credits
|
(776
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
94
|
53
|
40
|
1
|
94
|
||||||||||
Royalty on metals
|
49
|
28
|
21
|
–
|
49
|
||||||||||
Net cash (credits) costs
|
(232
|
)
|
304
|
233
|
7
|
544
|
|||||||||
Depreciation and amortization
|
78
|
44
|
33
|
1
|
78
|
||||||||||
Noncash and other costs, net
|
14
|
7
|
7
|
–
|
14
|
||||||||||
Total (credits) costs
|
(140
|
)
|
355
|
273
|
8
|
636
|
|||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales
|
11
|
11
|
–
|
–
|
11
|
||||||||||
PT Smelting intercompany loss
|
(30
|
)
|
(17
|
)
|
(12
|
)
|
(1
|
)
|
(30
|
)
|
|||||
Gross profit
|
$
|
1,087
|
$
|
605
|
$
|
468
|
$
|
14
|
$
|
1,087
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
1,742
|
$
|
401
|
$
|
78
|
|||||||||
Net noncash and other costs per above
|
N/A
|
14
|
N/A
|
||||||||||||
Treatment charges per above
|
(94
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty on metals per above
|
(49
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales per above
|
11
|
N/A
|
N/A
|
||||||||||||
Indonesia mining
|
1,610
|
415
|
78
|
||||||||||||
North America copper mines
|
703
|
461
|
64
|
||||||||||||
South America mining
|
884
|
366
|
69
|
||||||||||||
Africa mining
|
57
|
92
|
14
|
||||||||||||
Molybdenum
|
186
|
162
|
13
|
||||||||||||
Rod & Refining
|
747
|
743
|
2
|
||||||||||||
Atlantic Copper Smelting & Refining
|
415
|
419
|
9
|
||||||||||||
Corporate, other & eliminations
|
(918
|
)
|
(849
|
)
|
7
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,684
|
$
|
1,809
|
$
|
256
|
Six Months Ended June 30, 2010
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
1,694
|
$
|
1,694
|
$
|
861
|
$
|
35
|
$
|
2,590
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
878
|
574
|
292
|
12
|
878
|
||||||||||
Gold and silver credits
|
(896
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
134
|
88
|
44
|
2
|
134
|
||||||||||
Royalty on metals
|
64
|
42
|
21
|
1
|
64
|
||||||||||
Net cash costs
|
180
|
704
|
357
|
15
|
1,076
|
||||||||||
Depreciation and amortization
|
120
|
78
|
40
|
2
|
120
|
||||||||||
Noncash and other costs, net
|
24
|
16
|
8
|
–
|
24
|
||||||||||
Total costs
|
324
|
798
|
405
|
17
|
1,220
|
||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales
|
(6
|
)
|
(6
|
)
|
–
|
–
|
(6
|
)
|
|||||||
PT Smelting intercompany profit
|
29
|
19
|
9
|
1
|
29
|
||||||||||
Gross profit
|
$
|
1,393
|
$
|
909
|
$
|
465
|
$
|
19
|
$
|
1,393
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
2,590
|
$
|
878
|
$
|
120
|
|||||||||
Net noncash and other costs per above
|
N/A
|
24
|
N/A
|
||||||||||||
Treatment charges per above
|
(134
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty on metals per above
|
(64
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales per above
|
(6
|
)
|
N/A
|
N/A
|
|||||||||||
Indonesia mining
|
2,386
|
902
|
120
|
||||||||||||
North America copper mines
|
2,098
|
1,001
|
153
|
||||||||||||
South America mining
|
1,918
|
765
|
120
|
||||||||||||
Africa mining
|
456
|
206
|
60
|
||||||||||||
Molybdenum
|
600
|
375
|
25
|
||||||||||||
Rod & Refining
|
2,202
|
2,188
|
4
|
||||||||||||
Atlantic Copper Smelting & Refining
|
1,249
|
1,233
|
19
|
||||||||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(2,700
|
)
|
19
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
8,227
|
$
|
3,970
|
$
|
520
|
Six Months Ended June 30, 2009
|
|||||||||||||||
By-Product
|
Co-Product Method
|
||||||||||||||
(In millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
1,650
|
$
|
1,650
|
$
|
1,230
|
$
|
40
|
$
|
2,920
|
|||||
Site production and delivery, before net noncash
|
|||||||||||||||
and other costs shown below
|
740
|
418
|
312
|
10
|
740
|
||||||||||
Gold and silver credits
|
(1,270
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment charges
|
169
|
96
|
71
|
2
|
169
|
||||||||||
Royalty on metals
|
74
|
42
|
31
|
1
|
74
|
||||||||||
Net cash (credits) costs
|
(287
|
)
|
556
|
414
|
13
|
983
|
|||||||||
Depreciation and amortization
|
143
|
81
|
60
|
2
|
143
|
||||||||||
Noncash and other costs, net
|
25
|
14
|
11
|
–
|
25
|
||||||||||
Total (credits) costs
|
(119
|
)
|
651
|
485
|
15
|
1,151
|
|||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales
|
55
|
55
|
–
|
–
|
55
|
||||||||||
PT Smelting intercompany loss
|
(37
|
)
|
(21
|
)
|
(15
|
)
|
(1
|
)
|
(37
|
)
|
|||||
Gross profit
|
$
|
1,787
|
$
|
1,033
|
$
|
730
|
$
|
24
|
$
|
1,787
|
|||||
Reconciliation to Amounts Reported
|
|||||||||||||||
(In millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion and
|
||||||||||||||
Revenues
|
and Delivery
|
Amortization
|
|||||||||||||
Totals presented above
|
$
|
2,920
|
$
|
740
|
$
|
143
|
|||||||||
Net noncash and other costs per above
|
N/A
|
25
|
N/A
|
||||||||||||
Treatment charges per above
|
(169
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty on metals per above
|
(74
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue adjustments, primarily for pricing on prior
|
|||||||||||||||
period open sales per above
|
55
|
N/A
|
N/A
|
||||||||||||
Indonesia mining
|
2,732
|
765
|
143
|
||||||||||||
North America copper mines
|
1,321
|
1,014
|
139
|
||||||||||||
South America mining
|
1,586
|
733
|
134
|
||||||||||||
Africa mining
|
57
|
108
|
17
|
||||||||||||
Molybdenum
|
332
|
300
|
a
|
22
|
|||||||||||
Rod & Refining
|
1,366
|
1,357
|
4
|
||||||||||||
Atlantic Copper Smelting & Refining
|
707
|
712
|
17
|
||||||||||||
Corporate, other & eliminations
|
(1,815
|
)
|
(1,599
|
)
|
12
|
||||||||||
As reported in FCX’s consolidated financial statements
|
$
|
6,286
|
$
|
3,390
|
a
|
$
|
488
|
Three Months Ended June 30, 2010
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Cobalt
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
163
|
$
|
163
|
$
|
48
|
$
|
211
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
70
|
64
|
24
|
88
|
||||||||
Cobalt credits
|
(30
|
)a
|
–
|
–
|
–
|
|||||||
Royalty on metals
|
3
|
2
|
1
|
3
|
||||||||
Net cash costs
|
43
|
66
|
25
|
91
|
||||||||
Depreciation, depletion and amortization
|
30
|
26
|
4
|
30
|
||||||||
Noncash and other costs, net
|
3
|
2
|
1
|
3
|
||||||||
Total costs
|
76
|
94
|
30
|
124
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
–
|
–
|
–
|
–
|
||||||||
Other non-inventoriable costs
|
(6
|
)
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||
Gross profit
|
$
|
81
|
$
|
64
|
$
|
17
|
$
|
81
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
211
|
$
|
88
|
$
|
30
|
||||||
Net noncash and other costs per above
|
N/A
|
3
|
N/A
|
|||||||||
Royalty on metals per above
|
(3
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
–
|
N/A
|
N/A
|
|||||||||
Other non-inventoriable costs per above
|
N/A
|
6
|
N/A
|
|||||||||
Eliminations and other
|
(1
|
)
|
(1
|
)
|
–
|
|||||||
Africa mining
|
207
|
96
|
30
|
|||||||||
North America copper mines
|
1,044
|
537
|
71
|
|||||||||
South America mining
|
849
|
389
|
59
|
|||||||||
Indonesia mining
|
927
|
427
|
57
|
|||||||||
Molybdenum
|
325
|
190
|
12
|
|||||||||
Rod & Refining
|
1,129
|
1,121
|
2
|
|||||||||
Atlantic Copper Smelting & Refining
|
616
|
605
|
9
|
|||||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(1,313
|
)
|
9
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
3,864
|
$
|
2,052
|
$
|
249
|
Six Months Ended June 30, 2010
|
||||||||||||
By-Product
|
Co-Product Method
|
|||||||||||
(In millions)
|
Method
|
Copper
|
Cobalt
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
377
|
$
|
377
|
$
|
87
|
$
|
464
|
||||
Site production and delivery, before net noncash
|
||||||||||||
and other costs shown below
|
160
|
151
|
40
|
191
|
||||||||
Cobalt credits
|
(56
|
)a
|
–
|
–
|
–
|
|||||||
Royalty on metals
|
8
|
7
|
1
|
8
|
||||||||
Net cash costs
|
112
|
158
|
41
|
199
|
||||||||
Depreciation, depletion and amortization
|
60
|
49
|
11
|
60
|
||||||||
Noncash and other costs, net
|
4
|
3
|
1
|
4
|
||||||||
Total costs
|
176
|
210
|
53
|
263
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales
|
–
|
–
|
–
|
–
|
||||||||
Other non-inventoriable costs
|
(12
|
)
|
(10
|
)
|
(2
|
)
|
(12
|
)
|
||||
Gross profit
|
$
|
189
|
$
|
157
|
$
|
32
|
$
|
189
|
||||
Reconciliation to Amounts Reported
|
||||||||||||
(In millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion and
|
|||||||||||
Revenues
|
and Delivery
|
Amortization
|
||||||||||
Totals presented above
|
$
|
464
|
$
|
191
|
$
|
60
|
||||||
Net noncash and other costs per above
|
N/A
|
4
|
N/A
|
|||||||||
Royalty on metals per above
|
(8
|
)
|
N/A
|
N/A
|
||||||||
Revenue adjustments, primarily for pricing on prior
|
||||||||||||
period open sales per above
|
–
|
N/A
|
N/A
|
|||||||||
Other non-inventoriable costs per above
|
N/A
|
12
|
N/A
|
|||||||||
Eliminations and other
|
–
|
(1
|
)
|
–
|
||||||||
Africa mining
|
456
|
206
|
60
|
|||||||||
North America copper mines
|
2,098
|
1,001
|
153
|
|||||||||
South America mining
|
1,918
|
765
|
120
|
|||||||||
Indonesia mining
|
2,386
|
902
|
120
|
|||||||||
Molybdenum
|
600
|
375
|
25
|
|||||||||
Rod & Refining
|
2,202
|
2,188
|
4
|
|||||||||
Atlantic Copper Smelting & Refining
|
1,249
|
1,233
|
19
|
|||||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(2,700
|
)
|
19
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
8,227
|
$
|
3,970
|
$
|
520
|
Three Months Ended June 30,
|
|||||||||
(In millions)
|
2010
|
2009a
|
|||||||
Revenues, excluding adjustments
|
$
|
177
|
$
|
62
|
|||||
Site production and delivery, before net noncash
|
|||||||||
and other costs shown below
|
48
|
34
|
|||||||
Treatment charges and other
|
11
|
7
|
|||||||
Net cash costs
|
59
|
41
|
|||||||
Depreciation, depletion and amortization
|
8
|
6
|
|||||||
Noncash and other costs, net
|
–
|
–
|
|||||||
Total costs
|
67
|
47
|
|||||||
Gross profitb
|
$
|
110
|
$
|
15
|
|||||
Reconciliation to Amounts Reported
|
Production
|
Depreciation,
|
|||||||
(In millions)
|
and
|
Depletion and
|
|||||||
Revenues
|
Delivery
|
Amortization
|
|||||||
Three Months Ended June 30, 2010
|
|||||||||
Totals presented above
|
$
|
177
|
$
|
48
|
$
|
8
|
|||
Treatment charges and other per above
|
(11
|
)
|
N/A
|
N/A
|
|||||
Net noncash and other costs per above
|
N/A
|
–
|
N/A
|
||||||
Henderson mine
|
166
|
48
|
8
|
||||||
Other molybdenum operations and eliminationsc
|
159
|
142
|
4
|
||||||
Molybdenum
|
325
|
190
|
12
|
||||||
North America copper mines
|
1,044
|
537
|
71
|
||||||
South America mining
|
849
|
389
|
59
|
||||||
Indonesia mining
|
927
|
427
|
57
|
||||||
Africa mining
|
207
|
96
|
30
|
||||||
Rod & Refining
|
1,129
|
1,121
|
2
|
||||||
Atlantic Copper Smelting & Refining
|
616
|
605
|
9
|
||||||
Corporate, other & eliminations
|
(1,233
|
)
|
(1,313
|
)
|
9
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
3,864
|
$
|
2,052
|
$
|
249
|
|||
Three Months Ended June 30, 2009
|
|||||||||
Totals presented above
|
$
|
62
|
$
|
34
|
$
|
6
|
|||
Treatment charges and other per above
|
(7
|
)
|
N/A
|
N/A
|
|||||
Net noncash and other costs per above
|
N/A
|
–
|
N/A
|
||||||
Henderson mine
|
55
|
34
|
6
|
||||||
Other molybdenum operations and eliminationsc
|
131
|
128
|
7
|
||||||
Molybdenum
|
186
|
162
|
13
|
||||||
North America copper mines
|
703
|
461
|
64
|
||||||
South America mining
|
884
|
366
|
69
|
||||||
Indonesia mining
|
1,610
|
415
|
78
|
||||||
Africa mining
|
57
|
92
|
14
|
||||||
Rod & Refining
|
747
|
743
|
2
|
||||||
Atlantic Copper Smelting & Refining
|
415
|
419
|
9
|
||||||
Corporate, other & eliminations
|
(918
|
)
|
(849
|
)
|
7
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
3,684
|
$
|
1,809
|
$
|
256
|
a.
|
Revenues and costs were adjusted to include freight and downstream conversion costs in net cash costs; gross profit was not affected by these adjustments.
|
b.
|
Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum segment includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
|
c.
|
Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced as a by-product at our North and South America copper mines.
|
Six Months Ended June 30,
|
|||||||||
(In millions)
|
2010
|
2009a
|
|||||||
Revenues, excluding adjustments
|
$
|
316
|
$
|
139
|
|||||
Site production and delivery, before net noncash
|
|||||||||
and other costs shown below
|
90
|
71
|
|||||||
Treatment charges and other
|
21
|
14
|
|||||||
Net cash costs
|
111
|
85
|
|||||||
Depreciation, depletion and amortization
|
16
|
12
|
|||||||
Noncash and other costs, net
|
1
|
–
|
|||||||
Total costs
|
128
|
97
|
|||||||
Gross profitb
|
$
|
188
|
$
|
42
|
|||||
Reconciliation to Amounts Reported
|
Production
|
Depreciation,
|
|||||||
(In millions)
|
and
|
Depletion and
|
|||||||
Revenues
|
Delivery
|
Amortization
|
|||||||
Six Months Ended June 30, 2010
|
|||||||||
Totals presented above
|
$
|
316
|
$
|
90
|
$
|
16
|
|||
Treatment charges and other per above
|
(21
|
)
|
N/A
|
N/A
|
|||||
Net noncash and other costs per above
|
N/A
|
1
|
N/A
|
||||||
Henderson mine
|
295
|
91
|
16
|
||||||
Other molybdenum operations and eliminationsc
|
305
|
284
|
9
|
||||||
Molybdenum
|
600
|
375
|
25
|
||||||
North America copper mines
|
2,098
|
1,001
|
153
|
||||||
South America mining
|
1,918
|
765
|
120
|
||||||
Indonesia mining
|
2,386
|
902
|
120
|
||||||
Africa mining
|
456
|
206
|
60
|
||||||
Rod & Refining
|
2,202
|
2,188
|
4
|
||||||
Atlantic Copper Smelting & Refining
|
1,249
|
1,233
|
19
|
||||||
Corporate, other & eliminations
|
(2,682
|
)
|
(2,700
|
)
|
19
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
8,227
|
$
|
3,970
|
$
|
520
|
|||
Six Months Ended June 30, 2009
|
|||||||||
Totals presented above
|
$
|
139
|
$
|
71
|
$
|
12
|
|||
Treatment charges and other per above
|
(14
|
)
|
N/A
|
N/A
|
|||||
Net noncash and other costs per above
|
N/A
|
–
|
N/A
|
||||||
Henderson mine
|
125
|
71
|
12
|
||||||
Other molybdenum operations and eliminationsc
|
207
|
229
|
d
|
10
|
|||||
Molybdenum
|
332
|
300
|
22
|
||||||
North America copper mines
|
1,321
|
1,014
|
139
|
||||||
South America mining
|
1,586
|
733
|
134
|
||||||
Indonesia mining
|
2,732
|
765
|
143
|
||||||
Africa mining
|
57
|
108
|
17
|
||||||
Rod & Refining
|
1,366
|
1,357
|
4
|
||||||
Atlantic Copper Smelting & Refining
|
707
|
712
|
17
|
||||||
Corporate, other & eliminations
|
(1,815
|
)
|
(1,599
|
)
|
12
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
6,286
|
$
|
3,390
|
d
|
$
|
488
|
a.
|
Revenues and costs were adjusted to include freight and downstream conversion costs in net cash costs; gross profit was not affected by these adjustments.
|
b.
|
Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum segment includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
|
c.
|
Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced as a by-product at our North and South America copper mines.
|
(a)
|
Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report.
|
(b)
|
Changes in internal control. There has been no change in our internal control over financial reporting that occurred during the quarter ended June 30, 2010, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
(c)
|
The following table sets forth information with respect to shares of FCX common stock purchased by us during the three months ended June 30, 2010:
|
(c) Total Number of
|
(d) Maximum Number
|
||||||||
(a) Total Number
|
(b) Average
|
Shares Purchased as Part
|
of Shares That May
|
||||||
of Shares
|
Price Paid
|
of Publicly Announced
|
Yet Be Purchased Under
|
||||||
Period
|
Purchaseda
|
Per Share
|
Plans or Programsb
|
the Plans or Programsb
|
|||||
April 1-30, 2010
|
–
|
$
|
–
|
–
|
23,685,500
|
||||
May 1-31, 2010
|
–
|
$
|
–
|
–
|
23,685,500
|
||||
June 1-30, 2010
|
–
|
$
|
–
|
–
|
23,685,500
|
||||
Total
|
–
|
$
|
–
|
–
|
23,685,500
|
||||
a.
|
Consists of shares repurchased under FCX’s applicable stock incentive plans, which were repurchased to satisfy tax obligations on restricted stock awards and to cover the cost of option exercises.
|
b.
|
On July 21, 2008, our Board of Directors approved an increase in our open-market share purchase program for up to 30 million shares. This program does not have an expiration date.
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
Filed
|
|||||
Exhibit
|
with this
|
||||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
Composite Certificate of Incorporation of FCX.
|
X
|
||||
3.2
|
Amended and Restated By-Laws of FCX, as amended through February 2, 2010.
|
8-K
|
02/05/2010
|
||
10.1*
|
FCX Amended and Restated 2006 Stock Incentive Plan.
|
8-K
|
6/14/2010
|
||
10.2*
|
Form of Notice of Grant of Nonqualified Stock Options and Restricted Stock Units under the 2006 Stock Incentive Plan.
|
8-K
|
6/14/2010
|
||
FCX 2004 Director Compensation Plan, as amended and restated.
|
X
|
||||
Letter from Ernst & Young LLP regarding unaudited interim financial statements.
|
X
|
||||
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
||||
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
||||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
||||
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
||||
101.INS
|
XBRL Instance Document.
|
X
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/10 | 10-K, ARS | |||
12/15/10 | ||||
Filed on: | 8/6/10 | |||
8/1/10 | ||||
7/30/10 | ||||
7/15/10 | ||||
7/12/10 | CORRESP | |||
For Period end: | 6/30/10 | |||
6/24/10 | ||||
5/16/10 | ||||
5/1/10 | 4 | |||
4/1/10 | 4 | |||
3/31/10 | 10-Q | |||
2/26/10 | 10-K | |||
2/2/10 | 4, 8-K | |||
12/31/09 | 10-K | |||
12/15/09 | ||||
6/30/09 | 10-Q | |||
3/31/09 | 10-Q | |||
1/1/09 | 4 | |||
7/21/08 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/16/24 Freeport-McMoRan Inc. 10-K 12/31/23 134:44M 2/15/23 Freeport-McMoRan Inc. 10-K 12/31/22 139:81M 2/18/22 Freeport-McMoRan Inc. 10-K/A 12/31/21 17:18M 2/15/22 Freeport-McMoRan Inc. 10-K 12/31/21 143:54M 2/16/21 Freeport-McMoRan Inc. 10-K 12/31/20 139:34M |