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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-K
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(Mark One)
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[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2013
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OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Commission File Number: 001-11307-01
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Freeport-McMoRan Copper & Gold Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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74-2480931
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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333 North Central Avenue
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Phoenix, Arizona
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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(602) 366-8100
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(Registrant's telephone number, including area code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.10 per share
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New York Stock Exchange
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Portions of our proxy statement for our 2014 annual meeting of stockholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.
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TABLE OF CONTENTS
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Page
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a.
|
We have an 85 percent interest in Morenci and our direct ownership in PT Freeport Indonesia (PT-FI) totals 81.28 percent. Refer to Note
3
for further discussion of our ownership in subsidiaries and joint ventures.
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Copper
|
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Gold
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|
Molybdenum
|
|
Silver
|
|
Cobalt
|
North America
|
33%
|
|
1%
|
|
78%
|
|
28%
|
|
—
|
South America
|
33%
|
|
4%
|
|
22%
|
|
35%
|
|
—
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Indonesia
|
27%
|
|
95%
|
|
—
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|
37%
|
|
—
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Africa
|
7%
|
|
—
|
|
—
|
|
—
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100%
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
Copper
|
|
Gold
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|
Molybdenum
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|
North America
|
35%
|
|
1%
|
|
86%
|
|
South America
|
32%
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8%
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|
14%
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|
Indonesia
|
22%
|
|
91%
|
|
—
|
|
Africa
|
11%
|
|
—
|
|
—
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100%
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|
100%
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|
100%
|
|
Electrical applications
|
34
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%
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Construction
|
31
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%
|
Industrial machinery
|
13
|
%
|
Transportation
|
13
|
%
|
Consumer products
|
9
|
%
|
|
100
|
%
|
|
2013
|
|
2012
|
|
2011
|
|||
PT Smelting
|
41
|
%
|
|
52
|
%
|
|
44
|
%
|
Atlantic Copper
|
9
|
%
|
|
11
|
%
|
|
10
|
%
|
Third parties
|
50
|
%
|
|
37
|
%
|
|
46
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Location
|
Number of Unions
|
Number of
Union-
Represented Employees
|
Expiration Date
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|||
PT-FI – Indonesia
|
1
|
9,356
|
|
September 2015
|
|
|
TFM – DRC
|
6
|
3,327
|
|
N/A
|
a
|
|
Cerro Verde – Peru
|
2
|
1,846
|
|
August 2018
|
b
|
|
El Abra – Chile
|
2
|
1,007
|
|
May 2016
|
|
|
Candelaria – Chile
|
2
|
904
|
|
December 2016
|
|
|
Atlantic Copper – Spain
|
2
|
450
|
|
December 2015
|
|
|
Kokkola - Finland
|
3
|
410
|
|
November 2016
|
|
|
Chino – New Mexico
|
1
|
352
|
|
November 2014
|
|
|
Rotterdam – The Netherlands
|
2
|
62
|
|
March 2015
|
|
|
Aurex – Chile
|
1
|
38
|
|
December 2017
|
|
|
Bayway – New Jersey
|
1
|
37
|
|
April 2016
|
|
|
Stowmarket – United Kingdom
|
1
|
31
|
|
May 2014
|
|
a.
|
The Collective Labor Agreement (CLA) between TFM and its workers’ unions has no expiration date, but can be amended at any time in accordance with an established process. Additionally, in September 2012 TFM negotiated a 4-year salary scale with union-represented employees.
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b.
|
In November 2013, Cerro Verde signed a new four-year CLA, which is effective September 1, 2014, upon the expiration of the current agreement.
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|
2013
|
|
2012
|
|
2011
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|||
North America copper mines
|
13
|
%
|
|
16
|
%
|
|
2
|
%
|
South America mining
|
32
|
%
|
|
31
|
%
|
|
30
|
%
|
Indonesia mining
|
16
|
%
|
|
10
|
%
|
|
17
|
%
|
Third parties
|
39
|
%
|
|
43
|
%
|
|
51
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
comprehensive job training programs
|
•
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basic education programs
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•
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public health programs, including malaria control and HIV testing
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•
|
agricultural assistance programs
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•
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small and medium enterprise development programs
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•
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cultural promotion and preservation programs
|
•
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clean water and sanitation projects
|
•
|
community infrastructure development
|
•
|
charitable donations
|
|
Years Ended December 31,
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|||||||||||||
(FCX’s net interest in %)
|
2013
|
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2012
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2011
|
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2010
|
|
2009
|
|
|||||
COPPER
(millions of recoverable pounds)
|
|
|
|
|
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|||||
North America
|
|
|
|
|
|
|
|
|
|
|
|||||
Morenci (85%)
a
|
564
|
|
|
537
|
|
|
522
|
|
|
437
|
|
|
428
|
|
|
Bagdad (100%)
|
216
|
|
|
197
|
|
|
194
|
|
|
203
|
|
|
225
|
|
|
Safford (100%)
|
146
|
|
|
175
|
|
|
151
|
|
|
143
|
|
|
184
|
|
|
Sierrita (100%)
|
171
|
|
|
157
|
|
|
177
|
|
|
147
|
|
|
170
|
|
|
Miami (100%)
|
61
|
|
|
66
|
|
|
66
|
|
|
18
|
|
|
16
|
|
|
Chino (100%)
|
171
|
|
|
144
|
|
|
69
|
|
|
34
|
|
|
36
|
|
|
Tyrone (100%)
|
96
|
|
|
83
|
|
|
76
|
|
|
82
|
|
|
86
|
|
|
Other (100%)
|
6
|
|
|
4
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
Total North America
|
1,431
|
|
|
1,363
|
|
|
1,258
|
|
|
1,067
|
|
|
1,147
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
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|||||
Cerro Verde (53.56%)
|
558
|
|
|
595
|
|
|
647
|
|
|
668
|
|
|
662
|
|
|
El Abra (51%)
|
343
|
|
|
338
|
|
|
274
|
|
|
320
|
|
|
358
|
|
|
Candelaria/Ojos del Salado (80%)
|
422
|
|
|
324
|
|
|
385
|
|
|
366
|
|
|
370
|
|
|
Total South America
|
1,323
|
|
|
1,257
|
|
|
1,306
|
|
|
1,354
|
|
|
1,390
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg (90.64%)
b
|
915
|
|
|
695
|
|
|
846
|
|
|
1,222
|
|
|
1,412
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|||||
Tenke Fungurume (56%)
c
|
462
|
|
|
348
|
|
|
281
|
|
|
265
|
|
|
154
|
|
|
Consolidated
|
4,131
|
|
|
3,663
|
|
|
3,691
|
|
|
3,908
|
|
|
4,103
|
|
|
Less noncontrolling interests
|
801
|
|
|
723
|
|
|
710
|
|
|
766
|
|
|
754
|
|
|
Net
|
3,330
|
|
|
2,940
|
|
|
2,981
|
|
|
3,142
|
|
|
3,349
|
|
|
|
|
|
|
|
|
|
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|
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|
|||||
GOLD
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
|||||
North America (100%)
a
|
7
|
|
|
13
|
|
|
10
|
|
|
7
|
|
|
4
|
|
|
South America (80%)
|
101
|
|
|
83
|
|
|
101
|
|
|
93
|
|
|
92
|
|
|
Indonesia (90.64%)
b
|
1,142
|
|
|
862
|
|
|
1,272
|
|
|
1,786
|
|
|
2,568
|
|
|
Consolidated
|
1,250
|
|
|
958
|
|
|
1,383
|
|
|
1,886
|
|
|
2,664
|
|
|
Less noncontrolling interests
|
127
|
|
|
98
|
|
|
139
|
|
|
186
|
|
|
258
|
|
|
Net
|
1,123
|
|
|
860
|
|
|
1,244
|
|
|
1,700
|
|
|
2,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
MOLYBDENUM
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
|||||
Henderson (100%)
|
30
|
|
|
34
|
|
|
38
|
|
|
40
|
|
|
27
|
|
|
Climax (100%)
d
|
19
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
North America copper mines (100%)
a
|
32
|
|
|
36
|
|
|
35
|
|
|
25
|
|
|
25
|
|
|
Cerro Verde (53.56%)
|
13
|
|
|
8
|
|
|
10
|
|
|
7
|
|
|
2
|
|
|
Consolidated
|
94
|
|
|
85
|
|
|
83
|
|
|
72
|
|
|
54
|
|
|
Less noncontrolling interest
|
6
|
|
|
4
|
|
|
5
|
|
|
3
|
|
|
1
|
|
|
Net
|
88
|
|
|
81
|
|
|
78
|
|
|
69
|
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COBALT
(millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated
- Tenke Fungurume (56%)
c
|
28
|
|
|
26
|
|
|
25
|
|
|
20
|
|
|
—
|
|
|
Less noncontrolling interests
|
12
|
|
|
11
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
Net
|
16
|
|
|
15
|
|
|
14
|
|
|
12
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Amounts are net of Morenci’s 15 percent joint venture partner interest.
|
b.
|
Amounts are net of Grasberg’s joint venture partner’s interest, which varies in accordance with terms of the joint venture agreement.
|
c.
|
Initial copper production commenced at the Tenke mines in March 2009. Effective March 26, 2012, FCX's effective ownership interest in TFM was prospectively reduced from 57.75 percent to 56 percent.
|
d.
|
The Climax molybdenum mine began commercial operations in May 2012.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
(FCX’s net interest in %)
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
||||||||||
COPPER
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Morenci (85%)
a
|
561
|
|
|
532
|
|
|
521
|
|
|
434
|
|
|
459
|
|
|
|||||
Bagdad (100%)
|
212
|
|
|
196
|
|
|
201
|
|
|
206
|
|
|
225
|
|
|
|||||
Safford (100%)
|
151
|
|
|
175
|
|
|
147
|
|
|
155
|
|
|
176
|
|
|
|||||
Sierrita (100%)
|
170
|
|
|
162
|
|
|
175
|
|
|
152
|
|
|
172
|
|
|
|||||
Miami (100%)
|
60
|
|
|
68
|
|
|
59
|
|
|
17
|
|
|
16
|
|
|
|||||
Chino (100%)
|
168
|
|
|
132
|
|
|
62
|
|
|
35
|
|
|
52
|
|
|
|||||
Tyrone (100%)
|
94
|
|
|
82
|
|
|
79
|
|
|
83
|
|
|
85
|
|
|
|||||
Other (100%)
|
6
|
|
|
4
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
|||||
Total North America
|
1,422
|
|
|
1,351
|
|
|
1,247
|
|
|
1,085
|
|
|
1,187
|
|
|
|||||
South America
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cerro Verde (53.56%)
|
560
|
|
|
589
|
|
|
657
|
|
|
654
|
|
|
667
|
|
|
|||||
El Abra (51%)
|
341
|
|
|
338
|
|
|
276
|
|
|
315
|
|
|
361
|
|
|
|||||
Candelaria/Ojos del Salado (80%)
|
424
|
|
|
318
|
|
|
389
|
|
|
366
|
|
|
366
|
|
|
|||||
Total South America
|
1,325
|
|
|
1,245
|
|
|
1,322
|
|
|
1,335
|
|
|
1,394
|
|
|
|||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Grasberg (90.64%)
b
|
885
|
|
|
716
|
|
|
846
|
|
|
1,214
|
|
|
1,400
|
|
|
|||||
Africa
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tenke Fungurume (56%)
c
|
454
|
|
|
336
|
|
|
283
|
|
|
262
|
|
|
130
|
|
|
|||||
Consolidated sales from mines
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
4,111
|
|
|
|||||
Less noncontrolling interests
|
795
|
|
|
717
|
|
|
717
|
|
|
756
|
|
|
746
|
|
|
|||||
Net
|
3,291
|
|
|
2,931
|
|
|
2,981
|
|
|
3,140
|
|
|
3,365
|
|
|
|||||
Consolidated sales from mines
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
4,111
|
|
|
|||||
Purchased copper
|
223
|
|
|
125
|
|
|
223
|
|
|
182
|
|
|
166
|
|
|
|||||
Total copper sales, including purchases
|
4,309
|
|
|
3,773
|
|
|
3,921
|
|
|
4,078
|
|
|
4,277
|
|
|
|||||
Average realized price per pound
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
$
|
3.59
|
|
|
$
|
2.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GOLD
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America (100%)
a
|
6
|
|
|
13
|
|
|
7
|
|
|
5
|
|
|
6
|
|
|
|||||
South America (80%)
|
102
|
|
|
82
|
|
|
101
|
|
|
93
|
|
|
90
|
|
|
|||||
Indonesia (90.64%)
b
|
1,096
|
|
|
915
|
|
|
1,270
|
|
|
1,765
|
|
|
2,543
|
|
|
|||||
Consolidated sales from mines
|
1,204
|
|
|
1,010
|
|
|
1,378
|
|
|
1,863
|
|
|
2,639
|
|
|
|||||
Less noncontrolling interests
|
123
|
|
|
102
|
|
|
139
|
|
|
184
|
|
|
256
|
|
|
|||||
Net
|
1,081
|
|
|
908
|
|
|
1,239
|
|
|
1,679
|
|
|
2,383
|
|
|
|||||
Average realized price per ounce
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
$
|
993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MOLYBDENUM
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated sales from mines
|
93
|
|
|
83
|
|
|
79
|
|
|
67
|
|
|
58
|
|
|
|||||
Less noncontrolling interests
|
5
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
|||||
Net
|
88
|
|
|
79
|
|
|
75
|
|
|
64
|
|
|
57
|
|
|
|||||
Average realized price per pound
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
$
|
16.47
|
|
|
$
|
12.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
COBALT
(millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated
-
Tenke Fungurume (56%)
c
|
25
|
|
|
25
|
|
|
25
|
|
|
20
|
|
|
—
|
|
|
|||||
Less noncontrolling interests
|
11
|
|
|
11
|
|
|
10
|
|
|
8
|
|
|
—
|
|
|
|||||
Net
|
14
|
|
|
14
|
|
|
15
|
|
|
12
|
|
|
—
|
|
|
|||||
Average realized price per pound
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
$
|
10.95
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Amounts are net of Morenci’s joint venture partner’s 15 percent interest.
|
b.
|
Amounts are net of Grasberg’s joint venture partner’s interest, which varies in accordance with terms of the joint venture agreement.
|
c.
|
Initial copper production commenced at the Tenke mines in March 2009. Effective March 26, 2012, FCX's effective ownership interest in TFM was prospectively reduced from 57.75 percent to 56 percent.
|
|
Recoverable Proven and Probable Mineral Reserves
Estimated at December 31, 2013
|
|||||||||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|
Silver
b
(million ounces)
|
|
Cobalt
b
(billion pounds)
|
|||||
North America
|
36.2
|
|
|
0.4
|
|
|
2.55
|
|
|
87.5
|
|
|
—
|
|
South America
|
37.0
|
|
|
1.1
|
|
|
0.71
|
|
|
107.5
|
|
|
—
|
|
Indonesia
|
30.0
|
|
|
29.8
|
|
|
—
|
|
|
113.5
|
|
|
—
|
|
Africa
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.87
|
|
Consolidated basis
c
|
111.2
|
|
|
31.3
|
|
|
3.26
|
|
|
308.5
|
|
|
0.87
|
|
Net equity interest
d
|
88.6
|
|
|
28.3
|
|
|
2.93
|
|
|
252.9
|
|
|
0.48
|
|
a.
|
Recoverable copper reserves include
3.3 billion
pounds in leach stockpiles and
1.4 billion
pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
|
b.
|
Determined using long-term average prices of
$15
per ounce for silver and
$10
per pound for cobalt.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and at the Grasberg minerals district in Indonesia.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2013
|
|||||||||||||||||||||||||||||||||||
|
|
|
Proven Reserves
|
|
Probable Reserves
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
Average Ore Grade
|
|
|
|
Average Ore Grade
|
|
||||||||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
||||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
||||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Morenci
|
Mill
|
|
677
|
|
|
0.49
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
0.47
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
|
Crushed leach
|
|
407
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
0.52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
2,610
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
Mill
|
|
1,023
|
|
|
0.34
|
|
|
—
|
|
a
|
0.02
|
|
|
1.61
|
|
|
—
|
|
|
152
|
|
|
0.32
|
|
|
—
|
|
a
|
0.02
|
|
|
1.61
|
|
|
—
|
|
|
|
ROM leach
|
|
175
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford
|
Crushed leach
|
|
97
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
Mill
|
|
2,273
|
|
|
0.24
|
|
|
—
|
|
a
|
0.03
|
|
|
1.42
|
|
|
—
|
|
|
239
|
|
|
0.20
|
|
|
—
|
|
a
|
0.02
|
|
|
1.21
|
|
|
—
|
|
|
|
ROM leach
|
|
12
|
|
|
0.19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Miami
|
ROM leach
|
|
12
|
|
|
0.44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
0.38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Chino
|
Mill
|
|
83
|
|
|
0.62
|
|
|
0.04
|
|
|
0.01
|
|
|
0.53
|
|
|
—
|
|
|
62
|
|
|
0.59
|
|
|
0.04
|
|
|
0.01
|
|
|
0.50
|
|
|
—
|
|
|
|
ROM leach
|
|
173
|
|
|
0.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
0.27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
ROM leach
|
|
68
|
|
|
0.34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
Mill
|
|
103
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
Climax
|
Mill
|
|
166
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
Cobre
b
|
ROM leach
|
|
71
|
|
|
0.40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
7,950
|
|
|
|
|
|
|
|
|
|
|
|
|
788
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cerro Verde
|
Mill
|
|
1,123
|
|
|
0.39
|
|
|
—
|
|
|
0.02
|
|
|
1.60
|
|
|
—
|
|
|
2,757
|
|
|
0.37
|
|
|
—
|
|
|
0.02
|
|
|
1.52
|
|
|
—
|
|
|
|
Crushed leach
|
|
37
|
|
|
0.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
16
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
Crushed leach
|
|
365
|
|
|
0.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
0.47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
91
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Candelaria
|
Mill
|
|
269
|
|
|
0.58
|
|
|
0.13
|
|
|
—
|
|
|
2.12
|
|
|
—
|
|
|
12
|
|
|
0.66
|
|
|
0.17
|
|
|
—
|
|
|
2.65
|
|
|
—
|
|
|
Ojos del Salado
|
Mill
|
|
6
|
|
|
1.05
|
|
|
0.24
|
|
|
—
|
|
|
4.04
|
|
|
—
|
|
|
2
|
|
|
0.88
|
|
|
0.20
|
|
|
—
|
|
|
3.50
|
|
|
—
|
|
|
|
|
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Grasberg open pit
|
Mill
|
|
94
|
|
|
1.05
|
|
|
1.34
|
|
|
—
|
|
|
2.71
|
|
|
—
|
|
|
112
|
|
|
0.87
|
|
|
0.86
|
|
|
—
|
|
|
2.09
|
|
|
—
|
|
|
Deep Ore Zone
|
Mill
|
|
48
|
|
|
0.57
|
|
|
0.73
|
|
|
—
|
|
|
2.33
|
|
|
—
|
|
|
104
|
|
|
0.55
|
|
|
0.73
|
|
|
—
|
|
|
2.21
|
|
|
—
|
|
|
Big Gossan
|
Mill
|
|
15
|
|
|
2.38
|
|
|
1.05
|
|
|
—
|
|
|
15.04
|
|
|
—
|
|
|
39
|
|
|
2.16
|
|
|
0.95
|
|
|
—
|
|
|
12.89
|
|
|
—
|
|
|
Grasberg Block Cave
b
|
Mill
|
|
387
|
|
|
1.20
|
|
|
0.99
|
|
|
—
|
|
|
3.95
|
|
|
—
|
|
|
613
|
|
|
0.90
|
|
|
0.64
|
|
|
—
|
|
|
3.26
|
|
|
—
|
|
|
Kucing Liar
b
|
Mill
|
|
154
|
|
|
1.31
|
|
|
1.11
|
|
|
—
|
|
|
7.48
|
|
|
—
|
|
|
266
|
|
|
1.21
|
|
|
1.04
|
|
|
—
|
|
|
6.13
|
|
|
—
|
|
|
Deep Mill Level Zone
b
|
Mill
|
|
72
|
|
|
0.91
|
|
|
0.75
|
|
|
—
|
|
|
4.45
|
|
|
—
|
|
|
454
|
|
|
0.82
|
|
|
0.69
|
|
|
—
|
|
|
4.10
|
|
|
—
|
|
|
|
|
|
770
|
|
|
|
|
|
|
|
|
|
|
|
|
1,588
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tenke Fungurume
|
Agitation leach
|
|
52
|
|
|
3.66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.39
|
|
|
61
|
|
|
3.07
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.33
|
|
|
Total FCX - 100% Basis
|
|
|
10,679
|
|
|
|
|
|
|
|
|
|
|
|
|
5,442
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Grade not shown because of rounding.
|
b.
|
Undeveloped reserves that would require additional capital investment, which could be significant, to bring into production.
|
•
|
g/t – grams per metric ton
|
•
|
Moly – Molybdenum
|
•
|
ROM – Run of Mine
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2013
|
|||||||||||||||||||||||||||||||
|
|
|
(continued)
|
|||||||||||||||||||||||||||||||
|
|
|
Proven and
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
Probable
|
|
Average Ore Grade
|
|
Recoveries
a
|
|||||||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Morenci
|
Mill
|
|
685
|
|
|
0.49
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
79.5
|
|
|
—
|
|
|
50.5
|
|
|
—
|
|
|
—
|
|
|
Crushed leach
|
|
413
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
2,681
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Bagdad
|
Mill
|
|
1,175
|
|
|
0.34
|
|
|
—
|
|
b
|
0.02
|
|
|
1.61
|
|
|
—
|
|
|
85.8
|
|
|
59.1
|
|
|
70.8
|
|
|
49.3
|
|
|
—
|
|
|
ROM leach
|
|
274
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Safford
|
Crushed leach
|
|
149
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sierrita
|
Mill
|
|
2,512
|
|
|
0.23
|
|
|
—
|
|
b
|
0.03
|
|
|
1.40
|
|
|
—
|
|
|
83.9
|
|
|
59.9
|
|
|
76.6
|
|
|
49.3
|
|
|
—
|
|
|
ROM leach
|
|
22
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Miami
|
ROM leach
|
|
15
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Chino
|
Mill
|
|
145
|
|
|
0.61
|
|
|
0.04
|
|
|
0.01
|
|
|
0.52
|
|
|
—
|
|
|
79.5
|
|
|
77.9
|
|
|
44.0
|
|
|
78.5
|
|
|
—
|
|
|
ROM leach
|
|
231
|
|
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tyrone
|
ROM leach
|
|
69
|
|
|
0.34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Henderson
|
Mill
|
|
105
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84.2
|
|
|
—
|
|
|
—
|
|
Climax
|
Mill
|
|
189
|
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89.9
|
|
|
—
|
|
|
—
|
|
Cobre
c
|
ROM leach
|
|
73
|
|
|
0.39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
8,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cerro Verde
|
Mill
|
|
3,880
|
|
|
0.37
|
|
|
—
|
|
|
0.02
|
|
|
1.55
|
|
|
—
|
|
|
86.3
|
|
|
—
|
|
|
53.1
|
|
|
44.7
|
|
|
—
|
|
|
Crushed leach
|
|
94
|
|
|
0.44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
73
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
El Abra
|
Crushed leach
|
|
456
|
|
|
0.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
120
|
|
|
0.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Candelaria
|
Mill
|
|
281
|
|
|
0.58
|
|
|
0.14
|
|
|
—
|
|
|
2.14
|
|
|
—
|
|
|
89.7
|
|
|
71.9
|
|
|
—
|
|
|
76.3
|
|
|
—
|
|
Ojos del Salado
|
Mill
|
|
8
|
|
|
1.00
|
|
|
0.23
|
|
|
—
|
|
|
3.87
|
|
|
—
|
|
|
90.2
|
|
|
71.9
|
|
|
—
|
|
|
76.3
|
|
|
—
|
|
|
|
|
4,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Grasberg open pit
|
Mill
|
|
206
|
|
|
0.95
|
|
|
1.08
|
|
|
—
|
|
|
2.37
|
|
|
—
|
|
|
84.1
|
|
|
81.1
|
|
|
—
|
|
|
43.7
|
|
|
—
|
|
Deep Ore Zone
|
Mill
|
|
152
|
|
|
0.56
|
|
|
0.73
|
|
|
—
|
|
|
2.25
|
|
|
—
|
|
|
86.7
|
|
|
77.5
|
|
|
—
|
|
|
66.2
|
|
|
—
|
|
Big Gossan
|
Mill
|
|
54
|
|
|
2.22
|
|
|
0.97
|
|
|
—
|
|
|
13.49
|
|
|
—
|
|
|
91.6
|
|
|
67.1
|
|
|
—
|
|
|
63.8
|
|
|
—
|
|
Grasberg Block Cave
c
|
Mill
|
|
1,000
|
|
|
1.02
|
|
|
0.78
|
|
|
—
|
|
|
3.53
|
|
|
—
|
|
|
84.2
|
|
|
64.8
|
|
|
—
|
|
|
57.1
|
|
|
—
|
|
Kucing Liar
c
|
Mill
|
|
420
|
|
|
1.24
|
|
|
1.07
|
|
|
—
|
|
|
6.63
|
|
|
—
|
|
|
84.9
|
|
|
45.2
|
|
|
—
|
|
|
38.7
|
|
|
—
|
|
Deep Mill Level Zone
c
|
Mill
|
|
526
|
|
|
0.83
|
|
|
0.70
|
|
|
—
|
|
|
4.15
|
|
|
—
|
|
|
86.7
|
|
|
78.8
|
|
|
—
|
|
|
64.6
|
|
|
—
|
|
|
|
|
2,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tenke Fungurume
|
Agitation leach
|
|
113
|
|
|
3.34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.36
|
|
|
86.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75.6
|
|
Total FCX - 100% Basis
|
|
|
16,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
a.
|
Recoveries are net of estimated mill and smelter losses.
|
b.
|
Grade not shown because of rounding.
|
c.
|
Undeveloped reserves that would require additional capital investment, which could be significant, to bring into production.
|
Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||||
Estimated at December 31, 2013
|
||||||||||||||||||
(continued)
|
||||||||||||||||||
|
|
|
|
|
Recoverable Reserves
|
|||||||||||||
|
|
|
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|||||
|
FCX’s
|
|
Processing
|
|
billion
|
|
million
|
|
billion
|
|
million
|
|
billion
|
|||||
|
Interest
|
|
Method
|
|
lbs.
|
|
ozs.
|
|
lbs.
|
|
ozs.
|
|
lbs.
|
|||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Morenci
|
85%
|
|
Mill
|
|
5.9
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
|
|
Crushed leach
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Bagdad
|
100%
|
|
Mill
|
|
7.6
|
|
|
0.1
|
|
|
0.39
|
|
|
30.0
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Safford
|
100%
|
|
Crushed leach
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sierrita
|
100%
|
|
Mill
|
|
10.8
|
|
|
0.1
|
|
|
1.08
|
|
|
55.6
|
|
|
—
|
|
|
|
|
ROM leach
|
|
—
|
|
a
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Miami
|
100%
|
|
ROM leach
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Chino
|
100%
|
|
Mill
|
|
1.5
|
|
|
0.2
|
|
|
0.01
|
|
|
1.9
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tyrone
|
100%
|
|
ROM leach
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Henderson
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.33
|
|
|
—
|
|
|
—
|
|
Climax
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.60
|
|
|
—
|
|
|
—
|
|
Cobre
|
100%
|
|
ROM leach
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
36.4
|
|
|
0.4
|
|
|
2.56
|
|
|
87.5
|
|
|
—
|
|
Recoverable metal in stockpiles
b
|
|
|
|
1.9
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
100% operations
|
|
|
|
38.3
|
|
|
0.4
|
|
|
2.57
|
|
|
87.5
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
36.2
|
|
|
0.4
|
|
|
2.55
|
|
|
87.5
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
36.2
|
|
|
0.4
|
|
|
2.55
|
|
|
87.5
|
|
|
—
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cerro Verde
|
53.56%
|
|
Mill
|
|
27.5
|
|
|
—
|
|
|
0.69
|
|
|
86.2
|
|
|
—
|
|
|
|
|
Crushed leach
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
El Abra
|
51%
|
|
Crushed leach
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Candelaria
|
80%
|
|
Mill
|
|
3.3
|
|
|
0.9
|
|
|
—
|
|
|
14.8
|
|
|
—
|
|
Ojos del Salado
|
80%
|
|
Mill
|
|
0.1
|
|
|
—
|
|
a
|
—
|
|
|
0.7
|
|
|
—
|
|
|
|
|
|
|
34.9
|
|
|
0.9
|
|
|
0.69
|
|
|
101.7
|
|
|
—
|
|
Recoverable metal in stockpiles
b
|
|
|
|
2.1
|
|
|
0.2
|
|
|
0.02
|
|
|
5.8
|
|
|
—
|
|
|
100% operations
|
|
|
|
37.0
|
|
|
1.1
|
|
|
0.71
|
|
|
107.5
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
37.0
|
|
|
1.1
|
|
|
0.71
|
|
|
107.5
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
20.7
|
|
|
0.9
|
|
|
0.38
|
|
|
62.5
|
|
|
—
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg open pit
|
e
|
|
Mill
|
|
3.6
|
|
|
5.8
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
Deep Ore Zone
|
e
|
|
Mill
|
|
1.6
|
|
|
2.8
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
Big Gossan
|
e
|
|
Mill
|
|
2.5
|
|
|
1.1
|
|
|
—
|
|
|
15.0
|
|
|
—
|
|
Grasberg Block Cave
|
e
|
|
Mill
|
|
18.9
|
|
|
16.1
|
|
|
—
|
|
|
64.8
|
|
|
—
|
|
Kucing Liar
|
e
|
|
Mill
|
|
9.8
|
|
|
6.5
|
|
|
—
|
|
|
34.6
|
|
|
—
|
|
Deep Mill Level Zone
|
e
|
|
Mill
|
|
8.3
|
|
|
9.3
|
|
|
—
|
|
|
45.3
|
|
|
—
|
|
100% operations
|
|
|
|
44.7
|
|
|
41.6
|
|
|
—
|
|
|
173.9
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
30.0
|
|
|
29.8
|
|
|
—
|
|
|
113.5
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
27.2
|
|
|
27.0
|
|
|
—
|
|
|
102.9
|
|
|
—
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tenke Fungurume
|
56%
|
|
Agitation leach
|
|
7.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.68
|
|
Recoverable metal in stockpiles
b
|
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.19
|
|
|
100% operations
|
|
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.87
|
|
|
Consolidated
c
|
|
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.87
|
|
|
Net equity interest
d
|
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total FCX – 100% basis
|
|
|
|
128.0
|
|
|
43.1
|
|
|
3.28
|
|
|
368.9
|
|
|
0.87
|
|
|
Total FCX – Consolidated basis
c
|
|
|
|
111.2
|
|
|
31.3
|
|
|
3.26
|
|
|
308.5
|
|
|
0.87
|
|
|
Total FCX – Net equity interest
d
|
|
|
|
88.6
|
|
|
28.3
|
|
|
2.93
|
|
|
252.9
|
|
|
0.48
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
Refer to "Mill and Leach Stockpiles" for additional information.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and at the Grasberg minerals district in Indonesia.
|
d.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
e.
|
Our joint venture agreement with Rio Tinto provides that PT-FI will receive cash flow from specified annual amounts of copper, gold and silver through 2021, calculated by reference to its proven and probable reserves as of December 31, 1994, and 60 percent of all remaining cash flow.
|
|
Copper Equivalent Cutoff Grade (Percent)
|
|
Molybdenum
Cutoff Grade
(Percent)
|
||||
|
Mill
|
|
Crushed or
Agitation Leach
|
|
ROM
Leach
|
|
Mill
|
North America
|
|
|
|
|
|
|
|
Morenci
|
0.25
|
|
0.20
|
|
0.03
|
|
—
|
Bagdad
|
0.20
|
|
—
|
|
0.09
|
|
—
|
Safford
|
—
|
|
0.13
|
|
—
|
|
—
|
Sierrita
|
0.18
|
|
—
|
|
0.07
|
|
—
|
Miami
|
—
|
|
—
|
|
0.05
|
|
—
|
Chino
|
0.20
|
|
—
|
|
0.08
|
|
—
|
Tyrone
|
—
|
|
—
|
|
0.05
|
|
—
|
Henderson
|
—
|
|
—
|
|
—
|
|
0.12
|
Climax
|
—
|
|
—
|
|
—
|
|
0.06
|
Cobre
|
—
|
|
—
|
|
0.17
|
|
—
|
South America
|
|
|
|
|
|
|
|
Cerro Verde
|
0.17
|
|
0.19
|
|
0.14
|
|
—
|
El Abra
|
—
|
|
0.11
|
|
0.07
|
|
—
|
Candelaria
|
0.24
|
|
—
|
|
—
|
|
—
|
Ojos del Salado
|
0.81
|
|
—
|
|
—
|
|
—
|
Indonesia
|
|
|
|
|
|
|
|
Grasberg open pit
|
0.25
|
|
—
|
|
—
|
|
—
|
Deep Ore Zone
|
0.77
|
|
—
|
|
—
|
|
—
|
Big Gossan
|
1.88
|
|
—
|
|
—
|
|
—
|
Grasberg Block Cave
|
0.71
|
|
—
|
|
—
|
|
—
|
Kucing Liar
|
0.83
|
|
—
|
|
—
|
|
—
|
Deep Mill Level Zone
|
0.72
|
|
—
|
|
—
|
|
—
|
Africa
|
|
|
|
|
|
|
|
Tenke Fungurume
|
—
|
|
1.33
|
|
—
|
|
—
|
|
|
|
|
|
|
|
Recoverable
|
|||||
|
Million
|
|
Average
|
|
Recovery
|
|
Copper
|
|||||
|
Metric Tons
|
|
Ore Grade (%)
|
|
Rate (%)
|
|
(billion pounds)
|
|||||
Mill stockpiles
|
|
|
|
|
|
|
|
|
||||
Cerro Verde
|
112
|
|
|
0.39
|
|
|
82.1
|
|
|
0.8
|
|
|
Candelaria
|
92
|
|
|
0.36
|
|
|
83.5
|
|
|
0.6
|
|
|
|
204
|
|
|
|
|
|
|
1.4
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Leach stockpiles
|
|
|
|
|
|
|
|
|
||||
Morenci
|
5,465
|
|
|
0.24
|
|
|
2.0
|
|
|
0.6
|
|
|
Bagdad
|
488
|
|
|
0.26
|
|
|
2.2
|
|
|
0.1
|
|
|
Safford
|
161
|
|
|
0.43
|
|
|
15.9
|
|
|
0.2
|
|
|
Sierrita
|
650
|
|
|
0.15
|
|
|
11.8
|
|
|
0.2
|
|
|
Miami
|
483
|
|
|
0.39
|
|
|
2.7
|
|
|
0.1
|
|
|
Chino
|
1,639
|
|
|
0.26
|
|
|
4.9
|
|
|
0.5
|
|
|
Tyrone
|
1,078
|
|
|
0.28
|
|
|
2.6
|
|
|
0.2
|
|
|
Cerro Verde
|
452
|
|
|
0.52
|
|
|
3.2
|
|
|
0.2
|
|
|
El Abra
|
529
|
|
|
0.42
|
|
|
10.3
|
|
|
0.5
|
|
|
Tenke Fungurume
|
31
|
|
|
1.25
|
|
|
91.9
|
|
|
0.8
|
|
|
|
10,976
|
|
|
|
|
|
|
3.4
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total FCX - 100% basis
|
|
|
|
|
|
|
4.8
|
|
|
|||
Total FCX - Consolidated basis
a
|
|
|
|
|
|
|
4.7
|
|
|
|||
Total FCX - Net equity interest
b
|
|
|
|
|
|
|
3.5
|
|
|
|||
|
|
|
|
|
|
|
|
|
a.
|
Consolidated represents estimated metal quantities after reduction for our joint venture partner’s interest in the Morenci mine in North America.
|
b.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
Mineralized Material
|
|||||||||||||||||||||||||||
Estimated at December 31, 2013
|
|||||||||||||||||||||||||||
|
|
|
|
Milling Material
|
|
Leaching Material
|
|
Total Mineralized Material
|
|
||||||||||||||||||
|
|
|
|
Million
|
|
|
|
|
|
|
|
|
|
Million
|
|
|
|
Million
|
|
||||||||
|
|
FCX’s
|
|
metric
|
|
Copper
|
|
Gold
|
|
Moly
|
|
SIlver
|
|
metric
|
|
Copper
|
|
metric
|
|
||||||||
|
|
Interest
|
|
tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
tons
|
|
%
|
|
tons
|
|
||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Morenci
|
|
85%
|
|
1,328
|
|
|
0.26
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
1,350
|
|
|
0.20
|
|
|
2,678
|
|
|
Bagdad
|
|
100%
|
|
437
|
|
|
0.28
|
|
|
—
|
|
a
|
0.02
|
|
|
1.3
|
|
|
7
|
|
|
0.12
|
|
|
444
|
|
|
Safford
|
|
100%
|
|
431
|
|
|
0.53
|
|
|
0.10
|
|
|
—
|
|
a
|
2.0
|
|
|
161
|
|
|
0.24
|
|
|
592
|
|
|
Sierrita
|
|
100%
|
|
1,509
|
|
|
0.19
|
|
|
—
|
|
a
|
0.02
|
|
|
1.1
|
|
|
16
|
|
|
0.16
|
|
|
1,525
|
|
|
Chino
|
|
100%
|
|
110
|
|
|
0.42
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
28
|
|
|
0.27
|
|
|
138
|
|
|
Tyrone
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
0.34
|
|
|
52
|
|
|
Henderson
|
|
100%
|
|
158
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|
Climax
|
|
100%
|
|
421
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
421
|
|
|
Cobre
|
|
100%
|
|
39
|
|
|
0.54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
0.26
|
|
|
48
|
|
|
Ajo
|
|
100%
|
|
817
|
|
|
0.33
|
|
|
0.07
|
|
|
0.01
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
817
|
|
|
Cochise/Bisbee
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258
|
|
|
0.45
|
|
|
258
|
|
|
Lone Star
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
656
|
|
|
0.44
|
|
|
656
|
|
|
Sanchez
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|
0.29
|
|
|
160
|
|
|
Tohono
|
|
100%
|
|
203
|
|
|
0.70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248
|
|
|
0.65
|
|
|
451
|
|
|
Twin Buttes
|
|
100%
|
|
445
|
|
|
0.40
|
|
|
—
|
|
|
0.03
|
|
|
2.3
|
|
|
53
|
|
|
0.21
|
|
|
498
|
|
|
Christmas
|
|
100%
|
|
224
|
|
|
0.38
|
|
|
0.05
|
|
|
—
|
|
a
|
1.0
|
|
|
—
|
|
|
—
|
|
|
224
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cerro Verde
|
|
53.56%
|
|
319
|
|
|
0.35
|
|
|
—
|
|
|
0.01
|
|
|
1.5
|
|
|
7
|
|
|
0.39
|
|
|
326
|
|
|
El Abra
|
|
51%
|
|
1,842
|
|
|
0.45
|
|
|
0.02
|
|
|
0.01
|
|
|
1.4
|
|
|
192
|
|
|
0.28
|
|
|
2,034
|
|
|
Candelaria
|
|
80%
|
|
46
|
|
|
0.60
|
|
|
0.14
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Grasberg minerals district
|
|
54.38%
b
|
|
2,666
|
|
|
0.61
|
|
|
0.54
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
2,666
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tenke Fungurume
c
|
|
56%
|
|
65
|
|
|
3.90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
2.81
|
|
|
93
|
|
|
Kisanfu
c
|
|
95%
|
|
49
|
|
|
2.48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
3.16
|
|
|
96
|
|
|
Total FCX - 100% basis
|
|
|
|
11,109
|
|
|
|
|
|
|
|
|
|
|
3,272
|
|
|
|
|
14,381
|
|
|
|||||
Total FCX - Consolidated basis
d
|
|
|
|
9,844
|
|
|
|
|
|
|
|
|
|
|
3,069
|
|
|
|
|
12,913
|
|
|
|||||
Total FCX - Net equity interest
e
|
|
|
|
8,603
|
|
|
|
|
|
|
|
|
|
|
2,957
|
|
|
|
|
11,560
|
|
|
|||||
|
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
FCX's interest in the Grasberg minerals district reflects our 60 percent joint venture ownership further reduced by noncontrolling interest ownership.
|
c.
|
Stated tonnage also includes cobalt at Tenke Fungurume (0.31 percent) and Kisanfu (1.15 percent).
|
d.
|
Consolidated basis represents estimated mineralized materials after reduction for our joint venture partners' interest in the Morenci mine and the Grasberg minerals district.
|
e.
|
Net equity interest represents estimated consolidated mineralized material further reduced for noncontrolling interest ownership.
|
|
|
|
Developed
|
|
Undeveloped
|
|
||||||||
|
|
|
Gross Acres
|
|
Net Acres
|
|
Gross Acres
|
|
Net Acres
|
|
||||
Louisiana:
|
|
|
|
|
|
|
|
|
||||||
|
Onshore
|
377,767
|
|
|
71,152
|
|
|
84,611
|
|
|
41,557
|
|
|
|
|
Offshore
|
469,412
|
|
|
267,374
|
|
|
967,868
|
|
|
536,721
|
|
|
|
Texas
|
70,812
|
|
|
40,953
|
|
|
31,361
|
|
|
16,735
|
|
|
||
California:
|
|
|
|
|
|
|
|
|
||||||
|
Onshore
|
61,287
|
|
|
60,721
|
|
|
63,408
|
|
|
39,980
|
|
|
|
|
Offshore
|
43,335
|
|
|
39,062
|
|
|
—
|
|
|
—
|
|
|
|
Wyoming
|
83,252
|
|
|
16,286
|
|
|
138,524
|
|
|
114,737
|
|
|
||
Nevada
|
—
|
|
|
—
|
|
|
246,073
|
|
|
246,073
|
|
|
||
Florida
|
160
|
|
|
24
|
|
|
114,600
|
|
|
14,982
|
|
|
||
Utah
|
—
|
|
|
—
|
|
|
86,862
|
|
|
71,880
|
|
|
||
Other
|
3,124
|
|
|
529
|
|
|
150,469
|
|
|
107,715
|
|
|
||
Total U.S.
|
1,109,149
|
|
|
496,101
|
|
|
1,883,776
|
|
|
1,190,380
|
|
|
||
Morocco
|
—
|
|
|
—
|
|
|
2,154,014
|
|
|
1,120,087
|
|
|
||
|
1,109,149
|
|
|
496,101
|
|
|
4,037,790
|
|
|
2,310,467
|
|
|
|
|
|
|
|
|
|
|
|
Capacity per Day
|
||
Platform
|
|
Field Location
|
|
Type of Platform
|
|
Production Commenced
|
|
Water Depth (feet)
|
Oil (Bbls)
|
|
Gas (Mcf)
|
Holstein
a
|
|
Green Canyon Blocks 644, 645 and 688
|
|
Truss Spar
|
|
2004
|
|
4,300
|
113,500
|
|
142,300
|
Horn Mountain
a
|
|
Mississippi Canyon Blocks 126 and 127
|
|
Truss Spar
|
|
2002
|
|
5,400
|
75,000
|
|
72,000
|
Marlin Hub
a
|
|
Several
b
|
|
Tension Leg
|
|
2000
|
|
3,200
|
60,000
|
|
235,000
|
Ram Powell
|
|
Viosca Knoll Blocks 911 to 913 and 955 to 957
|
|
Tension Leg
|
|
1997
|
|
3,200
|
70,000
|
|
310,000
|
Hoover
|
|
Several
c
|
|
Deep Draft Caisson Vessel
|
|
2000
|
|
4,800
|
100,000
|
|
325,000
|
|
Seven-Month Period
|
||||||||||||||
|
June 1, 2013, to December 31, 2013
|
||||||||||||||
|
GOM
a
|
|
Eagle Ford
|
|
California
|
|
Haynesville/Madden/Other
|
|
Total
b
|
||||||
Oil Sales
(million barrels)
|
11.3
|
|
|
7.2
|
|
|
8.0
|
|
|
0.1
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Natural Gas Sales
(billion cubic feet)
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
17.3
|
|
|
8.8
|
|
|
2.1
|
|
|
26.8
|
|
|
55.0
|
|
|
Used as fuel in our operations
|
—
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
Sales
|
17.3
|
|
|
8.8
|
|
|
1.3
|
|
|
26.8
|
|
|
54.2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NGL Sales
(million barrels)
|
1.1
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MMBOE
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
15.3
|
|
|
9.9
|
|
|
8.4
|
|
|
4.6
|
|
|
38.2
|
|
|
Sales
|
15.3
|
|
|
9.9
|
|
|
8.3
|
|
|
4.6
|
|
|
38.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Realized Price, excluding derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Oil (per barrel)
|
|
|
|
|
|
|
|
|
$
|
99.67
|
|
||||
Natural gas (per MMBtu)
|
|
|
|
|
|
|
|
|
$
|
3.73
|
|
||||
NGLs (per barrel)
|
|
|
|
|
|
|
|
|
$
|
38.20
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Average Cost per BOE
|
|
|
|
|
|
|
|
|
|
||||||
Production costs
c
|
|
|
|
|
|
|
|
|
$
|
15.18
|
|
||||
Production and ad valorem taxes
|
|
|
|
|
|
|
|
|
1.96
|
|
|||||
Cash production costs
d
|
|
|
|
|
|
|
|
|
$
|
17.14
|
|
a.
|
Includes properties on the Shelf and in the Deepwater GOM.
|
b.
|
At December 31, 2013, no individual fields represented 15 percent or more of our proved oil and gas reserves.
|
c.
|
Reflects costs incurred to operate and maintain wells and related equipment and facilities.
|
d.
|
Refer to MD&A for further discussion of cash production costs per BOE and for a reconciliation to production and delivery costs reported in our consolidated financial statements.
|
|
|
Proved Oil and Natural Gas Reserves
|
|
|||||||
|
|
Estimated at December 31, 2013
|
|
|||||||
|
|
Oil
a
|
|
Natural Gas
|
|
Total
|
|
|||
|
|
(MMBbls)
|
|
(Bcf)
|
|
(MMBOE)
|
|
|||
Proved Developed:
|
|
|
|
|
|
|
|
|||
Gulf of Mexico
|
|
73
|
|
|
125
|
|
|
94
|
|
|
Eagle Ford
|
|
36
|
|
|
41
|
|
|
43
|
|
|
California
|
|
126
|
|
|
29
|
|
|
131
|
|
|
Haynesville/Madden/Other
|
|
1
|
|
|
228
|
|
|
39
|
|
|
|
|
236
|
|
|
423
|
|
|
307
|
|
|
Proved Undeveloped:
|
|
|
|
|
|
|
|
|||
Gulf of Mexico
|
|
64
|
|
|
77
|
|
|
77
|
|
|
Eagle Ford
|
|
14
|
|
|
12
|
|
|
16
|
|
|
California
|
|
56
|
|
|
7
|
|
|
57
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
43
|
|
|
7
|
|
|
|
|
134
|
|
|
139
|
|
|
157
|
|
|
Total Proved Reserves
|
|
370
|
|
|
562
|
|
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
Probable Oil and Natural Gas Reserves
|
|
|||||||
|
|
Estimated at December 31, 2013
|
|
|||||||
|
|
Oil
a
|
|
Natural Gas
|
|
Total
|
|
|||
|
|
(MMBbls)
|
|
(Bcf)
|
|
(MMBOE)
|
|
|||
Probable Developed
b
:
|
|
|
|
|
|
|
|
|||
Gulf of Mexico
|
|
22
|
|
|
34
|
|
|
28
|
|
|
Eagle Ford
|
|
1
|
|
|
2
|
|
|
2
|
|
|
California
|
|
5
|
|
|
1
|
|
|
5
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
14
|
|
|
2
|
|
|
|
|
28
|
|
|
51
|
|
|
37
|
|
|
Probable Undeveloped:
|
|
|
|
|
|
|
|
|||
Gulf of Mexico
|
|
36
|
|
|
59
|
|
|
46
|
|
|
Eagle Ford
|
|
7
|
|
|
5
|
|
|
8
|
|
|
California
|
|
82
|
|
|
38
|
|
|
88
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
32
|
|
|
5
|
|
|
|
|
125
|
|
|
134
|
|
|
147
|
|
|
Total Probable Reserves
|
|
153
|
|
|
185
|
|
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Net
|
|
||
Exploratory
|
|
|
|
|
||||
|
Productive:
|
|
|
|
|
|||
|
Oil
|
40
|
|
|
35
|
|
|
|
|
Gas
|
25
|
|
|
2
|
|
|
|
|
Dry
|
1
|
|
|
1
|
|
|
|
|
|
|
66
|
|
|
38
|
|
|
Development
|
|
|
|
|
||||
|
Productive:
|
|
|
|
|
|||
|
Oil
|
71
|
|
|
66
|
|
|
|
|
Gas
|
23
|
|
|
8
|
|
|
|
|
Dry
|
1
|
|
|
1
|
|
|
|
|
|
|
95
|
|
|
75
|
|
|
|
|
|
161
|
|
|
113
|
|
|
•
|
Global supply and demand balances and inventory levels;
|
•
|
Global economic and geopolitical conditions;
|
•
|
Government regulatory, trade and tax policies;
|
•
|
Commodities investment activity and speculation;
|
•
|
Price and availability of substitute products; and
|
•
|
Changes in technology.
|
•
|
Limiting our flexibility in planning for, or reacting to, changes in the industries in which we operate;
|
•
|
Increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
Limiting our ability to fund future working capital and capital expenditures, to engage in future development activities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt; or
|
•
|
Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
|
•
|
Renegotiation, cancellation or forced modification of existing contracts;
|
•
|
Expropriation or nationalization of property;
|
•
|
Changes in another country's laws, regulations and policies, including those relating to labor, taxation, royalties, divestment, imports, exports, trade regulations, currency and environmental matters, which because of rising "resource nationalism" in countries around the world, may impose increasingly onerous requirements on foreign operations and investment;
|
•
|
Political instability, bribery, extortion, corruption, civil strife, acts of war, guerrilla activities, insurrection and terrorism;
|
•
|
Changes in the aspirations and expectations of local communities in which we operate with respect to our contributions to employee health and safety, infrastructure and community development and other factors that may affect our social license to operate, all of which lead to increased costs;
|
•
|
Foreign exchange controls; and
|
•
|
The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation within its own territory.
|
•
|
Earthquakes, floods and other natural disasters;
|
•
|
The occurrence of unexpected weather or operating conditions and other force majeure events;
|
•
|
The failure of equipment or processes to operate in accordance with specifications, design or expectations;
|
•
|
Accidents;
|
•
|
Wall failures and rock slides in our open-pit mines, and structural collapses in our underground mines;
|
•
|
Interruption of energy supply;
|
•
|
Lower than expected ore grades or recovery rates;
|
•
|
Metallurgical and other processing problems;
|
•
|
Unanticipated ground and water conditions;
|
•
|
Adverse claims to water rights, adverse outcomes of pending water adjudications and physical shortages of water to which we have legal rights;
|
•
|
Adjacent land ownership or usage that results in constraints on current or future mine operations;
|
•
|
Delays in the receipt of or failure to receive necessary government authorizations, approvals or permits;
|
•
|
Delays in transportation and disruptions of supply routes; and
|
•
|
The inability to obtain satisfactory insurance coverage.
|
•
|
Geologic, geotechnical, hydrogeologic and weather conditions;
|
•
|
Hiring and training of personnel;
|
•
|
Issuance of necessary permits and licenses by governmental agencies;
|
•
|
Civil and political environment of the country or region in which the project is located; and
|
•
|
Access to or development of supporting infrastructure and availability of critical equipment.
|
•
|
Our knowledge and beliefs about complex scientific and historical facts and circumstances that in many cases involve events that occurred many decades ago;
|
•
|
Our beliefs and assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and
|
•
|
Our beliefs regarding the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
|
•
|
Authorize our Board of Directors (the Board) to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class; if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us;
|
•
|
Establish advance notice requirements for nominations to the Board or for proposals that can be presented at stockholder meetings;
|
•
|
Limit removal of directors for cause only;
|
•
|
Limit who may call stockholder meetings; and
|
•
|
Require the approval of the holders of two thirds of our outstanding common stock to enter into certain
business combination transactions, subject to certain exceptions, including if the consideration to be received by our common stockholders in the transaction is deemed to be a fair price.
|
Name
|
|
Age
|
|
Position or Office
|
James R. Moffett
|
|
75
|
|
Chairman of the Board
|
Richard C. Adkerson
|
|
67
|
|
Director, Vice Chairman, and FCX President and Chief Executive Officer
|
James C. Flores
|
|
54
|
|
Director, Vice Chairman, and FM O&G President and Chief Executive Officer
|
Michael J. Arnold
|
|
61
|
|
Executive Vice President and Chief Administrative Officer
|
Kathleen L. Quirk
|
|
50
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
2013
|
|
2012
|
||||
|
|
High
|
|
Low
|
|
High
|
|
Low
|
First Quarter
|
|
$36.26
|
|
$30.72
|
|
$48.96
|
|
$36.76
|
Second Quarter
|
|
$34.00
|
|
$26.37
|
|
$39.43
|
|
$31.16
|
Third Quarter
|
|
$34.99
|
|
$26.95
|
|
$43.65
|
|
$31.08
|
Fourth Quarter
|
|
$38.00
|
|
$32.34
|
|
$42.89
|
|
$30.54
|
|
|
2013
|
||||
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
First Quarter
|
|
$0.3125
|
|
01/15/2013
|
|
02/01/2013
|
Second Quarter
|
|
$0.3125
|
|
04/15/2013
|
|
05/01/2013
|
Supplemental Dividend
|
|
$1.0000
|
|
06/14/2013
|
|
07/01/2013
|
Third Quarter
|
|
$0.3125
|
|
07/15/2013
|
|
08/01/2013
|
Fourth Quarter
|
|
$0.3125
|
|
10/15/2013
|
|
11/01/2013
|
|
|
2012
|
||||
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
First Quarter
|
|
$0.2500
|
|
01/13/2012
|
|
02/01/2012
|
Second Quarter
|
|
$0.3125
|
|
04/13/2012
|
|
05/01/2012
|
Third Quarter
|
|
$0.3125
|
|
07/13/2012
|
|
08/01/2012
|
Fourth Quarter
|
|
$0.3125
|
|
10/15/2012
|
|
11/01/2012
|
Period
|
|
(a) Total
Number of
Shares Purchased
|
|
(b) Average
Price Paid Per Share
|
|
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs
a
|
|
(d) Maximum Number of Shares That May
Yet Be Purchased Under the Plans or Programs
a
|
|||||
October 1-31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
November 1-30, 2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
December 1-31, 2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
Total
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
On July 21, 2008, the Board approved an increase in our open-market share purchase program for up to 30 million shares. The program does not have an expiration date.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2013
a
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
||||||||||
FCX CONSOLIDATED FINANCIAL DATA
|
(In millions, except per share amounts)
|
|
||||||||||||||||||
Revenues
|
$
|
20,921
|
|
b
|
$
|
18,010
|
|
|
$
|
20,880
|
|
|
$
|
18,982
|
|
|
$
|
15,040
|
|
|
Operating income
|
5,351
|
|
b,c,d,e
|
5,814
|
|
c,d,e
|
9,140
|
|
e
|
9,068
|
|
|
6,503
|
|
|
|||||
Net income
|
3,441
|
|
|
3,980
|
|
|
5,747
|
|
|
5,544
|
|
|
3,534
|
|
|
|||||
Net income attributable to FCX common stockholders
|
2,658
|
|
b,c,d,e,f,g
|
3,041
|
|
c,d,e,f,h
|
4,560
|
|
e,f,h
|
4,273
|
|
f
|
2,527
|
|
f
|
|||||
Basic net income per share attributable to FCX common stockholders
|
$
|
2.65
|
|
|
$
|
3.20
|
|
|
$
|
4.81
|
|
|
$
|
4.67
|
|
|
$
|
3.05
|
|
|
Basic weighted-average common shares outstanding
|
1,002
|
|
|
949
|
|
|
947
|
|
|
915
|
|
|
829
|
|
|
|||||
Diluted net income per share attributable to FCX common stockholders
|
$
|
2.64
|
|
b,c,d,e,f,g
|
$
|
3.19
|
|
c,d,e,f,h
|
$
|
4.78
|
|
e,f,h
|
$
|
4.57
|
|
f
|
$
|
2.93
|
|
f
|
Diluted weighted-average common shares outstanding
|
1,006
|
|
|
954
|
|
|
955
|
|
|
949
|
|
|
938
|
|
|
|||||
Dividends declared per share of common stock
|
$
|
2.25
|
|
|
$
|
1.25
|
|
|
$
|
1.50
|
|
|
$
|
1.125
|
|
|
$
|
0.075
|
|
|
Operating cash flows
i
|
6,139
|
|
|
3,774
|
|
|
6,620
|
|
|
6,273
|
|
|
4,397
|
|
|
|||||
Capital expenditures
|
5,286
|
|
|
3,494
|
|
|
2,534
|
|
|
1,412
|
|
|
1,587
|
|
|
|||||
At December 31:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
$
|
4,822
|
|
|
$
|
3,738
|
|
|
$
|
2,656
|
|
|
Property, plant, equipment and mining development costs, net
|
24,042
|
|
|
20,999
|
|
|
18,449
|
|
|
16,785
|
|
|
16,195
|
|
|
|||||
Oil and gas properties, net
|
23,359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Goodwill
|
1,916
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Total assets
|
63,473
|
|
|
35,440
|
|
|
32,070
|
|
|
29,386
|
|
|
25,996
|
|
|
|||||
Total debt, including current portion
|
20,706
|
|
|
3,527
|
|
|
3,537
|
|
|
4,755
|
|
|
6,346
|
|
|
|||||
Redeemable noncontrolling interest
|
716
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Total FCX stockholders’ equity
|
20,934
|
|
|
17,543
|
|
|
15,642
|
|
|
12,504
|
|
|
9,119
|
|
|
a.
|
Includes the results of FCX Oil & Gas Inc. (FM O&G) beginning June 1, 2013.
|
b.
|
Includes charges for net unrealized and noncash realized losses on crude oil and natural gas derivative contracts totaling
$312 million
(
$194 million
to net income attributable to common stockholders or
$0.19
per share) for the seven-month period from June 1, 2013, to December 31, 2013.
|
c.
|
Includes transaction and related costs principally associated with our oil and gas acquisitions totaling
$80 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) in 2013 and
$9 million
(
$7 million
to net income attributable to common stockholders or
$0.01
per share) in 2012.
|
d.
|
The year 2013 includes charges of (i)
$76 million
(
$49 million
to net income attributable to common stock or
$0.05
per share) associated with updated mine plans at Morenci that resulted in a loss of recoverable copper in leach stockpiles and (ii)
$37 million
(
$23 million
to net income attributable to common stockholders of
$0.02
per share) for restructuring an executive employment arrangement. The year 2012 includes a gain of
$59 million
(
$31 million
to net income attributable to common stockholders or
$0.03
per share) for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT Freeport Indonesia's (PT-FI) concentrate pipelines.
|
e.
|
Includes charges associated with labor agreements totaling
$36 million
(
$13 million
to net income attributable to common stockholders or
$0.01
per share) at Cerro Verde in 2013,
$16 million
(
$8 million
to net income attributable to common stockholders or
$0.01
per share) at Candelaria in 2012 and
$116 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) at PT-FI, Cerro Verde and El Abra in 2011.
|
f.
|
Includes net losses on early extinguishment and conversion of debt totaling
$28 million
(
$0.03
per share) in
2013
,
$149 million
(
$0.16
per share) in 2012,
$60 million
(
$0.06
per share) in 2011, $71 million ($0.07 per share) in 2010 and $43 million ($0.04 per share) in 2009.
|
g.
|
Includes gains associated with our oil and gas acquisitions, including (i) $128 million ($0.13 per share) primarily related to our preferred stock investments in and the subsequent acquisition of McMoRan Exploration Co., and (ii) a net tax credit of
$199 million
(
$0.20
per share) associated with net reductions in our deferred tax liabilities and deferred tax asset valuation allowances.
|
h.
|
Includes a net tax credit of
$98 million
, net of noncontrolling interests (
$0.11
per share), in 2012 associated with adjustments to Cerro Verde's deferred income taxes, and a tax charge of
$49 million
, net of noncontrolling interests (
$0.05
per share), in 2011 for additional taxes associated with Cerro Verde's election to pay a special mining burden during the remaining term of its 1998 stability agreement.
|
i.
|
Net of working capital uses and changes in other tax payments totaling
$377 million
in
2013
,
$1.4 billion
in
2012
,
$461 million
in 2011, $834 million in 2010 and $770 million in 2009.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
||||||||||
FCX CONSOLIDATED MINING OPERATING DATA
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
4,131
|
|
|
3,663
|
|
|
3,691
|
|
|
3,908
|
|
|
4,103
|
|
|
|||||
Production (thousands of metric tons)
|
1,874
|
|
|
1,662
|
|
|
1,674
|
|
|
1,773
|
|
|
1,861
|
|
|
|||||
Sales, excluding purchases (millions of pounds)
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
4,111
|
|
|
|||||
Sales, excluding purchases (thousands of metric tons)
|
1,853
|
|
|
1,655
|
|
|
1,678
|
|
|
1,767
|
|
|
1,865
|
|
|
|||||
Average realized price per pound
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
$
|
3.59
|
|
|
$
|
2.60
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,250
|
|
|
958
|
|
|
1,383
|
|
|
1,886
|
|
|
2,664
|
|
|
|||||
Sales, excluding purchases
|
1,204
|
|
|
1,010
|
|
|
1,378
|
|
|
1,863
|
|
|
2,639
|
|
|
|||||
Average realized price per ounce
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
$
|
993
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
94
|
|
|
85
|
|
|
83
|
|
|
72
|
|
|
54
|
|
|
|||||
Sales, excluding purchases
|
93
|
|
|
83
|
|
|
79
|
|
|
67
|
|
|
58
|
|
|
|||||
Average realized price per pound
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
$
|
16.47
|
|
|
$
|
12.36
|
|
|
NORTH AMERICA COPPER MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
1,431
|
|
|
1,363
|
|
|
1,258
|
|
|
1,067
|
|
|
1,147
|
|
|
|||||
Production (thousands of metric tons)
|
649
|
|
|
618
|
|
|
571
|
|
|
484
|
|
|
520
|
|
|
|||||
Sales, excluding purchases (millions of pounds)
|
1,422
|
|
|
1,351
|
|
|
1,247
|
|
|
1,085
|
|
|
1,187
|
|
|
|||||
Sales, excluding purchases (thousands of metric tons)
|
645
|
|
|
613
|
|
|
566
|
|
|
492
|
|
|
538
|
|
|
|||||
Average realized price per pound
|
$
|
3.36
|
|
|
$
|
3.64
|
|
|
$
|
3.99
|
|
|
$
|
3.42
|
|
|
$
|
2.38
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
32
|
|
|
36
|
|
|
35
|
|
|
25
|
|
|
25
|
|
|
|||||
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Solution extraction/electrowinning (SX/EW) operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
1,003,500
|
|
|
998,600
|
|
|
888,300
|
|
|
648,800
|
|
|
589,400
|
|
|
|||||
Average copper ore grade (percent)
|
0.22
|
|
|
0.22
|
|
|
0.24
|
|
|
0.24
|
|
|
0.29
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
889
|
|
|
866
|
|
|
801
|
|
|
746
|
|
|
859
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
246,500
|
|
|
239,600
|
|
|
222,800
|
|
|
189,200
|
|
|
169,900
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
0.39
|
|
|
0.37
|
|
|
0.38
|
|
|
0.32
|
|
|
0.33
|
|
|
|||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.02
|
|
|
|||||
Copper recovery rate (percent)
|
85.3
|
|
|
83.9
|
|
|
83.1
|
|
|
83.0
|
|
|
86.0
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
642
|
|
|
592
|
|
|
549
|
|
|
398
|
|
|
364
|
|
|
|||||
SOUTH AMERICA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
1,323
|
|
|
1,257
|
|
|
1,306
|
|
|
1,354
|
|
|
1,390
|
|
|
|||||
Production (thousands of metric tons)
|
600
|
|
|
570
|
|
|
592
|
|
|
614
|
|
|
631
|
|
|
|||||
Sales (millions of pounds)
|
1,325
|
|
|
1,245
|
|
|
1,322
|
|
|
1,335
|
|
|
1,394
|
|
|
|||||
Sales (thousands of metric tons)
|
601
|
|
|
565
|
|
|
600
|
|
|
606
|
|
|
632
|
|
|
|||||
Average realized price per pound
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
$
|
3.77
|
|
|
$
|
3.68
|
|
|
$
|
2.70
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
101
|
|
|
83
|
|
|
101
|
|
|
93
|
|
|
92
|
|
|
|||||
Sales
|
102
|
|
|
82
|
|
|
101
|
|
|
93
|
|
|
90
|
|
|
|||||
Average realized price per ounce
|
$
|
1,350
|
|
|
$
|
1,673
|
|
|
$
|
1,580
|
|
|
$
|
1,263
|
|
|
$
|
982
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
13
|
|
|
8
|
|
|
10
|
|
|
7
|
|
|
2
|
|
|
|||||
SX/EW operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
274,600
|
|
|
229,300
|
|
|
245,200
|
|
|
268,800
|
|
|
258,200
|
|
|
|||||
Average copper ore grade (percent)
|
0.50
|
|
|
0.55
|
|
|
0.50
|
|
|
0.41
|
|
|
0.45
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
448
|
|
|
457
|
|
|
439
|
|
|
504
|
|
|
565
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
192,600
|
|
|
191,400
|
|
|
189,200
|
|
|
188,800
|
|
|
181,300
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.65
|
|
|
0.60
|
|
|
0.66
|
|
|
0.65
|
|
|
0.66
|
|
|
|||||
Gold (grams per metric ton)
|
0.12
|
|
|
0.10
|
|
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|
|||||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
|||||
Copper recovery rate (percent)
|
90.9
|
|
|
90.1
|
|
|
89.6
|
|
|
90.0
|
|
|
88.9
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
875
|
|
|
800
|
|
|
867
|
|
|
850
|
|
|
825
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
||||||||||
INDONESIA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
915
|
|
|
695
|
|
|
846
|
|
|
1,222
|
|
|
1,412
|
|
|
|||||
Production (thousands of metric tons)
|
415
|
|
|
315
|
|
|
384
|
|
|
554
|
|
|
640
|
|
|
|||||
Sales (millions of pounds)
|
885
|
|
|
716
|
|
|
846
|
|
|
1,214
|
|
|
1,400
|
|
|
|||||
Sales (thousands of metric tons)
|
401
|
|
|
325
|
|
|
384
|
|
|
551
|
|
|
635
|
|
|
|||||
Average realized price per pound
|
$
|
3.28
|
|
|
$
|
3.58
|
|
|
$
|
3.85
|
|
|
$
|
3.69
|
|
|
$
|
2.65
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,142
|
|
|
862
|
|
|
1,272
|
|
|
1,786
|
|
|
2,568
|
|
|
|||||
Sales
|
1,096
|
|
|
915
|
|
|
1,270
|
|
|
1,765
|
|
|
2,543
|
|
|
|||||
Average realized price per ounce
|
$
|
1,312
|
|
|
$
|
1,664
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
$
|
994
|
|
|
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Grasberg open pit
|
127,700
|
|
|
118,800
|
|
|
112,900
|
|
|
149,800
|
|
|
166,300
|
|
|
|||||
Deep Ore Zone underground mine
|
49,400
|
|
|
44,600
|
|
|
51,700
|
|
|
79,600
|
|
|
72,000
|
|
|
|||||
Big Gossan underground mine
|
2,100
|
|
|
1,600
|
|
|
1,500
|
|
|
800
|
|
|
—
|
|
|
|||||
Total
|
179,200
|
|
|
165,000
|
|
|
166,100
|
|
|
230,200
|
|
|
238,300
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.76
|
|
|
0.62
|
|
|
0.79
|
|
|
0.85
|
|
|
0.98
|
|
|
|||||
Gold (grams per metric ton)
|
0.69
|
|
|
0.59
|
|
|
0.93
|
|
|
0.90
|
|
|
1.30
|
|
|
|||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
90.0
|
|
|
88.7
|
|
|
88.3
|
|
|
88.9
|
|
|
90.6
|
|
|
|||||
Gold
|
80.0
|
|
|
75.7
|
|
|
81.2
|
|
|
81.7
|
|
|
83.7
|
|
|
|||||
Production (recoverable):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of pounds)
|
928
|
|
|
695
|
|
|
882
|
|
|
1,330
|
|
|
1,641
|
|
|
|||||
Gold (thousands of ounces)
|
1,142
|
|
|
862
|
|
|
1,444
|
|
|
1,964
|
|
|
2,984
|
|
|
|||||
AFRICA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
462
|
|
|
348
|
|
|
281
|
|
|
265
|
|
|
154
|
|
b
|
|||||
Production (thousands of metric tons)
|
210
|
|
|
158
|
|
|
127
|
|
|
120
|
|
|
70
|
|
b
|
|||||
Sales (millions of pounds)
|
454
|
|
|
336
|
|
|
283
|
|
|
262
|
|
|
130
|
|
b
|
|||||
Sales (thousands of metric tons)
|
206
|
|
|
152
|
|
|
128
|
|
|
119
|
|
|
59
|
|
b
|
|||||
Average realized price per pound
|
$
|
3.21
|
|
|
$
|
3.51
|
|
|
$
|
3.74
|
|
|
$
|
3.45
|
|
|
$
|
2.85
|
|
b
|
Cobalt (millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
28
|
|
|
26
|
|
|
25
|
|
|
20
|
|
|
—
|
|
|
|||||
Sales
|
25
|
|
|
25
|
|
|
25
|
|
|
20
|
|
|
—
|
|
|
|||||
Average realized price per pound
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
$
|
10.95
|
|
|
—
|
|
|
|
Ore milled (metric tons per day)
|
14,900
|
|
|
13,000
|
|
|
11,100
|
|
|
10,300
|
|
|
7,300
|
|
b
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
4.22
|
|
|
3.62
|
|
|
3.41
|
|
|
3.51
|
|
|
3.69
|
|
b
|
|||||
Cobalt
|
0.37
|
|
|
0.37
|
|
|
0.40
|
|
|
0.40
|
|
|
—
|
|
|
|||||
Copper recovery rate (percent)
|
91.4
|
|
|
92.4
|
|
|
92.5
|
|
|
91.4
|
|
|
92.1
|
|
b
|
|||||
MOLYBDENUM MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Molybdenum production (millions of recoverable pounds)
|
49
|
|
c
|
41
|
|
c
|
38
|
|
|
40
|
|
|
27
|
|
|
|||||
Ore milled (metric tons per day)
d
|
35,700
|
|
|
20,800
|
|
|
22,300
|
|
|
22,900
|
|
|
14,900
|
|
|
|||||
Average molybdenum ore grade (percent)
d
|
0.19
|
|
|
0.23
|
|
|
0.24
|
|
|
0.25
|
|
|
0.25
|
|
|
|||||
OIL AND GAS OPERATIONS
e
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (million barrels)
|
26.6
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Natural gas (billion cubic feet)
|
54.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Natural gas liquids (NGLs) (million barrels)
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Million barrels of oil equivalents (MMBOE)
|
38.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Average Realizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (per barrel)
|
$
|
98.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Natural gas
(per million British thermal units)
|
$
|
3.99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
NGLs (per barrel)
|
$
|
38.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
a.
|
Represents the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine.
|
b.
|
Copper production began in March 2009.
|
c.
|
Includes production from the Climax molybdenum mine, which began commercial operations in May 2012.
|
d.
|
The 2013 period reflects operating data for the Henderson and Climax mines; the prior periods reflect operating data of only the Henderson mine.
|
e.
|
Represents the results of FM O&G beginning June 1, 2013.
|
|
Years Ended December 31,
|
||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
Ratio of earnings to fixed charges
|
7.4x
|
|
19.8x
|
|
20.7x
|
|
16.3x
|
|
9.3x
|
Ratio of earnings to fixed charges
|
|
|
|
|
|
|
|
|
|
and preferred stock dividends
|
7.4x
|
|
19.8x
|
|
20.7x
|
|
13.9x
|
|
6.1x
|
a.
|
For
2013
,
60 percent
of our consolidated molybdenum production in North America was from the Henderson and Climax primary molybdenum mines.
|
|
2014
|
|
2013
|
|
||
|
(Projected)
|
|
(Actual)
|
|
||
Copper
(millions of recoverable pounds):
|
|
|
|
|
||
North America copper mines
|
1,725
|
|
|
1,422
|
|
|
South America mining
|
1,190
|
|
|
1,325
|
|
|
Indonesia mining
|
1,070
|
|
|
885
|
|
|
Africa mining
|
445
|
|
|
454
|
|
|
|
4,430
|
|
|
4,086
|
|
|
Gold
(thousands of recoverable ounces):
|
|
|
|
|
||
Indonesia mining
|
1,650
|
|
|
1,096
|
|
|
North and South America mining
|
100
|
|
|
108
|
|
|
|
1,750
|
|
|
1,204
|
|
|
Molybdenum
(millions of recoverable pounds)
|
95
|
|
a
|
93
|
|
|
Oil Equivalents
(MMBOE)
|
60.7
|
|
|
38.1
|
|
b
|
a.
|
Projected molybdenum sales include
48 million
pounds produced at our molybdenum mines and
47 million
pounds produced at our North and South America copper mines.
|
b.
|
Reflects sales of oil and gas for the seven-month period June 1, 2013, to December 31, 2013.
|
|
|
Copper
a
(billion
pounds)
|
|
Gold
(million
ounces)
|
|
Molybdenum
(billion
pounds)
|
|
Consolidated reserves at December 31, 2011
|
|
119.7
|
|
|
33.9
|
|
3.42
|
Net additions/revisions
|
|
0.5
|
|
|
(0.4)
|
|
0.08
|
Production
|
|
(3.7
|
)
|
|
(1.0)
|
|
(0.08)
|
Consolidated reserves at December 31, 2012
|
|
116.5
|
|
|
32.5
|
|
3.42
|
Net additions/revisions
|
|
(1.2
|
)
|
|
—
|
|
(0.07)
|
Production
|
|
(4.1
|
)
|
|
(1.2)
|
|
(0.09)
|
Consolidated reserves at December 31, 2013
|
|
111.2
|
|
|
31.3
|
|
3.26
|
a.
|
Includes estimated recoverable metals contained in stockpiles. See below for additional discussion of recoverable copper in stockpiles.
|
|
|
Oil and Natural Gas
|
|
|
|
(MMBOE)
|
|
Acquisitions of PXP and MMR
|
|
472
|
|
Extensions and discoveries
|
|
24
|
|
Revisions of previous estimates
|
|
7
|
|
Sales of reserves in-place
|
|
(1
|
)
|
Production
|
|
(38
|
)
|
Estimated proved reserves at December 31, 2013
|
|
464
|
|
|
Years Ended December 31,
|
|
||||||||||
|
2013
a
|
|
2012
|
|
2011
|
|
||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||
Revenues
b,c
|
$
|
20,921
|
|
d
|
$
|
18,010
|
|
|
$
|
20,880
|
|
|
Operating income
b,c
|
$
|
5,351
|
|
d,e,f,g,h
|
$
|
5,814
|
|
e,f,g,h
|
$
|
9,140
|
|
e,g
|
Net income attributable to FCX common stockholders
c,l
|
$
|
2,658
|
|
d,e,f,g,h,i,j
|
$
|
3,041
|
|
e,f,g,h,j,k
|
$
|
4,560
|
|
e,g,j,k
|
Diluted net income per share attributable to FCX common stockholders
c,l
|
$
|
2.64
|
|
d,e,f,g,h,i,j
|
$
|
3.19
|
|
e,f,g,h,j,k
|
$
|
4.78
|
|
e,g,j,k
|
Diluted weighted-average common shares outstanding
|
1,006
|
|
|
954
|
|
|
955
|
|
|
|||
Operating cash flows
m
|
$
|
6,139
|
|
|
$
|
3,774
|
|
|
$
|
6,620
|
|
|
Capital expenditures
|
$
|
5,286
|
|
|
$
|
3,494
|
|
|
$
|
2,534
|
|
|
At December 31:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
$
|
4,822
|
|
|
Total debt, including current portion
|
$
|
20,706
|
|
|
$
|
3,527
|
|
|
$
|
3,537
|
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
|
Years Ended December 31,
|
||||||||||
Revenues
|
2013
|
|
2012
|
|
2011
|
||||||
North America copper mines
|
$
|
5,183
|
|
|
$
|
5,486
|
|
|
$
|
5,629
|
|
South America mining
|
4,485
|
|
|
4,728
|
|
|
5,258
|
|
|||
Indonesia mining
|
4,087
|
|
|
3,921
|
|
|
5,046
|
|
|||
Africa mining
|
1,637
|
|
|
1,359
|
|
|
1,289
|
|
|||
Molybdenum mines
|
522
|
|
|
529
|
|
|
595
|
|
|||
Rod & Refining
|
5,022
|
|
|
5,016
|
|
|
5,549
|
|
|||
Atlantic Copper Smelting & Refining
|
2,041
|
|
|
2,709
|
|
|
2,984
|
|
|||
U.S. oil & gas operations
|
2,616
|
|
|
—
|
|
|
—
|
|
|||
Other mining, corporate, other & eliminations
|
(4,672
|
)
|
|
(5,738
|
)
|
|
(5,470
|
)
|
|||
Total FCX revenues
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
$
|
20,880
|
|
|
|
|
|
|
|
||||||
Operating income (loss)
|
|
|
|
|
|
||||||
North America copper mines
|
$
|
1,506
|
|
|
$
|
2,204
|
|
|
$
|
2,771
|
|
South America mining
|
2,063
|
|
|
2,321
|
|
|
3,088
|
|
|||
Indonesia mining
|
1,420
|
|
|
1,298
|
|
|
2,916
|
|
|||
Africa mining
|
625
|
|
|
562
|
|
|
550
|
|
|||
Molybdenum mines
|
123
|
|
|
150
|
|
|
291
|
|
|||
Rod & Refining
|
23
|
|
|
14
|
|
|
13
|
|
|||
Atlantic Copper Smelting & Refining
|
(75
|
)
|
|
8
|
|
|
(69
|
)
|
|||
U.S. oil & gas operations
|
450
|
|
|
—
|
|
|
—
|
|
|||
Other mining, corporate, other & eliminations
|
(784
|
)
|
|
(743
|
)
|
|
(420
|
)
|
|||
Total FCX operating income
|
$
|
5,351
|
|
|
$
|
5,814
|
|
|
$
|
9,140
|
|
c.
|
Includes adjustments to provisionally priced concentrate and cathode sales recognized in prior periods totaling
$(26) million
(
$(12) million
to net income attributable to common stock or
$(0.01)
per share) for the year
2013
,
$101 million
(
$43 million
to net income attributable to common stock or
$0.05
per share) for the year
2012
and
$(12) million
(
$(5) million
to net income attributable to common stock or
$(0.01)
per share) for the year
2011
. Refer to “Revenues” for further discussion.
|
d.
|
Includes charges for net unrealized and noncash realized losses on crude oil and natural gas derivative contracts totaling
$312 million
(
$194 million
to net income attributable to common stockholders or
$0.19
per share) for the seven-month period from June 1, 2013, to December 31, 2013.
|
e.
|
Includes net charges (credits) for adjustments to environmental obligations and related litigation reserves totaling
$19 million
(
$17 million
to net income attributable to common stockholders or
$0.02
per share) in
2013
,
$(62) million
(
$(40) million
to net income attributable to common stockholders or
$(0.04)
per share) in
2012
and
$107 million
(
$86 million
to net income attributable to common stockholders or
$0.09
per share) in 2011.
|
f.
|
Includes transaction and related costs principally associated with the oil and gas acquisitions totaling
$80 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) in 2013 and
$9 million
(
$7 million
to net income attributable to common stockholders or
$0.01
per share) in 2012.
|
g.
|
Includes charges associated with new labor agreements totaling
$36 million
(
$13 million
to net income attributable to common stock or
$0.01
per share) at Cerro Verde in
2013
,
$16 million
(
$8 million
to net income attributable to common stockholders or
$0.01
per share) at Candelaria in
2012
and
$116 million
(
$50 million
to net income attributable to common stock or
$0.05
per share) at PT-FI, Cerro Verde and El Abra in 2011.
|
h.
|
The year
2013
includes charges of (i)
$76 million
(
$49 million
to net income attributable to common stock or
$0.05
per share) associated with updated mine plans at Morenci that resulted in a loss of recoverable copper in leach stockpiles and (ii)
$37 million
(
$23 million
to net income attributable to common stock or
$0.02
per share) for restructuring an executive employment arrangement. The year
2012
includes a gain of
$59 million
(
$31 million
to net income attributable to common stockholders or
$0.03
per share) for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT-FI's concentrate pipelines.
|
i.
|
The year
2013
includes gains associated with our oil and gas acquisitions, including (i)
$128 million
($0.13 per share) primarily related to FCX's preferred stock investment in and the subsequent acquisition of MMR, and (ii) a tax benefit of
$199 million
(
$0.20
per share) associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances. Refer to Note 11 and "Provision for Income Taxes" below for further discussion.
|
j.
|
Includes net losses on early extinguishment of debt totaling
$28 million
(
$0.03
per share) in
2013
,
$149 million
(
$0.16
per share) in
2012
and
$60 million
(
$0.06
per share) in 2011. Refer to Note
8
for further discussion.
|
k.
|
The year 2012 includes a tax benefit of
$98 million
, net of noncontrolling interests, (
$0.11
per share) associated with adjustments to Cerro Verde's deferred income taxes. The year 2011 includes a tax charge of $49 million, net of noncontrolling interests ($0.05 per share) for additional taxes associated with Cerro Verde's election to pay a special mining burden during the remaining term of its 1998 stability agreement. Refer to Note 11 and "Provision for Income Taxes" below for further discussion.
|
l.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to "Operations - Smelting & Refining" for a summary of net impacts from changes in these deferrals.
|
m.
|
Includes net working capital uses and changes in other tax payments of
$377 million
for the year
2013
,
$1.4 billion
for the year
2012
and
$461 million
for the year 2011.
|
|
Years Ended December 31,
|
|
||||||||||
|
2013
a
|
|
2012
|
|
2011
|
|
||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
4,131
|
|
|
3,663
|
|
|
3,691
|
|
|
|||
Sales, excluding purchases (millions of pounds)
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
|||
Average realized price per pound
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
Site production and delivery costs per pound
b
|
$
|
1.88
|
|
|
$
|
2.00
|
|
|
$
|
1.72
|
|
|
Unit net cash costs per pound
b
|
$
|
1.49
|
|
|
$
|
1.48
|
|
|
$
|
1.01
|
|
|
Gold
(recoverable)
|
|
|
|
|
|
|
||||||
Production (thousands of ounces)
|
1,250
|
|
|
958
|
|
|
1,383
|
|
|
|||
Sales, excluding purchases (thousands of ounces)
|
1,204
|
|
|
1,010
|
|
|
1,378
|
|
|
|||
Average realized price per ounce
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
Molybdenum
(recoverable)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
94
|
|
|
85
|
|
|
83
|
|
|
|||
Sales, excluding purchases (millions of pounds)
|
93
|
|
|
83
|
|
|
79
|
|
|
|||
Average realized price per pound
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
||||||
Sales volumes:
|
|
|
|
|
|
|
||||||
MMBOE
|
38.1
|
|
|
|
|
|
|
|||||
MBOE per day
|
178
|
|
|
|
|
|
|
|||||
Cash operating margin per BOE
c
:
|
|
|
|
|
|
|
||||||
Realized revenues
|
$
|
76.87
|
|
|
|
|
|
|
||||
Cash production costs
|
17.14
|
|
|
|
|
|
|
|||||
Cash operating margin
|
$
|
59.73
|
|
|
|
|
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
b.
|
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. For reconciliations of the per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”
|
c.
|
Cash operating margin for our oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude net unrealized and noncash realized losses on derivative contracts and cash production costs exclude accretion and other costs. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Consolidated revenues - prior year
|
$
|
18,010
|
|
|
$
|
20,880
|
|
Mining operations:
|
|
|
|
||||
Higher (lower) sales volumes from mining operations:
|
|
|
|
||||
Copper
|
1,576
|
|
|
(194
|
)
|
||
Gold
|
323
|
|
|
(583
|
)
|
||
Molybdenum
|
151
|
|
|
61
|
|
||
Silver
|
53
|
|
|
(38
|
)
|
||
Cobalt
|
6
|
|
|
(6
|
)
|
||
(Lower) higher price realizations from mining operations:
|
|
|
|
||||
Copper
|
(1,226
|
)
|
|
(948
|
)
|
||
Gold
|
(421
|
)
|
|
82
|
|
||
Molybdenum
|
(225
|
)
|
|
(225
|
)
|
||
Silver
|
(70
|
)
|
|
(44
|
)
|
||
Cobalt
|
5
|
|
|
(54
|
)
|
||
(Unfavorable) favorable impact of net adjustments for prior year provisionally priced sales
|
(133
|
)
|
|
132
|
|
||
Higher (lower) revenues from purchased copper
|
313
|
|
|
(469
|
)
|
||
Lower Atlantic Copper revenues
|
(668
|
)
|
|
(275
|
)
|
||
Other, including intercompany eliminations
|
611
|
|
|
(309
|
)
|
||
Oil and gas operations:
|
|
|
|
||||
Oil and gas revenues, including net realized losses on derivative contracts
|
2,928
|
|
|
—
|
|
||
Net unrealized and noncash realized losses on crude oil and natural gas derivative contracts
|
(312
|
)
|
|
—
|
|
||
Consolidated revenues - current year
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
2013
|
|
2012
|
|
2011
|
|
||||||
Copper (per pound)
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
Gold (per ounce)
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
Molybdenum (per pound)
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
Silver (per ounce)
|
$
|
22.13
|
|
|
$
|
30.06
|
|
|
$
|
36.24
|
|
|
Cobalt (per pound)
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
|
2013
|
|
2012
|
|
||||||||||||||||
|
Income
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision)
Benefit
|
|
Income
a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.
|
$
|
1,080
|
|
|
23%
|
|
$
|
(243
|
)
|
|
$
|
1,571
|
|
|
23%
|
|
$
|
(357
|
)
|
|
South America
|
2,021
|
|
|
36%
|
|
(720
|
)
|
|
2,211
|
|
|
36%
|
|
(791
|
)
|
b
|
||||
Indonesia
|
1,370
|
|
|
44%
|
|
(603
|
)
|
|
1,287
|
|
|
39%
|
|
(497
|
)
|
|
||||
Africa
|
425
|
|
|
31%
|
|
(131
|
)
|
|
357
|
|
|
31%
|
|
(112
|
)
|
|
||||
Eliminations and other
|
17
|
|
|
N/A
|
|
23
|
|
|
61
|
|
|
N/A
|
|
13
|
|
|
||||
|
4,913
|
|
|
34%
|
|
(1,674
|
)
|
|
$
|
5,487
|
|
|
32%
|
|
$
|
(1,744
|
)
|
|
||
Adjustments
|
—
|
|
|
N/A
|
|
199
|
|
c
|
—
|
|
|
N/A
|
|
234
|
|
d
|
||||
Consolidated FCX
|
$
|
4,913
|
|
|
30%
|
|
$
|
(1,475
|
)
|
|
$
|
5,487
|
|
|
28%
|
|
$
|
(1,510
|
)
|
|
a.
|
Represents income by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and we recognized additional deferred tax expense of
$29 million
(
$25 million
net of noncontrolling interests).
|
c.
|
Reflects net reductions in our deferred tax liabilities and deferred tax asset valuation allowances resulting from the oil and gas acquisitions (see Note
11
).
|
d.
|
Reflects the reversal of a net deferred tax liability totaling
$234 million
(
$123 million
net of noncontrolling interest) related to reinvested profits at Cerro Verde that were not expected to be distributed prior to expiration of its 1998 stability agreement on December 31, 2013.
|
|
2011
|
|
||||||||
|
Income
a
|
|
Effective
Tax Rate
|
|
Income Tax
Provision
|
|
||||
U.S.
|
$
|
2,109
|
|
|
23%
|
|
$
|
(477
|
)
|
|
South America
|
3,017
|
|
|
36%
|
|
(1,075
|
)
|
b
|
||
Indonesia
|
2,923
|
|
|
43%
|
|
(1,256
|
)
|
|
||
Africa
|
357
|
|
|
34%
|
|
(120
|
)
|
|
||
Eliminations and other
|
412
|
|
|
N/A
|
|
(159
|
)
|
|
||
Consolidated FCX
|
$
|
8,818
|
|
|
35%
|
|
$
|
(3,087
|
)
|
|
|
|
|
|
|
|
|
a.
|
Represents income by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
In September 2011, Peru enacted a new mining tax and royalty regime and also created a special mining burden that companies with stability agreements could elect to pay. Cerro Verde elected to pay this special mining burden during the remaining term of its 1998 stability agreement, which expired on December 31, 2013. As a result, Cerro Verde recognized additional tax expense of
$53 million
(
$49 million
net of noncontrolling interests) in 2011.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
1,431
|
|
|
1,363
|
|
|
1,258
|
|
|||
Sales, excluding purchases
|
1,422
|
|
|
1,351
|
|
|
1,247
|
|
|||
Average realized price per pound
|
$
|
3.36
|
|
|
$
|
3.64
|
|
|
$
|
3.99
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
a
|
32
|
|
|
36
|
|
|
35
|
|
|||
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
1,003,500
|
|
|
998,600
|
|
|
888,300
|
|
|||
Average copper ore grade (percent)
|
0.22
|
|
|
0.22
|
|
|
0.24
|
|
|||
Copper production (millions of recoverable pounds)
|
889
|
|
|
866
|
|
|
801
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
246,500
|
|
|
239,600
|
|
|
222,800
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
||||||
Copper
|
0.39
|
|
|
0.37
|
|
|
0.38
|
|
|||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|||
Copper recovery rate (percent)
|
85.3
|
|
|
83.9
|
|
|
83.1
|
|
|||
Copper production (millions of recoverable pounds)
|
642
|
|
|
592
|
|
|
549
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at the North America copper mines.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.36
|
|
|
$
|
3.36
|
|
|
$
|
10.79
|
|
|
$
|
3.64
|
|
|
$
|
3.64
|
|
|
$
|
13.00
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.00
|
|
|
1.94
|
|
|
3.79
|
|
|
1.91
|
|
|
1.75
|
|
|
6.32
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
|
(0.36
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.12
|
|
|
0.11
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.87
|
|
|
2.05
|
|
|
3.79
|
|
|
1.67
|
|
|
1.86
|
|
|
6.32
|
|
||||||
Depreciation, depletion and amortization
|
0.28
|
|
|
0.27
|
|
|
0.22
|
|
|
0.26
|
|
|
0.24
|
|
|
0.48
|
|
||||||
Noncash and other costs, net
|
0.14
|
|
b
|
0.14
|
|
|
0.04
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
||||||
Total unit costs
|
2.29
|
|
|
2.46
|
|
|
4.05
|
|
|
2.03
|
|
|
2.20
|
|
|
6.89
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
1.07
|
|
|
$
|
0.90
|
|
|
$
|
6.74
|
|
|
$
|
1.62
|
|
|
$
|
1.45
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,416
|
|
|
1,416
|
|
|
|
|
1,347
|
|
|
1,347
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
32
|
|
|
|
|
|
|
36
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.64
|
|
|
$
|
3.64
|
|
|
$
|
13.00
|
|
|
$
|
3.99
|
|
|
$
|
3.99
|
|
|
$
|
15.72
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.91
|
|
|
1.75
|
|
|
6.32
|
|
|
1.78
|
|
|
1.60
|
|
|
6.86
|
|
||||||
By-product credits
|
(0.36
|
)
|
|
—
|
|
|
—
|
|
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.12
|
|
|
0.11
|
|
|
—
|
|
|
0.11
|
|
|
0.10
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.67
|
|
|
1.86
|
|
|
6.32
|
|
|
1.41
|
|
|
1.70
|
|
|
6.86
|
|
||||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.24
|
|
|
0.48
|
|
|
0.21
|
|
|
0.20
|
|
|
0.39
|
|
||||||
Noncash and other costs, net
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
|
0.13
|
|
|
0.13
|
|
|
0.09
|
|
||||||
Total unit costs
|
2.03
|
|
|
2.20
|
|
|
6.89
|
|
|
1.75
|
|
|
2.03
|
|
|
7.34
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
1.62
|
|
|
$
|
1.45
|
|
|
$
|
6.11
|
|
|
$
|
2.24
|
|
|
$
|
1.96
|
|
|
$
|
8.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,347
|
|
|
1,347
|
|
|
|
|
1,244
|
|
|
1,244
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
36
|
|
|
|
|
|
|
35
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
1,323
|
|
|
1,257
|
|
|
1,306
|
|
|||
Sales
|
1,325
|
|
|
1,245
|
|
|
1,322
|
|
|||
Average realized price per pound
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
$
|
3.77
|
|
|
|
|
|
|
|
||||||
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
||||||
Production
|
101
|
|
|
83
|
|
|
101
|
|
|||
Sales
|
102
|
|
|
82
|
|
|
101
|
|
|||
Average realized price per ounce
|
$
|
1,350
|
|
|
$
|
1,673
|
|
|
$
|
1,580
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
a
|
13
|
|
|
8
|
|
|
10
|
|
|||
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
274,600
|
|
|
229,300
|
|
|
245,200
|
|
|||
Average copper ore grade (percent)
|
0.50
|
|
|
0.55
|
|
|
0.50
|
|
|||
Copper production (millions of recoverable pounds)
|
448
|
|
|
457
|
|
|
439
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
192,600
|
|
|
191,400
|
|
|
189,200
|
|
|||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.65
|
|
|
0.60
|
|
|
0.66
|
|
|||
Gold (grams per metric ton)
|
0.12
|
|
|
0.10
|
|
|
0.12
|
|
|||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|||
Copper recovery rate (percent)
|
90.9
|
|
|
90.1
|
|
|
89.6
|
|
|||
Copper production (millions of recoverable pounds)
|
875
|
|
|
800
|
|
|
867
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at Cerro Verde.
|
|
2013
|
|
2012
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.30
|
|
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
$
|
3.58
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.53
|
|
a
|
1.42
|
|
|
1.60
|
|
a
|
1.49
|
|
||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
0.16
|
|
|
0.16
|
|
||||
Unit net cash costs
|
1.43
|
|
|
1.59
|
|
|
1.50
|
|
|
1.65
|
|
||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.24
|
|
|
0.23
|
|
|
0.22
|
|
||||
Noncash and other costs, net
|
0.04
|
|
|
0.03
|
|
|
0.09
|
|
|
0.06
|
|
||||
Total unit costs
|
1.73
|
|
|
1.86
|
|
|
1.82
|
|
|
1.93
|
|
||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
0.09
|
|
|
0.09
|
|
||||
Gross profit per pound
|
$
|
1.54
|
|
|
$
|
1.41
|
|
|
$
|
1.85
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,325
|
|
|
1,325
|
|
|
1,245
|
|
|
1,245
|
|
a.
|
Includes labor agreement costs totaling $36 million ($0.03 per pound) at Cerro Verde in 2013 and
$16 million
($0.01 per pound) at Candelaria in 2012.
|
|
2012
|
|
2011
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
$
|
3.77
|
|
|
$
|
3.77
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.60
|
|
a
|
1.49
|
|
|
1.38
|
|
a
|
1.27
|
|
||||
By-product credits
|
(0.26
|
)
|
|
—
|
|
|
(0.35
|
)
|
|
—
|
|
||||
Treatment charges
|
0.16
|
|
|
0.16
|
|
|
0.17
|
|
|
0.17
|
|
||||
Unit net cash costs
|
1.50
|
|
|
1.65
|
|
|
1.20
|
|
|
1.44
|
|
||||
Depreciation, depletion and amortization
|
0.23
|
|
|
0.22
|
|
|
0.20
|
|
|
0.18
|
|
||||
Noncash and other costs, net
|
0.09
|
|
|
0.06
|
|
|
0.06
|
|
|
0.05
|
|
||||
Total unit costs
|
1.82
|
|
|
1.93
|
|
|
1.46
|
|
|
1.67
|
|
||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
0.09
|
|
|
0.09
|
|
|
0.01
|
|
|
—
|
|
||||
Gross profit per pound
|
$
|
1.85
|
|
|
$
|
1.74
|
|
|
$
|
2.32
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,245
|
|
|
1,245
|
|
|
1,322
|
|
|
1,322
|
|
a.
|
Includes labor agreement costs totaling
$16 million
($0.01 per pound) at Candelaria in 2012 and $50 million ($0.04 per pound) at Cerro Verde and El Abra in 2011.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
915
|
|
|
695
|
|
|
846
|
|
|||
Sales
|
885
|
|
|
716
|
|
|
846
|
|
|||
Average realized price per pound
|
$
|
3.28
|
|
|
$
|
3.58
|
|
|
$
|
3.85
|
|
|
|
|
|
|
|
||||||
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
||||||
Production
|
1,142
|
|
|
862
|
|
|
1,272
|
|
|||
Sales
|
1,096
|
|
|
915
|
|
|
1,270
|
|
|||
Average realized price per ounce
|
$
|
1,312
|
|
|
$
|
1,664
|
|
|
$
|
1,583
|
|
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
||||||
Grasberg open pit
|
127,700
|
|
|
118,800
|
|
|
112,900
|
|
|||
DOZ underground mine
b
|
49,400
|
|
|
44,600
|
|
|
51,700
|
|
|||
Big Gossan underground mine
c
|
2,100
|
|
|
1,600
|
|
|
1,500
|
|
|||
Total
|
179,200
|
|
|
165,000
|
|
|
166,100
|
|
|||
|
|
|
|
|
|
||||||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.76
|
|
|
0.62
|
|
|
0.79
|
|
|||
Gold (grams per metric ton)
|
0.69
|
|
|
0.59
|
|
|
0.93
|
|
|||
Recovery rates (percent):
|
|
|
|
|
|
||||||
Copper
|
90.0
|
|
|
88.7
|
|
|
88.3
|
|
|||
Gold
|
80.0
|
|
|
75.7
|
|
|
81.2
|
|
|||
Production (recoverable):
|
|
|
|
|
|
||||||
Copper (millions of pounds)
|
928
|
|
|
695
|
|
|
882
|
|
|||
Gold (thousands of ounces)
|
1,142
|
|
|
862
|
|
|
1,444
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine.
|
b.
|
Production from the DOZ underground mine is expected to ramp up to the design rate of 80,000 metric tons of ore per day during 2014, pending approval of export permits as described above.
|
c.
|
Production from the Big Gossan underground mine is expected to ramp up to 7,000 metric tons of ore per day by 2016; however, production is currently suspended pending resolution of the export regulatory matter.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-
Product
|
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.28
|
|
|
$
|
3.28
|
|
|
$
|
1,312
|
|
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
$
|
1,664
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.46
|
|
|
1.62
|
|
|
648
|
|
|
3.12
|
|
|
1.93
|
|
|
894
|
|
||||||
Gold and silver credits
|
(1.69
|
)
|
|
—
|
|
|
—
|
|
|
(2.22
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.23
|
|
|
0.15
|
|
|
61
|
|
|
0.21
|
|
|
0.13
|
|
|
61
|
|
||||||
Royalty on metals
|
0.12
|
|
|
0.08
|
|
|
33
|
|
|
0.13
|
|
|
0.08
|
|
|
38
|
|
||||||
Unit net cash costs
|
1.12
|
|
|
1.85
|
|
|
742
|
|
|
1.24
|
|
|
2.14
|
|
|
993
|
|
||||||
Depreciation and amortization
|
0.28
|
|
|
0.19
|
|
|
73
|
|
|
0.30
|
|
|
0.18
|
|
|
85
|
|
||||||
Noncash and other costs, net
|
0.13
|
|
|
0.09
|
|
|
35
|
|
|
0.11
|
|
|
0.07
|
|
|
33
|
|
||||||
Total unit costs
|
1.53
|
|
|
2.13
|
|
|
850
|
|
|
1.65
|
|
|
2.39
|
|
|
1,111
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
0.02
|
|
|
0.02
|
|
|
3
|
|
||||||
PT Smelting intercompany loss
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(6
|
)
|
|
(0.05
|
)
|
|
(0.03
|
)
|
|
(15
|
)
|
||||||
Gross profit per pound/ounce
|
$
|
1.73
|
|
|
$
|
1.14
|
|
|
$
|
455
|
|
|
$
|
1.90
|
|
|
$
|
1.18
|
|
|
$
|
541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
885
|
|
|
885
|
|
|
|
|
716
|
|
|
716
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
1,096
|
|
|
|
|
|
|
915
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
By-
Product |
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
$
|
1,664
|
|
|
$
|
3.85
|
|
|
$
|
3.85
|
|
|
$
|
1,583
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
3.12
|
|
|
1.93
|
|
|
894
|
|
|
2.21
|
|
a
|
1.34
|
|
|
551
|
|
||||||
Gold and silver credits
|
(2.22
|
)
|
|
—
|
|
|
—
|
|
|
(2.47
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.21
|
|
|
0.13
|
|
|
61
|
|
|
0.19
|
|
|
0.11
|
|
|
46
|
|
||||||
Royalty on metals
|
0.13
|
|
|
0.08
|
|
|
38
|
|
|
0.16
|
|
|
0.10
|
|
|
41
|
|
||||||
Unit net cash costs
|
1.24
|
|
|
2.14
|
|
|
993
|
|
|
0.09
|
|
|
1.55
|
|
|
638
|
|
||||||
Depreciation and amortization
|
0.30
|
|
|
0.18
|
|
|
85
|
|
|
0.25
|
|
|
0.16
|
|
|
63
|
|
||||||
Noncash and other costs, net
|
0.11
|
|
|
0.07
|
|
|
33
|
|
|
0.04
|
|
|
0.02
|
|
|
10
|
|
||||||
Total unit costs
|
1.65
|
|
|
2.39
|
|
|
1,111
|
|
|
0.38
|
|
|
1.73
|
|
|
711
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
0.02
|
|
|
0.02
|
|
|
3
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(13
|
)
|
||||||
PT Smelting intercompany (loss) profit
|
(0.05
|
)
|
|
(0.03
|
)
|
|
(15
|
)
|
|
0.13
|
|
|
0.08
|
|
|
32
|
|
||||||
Gross profit per pound/ounce
|
$
|
1.90
|
|
|
$
|
1.18
|
|
|
$
|
541
|
|
|
$
|
3.59
|
|
|
$
|
2.19
|
|
|
$
|
891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
716
|
|
|
716
|
|
|
|
|
846
|
|
|
846
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
915
|
|
|
|
|
|
|
1,270
|
|
a.
|
Includes $66 million ($0.08 per pound) for bonuses and other strike-related costs
.
|
|
2013
|
|
2012
|
|
2011
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
|
||||||
Production
|
462
|
|
|
348
|
|
|
281
|
|
|
|||
Sales
|
454
|
|
|
336
|
|
|
283
|
|
|
|||
Average realized price per pound
a
|
$
|
3.21
|
|
|
$
|
3.51
|
|
|
$
|
3.74
|
|
|
|
|
|
|
|
|
|
||||||
Cobalt
(millions of contained pounds)
|
|
|
|
|
|
|
||||||
Production
|
28
|
|
|
26
|
|
|
25
|
|
|
|||
Sales
|
25
|
|
|
25
|
|
|
25
|
|
|
|||
Average realized price per pound
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
|
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
14,900
|
|
|
13,000
|
|
|
11,100
|
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
|
||||||
Copper
|
4.22
|
|
|
3.62
|
|
|
3.41
|
|
|
|||
Cobalt
|
0.37
|
|
|
0.37
|
|
|
0.40
|
|
|
|||
Copper recovery rate (percent)
|
91.4
|
|
|
92.4
|
|
|
92.5
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
8.02
|
|
|
$
|
3.51
|
|
|
$
|
3.51
|
|
|
$
|
7.83
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.43
|
|
|
1.35
|
|
|
4.35
|
|
|
1.49
|
|
|
1.39
|
|
|
4.86
|
|
||||||
Cobalt credits
b
|
(0.29
|
)
|
|
—
|
|
|
—
|
|
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.14
|
|
|
0.07
|
|
|
0.06
|
|
|
0.12
|
|
||||||
Unit net cash costs
|
1.21
|
|
|
1.41
|
|
|
4.49
|
|
|
1.23
|
|
|
1.45
|
|
|
4.98
|
|
||||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.48
|
|
|
1.00
|
|
|
0.52
|
|
|
0.47
|
|
|
0.67
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.06
|
|
|
0.11
|
|
|
0.09
|
|
|
0.08
|
|
|
0.11
|
|
||||||
Total unit costs
|
1.81
|
|
|
1.95
|
|
|
5.60
|
|
|
1.84
|
|
|
2.00
|
|
|
5.76
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
0.09
|
|
|
0.02
|
|
|
0.02
|
|
|
0.09
|
|
||||||
Gross profit per pound
|
$
|
1.40
|
|
|
$
|
1.26
|
|
|
$
|
2.51
|
|
|
$
|
1.69
|
|
|
$
|
1.53
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
454
|
|
|
454
|
|
|
|
|
336
|
|
|
336
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|
|
|
25
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.51
|
|
|
$
|
3.51
|
|
|
$
|
7.83
|
|
|
$
|
3.74
|
|
|
$
|
3.74
|
|
|
$
|
9.99
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.49
|
|
|
1.39
|
|
|
4.86
|
|
|
1.57
|
|
|
1.39
|
|
|
5.58
|
|
||||||
Cobalt credits
b
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
|
(0.58
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.12
|
|
|
0.08
|
|
|
0.07
|
|
|
0.16
|
|
||||||
Unit net cash costs
|
1.23
|
|
|
1.45
|
|
|
4.98
|
|
|
1.07
|
|
|
1.46
|
|
|
5.74
|
|
||||||
Depreciation, depletion and amortization
|
0.52
|
|
|
0.47
|
|
|
0.67
|
|
|
0.50
|
|
|
0.42
|
|
|
0.78
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
|
0.08
|
|
|
0.11
|
|
|
0.20
|
|
|
0.18
|
|
|
0.32
|
|
||||||
Total unit costs
|
1.84
|
|
|
2.00
|
|
|
5.76
|
|
|
1.77
|
|
|
2.06
|
|
|
6.84
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
0.02
|
|
|
0.02
|
|
|
0.09
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
||||||
Gross profit per pound
|
$
|
1.69
|
|
|
$
|
1.53
|
|
|
$
|
2.16
|
|
|
$
|
1.97
|
|
|
$
|
1.68
|
|
|
$
|
3.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
336
|
|
|
336
|
|
|
|
|
283
|
|
|
283
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|
|
|
25
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
2013
|
|
2012
|
|
2011
|
|||
Molybdenum mines operating data
|
|
|
|
|
|
|||
Molybdenum production (millions of recoverable pounds)
|
49
|
|
a
|
41
|
|
a
|
38
|
|
Ore milled (metric tons per day)
b
|
35,700
|
|
|
20,800
|
|
|
22,300
|
|
Average molybdenum ore grade (percent)
b
|
0.19
|
|
|
0.23
|
|
|
0.24
|
|
a.
|
Includes molybdenum production from the Climax mine since the start of commercial operations in May 2012.
|
b.
|
The year 2013 reflects operating data for the Henderson and Climax mines; 2012 and 2011 reflect the operating data of only the Henderson mine.
|
|
2013
a
|
|
2012
a
|
|
2011
a
|
|
||||||
Revenues, excluding adjustments
b
|
$
|
11.65
|
|
|
$
|
14.27
|
|
|
$
|
16.42
|
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
||||||
and other costs shown below
|
6.24
|
|
|
6.19
|
|
|
5.46
|
|
|
|||
Treatment charges and other
|
0.91
|
|
|
0.88
|
|
|
0.88
|
|
|
|||
Unit net cash costs
|
7.15
|
|
|
7.07
|
|
|
6.34
|
|
|
|||
Depreciation, depletion and amortization
|
1.68
|
|
|
0.97
|
|
|
0.96
|
|
|
|||
Noncash and other costs, net
|
0.29
|
|
|
0.24
|
|
|
0.04
|
|
|
|||
Total unit costs
|
9.12
|
|
|
8.28
|
|
|
7.34
|
|
|
|||
Gross profit per pound
|
$
|
2.53
|
|
|
$
|
5.99
|
|
|
$
|
9.08
|
|
|
|
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
b
|
49
|
|
|
34
|
|
|
38
|
|
|
a.
|
The year 2013 reflects operating data for the Henderson and Climax mines; 2012 and 2011 reflect the results of only the Henderson mine.
|
b.
|
Revenues reflect sales of the molybdenum mines' production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on actual contract terms of sales made to third parties. As a result, our consolidated average realized price per pound of molybdenum (refer to "Consolidated Results") will differ from the amounts reported in this table.
|
|
|
Seven Months From
|
|
||
|
|
June 1, 2013, to
|
|
||
|
|
December 31, 2013
|
|
||
Sales Volumes
|
|
|
|
||
Oil (MMBbls)
|
|
26.6
|
|
|
|
Natural gas (Bcf)
|
|
54.2
|
|
|
|
NGLs (MMBbls)
|
|
2.4
|
|
|
|
MMBOE
|
|
38.1
|
|
|
|
|
|
|
|
||
Average Realizations
a
|
|
|
|
||
Oil (per barrel)
|
|
$
|
98.32
|
|
|
Natural gas
(per MMbtu)
|
|
$
|
3.99
|
|
|
NGLs (per barrel)
|
|
$
|
38.20
|
|
|
|
|
|
|
||
Gross Profit per BOE
|
|
|
|
||
Realized revenues
a
|
|
$
|
76.87
|
|
|
Less: Cash production costs
a
|
|
17.14
|
|
|
|
Cash operating margin
a
|
|
59.73
|
|
|
|
Less: Depreciation, depletion and amortization
|
|
35.81
|
|
|
|
Less: Accretion and other costs
|
|
0.79
|
|
|
|
Revenue adjustments for unrealized losses on derivative contracts
|
|
(8.20
|
)
|
|
|
Other net adjustments
|
|
0.04
|
|
|
|
Gross profit
|
|
$
|
14.97
|
|
|
a.
|
Cash operating margin for our oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude net unrealized and noncash realized losses on derivative contracts and cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realizations for oil, natural gas and NGLs) and cash production costs per BOE to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
|
|
Seven Months From
|
|
|
June 1, 2013, to
|
|
|
December 31, 2013
|
Sales Volumes (MBOE per day):
|
|
|
GOM
a
|
|
72
|
Eagle Ford
|
|
46
|
California
|
|
39
|
Haynesville/Madden/Other
|
|
21
|
Total oil and gas operations
|
|
178
|
a.
|
Includes sales from properties on the GOM Shelf and in the Deepwater GOM. Production from the GOM Shelf totaled 13 MBOE per day (18 percent of the GOM total).
|
|
2013
|
|
2012
|
||||
Cash at domestic companies
|
$
|
0.4
|
|
|
$
|
1.3
|
|
Cash at international operations
|
1.6
|
|
|
2.4
|
|
||
Total consolidated cash and cash equivalents
|
2.0
|
|
|
3.7
|
|
||
Less: Noncontrolling interests’ share
|
(0.6
|
)
|
|
(0.8
|
)
|
||
Cash, net of noncontrolling interests’ share
|
1.4
|
|
|
2.9
|
|
||
Less: Withholding taxes and other
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Net cash available
|
$
|
1.3
|
|
|
$
|
2.7
|
|
|
|
|
Weighted-
|
|
||
|
|
|
Average
|
|
||
|
|
|
Interest Rate
|
|
||
Acquisition-related debt
|
$
|
10.5
|
|
a
|
3.0%
|
|
Assumed debt of PXP
|
6.7
|
|
|
6.8%
|
|
|
FCX's previously existing debt
|
3.5
|
|
|
3.4%
|
|
|
|
$
|
20.7
|
|
|
4.2%
|
|
|
|
|
|
|
|
Total
|
|
2014
|
|
2015 to
2016
|
|
2017 to
2018
|
|
Thereafter
|
||||||||||
Debt maturities
|
$
|
20,054
|
|
|
$
|
312
|
|
|
$
|
1,803
|
|
|
$
|
4,400
|
|
|
$
|
13,539
|
|
Scheduled interest payment obligations
a
|
8,880
|
|
|
852
|
|
|
1,668
|
|
|
1,575
|
|
|
4,785
|
|
|||||
ARO and environmental obligations
b
|
7,237
|
|
|
247
|
|
|
449
|
|
|
423
|
|
|
6,118
|
|
|||||
Take-or-pay contracts
c
|
4,710
|
|
|
1,379
|
|
|
2,176
|
|
|
828
|
|
|
327
|
|
|||||
Operating lease obligations
|
336
|
|
|
45
|
|
|
84
|
|
|
75
|
|
|
132
|
|
|||||
Total
d
|
$
|
41,217
|
|
|
$
|
2,835
|
|
|
$
|
6,180
|
|
|
$
|
7,301
|
|
|
$
|
24,901
|
|
a.
|
Scheduled interest payment obligations were calculated using stated coupon rates for fixed-rate debt and interest rates applicable at
December 31, 2013
, for variable-rate debt.
|
b.
|
Represents estimated cash payments, on an undiscounted and unescalated basis, associated with ARO and environmental activities (including $1.8 billion for our recently acquired oil and gas operations). The timing and the amount of these payments could change as a result of changes in regulatory requirements, changes in scope and timing of ARO activities, the settlement of environmental matters and as actual spending occurs. Refer to Note
12
for additional discussion of environmental and ARO matters.
|
c.
|
Represents contractual obligations for purchases of goods or service agreements enforceable and legally binding and that specify all significant terms, including minimum commitments for two deepwater drillships expected to be delivered in late 2014 and early 2015 for the GOM drilling campaign (
$1.5 billion
), transportation services (
$853 million
), the procurement of copper concentrates (
$800 million
), electricity (
$471 million
) and deferred premium costs and future interest expected to be accrued on the crude oil derivative contracts (
$454 million
). Some of our take-or-pay contracts are settled based on the prevailing market rate for the service or commodity purchased, and in some cases, the amount of the actual obligation may change over time because of market conditions. Drillship obligations provide for an operating rate over the contractual term upon delivery of the drillship. Transportation obligations are primarily for South America and PT-FI contracted ocean freight. Obligations for copper concentrates provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Electricity obligations are primarily for contractual minimum demand at the South America and Tenke mines.
|
d.
|
This table excludes certain other obligations in our consolidated balance sheets, such as estimated funding for pension obligations as the funding may vary from year to year based on changes in the fair value of plan assets and actuarial assumptions, accrued liabilities totaling
$87 million
that relate to unrecognized tax benefits where the timing of settlement is not determinable, and other less significant amounts.This table also excludes purchase orders for the purchase of inventory and other goods and services, as purchase orders typically represent authorizations to purchase rather than binding agreements.
|
|
2013
|
|
2012
|
|
2011
|
|
||||||
Revenues
|
$
|
(26
|
)
|
|
$
|
101
|
|
|
$
|
(12
|
)
|
|
Net income attributable to FCX common stockholders
|
$
|
(12
|
)
|
|
$
|
43
|
|
|
$
|
(5
|
)
|
|
Net income per share of FCX common stock
|
$
|
(0.01
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.01
|
)
|
|
|
10% Increase
|
|
10% Decrease
|
||||
Crude oil puts
|
$
|
(72
|
)
|
|
$
|
146
|
|
Natural gas swaps
|
(14
|
)
|
|
14
|
|
||
|
$
|
(86
|
)
|
|
$
|
160
|
|
|
Exchange Rate per $1
at December 31,
|
|
Estimated Annual Payments
|
|
10% Change in
Exchange Rate
(in millions)
a
|
|||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
(in local currency)
|
|
(in millions)
b
|
|
Increase
|
|
Decrease
|
|||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Rupiah
|
12,128
|
|
|
9,622
|
|
|
9,060
|
|
|
7.5 trillion
|
|
$
|
618
|
|
|
$
|
(56
|
)
|
|
$
|
69
|
|
Australian dollar
|
1.12
|
|
|
0.93
|
|
|
0.98
|
|
|
300 million
|
|
$
|
267
|
|
|
$
|
(24
|
)
|
|
$
|
30
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Chilean peso
|
525
|
|
|
480
|
|
|
519
|
|
|
350 billion
|
|
$
|
667
|
|
|
$
|
(61
|
)
|
|
$
|
74
|
|
Peruvian nuevo sol
|
2.80
|
|
|
2.55
|
|
|
2.70
|
|
|
570 million
|
|
$
|
204
|
|
|
$
|
(19
|
)
|
|
$
|
23
|
|
Atlantic Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Euro
|
0.73
|
|
|
0.76
|
|
|
0.77
|
|
|
130 million
|
|
$
|
179
|
|
|
$
|
(16
|
)
|
|
$
|
20
|
|
a.
|
Reflects the estimated impact on annual operating costs assuming a 10 percent increase or decrease in the exchange rate reported at
December 31, 2013
.
|
b.
|
Based on
December 31, 2013
, exchange rates.
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
Fair Value
|
||||||||||||||
Fixed-rate debt
|
$
|
5
|
|
|
$
|
502
|
|
|
$
|
1
|
|
|
$
|
500
|
|
|
$
|
1,500
|
|
|
$
|
13,397
|
|
|
$
|
16,345
|
|
Average interest rate
|
6.8
|
%
|
|
1.4
|
%
|
|
6.7
|
%
|
|
2.2
|
%
|
|
2.4
|
%
|
|
5.4
|
%
|
|
4.9
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Variable-rate debt
|
$
|
307
|
|
|
$
|
550
|
|
|
$
|
750
|
|
|
$
|
200
|
|
|
$
|
2,200
|
|
|
$
|
142
|
|
|
$
|
4,142
|
|
Average interest rate
|
1.6
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
|
3.8
|
%
|
|
1.7
|
%
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs
.
|
c.
|
Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
d.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
4,366
|
|
|
$
|
4,366
|
|
|
$
|
374
|
|
a
|
$
|
4,740
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
2,023
|
|
b
|
1,875
|
|
|
170
|
|
|
2,045
|
|
||||
By-product credits
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
226
|
|
|
226
|
|
|
—
|
|
|
226
|
|
||||
Net cash costs
|
1,897
|
|
|
2,101
|
|
|
170
|
|
|
2,271
|
|
||||
Depreciation, depletion and amortization
|
346
|
|
|
323
|
|
|
23
|
|
|
346
|
|
||||
Noncash and other costs, net
|
49
|
|
|
44
|
|
|
5
|
|
|
49
|
|
||||
Total costs
|
2,292
|
|
|
2,468
|
|
|
198
|
|
|
2,666
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
||||
Gross profit
|
$
|
2,046
|
|
|
$
|
1,870
|
|
|
$
|
176
|
|
|
$
|
2,046
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,325
|
|
|
1,325
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.30
|
|
|
$
|
3.30
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.53
|
|
b
|
1.42
|
|
|
|
|
|
||||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.43
|
|
|
1.59
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.24
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.03
|
|
|
|
|
|
||||||
Total unit costs
|
1.73
|
|
|
1.86
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.54
|
|
|
$
|
1.41
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
4,740
|
|
|
$
|
2,045
|
|
|
$
|
346
|
|
|
|
||
Treatment charges
|
(226
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
49
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(1
|
)
|
|
(25
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
4,485
|
|
|
2,069
|
|
|
346
|
|
|
|
|||||
Other mining & eliminations
c
|
13,816
|
|
|
9,082
|
|
|
1,076
|
|
|
|
|||||
Total mining
|
18,301
|
|
|
11,151
|
|
|
1,422
|
|
|
|
|||||
U.S. oil & gas operations
|
2,616
|
|
|
682
|
|
|
1,364
|
|
|
|
|||||
Corporate, other & eliminations
|
4
|
|
|
7
|
|
|
11
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,921
|
|
|
$
|
11,840
|
|
|
$
|
2,797
|
|
|
|
a.
|
Includes gold sales of
102 thousand
ounces (
$1,350
per ounce average realized price) and silver sales of
4.1 million
ounces (
$21.88
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes charges totaling
$36 million
($0.03 per pound) associated with labor agreement costs at Cerro Verde.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
4,462
|
|
|
$
|
4,462
|
|
|
$
|
355
|
|
a
|
$
|
4,817
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,995
|
|
b
|
1,846
|
|
|
173
|
|
|
2,019
|
|
||||
By-product credits
|
(331
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
202
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||
Net cash costs
|
1,866
|
|
|
2,048
|
|
|
173
|
|
|
2,221
|
|
||||
Depreciation, depletion and amortization
|
287
|
|
|
272
|
|
|
15
|
|
|
287
|
|
||||
Noncash and other costs, net
|
110
|
|
|
75
|
|
|
35
|
|
|
110
|
|
||||
Total costs
|
2,263
|
|
|
2,395
|
|
|
223
|
|
|
2,618
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
106
|
|
|
106
|
|
|
—
|
|
|
106
|
|
||||
Gross profit
|
$
|
2,305
|
|
|
$
|
2,173
|
|
|
$
|
132
|
|
|
$
|
2,305
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,245
|
|
|
1,245
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.60
|
|
b
|
1.49
|
|
|
|
|
|
||||||
By-product credits
|
(0.26
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.16
|
|
|
0.16
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.50
|
|
|
1.65
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.23
|
|
|
0.22
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
1.82
|
|
|
1.93
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.09
|
|
|
0.09
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.85
|
|
|
$
|
1.74
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
4,817
|
|
|
$
|
2,019
|
|
|
$
|
287
|
|
|
|
||
Treatment charges
|
(202
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
110
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
106
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
7
|
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
4,728
|
|
|
2,114
|
|
|
287
|
|
|
|
|||||
Other mining & eliminations
c
|
13,275
|
|
|
8,265
|
|
|
885
|
|
|
|
|||||
Total mining
|
18,003
|
|
|
10,379
|
|
|
1,172
|
|
|
|
|||||
U.S. oil & gas operations
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Corporate, other & eliminations
|
7
|
|
|
3
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
18,010
|
|
|
$
|
10,382
|
|
|
$
|
1,179
|
|
|
|
a.
|
Includes gold sales of
82 thousand
ounces (
$1,673
per ounce average realized price) and silver sales of
3.2 million
ounces (
$30.33
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$16 million
($0.01 per pound) associated with labor agreement costs at Candelaria.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2011
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
4,989
|
|
|
$
|
4,989
|
|
|
$
|
477
|
|
a
|
$
|
5,466
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,826
|
|
b
|
1,679
|
|
|
172
|
|
|
1,851
|
|
||||
By-product credits
|
(452
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
219
|
|
|
219
|
|
|
—
|
|
|
219
|
|
||||
Net cash costs
|
1,593
|
|
|
1,898
|
|
|
172
|
|
|
2,070
|
|
||||
Depreciation, depletion and amortization
|
258
|
|
|
242
|
|
|
16
|
|
|
258
|
|
||||
Noncash and other costs, net
|
82
|
|
|
75
|
|
|
7
|
|
|
82
|
|
||||
Total costs
|
1,933
|
|
|
2,215
|
|
|
195
|
|
|
2,410
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
15
|
|
|
(4
|
)
|
|
19
|
|
|
15
|
|
||||
Gross profit
|
$
|
3,071
|
|
|
$
|
2,770
|
|
|
$
|
301
|
|
|
$
|
3,071
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,322
|
|
|
1,322
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.77
|
|
|
$
|
3.77
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.38
|
|
b
|
1.27
|
|
|
|
|
|
||||||
By-product credits
|
(0.35
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.20
|
|
|
1.44
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.20
|
|
|
0.18
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.05
|
|
|
|
|
|
||||||
Total unit costs
|
1.46
|
|
|
1.67
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.01
|
|
|
—
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
2.32
|
|
|
$
|
2.10
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
5,466
|
|
|
$
|
1,851
|
|
|
$
|
258
|
|
|
|
||
Treatment charges
|
(219
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
82
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
15
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(4
|
)
|
|
(28
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
5,258
|
|
|
1,905
|
|
|
258
|
|
|
|
|||||
Other mining & eliminations
c
|
15,614
|
|
|
7,996
|
|
|
757
|
|
|
|
|||||
Total mining
|
20,872
|
|
|
9,901
|
|
|
1,015
|
|
|
|
|||||
U.S. oil & gas operations
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Corporate, other & eliminations
|
8
|
|
|
(3
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,880
|
|
|
$
|
9,898
|
|
|
$
|
1,022
|
|
|
|
a.
|
Includes gold sales of
101 thousand
ounces (
$1,580
per ounce average realized price) and silver sales of
3.2 million
ounces (
$36.81
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$50 million
($0.04 per pound) for bonuses paid at Cerro Verde and El Abra pursuant to new labor agreement.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.1 million
ounces (
$30.70
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.7 million
ounces (
$36.18
per ounce average realized price).
|
b.
|
Includes
$66 million
($0.08 per pound) for bonuses and other strike-related costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
1,457
|
|
|
$
|
1,457
|
|
|
$
|
205
|
|
|
$
|
1,662
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
649
|
|
|
614
|
|
|
111
|
|
|
725
|
|
||||
Cobalt credits
b
|
(131
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
29
|
|
|
26
|
|
|
3
|
|
|
29
|
|
||||
Net cash costs
|
547
|
|
|
640
|
|
|
114
|
|
|
754
|
|
||||
Depreciation, depletion and amortization
|
246
|
|
|
220
|
|
|
26
|
|
|
246
|
|
||||
Noncash and other costs, net
|
29
|
|
|
26
|
|
|
3
|
|
|
29
|
|
||||
Total costs
|
822
|
|
|
886
|
|
|
143
|
|
|
1,029
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
||||
Gross profit
|
$
|
637
|
|
|
$
|
573
|
|
|
$
|
64
|
|
|
$
|
637
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
454
|
|
|
454
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
8.02
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.43
|
|
|
1.35
|
|
|
4.35
|
|
|
|
|||||
Cobalt credits
b
|
(0.29
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.14
|
|
|
|
|||||
Unit net cash costs
|
1.21
|
|
|
1.41
|
|
|
4.49
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.48
|
|
|
1.00
|
|
|
|
|||||
Noncash and other costs, net
|
0.06
|
|
|
0.06
|
|
|
0.11
|
|
|
|
|||||
Total unit costs
|
1.81
|
|
|
1.95
|
|
|
5.60
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
0.09
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.40
|
|
|
$
|
1.26
|
|
|
$
|
2.51
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,662
|
|
|
$
|
725
|
|
|
$
|
246
|
|
|
|
||
Royalty on metals
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
29
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
4
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
1,637
|
|
|
754
|
|
|
246
|
|
|
|
|||||
Other mining & eliminations
c
|
16,664
|
|
|
10,397
|
|
|
1,176
|
|
|
|
|||||
Total mining
|
18,301
|
|
|
11,151
|
|
|
1,422
|
|
|
|
|||||
U.S. oil & gas operations
|
2,616
|
|
|
682
|
|
|
1,364
|
|
|
|
|||||
Corporate, other & eliminations
|
4
|
|
|
7
|
|
|
11
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,921
|
|
|
$
|
11,840
|
|
|
$
|
2,797
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
1,179
|
|
|
$
|
1,179
|
|
|
$
|
194
|
|
|
$
|
1,373
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
501
|
|
|
465
|
|
|
121
|
|
|
586
|
|
||||
Cobalt credits
b
|
(112
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
25
|
|
|
22
|
|
|
3
|
|
|
25
|
|
||||
Net cash costs
|
414
|
|
|
487
|
|
|
124
|
|
|
611
|
|
||||
Depreciation, depletion and amortization
|
176
|
|
|
160
|
|
|
16
|
|
|
176
|
|
||||
Noncash and other costs, net
|
29
|
|
|
26
|
|
|
3
|
|
|
29
|
|
||||
Total costs
|
619
|
|
|
673
|
|
|
143
|
|
|
816
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
8
|
|
|
8
|
|
|
3
|
|
|
11
|
|
||||
Gross profit
|
$
|
568
|
|
|
$
|
514
|
|
|
$
|
54
|
|
|
$
|
568
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
336
|
|
|
336
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.51
|
|
|
$
|
3.51
|
|
|
$
|
7.83
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.49
|
|
|
1.39
|
|
|
4.86
|
|
|
|
|||||
Cobalt credits
b
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.12
|
|
|
|
|||||
Unit net cash costs
|
1.23
|
|
|
1.45
|
|
|
4.98
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.52
|
|
|
0.47
|
|
|
0.67
|
|
|
|
|||||
Noncash and other costs, net
|
0.09
|
|
|
0.08
|
|
|
0.11
|
|
|
|
|||||
Total unit costs
|
1.84
|
|
|
2.00
|
|
|
5.76
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
0.02
|
|
|
0.02
|
|
|
0.09
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.69
|
|
|
$
|
1.53
|
|
|
$
|
2.16
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,373
|
|
|
$
|
586
|
|
|
$
|
176
|
|
|
|
||
Royalty on metals
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
29
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
11
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
1,359
|
|
|
615
|
|
|
176
|
|
|
|
|||||
Other mining & eliminations
c
|
16,644
|
|
|
9,764
|
|
|
996
|
|
|
|
|||||
Total mining
|
18,003
|
|
|
10,379
|
|
|
1,172
|
|
|
|
|||||
U.S. oil & gas operations
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Corporate, other & eliminations
|
7
|
|
|
3
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
18,010
|
|
|
$
|
10,382
|
|
|
$
|
1,179
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2011
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
1,059
|
|
|
$
|
1,059
|
|
|
$
|
253
|
|
|
$
|
1,312
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
444
|
|
|
393
|
|
|
141
|
|
|
534
|
|
||||
Cobalt credits
b
|
(165
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
24
|
|
|
20
|
|
|
4
|
|
|
24
|
|
||||
Net cash costs
|
303
|
|
|
413
|
|
|
145
|
|
|
558
|
|
||||
Depreciation, depletion and amortization
|
140
|
|
|
120
|
|
|
20
|
|
|
140
|
|
||||
Noncash and other costs, net
|
57
|
|
|
49
|
|
|
8
|
|
|
57
|
|
||||
Total costs
|
500
|
|
|
582
|
|
|
173
|
|
|
755
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
||||
Gross profit
|
$
|
558
|
|
|
$
|
476
|
|
|
$
|
82
|
|
|
$
|
558
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
283
|
|
|
283
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.74
|
|
|
$
|
3.74
|
|
|
$
|
9.99
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.57
|
|
|
1.39
|
|
|
5.58
|
|
|
|
|||||
Cobalt credits
b
|
(0.58
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.08
|
|
|
0.07
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.07
|
|
|
1.46
|
|
|
5.74
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.50
|
|
|
0.42
|
|
|
0.78
|
|
|
|
|||||
Noncash and other costs, net
|
0.20
|
|
|
0.18
|
|
|
0.32
|
|
|
|
|||||
Total unit costs
|
1.77
|
|
|
2.06
|
|
|
6.84
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
0.06
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.97
|
|
|
$
|
1.68
|
|
|
$
|
3.21
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,312
|
|
|
$
|
534
|
|
|
$
|
140
|
|
|
|
||
Royalty on metals
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Net noncash and other costs
|
—
|
|
|
57
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
1,289
|
|
|
591
|
|
|
140
|
|
|
|
|||||
Other mining & eliminations
c
|
19,583
|
|
|
9,310
|
|
|
875
|
|
|
|
|||||
Total mining
|
20,872
|
|
|
9,901
|
|
|
1,015
|
|
|
|
|||||
U.S. oil & gas operations
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Corporate, other & eliminations
|
8
|
|
|
(3
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,880
|
|
|
$
|
9,898
|
|
|
$
|
1,022
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Seven months from June 1, 2013, to December 31, 2013
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
Oil & Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
2,655
|
|
|
$
|
202
|
|
|
$
|
92
|
|
|
$
|
2,949
|
|
|
Realized (losses) gains on derivative contracts
|
(36
|
)
|
|
14
|
|
|
—
|
|
|
(22
|
)
|
|
||||
Realized revenues
|
$
|
2,619
|
|
|
$
|
216
|
|
|
$
|
92
|
|
|
2,927
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
653
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
2,274
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
1,364
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
29
|
|
|
|||||||
Plus: net unrealized and noncash realized losses on derivative contracts
|
|
|
|
|
|
|
(312
|
)
|
a
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
1
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
570
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
26.6
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
54.2
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
2.4
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
38.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
99.67
|
|
|
$
|
3.73
|
|
|
$
|
38.20
|
|
|
$
|
77.45
|
|
|
Realized (losses) gains on derivative contracts
|
(1.35
|
)
|
|
0.26
|
|
|
—
|
|
|
(0.58
|
)
|
|
||||
Realized revenues
|
$
|
98.32
|
|
|
$
|
3.99
|
|
|
$
|
38.20
|
|
|
76.87
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
17.14
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
59.73
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
35.81
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.79
|
|
|
|||||||
Plus: net unrealized and noncash realized losses on derivative contracts
|
|
|
|
|
|
|
(8.20
|
)
|
a
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
14.97
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In Millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Revenues, before derivative contracts
|
$
|
2,949
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
||
Realized losses on derivative contracts
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Unrealized and noncash realized losses on derivative contracts
|
(312
|
)
|
a
|
—
|
|
|
—
|
|
|
|
|
|||||
Cash production costs
|
—
|
|
|
653
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
29
|
|
|
—
|
|
|
|
|
|||||
Depreciation, depletion and amortization
|
—
|
|
|
—
|
|
|
1,364
|
|
|
|
|
|||||
Other net adjustments
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
2,616
|
|
|
682
|
|
|
1,364
|
|
|
|
|
|||||
Total mining
b
|
18,301
|
|
|
11,151
|
|
|
1,422
|
|
|
|
|
|||||
Corporate, other & eliminations
|
4
|
|
|
7
|
|
|
11
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
20,921
|
|
|
$
|
11,840
|
|
|
$
|
2,797
|
|
|
|
|
a.
|
Includes $85 million ($2.23 per BOE) of noncash losses realized on 2013 derivative contracts resulting from amounts recorded as part of acquisition accounting.
|
b.
|
Represents the combined total for all mining operations and the related eliminations, as presented in Note
16
.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
Richard C. Adkerson
|
|
Kathleen L. Quirk
|
Vice Chairman of the Board,
|
|
Executive Vice President,
|
President and Chief Executive Officer
|
|
Chief Financial Officer and Treasurer
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions, except per share amounts)
|
||||||||||
Revenues
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
$
|
20,880
|
|
Cost of sales:
|
|
|
|
|
|
||||||
Production and delivery
|
11,840
|
|
|
10,382
|
|
|
9,898
|
|
|||
Depreciation, depletion and amortization
|
2,797
|
|
|
1,179
|
|
|
1,022
|
|
|||
Total cost of sales
|
14,637
|
|
|
11,561
|
|
|
10,920
|
|
|||
Selling, general and administrative expenses
|
657
|
|
|
431
|
|
|
415
|
|
|||
Mining exploration and research expenses
|
210
|
|
|
285
|
|
|
271
|
|
|||
Environmental obligations and shutdown costs
|
66
|
|
|
(22
|
)
|
|
134
|
|
|||
Gain on insurance settlement
|
—
|
|
|
(59
|
)
|
|
—
|
|
|||
Total costs and expenses
|
15,570
|
|
|
12,196
|
|
|
11,740
|
|
|||
Operating income
|
5,351
|
|
|
5,814
|
|
|
9,140
|
|
|||
Interest expense, net
|
(518
|
)
|
|
(186
|
)
|
|
(312
|
)
|
|||
Losses on early extinguishment of debt
|
(35
|
)
|
|
(168
|
)
|
|
(68
|
)
|
|||
Gain on investment in McMoRan Exploration Co. (MMR)
|
128
|
|
|
—
|
|
|
—
|
|
|||
Other (expense) income, net
|
(13
|
)
|
|
27
|
|
|
58
|
|
|||
Income before income taxes and equity in affiliated companies' net earnings
|
4,913
|
|
|
5,487
|
|
|
8,818
|
|
|||
Provision for income taxes
|
(1,475
|
)
|
|
(1,510
|
)
|
|
(3,087
|
)
|
|||
Equity in affiliated companies’ net earnings
|
3
|
|
|
3
|
|
|
16
|
|
|||
Net income
|
3,441
|
|
|
3,980
|
|
|
5,747
|
|
|||
Net income and preferred dividends attributable to noncontrolling interests
|
(783
|
)
|
|
(939
|
)
|
|
(1,187
|
)
|
|||
Net income attributable to FCX common stockholders
|
$
|
2,658
|
|
|
$
|
3,041
|
|
|
$
|
4,560
|
|
|
|
|
|
|
|
||||||
Net income per share attributable to FCX common stockholders:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.65
|
|
|
$
|
3.20
|
|
|
$
|
4.81
|
|
Diluted
|
$
|
2.64
|
|
|
$
|
3.19
|
|
|
$
|
4.78
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,002
|
|
|
949
|
|
|
947
|
|
|||
Diluted
|
1,006
|
|
|
954
|
|
|
955
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share of common stock
|
$
|
2.25
|
|
|
$
|
1.25
|
|
|
$
|
1.50
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Net income
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
$
|
5,747
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
||||||
Actuarial gains (losses) arising during the period
|
85
|
|
|
(66
|
)
|
|
(137
|
)
|
|||
Prior service costs arising during the period
|
(21
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of unrecognized amounts included in net periodic benefit costs
|
30
|
|
|
26
|
|
|
15
|
|
|||
Adjustment to deferred tax valuation allowance
|
—
|
|
|
(1
|
)
|
|
(20
|
)
|
|||
Translation adjustments and unrealized losses on securities
|
4
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Other comprehensive income (loss)
|
98
|
|
|
(42
|
)
|
|
(145
|
)
|
|||
|
|
|
|
|
|
||||||
Total comprehensive income
|
3,539
|
|
|
3,938
|
|
|
5,602
|
|
|||
Total comprehensive income and preferred dividends attributable to noncontrolling interests
|
(780
|
)
|
|
(938
|
)
|
|
(1,184
|
)
|
|||
Total comprehensive income attributable to FCX common stockholders
|
$
|
2,759
|
|
|
$
|
3,000
|
|
|
$
|
4,418
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In millions)
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
$
|
5,747
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
|
2,797
|
|
|
1,179
|
|
|
1,022
|
|
|||
Net losses on crude oil and natural gas derivative contracts
|
|
334
|
|
|
—
|
|
|
—
|
|
|||
Gain on investment in MMR
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
|
173
|
|
|
100
|
|
|
117
|
|
|||
Pension plans contributions
|
|
(71
|
)
|
|
(140
|
)
|
|
(46
|
)
|
|||
Net charges for environmental and asset retirement obligations, including accretion
|
|
164
|
|
|
22
|
|
|
208
|
|
|||
Payments for environmental and asset retirement obligations
|
|
(237
|
)
|
|
(246
|
)
|
|
(170
|
)
|
|||
Losses on early extinguishment of debt
|
|
35
|
|
|
168
|
|
|
68
|
|
|||
Deferred income taxes
|
|
277
|
|
|
269
|
|
|
523
|
|
|||
Increase in long-term mill and leach stockpiles
|
|
(431
|
)
|
|
(269
|
)
|
|
(262
|
)
|
|||
Other, net
|
|
162
|
|
|
128
|
|
|
(126
|
)
|
|||
(Increases) decreases in working capital and changes in other tax payments, excluding amounts from acquisitions:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
49
|
|
|
(365
|
)
|
|
1,246
|
|
|||
Inventories
|
|
(288
|
)
|
|
(729
|
)
|
|
(431
|
)
|
|||
Other current assets
|
|
26
|
|
|
(76
|
)
|
|
(57
|
)
|
|||
Accounts payable and accrued liabilities
|
|
(359
|
)
|
|
209
|
|
|
(387
|
)
|
|||
Accrued income taxes and changes in other tax payments
|
|
195
|
|
|
(456
|
)
|
|
(832
|
)
|
|||
Net cash provided by operating activities
|
|
6,139
|
|
|
3,774
|
|
|
6,620
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
North America copper mines
|
|
(1,066
|
)
|
|
(825
|
)
|
|
(494
|
)
|
|||
South America
|
|
(1,145
|
)
|
|
(931
|
)
|
|
(603
|
)
|
|||
Indonesia
|
|
(1,030
|
)
|
|
(843
|
)
|
|
(648
|
)
|
|||
Africa
|
|
(205
|
)
|
|
(539
|
)
|
|
(193
|
)
|
|||
Molybdenum mines
|
|
(164
|
)
|
|
(245
|
)
|
|
(438
|
)
|
|||
U.S. oil and gas operations
|
|
(1,436
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
|
(240
|
)
|
|
(111
|
)
|
|
(158
|
)
|
|||
Acquisition of Plains Exploration & Production Company, net of cash acquired
|
|
(3,465
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition of MMR, net of cash acquired
|
|
(1,628
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition of cobalt chemical business, net of cash acquired
|
|
(348
|
)
|
|
—
|
|
|
—
|
|
|||
Restricted cash and other, net
|
|
(181
|
)
|
|
31
|
|
|
(1
|
)
|
|||
Net cash used in investing activities
|
|
(10,908
|
)
|
|
(3,463
|
)
|
|
(2,535
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from debt
|
|
11,501
|
|
|
3,029
|
|
|
48
|
|
|||
Repayments of debt
|
|
(5,476
|
)
|
|
(3,186
|
)
|
|
(1,313
|
)
|
|||
Redemption of MMR preferred stock
|
|
(228
|
)
|
|
—
|
|
|
—
|
|
|||
Cash dividends and distributions paid:
|
|
|
|
|
|
|
||||||
Common stock
|
|
(2,281
|
)
|
|
(1,129
|
)
|
|
(1,423
|
)
|
|||
Noncontrolling interests
|
|
(256
|
)
|
|
(113
|
)
|
|
(391
|
)
|
|||
Debt financing costs
|
|
(113
|
)
|
|
(51
|
)
|
|
(10
|
)
|
|||
Contributions from noncontrolling interests
|
|
—
|
|
|
15
|
|
|
62
|
|
|||
Net (payments for) proceeds from stock-based awards
|
|
(97
|
)
|
|
(1
|
)
|
|
3
|
|
|||
Excess tax (expense) benefit from stock-based awards
|
|
(1
|
)
|
|
8
|
|
|
23
|
|
|||
Net cash provided by (used in) financing activities
|
|
3,049
|
|
|
(1,428
|
)
|
|
(3,001
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
(1,720
|
)
|
|
(1,117
|
)
|
|
1,084
|
|
|||
Cash and cash equivalents at beginning of year
|
|
3,705
|
|
|
4,822
|
|
|
3,738
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
$
|
4,822
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions, except par values)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,985
|
|
|
$
|
3,705
|
|
Trade accounts receivable
|
1,728
|
|
|
927
|
|
||
Income taxes receivable
|
419
|
|
|
436
|
|
||
Other accounts receivable
|
415
|
|
|
266
|
|
||
Inventories:
|
|
|
|
||||
Materials and supplies, net
|
1,730
|
|
|
1,504
|
|
||
Mill and leach stockpiles
|
1,705
|
|
|
1,672
|
|
||
Product
|
1,583
|
|
|
1,400
|
|
||
Other current assets
|
407
|
|
|
387
|
|
||
Total current assets
|
9,972
|
|
|
10,297
|
|
||
Property, plant, equipment and mining development costs, net
|
24,042
|
|
|
20,999
|
|
||
Oil and gas properties, net - full cost method:
|
|
|
|
||||
Subject to amortization, less accumulated amortization of $1,357 as of December 31, 2013
|
12,472
|
|
|
—
|
|
||
Not subject to amortization
|
10,887
|
|
|
—
|
|
||
Long-term mill and leach stockpiles
|
2,386
|
|
|
1,955
|
|
||
Goodwill
|
1,916
|
|
|
—
|
|
||
Other assets
|
1,798
|
|
|
2,189
|
|
||
Total assets
|
$
|
63,473
|
|
|
$
|
35,440
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
3,700
|
|
|
$
|
2,324
|
|
Dividends payable
|
333
|
|
|
299
|
|
||
Current portion of debt
|
312
|
|
|
2
|
|
||
Current portion of environmental and asset retirement obligations
|
236
|
|
|
241
|
|
||
Accrued income taxes
|
184
|
|
|
93
|
|
||
Current portion of deferred income taxes
|
8
|
|
|
384
|
|
||
Total current liabilities
|
4,773
|
|
|
3,343
|
|
||
Long-term debt, less current portion
|
20,394
|
|
|
3,525
|
|
||
Deferred income taxes
|
7,410
|
|
|
3,490
|
|
||
Environmental and asset retirement obligations, less current portion
|
3,259
|
|
|
2,127
|
|
||
Other liabilities
|
1,690
|
|
|
1,644
|
|
||
Total liabilities
|
37,526
|
|
|
14,129
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interest
|
716
|
|
|
—
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
FCX stockholders’ equity:
|
|
|
|
||||
Common stock, par value $0.10, 1,165 shares and 1,073 shares issued, respectively
|
117
|
|
|
107
|
|
||
Capital in excess of par value
|
22,161
|
|
|
19,119
|
|
||
Retained earnings
|
2,742
|
|
|
2,399
|
|
||
Accumulated other comprehensive loss
|
(405
|
)
|
|
(506
|
)
|
||
Common stock held in treasury – 127 shares and 124 shares, respectively, at cost
|
(3,681
|
)
|
|
(3,576
|
)
|
||
Total FCX stockholders’ equity
|
20,934
|
|
|
17,543
|
|
||
Noncontrolling interests
|
4,297
|
|
|
3,768
|
|
||
Total equity
|
25,231
|
|
|
21,311
|
|
||
Total liabilities and equity
|
$
|
63,473
|
|
|
$
|
35,440
|
|
|
FCX Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Retained Earnings (Accumulated Deficit)
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total FCX
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2011
|
1,067
|
|
|
$
|
107
|
|
|
$
|
18,751
|
|
|
$
|
(2,590
|
)
|
|
$
|
(323
|
)
|
|
122
|
|
|
$
|
(3,441
|
)
|
|
$
|
12,504
|
|
|
$
|
2,056
|
|
|
$
|
14,560
|
|
Exercised and issued stock-based awards
|
4
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|
—
|
|
|
117
|
|
||||||||
Tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(112
|
)
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,424
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,424
|
)
|
|
—
|
|
|
(1,424
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(391
|
)
|
|
(391
|
)
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
||||||||
Total comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,560
|
|
|
(142
|
)
|
|
—
|
|
|
—
|
|
|
4,418
|
|
|
1,184
|
|
|
5,602
|
|
||||||||
Balance at December 31, 2011
|
1,071
|
|
|
107
|
|
|
19,007
|
|
|
546
|
|
|
(465
|
)
|
|
123
|
|
|
(3,553
|
)
|
|
15,642
|
|
|
2,911
|
|
|
18,553
|
|
||||||||
Exercised and issued stock-based awards
|
2
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||||||
Tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(23
|
)
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
(1,188
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(113
|
)
|
|
(113
|
)
|
||||||||
Change in ownership interests
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
17
|
|
|
—
|
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||
Total comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,041
|
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|
938
|
|
|
3,938
|
|
||||||||
Balance at December 31, 2012
|
1,073
|
|
|
107
|
|
|
19,119
|
|
|
2,399
|
|
|
(506
|
)
|
|
124
|
|
|
(3,576
|
)
|
|
17,543
|
|
|
3,768
|
|
|
21,311
|
|
||||||||
Common stock issued to acquire Plains Exploration & Production Co.
|
91
|
|
|
9
|
|
|
2,822
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,831
|
|
|
—
|
|
|
2,831
|
|
||||||||
Exchange of employee stock-based awards in connection with acquisitions
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
||||||||
Exercised and issued stock-based awards
|
1
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
153
|
|
||||||||
Reserve on tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(105
|
)
|
|
(105
|
)
|
|
—
|
|
|
(105
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,315
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,315
|
)
|
|
—
|
|
|
(2,315
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(236
|
)
|
|
(236
|
)
|
||||||||
Noncontrolling interests' share of contributed capital in subsidiary
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
—
|
|
||||||||
Redeemable noncontrolling interest dividends and related interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
(22
|
)
|
||||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,658
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
2,759
|
|
|
780
|
|
|
3,539
|
|
||||||||
Balance at December 31, 2013
|
1,165
|
|
|
$
|
117
|
|
|
$
|
22,161
|
|
|
$
|
2,742
|
|
|
$
|
(405
|
)
|
|
127
|
|
|
$
|
(3,681
|
)
|
|
$
|
20,934
|
|
|
$
|
4,297
|
|
|
$
|
25,231
|
|
•
|
the present value, discounted at
10 percent
, of estimated future net cash flows from the related proved oil and natural gas reserves, net of estimated future income taxes; plus
|
•
|
the cost of the related unproved properties not being amortized; plus
|
•
|
the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects).
|
|
2013
|
|
2012
|
|
2011
|
|
||||||
Net income
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
$
|
5,747
|
|
|
Net income attributable to noncontrolling interests
|
(761
|
)
|
|
(939
|
)
|
|
(1,187
|
)
|
|
|||
Preferred dividends on redeemable noncontrolling interest
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
|||
Net income attributable to FCX common stockholders
|
$
|
2,658
|
|
|
$
|
3,041
|
|
|
$
|
4,560
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average shares of common stock outstanding (millions)
|
1,002
|
|
|
949
|
|
|
947
|
|
|
|||
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (millions)
|
4
|
|
a
|
5
|
|
a
|
8
|
|
a
|
|||
Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share (millions)
|
1,006
|
|
|
954
|
|
|
955
|
|
|
|||
|
|
|
|
|
|
|
||||||
Diluted net income per share attributable to FCX common stockholders
|
$
|
2.64
|
|
|
$
|
3.19
|
|
|
$
|
4.78
|
|
|
a.
|
Excluded shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock that were anti-dilutive based on the treasury stock method totaled approximately
one million
for the years ended
December 31, 2013
and
2012
, and
two million
for the year ended
December 31, 2011
.
|
Number of shares of PXP common stock acquired (millions)
|
132.280
|
|
|
|
Exchange ratio of FCX common stock for each PXP share
|
0.6531
|
|
|
|
|
86.392
|
|
|
|
Shares of FCX common stock issued for certain PXP equity awards (millions)
|
4.769
|
|
|
|
Total shares of FCX common stock issued (millions)
|
91.161
|
|
|
|
|
|
|
||
Closing share price of FCX common stock at May 31, 2013
|
$
|
31.05
|
|
|
FCX stock consideration
|
$
|
2,831
|
|
|
Cash consideration
|
3,725
|
|
a
|
|
Employee stock-based awards, primarily cash-settled stock-based awards
|
83
|
|
|
|
Total purchase price
|
$
|
6,639
|
|
|
a.
|
Cash consideration included the payment of
$25.00
in cash for each PXP share (
$3.3 billion
), cash paid in lieu of any fractional shares of FCX common stock, cash paid for certain equity awards (
$7 million
), and the value of the
$3
per share PXP special cash dividend (
$411 million
) paid on
May 31, 2013
.
|
Number of shares of MMR common stock acquired (millions)
|
112.362
|
|
a
|
|
Cash consideration of $14.75 per share
|
$
|
14.75
|
|
|
Cash consideration paid by FCX
|
$
|
1,657
|
|
|
Employee stock-based awards
|
63
|
|
|
|
Total
|
1,720
|
|
|
|
|
|
|
||
Fair value of FCX's investment in 51 million shares of MMR common stock acquired on
|
|
|
||
May 31, 2013, through the acquisition of PXP
|
854
|
|
|
|
Fair value of FCX's investment in MMR's 5.75% Convertible Perpetual Preferred Stock, Series 2
|
554
|
|
|
|
Total purchase price
|
$
|
3,128
|
|
|
a.
|
Excluded
51 million
shares of MMR common stock owned by FCX through its acquisition of PXP on
May 31, 2013
.
|
|
PXP
|
|
MMR
|
|
Eliminations
|
|
Total
|
||||||||
Current assets
|
$
|
1,193
|
|
|
$
|
98
|
|
|
$
|
—
|
|
|
$
|
1,291
|
|
Oil and gas properties - full cost method:
|
|
|
|
|
|
|
|
||||||||
Subject to amortization
|
11,447
|
|
|
756
|
|
|
—
|
|
|
12,203
|
|
||||
Not subject to amortization.
|
9,401
|
|
|
1,686
|
|
|
—
|
|
|
11,087
|
|
||||
Property, plant and equipment
|
261
|
|
|
1
|
|
|
—
|
|
|
262
|
|
||||
Investment in MMR
a
|
848
|
|
|
—
|
|
|
(848
|
)
|
|
—
|
|
||||
Other assets
|
12
|
|
|
423
|
|
|
—
|
|
|
435
|
|
||||
Current liabilities
|
(906
|
)
|
|
(174
|
)
|
|
—
|
|
|
(1,080
|
)
|
||||
Debt (current and long-term)
|
(10,631
|
)
|
|
(620
|
)
|
|
—
|
|
|
(11,251
|
)
|
||||
Deferred income taxes
b
|
(3,916
|
)
|
|
—
|
|
|
—
|
|
|
(3,916
|
)
|
||||
Other long-term liabilities
|
(799
|
)
|
|
(262
|
)
|
|
—
|
|
|
(1,061
|
)
|
||||
Redeemable noncontrolling interest
|
(708
|
)
|
|
(259
|
)
|
|
—
|
|
|
(967
|
)
|
||||
Total fair value, excluding goodwill
|
6,202
|
|
|
1,649
|
|
|
(848
|
)
|
|
7,003
|
|
||||
Goodwill
c
|
437
|
|
|
1,479
|
|
|
—
|
|
|
1,916
|
|
||||
Total purchase price
|
$
|
6,639
|
|
|
$
|
3,128
|
|
|
$
|
(848
|
)
|
|
$
|
8,919
|
|
a.
|
PXP owned
51 million
shares of MMR common stock, which was eliminated in FCX's consolidated balance sheet at the acquisition date of MMR.
|
b.
|
Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a
38 percent
tax rate, which reflected the
35 percent
federal statutory rate and a
3 percent
weighted-average of the applicable statutory state tax rates (net of federal benefit).
|
c.
|
During the fourth quarter of 2013, FCX conducted a qualitative goodwill impairment assessment by examining relevant events and circumstances that could have a negative impact on FCX's goodwill, such as macroeconomic conditions, industry and market conditions, cost factors that have a negative effect on earnings and cash flows, overall financial performance, dispositions and acquisitions, and any other relevant events or circumstances. After assessing the relevant events and circumstances for the qualitative impairment assessment, FCX determined that performing a quantitative goodwill impairment test was unnecessary, and no goodwill impairment was recognized.
|
|
|
PXP
|
|
MMR
|
|
Total
|
||||||
Increase in current assets (primarily current deferred income tax asset)
|
|
$
|
183
|
|
|
$
|
2
|
|
|
$
|
185
|
|
Decreases in oil and gas properties - full cost method:
|
|
|
|
|
|
|
||||||
Subject to amortization
|
|
—
|
|
|
(45
|
)
|
|
(45
|
)
|
|||
Not subject to amortization
|
|
(234
|
)
|
|
(6
|
)
|
|
(240
|
)
|
|||
Increase in other assets (deferred income tax asset)
|
|
—
|
|
|
24
|
|
|
24
|
|
|||
Net increase in deferred income tax liability
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
|||
Net decrease (increase) in other liabilities (primarily warrants)
|
|
77
|
|
|
(4
|
)
|
|
73
|
|
|||
Decrease in redeemable noncontrolling interest
|
|
41
|
|
|
—
|
|
|
41
|
|
|||
(Decrease) increase in goodwill
|
|
(17
|
)
|
|
29
|
|
|
12
|
|
|
Years Ended December 31,
|
|
||||||
|
2013
|
|
2012
|
|
||||
Revenues
|
$
|
23,075
|
|
|
$
|
22,713
|
|
|
Operating income
|
6,267
|
|
|
6,815
|
|
|
||
Income from continuing operations
|
3,626
|
|
|
4,277
|
|
|
||
Net income attributable to FCX common stockholders
|
2,825
|
|
|
3,301
|
|
|
||
|
|
|
|
|
||||
Net income per share attributable to FCX common stockholders:
|
|
|
|
|
||||
Basic
|
$
|
2.71
|
|
|
$
|
3.17
|
|
|
Diluted
|
2.70
|
|
|
3.16
|
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Current inventories:
|
|
|
|
||||
Raw materials (primarily concentrates)
|
$
|
238
|
|
|
$
|
237
|
|
Work-in-process
a
|
199
|
|
|
252
|
|
||
Finished goods
b
|
1,146
|
|
|
911
|
|
||
Total product inventories
|
$
|
1,583
|
|
|
$
|
1,400
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
91
|
|
|
$
|
104
|
|
Leach stockpiles
|
1,614
|
|
c
|
1,568
|
|
||
Total current mill and leach stockpiles
|
$
|
1,705
|
|
|
$
|
1,672
|
|
|
|
|
|
||||
Total materials and supplies, net
d
|
$
|
1,730
|
|
|
$
|
1,504
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
||||
Mill stockpiles
|
$
|
698
|
|
|
$
|
615
|
|
Leach stockpiles
|
1,688
|
|
|
1,340
|
|
||
Total long-term mill and leach stockpiles
e
|
$
|
2,386
|
|
|
$
|
1,955
|
|
a.
|
FCX's mining operations also have work-in-process inventories that are included in mill and leach stockpiles.
|
b.
|
Primarily included molybdenum concentrates; copper concentrates, anodes, cathodes and rod; and various cobalt products.
|
c.
|
Amount is net of a
$76 million
charge associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
d.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$24 million
at
December 31, 2013
, and
$27 million
at
December 31, 2012
.
|
e.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Proven and probable mineral reserves
|
$
|
4,651
|
|
|
$
|
4,630
|
|
VBPP
|
1,044
|
|
|
1,067
|
|
||
Mining development and other
|
4,335
|
|
|
3,821
|
|
||
Buildings and infrastructure
|
4,334
|
|
|
3,811
|
|
||
Machinery and equipment
|
10,379
|
|
|
9,472
|
|
||
Mobile equipment
|
3,903
|
|
|
3,447
|
|
||
Construction in progress
|
5,603
|
|
|
3,402
|
|
||
Property, plant, equipment and mining development costs
|
34,249
|
|
|
29,650
|
|
||
Accumulated depreciation, depletion and amortization
|
(10,207
|
)
|
|
(8,651
|
)
|
||
Property, plant, equipment and mining development costs, net
|
$
|
24,042
|
|
|
$
|
20,999
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Legally restricted funds
a
|
$
|
392
|
|
|
$
|
163
|
|
Intangible assets
b
|
380
|
|
|
334
|
|
||
Disputed tax assessments
c
|
327
|
|
|
177
|
|
||
Investments:
|
|
|
|
||||
MMR
d
|
—
|
|
|
446
|
|
||
PT Smelting
e
|
71
|
|
|
89
|
|
||
Available-for-sale securities
|
44
|
|
|
46
|
|
||
Other
|
63
|
|
|
51
|
|
||
Long-term receivable for income tax refunds
|
77
|
|
|
317
|
|
||
Loan to a DRC public electric utility
|
152
|
|
|
149
|
|
||
Debt issue costs
|
107
|
|
|
26
|
|
||
Loan to Gécamines (related party)
|
34
|
|
|
32
|
|
||
Deferred tax assets
|
2
|
|
|
220
|
|
||
Other
|
149
|
|
|
139
|
|
||
Total other assets
|
$
|
1,798
|
|
|
$
|
2,189
|
|
a.
|
Included
$210 million
(time deposit that secures a bank guarantee) associated with the Cerro Verde royalty dispute and
$158 million
for AROs related to properties in New Mexico at
December 31, 2013
, and
$161 million
for AROs related to properties in New Mexico at
December 31, 2012
(refer to Note
12
for further discussion).
|
b.
|
Intangible assets were net of accumulated amortization totaling
$57 million
at
December 31, 2013
, and
$71 million
at
December 31, 2012
.
|
c.
|
Included Indonesian disputed tax assessments of
$255 million
at December 31, 2013, and
$148 million
at December 31, 2012 (refer to Note 12 for further discussion).
|
d.
|
In December 2010, FCX purchased
500,000
shares of MMR’s
5.75%
Convertible Perpetual Preferred Stock for an aggregate purchase price of
$500 million
, which was recorded at cost and subsequently reduced by dividends. On June 3, 2013, FCX acquired MMR (refer to Note 2 for discussion of the acquisition of MMR).
|
e.
|
FCX's
25 percent
ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling
$58 million
at
December 31, 2013
, and
$39 million
at
December 31, 2012
.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Accounts payable
|
$
|
2,144
|
|
|
$
|
1,568
|
|
Salaries, wages and other compensation
|
352
|
|
|
287
|
|
||
Commodity derivative contracts
|
205
|
|
|
11
|
|
||
Accrued interest
a
|
210
|
|
|
35
|
|
||
Oil and gas royalty and revenue payable
|
169
|
|
|
—
|
|
||
Pension, postretirement, postemployment and other employee benefits
b
|
161
|
|
|
140
|
|
||
Other accrued taxes
|
142
|
|
|
92
|
|
||
Deferred revenue
|
115
|
|
|
94
|
|
||
Rio Tinto's share of joint venture cash flows
|
33
|
|
|
4
|
|
||
Other
|
169
|
|
|
93
|
|
||
Total accounts payable and accrued liabilities
|
$
|
3,700
|
|
|
$
|
2,324
|
|
a.
|
Third-party interest paid, net of capitalized interest, was
$397 million
in
2013
,
$111 million
in
2012
and
$225 million
in
2011
.
|
b.
|
Refer to Note
9
for long-term portion.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Lines of credit
|
—
|
|
|
—
|
|
||
Bank term loan
|
4,000
|
|
|
—
|
|
||
Senior notes and debentures:
|
|
|
|
||||
Issued by FCX:
|
|
|
|
||||
1.40% Senior Notes due 2015
|
500
|
|
|
500
|
|
||
2.15% Senior Notes due 2017
|
500
|
|
|
500
|
|
||
2.375% Senior Notes due 2018
|
1,500
|
|
|
—
|
|
||
3.100% Senior Notes due 2020
|
999
|
|
|
—
|
|
||
3.55% Senior Notes due 2022
|
1,996
|
|
|
1,995
|
|
||
3.875% Senior Notes due 2023
|
1,999
|
|
|
—
|
|
||
5.450% Senior Notes due 2043
|
1,991
|
|
|
—
|
|
||
Issued by FM O&G:
|
|
|
|
||||
6.125% Senior Notes due 2019
|
817
|
|
|
—
|
|
||
8.625% Senior Notes due 2019
|
447
|
|
|
—
|
|
||
7.625% Senior Notes due 2020
|
336
|
|
|
—
|
|
||
6½% Senior Notes due 2020
|
1,647
|
|
|
—
|
|
||
6.625% Senior Notes due 2021
|
659
|
|
|
—
|
|
||
6.75% Senior Notes due 2022
|
1,111
|
|
|
—
|
|
||
6⅞% Senior Notes due 2023
|
1,686
|
|
|
—
|
|
||
Issued by FMC:
|
|
|
|
||||
7
1
/
8
% Debentures due 2027
|
115
|
|
|
115
|
|
||
9½% Senior Notes due 2031
|
130
|
|
|
130
|
|
||
6
1
/
8
% Senior Notes due 2034
|
115
|
|
|
115
|
|
||
Other (including equipment capital leases and short-term borrowings)
|
158
|
|
|
172
|
|
||
Total debt
|
20,706
|
|
|
3,527
|
|
||
Less current portion of debt
|
(312
|
)
|
|
(2
|
)
|
||
Long-term debt
|
$
|
20,394
|
|
|
$
|
3,525
|
|
Debt Instrument
|
|
Date
|
6.125% Senior Notes due 2019
|
|
June 15, 2016
|
8.625% Senior Notes due 2019
|
|
October 15, 2014
|
7.625% Senior Notes due 2020
|
|
April 1, 2015
|
6½% Senior Notes due 2020
|
|
November 15, 2015
|
6.625%% Senior Notes due 2021
|
|
May 1, 2016
|
6.75% Senior Notes due 2022
|
|
February 1, 2017
|
6⅞% Senior Notes due 2023
|
|
February 15, 2018
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Pension, postretirement, postemployment and other employment benefits
a
|
$
|
1,225
|
|
|
$
|
1,340
|
|
Commodity derivative contracts
|
115
|
|
|
—
|
|
||
Reserve for uncertain tax benefits
|
87
|
|
|
107
|
|
||
Other
|
263
|
|
|
197
|
|
||
Total other liabilities
|
$
|
1,690
|
|
|
$
|
1,644
|
|
a.
|
Refer to Note
7
for current portion.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Projected benefit obligation
|
$
|
2,180
|
|
|
$
|
2,247
|
|
Accumulated benefit obligation
|
1,933
|
|
|
2,031
|
|
||
Fair value of plan assets
|
1,490
|
|
|
1,443
|
|
|
FCX
|
|
PT-FI
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning
|
|
|
|
|
|
|
|
||||||||
of year
|
$
|
1,954
|
|
|
$
|
1,791
|
|
|
$
|
240
|
|
|
$
|
206
|
|
Service cost
|
30
|
|
|
27
|
|
|
20
|
|
|
17
|
|
||||
Interest cost
|
77
|
|
|
79
|
|
|
14
|
|
|
14
|
|
||||
Actuarial (gains) losses
|
(103
|
)
|
|
142
|
|
|
13
|
|
|
25
|
|
||||
Plan amendment
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||
Foreign exchange losses (gains)
|
1
|
|
|
1
|
|
|
(53
|
)
|
|
(13
|
)
|
||||
Benefits paid
|
(88
|
)
|
|
(86
|
)
|
|
(8
|
)
|
|
(9
|
)
|
||||
Benefit obligation at end of year
|
1,871
|
|
|
1,954
|
|
|
259
|
|
|
240
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at
|
|
|
|
|
|
|
|
||||||||
beginning of year
|
1,300
|
|
|
1,141
|
|
|
130
|
|
|
107
|
|
||||
Actual return on plan assets
|
112
|
|
|
140
|
|
|
(3
|
)
|
|
12
|
|
||||
Employer contributions
a
|
26
|
|
|
105
|
|
|
35
|
|
|
26
|
|
||||
Foreign exchange losses
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(6
|
)
|
||||
Benefits paid
|
(88
|
)
|
|
(86
|
)
|
|
(8
|
)
|
|
(9
|
)
|
||||
Fair value of plan assets at end
|
|
|
|
|
|
|
|
||||||||
of year
|
1,350
|
|
|
1,300
|
|
|
124
|
|
|
130
|
|
||||
Funded status
|
$
|
(521
|
)
|
|
$
|
(654
|
)
|
|
$
|
(135
|
)
|
|
$
|
(110
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
1,742
|
|
|
$
|
1,842
|
|
|
$
|
141
|
|
|
$
|
136
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average assumptions
|
|
|
|
|
|
|
|
||||||||
used to determine benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
5.00
|
%
|
|
4.10
|
%
|
|
9.00
|
%
|
|
6.25
|
%
|
||||
Rate of compensation increase
b
|
3.75
|
%
|
|
3.75
|
%
|
|
10.00
|
%
|
|
8.00
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification of
|
|
|
|
|
|
|
|
||||||||
funded status:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payable and
|
|
|
|
|
|
|
|
||||||||
accrued liabilities
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
Other liabilities
|
(525
|
)
|
|
(657
|
)
|
|
(135
|
)
|
|
(110
|
)
|
||||
Total
|
$
|
(521
|
)
|
|
$
|
(654
|
)
|
|
$
|
(135
|
)
|
|
$
|
(110
|
)
|
a.
|
Employer contributions for
2014
are expected to approximate
$5 million
for the FCX plans and
$22 million
for the PT-FI plan (based on a
December 31, 2013
, exchange rate of
12,128
Indonesian rupiah to one U.S. dollar).
|
b.
|
The rate of compensation increase shown for the PT-FI plan in 2013 related to non-staff employees (staff employees was 8 percent).
|
|
2013
|
|
2012
|
|
2011
|
||||||
Weighted-average assumptions:
a
|
|
|
|
|
|
||||||
Discount rate
|
4.10
|
%
|
|
4.60
|
%
|
|
5.40
|
%
|
|||
Expected return on plan assets
|
7.50
|
%
|
|
7.50
|
%
|
|
8.00
|
%
|
|||
Rate of compensation increase
|
3.75
|
%
|
|
3.75
|
%
|
|
3.75
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
30
|
|
|
$
|
27
|
|
|
$
|
24
|
|
Interest cost
|
77
|
|
|
79
|
|
|
83
|
|
|||
Expected return on plan assets
|
(95
|
)
|
|
(86
|
)
|
|
(86
|
)
|
|||
Amortization of prior service cost
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Amortization of net actuarial losses
|
38
|
|
|
33
|
|
|
19
|
|
|||
Net periodic benefit cost
|
$
|
50
|
|
|
$
|
52
|
|
|
$
|
39
|
|
a.
|
The assumptions shown relate only to the FMC plans.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Discount rate
|
6.25
|
%
|
|
7.00
|
%
|
|
8.50
|
%
|
|||
Expected return on plan assets
|
7.50
|
%
|
|
9.25
|
%
|
|
9.25
|
%
|
|||
Rate of compensation increase
|
8.00
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
13
|
|
Interest cost
|
14
|
|
|
14
|
|
|
11
|
|
|||
Expected return on plan assets
|
(10
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|||
Amortization of prior service cost
|
—
|
|
|
1
|
|
|
1
|
|
|||
Amortization of net actuarial loss
|
8
|
|
|
7
|
|
|
3
|
|
|||
Net periodic benefit cost
|
$
|
32
|
|
|
$
|
30
|
|
|
$
|
19
|
|
|
2013
|
|
2012
|
||||||||||||
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
||||||||
Prior service costs (credits)
|
$
|
32
|
|
|
$
|
17
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
Net actuarial loss
|
542
|
|
|
326
|
|
|
705
|
|
|
429
|
|
||||
|
$
|
574
|
|
|
$
|
343
|
|
|
$
|
703
|
|
|
$
|
428
|
|
|
Fair Value at December 31, 2013
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
$
|
623
|
|
|
$
|
—
|
|
|
$
|
623
|
|
|
$
|
—
|
|
U.S. small-cap equity
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Real estate property
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
U.S. real estate securities
|
40
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||
Fixed income debt securities
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Short-term investments
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Open-ended mutual funds:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Foreign bonds
|
51
|
|
|
51
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets bond
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
198
|
|
|
—
|
|
|
198
|
|
|
—
|
|
||||
Corporate bonds
|
52
|
|
|
—
|
|
|
52
|
|
|
—
|
|
||||
Private equity investments
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
||||
Other investments
|
29
|
|
|
1
|
|
|
28
|
|
|
—
|
|
||||
Total investments
|
1,346
|
|
|
$
|
215
|
|
|
$
|
1,041
|
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
|
18
|
|
|
|
|
|
|
|
|||||||
Payables
|
(14
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
1,350
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2012
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
$
|
481
|
|
|
$
|
—
|
|
|
$
|
481
|
|
|
$
|
—
|
|
U.S. real estate securities
|
61
|
|
|
—
|
|
|
61
|
|
|
—
|
|
||||
U.S. small-cap equity
|
52
|
|
|
—
|
|
|
52
|
|
|
—
|
|
||||
Real estate property
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||
Short-term investments
|
40
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||
Open-ended mutual funds:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Foreign bonds
|
54
|
|
|
54
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets bond
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
241
|
|
|
—
|
|
|
241
|
|
|
—
|
|
||||
Corporate bonds
|
82
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||
Private equity investments
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||
Other investments
|
33
|
|
|
1
|
|
|
32
|
|
|
—
|
|
||||
Total investments
|
1,307
|
|
|
$
|
232
|
|
|
$
|
989
|
|
|
$
|
86
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
|
5
|
|
|
|
|
|
|
|
|||||||
Payables
|
(12
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
1,300
|
|
|
|
|
|
|
|
|
Private
Equity Investments |
|
Real
Estate
Property
|
|
Total
|
||||||
Balance at January 1, 2012
|
$
|
50
|
|
|
$
|
35
|
|
|
$
|
85
|
|
Actual return on plan assets:
|
|
|
|
|
|
||||||
Realized gains
|
—
|
|
|
2
|
|
|
2
|
|
|||
Net unrealized (losses) gains related to
|
|
|
|
|
|
||||||
assets still held at the end of the year
|
(5
|
)
|
|
4
|
|
|
(1
|
)
|
|||
Purchases
|
4
|
|
|
—
|
|
|
4
|
|
|||
Settlements, net
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Balance at December 31, 2012
|
45
|
|
|
41
|
|
|
86
|
|
|||
Actual return on plan assets:
|
|
|
|
|
|
||||||
Realized gains
|
—
|
|
|
1
|
|
|
1
|
|
|||
Net unrealized (losses) gains related to
|
|
|
|
|
|
||||||
assets still held at the end of the year
|
(1
|
)
|
|
6
|
|
|
5
|
|
|||
Purchases
|
3
|
|
|
—
|
|
|
3
|
|
|||
Sales
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Settlements, net
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Balance at December 31, 2013
|
$
|
43
|
|
|
$
|
47
|
|
|
$
|
90
|
|
|
Fair Value at December 31, 2013
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Common stocks
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government bonds
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
62
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
62
|
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
124
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2012
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Common stocks
|
$
|
32
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government bonds
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
69
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
61
|
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
130
|
|
|
|
|
|
|
|
a.
|
Cash consisted primarily of short-term time deposits.
|
|
FCX
|
|
PT-FI
a
|
||||
2014
|
$
|
93
|
|
|
$
|
21
|
|
2015
|
147
|
|
|
12
|
|
||
2016
|
99
|
|
|
13
|
|
||
2017
|
102
|
|
|
18
|
|
||
2018
|
106
|
|
|
21
|
|
||
2019 through 2023
|
584
|
|
|
194
|
|
a.
|
Based on a
December 31, 2013
, exchange rate of
12,128
Indonesian rupiah to one U.S. dollar.
|
|
2013
|
|
2012
|
||||
Change in benefit obligation:
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
213
|
|
|
$
|
223
|
|
Service cost
|
1
|
|
|
1
|
|
||
Interest cost
|
7
|
|
|
9
|
|
||
Actuarial (gains) losses
|
(24
|
)
|
|
2
|
|
||
Plan amendments and acquisition
|
6
|
|
|
—
|
|
||
Benefits paid, net of employee and joint venture partner
|
|
|
|
||||
contributions, and Medicare Part D subsidy
|
(21
|
)
|
|
(22
|
)
|
||
Benefit obligation at end of year
|
182
|
|
|
213
|
|
||
|
|
|
|
||||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
||
Employer and joint venture partner contributions
|
23
|
|
|
25
|
|
||
Employee contributions
|
11
|
|
|
10
|
|
||
Benefits paid
|
(34
|
)
|
|
(35
|
)
|
||
Fair value of plan assets at end of year
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Funded status
|
$
|
(182
|
)
|
|
$
|
(213
|
)
|
|
|
|
|
||||
Discount rate assumption
|
4.30
|
%
|
|
3.50
|
%
|
||
|
|
|
|
||||
Balance sheet classification of funded status:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
(19
|
)
|
|
$
|
(21
|
)
|
Other liabilities
|
(163
|
)
|
|
(192
|
)
|
||
Total
|
$
|
(182
|
)
|
|
$
|
(213
|
)
|
|
Unrealized Losses on Securities
|
|
Translation Adjustment
|
|
Defined Benefit Plans
|
|
Deferred Tax Valuation Allowance
|
|
Total
|
||||||||||
Balance at January 1, 2011
|
$
|
(3
|
)
|
|
$
|
8
|
|
|
$
|
(269
|
)
|
|
$
|
(59
|
)
|
|
$
|
(323
|
)
|
Amounts arising during the period
a,b
|
(1
|
)
|
|
(2
|
)
|
|
(134
|
)
|
|
(20
|
)
|
|
(157
|
)
|
|||||
Amounts reclassified
c
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Balance at December 31, 2011
|
(4
|
)
|
|
6
|
|
|
(388
|
)
|
|
(79
|
)
|
|
(465
|
)
|
|||||
Amounts arising during the period
a,b
|
—
|
|
|
(1
|
)
|
|
(65
|
)
|
|
(1
|
)
|
|
(67
|
)
|
|||||
Amounts reclassified
c
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Balance at December 31, 2012
|
(4
|
)
|
|
5
|
|
|
(427
|
)
|
|
(80
|
)
|
|
(506
|
)
|
|||||
Amounts arising during the period
a,b
|
(1
|
)
|
|
—
|
|
|
67
|
|
|
—
|
|
|
66
|
|
|||||
Amounts reclassified
c
|
—
|
|
|
5
|
|
|
30
|
|
|
—
|
|
|
35
|
|
|||||
Balance at December 31, 2013
|
$
|
(5
|
)
|
|
$
|
10
|
|
|
$
|
(330
|
)
|
|
$
|
(80
|
)
|
|
$
|
(405
|
)
|
a.
|
Included net actuarial gains (losses), net of noncontrolling interest, totaling
$(215) million
for 2011,
$(103) million
for 2012 and
$137 million
for 2013. The year 2013 also included
$33 million
for prior service costs.
|
b.
|
Included tax benefits (provision) totaling
$81 million
for
2011
,
$39 million
for
2012
and
$(37) million
for
2013
.
|
c.
|
Included amortization primarily related to actuarial losses that were net of taxes of
$8 million
for
2011
,
$15 million
for
2012
and
$17 million
for
2013
.
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Selling, general and administrative expenses
|
|
$
|
145
|
|
|
$
|
77
|
|
|
$
|
90
|
|
Production and delivery
|
|
28
|
|
|
23
|
|
|
25
|
|
|||
Capitalized costs
|
|
13
|
|
|
—
|
|
|
—
|
|
|||
Total stock-based compensation
|
|
186
|
|
|
100
|
|
|
115
|
|
|||
Less: capitalized costs
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|||
Tax benefit and noncontrolling interests' shares
|
|
(66
|
)
|
|
(39
|
)
|
|
(46
|
)
|
|||
Impact on net income
|
|
$
|
107
|
|
|
$
|
61
|
|
|
$
|
69
|
|
|
Number of
Options and SARs
|
|
Weighted-
Average
Exercise Price
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
31,472,559
|
|
|
$
|
37.40
|
|
|
|
|
|
||
Conversion of MMR options
|
7,203,392
|
|
|
27.64
|
|
|
|
|
|
|||
Conversion of PXP SARs
|
2,374,601
|
|
|
27.34
|
|
|
|
|
|
|||
Granted
|
5,479,930
|
|
|
35.00
|
|
|
|
|
|
|||
Exercised
|
(976,220
|
)
|
|
18.77
|
|
|
|
|
|
|||
Expired/Forfeited
|
(423,601
|
)
|
|
41.83
|
|
|
|
|
|
|||
Balance at December 31
|
45,130,661
|
|
|
35.39
|
|
|
5.6
|
|
$
|
239
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and exercisable at December 31
|
31,748,346
|
|
|
$
|
33.40
|
|
|
4.7
|
|
$
|
210
|
|
|
2012
|
|
2011
|
||||||||||
|
Number of
Options and SARs
|
|
Weighted-
Average
Exercise
Price
|
|
Number of
Options and SARs
|
|
Weighted-
Average
Exercise
Price
|
||||||
Balance at January 1
|
27,967,145
|
|
|
$
|
34.90
|
|
|
26,930,444
|
|
|
$
|
30.22
|
|
Granted
|
5,050,500
|
|
|
46.32
|
|
|
4,230,500
|
|
|
55.43
|
|
||
Exercised
|
(1,300,273
|
)
|
|
16.68
|
|
|
(3,044,174
|
)
|
|
21.88
|
|
||
Expired/Forfeited
|
(244,813
|
)
|
|
45.23
|
|
|
(149,625
|
)
|
|
37.61
|
|
||
Balance at December 31
|
31,472,559
|
|
a
|
37.40
|
|
|
27,967,145
|
|
a
|
34.90
|
|
a.
|
Included
39,336
SARs at
December 31, 2012
, and
69,672
SARs at
December 31, 2011
.
|
|
Number of Stock-Settled RSUs
|
|
Weighted-Average Grant-Date Fair Value
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
889,698
|
|
|
$
|
44.35
|
|
|
|
|
|
||
Granted
|
2,492,600
|
|
|
34.84
|
|
|
|
|
|
|||
Conversion of PXP and MMR RSUs
|
1,252,185
|
|
|
31.05
|
|
|
|
|
|
|||
Vested
|
(356,275
|
)
|
|
41.96
|
|
|
|
|
|
|||
Forfeited
|
(22,732
|
)
|
|
31.92
|
|
|
|
|
|
|||
Balance at December 31
|
4,255,476
|
|
|
35.13
|
|
|
4.1
|
|
$
|
161
|
|
|
Number of Cash-Settled RSUs
|
|
Weighted-Average Grant-Date Fair Value
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Conversion of PXP RSUs
|
2,259,708
|
|
|
$
|
31.05
|
|
|
|
|
|
||
Granted
|
1,430
|
|
|
32.94
|
|
|
|
|
|
|||
Vested
|
(1,430
|
)
|
|
31.05
|
|
|
|
|
|
|||
Forfeited
|
(39,896
|
)
|
|
31.05
|
|
|
|
|
|
|||
Balance at December 31
|
2,219,812
|
|
|
31.05
|
|
|
1.9
|
|
$
|
84
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
FCX shares tendered to pay the exercise price
|
|
|
|
|
|
||||||
and/or the minimum required taxes
a
|
3,294,624
|
|
|
515,558
|
|
|
936,811
|
|
|||
Cash received from stock option exercises
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
48
|
|
Actual tax benefit realized for tax deductions
|
$
|
8
|
|
|
$
|
16
|
|
|
$
|
45
|
|
Amounts FCX paid for employee taxes
|
$
|
105
|
|
|
$
|
16
|
|
|
$
|
45
|
|
a.
|
Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender existing FCX shares to FCX to pay the exercise price and/or the minimum required taxes.
|
|
2013
|
|
2012
|
|
2011
|
||||||
United States
|
$
|
1,104
|
|
|
$
|
1,539
|
|
|
$
|
2,112
|
|
Foreign
|
3,809
|
|
|
3,948
|
|
|
6,706
|
|
|||
Total
|
$
|
4,913
|
|
|
$
|
5,487
|
|
|
$
|
8,818
|
|
|
2013
|
|
2012
|
|
2011
|
|
||||||
Current income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
$
|
203
|
|
|
$
|
238
|
|
|
$
|
394
|
|
|
State
|
9
|
|
|
7
|
|
|
21
|
|
|
|||
Foreign
|
1,081
|
|
|
1,002
|
|
|
1,934
|
|
|
|||
Total current
|
1,293
|
|
|
1,247
|
|
|
2,349
|
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred income taxes (benefits):
|
|
|
|
|
|
|
||||||
Federal
|
234
|
|
|
87
|
|
|
82
|
|
|
|||
State
|
(35
|
)
|
|
18
|
|
|
(19
|
)
|
|
|||
Foreign
|
346
|
|
|
363
|
|
|
622
|
|
|
|||
Total deferred
|
545
|
|
|
468
|
|
|
685
|
|
|
|||
|
|
|
|
|
|
|
||||||
Adjustments
|
(199
|
)
|
a
|
(205
|
)
|
b,c
|
53
|
|
d
|
|||
Federal operating loss carryforwards
|
(164
|
)
|
e
|
—
|
|
|
—
|
|
|
|||
Provision for income taxes
|
$
|
1,475
|
|
|
$
|
1,510
|
|
|
$
|
3,087
|
|
|
a.
|
As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of
$199 million
consisting of income tax benefits of
$190 million
associated with net reductions in FCX's valuation allowances,
$69 million
related to the release of the deferred tax liability on PXP's investment in MMR common stock and
$16 million
associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of
$76 million
associated with the write off of deferred tax assets related to environmental liabilities.
|
b.
|
In 2012, Sociedad Minera Cerro Verde S.A.A. (Cerro Verde) signed a new
15
-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from
30 percent
to
32 percent
, and FCX recognized additional deferred tax expense of
$29 million
.
|
c.
|
With the exception of TFM, FCX has not elected to permanently reinvest earnings from its foreign subsidiaries and has recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of
$234 million
was reversed and recognized as an income tax benefit in 2012.
|
d.
|
In September 2011, Peru enacted a new mining tax and royalty regime and also created a special mining burden that companies with stability agreements could elect to pay. Cerro Verde elected to pay this special mining burden during the remaining term of its 1998 stability agreement, which expired on
December 31, 2013
. As a result, Cerro Verde recognized additional tax expense of
$53 million
in 2011.
|
e.
|
Benefit from the use of federal operating loss carryforwards acquired as part of the oil and gas acquisitions.
|
|
2013
|
|
2012
|
|
2011
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
U.S. federal statutory tax rate
|
$
|
1,720
|
|
|
35
|
%
|
|
$
|
1,920
|
|
|
35
|
%
|
|
$
|
3,086
|
|
|
35
|
%
|
Foreign tax credit limitation
|
117
|
|
|
2
|
|
|
110
|
|
|
2
|
|
|
163
|
|
|
2
|
|
|||
Percentage depletion
|
(223
|
)
|
|
(5
|
)
|
|
(263
|
)
|
|
(5
|
)
|
|
(283
|
)
|
|
(3
|
)
|
|||
Withholding and other impacts on
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
foreign earnings
|
83
|
|
|
2
|
|
|
(221
|
)
|
b
|
(4
|
)
|
|
170
|
|
|
2
|
|
|||
Valuation allowance on minimum
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
tax credits
|
(190
|
)
|
a
|
(4
|
)
|
|
(9
|
)
|
|
—
|
|
|
(47
|
)
|
|
(1
|
)
|
|||
State income taxes
|
(43
|
)
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other items, net
|
11
|
|
a
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Provision for income taxes
|
$
|
1,475
|
|
|
30
|
%
|
|
$
|
1,510
|
|
|
28
|
%
|
|
$
|
3,087
|
|
|
35
|
%
|
a.
|
Included a net tax benefit of
$199 million
as a result of the oil and gas acquisitions.
|
b.
|
Included the reversal of Cerro Verde's deferred income tax liability of
$234 million
.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Deferred tax assets:
|
|
|
|
||||
Foreign tax credits
|
$
|
2,144
|
|
|
$
|
2,022
|
|
Accrued expenses
|
1,098
|
|
|
819
|
|
||
Minimum tax credits
|
603
|
|
|
474
|
|
||
Net operating loss carryforwards
|
925
|
|
|
343
|
|
||
Employee benefit plans
|
443
|
|
|
315
|
|
||
Other
|
557
|
|
|
374
|
|
||
Deferred tax assets
|
5,770
|
|
|
4,347
|
|
||
Valuation allowances
|
(2,487
|
)
|
|
(2,443
|
)
|
||
Net deferred tax assets
|
3,283
|
|
|
1,904
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant, equipment and mining development costs
|
(4,887
|
)
|
|
(4,462
|
)
|
||
Oil and gas properties
|
(4,708
|
)
|
|
—
|
|
||
Undistributed earnings
|
(936
|
)
|
|
(884
|
)
|
||
Other
|
(34
|
)
|
|
(70
|
)
|
||
Total deferred tax liabilities
|
(10,565
|
)
|
|
(5,416
|
)
|
||
Net deferred tax liabilities
|
$
|
(7,282
|
)
|
|
$
|
(3,512
|
)
|
|
Unrecognized
Tax Benefits
|
|
Interest
|
|
Penalties
|
||||||
Balance at January 1, 2012
|
$
|
146
|
|
|
$
|
34
|
|
|
$
|
—
|
|
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
17
|
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
24
|
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
3
|
|
|
—
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(37
|
)
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
—
|
|
|
*
|
|
|
*
|
|
|||
Settlements with tax authorities
|
(11
|
)
|
|
*
|
|
|
*
|
|
|||
Lapse of statute of limitations
|
(1
|
)
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
(6
|
)
|
|
—
|
|
|||
Balance at December 31, 2012
|
138
|
|
|
31
|
|
|
—
|
|
|||
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
18
|
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
14
|
|
|
*
|
|
|
*
|
|
|||
Acquisition of PXP
|
5
|
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
7
|
|
|
—
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(37
|
)
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
—
|
|
|
*
|
|
|
*
|
|
|||
Settlements with tax authorities
|
—
|
|
|
*
|
|
|
*
|
|
|||
Lapse of statute of limitations
|
(28
|
)
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
(17
|
)
|
|
—
|
|
|||
Balance at December 31, 2013
|
$
|
110
|
|
|
$
|
21
|
|
|
$
|
—
|
|
Jurisdiction
|
|
Years Subject to Examination
|
|
Additional Open Years
|
U.S. Federal
|
|
2007-2012
|
|
2013
|
Indonesia
|
|
2005-2008, 2011-2012
|
|
2009-2010, 2013
|
Peru
|
|
2009-2010
|
|
2011-2013
|
Chile
|
|
2011-2012
|
|
2013
|
Africa
|
|
2010-2012
|
|
2013
|
|
2013
|
|
2012
|
|
2011
|
||||||
Balance at beginning of year
|
$
|
1,222
|
|
|
$
|
1,453
|
|
|
$
|
1,422
|
|
Accretion expense
a
|
79
|
|
|
80
|
|
|
88
|
|
|||
Additions
|
73
|
|
|
70
|
|
|
132
|
|
|||
Reductions
b
|
(77
|
)
|
|
(182
|
)
|
|
(68
|
)
|
|||
Spending
|
(130
|
)
|
|
(199
|
)
|
|
(121
|
)
|
|||
Balance at end of year
|
1,167
|
|
|
1,222
|
|
|
1,453
|
|
|||
Less current portion
|
(121
|
)
|
|
(186
|
)
|
|
(205
|
)
|
|||
Long-term portion
|
$
|
1,046
|
|
|
$
|
1,036
|
|
|
$
|
1,248
|
|
a.
|
Represented accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis.
|
b.
|
Reductions primarily reflected revisions for changes in the anticipated scope and timing of environmental remediation projects and the noncash adjustments of environmental matters.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Balance at beginning of year
|
$
|
1,146
|
|
|
$
|
921
|
|
|
$
|
856
|
|
Liabilities assumed in the acquisitions of PXP and MMR
a
|
1,028
|
|
|
—
|
|
|
—
|
|
|||
Liabilities incurred
|
45
|
|
|
6
|
|
|
9
|
|
|||
Settlements and revisions to cash flow estimates, net
|
123
|
|
|
211
|
|
|
48
|
|
|||
Accretion expense
|
95
|
|
|
55
|
|
|
58
|
|
|||
Spending
|
(107
|
)
|
|
(47
|
)
|
|
(49
|
)
|
|||
Other
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance at end of year
|
2,328
|
|
|
1,146
|
|
|
921
|
|
|||
Less: current portion
|
(115
|
)
|
|
(55
|
)
|
|
(31
|
)
|
|||
Long-term portion
|
$
|
2,213
|
|
|
$
|
1,091
|
|
|
$
|
890
|
|
a.
|
The fair value of AROs assumed in the acquisitions of PXP and MMR (
$741 million
and
$287 million
, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of
2.5 percent
, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from
1.3 percent
to
6.3 percent
.
|
Date of Assessment
|
|
Tax Year
|
|
Tax Assessment
|
|
Interest Assessment
|
|
Total
|
||||||
October 2010
|
|
2005
|
|
$
|
103
|
|
|
$
|
49
|
|
|
$
|
152
|
|
November 2011
|
|
2006
|
|
22
|
|
|
10
|
|
|
32
|
|
|||
March 2012
|
|
2007
|
|
91
|
|
|
44
|
|
|
135
|
|
|||
First-quarter 2013
|
|
2008
|
|
62
|
|
|
52
|
|
|
114
|
|
|||
Second-quarter 2013
|
|
2011
|
|
56
|
|
|
13
|
|
|
69
|
|
|||
Total
|
|
|
|
$
|
334
|
|
|
$
|
168
|
|
|
$
|
502
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Unrealized gains (losses):
|
|
|
|
|
|
||||||
Derivative financial instruments
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
(28
|
)
|
Hedged item
|
(1
|
)
|
|
(15
|
)
|
|
28
|
|
|||
Realized gains (losses):
|
|
|
|
|
|
||||||
Matured derivative financial instruments
|
(17
|
)
|
|
(2
|
)
|
|
(28
|
)
|
|
Open
|
|
Average Price
Per Unit
|
|
Maturities
|
|||||||
|
Positions
|
|
Contract
|
|
Market
|
|
Through
|
|||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
673
|
|
|
$
|
3.24
|
|
|
$
|
3.34
|
|
|
June 2014
|
Gold (thousands of ounces)
|
254
|
|
|
1,245
|
|
|
1,202
|
|
|
April 2014
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
60
|
|
|
3.26
|
|
|
3.34
|
|
|
April 2014
|
|
|
|
|
|
|
Average Price (per barrel)
a
|
|
|
|
|
|||||||||
Period
|
|
Instrument Type
|
|
Daily Volumes (thousand barrels)
|
|
Floor
|
|
Floor Limit
|
|
Average Deferred Premium
(per barrel)
|
|
Index
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Jan - Dec
|
|
Put options
b
|
|
75
|
|
|
$
|
90
|
|
|
$
|
70
|
|
|
$
|
5.74
|
|
|
Brent
|
Jan - Dec
|
|
Put options
b
|
|
30
|
|
|
95
|
|
|
75
|
|
|
6.09
|
|
|
Brent
|
|||
Jan - Dec
|
|
Put options
b
|
|
5
|
|
|
100
|
|
|
80
|
|
|
7.11
|
|
|
Brent
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Jan - Dec
|
|
Put options
b
|
|
84
|
|
|
90
|
|
|
70
|
|
|
6.89
|
|
|
Brent
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
The average strike prices do not reflect any premiums to purchase the put options.
|
b.
|
If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of
$20
per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received.
|
|
2013
|
|
2012
|
|
2011
|
|||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|||||||
sales contracts
a
|
$
|
(136
|
)
|
|
$
|
77
|
|
|
$
|
(519
|
)
|
|
Crude oil options
a
|
(344
|
)
|
|
—
|
|
|
—
|
|
||||
Natural gas swaps
a
|
10
|
|
|
—
|
|
—
|
|
—
|
|
|||
Copper forward contracts
b
|
3
|
|
|
15
|
|
|
(2
|
)
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Commodity Derivative Assets:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
a
|
$
|
6
|
|
|
$
|
5
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
||
sales/purchase contracts
|
63
|
|
|
36
|
|
||
Total derivative assets
|
$
|
69
|
|
|
$
|
41
|
|
Commodity Derivative Liabilities:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
a
|
$
|
—
|
|
|
$
|
1
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
||||
sales/purchase contracts
|
16
|
|
|
27
|
|
||
Crude oil options
b
|
309
|
|
|
—
|
|
||
Natural gas swaps
|
4
|
|
|
—
|
|
||
Copper forward contracts
|
1
|
|
|
—
|
|
||
Total derivative liabilities
|
$
|
330
|
|
|
$
|
28
|
|
a.
|
FCX had paid
$1 million
to brokers at
December 31, 2013
, and
$7 million
at
December 31, 2012
, for margin requirements (recorded in other current assets).
|
b.
|
Included
$444 million
for deferred premiums and accrued interest at
December 31, 2013
.
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
63
|
|
|
$
|
36
|
|
|
$
|
16
|
|
|
$
|
27
|
|
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
313
|
|
|
—
|
|
||||
Copper derivatives
|
|
6
|
|
|
5
|
|
|
1
|
|
|
1
|
|
||||
|
|
69
|
|
|
41
|
|
|
330
|
|
|
28
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
10
|
|
|
8
|
|
|
10
|
|
|
8
|
|
||||
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
10
|
|
|
8
|
|
|
10
|
|
|
8
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
53
|
|
|
28
|
|
|
6
|
|
|
19
|
|
||||
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
313
|
|
|
—
|
|
||||
Copper derivatives
|
|
6
|
|
|
5
|
|
|
1
|
|
|
1
|
|
||||
|
|
$
|
59
|
|
|
$
|
33
|
|
|
$
|
320
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
53
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Other current assets
|
|
6
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
—
|
|
|
4
|
|
|
205
|
|
|
11
|
|
||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
115
|
|
|
—
|
|
||||
|
|
$
|
59
|
|
|
$
|
33
|
|
|
$
|
320
|
|
|
$
|
20
|
|
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).
|
|
At December 31, 2013
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities (current and long-term):
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
Money market funds
|
18
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
5
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
44
|
|
|
44
|
|
|
23
|
|
|
21
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds (long-term):
a,b,c
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
48
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
34
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Government bonds and notes
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Money market funds
|
28
|
|
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|||||
Asset-backed securities
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
182
|
|
|
182
|
|
|
28
|
|
|
154
|
|
|
—
|
|
Derivatives:
a,d
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross asset position
|
63
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
6
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
69
|
|
|
69
|
|
|
5
|
|
|
64
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
295
|
|
|
$
|
56
|
|
|
$
|
239
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross liability position
d
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Crude oil options
d
|
309
|
|
|
309
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Natural gas swaps
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
Copper forward contracts
d
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Plains Offshore warrants
e
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
332
|
|
|
332
|
|
|
1
|
|
|
20
|
|
|
311
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
20,706
|
|
|
20,487
|
|
|
—
|
|
|
20,487
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
20,819
|
|
|
$
|
1
|
|
|
$
|
20,507
|
|
|
$
|
311
|
|
|
At December 31, 2012
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities (current and long-term):
|
|
|
|
|
|
|
|
|
|
||||||||||
MMR investment
g
|
$
|
446
|
|
|
$
|
539
|
|
|
$
|
—
|
|
|
$
|
539
|
|
|
$
|
—
|
|
U.S. core fixed income fund
a,b
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|||||
Money market funds
a,b
|
16
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
a,b
|
8
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
492
|
|
|
585
|
|
|
24
|
|
|
561
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds (long-term):
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
50
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
36
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|||||
Corporate bonds
|
30
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|||||
Government bonds and notes
|
24
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
Asset-backed securities
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||
Money market funds
|
7
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
163
|
|
|
163
|
|
|
7
|
|
|
156
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,d
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
contracts in a gross asset position
|
36
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
5
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
41
|
|
|
41
|
|
|
5
|
|
|
36
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
789
|
|
|
$
|
36
|
|
|
$
|
753
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives:
a,d
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
contracts in a gross liability position
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
28
|
|
|
28
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
3,527
|
|
|
3,589
|
|
|
—
|
|
|
3,589
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
3,617
|
|
|
$
|
1
|
|
|
$
|
3,616
|
|
|
$
|
—
|
|
a.
|
Recorded at fair value.
|
b.
|
Current portion included in other current assets and long-term portion included in other assets.
|
c.
|
Legally restricted funds excluded
$210 million
of time deposits (which approximated fair value) at
December 31, 2013
, associated with the Cerro Verde royalty dispute (refer to Note
12
for further discussion).
|
d.
|
Refer to Note
14
for further discussion and balance sheet classifications. At
December 31, 2013
, crude oil options are net of
$444 million
for deferred premiums and accrued interest.
|
e.
|
Included in other liabilities. Refer to Note
2
for further discussion.
|
f.
|
Recorded at cost except for debt assumed in the PXP and FMC acquisitions, which were recorded at fair value at the respective acquisition dates.
|
g.
|
Recorded at cost and included in other assets.
|
|
Crude Oil
|
|
Plains Offshore
|
|
||||
|
Options
|
|
Warrants
|
|
||||
Fair value at December 31, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
Derivative financial instruments assumed in the PXP acquisition
|
(83
|
)
|
|
(10
|
)
|
|
||
Net realized losses
|
(38
|
)
|
a
|
—
|
|
|
||
Net unrealized (losses) gains included in earnings related to
assets and liabilities still held at the end of the period
|
(230
|
)
|
b
|
8
|
|
c
|
||
Settlement payments
|
42
|
|
|
—
|
|
|
||
Fair value at December 31, 2013
|
$
|
(309
|
)
|
|
$
|
(2
|
)
|
|
a.
|
Included net realized losses of
$37 million
recorded in revenues and
$1 million
of interest expense associated with the deferred premiums for the seven month period from June 1, 2013, to December 31, 2013.
|
b.
|
Included unrealized losses of
$228 million
recorded in revenues and
$2 million
of interest expense associated with the deferred premiums.
|
c.
|
Recorded in other (expense) income, net.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Refined copper products
|
$
|
7,466
|
|
|
$
|
9,699
|
|
|
$
|
10,297
|
|
Copper in concentrates
a
|
7,040
|
|
|
4,589
|
|
|
5,938
|
|
|||
Gold
|
1,656
|
|
|
1,741
|
|
|
2,429
|
|
|||
Molybdenum
|
1,110
|
|
|
1,187
|
|
|
1,348
|
|
|||
Oil
|
2,310
|
|
|
—
|
|
|
—
|
|
|||
Other
|
1,339
|
|
|
794
|
|
|
868
|
|
|||
Total
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
$
|
20,880
|
|
a.
|
Amounts are net of treatment and refining charges totaling
$400 million
for
2013
,
$311 million
for
2012
and
$362 million
for
2011
.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Revenues:
a
|
|
|
|
|
|
||||||
United States
|
$
|
9,418
|
|
|
$
|
6,285
|
|
|
$
|
7,176
|
|
Japan
|
2,141
|
|
|
2,181
|
|
|
2,501
|
|
|||
Indonesia
|
1,651
|
|
|
2,054
|
|
|
2,266
|
|
|||
Spain
|
1,223
|
|
|
1,581
|
|
|
1,643
|
|
|||
Switzerland
|
1,098
|
|
|
731
|
|
|
1,219
|
|
|||
China
|
1,078
|
|
|
579
|
|
|
942
|
|
|||
Chile
|
754
|
|
|
704
|
|
|
741
|
|
|||
Korea
|
297
|
|
|
525
|
|
|
561
|
|
|||
Other
|
3,261
|
|
|
3,370
|
|
|
3,831
|
|
|||
Total
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
$
|
20,880
|
|
a.
|
Revenues are attributed to countries based on the location of the customer.
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Long-lived assets:
a
|
|
|
|
|
|
||||||
United States
|
$
|
32,969
|
|
b
|
$
|
8,689
|
|
|
$
|
7,899
|
|
Indonesia
|
5,799
|
|
|
5,127
|
|
|
4,469
|
|
|||
Democratic Republic of Congo
|
3,994
|
|
|
3,926
|
|
|
3,497
|
|
|||
Peru
|
5,181
|
|
|
3,933
|
|
|
3,265
|
|
|||
Chile
|
2,699
|
|
|
2,587
|
|
|
2,242
|
|
|||
Other
|
562
|
|
|
327
|
|
|
325
|
|
|||
Total
|
$
|
51,204
|
|
|
$
|
24,589
|
|
|
$
|
21,697
|
|
a.
|
Long-lived assets exclude deferred tax assets, intangible assets and goodwill.
|
b.
|
Increased primarily because of the PXP and MMR acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
(In millions)
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Candel-
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
aria
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
244
|
|
|
$
|
326
|
|
|
$
|
570
|
|
|
$
|
1,473
|
|
|
$
|
1,155
|
|
|
$
|
1,224
|
|
|
$
|
3,852
|
|
|
$
|
3,751
|
|
a
|
$
|
1,590
|
|
|
$
|
—
|
|
|
$
|
4,995
|
|
|
$
|
2,027
|
|
|
$
|
1,516
|
|
b
|
$
|
18,301
|
|
|
$
|
2,616
|
|
c
|
$
|
4
|
|
|
$
|
20,921
|
|
Intersegment
|
1,673
|
|
|
2,940
|
|
|
4,613
|
|
|
360
|
|
|
273
|
|
|
—
|
|
|
633
|
|
|
336
|
|
|
47
|
|
|
522
|
|
|
27
|
|
|
14
|
|
|
(6,192
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
1,233
|
|
|
2,033
|
|
|
3,266
|
|
|
781
|
|
|
700
|
|
|
588
|
|
|
2,069
|
|
|
2,309
|
|
|
754
|
|
|
317
|
|
|
4,990
|
|
|
2,054
|
|
|
(4,608
|
)
|
|
11,151
|
|
|
682
|
|
|
7
|
|
|
11,840
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
133
|
|
|
269
|
|
|
402
|
|
|
152
|
|
|
69
|
|
|
125
|
|
|
346
|
|
|
247
|
|
|
246
|
|
|
82
|
|
|
9
|
|
|
42
|
|
|
48
|
|
|
1,422
|
|
|
1,364
|
|
|
11
|
|
|
2,797
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
3
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
7
|
|
|
110
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
29
|
|
|
183
|
|
|
120
|
|
|
354
|
|
|
657
|
|
|||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|
199
|
|
|
—
|
|
|
11
|
|
|
210
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|||||||||||||||||
Operating income (loss)
|
549
|
|
|
957
|
|
|
1,506
|
|
|
897
|
|
|
657
|
|
|
509
|
|
|
2,063
|
|
|
1,420
|
|
|
625
|
|
|
123
|
|
|
23
|
|
|
(75
|
)
|
d
|
(405
|
)
|
|
5,280
|
|
|
450
|
|
|
(379
|
)
|
|
5,351
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
80
|
|
|
117
|
|
|
181
|
|
|
220
|
|
|
518
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
316
|
|
|
236
|
|
|
168
|
|
|
720
|
|
|
603
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,454
|
|
|
—
|
|
|
21
|
|
e
|
1,475
|
|
|||||||||||||||||
Total assets at December 31, 2013
|
3,110
|
|
|
5,810
|
|
|
8,920
|
|
|
6,584
|
|
|
1,545
|
|
|
2,451
|
|
|
10,580
|
|
|
7,437
|
|
|
4,849
|
|
|
2,107
|
|
|
239
|
|
|
1,039
|
|
|
1,003
|
|
|
36,174
|
|
|
26,252
|
|
|
1,047
|
|
|
63,473
|
|
|||||||||||||||||
Capital expenditures
|
737
|
|
|
329
|
|
|
1,066
|
|
|
960
|
|
|
110
|
|
|
75
|
|
|
1,145
|
|
|
1,030
|
|
|
205
|
|
|
164
|
|
|
4
|
|
|
67
|
|
|
113
|
|
|
3,794
|
|
|
1,436
|
|
|
56
|
|
|
5,286
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
156
|
|
|
$
|
46
|
|
|
$
|
202
|
|
|
$
|
1,767
|
|
|
$
|
797
|
|
|
$
|
1,346
|
|
|
$
|
3,910
|
|
|
$
|
3,611
|
|
a
|
$
|
1,349
|
|
|
$
|
—
|
|
|
$
|
4,989
|
|
|
$
|
2,683
|
|
|
$
|
1,259
|
|
b
|
$
|
18,003
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
18,010
|
|
Intersegment
|
1,846
|
|
|
3,438
|
|
|
5,284
|
|
|
388
|
|
|
430
|
|
|
—
|
|
|
818
|
|
|
310
|
|
|
10
|
|
|
529
|
|
|
27
|
|
|
26
|
|
|
(7,004
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
1,076
|
|
|
1,857
|
|
|
2,933
|
|
|
813
|
|
|
702
|
|
|
599
|
|
|
2,114
|
|
|
2,349
|
|
|
615
|
|
|
320
|
|
|
4,993
|
|
|
2,640
|
|
|
(5,585
|
)
|
|
10,379
|
|
|
—
|
|
|
3
|
|
|
10,382
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
122
|
|
|
238
|
|
|
360
|
|
|
139
|
|
|
32
|
|
|
116
|
|
|
287
|
|
|
212
|
|
|
176
|
|
|
59
|
|
|
9
|
|
|
42
|
|
|
27
|
|
|
1,172
|
|
|
—
|
|
|
7
|
|
|
1,179
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|
121
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
18
|
|
|
174
|
|
|
—
|
|
|
257
|
|
|
431
|
|
|||||||||||||||||
Mining exploration and research expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272
|
|
|
273
|
|
|
—
|
|
|
12
|
|
|
285
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
(11
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(19
|
)
|
|
—
|
|
|
(3
|
)
|
|
(22
|
)
|
|||||||||||||||||
Gain on insurance settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|||||||||||||||||
Operating income (loss)
|
812
|
|
|
1,392
|
|
|
2,204
|
|
|
1,200
|
|
|
492
|
|
|
629
|
|
|
2,321
|
|
|
1,298
|
|
|
562
|
|
|
150
|
|
|
14
|
|
|
8
|
|
|
(474
|
)
|
|
6,083
|
|
|
—
|
|
|
(269
|
)
|
|
5,814
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
81
|
|
|
107
|
|
|
—
|
|
|
79
|
|
|
186
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
228
|
|
f
|
141
|
|
|
188
|
|
|
557
|
|
|
497
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
|
—
|
|
|
344
|
|
|
1,510
|
|
|||||||||||||||||
Total assets at December 31, 2012
|
2,445
|
|
|
5,703
|
|
|
8,148
|
|
|
5,821
|
|
|
1,853
|
|
|
2,489
|
|
|
10,163
|
|
|
6,591
|
|
|
4,622
|
|
|
2,018
|
|
|
242
|
|
|
992
|
|
|
614
|
|
|
33,390
|
|
|
—
|
|
|
2,050
|
|
|
35,440
|
|
|||||||||||||||||
Capital expenditures
|
266
|
|
|
559
|
|
|
825
|
|
|
558
|
|
|
259
|
|
|
114
|
|
|
931
|
|
|
843
|
|
|
539
|
|
|
245
|
|
|
6
|
|
|
16
|
|
|
69
|
|
|
3,474
|
|
|
—
|
|
|
20
|
|
|
3,494
|
|
a.
|
Included PT-FI's sales to PT Smelting totaling
$1.7 billion
in 2013 and
$2.1 billion
in 2012.
|
b.
|
Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Included net charges of
$312 million
for unrealized and noncash realized losses on crude oil and natural gas derivative contracts that were assumed in connection with FCX's acquisition of PXP.
|
d.
|
Included
$50 million
for shutdown costs associated with Atlantic Copper's scheduled 68-day maintenance turnaround, which was completed in fourth-quarter 2013.
|
e.
|
Included
$199 million
of net benefits resulting from oil and gas acquisitions.
|
f.
|
Included a credit of
$234 million
for the reversal of a net deferred tax liability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
(In millions)
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Candel-
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
aria
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
418
|
|
|
$
|
176
|
|
|
$
|
594
|
|
|
$
|
2,115
|
|
|
$
|
1,265
|
|
|
$
|
1,192
|
|
|
$
|
4,572
|
|
|
$
|
4,504
|
|
a
|
$
|
1,282
|
|
|
$
|
—
|
|
|
$
|
5,523
|
|
|
$
|
2,969
|
|
|
$
|
1,428
|
|
b
|
$
|
20,872
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
20,880
|
|
Intersegment
|
1,697
|
|
|
3,338
|
|
|
5,035
|
|
|
417
|
|
|
269
|
|
|
—
|
|
|
686
|
|
|
542
|
|
|
7
|
|
|
595
|
|
|
26
|
|
|
15
|
|
|
(6,906
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
984
|
|
|
1,581
|
|
|
2,565
|
|
|
827
|
|
|
644
|
|
|
434
|
|
|
1,905
|
|
|
1,791
|
|
|
591
|
|
|
259
|
|
|
5,527
|
|
|
2,991
|
|
|
(5,728
|
)
|
|
9,901
|
|
|
—
|
|
|
(3
|
)
|
|
9,898
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
116
|
|
|
162
|
|
|
278
|
|
|
135
|
|
|
28
|
|
|
95
|
|
|
258
|
|
|
215
|
|
|
140
|
|
|
45
|
|
|
8
|
|
|
40
|
|
|
31
|
|
|
1,015
|
|
|
—
|
|
|
7
|
|
|
1,022
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
2
|
|
|
7
|
|
|
124
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
19
|
|
|
184
|
|
|
—
|
|
|
231
|
|
|
415
|
|
|||||||||||||||||
Mining exploration and research expenses
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|
271
|
|
|
—
|
|
|
—
|
|
|
271
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
129
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|||||||||||||||||
Operating income (loss)
|
1,002
|
|
|
1,769
|
|
|
2,771
|
|
|
1,566
|
|
|
861
|
|
|
661
|
|
|
3,088
|
|
|
2,916
|
|
|
550
|
|
|
291
|
|
|
13
|
|
|
(69
|
)
|
|
(193
|
)
|
|
9,367
|
|
|
—
|
|
|
(227
|
)
|
|
9,140
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
2
|
|
|
2
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
8
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
87
|
|
|
121
|
|
|
—
|
|
|
191
|
|
|
312
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
553
|
|
|
310
|
|
|
212
|
|
|
1,075
|
|
|
1,256
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,451
|
|
|
—
|
|
|
636
|
|
|
3,087
|
|
|||||||||||||||||
Total assets at December 31, 2011
|
2,006
|
|
|
4,968
|
|
|
6,974
|
|
|
5,110
|
|
|
1,384
|
|
|
2,220
|
|
|
8,714
|
|
|
5,349
|
|
|
3,890
|
|
|
1,819
|
|
|
259
|
|
|
1,109
|
|
|
892
|
|
|
29,006
|
|
|
—
|
|
|
3,064
|
|
|
32,070
|
|
|||||||||||||||||
Capital expenditures
|
95
|
|
|
399
|
|
|
494
|
|
|
198
|
|
|
178
|
|
|
227
|
|
|
603
|
|
|
648
|
|
|
193
|
|
|
438
|
|
|
10
|
|
|
32
|
|
|
59
|
|
|
2,477
|
|
|
—
|
|
|
57
|
|
|
2,534
|
|
a.
|
Included PT-FI's sales to PT Smelting totaling
$2.3 billion
.
|
b.
|
Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
Accounts receivable
|
855
|
|
|
659
|
|
|
2,258
|
|
|
(1,210
|
)
|
|
2,562
|
|
|||||
Inventories
|
—
|
|
|
18
|
|
|
5,000
|
|
|
—
|
|
|
5,018
|
|
|||||
Other current assets
|
114
|
|
|
20
|
|
|
273
|
|
|
—
|
|
|
407
|
|
|||||
Total current assets
|
969
|
|
|
697
|
|
|
9,516
|
|
|
(1,210
|
)
|
|
9,972
|
|
|||||
Property, plant, equipment and mining development costs, net
|
27
|
|
|
43
|
|
|
23,972
|
|
|
—
|
|
|
24,042
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization
|
—
|
|
|
6,207
|
|
|
6,265
|
|
|
—
|
|
|
12,472
|
|
|||||
Not subject to amortization
|
—
|
|
|
2,649
|
|
|
8,238
|
|
|
—
|
|
|
10,887
|
|
|||||
Investment in consolidated subsidiaries
|
31,162
|
|
|
9,712
|
|
|
12,468
|
|
|
(53,342
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
437
|
|
|
1,479
|
|
|
—
|
|
|
1,916
|
|
|||||
Other assets
|
7,126
|
|
|
4,640
|
|
|
4,128
|
|
|
(11,710
|
)
|
|
4,184
|
|
|||||
Total assets
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,003
|
|
|
$
|
758
|
|
|
$
|
4,222
|
|
|
$
|
(1,210
|
)
|
|
$
|
4,773
|
|
Long-term debt, less current portion
|
13,184
|
|
|
7,199
|
|
|
8,056
|
|
|
(8,045
|
)
|
|
20,394
|
|
|||||
Deferred income taxes
|
4,137
|
|
a
|
—
|
|
|
3,273
|
|
|
—
|
|
|
7,410
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
301
|
|
|
2,958
|
|
|
—
|
|
|
3,259
|
|
|||||
Other liabilities
|
26
|
|
|
3,436
|
|
|
1,893
|
|
|
(3,665
|
)
|
|
1,690
|
|
|||||
Total liabilities
|
18,350
|
|
|
11,694
|
|
|
20,402
|
|
|
(12,920
|
)
|
|
37,526
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
716
|
|
|
—
|
|
|
716
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
20,934
|
|
|
12,691
|
|
|
41,100
|
|
|
(53,791
|
)
|
|
20,934
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,848
|
|
|
449
|
|
|
4,297
|
|
|||||
Total equity
|
20,934
|
|
|
12,691
|
|
|
44,948
|
|
|
(53,342
|
)
|
|
25,231
|
|
|||||
Total liabilities and equity
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,177
|
|
|
$
|
19,744
|
|
|
$
|
—
|
|
|
$
|
20,921
|
|
Cost of sales
|
5
|
|
|
976
|
|
|
13,656
|
|
|
—
|
|
|
14,637
|
|
|||||
Other operating costs and expenses
|
129
|
|
|
89
|
|
|
715
|
|
|
—
|
|
|
933
|
|
|||||
Total costs and expenses
|
134
|
|
|
1,065
|
|
|
14,371
|
|
|
—
|
|
|
15,570
|
|
|||||
Operating (loss) income
|
(134
|
)
|
|
112
|
|
|
5,373
|
|
|
—
|
|
|
5,351
|
|
|||||
Interest expense, net
|
(319
|
)
|
|
(129
|
)
|
|
(129
|
)
|
|
59
|
|
|
(518
|
)
|
|||||
Losses on early extinguishment of debt
|
(45
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(35
|
)
|
|||||
Gain on investment in MMR
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|||||
Other income (expense), net
|
61
|
|
|
—
|
|
|
(15
|
)
|
|
(59
|
)
|
|
(13
|
)
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
(309
|
)
|
|
(17
|
)
|
|
5,239
|
|
|
—
|
|
|
4,913
|
|
|||||
Benefit from (provision for) income taxes
|
81
|
|
|
17
|
|
|
(1,573
|
)
|
|
—
|
|
|
(1,475
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
2,886
|
|
|
281
|
|
|
268
|
|
|
(3,432
|
)
|
|
3
|
|
|||||
Net income (loss)
|
2,658
|
|
|
281
|
|
|
3,934
|
|
|
(3,432
|
)
|
|
3,441
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(706
|
)
|
|
(77
|
)
|
|
(783
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,228
|
|
|
$
|
(3,509
|
)
|
|
$
|
2,658
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
|||||
Total comprehensive income (loss)
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,329
|
|
|
$
|
(3,509
|
)
|
|
$
|
2,759
|
|
|
|
|
|
|
|
|
|
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,934
|
|
|
$
|
(3,432
|
)
|
|
$
|
3,441
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
4
|
|
|
616
|
|
|
2,177
|
|
|
—
|
|
|
2,797
|
|
|||||
Net losses on crude oil and natural gas derivative contracts
|
—
|
|
|
334
|
|
|
—
|
|
|
—
|
|
|
334
|
|
|||||
Gain on investment in MMR
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|||||
Equity in earnings of consolidated subsidiaries
|
(2,886
|
)
|
|
(281
|
)
|
|
(265
|
)
|
|
3,432
|
|
|
—
|
|
|||||
Other, net
|
8
|
|
|
(14
|
)
|
|
78
|
|
|
—
|
|
|
72
|
|
|||||
(Increases) decreases in working capital and changes in other tax payments, excluding amounts from the acquisitions
|
272
|
|
|
735
|
|
|
(1,384
|
)
|
|
—
|
|
|
(377
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(72
|
)
|
|
1,671
|
|
|
4,540
|
|
|
—
|
|
|
6,139
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(894
|
)
|
|
(4,392
|
)
|
|
—
|
|
|
(5,286
|
)
|
|||||
Acquisitions, net of cash acquired
|
(5,437
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(5,441
|
)
|
|||||
Intercompany loans
|
834
|
|
|
—
|
|
|
(162
|
)
|
|
(672
|
)
|
|
—
|
|
|||||
Distributions from consolidated subsidiary
|
629
|
|
|
—
|
|
|
—
|
|
|
(629
|
)
|
|
—
|
|
|||||
Other, net
|
15
|
|
|
30
|
|
|
(226
|
)
|
|
—
|
|
|
(181
|
)
|
|||||
Net cash used in investing activities
|
(3,959
|
)
|
|
(864
|
)
|
|
(4,784
|
)
|
|
(1,301
|
)
|
|
(10,908
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
11,260
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
11,501
|
|
|||||
Repayments of debt and redemption of MMR preferred stock
|
(4,737
|
)
|
|
(416
|
)
|
|
(551
|
)
|
|
—
|
|
|
(5,704
|
)
|
|||||
Intercompany loans
|
—
|
|
|
(391
|
)
|
|
(281
|
)
|
|
672
|
|
|
—
|
|
|||||
Cash dividends and distributions paid
|
(2,281
|
)
|
|
—
|
|
|
(885
|
)
|
|
629
|
|
|
(2,537
|
)
|
|||||
Other, net
|
(211
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(211
|
)
|
|||||
Net cash provided by (used in) financing activities
|
4,031
|
|
|
(807
|
)
|
|
(1,476
|
)
|
|
1,301
|
|
|
3,049
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(1,720
|
)
|
|
—
|
|
|
(1,720
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
3,705
|
|
|
—
|
|
|
3,705
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Year
|
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
4,583
|
|
|
$
|
4,288
|
|
a
|
$
|
6,165
|
|
a
|
$
|
5,885
|
|
a
|
$
|
20,921
|
|
a
|
Operating income
|
1,355
|
|
b
|
639
|
|
b
|
1,707
|
|
b
|
1,650
|
|
b,c
|
5,351
|
|
b,c
|
|||||
Net income
|
824
|
|
|
610
|
|
e
|
1,048
|
|
|
959
|
|
e
|
3,441
|
|
e
|
|||||
Net income attributable to noncontrolling
|
|
|
|
|
|
|
|
|
|
|
||||||||||
interests
|
176
|
|
|
128
|
|
|
227
|
|
|
252
|
|
|
783
|
|
|
|||||
Net income attributable to FCX common
|
|
|
|
|
|
|
|
|
|
|
||||||||||
stockholders
|
648
|
|
b,d
|
482
|
|
a,b,d,e,f
|
821
|
|
a,b
|
707
|
|
a,b,c,d,e
|
2,658
|
|
a,b,c,d,e,f
|
|||||
Basic net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.68
|
|
|
0.49
|
|
|
0.79
|
|
|
0.68
|
|
|
2.65
|
|
|
|||||
Diluted net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.68
|
|
b,d
|
0.49
|
|
a,b,d,e,f
|
0.79
|
|
a,b
|
0.68
|
|
a,b,c,d,e
|
2.64
|
|
a,b,c,d,e,f
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
4,605
|
|
|
$
|
4,475
|
|
|
$
|
4,417
|
|
|
$
|
4,513
|
|
|
$
|
18,010
|
|
|
Operating income
|
1,734
|
|
|
1,311
|
|
|
1,411
|
|
|
1,358
|
|
g,h
|
5,814
|
|
g,h
|
|||||
Net income
|
1,001
|
|
|
894
|
|
|
1,140
|
|
i
|
945
|
|
|
3,980
|
|
i
|
|||||
Net income attributable to noncontrolling
|
|
|
|
|
|
|
|
|
|
|
||||||||||
interests
|
237
|
|
|
184
|
|
|
316
|
|
i
|
202
|
|
|
939
|
|
i
|
|||||
Net income attributable to FCX common
|
|
|
|
|
|
|
|
|
|
|
||||||||||
stockholders
|
764
|
|
j
|
710
|
|
|
824
|
|
i
|
743
|
|
g,h
|
3,041
|
|
g,h,i,j
|
|||||
Basic net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.81
|
|
|
0.75
|
|
|
0.87
|
|
|
0.78
|
|
|
3.20
|
|
|
|||||
Diluted net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.80
|
|
j
|
0.74
|
|
|
0.86
|
|
i
|
0.78
|
|
g,h
|
3.19
|
|
g,h,i,j
|
a.
|
Included charges of
$36 million
(
$23 million
to net income attributable to FCX common stockholders or
$0.02
per share) in the second quarter,
$158 million
(
$98 million
to net income attributable to FCX common stockholders or
$0.09
per share) in the third quarter,
$118 million
(
$73 million
to net income attributable to FCX common stockholders or
$0.07
per share) in the fourth quarter and
$312 million
(
$194 million
to net income attributable to FCX common stockholders or
$0.19
per share) for the year 2013 (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for net unrealized and noncash realized losses on crude oil and natural gas derivative contracts.
|
b.
|
Included charges of
$14 million
(
$10 million
to net income attributable to FCX common stockholders or
$0.01
per share) in the first quarter,
$61 million
(
$36 million
to net income attributable to FCX common stockholders or
$0.04
per share) in the second quarter,
$1 million
(
$1 million
to net income attributable to FCX common stockholders) in the third quarter,
$4 million
(
$3 million
to net income attributable to FCX common stockholders) in the fourth quarter and
$80 million
(
$50 million
to net income attributable to FCX common stockholders or
$0.05
per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR.
|
c.
|
Included charges in the fourth quarter and for the year of (i)
$76 million
(
$49 million
to net income attributable to FCX common stockholders or
$0.05
per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii)
$37 million
(
$23 million
to net income attributable to FCX common stockholders or
$0.02
per share) associated with the restructuring of an executive employment arrangement and (iii)
$36 million
(
$13 million
to net income attributable to FCX common stockholders or
$0.01
per share) associated with a new labor agreement at Cerro Verde.
|
d.
|
Included net losses (gains) on early extinguishment of debt totaling
$40 million
(
$0.04
per share) in the first quarter,
$(5) million
(
$(0.01)
per share) in the second quarter for an adjustment related to taxes on the first quarter losses,
$(7) million
(
$(0.01)
per share) in the fourth quarter and
$28 million
(
$0.03
per share) for the year. Refer to Note
8
for further discussion.
|
e.
|
Included a net tax benefit of
$183 million
(
$0.19
per share) in the second quarter,
$16 million
(
$0.01
per share) in the fourth quarter and
$199 million
(
$0.20
per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR.
|
f.
|
Included a gain of
$128 million
(
$0.13
per share) in the second quarter and for the year primarily related to FCX's preferred stock investment in and the subsequent acquisition of MMR.
|
g.
|
Included a gain of
$59 million
(
$31 million
to net income attributable to FCX common stockholders or
$0.03
per share) in the fourth quarter and for the year for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT-FI's concentrate pipelines. Refer to Note
12
for further discussion.
|
h.
|
Included a charge of
$16 million
(
$8 million
to net income attributable to FCX common stockholders or
$0.01
per share) in the fourth quarter and for the year associated with a labor agreement at Candelaria. Also included charges of
$9 million
(
$7 million
to net income attributable to FCX common stockholders or
$0.01
per share) for costs associated with the PXP and MMR transactions.
|
i.
|
Included a net tax benefit of
$208 million
(
$108 million
attributable to noncontrolling interests and
$100 million
to net income attributable to FCX common stockholders or
$0.11
per share) in the third quarter and
$205 million
(
$107 million
attributable to noncontrolling interests and
$98 million
to net income attributable to FCX common stockholders or
$0.11
per share) for the year associated with adjustments to Cerro Verde's deferred income taxes. Refer to Note
11
for further discussion.
|
j.
|
Included losses on early extinguishment of debt totaling
$149 million
(
$0.16
per share) in the first quarter and for the year. Refer to Note
8
for further discussion.
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||
|
Estimated at December 31, 2013
|
|||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||
North America
|
36.2
|
|
|
0.4
|
|
|
2.55
|
|
South America
|
37.0
|
|
|
1.1
|
|
|
0.71
|
|
Indonesia
|
30.0
|
|
|
29.8
|
|
|
—
|
|
Africa
|
8.0
|
|
|
—
|
|
|
—
|
|
Consolidated
b
|
111.2
|
|
|
31.3
|
|
|
3.26
|
|
Net equity interest
c
|
88.6
|
|
|
28.3
|
|
|
2.93
|
|
a.
|
Consolidated recoverable copper reserves included
3.3 billion
pounds in leach stockpiles and
1.4 billion
pounds in mill stockpiles.
|
b.
|
Consolidated reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
0.87 billion
pounds of cobalt at Tenke and
308.5 million
ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of
$10
per pound for cobalt and
$15
per ounce for silver.
|
c.
|
Net equity interest reserves represented estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
0.48 billion
pounds of cobalt at Tenke and
252.9 million
ounces of silver in Indonesia, South America and North America.
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||
|
|
Estimated at December 31, 2013
|
|||||||||||||||||
|
|
|
|
Average Ore Grade
Per Metric Ton
a
|
|
Recoverable Proven and
Probable Reserves
b
|
|||||||||||||
|
|
Ore
a
(million
|
|
Copper
|
|
Gold
|
|
Molybdenum
|
|
Copper
(billion
|
|
Gold
(million
|
|
Molybdenum
(billion
|
|||||
|
|
metric tons)
|
|
(%)
|
|
(grams)
|
|
(%)
|
|
pounds)
|
|
ounces)
|
|
pounds)
|
|||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Morenci
|
|
3,779
|
|
|
0.27
|
|
—
|
|
|
—
|
c
|
14.6
|
|
|
—
|
|
|
0.15
|
|
Bagdad
|
|
1,449
|
|
|
0.31
|
|
—
|
|
c
|
0.02
|
|
7.9
|
|
|
0.1
|
|
|
0.39
|
|
Safford
|
|
149
|
|
|
0.45
|
|
—
|
|
|
—
|
|
1.2
|
|
|
—
|
|
|
—
|
|
Sierrita
|
|
2,534
|
|
|
0.23
|
|
—
|
|
c
|
0.03
|
|
11.0
|
|
|
0.1
|
|
|
1.08
|
|
Miami
|
|
15
|
|
|
0.43
|
|
—
|
|
|
—
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Chino
|
|
376
|
|
|
0.42
|
|
0.02
|
|
|
—
|
c
|
2.6
|
|
|
0.2
|
|
|
0.01
|
|
Tyrone
|
|
69
|
|
|
0.34
|
|
—
|
|
|
—
|
|
0.5
|
|
|
—
|
|
|
—
|
|
Henderson
|
|
105
|
|
|
—
|
|
—
|
|
|
0.17
|
|
—
|
|
|
—
|
|
|
0.33
|
|
Climax
|
|
189
|
|
|
—
|
|
—
|
|
|
0.16
|
|
—
|
|
|
—
|
|
|
0.61
|
|
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cobre
|
|
73
|
|
|
0.39
|
|
—
|
|
|
—
|
|
0.3
|
|
|
—
|
|
|
—
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cerro Verde
|
|
4,047
|
|
|
0.37
|
|
—
|
|
|
0.01
|
|
29.4
|
|
|
—
|
|
|
0.71
|
|
El Abra
|
|
576
|
|
|
0.45
|
|
—
|
|
|
—
|
|
3.6
|
|
|
—
|
|
|
—
|
|
Candelaria
|
|
281
|
|
|
0.58
|
|
0.14
|
|
|
—
|
|
3.9
|
|
|
1.1
|
|
|
—
|
|
Ojos del Salado
|
|
8
|
|
|
1.00
|
|
0.23
|
|
|
—
|
|
0.1
|
|
|
—
|
|
c
|
—
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Grasberg open pit
|
|
206
|
|
|
0.95
|
|
1.08
|
|
|
—
|
|
3.6
|
|
|
5.8
|
|
|
—
|
|
Deep Ore Zone
|
|
152
|
|
|
0.56
|
|
0.73
|
|
|
—
|
|
1.6
|
|
|
2.8
|
|
|
—
|
|
Big Gossan
|
|
54
|
|
|
2.22
|
|
0.97
|
|
|
—
|
|
2.5
|
|
|
1.1
|
|
|
—
|
|
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg Block Cave
|
|
1,000
|
|
|
1.02
|
|
0.78
|
|
|
—
|
|
18.9
|
|
|
16.1
|
|
|
—
|
|
Kucing Liar
|
|
420
|
|
|
1.24
|
|
1.07
|
|
|
—
|
|
9.8
|
|
|
6.5
|
|
|
—
|
|
Deep Mill Level Zone
|
|
526
|
|
|
0.83
|
|
0.70
|
|
|
—
|
|
8.3
|
|
|
9.3
|
|
|
—
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tenke Fungurume
|
|
113
|
|
|
3.34
|
|
—
|
|
|
—
|
|
8.0
|
|
|
—
|
|
|
—
|
|
Total 100% basis
|
|
16,121
|
|
|
|
|
|
|
|
|
128.0
|
|
|
43.1
|
|
|
3.28
|
|
|
Consolidated
d
|
|
|
|
|
|
|
|
|
|
111.2
|
|
|
31.3
|
|
|
3.26
|
|
||
FCX’s equity share
e
|
|
|
|
|
|
|
|
|
|
88.6
|
|
|
28.3
|
|
|
2.93
|
|
a.
|
Excludes material contained in stockpiles.
|
b.
|
Included estimated recoverable metals contained in stockpiles.
|
c.
|
Amounts not shown because of rounding.
|
d.
|
Consolidated reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia.
|
e.
|
Net equity interest reserves represented estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
Property acquisition costs:
|
|
||
Proved properties
a
|
$
|
12,205
|
|
Unproved properties
b
|
11,259
|
|
|
Exploration costs
|
502
|
|
|
Development costs
|
854
|
|
|
|
$
|
24,820
|
|
a.
|
Included
$12.2 billion
from the acquisitions of PXP and MMR.
|
b.
|
Included
$11.1 billion
from the acquisitions of PXP and MMR.
|
Properties subject to amortization
|
|
$
|
13,829
|
|
Accumulated amortization
|
|
(1,357
|
)
|
|
|
|
$
|
12,472
|
|
Revenues from oil and gas producing activities
|
|
$
|
2,616
|
|
Production and delivery costs
|
|
(682
|
)
|
|
Depreciation, depletion and amortization
|
|
(1,358
|
)
|
|
Income tax expense (based on FCX's statutory tax rate)
|
|
(219
|
)
|
|
Results of operations from oil and gas producing activities (excluding general and administrative expenses, interest expense and interest income)
|
|
$
|
357
|
|
|
|
Oil
|
|
Gas
|
|
Total
|
|||
|
|
(MMbls)
a,b
|
|
(Bcf)
a
|
|
(MMBOE)
a
|
|||
Proved reserves:
|
|
|
|
|
|
|
|||
Acquisitions of PXP and MMR
|
|
368
|
|
|
626
|
|
|
472
|
|
Extensions and discoveries
|
|
20
|
|
|
20
|
|
|
24
|
|
Revisions of previous estimates
|
|
11
|
|
|
(26
|
)
|
|
7
|
|
Sale of reserves in-place
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
Production
|
|
(29
|
)
|
|
(55
|
)
|
|
(38
|
)
|
Balance at December 31, 2013
|
|
370
|
|
|
562
|
|
|
464
|
|
|
|
|
|
|
|
|
|||
Proved developed reserves at December 31, 2013
|
|
236
|
|
|
423
|
|
|
307
|
|
|
|
|
|
|
|
|
|||
Proved undeveloped reserves at December 31, 2013
|
|
134
|
|
|
139
|
|
|
157
|
|
a.
|
MMbls = million barrels; Bcf = billion cubic feet; MMBOE = million BOE
|
b.
|
Included
20
MMBbls of NGL proved reserves, consisting of
14
MMBbls of proved developed and
6
MMBbls of proved undeveloped at December 31, 2013.
|
Future cash inflows
|
|
$
|
38,901
|
|
Future production expense
|
|
(12,774
|
)
|
|
Future development costs
a
|
|
(6,480
|
)
|
|
Future income tax expense
|
|
(4,935
|
)
|
|
Future net cash flows
|
|
14,712
|
|
|
Discounted at 10% per year
|
|
(5,295
|
)
|
|
Standardized Measure
|
|
$
|
9,417
|
|
Reserves acquired in the acquisitions of PXP and MMR
|
|
$
|
14,467
|
|
Sales, net of production expenses
|
|
(2,296
|
)
|
|
Net changes in sales and transfer prices, net of production expenses
|
|
(459
|
)
|
|
Extensions, discoveries and improved recoveries
|
|
752
|
|
|
Changes in estimated future development costs
|
|
(1,190
|
)
|
|
Previously estimated development costs incurred during the year
|
|
578
|
|
|
Sales of reserves in-place
|
|
(12
|
)
|
|
Other purchases of reserves in-place
|
|
—
|
|
|
Revisions of quantity estimates
|
|
102
|
|
|
Accretion of discount
|
|
701
|
|
|
Net change in income taxes
|
|
(3,226
|
)
|
|
Balance at December 31, 2013
|
|
$
|
9,417
|
|
|
Number of Securities
To be Issued Upon
Exercise of
Outstanding Options,
Warrants and Rights
(a)
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
(b)
|
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
(c)
|
|
||||
Equity compensation plans
|
|
|
|
|
|
||||
approved by security holders
|
46,238,147
|
|
a
|
$
|
35.74
|
|
24,450,534
|
|
c
|
Equity compensation plans not
|
|
|
|
|
|
||||
approved by security holders
|
1,220,953
|
|
b
|
—
|
|
—
|
|
|
|
Total
|
47,459,100
|
|
|
35.74
|
|
24,450,534
|
|
c
|
a.
|
Includes shares issuable upon the vesting of 1,917,423 restricted stock units, and the termination of deferrals with respect to 1,117,100 restricted stock units that were vested as of
December 31, 2013
. These awards are not reflected in column (b) as they do not have an exercise price. The number of securities to be issued in column (a) does not include 1,430 outstanding stock appreciation rights and 1,430 restricted stock units, which are payable solely in cash.
|
b.
|
Represents restricted stock units outstanding as of
December 31, 2013
, under plans approved by PXP shareholders that were assumed in the acquisition of PXP. These awards are not reflected in column (b) as they do not have an exercise price. The number of securities to be issued in column (a) does not include 1,925,607 outstanding stock appreciation rights and 2,218,382 restricted stock units, which were assumed in the acquisition of PXP and are payable solely in cash.
|
c.
|
As of
December 31, 2013
, there were
24,450,534
shares remaining available for future issuance under the 2006 Stock Incentive Plan, all of which could be issued pursuant to awards of stock options or stock appreciation rights and only 9,813,534 of which could be issued pursuant to awards of restricted stock, restricted stock units or
“
Other Stock-Based Awards,
”
which awards are valued in whole or in part on the value of the shares of common stock.
|
*
|
Chairman of the Board
|
James R. Moffett
|
|
|
|
/s/ Richard C. Adkerson
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Richard C. Adkerson
|
(Principal Executive Officer)
|
|
|
*
|
Vice Chairman of the Board
|
James C. Flores
|
|
|
|
/s/ Kathleen L. Quirk
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Kathleen L. Quirk
|
(Principal Financial Officer)
|
|
|
*
|
Vice President and Controller - Financial Reporting
|
C. Donald Whitmire, Jr.
|
(Principal Accounting Officer)
|
|
|
*
|
Director
|
Robert J. Allison, Jr.
|
|
|
|
*
|
Director
|
Alan R. Buckwalter III
|
|
|
|
*
|
Director
|
Robert A. Day
|
|
|
|
*
|
Director
|
Gerald J. Ford
|
|
|
|
*
|
Director
|
Thomas A. Fry, III
|
|
|
|
|
|
*
|
Director
|
H. Devon Graham, Jr.
|
|
|
|
*
|
Director
|
Lydia H. Kennard
|
|
|
|
*
|
Director
|
Charles C. Krulak
|
|
|
|
*
|
Director
|
Bobby Lee Lackey
|
|
|
|
*
|
Director
|
Jon C. Madonna
|
|
|
|
*
|
Director
|
Dustan E. McCoy
|
|
|
|
*
|
Director
|
Stephen H. Siegele
|
|
|
|
*
|
Director
|
Frances Fragos Townsend
|
|
|
|
|
|
|
|
* By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Attorney-in-Fact
|
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Schedule II-Valuation and Qualifying Accounts
|
F-2
|
|
|
|
|
Additions
|
|
|
|
|
||||||||||||
|
|
Balance at
|
|
Charged to
|
|
Charged to
|
|
Other
|
|
Balance at
|
||||||||||
|
|
Beginning of
|
|
Costs and
|
|
Other
|
|
Additions
|
|
End of
|
||||||||||
|
|
Year
|
|
Expense
|
|
Accounts
|
|
(Deductions)
|
|
Year
|
||||||||||
Reserves and allowances deducted
|
|
|
|
|
|
|
|
|
|
|
||||||||||
from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Materials and supplies inventory allowances
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2013
|
|
$
|
27
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
a
|
$
|
24
|
|
Year Ended December 31, 2012
|
|
26
|
|
|
7
|
|
|
—
|
|
|
(6
|
)
|
a
|
27
|
|
|||||
Year Ended December 31, 2011
|
|
26
|
|
|
4
|
|
|
—
|
|
|
(4
|
)
|
a
|
26
|
|
|||||
Valuation allowance for deferred tax assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2013
|
|
$
|
2,443
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,485
|
|
Year Ended December 31, 2012
|
|
2,393
|
|
|
49
|
|
|
1
|
|
|
—
|
|
|
2,443
|
|
|||||
Year Ended December 31, 2011
|
|
2,226
|
|
|
146
|
|
|
21
|
|
|
—
|
|
|
2,393
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserves for non-income taxes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2013
|
|
$
|
80
|
|
|
$
|
35
|
|
|
$
|
(1
|
)
|
|
$
|
(36
|
)
|
b
|
$
|
78
|
|
Year Ended December 31, 2012
|
|
73
|
|
|
21
|
|
|
(2
|
)
|
|
(12
|
)
|
b
|
80
|
|
|||||
Year Ended December 31, 2011
|
|
73
|
|
|
12
|
|
|
(2
|
)
|
|
(10
|
)
|
b
|
73
|
|
a.
|
Primarily represents write-offs of obsolete materials and supplies inventories.
|
b.
|
Represents amounts paid or adjustments to reserves based on revised estimates.
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.9
|
Tenth Supplemental Indenture dated as of September 11, 2009 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 8.625% Senior Notes due 2019).
|
|
8-K
|
001-31470
|
9/11/2009
|
4.10
|
Eleventh Supplemental Indenture dated as of March 29, 2010 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 7.625% Senior Notes due 2020).
|
|
8-K
|
001-31470
|
3/29/2010
|
4.11
|
Twelfth Supplemental Indenture dated as of March 29, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021).
|
|
8-K
|
001-31470
|
3/29/2011
|
4.12
|
Thirteenth Supplemental Indenture dated as of November 21, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.75% Senior Notes due 2022).
|
|
8-K
|
001-31470
|
11/22/2011
|
4.13
|
Fourteenth Supplemental Indenture dated as of April 27, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019).
|
|
8-K
|
001-31470
|
4/27/2012
|
4.14
|
Sixteenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.15
|
Seventeenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.16
|
Eighteenth Supplemental Indenture dated as of May 31, 2013 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, Plains Exploration & Production Company, as Original Issuer, and Wells Fargo Bank, N.A., as Trustee (relating to the 8.625% Senior Notes due 2019, the 7.625% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.17
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
S-3
|
333-36415
|
9/25/1997
|
4.18
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).
|
|
8-K
|
001-00082
|
11/3/1997
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.19
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).
|
|
8-K
|
001-00082
|
5/30/2001
|
4.20
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-00082
|
3/7/2005
|
4.21
|
Registration Rights Agreement dated as of March 7, 2013, among Freeport-McMoRan Copper & Gold Inc. and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 2.375% Senior Notes due 2018).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.22
|
Registration Rights Agreement dated as of March 7, 2013, among Freeport-McMoRan Copper & Gold Inc. and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 3.100% Senior Notes due 2020).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.23
|
Registration Rights Agreement dated as of March 7, 2013, among Freeport-McMoRan Copper & Gold Inc. and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 3.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.24
|
Registration Rights Agreement dated as of March 7, 2013, among Freeport-McMoRan Copper & Gold Inc. and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
10.1
|
Credit Agreement dated as of March 4, 2011, among FCX, the Lenders party thereto, the Issuing Banks party thereto, JP Morgan Chase Bank, N.A. as Administrative Agent and Bank of America, N.A., as Syndication Agent.
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
10.2
|
Contract of Work dated December 30, 1991, between the Government of the Republic of Indonesia and PT Freeport Indonesia.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.3
|
Contract of Work dated August 15, 1994, between the Government of the Republic of Indonesia and PT Irja Eastern Minerals Corporation.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.4
|
Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. RTZ-CRA Indonesia (a subsidiary of Rio Tinto PLC) with respect to a certain contract of work.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.5
|
Agreement dated as of October 11, 1996, to Amend and Restate Trust Agreement among PT Freeport Indonesia, FCX, the RTZ Corporation PLC (now Rio Tinto PLC), P.T. RTZ-CRA Indonesia, RTZ Indonesian Finance Limited and First Trust of New York, National Association, and The Chase Manhattan Bank, as Administrative Agent, JAA Security Agent and Security Agent.
|
|
8-K
|
001-09916
|
11/13/1996
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.6
|
Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.7
|
Second Amended and Restated Joint Venture and Shareholders’ Agreement dated as of December 11, 1996, among Mitsubishi Materials Corporation, Nippon Mining and Metals Company, Limited and PT Freeport Indonesia.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.8
|
Participation Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation, Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Summit Global Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
3/22/2005
|
10.9
|
Shareholders Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Summit Global Management B.V., a Dutch corporation, SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
6/7/2005
|
10.10
|
Master Agreement and Plan of Merger among Columbian Chemicals Company, Columbian Chemicals Acquisition LLC, Columbian Chemicals Merger Sub, Inc. and Phelps Dodge Corporation, dated November 15, 2005.
|
|
10-K
|
001-00082
|
2/27/2006
|
10.11
|
Reclamation and Remediation Trust Agreement between Phelps Dodge Corporation and Wells Fargo Delaware Trust Company, dated December 22, 2005.
|
|
10-K
|
001-00082
|
2/27/2006
|
10.12
|
Amended and Restated Mining Convention dated as of September 28, 2005, among the Democratic Republic of Congo, La Générale des Carrières et des Mines, Lundin Holdings Ltd. (now TF Holdings Limited) and Tenke Fungurume Mining S.A.R.L.
|
|
8-K
|
001-11307-01
|
9/2/2008
|
10.13
|
Addendum No.1 to the Amended and Restated Mining Convention dated as of September 28, 2005, among the Democratic Repbulic of Congo, La Générale des Carrières et des Mines, TF Holdings Limited and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
10.14
|
Amended and Restated Shareholders Agreement dated as of September 28, 2005, by and between La Générale des Carrières et des Mines and Lundin Holdings Ltd. (now TF Holdings Limited) and its subsidiaries.
|
|
8-K
|
001-11307-01
|
9/2/2008
|
10.15
|
Addendum No.1 to the Amended and Restated Shareholders Agreement dated as of September 28, 2005, among La Générale des Carrières et des Mines and TF Holdings Limited, Chui Ltd., Faru Ltd., Mboko Ltd., Tembo Ltd., and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010.
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.16
|
Term Loan Agreement dated as of February 14, 2013, among Freeport-McMoRan Copper & Gold Inc., JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto. Upon consummation of the acquisition of Plains Exploration & Production Company (PXP), the PXP surviving entity, will join the Term Loan as a borrower thereunder.
|
|
8-K
|
001-11307-01
|
2/15/2013
|
10.17
|
Revolving Credit Agreement dated as of February 14, 2013, among Freeport-McMoRan Copper & Gold Inc., PT Freeport Indonesia, JPMorgan Chase Bank, N.A., as administrative agent and the swingline lender, Bank of America, N.A., as syndication agent, BNP Paribas, Citibank, N.A., HSBC Bank USA, National Association, Muzho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders and issuing banks party thereto. Upon consummation of the acquisition of Plains Exploration & Production Company (PXP), the PXP surviving entity, will join the Revolving Credit Facility as a borrower thereunder.
|
|
8-K
|
001-11307-01
|
2/15/2013
|
10.18
|
Purchase Agreement dated as of February 28, 2013 among Freeport-McMoRan Copper & Gold Inc. and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the several initial purchasers named in Schedule 1 thereto.
|
|
8-K
|
001-11307-01
|
3/5/2013
|
10.19*
|
Letter Agreement, dated as of December 5, 2012, by and among James C. Flores, Plains Exploration & Production Company and Freeport-McMoRan Copper & Gold Inc.
|
|
8-K
|
001-11307-01
|
12/6/2012
|
10.20*
|
Letter Agreement dated as of December 19, 2013, by and between Freeport-McMoRan Copper & Gold Inc. and Richard C. Adkerson.
|
|
8-K
|
001-11307-01
|
12/23/2013
|
10.21*
|
FCX Director Compensation.
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
10.22*
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and James R. Moffett.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.23*
|
Amended and Restated Change of Control Agreement dated effective as of December 2, 2008, between FCX and James R. Moffett.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.24*
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and Kathleen L. Quirk.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.25*
|
Amendment to Amended and Restated Executive Employment Agreement dated December 2, 2008, by and between FCX and Kathleen L. Quirk, dated April 27, 2011.
|
|
8-K
|
001-11307-01
|
4/29/2011
|
10.26*
|
FCX Executive Services Program
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.27*
|
FCX Supplemental Executive Retirement Plan, as amended and restated.
|
|
8-K
|
001-11307-01
|
2/5/2007
|
10.28*
|
FCX Supplemental Executive Capital Accumulation Plan.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.29*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment One.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.30*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Two.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.31*
|
FCX 2005 Supplemental Executive Capital Accumulation Plan.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.32*
|
FCX 2005 Supplemental Executive Capital Accumulation Plan Amendment One.
|
|
10-K
|
001-11307-01
|
2/26/2010
|
10.33*
|
FCX 1995 Stock Option Plan for Non-Employee Directors, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.34*
|
FCX Amended and Restated 1999 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.35*
|
FCX 2003 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.36*
|
Form of Amendment No. 1 to Notice of Grant of Nonqualified Stock Options and Stock Appreciation Rights under the 2004 Director Compensation Plan.
|
|
8-K
|
001-11307-01
|
5/5/2006
|
10.37*
|
FCX 2004 Director Compensation Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
8/6/2010
|
10.38*
|
FCX 2005 Annual Incentive Plan, as amended and restated.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
FCX Amended and Restated 2006 Stock Incentive Plan.
|
X
|
|
|
|
|
10.40*
|
Form of Notice of Grant of Nonqualified Stock Options for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.41*
|
Form of Notice of Grant of Restricted Stock Units for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/26/2010
|
10.42*
|
Form of Notice of Grant of Nonqualified Stock Options and Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors and advisory directors).
|
|
8-K
|
001-11307-01
|
6/14/2010
|
10.43*
|
Form of Performance-Based Restricted Stock Unit Agreement for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan, (Form used for awards granted prior to 2010).
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.44*
|
Form of Notice of Grant of Performance-Based Restricted Stock Units for grants under the FCX 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
8-K
|
001-11307-01
|
2/5/2010
|
10.45*
|
Form of Restricted Stock Unit Agreement (form used in connection with participant elections) for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.46*
|
Form of Performance-Based Restricted Stock Unit Agreement (form used in connection with participant elections) for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.47*
|
FCX 2009 Annual Incentive Plan
|
|
8-K
|
001-11307-01
|
6/17/2009
|
10.48*
|
Form of Nonqualified Stock Options Grant Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.49*
|
Form of Restricted Stock Unit Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.50*
|
Form of Performance-Based Restricted Stock Unit Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
FREEPORT-McMoRan COPPER & GOLD INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
Form of Nonqualified Stock Options Grant Agreement under the FCX stock incentive plans (effective February 2014).
|
X
|
|
|
|
|
Form of Restricted Stock Unit Agreement under the FCX stock incentive plans (effective February 2014).
|
X
|
|
|
|
|
FCX Computation of Ratio of Earnings to Fixed Charges.
|
X
|
|
|
|
|
14.1
|
FCX Principles of Business Conduct.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
Subsidiaries of FCX.
|
X
|
|
|
|
|
Consent of Ernst & Young LLP.
|
X
|
|
|
|
|
Consent of Netherland, Sewell & Associates, Inc.
|
X
|
|
|
|
|
Consent of Ryder Scott Company, L.P.
|
X
|
|
|
|
|
Certified resolution of the Board of Directors of FCX authorizing this report to be signed on behalf of any officer or director pursuant to a Power of Attorney.
|
X
|
|
|
|
|
Powers of Attorney pursuant to which this report has been signed on behalf of certain officers and directors of FCX.
|
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
|
|
|
|
|
Mine Safety Disclosure.
|
X
|
|
|
|
|
99.1
|
Asset and Stock Purchase Agreement among OMG Harjavalta Chemicals Holding BV, OMG Americas, Inc., OM Group, Inc., Koboltti Chemicals Holdings Limited and solely for purposes of Section 10.13 and Exhibit A, Freeport-McMoRan Corporation, dated as of January 21, 2013.
|
|
10-K
|
001-11307-01
|
2/22/2013
|
Report of Netherland, Sewell & Associates, Inc.
|
X
|
|
|
|
|
Report of Ryder Scott Company, L.P.
|
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
|
|
|
|
Scheduled Vesting Date
|
Number of RSUs
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
|
||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Income (loss) from continuing operations before income taxes and equity in affiliated companies' net earnings
|
$
|
4,913
|
|
|
5,486
|
|
|
8,818
|
|
|
8,512
|
|
|
5,816
|
|
|
Amortization of previously capitalized interest
|
45
|
|
|
41
|
|
|
36
|
|
|
34
|
|
|
31
|
|
|
|
Less: capitalized interest
|
(174
|
)
|
|
(81
|
)
|
|
(109
|
)
|
|
(66
|
)
|
|
(78
|
)
|
|
|
Less: preferred dividends of a consolidated subsidiary
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (losses) from continuing operations before fixed charges
|
$
|
4,753
|
|
|
5,446
|
|
|
8,745
|
|
|
8,480
|
|
|
5,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net of capitalized interest
|
$
|
550
|
|
|
180
|
|
|
301
|
|
|
448
|
|
|
568
|
|
|
Capitalized interest
|
174
|
|
|
81
|
|
|
109
|
|
|
66
|
|
|
78
|
|
|
|
Amortization of debt expenses, premiums and and discounts
|
(32
|
)
|
|
7
|
|
|
11
|
|
|
14
|
|
|
18
|
|
|
|
Interest portion of rental expense
|
23
|
|
|
22
|
|
|
23
|
|
|
26
|
|
|
32
|
|
|
|
Preferred dividends of a consolidated subsidiary
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total fixed charges
|
$
|
746
|
|
|
290
|
|
|
444
|
|
|
554
|
|
|
696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted earnings (losses)
|
5,499
|
|
|
5,736
|
|
|
9,189
|
|
|
9,034
|
|
|
6,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio of earnings to fixed charges
(a)
|
$
|
7.4
|
|
|
19.8
|
|
|
20.7
|
|
|
16.3
|
|
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred dividend requirements:
|
|
|
|
|
|
|
|
|
|
|
||||||
Total fixed charges
|
$
|
746
|
|
|
290
|
|
|
444
|
|
|
554
|
|
|
696
|
|
|
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Combined fixed charges and preferred stock dividends
|
746
|
|
|
290
|
|
|
444
|
|
|
650
|
|
|
1,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio of earnings to combined fixed charges and preferred stock dividends
(a)
|
$
|
7.4
|
|
|
19.8
|
|
|
20.7
|
|
|
13.9
|
|
|
6.1
|
|
|
List of Subsidiaries of
|
||
Freeport-McMoRan Copper & Gold Inc.
|
||
|
|
|
|
|
|
Entity(1)
|
Jurisdiction of Organization
|
|
Compañia Contractual Minera Candelaria
|
Chile
|
|
Cyprus Amax Minerals Company
|
Delaware
|
|
FCX Oil & Gas Inc.
|
Delaware
|
|
Freeport-McMoRan Bagdad Inc.
|
Delaware
|
|
Freeport-McMoRan Corporation
|
New York
|
|
Freeport-McMoRan Morenci Inc.
|
Delaware
|
|
Freeport-McMoRan Oil & Gas LLC
|
Delaware
|
|
PT Freeport Indonesia
|
Indonesia and Delaware
|
|
PXP Offshore LLC
|
Delaware
|
|
Sociedad Minera Cerro Verde S.A.A.
|
Peru
|
|
Sociedad Contractual Minera El Abra
|
Chile
|
|
Tenke Fungurume Mining S.A.R.L.
|
Democratic Republic of Congo
|
|
|
|
|
|
|
|
(1)
|
Omitted from this list are subsidiaries that, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary as of December 31, 2013.
|
1)
|
Registration Statement (Form S-3 No. 333-179420) of Freeport-McMoRan Copper & Gold Inc.,
|
2)
|
Registration Statement (Form S-4 No. 333-190821) of Freeport-McMoRan Copper & Gold Inc.,
|
3)
|
Registration Statement (Form S-8 No. 333-85803) pertaining to the 1999 Stock Incentive Plan,
|
4)
|
Registration Statement (Form S-8 No. 333-105535) pertaining to the 2003 Stock Incentive Plan,
|
5)
|
Registration Statement (Form S-8 No. 333-115292) pertaining to the 2004 Director Compensation Plan,
|
6)
|
Registration Statement (Form S-8 No. 333-136084) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
7)
|
Registration Statement (Form S-8 No. 333-141358) pertaining to the Phelps Dodge Corporation 2003 Stock Option and Restricted Stock Plan and the Phelps Dodge Corporation 1998 Stock Option and Restricted Stock Plan,
|
8)
|
Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan, and
|
9)
|
Registration Statement (Form S-8 No. 333-189047) pertaining to the Plains Exploration & Production Company 2010 Incentive Award Plan; the Plains Exploration & Production 2004 Stock Incentive Plan; the McMoRan Exploration Co. Amended and Restated 2008 Stock Incentive Plan; the McMoRan Exploration Co. 2005 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2004 Director Compensation Plan, as amended and restated; the McMoRan Exploration Co. 2003 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2001 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2000 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 1998 Stock Option Plan, as amended and restated; and the McMoRan Exploration Co. 1998 Stock Option Plan for Non-Employee Directors, as amended and restated;
|
|
/s/ Douglas N. Currault II
|
|
Douglas N. Currault II
|
|
Secretary
|
|
/s/ Robert A. Day
|
|
Robert A. Day
|
|
/s/ Bobby Lee Lackey
|
|
Bobby Lee Lackey
|
|
/s/ James R. Moffett
|
|
James R. Moffett
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
/s/ C. Donald Whitmire, Jr.
|
|
C. Donald Whitmire, Jr.
|
|
/s/ H. Devon Graham, Jr.
|
|
H. Devon Graham, Jr.
|
|
/s/ Gerald J. Ford
|
|
Gerald J. Ford
|
|
/s/ Robert J. Allison, Jr.
|
|
Robert J. Allison, Jr.
|
|
/s/ Stephen H. Siegele
|
|
Stephen H. Siegele
|
|
/s/ Charles C. Krulak
|
|
Charles C. Krulak
|
|
/s/ Jon C. Madonna
|
|
Jon C. Madonna
|
|
/s/ Dustan E. McCoy
|
|
Dustan E. McCoy
|
|
/s/ Lydia H. Kennard
|
|
Lydia H. Kennard
|
|
/s/ Frances F. Townsend
|
|
Frances F. Townsend
|
|
/s/ Alan R. Buckwalter, III
|
|
Alan R. Buckwalter, III
|
|
/s/ James C. Flores
|
|
James C. Flores
|
|
/s/ Thomas A. Fry, III
|
|
Thomas A. Fry, III
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Copper & Gold Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Copper & Gold Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
•
|
Section 104 S&S Citations
: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
|
•
|
Section 104(b) Orders
: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.
|
•
|
Section 104(d) Citations and Orders
: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).
|
•
|
Section 110(b)(2) Violations
: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”
|
•
|
Section 107(a) Orders
: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Have
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pattern of
|
|
Pattern of
|
|||||||
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
|
|
|
|
Violations
|
|
Violation
|
|||||||
|
|
|
|
Section
|
|
Section
|
|
104(d)
|
|
Section
|
|
Section
|
|
|
|
Mining
|
|
Under
|
|
Under
|
|||||||
|
|
|
|
104 S&S
|
|
104(b)
|
|
Citations
|
|
110(b)(2)
|
|
107(a)
|
|
Proposed
|
|
Related
|
|
Section
|
|
Section
|
|||||||
|
|
|
|
Citations
|
|
Orders
|
|
and Orders
|
|
Violations
|
|
Orders
|
|
Assessments
(2)
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|||||||
Mine ID
(1)
|
|
Mine or Operation Name
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($)
|
|
(#)
|
|
(yes/no)
|
|
(yes/no)
|
|||||||
0200137
|
|
Freeport-McMoRan Bagdad Inc. (Bagdad)
|
|
28
|
|
(3)
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
158,250
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Chino Mines Company (Chino):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900708
|
|
Chino Mines Co Mine
|
|
34
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,298
|
|
|
—
|
|
|
No
|
|
No
|
0200112
|
|
Freeport-McMoRan Miami Inc. (Miami)
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,583
|
|
|
—
|
|
|
No
|
|
No
|
0200024
|
|
Freeport-McMoRan Morenci Inc. (Morenci)
|
|
73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
292,590
|
|
|
—
|
|
|
No
|
|
No
|
0203131
|
|
Freeport-McMoRan Safford Inc. (Safford)
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,860
|
|
|
—
|
|
|
No
|
|
No
|
0200144
|
|
Freeport-McMoRan Sierrita Inc. (Sierrita)
|
|
24
|
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,607
|
|
|
—
|
|
|
No
|
|
No
|
2900159
|
|
Tyrone Mine (Tyrone)
|
|
36
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,269
|
|
|
—
|
|
|
No
|
|
No
|
0500790
|
|
Henderson Operations (Henderson)
|
|
5
|
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,607
|
|
|
—
|
|
|
No
|
|
No
|
0502256
|
|
Climax Mine (Climax)
|
|
1
|
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Cobre Mining Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900725
|
|
Open Pit & Continental Surf Comp
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
734
|
|
|
—
|
|
|
No
|
|
No
|
2900731
|
|
Continental Mill Complex
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,532
|
|
|
—
|
|
|
No
|
|
No
|
0201656
|
|
Copper Queen Branch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
924
|
|
|
—
|
|
|
No
|
|
No
|
0202579
|
|
Cyprus Tohono Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
No
|
|
No
|
0203262
|
|
Twin Buttes Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|
—
|
|
|
No
|
|
No
|
2902395
|
|
Chieftain 2100 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203254
|
|
Warrior 1800 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.
|
(2)
|
Amounts represent the total dollar value of proposed assessments received on or before
February 14, 2014
, for citations or orders issued by MSHA during the year ended
December 31, 2013
. FCX is contesting approximately $180 thousand of these proposed assessments.
|
(3)
|
During the year ended
December 31, 2013
, Sierrita was issued four 104 S&S citations and Bagdad, Henderson and Climax were each issued a 104 S&S citation that was subsequently reduced to 104(a) non-significant and substantial violation.
|
•
|
Contest Proceedings
- A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.
|
•
|
Civil Penalty Proceedings
- A civil penalty proceeding is an administrative proceeding that may be filed by an operator to challenge a civil penalty MSHA has proposed for an alleged violation contained in a citation or order. The validity of the citation may be challenged in this proceeding as well.
|
•
|
Discrimination Proceedings
- Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.
|
•
|
Compensation Proceedings
- A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
|
•
|
Temporary Relief -
Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.
|
•
|
Appeals -
An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.
|
|
|
Legal Actions Pending at December 31, 2013
2
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Contest
|
|
Civil Penalty
|
|
Discrimination
|
|
Compensation
|
|
Temporary
|
|
|
|
|
|
Legal Actions
|
|
Legal Actions
|
|
|||||||||
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Relief
|
|
Appeals
|
|
Total
|
|
Instituted
(2)
|
|
Resolved
(3)
|
|
|||||||||
Mine ID
(1)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
|||||||||
0200137
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
2900708
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
9
|
|
|
2900762
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2901882
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200112
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
0200024
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
17
|
|
|
0203131
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200144
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
17
|
|
|
2900159
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
0500790
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
0502256
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2900725
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2900731
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
0201656
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0202579
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203262
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2902395
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203254
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.
|
(2)
|
Legal actions pending at
December 31, 2013
, and legal actions instituted during the year are based on the date that a docket number was assigned to the proceeding.
|
(3)
|
Legal actions resolved during the year are based on the date that the settlement motion resolving disputed matters is filed with the Commission and the matter is effectively closed by MSHA.
|
|
|
Net Reserves
|
|
Future Net Revenue (M$)
|
||||||
|
|
Oil
|
|
NGL
|
|
Gas
|
|
|
|
Present Worth
|
Category
|
|
(MBBL)
|
|
(MBBL)
|
|
(MMCF)
|
|
Total
|
|
at 10%
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Producing
|
|
174,723.4
|
|
11,092.6
|
|
309,090.9
|
|
9,618,802.2
|
|
7,298,499.4
|
Proved Developed Non-Producing
|
|
38,298.0
|
|
1,411.7
|
|
31,315.6
|
|
2,796,775.2
|
|
1,645,427.5
|
Proved Undeveloped
|
|
127,107.0
|
|
5,068.8
|
|
108,726.6
|
|
6,563,744.3
|
|
3,209,794.6
|
Total Proved
|
|
340,128.4
|
|
17,573.0
|
|
449,133.1
|
|
18,979,321.7
|
|
12,153,721.5
|
|
|
|
|
|
|
|
|
|
|
|
Probable Developed
|
|
24,158.2
|
|
1,752.6
|
|
30,977.7
|
|
2,162,967.2
|
|
1,335,448.3
|
Probable Undeveloped
|
|
119,143.8
|
|
3,928.1
|
|
103,030.7
|
|
6,911,428.2
|
|
2,530,143.8
|
Total Probable
|
|
143,301.9
|
|
5,680.7
|
|
134,008.4
|
|
9,074,395.4
|
|
3,865,592.1
|
(i)
|
Same geological formation (but not necessarily in pressure communication with the reservoir of interest);
|
(ii)
|
Same environment of deposition;
|
(iii)
|
Similar geological structure; and
|
(iv)
|
Same drive mechanism.
|
(i)
|
Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and
|
(ii)
|
Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
|
(i)
|
Gain access to and prepare well locations for drilling, including surveying well locations for the purpose of determining specific development drilling sites, clearing ground, draining, road building, and relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves.
|
(ii)
|
Drill and equip development wells, development-type stratigraphic test wells, and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment, and the wellhead assembly.
|
(iii)
|
Acquire, construct, and install production facilities such as lease flow lines, separators, treaters, heaters, manifolds, measuring devices, and production storage tanks, natural gas cycling and processing plants, and central utility and waste disposal systems.
|
(iv)
|
Provide improved recovery systems.
|
(i)
|
Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs.
|
(ii)
|
Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records.
|
(iii)
|
Dry hole contributions and bottom hole contributions.
|
(iv)
|
Costs of drilling and equipping exploratory wells.
|
(v)
|
Costs of drilling exploratory-type stratigraphic test wells.
|
(i)
|
Oil and gas producing activities include:
|
(A)
|
The search for crude oil, including condensate and natural gas liquids, or natural gas ("oil and gas") in their natural states and original locations;
|
(B)
|
The acquisition of property rights or properties for the purpose of further exploration or for the purpose of removing the oil or gas from such properties;
|
(C)
|
The construction, drilling, and production activities necessary to retrieve oil and gas from their natural reservoirs, including the acquisition, construction, installation, and maintenance of field gathering and storage systems, such as:
|
(1)
|
Lifting the oil and gas to the surface; and
|
(2)
|
Gathering, treating, and field processing (as in the case of processing gas to extract liquid hydrocarbons); and
|
(D)
|
Extraction of saleable hydrocarbons, in the solid, liquid, or gaseous state, from oil sands, shale, coalbeds, or other nonrenewable natural resources which are intended to be upgraded into synthetic oil or gas, and activities undertaken with a view to such extraction.
|
a.
|
The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal; and
|
b.
|
In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser prior to upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility which upgrades such natural resources into synthetic oil or gas.
|
(ii)
|
Oil and gas producing activities do not include:
|
(A)
|
Transporting, refining, or marketing oil and gas;
|
(B)
|
Processing of produced oil, gas, or natural resources that can be upgraded into synthetic oil or gas by a registrant that does not have the legal right to produce or a revenue interest in such production;
|
(C)
|
Activities relating to the production of natural resources other than oil, gas, or natural resources from which synthetic oil and gas can be extracted; or
|
(D)
|
Production of geothermal steam.
|
(i)
|
When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates.
|
(ii)
|
Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project.
|
(iii)
|
Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves.
|
(iv)
|
The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects.
|
(v)
|
Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir.
|
(vi)
|
Pursuant to paragraph (a)(22)(iii) of this section, where direct observation has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.
|
(i)
|
When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.
|
(ii)
|
Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir.
|
(iii)
|
Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.
|
(iv)
|
See also guidelines in paragraphs (a)(17)(iv) and (a)(17)(vi) of this section.
|
(i)
|
Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced. Examples of production costs (sometimes called lifting costs) are:
|
(A)
|
Costs of labor to operate the wells and related equipment and facilities.
|
(B)
|
Repairs and maintenance.
|
(C)
|
Materials, supplies, and fuel consumed and supplies utilized in operating the wells and related equipment and facilities.
|
(D)
|
Property taxes and insurance applicable to proved properties and wells and related equipment and facilities.
|
(E)
|
Severance taxes.
|
(ii)
|
Some support equipment or facilities may serve two or more oil and gas producing activities and may also serve transportation, refining, and marketing activities. To the extent that the support equipment and facilities are used in oil and gas producing activities, their depreciation and applicable operating costs become exploration, development or production costs, as appropriate. Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs are not production costs but also become part of the cost of oil and gas produced along with production (lifting) costs identified above.
|
(i)
|
The area of the reservoir considered as proved includes:
|
(A)
|
The area identified by drilling and limited by fluid contacts, if any, and
|
(B)
|
Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.
|
(ii)
|
In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.
|
(iii)
|
Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.
|
(iv)
|
Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:
|
(A)
|
Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous
|
(B)
|
The project has been approved for development by all necessary parties and entities, including governmental entities.
|
(v)
|
Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|
(ii)
|
Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.
|
(iii)
|
Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.
|
/s/ Val Rick Robinson
|
Val Rick Robinson, P.E.
|
TBPE License No. 105137
|
Senior Vice President
|
As of December 31, 2013
|
|
|
Proved
|
||||||||||||||||||
|
|
Developed
|
|
|
|
Total
|
||||||||||||||
|
|
Producing
|
|
Non-Producing
|
|
Undeveloped
|
|
Proved
|
||||||||||||
Net Remaining Reserves
|
|
|
|
|
|
|
|
|
||||||||||||
Oil/Condensate – Barrels
|
|
3,198,561
|
|
|
5,715,741
|
|
|
696,998
|
|
|
9,611,300
|
|
||||||||
Plant Products – Barrels
|
|
688,622
|
|
|
1,436,221
|
|
|
622,498
|
|
|
2,747,341
|
|
||||||||
Gas – MMCF
|
|
26,144
|
|
|
55,953
|
|
|
30,476
|
|
|
112,573
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Income Data
|
|
|
|
|
|
|
|
|
||||||||||||
Future Gross Revenue
|
|
|
$456,298,809
|
|
|
|
$876,896,000
|
|
|
$
|
203,310,656
|
|
|
|
$1,536,505,465
|
|
||||
Deductions
|
|
385,348,132
|
|
|
346,449,080
|
|
|
136,603,496
|
|
|
868,400,708
|
|
||||||||
Future Net Income (FNI)
|
|
$
|
70,950,677
|
|
|
|
$530,446,920
|
|
|
$
|
66,707,160
|
|
|
$
|
668,104,757
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Discounted FNI @ 10%
|
|
$
|
90,561,528
|
|
|
|
$365,283,601
|
|
|
$
|
33,134,545
|
|
|
$
|
488,979,674
|
|
|
|
Probable
|
||||||||||||||
|
|
Developed
|
|
|
|
Total
|
||||||||||
|
|
Producing
|
|
Non-Producing
|
|
Undeveloped
|
|
Probable
|
||||||||
Net Remaining Reserves
|
|
|
|
|
|
|
|
|
||||||||
Oil/Condensate – Barrels
|
|
161,713
|
|
|
1,782,400
|
|
|
1,295,356
|
|
|
3,239,469
|
|
||||
Plant Products – Barrels
|
|
88,581
|
|
|
465,275
|
|
|
425,430
|
|
|
979,286
|
|
||||
Gas – MMCF
|
|
3,243
|
|
|
17,250
|
|
|
30,707
|
|
|
51,200
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Data
|
|
|
|
|
|
|
|
|
||||||||
Future Gross Revenue
|
|
|
$32,596,444
|
|
|
|
$271,052,419
|
|
|
|
$257,383,054
|
|
|
|
$561,031,917
|
|
Deductions
|
|
7,589,992
|
|
|
51,022,290
|
|
|
158,628,440
|
|
|
217,240,722
|
|
||||
Future Net Income (FNI)
|
|
|
$25,006,452
|
|
|
|
$220,030,129
|
|
|
$
|
98,754,614
|
|
|
|
$343,791,195
|
|
|
|
|
|
|
|
|
|
|
||||||||
Discounted FNI @ 10%
|
|
|
$21,006,217
|
|
|
$
|
75,991,127
|
|
|
$
|
28,993,231
|
|
|
|
$125,990,575
|
|
|
|
Discounted Future Net Income
|
||
|
|
As of December 31, 2013
|
||
Discount Rate
|
|
Total
|
|
Total
|
Percent
|
|
Proved
|
|
Probable
|
|
|
|
|
|
8
|
|
$518,194,503
|
|
$152,281,187
|
15
|
|
$426,523,526
|
|
$79,965,265
|
20
|
|
$376,078,576
|
|
$51,881,155
|
25
|
|
$334,736,167
|
|
$34,180,331
|
Geographic
Area
|
Product
|
Price
Reference
|
Avg
Benchmark
Prices
|
Avg
Proved
Realized
Prices
|
Avg
Probable
Realized
Prices
|
United
States
|
Oil/Condensate
|
WTI Cushing
|
$96.94/Bbl
|
$106.61/Bbl
|
$105.52/Bbl
|
NGLs
|
WTI Cushing
|
$96.94/Bbl
|
$35.63/Bbl
|
$35.49/Bbl
|
|
Gas
|
Henry Hub
|
$3.67/MMBTU
|
$3.76/MCF
|
$3.75/MCF
|
(1)
|
completion intervals which are open at the time of the estimate, but which have not started producing;
|
(2)
|
wells which were shut-in for market conditions or pipeline connections; or
|
(3)
|
wells not capable of production for mechanical reasons.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|