Management’s Discussion and Analysis Reconciliation to Amounts Reported  Production  Depreciation and  Revenues  and Delivery  Amortization (In Thousands)  Totals presented above  $1,980,386  $ 764,206  $ 168,195 Net noncash and nonrecurring credits per above  N/A  (4,075)  N/A Less: Treatment charges per above  (202,243)  N/A  N/A  Royalty per above  (43,498)  N/A  N/A Adjustments, primarily for copper pricing on prior period open  sales and hedging per above  11,928  N/A  N/A Mining and exploration segment   1,746,573  760,131  168,195 Smelting and refining segment  873,700  914,452  28,632 Eliminations and other  (248,407)  (224,292)  9,581 As reported in FCX’s consolidated financial statements  $2,371,866  $1,450,291  $ 206,408 By-Product Co-Product Method  Year Ended December 31, 2004  Method  Copper  Gold  Silver  Total (In Thousands)  Revenues, after adjustments shown below  $1,363,587  $1,363,587  $ 595,206  $  21,593  $1,980,386 Site production and delivery, before net noncash and nonrecurring credits shown below  764,206  526,191  229,682  8,333  764,206 Gold and silver credits  (616,799)  —  —  —  — Treatment charges  202,243  139,254 60,784  2,205  202,243 Royalty on metals  43,498  29,950  13,074  474  43,498 Net cash production costs  393,148  695,395  303,540  11,012   1,009,947 Depreciation and amortization  168,195  115,810  50,551  1,834  168,195 Noncash and nonrecurring credits, net  (4,075)  (2,806)  (1,225)  (44)  (4,075) Total production costs  557,268  808,399  352,866  12,802   1,174,067 Adjustments, primarily for copper pricing on prior period  open sales and silver hedging  11,928  13,369  —  (1,441)  11,928 Gross profit, before intercompany profit eliminations  $ 818,247  $ 568,557  $ 242,340  $  7,350  $ 818,247 Pounds of copper sold (000s)  991,600  991,600 Ounces of gold sold   1,443,000 Ounces of silver sold   3,257,800  Gross profit per pound of copper (cents)/per ounce of gold and  silver ($), before intercompany profit eliminations:  Revenues, after adjustments shown below  136.9  136.9  412.32  6.10 Site production and delivery, before net noncash and nonrecurring  credits shown below  77.1  53.1  159.17  2.56 Gold and silver credits  (62.2)  —  —  — Treatment charges  20.4  14.0  42.12  0.68 Royalty on metals  4.4  3.0  9.06  0.15 Net cash production costs  39.7  70.1  210.35  3.39 Depreciation and amortization  17.0  11.7  35.03  0.56 Noncash and nonrecurring credits, net  (0.4)  (0.3)  (0.85)  (0.01) Total production costs  56.3  81.5  244.53  3.94 Adjustments, primarily for copper pricing on prior period open sales  and silver hedging  1.9  1.9  0.15  0.10 Gross profit per pound/ounce, before intercompany profit eliminations  82.5  57.3  167.94  2.26 42 |  FREEPORT-McMoRan COPPER & GOLD INC.