Molybdenum Mines. FCX has two wholly owned molybdenum mines in North America – the Henderson underground mine and the Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrates, which are typically further processed into value-added molybdenum chemical products.

Operating Data. Following is summary consolidated operating data for the molybdenum mines for the first quarters of 2013 and 2012:

 

    Three Months Ended
    March 31,
    2013a   2012a
Molybdenum production (millions of recoverable pounds)b   12     9
         
Unit net cash cost per pound of molybdenumc   $ 7.32     $ 6.88
a.

Reflects operating data for the Henderson and Climax mines for first-quarter 2013, and operating data only for the Henderson mine for first-quarter 2012.

b.

Refer to consolidated operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the molybdenum mines, as well as from certain of the North and South America copper mines.

c.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs," beginning on page VI, which is available on FCX's website, "www.fcx.com."

 

 

 

The Climax molybdenum mine was commissioned in second-quarter 2012 and includes a new 25,000 metric ton per day mill facility. Molybdenum production from the Climax mine totaled 5 million pounds in first-quarter 2013 and is targeted at 20 million pounds for the year 2013 (with potential to produce up to approximately 30 million pounds per year, depending on market conditions). FCX intends to operate the Climax and Henderson mines in a flexible manner to meet market requirements.

Average unit net cash costs for FCX's molybdenum mines were $7.32 per pound of molybdenum in first-quarter 2013, compared with $6.88 per pound in first-quarter 2012, reflecting higher input costs at Henderson and the addition of production from Climax.

Based on current sales volume and cost estimates, FCX expects unit net cash costs for the molybdenum mines to average approximately $7.25 per pound of molybdenum for the year 2013 (reflecting approximately $7.50 per pound for Henderson and $6.90 per pound for Climax).