SOUTHERN COPPER CORP/ Q3 FY2024 earnings call

• Copper Market: London Metal Exchange copper price increased 10% from $3.79/lb in Q3 2023 to $4.17/lb in Q3 2024, with expected slight market surplus of ~100,000 tons in 2024. - Production: Copper production up 11% QoQ to 252,219 tons; Peru production up 18% due to higher mineral throughput at Cuajone and better grades/recoveries at Toquepala; Mexico production up 7% due to higher output at Buenavista and La Caridad. - Financial Results: Q3 2024 sales $2.9B, +17% y-o-y; adjusted EBITDA $1,685M, +31% y-o-y; net income $897M, +45% y-o-y. - Capital Investments: Current program >$15B; Tia Maria project had ~422 jobs as of Sep 2024, with $363M CapEx budget approved for 2025; Los Chancas project ongoing to eradicate illegal mining; Michiquillay project 30% complete in exploration. - ESG: Peruvian operations awarded Copper Mark and Molybdenum Mark; delivered engineering labs to UNISA; Cultural Center in Mexico won awards; Dr. Vagón program provided 6,000+ free medical services in Sep 2024. - Dividends: Announced quarterly cash dividend of $0.70/share and stock dividend of 0.0062/share, payable Nov 21, 2024.

Copper: Represented 77% of sales in the third quarter. Copper production was 252,219 tons in Q3 2024, a 11% quarter-on-quarter increase. For 2024, expected production is 975,000 tons, a 7% increase over 2023. Molybdenum: Represented 10% of sales value in Q3 2024. Average price was $21.68 per pound, down 8% from Q3 2023. Production increased 6% quarter-on-quarter in Q3 2024, with expected 2024 production of 28,200 tons. Silver: Represented 5% of sales value in Q3 2024. Average price was $29.43 per ounce, up 25% from Q3 2023. Mined silver production increased 22% quarter-on-quarter in Q3 2024, with expected 2024 production of 20.8 million ounces. Zinc: Represented 4% of sales value in Q3 2024. Average price was $1.26 per pound, up 15% from Q3 2023. Mine production increased 91% quarter-on-quarter in Q3 2024, with expected 2024 production of 120,300 tons, a 84% increase over 2023.

• Production: Expected 2025 copper production 978,300 tons; molybdenum 26,200 tons; zinc 154,600 tons; silver 22.9 million ounces. - CapEx: Approx $920M budgeted for 2025 CapEx, though subject to change. - Dividends: Board approves 50-50 cash/stock dividends, with liquidity considered for projects like Tia Maria.

• Protests: Unrelated protests in Peru not specifically affecting Tia Maria, but project progress monitored. - Regulatory: Peru proposing to shorten permit processes; Mexico's concession regime changes; illegal mining in Los Chancas affecting project timelines. - Water Supply: Monitoring water needs in Mexico, with pipeline permit process ongoing.

Q: Comment on the gap between copper production and sales this quarter and if it will reverse in Q4.

A: Part of copper production is in process at smelters/refineries; expect gap to close in Q4.

Q: Discuss Tia Maria project progress and local community support.

A: Over 400 employees working on Tia Maria with no interruptions; protests unrelated to project; budget approved for 2025 with initial pre-stripping work planned.

Q: Guidance for cash costs before by-products for 2024 and 2025.

A: Cash cost before by-products expected to remain around $2/lb, with better zinc/silver production in 2025 improving this.

Q: Plans for debt issuance in upcoming 12 months.

A: Will tap debt markets for financing Tia Maria and other projects, but no specific structure in place yet.

Q: Operating cash cost reconciliation details.

A: Clarification on typo in press release; treatment and refining charges should be negative.

Q: CapEx revision for Tia Maria and main items to be revised.

A: Considering technological improvements, road construction, and transportation changes; ballpark $1.8B CapEx, but still evaluating.

Q: Water situation in Mexico and pipeline for Buenavista.

A: Water needs met currently; pipeline permit process ongoing; no current water truck usage affecting costs significantly.

Q: Cost breakdown in Mexican pesos for Mexican mines.

A: ~39% of costs in Mexican pesos.