Southern Copper Corporation Q1 FY2025 earnings call

• Copper market: LME copper price increased 11% QoQ, estimated year-end deficit at ~300,000 MT, inventories cover ~1 week of global demand. - Production: Copper production stable at 240,226 tons in Q1 2025; Buenavista SX-EW cathode up 24%, Toquepala concentrate up 2%, but La Caridad down due to lower ore grades. - Financial results: Net sales $3B, +20% YoY; adjusted EBITDA $1,746M, +23% YoY; operating cash cost per pound of copper before by-product credits $2.05, -12% YoY. - Capital projects: Mexican projects: Minera Mexico to invest >$600M, El Arco project in detailed engineering; Peruvian projects: Tia Maria generated ~628 jobs, Los Chancas acquired land but faced illegal miner issues, Michiquillay exploration at 39%. - ESG: 2 high-performance schools in Peru, received Exceptional Company award, maintained CDP ratings. - Dividends: Quarterly cash dividend $0.70 per share, stock dividend 0.0099 shares per share.

Copper: Production was 240,226 tons in Q1 2025, representing 78% of sales. Net sales from copper rose 19% with a 4% increase in volume. Molybdenum: Represented 10% of sales value, production rose 9%, and sales of molybdenum increased 10% due to higher prices and volume. Silver: 6% of sales, production increased 14%, and sales of silver rose 58% due to higher prices and volume. Zinc: 4% of sales, mined zinc production increased 49% (driven by Buenavista zinc concentrator), and sales of zinc surged 59% due to better prices and volume.

• Copper production expected to be 968,200 tons in 2025, 2,400 tons above plan. - Molybdenum production expected 27,400 tons in 2025, 5% above plan. - Silver production expected 23 million ounces in 2025, 9% increase from 2024. - Zinc production expected 170,100 tons in 2025, in line with plan. - CapEx guidance: 2025 $1.5B, 2026 $2.3B, 2027-2028 $2.7B.

• Potential impact of trade wars between US and China on copper demand. - Protests at Los Chancas project in Peru, delaying development. - Market conditions affecting financing for projects like Tia Maria.

Q: I wanted to ask a few questions about the Mexican pipeline. You mentioned a few projects, Chalchihuites and another one I just Googled. So I just wanted to understand how imminent they might be, how incremental.

A: In the case of Angangueo, it's an underground project in Michoacán state with copper, silver, zinc, and lead; we're on initial steps. Chalchihuites is in exploration phase. Construction of a new smelter in Empalme is under consideration but not imminent at this time.

Q: Just a few quick questions. Maybe on the production guidance you've talked to 2025. Could you give us a sense whether you'd be able to maintain production in 2026 and 2027 as well? Or are you expecting a bit of a dip to come through?

A: We will have an adjustment in production for 2026, expecting a slight dip, but Tia Maria project will boost production from 2027 onwards, aiming for over 1 million tons by 2028 and 1.8 million tons by 2030.