Southern Copper Corporation Q4 FY2025 earnings call

• Performance in 2025 set new records for net sales ($13.4B), adjusted EBITDA ($7.8B), and net income ($4.3B) driven by higher production volumes and better metal prices. - Copper prices increased, with LME copper up 21% and COMEX up 22% in Q4 2025. - Capital investments over $20.5B this decade, including Tia Maria project in Peru (24% complete by end 2025, expected to generate $20.2B in exports and $4.6B in taxes/royalties over 20 years). - ESG accreditations: Buenavista, Toquepala, and Cuajone mines received Copper Mark for tailings management; La Caridad Unit in Mexico awarded Casco de Plata for safety. - Southern Peru recognized by Peruvian government for largest number of Public Works for Taxes projects in 2025, investing $28M in 4 projects benefiting over 5,000 people.

In the fourth quarter of 2025, copper represented 75% of sales, with copper production in Q4 2025 at 242,172 tons (1.4% QoQ increase) and 2025 total copper production at 956,270 tons (1% below 2025 plan). For 2026, copper production is expected to be 911,400 tons. Molybdenum represented 8% of sales value in Q4 2025, with 2025 molybdenum production at 31,200 tons (7% above 2024) and 2026 expected at 26,000 tons. Silver represented 9% of sales in Q4 2025, with 2025 silver production at 24 million ounces (15% increase over 2024) and 2026 expected at 24 million ounces (2% decrease). Zinc represented 4% of sales in Q4 2025, with 2025 zinc production at 165,500 tonnes (36% increase due to Buenavista zinc and Santa Barbara mine production).

• 2026 copper production expected at 911,400 tons (4.7% decrease from 2025). - 2026 molybdenum production expected at 26,000 tons. - 2026 silver production expected at 24 million ounces (2% decrease from 2025). - Cuajone concentrator expansion under review, with submission to board needed for investment decision. - Tia Maria project expected to have $508M cash out in 2026, construction finished by mid-2027, with first production in second half 2027 and full capacity of 120,000 tons per year by 2028.

• Illegal miners in Los Chancas project area preventing project advancement; company working with authorities to regain control. - Lower ore grades at Toquepala and Cuajone impacting production volumes. - Currency fluctuations, with costs affected by peso and Peruvian sol appreciation against the dollar.

Q: Updated thoughts on cost guidance and currency impact?

A: Costs affected by peso and sol appreciation; operating costs expected to be relatively flat per pound due to lower production, but strong by-product production will help with credits.

Q: Ability to increase silver production in 2026?

A: Silver production guidance is 24 million ounces, but new zinc concentrator at Buenavista found good ore grades for zinc and silver, potentially improving silver production.

Q: Reason for molybdenum production decline in 2026?

A: Lower ore grades in areas affecting both copper and molybdenum production, with forecasted decline but hope to improve.

Q: Latest update on Cuajone concentrator expansion?

A: Still working on project, need to prepare information for board submission for investment decision.

Q: Timing of Tia Maria CapEx disbursement?

A: $508M forecasted cash out in 2026, with better payment terms reducing cash out, construction finished mid-2027, first production in second half 2027.