Q4 2025 Southern Copper Corp Earnings Call

January 28, 2026

Five with US. This morning, we have southern Copper Corporation, Mr. Raul, Jacob Vice President Finance, Treasurer, and CFO, who will discuss the results of the company for the fourth quarter and year 2025, as well as answer any questions that you might have the information discussed on today's call may include forward.

Operator: Welcome to Southern Copper Corporation's fourth quarter and year 2025. With us this morning, we have Southern Copper Corporation, Mr. Raul Jacob, Vice President, Finance, Treasurer, and CFO, who will discuss the results of the company for the fourth quarter and year 2025, as well as answer any questions that you might have. The information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions to not place undue reliance on these forward-looking statements. Southern Copper Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. All results are expressed in full US GAAP. Now, I will pass the call on to Mr. Raul Jacob.

[noise] looking statements regarding the company's results and prospects.

Which are subject to risks and uncertainties actual results may differ materially and the company cautions to not place undue reliance on these forward looking statements.

So then copper corporation undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information future events or otherwise all results are expressed in full U S. GAAP now I will pass the call on to Mr. Raul Jacob.

Thank you very much <unk> morning, everyone and welcome to southern Copper's fourth quarter and full year 2025 results conference call.

Raúl Jacob: Thank you very much, Gigi. Good morning, everyone, and welcome to Southern Copper's Q4 and full year 2025 results conference call. At today's conference, I'm accompanied by Mr. Oscar González Rocha, CEO of Southern Copper and board member, as well as Mr. Leonardo Contreras, who is also a board member. In today's call, we will begin with an update on our view of the copper market and then review Southern Copper's key results related to production, sales, operating costs, financial results, expansion projects, and ESG. After this, we will open the session for questions. Our performance in year 2025 delivered new company records for net sales, Adjusted EBITDA, and net income. These milestones are a testament to the strength of our strategy, execution, and commitment to sustainable growth.

Today's conference on the campaign with Mr. Oscar Gonzalez Rocha CEO program, corporate and board member of Willis, Mr. Lenovo competitor with social Bornemann.

In today's call, we will begin with an update on our view of the copper market and then review southern Copper's key results related to production see operating cost financial results expansion projects and ESG. After this we will open the session for questions.

Poor performance in year 2025 delivered New company Records for net sales adjusted EBITDA and net income. These milestones are testament to the strength of our strategy execution and commitment to sustainable growth. This strong performance was primarily driven by a rise in buy.

Product production and improvement of prices for all our promos mine think production rose 36% year on year.

Raúl Jacob: This strong performance was primarily driven by a rise in by-product production and improved metal prices for all our products. Mine zinc production rose 36% year-on-year, bolstered by an additional 52,500 tons from the Buenavista Zinc Concentrator. Mine silver production increased 15% in last year, primarily driven by higher production at all our mines. Molybdenum production was 31,200 tons in 2025, which was 7% above the figure in 2024. The combination of higher production volumes and better copper and by-product prices enabled us to achieve record sales of $13.4 billion. This is 17% more than in 2024.

Bolstered by an additional 52500 tonnes from the win of Easter zinc concentrator.

Mined silver production increased 15% in this year and last year.

Primarily driven by higher production at all our mines.

Molybdenum production was 31200 tons in 2025, which was 7% above the figure in 2024.

The combination of higher production volumes and better corporate on byproduct prices enabled us to achieve record sales of $13 4 billion order. This is 17% more than in 2024, a record high for EBITDA of $7 8 billion.

Raúl Jacob: A record high for EBITDA of $7.8 billion, that's 22% on top of 2024, and net income of $4.3 billion, which is 28% higher than 2024. We remain firmly committed to enhancing productivity and cost efficiency, driven by a strategy anchoring discipline and focus on achieving a long-term goal to produce 1.6 million tons of copper at the lowest possible, most competitive cost per pound. Looking into the metal markets and prices. For copper, the London Metal copper price increased 21% from an average of $4.16 per pound in Q4 2024 to $5.03 per pound this past quarter.

22% on top of 2024, and net income of $4 3 billion, which is 28% higher than 2000 people.

We remain firmly committed to enhancing productivity and cost efficiency driven by our strategy are incurring discipline and focus on achieving our long term goal to produce one 6 million pounds of copper at the lowest possible most competitive cost per pound.

Looking into the metal markets and prices for copper they don't know metal copper price increased 21% from an average of $4 16 per pound in the fourth quarter of 2024 to five dollar and three per pound these pad.

Last quarter.

The comex market, we saw a 22% increase averaging during the past quarter $5.15 per pound.

Raúl Jacob: For the COMEX market, we saw a 22% increase, averaging during the past quarter $5.15 per pound. Based on current supply and demand dynamics, we're currently estimating a copper market deficit of about 320,000 tons for 2026. Copper inventories worldwide, the sum of the London Metal Exchange, COMEX, and Shanghai, and bonded warehouses, were as of 26 January, this past Monday, approximately 14 days of global demand. Let's look at Southern Copper's production for the past quarter. Copper represented 75% of our sales in the fourth quarter of 2025. Copper production registered an increase of 1.4% in the fourth quarter of last year on a quarter-over-quarter terms to stand at 242,172 tons.

Based on current supply and demand dynamics. We're currently estimating a copper market deficit of about 320000 tons for 2026.

Copper inventories worldwide.

So some of the London metal exchange Comber, Comex uninsured Shanghai in bonded warehouses.

We're also <unk>.

Generally 26. This is perhaps this past Monday, approximately 14 days of global demand.

Let's look at southern Copper's production for the past quarter copper represented 75% of our sales in the fourth quarter of 2025.

Corporate production, where you saw an increase of one 4% in the fourth quarter of last year.

On a quarter over quarter terms to 242172 tons.

Our quarterly result reflects higher production of our cardiac stock at Pilar well honed in intermodal.

Raúl Jacob: Our quarterly result reflects higher production at our La Caridad, Toquepala, Cuajone, and IMSA mine, which was attributable to better ore grades and recoveries. These positive results were partially offset by a decrease in production at our Buenavista operation. For 2025, copper production decreased 1.8% to 956,270 tons. This figure is 1% lower than our 2025 plan of 965,000 tons. Our year-on-year result reflects lower production at our Buenavista and the Peruvian mines, partially offset by a rise in production at our IMSA and La Caridad mines. For 2026, we expect to produce 911,400 tons of copper, which represents a decrease of 4.7% compared to 2025's final front....

Which was attributable to better ore grades and recoveries.

These positive results were partially offset by a decrease in production at our Buena Vista operation.

For 2025 copper production decreased one 8%.

Two 956000 270 million tons.

This figure is 1% lower than our 2025 plan of 965000 tons.

Year on year result reflects lower production with our winner of Easter and the Peruvian mines, partially offset by a rise in production at our <unk> and like how do you have in mind.

For 2026, we expect to produce 911400 tons of copper, which represents a decrease of four 7% compared to 2025 on newsprint.

This is slight drop was primarily attributable to lower ore grades at our Peruvian operations.

Raúl Jacob: This slight drop was primarily attributable to lower ore grades at our Peruvian operations. For molybdenum, it represented 8% of the company's sales value in Q4 2025, and is currently our first by-product. Molybdenum prices averaged $22.75 per pound in the quarter, compared to $21.61 in Q4 2024. This represents an increase of 5%. Molybdenum production increased 10% in Q4 of last year compared to Q4 2024. This was mainly driven by an increase in production at Toquepala and Cuajone mines, due to higher ore grades at both operations. These results were partially offset by a decrease in production at the Buenavista and La Caridad mine.

Yeah.

For molybdenum it represented 8% of the company face value in the fourth quarter of 2025 and is currently our first by product.

<unk> prices averaged $22 75 per pound in the quarter compared to 21 $21.

And 61 in the fourth quarter of 2024.

This represents an increase of 5%.

Molybdenum production increased 10% in the fourth quarter of last year compared to the fourth quarter of 2024.

This was mainly driven.

By an increasing production and pocket Pal and <unk> mines due to higher ore grades at both operations.

These results were partially offset by a decrease in production at the Buenavista and La Caridad mines.

Molybdenum production increased seven 4% year on year in 2025.

Raúl Jacob: Molybdenum production increased 7.4% year-over-year in 2025, after production grew at Toquepala and Caridad, and was partially offset by lower production at Buenavista and Cuajone. In 2026, we expect to produce 26,000 tons of molybdenum. For silver, it represented 9% of our sales in Q4 of last year, with an average price of $54.48 per ounce in the quarter, which is reflected in an increase of 74%. Silver is currently our second by-product. Mine silver production increased 15% in Q4 2025 versus the same period of the prior year. It was boosted by production growth at all our mines. Refined silver production increased 10% quarter-over-quarter, driven mainly by increased production at all our refineries.

Production grew at stockpile on that.

And was partially offset by lower production at <unk>.

In 2026, we expect to produce 26000 tons of molybdenum.

For silver it represented 9% of our sales in the fourth quarter of last year with an average price of $54 48.

For homes in the quarter.

Which is reflected in an increase of 74%.

Silver is currently our second byproduct.

Yes.

Mined silver production increased 15% in the fourth quarter of 2025 versus the same period of the prior year.

This was boosted by production growth at all our mines.

Refined silver production increased 10% quarter over quarter, driven mainly by increased production at all our refineries.

In 2025.

We produced 24 million ounces of silver, which represents an increase of 15% over 2024 production level.

Raúl Jacob: In 2025, we produced 24 million ounces of silver, which represents an increase of 15% over the 2024 production level. This was due to higher production at all our mines. In 2026, we expect to produce 24 million ounces of silver, a slight decrease of 2% compared to 2025. For zinc, it represented 4% of our sales in the Q4 of 2025, with an average price of $1.44 per pound in the quarter. This represents a 4.3% increase compared to the Q4 of 2024. Zinc is currently our third by-product. Zinc mine production increased 7% quarter-over-quarter, in total, 46,223 tons.

This was due to higher production at all our mines.

In 2026.

We expect to produce 24 million ounces of silver a slight a slight decrease of 2% compared to 2025.

Or think Peter represented 4% of our sales in the fourth quarter of 2025 with an average price of $1 44 per pound in the quarter.

This represents a four 3% increase compared to the fourth quarter of 2024.

<unk> is currently our third byproduct.

Inc mine production.

Increased 7% quarter on quarter in total 46223 tons.

Growth was mainly driven by higher production at the Buenavista zinc concentrator and by an increasing production at San Martin Mine.

Raúl Jacob: Growth was mainly driven by higher production at the Buenavista Zinc Concentrator, and by an increase in production at San Martín mine. Refined zinc production increased 2% in Q4, vis-à-vis Q4 2024. Zinc production for the full year 2025 increased 36%, due to additional production of 52,500 tons from Buenavista Zinc, and an upswing in production at our Santa Bárbara mine. This was partially offset by lower production at our Charcas and San Martín operations. For 2025, we expect to produce 165,500 tons of zinc. Financial results. For Q4 2025, sales were $3.9 billion. This is $1.1 billion higher than sales in Q4 2024.

Refined zinc production increased 2% in the fourth quarter vis vis the fourth quarter of 2024.

Zinc production for the full year 2025 increased 36% due to additional production of 52500 tonnes from winter at least the thing on an upswing in production at our San <unk> mine.

This was partially offset by lower production at our tower customers some marketing operations.

2025, we expect to produce 165500 tonnes of zinc.

Financial results.

For the fourth quarter of 2025 sales were $3 $9 billion.

One 1 billion higher than sales in the fourth quarter of 2024.

Corporate sales increased 39% and volume was up 3% supported by better prices in the case of SME was 21% higher in the case of <unk>, 22%.

Raúl Jacob: Copper sales increased 39%, and volume was up 3%, supported by better prices. The cash of LME was 21% higher, and the cash of COMEX, 22% higher. Regarding our main by-products, we reported higher sales for molybdenum of 6% due to an increase of volume of 10% and better prices. Zinc increased its value—the value of sales in 23% due to higher volume for 21% and better prices. Silver increased its value in 106% due to an increase in volume of 11% and better prices. 2025 net sales hit a record high of $13.4 billion, topping the 2024's net sales by 17%. This expansion was mainly driven by higher sales volume for molybdenum, zinc, and silver.

Regarding our main byproducts, we reported higher sales for molybdenum of 6% due to an increase of volume of 10% and better prices.

<unk> increased its values if the value of sales in 23% due to higher volume for 21% and better price.

Silver increase its value in 106% due to an increase in volume of 11% and better price.

2025, net sales hit a record high of $13 4 billion pumping the 2024 net sales by 17%.

This expansion was mainly driven by higher sales volume for molybdenum.

Inc, and silver.

Growth.

In phase volumes remained stable or copper growth in sales volume remained stable in 2000.

Raúl Jacob: For copper, growth in sales volume remained stable in 2023. Operating costs. Our total operating costs and expenses increased $282 million, that is a 19% when compared to the fourth quarter of 2024. The main cost increments were in workers' participation, purchase copper, inventory consumption, and operations contractor and constructors and services. We have also, in the quarter, a one-time adjustment of $60 million for asset retirement obligations at the Mexican operations, mainly at the Buenavista one. These cost increments were partially compensated by lower labor costs at the Peruvian operations.

Oh.

Operating cost our total operating cost and expenses increased $282 million that is a 19% when compared to the fourth quarter of 2024.

The main cost increments were in workers' participation.

Purchased copper and inventory.

<unk> consumption and operations contractor and scope for parts and services.

We have also in the in the quarter.

A onetime adjustment of $60 million for asset retirement obligations at the Mexican operations, mainly at that would not be stellar.

These cost increments were partially compensated by labor lower labor costs.

Cerulean approach.

The fourth quarter 2025, adjusted the beat that was $2 3 billion.

Raúl Jacob: The Q4 2025 adjusted EBITDA was $2.3 billion, which represented an increase of 53% with regard to the $1.5 billion registered in the Q4 2024. The adjusted EBITDA margin in the Q4 was 60% versus 54% in the Q4 2024. For the year 2025, the adjusted EBITDA hit a record high of $7.8 billion, reflecting a robust 22% increase over the figure in 2024. The adjusted EBITDA margin in 2025 was 58% versus 56% in 2024. Cash cost. Operating cash cost per pound of copper before by-product credits was $2.29 per pound in the Q4 2025.

Which represented an increase of 53% with regard to the $1 5 billion registered in the fourth quarter of 2024.

The adjusted EBITDA margin in the <unk>.

Fourth quarter.

With 60% versus 54% in the fourth quarter of 2024.

For the year 2025, adjusted EBITDA keep a record high of seven 8 billion, reflecting a robust 22% increase over the figure in 2024.

The adjusted EBITDA margin in 2025 was 58% versus 56% in 2020.

Cash cost.

Operating cash cost per pound.

Of copper before byproduct credits was $2.79 per pound in the fourth quarter of 2025. This is <unk> <unk> higher than the value for the third quarter of $2 23 per pound.

Raúl Jacob: This is $0.06 higher than the value for the third quarter of $2.23 per pound. This 3% increase in the operating cash cost was driven by higher cost per pound from the production costs, administrative expenses, and lower premium, which were partially offset by lower treatment and refining costs. Southern Copper operating cash costs, including the benefit of by-product credits, was $0.52 per pound in the fourth quarter of last year. This cash cost was $0.10 higher than the cash cost of $0.42 for the third quarter of 2025. Regarding by-products, we have a total credit of $920 million, or $1.77 per pound, in the fourth quarter of 2025.

These 3% increasing the operating cash cost was driven by higher cost per pound from the production costs administrative expenses and lower premiums, which were partially offset by lower treatment and refining costs.

Southern copper operating cash cost, including the benefit of byproduct credits was <unk> 52 per pound.

Fourth quarter of last year. These.

These cash costs with 10 higher than the cash cost of 42.

For the third quarter of 2025.

Regarding byproducts, we have a total credit of $920 million or $1 77 per pound in the fourth quarter of 2025.

These figures represent a 3% increase when compared to a credit of $895 million or $1 81 per pound in the third quarter of 2025.

Raúl Jacob: These figures represent a 3% increase when compared to a credit of $895 million, or $1.81 per pound, in Q3 2025. Total credits have increased for zinc, silver, and sulfuric acid, and decreased for molybdenum. 2025 operating cash cost per pound of copper before by-product credit was $2.17 per pound. And this was, it was higher than the $2.13 per pound that we reported in 2024. This is a 4-cent increase. Net of by-product credit, 2025 cash cost was $0.58 per pound.

Those credits have increased for zinc silver and sulfuric acid.

And decreased for molybdenum.

2025.

The operating cash cost per pound of copper before byproduct credits was $2.17 per pound.

This was.

Okay.

It was higher than the $2 13.

Hence for pound that we reported in 2024 this is a 4% increase.

Napa way productivity 2025 cash costs.

58 cents per pound.

This 31 reduction in the cash cost compared to the 89.

Raúl Jacob: This $0.31 reduction in the cash cost compared to the $0.89 cents per pound reported in Q4, for the full year, excuse me, for the full year 2024, and this was mainly attributable to a $0.34 increase in by-product revenue credits. Net income in Q4 was $1,308 million, which represents a 65% increase with regard to the $784 million registered in Q4 of 2024. The net income margin in the past quarter was 34% versus 29% in Q4 of 2024. 2025 net income hit a record high of $4.3 billion, which is 28% above the figure in 2024.

Per pound reported in the fourth quarter.

For the full year excuse me for the full year 2024, and this was mainly attributable to a 34% increase in byproduct revenue Trish.

Yeah.

Net income in the fourth quarter.

1300, $8 million, which represents a 65% increase with regard to the 794 million raised during the fourth quarter of 2010 before.

Net income margin.

In the past quarter was 34% versus 29% in the fourth quarter of 2024.

2025, net income hit a record high of $4 3 billion, which is 20%.

Both the figure in 2020 for this.

These improvements were driven by an increase in net sales and by our strict cost control measures.

Raúl Jacob: These improvements were driven by an increase in net sales and by our strict cost control measures. The net income margin in 2025 was 32% versus 30% in 2024. Cash flow from operating activities in 2025 was $4.8 billion, which represented an increase of 8% over the $4.4 billion posted in 2024. This result, which was mainly fueled by higher net income, was partially offset by an increase in net operating assets, particularly accounts receivables. For capital investments, our current capital investment program for this decade exceeds $20.5 billion and includes investments in projects in Peru and Mexico.

Net income margin in 2025 was 32% versus 30% in 2024.

Cash flow from operating activities in 2025 was $4 8 billion, which represented an increase of 8% over the $4 4 billion.

Posted in 2024.

As a result, which was mainly fueled by a higher income was partially offset by an increase in net operating taxes.

Particularly accounts receivables.

For capital investments, our current capital investment program for this decade exceeds $25 billion in.

And includes investments in projects in Peru, and Mexico.

In 2025, we spend $1 3 billion on capital investments, which reflected a 29% increase year on year and represented 30% of net income in 2025.

Raúl Jacob: In 2025, we spent $1.3 billion on capital investments, which reflected a 29% increase year-over-year and represented 30% of net income in 2025. Given that there is a description of our main capital project in Southern Copper's press release, I'm going to focus on updating new developments for each of them. Regarding the Peruvian projects, I'm focusing on the Tía María project currently under construction at the Arequipa region in Peru. This project represents a landmark investment for Peru and the Arequipa region. The current estimated capital budget is $1.8 billion. As of the end of 2025, the project was 24% complete.

Given that there is a description of our main capital project in Southern Copper's press release Im going to focus on updating new developments for each of them.

Regarding the Peruvian projects and focusing on the Tia Maria project currently under construction or debt or keep our reunion.

This project represents a landmark investment for Peru, and day to keep our.

The current estimated capital budget is $1 8 billion.

As of the end of 2025, the freight was 24% complete.

At current copper prices Tia Maria will generate $22 billion in exports and $4 6 billion in taxes and royalties over its first 20 years of operation.

Raúl Jacob: At current copper prices, Tía María will generate $20.2 billion in exports and $4.6 billion in taxes and royalties over its first 20 years of operation. The project has already created 3,589 jobs, with strong focus on local hiring. When operations begin in 2027, Tía María will provide 764 direct jobs and nearly 6,000 indirect jobs, demonstrating our commitment to sustainable growth and long-term regional development. As of 31 December 2023, the company had committed about $800 million to different project activities. Large-scale earth-moving works have mobilized 1.7 million tons of material from the La Tapada deposit. Purchase orders to acquire metallic structures for secondary and tertiary crushing has been issued for the dry area.

The project has already created 3589 jobs with strong focus on local hiring.

When operations beginning in 2027, Tia Maria we provide 764 direct jobs and nearly 6000 indirect jobs, demonstrating our commitment to sustainable growth and long term.

No.

As of December 31 of last year, the company have committed about $800 million to different pre activity.

Largest scale Earth moving works mobilized one 7 million tons of material from the <unk> deposit.

Purchase orders to acquire metallic structures for secondary and tertiary crushing has been issue for the dry area.

The Sx EW process level state of the art technology has been selected for our May four our main equipment.

Raúl Jacob: At the SX-EW process level, state-of-the-art technology has been selected for our main equipment. Access roads and platforms, as well as temporary contractor camp, has been completed. Regarding energy supply, all earthworks for the electrical main substation has been completed. Foundation works are currently underway, and the transmission line is being built. Next, efforts will focus on developing the main and secondary components of the project's dry and wet areas and setting up a temporary camp. For Los Chancas in Apurímac, as of December of last year, we continued to implement environmental and social programs in the communities of Tapairihua and Tiaparo, which are located within the direct area of influence of the Los Chancas mining deposit. Despite these efforts, the presence of illegal miners within the project area has prevented the project from advancing.

Access road and platforms as well as temporary contractor comp has been completed.

Regarding energy supply.

<unk> for the electrical main substation has been completed found.

<unk> Foundation worked are currently underway and the transmission line is being built.

Airports will focus on developing the main and secondary components of the projects dry and wet area and setting up a temporary Pam.

Quarter of China cutting our polymer.

Of December of last year, we continued to implement environmental and social programs in the communities of <unk> and <unk>, which are located within the direct area of influence of the those channel cost mining deposit.

Despite these airports the presence of illegal miners within the <unk> area has prevented the praise from our dancing in this context. The company continues to take actions with the relevant authorities to regain control of the project area.

Raúl Jacob: In this context, the company continues to take actions with the relevant authorities to regain control of the project area. For the Michiquillay project in Cajamarca, also in Peru, this is a world-class greenfield mining project that we expect to produce 225,000 tons of copper per year, with an estimated investment of about $2.5 billion. The comprehensive review of the geological information to estimate the project mineral resources has been duly audited in accordance with the SEC Mining Disclosure Standards and the Regulation S-K 1300. Subsequently, the company intends to use this information to estimate mineral reserves and develop the corresponding mine plan.

Accordingly, <unk> America also in Peru. This is.

This is a world class Greenfield mining project that we expect to produce 225000 tons of copper per year with an estimated investment of about $2 $5 billion a.

A comprehensive review of the geological information to estimate the project project mineral resources has been duly all of this in accordance with the SEC mining disclosure standards under regulation S. K 1300.

Subsequently the company intends to use this information to estimated mineral reserves and develop the corresponding mine plan.

Regarding environmental social and corporate governance or ESG practices.

Raúl Jacob: Regarding environmental, social, and corporate governance or ESG practices, the company, in recognition of our efforts in the ambit of prevention and minimizing risk, our Buenavista mine in Sonora, Mexico, as well as our Toquepala and Cuajone mines in Peru, received the accreditation from the Copper Mark for compliance with the global industry standard on tailings management, set forth by the International Council on Mining and Metals. This accreditation guarantees that best international practices are followed to provide authorities, the community neighboring our operations, and other stakeholders with assurances that operations are safe. For the SX-EW plant at the La Caridad unit in Sonora, Mexico, this unit has been awarded with the Casco de Plata, the Silver Helmet, in the category of metallurgical plant with up to 500 workers. This is in recognition of its status as one of the country's safest operations.

The company in recognition of our efforts in the Mdx automation prevention are minimizing risk our buenavista mining Sonora.

Mexico as well as our <unk> mines in Peru received direct radiation from the corporate Mark for compliance with the global industry standard on tailings management set forth by the international currencies on mining and metals.

This accreditation guarantees that best international practices are follow to produce to.

Providing authorities the community neighboring our operations and all of our stakeholders with assurances that operations are safe.

For the Sx EW plant at the La Caridad unit in Sonora, Mexico. This unit has been awarded with the cash flow that plateau.

Silver helmet in the category of metallurgical plan with up to 500 workers business in recognition of its status as one of the country's safest operations. This recognition, which was better but the Mexican mining chamber, none is coming next.

Raúl Jacob: This recognition, which was bestowed by the Mexican Mining Chamber, known as CAMIMEX, it was handed during the opening ceremony of the 36th International Mining Convention in Mexico. This attests to the company's commitment to risk prevention and employee safety. In the case of the Peruvian branch, Southern Peru, was recognized by the Peruvian government as a mining company with the largest number of projects award under Public Works for Taxes in 2025. The company is currently rolling out four investments for a total of $28 million that would benefit more than 5,000 people. Over time, Southern Copper has worked on 40 projects through this mechanism and has invested more than $400 million in infrastructure to bridge social gaps.

It was.

Sure.

During the opening ceremony of the 36 International mining convention in Mexico.

And this attests to the company's commitment to risk prevention and employee safety.

In the case of the Peruvian branch Southern Peru.

West recognized by the Peruvian government as a mining company with the largest number of projects award under public works for taxes in 2025.

The company is currently rolling out foreign investments for a total of $28 million that would benefit more than 5000 people over time.

Corporate <unk> work on 40 projects through this mechanism and has invested more than $400 million in infrastructure to breach social gaps.

In 2025 also about 5000 residents benefit from the health campaigns conducting the communities near our remaining operations and projects in the Peruvian region sophomore Caillois at a keeper Apurimac and cahaba.

Raúl Jacob: In 2025, also about 5,000 residents benefit from the health campaigns conducted in the communities near our mining operation and projects in the Peruvian regions of Moquegua, Arequipa, Apurímac, and Cajamarca. Teams of specialists in internal medicine, ophthalmology, pediatrics, gastroenterology, among other disciplines, visit communities to provide comprehensive medical care. This is on the nearby communities of our operations. Regarding dividends, as you know, it is the company policy to review our cash position, expected cash flow generation from operations, capital investment plans, and other financial needs at each board meeting to determine the appropriate quarterly dividend. Accordingly, on 22 January 2026, Southern Copper Corporation announced a quarterly cash dividend of $1 per share of common stock, and a stock dividend of 0.0085 shares of common stock per share.

Teams of specialists in internal medicine ophthalmology and.

In gastroenterology among other disciplines visit communities to provide comprehensive medical care. This is on the nearby communities of our operations.

Regarding.

Dividends as you know it is the company policy to review, our cash position expected cash flow generation from operations.

Capital investment plan and other financial needs at each board meeting to determine the appropriate quarterly dividend.

Accordingly on January 22, 2026, Southern Copper Corporation announced a quarterly cash dividend of $1 per share of common stock and the stock dividend 0.008 shares of common stock for sure.

This is payable on February 27 of this year to shareholders of record at the close of business on February 10.

Raúl Jacob: This is payable on 27 February of this year to shareholders of record at the close of business on 10 February. Ladies and gentlemen, with these comments, we end our presentation today. Thank you very much for joining us, and now we would like to open the forum for questions.

Yes.

Ladies and gentlemen, with these comments we end our presentation today. Thank you very much for joining us and now we will like to open the forum for questions.

Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again please.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Timna Tanners from Wells Fargo.

Please stand by while we compile the Q&A roster.

Okay.

Our first question comes from the line of Timna Tanners from Wells Fargo.

Hey, good morning, everyone.

I wanted to start off with any updated thoughts on your cost guidance and how you're seeing that shape up in particular, given that currency inflation year in local currencies.

Timna Tanners: Hey, good morning, everyone. Wanted to start off with any updated thoughts on your cost guidance and how you're seeing that shape up, in particular, given the currency inflation, your local currencies, versus the dollar. Anything you can do to combat that?

The dollar or any anything you can do to combat that.

<unk>.

Mhm.

Well.

We I think we have passed the most.

Raúl Jacob: Mm-hmm. Well, I think we have passed the most, the worst part of the inflation that we had after COVID, mainly. Our costs are currently being more affected by currency appreciation for the peso and the Peruvian Sol than specific inflation from Mexico or Peru.

The worst part of the inflation that we have.

After COVID-19.

Mainly.

Our costs are.

Our.

Currently being more affected by currency appreciation for the peso and the Peruvian Sol done specific inflation from from.

Mexico <unk>.

Okay do you have any guidance on when we might see that costs before byproduct set up in the next quarter or the year ahead.

Timna Tanners: Okay. Do you have any guidance on where we might see the cost before byproducts shape up in the next quarter or the year ahead?

So sorry could you repeat it please.

Oh sure any guidance on how we could expect to see cost shaping up into the next quarter and a year.

Raúl Jacob: So sorry, could you repeat it, please, Timna?

Timna Tanners: Oh, sure. Any guidance on how we could expect to see costs shaping up into the next quarter and the year?

Okay.

No.

For core operating costs, we believe it's going to be relatively flat.

Raúl Jacob: No, it's for operating costs; we believe it's gonna be relatively flat on a per pound basis since we will be producing a little bit less than last year. It may have some impact on that. But then, we have a very strong production of by-products, which is something that was considered as part of our mining operations for last year and this year. So that is going to help us on the credits, for sure.

On a per pound basis, since we will be producing a little bit less than last year.

It may have some some impact from that.

Then we have.

We have a very strong production of by products, which is something that was.

Consider as part of the as part of our mining operations for last year and this year. So so that is going to help us fill in the credits for sure.

Okay helpful. I'll ask one more and hand it off.

You know this past year, you started out with a lower guidance for silver production and at the end of the year were able to exceed your expectations.

Timna Tanners: Okay, helpful. I'll ask one more and hand it off. You know, this past year, you started out with a lower guidance for silver production, and at the end of the year, were able to exceed your expectations. And of course, silver has been, you know, quite hot. Any ability in light of these strong prices to maybe eke out some more tons of, or ounces, I should say, of, of silver in 2026 than your initial expectations?

<unk> silver and white hot any ability in light of these strong ties to maybe some more tonnes or ounces I should fans of silver in 2026 and your initial expectations.

Well, we're really gave a guidance on the silver production for this year.

Raúl Jacob: Well, we already gave a guidance on the silver production for this year. Obviously, we would like to improve on that, but at this point, that's basically what we are expecting. It's in silver, about 24 million ounces. One thing that we have done in 2025, and we're still maintaining, is that our new zinc concentrator of Buenavista, that has a right to the mine of the zinc area of the mine. We have found a pocket of very good ore grades for both zinc and silver, and that has made us to focus this concentrator that can switch between copper and zinc, to focus only on zinc.So that's, that's one of the reasons why we have a much stronger silver production in last year regarding silver specifically and zinc. We're still working in that area, so that's why we're holding to a very good silver expectation on production, and hopefully it could improve.

Obviously, we would like to improve on that but at this point that that's basically what we are expecting it to.

It's in silver about 24 million ounces, one thing that we have done in 2025 and were still maintaining means that our new zinc concentrate are of winner of Easter.

That's had.

Has.

<unk> has a right to the mind of the sink area of the mine.

We have found the pocket or very good.

Ore grades for both zinc and silver and that has made us to focus these concentrator that can switch between copper and zinc to focus only on zinc. So that's that's one of the reasons why we have a much.

Stronger the silver production.

Raúl Jacob: So that's, that's one of the reasons why we have a much stronger silver production in last year regarding silver specifically and zinc. We're still working in that area, so that's why we're holding to a very good silver expectation on production, and hopefully it could improve.

In last year regarding silver specifically in sync.

We're still working in that area so well.

That's why we're we were holding to.

Very good.

<unk> petition when production and hopefully could improve.

Okay. That's helpful. Thanks very much.

Sure, let me say that.

Timna Tanners: Okay, that's helpful. Thanks very much. Best of luck.

If we were to have the prices, we're having for silver.

Raúl Jacob: Sure. Let me say, Timna, that if we were to have the prices as we're having for silver this year with the expectation of production that we have, silver may become our main by-product.

This year.

<unk>.

The expectation of production that we have let's see where it may become ours our main byproduct.

Thank you. Our next question comes from the line of Emerson Deanna from Goldman Sachs.

Operator: Thank you. Our next question comes from the line of Emerson Vieira from Goldman Sachs.

Hi, guys. Thanks for the time I have a couple of questions.

First one on <unk>, just trying to understand her better.

Emerson Vieira: Hi, guys. Thanks for the time. I have a couple of questions. First one on by-products. Just trying to understand here better the reason why molybdenum production in 2026 should decline. I understand that you guys have been prioritizing zinc production at Buenavista zinc concentrator, but that production should also decline in 2026. So just trying to understand here the reason for the declining molybdenum production for next year. That's the first question, and then I'll follow up with the remaining ones.

And why molybdenum production in 2010 or six should decline.

I understand that you guys have been prioritized Lansing prediction.

Mr. Zinc concentrate are but that relationship also declined 10, 6%.

Just trying to understand here are the reasons for the declining market prediction for next year.

That's a good question and follow up with the remaining ones.

Okay on the on the molybdenum production, you mean that the production because it was a little bit comfortable when you speak of Emerson you meant our molybdenum production.

Raúl Jacob: Okay. On the molybdenum production, you mean the production? Because it was a little bit cut when you speak, Emerson. You meant the molybdenum production?

Yeah, I mean, yeah towards development that if all of us.

<unk> thousand six first of all kind of mix.

Emerson Vieira: Yeah. I mean, yeah, for 2025, on, like, 30 KT, and 26, for 2026.

Where we're getting into some areas of the operations, where we have we.

Raúl Jacob: We're getting into some areas of the operations where we have lower ore grades for both copper and molybdenum. Usually, molybdenum it could improve a little bit or in this kind of circumstances we have a little bit more molybdenum, but at this point, this is what we are forecasting. So hopefully we will be improving on what I mentioned as our forecast for the year.

We have a lower ore.

Great.

For both copper and molybdenum usefully molybdenum it should it could improve a little bit over.

Useful in this kind of a circumstance if we have a little bit more molybdenum, but at this point. This is what we are forecasting. So hopefully we will be we will be improving on whether I mentioned, that's our forecast towards the year.

Alright, and then second one on the Quad.

Concentrate or can you guys provide us the latest update here when expect.

Emerson Vieira: All right. And then second one on Cuajone concentrator. Can you guys provide us with the latest update here? When expect a investment decision to be made, for instance?

There's going to be managing for instance.

Well, we havent.

We have to prepare all the all the information on the on a possible <unk> expansion.

Raúl Jacob: Well, we haven't, we have to prepare all the, all the information on the, on a possible Cuajone expansion, and that has to be submitted to our board. We haven't done it yet. We're still working on that, on this project. We see it very positively, but we need to finish our work and present it to the board for a decision.

And that has to be submitted to our board.

We haven't done it yet we're still working on that on this project.

We see it very profitability, but.

Need to finish our work and presented to the board for a decision.

Alright, and then the last one on Tia Maria.

The committed capex of $800 million.

Emerson Vieira: All right. Then the last one on Tía María. I mean, the committed CapEx of $800 million is roughly the entire amount you guys should disburse this year. So just trying to understand here.

It's roughly the entire amount.

Should this burst.

This year.

Trying to understand here.

About the timing of this.

I'm, so sorry Emerson.

There is some noise when you speak if you could you repeat it.

Raúl Jacob: I'm sorry

Emerson Vieira: ... about the timing of this.

Raúl Jacob: I'm so sorry, Emerson. There's some noise when you speak. Could you repeat, please?

Okay.

You guys mentioned that there is already $800 million of committed capex.

Emerson Vieira: Okay, I will repeat. On Tía María, you guys mentioned that there is already $800 million of committed CapEx, and that's roughly the amount you guys plan to spend this year at Tía María. So just trying to understand here, the timing, if this CapEx is more skewed towards second half of this year. And then in order to deliver the 30,000 tons in 2027, when should the construction be completed in your estimates?

And that's roughly.

The amount you guys claim.

And this year.

So just trying to understand here the timing if this capex is more skewed towards.

The second half of this year and then in order to deliver the 30000 tons in 2027.

Concentration will be completed in the EUR estimates.

Okay.

As I say, we are we have the <unk>.

Raúl Jacob: Okay. As I say, we have a commitment of about $800 million. Of those, in terms of cash flow, we should be spending a little bit north of $500 million. $508 million is our current forecast for cash out during 2026 related to Tía María. Construction should be finished by the end of the first half of 2027, and we are expecting to produce about 30,000 tons in the second half of 2027, and then in 2028 and on, at full speed of 120,000 tons per year.

Commitments of about $800 million.

Those in terms of cash flow, we should be we should be spending a little bit north of $500 million five.

<unk> hundred $8 million with our current forecast.

Cash out during 2026 related to Cambodia.

Construction should be finished by the by the end of the first half of 2027.

And we are expecting to produce about 30000 tons in the second half of 2027, and then in 2008 unknown unknown at full speed of 120000 tons per year.

Alright.

Confirm my understanding here you mentioned that you expect.

Emerson Vieira: All right. So just to confirm my understanding here, you mentioned that you expect to disburse $500 million in Tía María in 2026. That's it?

Disbursed, a $500 million in Shanghai in 2010.

Yes.

That's why I say 500, then.

505.

Raúl Jacob: Yes. That's what I said. $508 million is our current forecast. Cash-

<unk> hundred $8 million in our current markets.

And how does how does that compare to the roughly $900 million.

Emerson Vieira: All right. And how does that compare to the roughly $900 million that was disclosed in the preliminary guidance? I mean, what's the reason for this cut in about half?

<unk> disclosed that in the.

Preliminary guidance.

The reason for it.

This cat and about half.

So sorry could.

Could you repeat it please.

Yes, I mean, you mentioned that.

Raúl Jacob: I'm so sorry, Emerson. Could you repeat it, please?

You guys play into this but it's about $100 million.

Emerson Vieira: Yeah. I mean, you mentioned that you guys plan to disburse $500 million for Tía María in 2026, right? But looking at the company's presentation, the prior guidance mentioned that it was expected to disburse almost $900 million actually, instead of the $500 million. So just trying to understand what's the reason why the lower disbursement?

In 2026, right, but looking at the company's presentation.

The prior guidance.

You mentioned that.

You would expect us to disburse, almost $900 million actually instead of the $500 million.

So just trying to understand.

We have a reason why lower spreads.

We did the when we put a specific purchase orders, which are the commitment of $800 million. We obtained bidder bidder payment terms that we were expecting initially and that's why we have a we have for these positive reduction in our cash out.

Raúl Jacob: We did, when we put the specific purchase orders, which are the commitment of $800 million, we obtained better payment terms than what we were expecting initially, and that's why we have this positive reduction in our cash out for next year. In Tía María obviously, the budget hasn't changed significantly, so we will be spending that money in 2007. Usually, you kept a portion of your budget for final payments once the vendors has or once you have confirm that the equipment that you have acquired are producing what was offered at the time of the sale.

For next year in Tia Maria obviously, the budget Hasnt changed significantly. So so we will be spending that money in 2007, usually you kept.

A portion of your budget for final payments once the.

Vendors has or once you have.

Confirm that the equipment that you have to acquire are producing what was oh for the <unk>.

I'm of the same.

Alright, and then does that mean brining nanny postpone them.

<unk>.

Emerson Vieira: All right. And this doesn't imply any postponement of the project startup, right? I mean, it's just the cash outflow that is being delayed, but construction will follow another pace, a faster pace, I would say, right?

The project started up right.

The cash flow that could be delayed by cost reduction.

Another place a faster pace, okay alright.

In line with our with our the pace of the investment we believe it's going to be finished.

Raúl Jacob: We're in line with our the pace of the investment. We believe it's going to be finished, as I say, at basically at mid-point of 2027, we should be charging material to the system of Tía María and start producing in the second half about, as I say, about 30,000 tons of refined copper for that year, and then 120,000 tons, which is the full capacity of the project.

As I T.

Basically the midpoint of our 2020, we should be.

<unk> material to the system of Tia Maria and start producing in the second half about I'd say about 30000 tons of refined copper for that year, and then 120000 tons, which is the full capacity of the project.

Okay. Thank you very much for help.

Welcome members.

Thank you one moment for our next question.

Emerson Vieira: Okay, thank you very much for the help.

Raúl Jacob: You're welcome, Emerson.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Alfonso Salazar from Scotiabank.

Operator: Thank you. One moment for our next question. Our next question comes from the line of

Our next question comes from the line of Alfonso Salazar from Scotiabank.

Yes, Hello and problems that they.

I have two questions. The first one is going back to the cash.

Alfonso Salazar: Yes, hello, Raul, good day. I have two questions. The first one is going back to the cash cost question. If the production, correct me if I'm wrong, but if production falls some 5% in 2026, then before by-product, we should expect an increase in cash cost by pound, similar to that number, right? And the second is, can you remind us how much of your cost in the Mexican mines are in Mexican pesos? And same for Brazil, sorry, for the Peruvian mines, how much is in soles? Just to have a sense on how much it could, you know, impact the depreciation of the, or weakening of the US dollar. And the second question is regarding your long-term production guidance.

Cash cost question.

<unk> product correct me, if I'm wrong, but production close some 5% in 2026, then before by Publix, we should respect and increasing cash costs by like power.

See me that that number right.

And secondly, can you remind us how much of your costs.

In the Mexican.

The mines are in Mexican pesos and St. Paul from Suncor.

Peruvian mines.

In tonnage.

Just to have a sense on how much it could impact the other initiation of a.

A weakening U S dollar.

And the second question is regarding your long term production guidance.

If we look at it.

First of all it seems that these would be updated and generally the last night you or have you made in the website.

Alfonso Salazar: If we look, first of all, it says that it will be updated in January, the last that you have in the website. Just want to make sure that you have any update, or we can continue to work with this one?

Just wanted to make sure that you have.

Any update call and we can continue to work with diesel.

Okay.

We are green, let me answer.

Answer your question first you did win.

Raúl Jacob: Let me answer your questions as you did them, Alfonso. In terms of, yes, we are having a reduction in copper production this year, so that will increase our - yeah, that alone should have an impact, the range of the 5% that you mentioned for our production cost. We are doing to or taking certain initiatives for us to control costs and, if possible, reduce maintenance expenditures and contractor services at both the Peruvian and Mexican operations. That should help. In terms of cost control, as you know, we are quite keen on maintaining costs under control.

Yeah.

In terms of yes, we are.

Having now a reduction in copper production this year, so that will increase.

Yes that one should have an impact in the range of 5% debt.

You mentioned four.

For our production.

We're doing two are taking certain initiatives for us to control.

Cost and possible reduce maintenance expenditures and contractor services.

It will do.

Peruvian and Mexican operations that should help in terms of cost control as you know, we're quite keen on maintaining costs too.

Under control.

The cash.

The cost Mexican pesos is 39% of our costs.

Raúl Jacob: The cost in Mexican pesos is 39% of our cost, and the cost in Peruvian soles is 10% of our cost. So we have about 51% of our cost in US dollars denominated. The next point-

And the cost in Peruvian Sol is is 10% of our costs. So we have about 51% of our call.

In the U S dollar denominated.

Okay.

The next bill yet, but that would be the guidance Jeff.

Alfonso Salazar: That's clear.

The guidance is.

Raúl Jacob: Yeah, the next point is-

Alfonso Salazar: Yes, regarding the guidance. Yeah.

Basically.

Okay.

Raúl Jacob: Yes. The guidance is basically we're updating it. For this year, you already mentioned it's 911,400 tons. For 2027, a little bit north of 900,000 tons. We are being affected by lower ore grades simultaneously at Toquepala and Cuajone. In the case of Toquepala, it's a temporary thing. That's why we are expecting this to correct over time. In the case of Cuajone, we are considering an expansion of the Cuajone operation so we can bring back the lower production that we're having, given the current installed capacity of Cuajone. I'm going to give you the forecast for the next five years.

Basically the call.

Updating it.

For for this year you already mentioned it's 911000.

<unk>.

For 2027, a little bit north of 900000 tonnes.

We're being affected by by lower ore grades at simultaneously pocket Pal and <unk> the case of the highlights.

Highlights of temporary or are you seeing that's why we are expecting this to correct over time in the case of core holding.

We are considering an expansion of the California operations. So we can bring back.

The lower production, there, where we're having given the current.

Installed capacity accordingly.

Or I'm going to give you the forecast for the next five years. So 911400 for this year.

A little bit north of.

Raúl Jacob: So 911,400 for this year, a little bit north of 900,000, about I believe about the same that we're doing for 2026. In 2028, we will have the full year of Tía María. That will bring in 970,000 tons as a forecast. In 2029, 1,060,000 tons, and 2030, 2031, same number, 1,060,000.

900.

Alison about I believe about the same that where we're building towards <unk> in 2028, we will have the full year, yeah, Maria that we'll bringing 970000 pounds or.

Forecast.

In 2029 1.060 million tons in 2031 St.

Same number $1 million.

Around 116.

Uh huh.

Okay. Thank you.

Alfonso Salazar: Around 160?

Helpful and just one quick question.

Raúl Jacob: Mm-hmm.

Alfonso Salazar: Okay. Thank you. That, that's helpful. Just one quick question. In your previous guidance, we can see that Buenavista and La Caridad, the production in those two mines were in a downtrend. Is that going to continue after 2030, or what are you expecting in these two mines?

Our previous guidance, we can see that we're not least thank god you got it.

Production in those two mines, where are you in a downtrend is that going to continue after 2030 or what are you expecting in these two months.

No we will be taking a different actions to two.

Raúl Jacob: No, we will, we will be taking different actions to put back on track our production on both sides. In some cases, it's finding new reserves, which is very likely the La Caridad circumstance, and in the case of Buenavista, we may consider also an expansion of the capacity of the operation. But that, these are things that are still under review, so no, nothing that I could, we could report on that at this point.

Put back on track our production on both sides.

In some cases.

Finding new reserves, which is very.

They are very likely to cut you out to a circumstance in.

In the case of winner of Easter. We May consider also an expansion of the capacity of the operation, but these are things that are still under review so no nothing that I.

Good report on that at this point.

Okay perfect. Thank you very much.

Yeah.

Thank you one moment for our next question.

Alfonso Salazar: Okay, perfect. Thank you very much, Alvaro.

Raúl Jacob: You're welcome.

Yeah.

Operator: Thank you. One moment for our next question. Our next question comes from the line of David Feng from China International Capital Corporation Limited.

Our next question comes from the line of David Fang from China International Capital Corporation Limited.

Hello, Hi, good morning, well Victor and team.

Congratulations on the strong results.

David Feng: Hi, good morning, Raul, Victor, and team. Congratulations on the strong results. My first question is from a capital management perspective, with a much stronger cash flow based on current copper price, is it possible to boost your growth plan with the extra cash, or is it more likely for you to increase the portion of cash dividend over stock dividend? I'll come back with my second question.

My first question is strong.

<unk> management per stock tests.

With a much stronger cash inflow based on current copper price.

Is it possible to bolster our growth plan with the extra cash.

Or is it more likely for you to increase the pull ourselves cash dividend overstock dividend I'll.

I'll come back with my second question.

I think.

In the case of <unk>, it's up to the board. The board has been increasing the cash portion of the dividend.

Raúl Jacob: I think that in the case of dividends, it's up to the board. The board has been increasing the cash portion of the dividend as prices and results are coming in. And I guess that they may increase the cash portion of it if we have more better results. But that is up to them, so I can't comment on that much. Your next question, please.

Prices are sold to.

<unk> are coming in and I guess that they may they may.

The increase of the cash.

First one of it if we have more.

Bidder better results, but that is up to them. So I can't comment on that to match.

Your next question please.

Okay. Thank you very much.

So my second question is with the much higher copper price.

David Feng: Oh, okay. Thank you very much. So my second question is, with the much higher copper price, for projects like Los Chancas, we know on one hand, the higher price should allow you to leverage more resources to solve the issues related to the project. But on the other hand, the higher prices also provide stronger incentives for illegal miners to continue or even enhance their operations. So, overall, does the higher copper price make the project development, like, for Los Chancas, easier or more challenging? Thank you.

For project site loss Shanghai.

On one hand, the higher price to allow you to leverage more resources to solve the issues related projects, but on the other hand, the higher prices also provide stronger incentives for.

Or illegal miners to continue or even a has their operations. So overall or does the higher copper price.

Make the project development, unlike for loss from Gus easier or more challenging. Thank you.

Okay.

Obviously, you want to have better prices in the works of course prices to more when we project that we have made these oil <unk> has been evaluated with the prices are significantly lower than the ones that we're seeing nowadays.

Raúl Jacob: Obviously, you want to have better prices than worse prices to move with projects, but we have made these. All of our projects has been evaluated with the prices significantly lower than the ones that we're seeing nowadays. I think that in general we are happy of having very good returns with the prices that I'd say it's more like an average long-term view for us. In the specific case of Los Chancas, we have had some progress. We had some initiatives taken by the government that will be helping of illegal mining, but so far we haven't, we don't have so much to report at this point.

I think that.

In general.

We are we're happy of having a very good returns with the prices down I'd say, it's more like an average long term view for us.

In the cases this specific case hopeless chunk as we have had some progress.

We had some some.

Initiatives taken by the government they will be held.

Sort of illegal mining, but so far we have we haven't we don't have much to report at this point we.

We believe that the government the Peruvian government would take action.

Raúl Jacob: We believe that the government, the Peruvian government, will take action and allow the company to move on with this important project.

Although the company to move on with these important projects.

Understood that's really helpful.

Hmm.

David Feng: Understood. That's really helpful.

Okay, one moment for our next question.

Raúl Jacob: Mm-hmm.

Okay.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Mateus Moreira from Bradesco BBI.

Yeah.

Our next question comes from the line of Mattel's Mario <unk> from Bradesco <unk>.

Yeah. Thank you good morning, all and thank you for taking my questions.

My first question is on on the copper market I just wanted to get your overall view on copper market.

Matheus Moreira: Yeah, thank you. Morning all, and thank you for taking my questions. My first question is on the copper markets. I just wanted to get your overall view here on our copper markets. We've been seeing, of course, a very supportive price environment for copper, right? With prices holding near historical highs. However, demand in China appears to be deteriorating at a relatively fast pace, right? So just wanted to see how do you view these dynamics going forward? Do you expect the current price momentum to be sustained? So that's my first question, and then I'll come back for the second one.

We had been seeing of course, the very supportive price environment for corporate ride with prices holding up near historical highs.

However, demand in China appears to be deteriorating at a relatively fast pace right. So just wanted to see.

How do you view these dynamics going forward do you expect that the current price momentum to be sustained. So that's my first question and then I'll come back for the second one.

Okay on the copper market, we are expecting a deficit.

Raúl Jacob: Okay. On the copper market, we are expecting a deficit about... We're expecting a deficit on the market, and but, 320,000 tons is our current, the view of our commercial team. In terms of price, it's hard to know. We are seeing that the copper demand is being held by electric vehicles, artificial intelligence power centers. And at the same time, we see that, well, in several places, particularly in China, the real estate market is not doing well. So, that, those are the factors. We were not forecasting copper prices. That is not our business.

We are expecting a deficit on the market.

Uh huh.

And.

But.

320000 tons so.

Our current view of our commercial team in terms of price it's hard to know.

We have seen that.

The corporate demand is being hold by.

Electric vehicles are.

Artificial intelligence power centers.

And at the same time, we see that.

Well do it.

In several places, particularly in China, the real estate market is not doing well so.

That those are the factors, we were not forecasting copper prices that is not our business or our businesses too to focus on controlling cost and producing as much copper as we can on that.

Raúl Jacob: Our business is to focus on controlling costs and producing as much copper as we can on a competitive base and with high returns for our shareholders. That's our business.

Competitive space and we tie returns for our shareholders that's our business.

Okay perfect. That's clear and then my second question on the one obvious the concentrator.

Matheus Moreira: Okay, perfect. That's clear. And then my second question on the Buenavista concentrator. I mean, I understand you continue to prioritize zinc production over copper, given the stronger zinc grades in the areas that you're currently mining. Should we expect this strategy to remain in place for 2026? Especially considering these copper prices at these levels. And maybe the question here, is there a copper price level that would incentivize you to shift back your production towards copper?

I mean I understand you you continue to prioritize zinc production of copper.

Given the stronger zinc grades in the areas that you're currently mining.

Should we expect this strategy to remain in place for 2026.

Especially considering these copper prices at these levels and maybe the question here is there any copper price level.

Had devised you to shift back your production towards copper.

Okay.

After four no neutral for everybody of the call, we do have to concentrate or.

Raúl Jacob: Okay. Just for knowledge of everybody at the call, we do have two concentrators in Buenavista. One is the concentrator that are producing pure copper. Those are copper concentrator. And the other one is there is one zinc concentrator that can switch between zinc and copper. In this case, we did an analysis at certain point at the beginning of the year, and with the prices that we have had, and the prices are still holding in relative terms between zinc, silver, and copper. And we found that it was in the best interest of the company and our shareholders to focus on zinc production with more silver content coming with the zinc.

In Buena Vista, one of the.

Yeah.

The concentrate or that it's.

That's our producing with pure copper.

Our copper concentrate or <unk>.

And the other one is.

There is a one zinc zinc concentrated or can switch between zinc and copper in this case, we did an analysis a third important at the beginning of the year as we did prices that we have got and the prices are still holding in terms in royalty.

It turns between the same silver and copper and we found that it was still in the best interest of the.

The company and our shareholders to focus on zinc production.

More with more.

Silver content coming with the sink.

Just to be.

Clear, we do have to concentrate or that produce that are copper concentrate also on one think concentrate I believe that.

Raúl Jacob: Just to be clear, we do have two concentrators that produce-- that are copper concentrators and one zinc concentrator. I believe that I skipped that when I explained this matter. So, we're doing this on an ongoing basis. If there is a significant change in the relative prices between zinc, silver, and copper, we will review our strategy. But so for now, and particularly on the areas that we are at the zinc production areas of the mine of Buenavista, it still makes sense to be producing silver and zinc rather than copper. But if there's-

Just skip that when I explained this matter so.

We're doing this on a call Oh no no no.

Ongoing basis, if there is a significant change in the relative prices between <unk> silver and copper, we will review, our our strategy, but for now on particularly on the areas that we are at the sink.

Production areas of the mine would have Easter.

It still makes sense to be producing silver and zinc.

Rather than copper, but if they are okay.

We'll do it.

In a way that we produce the best value.

Matheus Moreira: Okay.

Raúl Jacob: a change, we'll do it in a way that we produce the best value for our shareholders and the corporation.

For our shareholders in the Corporation.

Okay perfect that's very clear thank you.

Yes.

Thank you one moment for our next question.

Matheus Moreira: Okay, perfect. That's very clear. Thank you.

Our next question comes from the line of Alex hacking from Citi.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Alex Hacking from Citi.

Yeah, Hi role I just have one question could you maybe discuss the cadence of your copper production next year should we expect.

Alex Hacking: Yeah. Hi, Raul. I just have one question: Could you maybe discuss the cadence of your copper production next year? Should we expect Q1 to be the strongest and Q4 to be the weakest, with grades in Peru kind of falling through the year, or it's gonna be more even than that? Thank you.

<unk> to be the strongest.

And <unk> to be the weakest with grades in Peru.

Kind of falling through the year or it's going to be more even than that thank you.

Going to be more even Alex we will be reporting on that.

Raúl Jacob: Gonna be more even, Alex. We will be reporting on that, but that's basically where we're getting into a low, low ore grade patch for Toquepala. Cuajone is more or less stable at the level that it is now, and the reason for that is that Cuajone has a new structural ore grade, which is lower. That's why we're considering an expansion on this operation.

Basically we're getting into a low low.

Great.

Patch for took upon.

<unk> is more or less stay.

<unk>.

The level that it is.

Now and the reason for that is that.

<unk> has.

A new structural or grades which is lower and that's why we're considering an expansion on this operation.

Yeah.

Thank you.

Youre welcome.

Thank you one moment for our next question.

Alex Hacking: Thank you.

Raúl Jacob: You're welcome.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Miles Alsop from UBS.

Our next question comes from the line of Myles Alsop from UBS.

Great. Thank you.

Shinji and some numbers just maybe on Tia Maria to start with.

Myles Allsop: Great. Thank you for the opportunity and great for the numbers. Just maybe on Tía María to start with, what is the lead time for an SX-EW operation? And what do you see as the key risks in terms of achieving the timeline of first production mid-2027?

How what is the lead time to an Sx EW.

Operation.

And what do you see as the key risks in terms of achieving.

The timeline.

Production mid 2027.

Yeah.

Okay.

Well.

We do have.

About five.

Raúl Jacob: Well, we do have about five SX-EW operations in the company currently that we're working with them. Obviously, we have selected the newest and best technology that is available for SX-EW operations right now. Basically, we are expecting to have the whole plant assembly and in operation at the second half of 2027. That's a little bit more than a year from now. We think that well, at this point, we don't want to have any delays on getting the production that we're looking for for 2027. Our expectation is to have everything assembled and ready to initiate the test by May or June of 2027.

Sx EW operations here in the company.

Currently that are that we're working with them, obviously, where we have selected the newest and best to technology that is available for Sx EW operations right now.

No basically we are expecting to have the full plan to assembly and in operation at the second half of 2027, Thats, a little bit more than a year from now.

We think that.

Well at this point, we don't want to have any delays on getting the production that we're looking for 2027, there were expectations is to have everything assemble.

And ready to initiate the tests.

By May or June of 2027.

With that.

Occurring we will be we will be putting charge in the equipment and you start producing.

Raúl Jacob: With that occurring, we'll be putting charge in the equipments and start producing refined copper, which is the final product of an SX-EW operation.

The refined copper, which is the final protocol and the <unk> operation.

Okay.

It does help us see.

So it moved on the ground I mean, there's a few small price and so I think in December some more planned for March.

Myles Allsop: Those, how's the sort of mood on the ground? I mean, there's a few small protests, I think, in December. I think there's some more planned for March, ahead of the elections. I mean, what's the sense on the ground in terms of going full steam ahead with the project?

Ahead of the elections I mean, what's the sense on the ground in terms of going full steam ahead with the project.

You mean on the Peruvian elections.

It would be around <unk>.

Raúl Jacob: You mean on the Peruvian elections?

Obviously stepping up production aggressively given what happened last time and the disruption you suffered.

Myles Allsop: Yeah, around Tía María and, you know, obviously stepping up production aggressively, given what happened last time and the disruption you've suffered.

No. We believe that the work we're doing with the local groups the population in the area.

Raúl Jacob: ...Well, we believe that the work that we're doing with the local groups, the population in the area, it's well, we mentioned that we have, our initial expectation was to have about 3,500 workers in Tía María. Now, we do have more than that. 3,589 jobs have been created. We believe that the right number now, it's more in the range of having 5,000 workers when the project is at full speed in terms of construction. This has been very well received by the local population.

Well, we mentioned that we have our initial expectation was to have about 3500 the workers.

Tia Maria now we do have more than 300 589 jobs have been created we believe that the right number now it's more in the range of of having 5000 workers workers when the.

The project is a true full speed in terms of construction.

This has been very well received by the local population I think we we made at the points that these break now it's going to be a program for them, but a big opportunity for the.

Raúl Jacob: I think that we made our points that this project is not going to be a problem for them, but, you know, a big opportunity for the people at the Islay province of Arequipa. And what we're seeing is that they understand this and are focusing on getting either a job opportunity or a business opportunity related to the company or the programs that the company has. As I mentioned, the company has been investing using the tax for works mechanism in Peru very heavily. $400 million has been invested in using this mechanism, plus all the other programs that the company have. So I believe that we're bringing in good news to the population, and the locals are understanding that correctly.

People of the province of her to keep her and what we're seeing is that the end and these are focusing them on getting.

Either.

Europe opportunity or a business opportunity.

Added to the company or the programs that the company has as I mentioned.

Mentioned the company has been investing using the tax for the tax for works mechanism.

Peru.

<unk> $400 million has been invested in that.

Using this mechanism glass all the other programs that the company have so I believe that.

We're bringing in good news to the population and the locals are understanding that correctly.

That's encouraging.

Just a couple of other small questions in terms of percentage of Comex sales.

Myles Allsop: That's encouraging. Maybe just a couple of other small questions. In terms of percentage of COMEX sales, is--has that changed meaningfully since last year, or is it, you know, broadly unchanged?

Has that changed meaningfully since last year or is it broadly unchanged.

We don't make comments on that and so sorry.

Okay. Maybe last question and then just on Mexico, and the ability to get licenses to move projects forward.

Raúl Jacob: We don't make comments on that. I'm so sorry.

Myles Allsop: Okay. And maybe last question then, just on Mexico and the ability to get licenses to move projects forward. Has the atmosphere improved? Is it looking more probable we'll see investments in the mining industry in Mexico being announced during 2026?

I see.

D atmosphere improved is it looking more probable we will see investment in the mining industry in Mexico being announced during 2026.

We're seeing a better generally speaking a better environment.

In our relationship with the Mexican government.

Raúl Jacob: We're seeing a better, generally speaking, a better environment in our relationship with the Mexican government. I think that this is going to be also reflected in the speed that we can move on with projects. But so far, there's nothing specific to report.

And I think this is going to be also reflected in the speed that we can move on with projects, but so far there is nothing specific to report.

Does it have any open pit its been approved.

Over the last 12 months over the last few years.

Myles Allsop: Have any open pits been approved over the last 12 months or last few years?

I'm, so sorry, couldnt get which is.

Any open pit projects being approved in Mexico over the last few years.

Raúl Jacob: I'm so sorry, I couldn't get what you said.

Myles Allsop: So, have any open-pit projects been approved in Mexico over the last few years?

Well there are some projects that has been moving along and we have our own of <unk> loans from other projects.

Raúl Jacob: Well, there are some projects that has been moving on, and we have our own of Larco and some other projects that we keep working on them. But so far on this matter, on our projects, we have no, not much to report at this point.

We will keep working on them, but so far on this matter I'm gonna where projects we have no not much to report at this point.

Okay. Thank you.

You're welcome.

Thank you at this time I'm showing no further questions I would now like to turn the conference back over to Mr. Raul Jacob for closing remarks.

Myles Allsop: Okay. Thank you.

Raúl Jacob: You're welcome.

Operator: Thank you. At this time, I'm showing no further questions. I would now like to turn the conference back over to Mr. Raul Jacob for closing remarks.

Thank you very much.

This will conclude our conference call for southern Copper's fourth quarter of 2025 and full year results.

Raúl Jacob: Thank you very much, Lee. With this, we conclude our conference call for Southern Copper's Q4 2025 and full year results. We certainly appreciate your participation and hope to have you back with us when we report the Q1 2026 results. Thank you very much for being with us today, and have a nice day.

We certainly appreciate your participation and hope to have to back with us when we report the first quarter of this year 2026 results.

Thank you very much for being with us today and have a nice day.

This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Q4 2025 Southern Copper Corp Earnings Call

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