# Southern Copper Corp/: Form 10-Q for the period ended Mar 31, 2025

- Company: [Southern Copper Corp/](/companies/scco.md) (CIK 1001838)
- Form: 10-Q
- Filed: 2025-04-30
- Accepted by EDGAR: Apr 30, 2025, 15:15 ET
- Period: 2025-03-31
- Accession: 0001558370-25-005975
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1001838/000155837025005975/scco-20250331x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1001838/000155837025005975/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $3.12bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $1.32bn | us-gaap:CostOfRevenue |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $31.7m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $1.54bn | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $532.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $949.1m | us-gaap:ProfitLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $1.19 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $1.19 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 792,500,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $721.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $317.8m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $553.3m | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | at 2025-03-31 | $4.12bn | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $7.22bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $19.79bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $1.94bn | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2025-03-31 | $6.75bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-03-31 | $500.0m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-31 | $9.57bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 55,738 characters.

*The following discussion provides information that management believes is relevant to an assessment and understanding of the condensed consolidated financial condition and results of operations of Southern Copper Corporation and its subsidiaries (collectively, “SCC”, “the Company”, “our”, and “we”). This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with the Management Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements included in Part II of our annual report on Form 10-K for the year ended December 31, 2024.*

EXECUTIVE OVERVIEW

Business: Our business is primarily the production and sale of copper. In the process of producing copper, a number of valuable metallurgical by-products are recovered, which we also produce and sell. Market forces outside of our control largely determine the sale prices for our products. Our management, therefore, focuses on value creation through copper production, cost control, production enhancement and maintaining a prudent capital structure to remain profitable. We endeavor to achieve these goals through capital spending programs, exploration efforts and cost reduction programs. Our aim is to remain profitable during periods of low copper prices and to maximize financial performance in periods of high copper prices.

We are one of the world’s largest copper mining companies in terms of production and sales and our principal operations are in Peru and Mexico. We also have exploration programs in Chile and Argentina. In addition to copper, we produce significant amounts of other metals, either as a by-product of the copper process or through a number of dedicated mining facilities in Mexico.

Outlook: Various key factors will affect our outcome. These include, but are not limited to, the following:

- Sales structure: In the first quarter of 2025, 77.9% of our revenue came from the sale of copper; 9.6% from molybdenum; 5.7% from silver; 3.6% from zinc; and 3.2% from other products, including gold, sulfuric acid, and other materials.
- Copper: In the first quarter of 2025, the LME copper price increased to $4.24 from an average of $3.83 per pound in the first quarter of 2024 (+10.7%). Based on supply and demand dynamics, we estimate that the deficit at 2025 year-end will stand at approximately 300,000 tonnes. Regarding copper inventories worldwide, we estimate that they are currently covering about one week of global demand.

In the first quarter of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in March 26, 2025, the COMEX price was 73 cents per pound or 17% above the LME price. This huge difference reflected the strong possibility that a 25% tariff will be imposed on U.S. copper imports.

Although we maintain a very positive long-term outlook for copper, we believe an intense commercial war between the U.S. and China will affect economic growth worldwide, consequently impacting copper demand.

- Molybdenum: Accounted for 9.6% of our sales in the first quarter of 2025 and is currently our most important by-product. Molybdenum prices averaged $20.43 per pound in the first quarter of 2025, compared to $19.84 in the same period of 2024, reflecting an increase of 3.0%.

Molybdenum is mainly used in the production of special alloys for stainless steel that require significant hardness, corrosion and heat resistance. New uses for this metal are associated with lubricants, sulfur filtering of heavy oils and shale gas production.

For 2025, we believe that prices will hold at the current level of about $20.00 per pound given its diverse applications in critical industries.

- Silver: Represented 5.7% of our sales in the first quarter of 2025. We believe that silver prices will be supported by demand for industrial use and precious metals.
- Zinc: Average zinc prices increased 16.2% in the first quarter of 2025 versus the same period of 2024. We believe zinc has strong long-term fundamentals, driven by sustained industrial demand, particularly in the construction and automotive sectors. Although current supply levels are stable, a forecasted reduction in mine production and the closing of key refineries suggest that supply will tighten over time. As demand continues to grow, this imbalance is expected to put upward pressure on prices in the long run. Zinc represented 3.6% of our sales in the first quarter of 2025.
- Production: In 2025, we expect our copper production to reach 968,200 tonnes, a decrease of 0.6% over final production in 2024. Last year we drove our Pilares project to full capacity and we expect this project to contribute 32,300 tons of copper in 2025.

Regarding by-products, we expect to produce 170,100 tonnes of zinc from our mines, up 31% from 2024 production level. This growth will be driven by the production of our Buenavista Zinc concentrator (105,400 tonnes), which is operating at full capacity. We also expect to produce 27,400 tonnes of molybdenum in 2025, which represents a decrease of 5.5% compared to 2024 production levels but is 4.5% above our initial plan. For silver, we expect to produce 22.8 million ounces of this metal, an increase of 9% compared to last year’s production.

- Capital Investments: In the first quarter of 2025, we spent $317.8 million on capital investments; this represented 34.0% of net income and an increase of 48.7% compared to the amount registered in the same period of 2024.

KEY MATTERS

Below, we discuss several matters that we believe are important to understand the results of our operations and financial condition. These matters include, (i) our earnings, (ii) our production, (iii) our “operating cash costs” as a measure of our performance, (iv) metal prices, (v) business segments, (vi) the effect of inflation and other local currency issues, and (vii) our capital investment and exploration program.

**Earnings:** The table below highlights key financial and operational data of our Company for the three-month periods ended March 31, 2025 and 2024 (in millions, except copper price, percentages and per share amounts):

| ​ ​ ​ | ​ ​ | ​ ​ ​ Three months ended March 31, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ | ​ ​ % Change | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Copper price LME | ​ | ​ 4.24 | ​ | ​ 3.83 | ​ | ​ 0.41 |  | 10.7% | ​ |
| Pounds of copper sold | ​ | ​ 537.0 | ​ | ​ 518.5 | ​ | ​ 18.5 |  | 3.6% | ​ |
| Net sales | ​ | $3,121.9 | ​ | $2,599.8 | ​ | $522.1 |  | 20.1% | ​ |
| Operating income | ​ | $1,535.5 | ​ | $1,189.7 | ​ | $345.8 |  | 29.1% | ​ |
| Net income attributable to SCC | ​ | $945.9 | ​ | $736.0 | ​ | $209.9 | ​ | 28.5% | ​ |
| Earnings per share | ​ | $1.19 | ​ | $0.95 | ​ | $0.24 | ​ | 25.3% | ​ |
| Dividends per share (cash and stock) | ​ | $1.40 | ​ | $0.80 | ​ | $0.60 | ​ | 75.0% | ​ |

Net sales in the first quarter of 2025 totaled $3,121.9 million, reflecting a 20.1% increase compared to the same period in 2024. This performance was mainly supported by higher prices for copper (LME, +10.7%), molybdenum (+3.0%), silver (+38.4%), and zinc (+16.2%), along with increased sales volumes of copper (+3.6%), molybdenum (+9.9%), silver (+14.1%), and zinc (+42.4%).

Net income attributable to SCC for the first quarter of 2025 reached $945.9 million, reflecting a significant increase of 28.5% compared to the same period in 2024. This strong performance was primarily supported by a rise in net sales (+20.1%), driven by improvements in metal prices and sales volumes; this was partially offset by an increase in the cost of sales (+14.0%), primarily associated with inventory variance; higher workers' participation; and an increase in income tax expense (+25.8%).

**Production:** The table below highlights our mine production data for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ ​ ​ % Change ​ ​ |
| --- | ---: | ---: | ---: | ---: |
| Copper (in million pounds) | 529.6 | 529.6 | 0.0 | 0.0% |
| Molybdenum (in million pounds) | 16.9 | 15.6 | 1.3 | 8.6% |
| Silver (in million ounces) | 5.4 | 4.8 | 0.7 | 13.8% |
| Zinc (in million pounds) | 86.8 | 58.1 | 28.7 | 49.3% |

The table below highlights our mine production data for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ Copper (in million pounds): | ​ ​ ​ | ​ ​ Three Months Ended March 31, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ ​ ​ % Change ​ ​ |
| --- | --- | ---: | ---: | ---: | ---: |
| Toquepala | ​ | 140.5 | 138.2 | 2.3 | 1.7% |
| Cuajone | ​ | 91.2 | 90.9 | 0.3 | 0.3% |
| La Caridad | ​ | 61.0 | 65.0 | (4.0) | (6.2)% |
| Buenavista | ​ | 231.2 | 229.9 | 1.3 | 0.6% |
| IMMSA | ​ | 5.7 | 5.6 | 0.1 | 1.9% |
| Total mined copper | ​ | 529.6 | 529.6 | 0.0 | 0.0% |

Copper mine production in the first quarter of 2025 remained stable at 529.6 million pounds, matching the volume registered in the same period of 2024. This level was supported by increased production at Toquepala (+1.7%; due to higher ore grades and milling), Buenavista (+0.6%; due to higher SX-EW production), Cuajone (+0.3%; due to higher ore grades), and IMMSA (+1.5%; due to higher ore grades). These gains were offset by lower production at La Caridad (−6.2%; due to lower ore grades and recoveries).

Molybdenum production increased 8.6% in the first quarter of 2025 compared to the same period in 2024. This growth was largely driven by improved production at our Toquepala (+13.3%), La Caridad (+11.6%), and Buenavista (+10.3%) mines, primarily due to higher ore grades. However, this performance was partially mitigated by a decrease in production at our Cuajone (-9.9%) mine, which was driven by lower ore grades.

Silver mine production increased 13.8% in the first quarter of 2025 compared to the same period in 2024. This growth was driven by higher production at our Buenavista (+49.1%), IMMSA (+7.5%), and Cuajone (+0.3%) operations. However, this performance was slightly tempered by a decline in production at our La Caridad (-2.9%) and Toquepala (-0.9%) mines.

Zinc production increased 49.3% in the first quarter of 2025 compared to the same period in 2024. This significant growth was primarily driven by full-capacity operations at the Buenavista Zinc concentrator, which produced 25,333 tonnes of zinc in the first quarter of 2025.

**Operating Cash Costs:** An overall benchmark that we use, which is a common industry metric to measure performance is operating cash costs per pound of copper produced. Operating cash cost is a non-GAAP measure that does not have a standardized meaning and may not be comparable to similarly titled measures provided by other companies. This non-GAAP information should not be considered in isolation or as substitute for measures of performance determined in accordance with GAAP. A reconciliation of our operating cash cost per pound of copper produced to the cost of sales (exclusive of depreciation, amortization and depletion) as presented in the consolidated statement of earnings is presented under the subheading, “Non-GAAP Information Reconciliation” on page 50. We disclose operating cash cost per pound of copper produced, both before and net of by-product revenues.

We define ***operating cash cost per pound of copper produced before by-product revenues*** as cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines.

In our calculation of operating cash cost per pound of copper produced, we exclude depreciation, amortization and depletion, which are considered non-cash expenses. Exploration is considered a discretionary expenditure and is also excluded. Workers’ participation provisions are determined on the basis of pre-tax earnings and are also excluded. Additional exclusions from operating cash costs are items of a non-recurring nature and the mining royalty charge as it is based on various calculations of taxable income, depending on which jurisdiction, Peru or Mexico, is imposing the charge. We believe these adjustments allow our management and stakeholders to more fully visualize our controllable cash cost, which we believe is one of the lowest of all copper-producing companies of similar size.

We define ***operating cash cost per pound of copper produced net of by-product revenues*** as operating cash cost per pound of copper produced, as defined in the previous paragraph, less by-product revenues and net revenue (loss) on sale of metal purchased from third parties.

In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost.

We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile.

Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three-month periods ended March 31, 2025 and 2024:

### Operating cash cost per pound of copper produced (1)

### (In millions, except cost per pound and percentages)

| ​ ​ ​ | ​ ​ | ​ ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | ---: | --- |
| Total operating cash cost before by‑product revenues | ​ | $1,050.2 | ​ | $1,079.0 | ​ | $(28.8) | (2.7)% | ​ |
| Total by‑product revenues | ​ | $(658.5) | ​ | $(532.2) | ​ | $(126.3) | 23.7% | ​ |
| Total operating cash cost net of by‑product revenues | ​ | $391.7 | ​ | $546.8 | ​ | $(155.1) | (28.4)% | ​ |
| Total pounds of copper produced(2) | ​ | 511.6 | ​ | 510.8 | ​ | 0.8 | 0.2% | ​ |
| **Operating cash cost per pound before by‑product revenues** | **​** | **$2.05** | **​** | **$2.11** | **​** | **$(0.06)** | **(2.8)%** | **​** |
| **By‑product revenues per pound** | **​** | **$(1.29)** | **​** | **$(1.04)** | **​** | **$(0.25)** | **23.5%** | **​** |
| **Operating cash cost per pound net of by‑product revenues** | **​** | **$0.77** | **​** | **$1.07** | **​** | **$(0.30)** | **(28.4)%** | **​** |

(1) These are non-GAAP measures. Please see page 50 for reconciliation to GAAP measure.

(2) Net of metallurgical losses.

In the first quarter of 2025, the operating cash cost per pound before by-product revenues decreased from $2.11 to $2.05, mainly driven by lower operating costs (-2.8%). By-product revenues per pound increased significantly, rising by 23.5% from $1.04 to $1.29. As a result, the operating cash cost per pound net of by-product revenues declined 28.4% from

$1.07 to $0.77. This reduction reflects effective cost management and higher by-product revenues, primarily from zinc, silver, and molybdenum due to increases in reported prices and sales volumes.

**Metal Prices:** The profitability of our operations is dependent on, and our financial performance is significantly affected by, the international market prices for the products we produce, and for copper, molybdenum, zinc and silver in particular.

We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining nine months of 2025, assuming that expected metal production and sales are achieved; tax rates remain unchanged and giving no effects relative to potential cost changes, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:

| ​ ​ | ​ | ​ ​ Copper | ​ | ​ ​ Molybdenum | ​ | ​ ​ Zinc | ​ | ​ ​ Silver |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Change in metal prices (per pound except silver—per ounce) | ​ | $0.10 | ​ | $1.00 | ​ | $0.10 | ​ | $1.00 |
| Change in net earnings (in millions) | ​ | $92.5 | ​ | $26.3 | ​ | $18.6 | ​ | $10.6 |

**Business Segments:** We view our Company as having three reportable segments and manage it on the basis of these segments. These segments are (1) our Peruvian operations, (2) our Mexican open-pit operations and (3) our Mexican underground operations, known as our IMMSA unit. Our Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities that service both mines. The Peruvian operations produce copper, with significant by-product production of molybdenum, silver and other material. Our Mexican open-pit operations include the La Caridad-Pilares and Buenavista mine complexes, the smelting and refining plants and support facilities, which service these mines. The Mexican open-pit operations produce copper, with significant by-product production of molybdenum, silver and other material. Our IMMSA unit includes three operating underground mines and several industrial processing facilities.

Segment information is included in our review of “Results of Operations” in this item and also in Note 14 “Segment and Related Information” of our condensed consolidated financial statements.

**Inflation and Exchange Rate Effect of the Peruvian Sol and the Mexican Peso:** Our functional currency is the U.S. dollar and our revenues are primarily denominated in U.S. dollars. Significant portions of our operating costs are denominated in Peruvian sol and Mexican pesos. Accordingly, when inflation and currency devaluation/appreciation of the Peruvian currency and Mexican currency occur, our operating results can be affected. In recent years, exchange rate volatility has been high but has had a limited effect on our results. Please see Item 3 “Quantitative and Qualitative Disclosures about Market Risk” for more detailed information.

**Capital Investment Programs**: We made capital investments of $317.8 million in the first quarter of 2025, compared to $213.8 million in the same period of 2024. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments.

Set forth below are descriptions of some of our current expected capital investment programs. We expect to meet the cash requirements for these projects by utilizing cash on hand; internally generated funds and additional external financing. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.

### Projects in Mexico:

Minera Mexico is planning to invest more than $600 million in 2025 at both its open pit and underground mines. Half of this investment will be used to guarantee the viability of long-term operations by actively modernizing and updating assets. The remaining funds will target improvements in water usage and tailings management to ensure safety and efficiency in our operations. In addition, we will invest in efforts to bolster optimization and growth.

El Pilar - Sonora: This low-capital intensity copper greenfield project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249%. We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000 tonnes of copper cathodes. This operation will use highly cost efficient and environmentally friendly SX-EW technology. The budget for El Pilar is $310 million.

The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options for optimization. The Company is engaging in project development and on-site environmental activities. Mine life is estimated at 13 years.

The Company has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate. These projects are Angangueo, Chalchihuites and the Empalme Smelter, which could bolster our position as a fully integrated copper producer.

**Projects in Peru:**

Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tons of SX- EW copper cathodes per year.

Tia Maria will generate significant revenues for the Arequipa region from day one of its operations. At current copper prices, we expect to export $18.2 billion and contribute $3.8 billion in taxes and royalties during the first 20 years of operation. The project budget has been set at $1,802 million.

Project update: As of March 31, 2025, the Company had generated more than 628 jobs, 503 of which were filled with local applicants. To the fullest extent possible, we intend to fill the 3,500 jobs estimated to be required during Tia Maria’s construction phase prioritizing workers from the Islay province. When we start operations in 2027, the project will generate 764 direct jobs and 5,900 indirect jobs.

The project is in the early construction phase, with progress on access roads and platforms reaching 61%. The Company will advance these efforts alongside work to set up a temporary camp, engage in massive earthworks, and roll out mine-opening activities. To date, we have installed 59 kilometers of live fence to delimit the property.

### Potential projects:

We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, expected return on investment, environmental concerns, required investment and estimated production, among other considerations. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.

El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpa SX-EW operations.

Project update: Detailed engineering is still underway for the concentrator, SX-EW plant, water desalination, logistics infrastructure and power delivery.

Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes that are expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin operating in 2031. We continue to engage in social and environmental improvements for the local communities and are working on the project´s environmental impact assessment.

Project update: On February 4, 2025, the Company acquired 3,125 hectares of surface land from the Tiaparo community. This was an important step in securing our stake in the Los Chancas project. Between March 12 and 14, 2025, a group of illegal miners attacked the project's facilities and set fire to our camps in Mazopampa and Patahias, damaging both equipment and facilities. The Company is coordinating with the authorities to remove the 75 illegal miners who are squatting on our property so that project development can continue.

Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world class mining project with inferred mineral resources of 2,288 million tonnes and an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years.

We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.

Project update: As of March 31, 2025, total progress on exploration for the project reached 39%. A total of 145,928 meters were drilled (total program = 148,000 meters), and 47,990 core samples were collected for chemical analysis. Diamond drilling will continue to provide essential data to interpret geological sections related to mineralization; develop geological models; and assess mineral resources. Geo-metallurgical, hydrological and hydrogeological studies have begun, and the geotechnical study for the project is set to begin soon.

The aforementioned information is based solely on estimates. We cannot make any assurances that we will undertake any of these projects or that the information noted is accurate.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) PRACTICES

**We are improving Peru's educational infrastructure.** Two high-performance schools (“COAR”) built by Southern Copper Corporation in the Tacna and Moquegua regions were inaugurated by the President of the Republic of Peru and the Minister of Education. A total of $60 million were invested through the Works for Taxes mechanism. The schools feature top-level services, which have been designed to maximize students' academic, artistic, and athletic abilities. Every year, these COAR will educate 600 outstanding students from vulnerable areas, as we actively contribute to closing educational gaps in the country. Work to build a new COAR in the Apurímac region is slated to begin soon.

**Our social practices are recognized once again.** For the third consecutive year, we received the Exceptional Company award, which recognizes our commitment to Mexican communities. This distinction, bestowed by the Business Coordinating Council, the Communications Council, and the Institute for the Promotion of Quality, applauds our initiatives to drive regional economic and recreational development by developing the Tamosura and Pinacate urban parks in the mining municipalities of Cananea and Nacozari, Sonora. Every year, more than 50,000 users benefit from the sports, recreational, and cultural facilities developed by the Company.

**We maintain our rating in climate change and water security in the CDP evaluation,** the world’s leading environmental disclosure platform. We are part of the more than 24,800 companies that, in 2024, voluntarily reported their environmental impacts to CDP, representing nearly two-thirds of global market capitalization. SCC, as part of

Grupo Mexico, ranked above the average for both the materials sector and the North America region in evaluations for both categories.

ACCOUNTING ESTIMATES

Our discussion and analysis of financial condition and results of operations, as well as quantitative and qualitative disclosures about market risks, are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. Preparation of these consolidated financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We make our best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: ore reserves, revenue recognition, ore stockpiles on leach pads and related amortization, estimated impairment of assets, asset retirement obligations, determination of discount rates related to the financial lease liabilities, classification of operating leases versus financial leases, valuation allowances for deferred tax assets, unrecognized tax benefits and fair value of financial instruments. We base our estimates on historical experience and on various other assumptions that we believe reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

### RESULTS OF OPERATIONS

The following highlights key financial results for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ ​ Statement of Earnings Data | ​ ​ | ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ | ​ ​ ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Net sales | ​ | $3,121.9 | ​ | $2,599.8 | ​ | $522.1 | ​ | $20.1% | ​ |
| Operating costs and expenses | ​ | (1,586.4) | ​ | (1,410.1) | ​ | (176.3) | ​ | 12.5% | ​ |
| Operating income | ​ | 1,535.5 | ​ | 1,189.7 | ​ | 345.8 | ​ | 29.1% | ​ |
| Non‑operating income (expense) | ​ | (57.0) | ​ | (34.2) | ​ | (22.8) | ​ | 66.6% | ​ |
| Income before income taxes | ​ | 1,478.5 | ​ | 1,155.5 | ​ | 323.0 | ​ | 28.0% | ​ |
| Income taxes | ​ | ​ (532.8) | ​ | ​ (423.4) | ​ | ​ (109.4) | ​ | ​ 25.8% | ​ |
| Equity earnings of affiliate | ​ | ​ 3.3 | ​ | ​ 6.7 | ​ | ​ (3.4) | ​ | ​ (50.3)% | ​ |
| Net income attributable to non‑controlling interest | ​ | (3.2) | ​ | (2.8) | ​ | (0.4) | ​ | 14.3% | ​ |
| Net income attributable to SCC | ​ | $945.9 | ​ | $736.0 | ​ | $209.9 | ​ | $28.5% | ​ |

#### NET SALES

In the first quarter of 2025 totaled $3,121.9 million, reflecting a 20.1% increase compared to the same period in 2024. This performance was mainly supported by increased sales volumes of copper (+3.6%), molybdenum (+9.9%), silver (+14.1%), and zinc (+42.4%), along with higher prices for copper (LME, +10.7%), molybdenum (+3.0%), silver (+38.4%), and zinc (+16.2%).

The table below outlines the average published market metal prices for our metals for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ ​ | ​ | ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- |
| Copper price ($per pound—LME) | ​ | $4.24 | ​ | $3.83 | ​ | 10.7% | ​ |
| Copper price ($per pound—COMEX) | ​ | $4.57 | ​ | $3.86 | ​ | 18.4% | ​ |
| Molybdenum price ($per pound)(1) | ​ | $20.43 | ​ | $19.84 | ​ | 3.0% | ​ |
| Zinc price ($per pound—LME) | ​ | $1.29 | ​ | $1.11 | ​ | 16.2% | ​ |
| Silver price ($per ounce—COMEX) | ​ | $32.31 | ​ | $23.35 | ​ | 38.4% | ​ |

(1) Platts Metals Week Dealer Oxide

The table below provides our metal sales as a percentage of our total net sales for the three-month period ended March 31, 2025 and 2024:

| ​ ​ ​ ​ ​ ​ Sales as a percentage of total net sales | ​ ​ Three Months Ended March 31, 2025 | ​ ​ ​ 2024 ​ |
| --- | ---: | ---: |
| Copper | 77.9% | 78.6% |
| Molybdenum | 9.6% | 10.5% |
| Silver | 5.7% | 4.3% |
| Zinc | 3.6% | 2.7% |
| Other by‑products | 3.2% | 3.9% |
| **Total** | 100.0% | 100.0% |

The table below provides our copper sales by type of product for the three-month periods ended March 31, 2025 and 2024. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation.

| ​ ​ Copper Sales (million pounds) | ​ | ​ Three Months Ended March 31, 2025 | ​ | ​ 2024 | ​ | ​ Variance | ​ | ​ ​ ​ % Change ​ | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Refined (including SX‑EW) | ​ | 250.3 | ​ | 267.3 | ​ | (17.0) | ​ | (6.3)% | ​ |
| Rod | ​ | 91.5 | ​ | 91.8 | ​ | (0.3) | ​ | (0.3)% | ​ |
| Concentrates and other | ​ | 195.2 | ​ | 159.4 | ​ | 35.8 | ​ | 22.5% | ​ |
| **Total** | ​ | 537.0 | ​ | 518.5 | ​ | 18.5 | ​ | 3.6% | ​ |

The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three-month period ended March 31, 2025 and 2024:

| ​ ​ ​ ​ Copper Sales by product type | ​ ​ Three months ended March 31, 2025 | ​ ​ 2024 |
| --- | ---: | ---: |
| Refined (including SX‑EW) | 46.6% | 51.6% |
| Rod | 17.0% | 17.7% |
| Concentrates and other | 36.3% | 30.7% |
| **Total** | 100.0% | 100.0% |

#### OPERATING COSTS AND EXPENSES

The table below summarizes the production cost structure by major components as a percentage of total production cost:

| ​ ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 | ​ ​ ​ 2024 ​ |
| --- | ---: | ---: |
| Power | 12.9% | 13.0% |
| Labor | 11.9% | 11.8% |
| Fuel | 15.2% | 16.0% |
| Maintenance | 24.8% | 22.7% |
| Operating material | 18.9% | 19.4% |
| Other | 16.3% | 17.1% |
| Total | 100.0% | 100.0% |

Operating costs and expenses were $1,586.4 million in the first quarter of 2025, compared to $1,410.1 million in the same period of 2024. The increase of $176.3 million was primarily due to:

v ​ ​ ​ ​

Operating cost and expenses for the first quarter of 2024 $ 1,410.1

Plus: ​ ​ ​

- Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 152.7

​ - Inventory variance 79.9 ​ ​

​ - Workers participation 47.1 ​ ​

​ - Repairing materials, principally heavy equipment spare parts 19.0 ​ ​

​ - Exchange rate variance 10.2 ​ ​

​ - Other net (3.7) ​ ​

- Increase in depreciation, amortization and depletion expense. 14.8
- Increase in volume and cost of metals purchased from third parties. ​ ​ 8.9
- Increase in selling, general and administrative expenses. ​ ​ 0.9

Less: ​ ​ ​

- Decrease in exploration expense. ​ ​ (0.9)

Operating cost and expenses for the first quarter of 2025 ​ $ 1,586.4

#### NON-OPERATING INCOME (EXPENSE)

Non-operating income (expense) represented a net expense of $56.9 million in the three-month period ended March 31, 2025, compared to a net expense of $34.2 million in the same period of 2024.

The $22.7 million increase in the expense level was due to:

- $32.7 million increase in other expense, which includes a $9.9 million asset impairment at Tia Maria project.
- $11.4 million increase in interest expense, net of capitalized interest, partially offset by
- $21.4 million increase in interest income due to higher cash balances.

#### INCOME TAXES

| ​ ​ ​ ​ | ​ ​ ​ | ​ ​ ​ Three Months Ended March 31, 2025 | ​ ​ ​ ​ 2024 ​ |
| --- | --- | ---: | ---: |
| Provision for income taxes ($ in millions) | ​ | $532.8 ​ | $423.4 ​ |
| Effective income tax rate | ​ | 36.0% | 36.6% |

In addition to the income taxes of Peru, Mexico and the United States, the provision for income taxes also includes the mining royalties from Peru and Mexico and the Peruvian special mining tax.

#### SEGMENT RESULT ANALYSIS

We have three segments: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations.

The table below presents information regarding the volume of our copper sales by segment for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ Copper Sales (million pounds) | ​ | ​ ​ Three Months Ended March 31, 2025 | ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ |
| --- | --- | ---: | ---: | --- | ---: | ---: | --- |
| Peruvian operations | ​ | 246.3 | 215.0 | ​ | 31.3 | 14.6% | ​ |
| Mexican open‑pit | ​ | 290.2 | 307.1 | ​ | (16.9) | (5.5)% | ​ |
| Mexican IMMSA unit | ​ | 5.3 | 7.9 | ​ | (2.6) | (33.5)% | ​ |
| Other and intersegment elimination | ​ | (4.7) | (11.5) | ​ | 6.8 | (59.2)% | ​ |
| Total copper sales | ​ | 537.0 | 518.5 | ​ | 18.5 | 3.6% | ​ |

The table below presents information regarding the volume of sales by segment of our significant by-products for the three-month period ended March 31, 2025 and 2024:

| ​ ​ By‑product Sales (million pounds, except silver—million ounces) Peruvian operations: | ​ ​ ​ | ​ Three Months Ended March 31, 2025 ​ | ​ ​ | ​ 2024 ​ | ​ ​ | ​ Variance ​ | ​ ​ | ​ ​ ​ % Change ​ ​ ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Molybdenum contained in concentrate | ​ | 7.7 | ​ | 7.3 | ​ | 0.4 |  | 5.8% |  |
| Silver | ​ | 1.7 | ​ | 1.4 | ​ | 0.3 |  | 19.9% |  |
| Mexican open‑pit operations: | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Molybdenum contained in concentrate | ​ | 9.3 | ​ | 8.2 | ​ | 1.1 |  | 13.7% |  |
| Zinc | ​ | 33.0 | ​ | 4.8 | ​ | 28.2 | ​ | 582.5% | ​ |
| Silver | ​ | 3.1 | ​ | 2.9 | ​ | 0.2 |  | 7.8% |  |
| IMMSA unit | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Zinc‑refined and in concentrate | ​ | 47.5 | ​ | 51.7 | ​ | (4.2) |  | (8.0)% |  |
| Silver | ​ | 1.6 | ​ | 1.7 | ​ | (0.1) |  | (7.4)% |  |
| Other and intersegment elimination | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Silver | ​ | (0.7) | ​ | (0.9) | ​ | 0.2 |  | (19.4)% |  |
| Total by‑product sales | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Molybdenum contained in concentrate | ​ | 17.0 | ​ | 15.5 | ​ | 1.5 |  | 10.0% |  |
| Zinc‑refined and in concentrate | ​ | 80.5 | ​ | 56.6 | ​ | 24.0 |  | 42.4% |  |
| Silver | ​ | 5.7 | ​ | 5.0 | ​ | 0.7 |  | 14.1% |  |

### Peruvian Open-pit Operations:

| ​ ​ ​ | ​ ​ | ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ | ​ % Change | ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: |
| Net sales | ​ | $1,266.0 | ​ | $1,028.7 | ​ | $237.3 | ​ | ​ | 23.1% |
| Operating costs and expenses | ​ | (704.5) | ​ | (571.2) | ​ | (133.3) | ​ | ​ | 23.3% |
| Operating income | ​ | $561.5 | ​ | $457.5 | ​ | $104.0 | ​ | ​ | 22.7% |

Net sales in the first quarter of 2025 increased $237.3 million compared to the same period in 2024. This significant growth was driven by higher sales volumes of copper (+14.5%), molybdenum (+5.3%), and silver (+22.8%), as well as higher prices for copper (LME, +10.7%), molybdenum (+3.0%), and silver (+38.4%).

Operating costs and expenses were $704.5 million in the first quarter of 2025 compared to $571.2 million in the same period of 2024. The increase of $133.3 million was primarily due to:

| ​ | ​ ​ ​ | ​ ​ |
| --- | --- | --- |
| ​ | Operating costs and expenses for the first quarter of 2024 | $571.2 |
| ​ | Plus: ​ | ​ |
| ​ | • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: | ​ 131.2 |
| ​ | ​ - Inventory variance 109.5 | ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts 11.1 | ​ ​ |
| ​ | ​ - Workers Participation 10.2 | ​ ​ |
| ​ | ​ - Other net 0.4 | ​ ​ |
| ​ | • Increase in depreciation, amortization and depletion expense. ​ | ​ 13.2 |
| ​ | Less: ​ | ​ ​ |
| ​ | • Decrease in cost of metals purchased from third parties. ​ | ​ (8.8) |
| ​ | • Decrease in exploration expenses. ​ | ​ (2.0) |
| ​ | • Decrease in selling, general and administrative expenses. ​ | (0.3) |
| ​ | Operating costs and expenses for the first quarter of 2025 ​ | $704.5 |

Mexican Open-pit Operations:

| ​ ​ ​ | ​ ​ ​ | ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- |
| Net sales | ​ | $1,749.4 | ​ | $1,466.0 | ​ | $283.4 | ​ | ​ | 19.3% | ​ |
| Operating costs and expenses | ​ | (783.9) | ​ | (715.0) | ​ | (68.9) | ​ |  | 9.6% | ​ |
| Operating income | ​ | $965.5 | ​ | $751.0 | ​ | $214.5 | ​ | ​ | 28.6% | ​ |

Net sales in the first quarter of 2025 increased $283.4 million compared to the same period in 2024. This significant growth was mainly driven by higher sales volumes of molybdenum (+14.0%), silver (+8.9%) and zinc. This was supported by full-capacity production at the Buenavista zinc concentrator, which contributed significantly to total production; zinc sales volumes reached 33.0 million pounds in the first quarter of 2025. Additionally, higher prices for copper (COMEX, +18.4%), zinc (+16.2%), molybdenum (+3.0%), and silver (+38.4%) further supported the rise in net sales. However, these positive effects were slightly offset by a decrease in copper sales volumes (-5.5%).

Operating costs and expenses were $783.9 million in the first quarter of 2025 compared to $715.0 million in the same period of 2024. The increase of $68.9 million was primarily due to:

| ​ | ​ ​ ​ ​ ​ |
| --- | --- |
| ​ | Operating costs and expenses for the first quarter of 2024 $715.0 |
| ​ | Plus: ​ ​ ​ |
| ​ | • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 42.4 |
| ​ | ​ - Workers participation 35.9 ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts 9.4 ​ ​ |
| ​ | ​ - Sales expenses 8.2 ​ ​ |
| ​ | ​ - Exchange rate variance 6.3 ​ ​ |
| ​ | ​ - Energy costs 5.2 ​ ​ |
| ​ | ​ - Operations contractors 3.1 ​ ​ |
| ​ | ​ - Other net, partially offset by 2.1 ​ ​ |
| ​ | ​ - Inventory variance (27.8) ​ ​ |
| ​ | • Increase in volume and cost of metals purchased from third parties. ​ ​ 31.0 |
| ​ | Less: ​ ​ ​ |
| ​ | • Decrease in exploration expense. ​ (2.3) |
| ​ | • Decrease in depreciation, amortization and depletion expense. (2.0) |
| ​ | • Decrease in selling, general and administrative expenses. ​ ​ (0.2) |
| ​ | Operating costs and expenses for the first quarter of 2025 ​ $783.9 |

Mexican Underground Operations (IMMSA):

| ​ ​ ​ | ​ | ​ ​ Three Months Ended March 31, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- |
| Net sales | ​ | $155.5 | ​ | $146.4 | ​ | $9.1 | ​ | ​ | 6.2% | ​ |
| Operating costs and expenses | ​ | (137.0) | ​ | (153.2) | ​ | 16.2 | ​ |  | (10.6)% | ​ |
| Operating income | ​ | $18.4 | ​ | $(6.8) | ​ | $25.2 | ​ | ​ | (371.2)% | ​ |

Net sales in the first quarter of 2025 increased by $9.1 million compared to the same period in 2024. This growth was driven by higher prices for copper (COMEX, +18.4%), zinc (+16.2%) and silver (+38.4%). However, this effect was partially offset by a decrease in the sales volumes of copper (-33.5%), zinc (-8.1%) and silver (-4.9%).

Operating costs and expenses were $137.0 million in the first quarter of 2025 compared to $153.2 million in the same period of 2024. The decrease of $16.2 million was primarily due to:

Operating costs and expenses for the first quarter of 2024 $ 153.2

Less: ​ ​ ​

- Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: (18.1)

​ - Energy costs (7.9) ​ ​

​ - Labor costs (4.0) ​ ​

​ - Operations contractors (3.5) ​ ​

​ - Repairing materials, principally heavy equipment spare parts (1.5) ​ ​

​ - Other net (1.2) ​ ​

Plus: ​ ​ ​

- Increase in exploration expense. ​ 0.7
- Increase in depreciation, amortization and depletion expense. ​ ​ 0.6
- Increase in volume and cost of metals purchased from third parties. ​ ​ 0.4
- Increase in selling, general and administrative expenses. ​ 0.2

Operating costs and expenses for the first quarter of 2025 ​ $ 137.0

#### Intersegment Eliminations and Adjustments:

The net sales, operating costs and expenses and operating income discussed above will not be directly equal to amounts in our condensed consolidated statement of earnings because the adjustments of intersegment operating revenues and expenses must be taken into account. Please see Note 14 “Segment and Related Information” of the condensed consolidated financial statements.

### LIQUIDITY AND CAPITAL RESOURCES

### Cash flow:

The following table shows the cash flow for the three-month period ended March 31, 2025 and 2024 (in millions):

| ​ ​ | ​ | ​ ​ 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- |
| Net cash provided by operating activities | ​ | $721.4 | ​ | $659.7 | ​ | $61.7 | ​ |
| Net cash (used in) provided by investing activities | ​ | $(290.7) | ​ | $56.2 | ​ | $(346.9) | ​ |
| Net cash provided by (used in) financing activities | ​ | $432.9 | ​ | $(620.1) | ​ | $1,053.0 | ​ |

### Net cash provided by operating activities:

The change in net cash from operating activities for the three-month periods ended March 31, 2025 and 2024 include, in millions, the following significant items:

| ​ ​ | ​ | ​ ​ 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ | ​ % Change | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: |
| Net income | ​ | $949.1 | ​ | $738.8 | ​ | $210.3 | ​ | ​ | 28.5% |
| Depreciation, amortization and depletion | ​ | 223.8 | ​ | 209.0 | ​ | 14.8 | ​ |  | 7.1% |
| Provision for deferred income taxes | ​ | 28.2 | ​ | 19.1 | ​ | 9.1 | ​ |  | 47.5% |
| Loss on foreign currency transaction effect | ​ | 14.0 | ​ | 3.8 | ​ | 10.2 | ​ |  | 267.8% |
| Other adjustments to net income | ​ | 11.3 | ​ | (0.2) | ​ | 11.5 | ​ |  | (5,729.9)% |
| Change in operating assets and liabilities | ​ | (504.9) | ​ | (310.8) | ​ | (194.1) | ​ |  | 62.4% |
| Net cash provided by operating activities | ​ | $721.4 | ​ | $659.7 | ​ | $61.7 | ​ | ​ | 9.4% |

Three months ended March 31, 2025: Net income was $949.1 million, which represented approximately 131.6% of the net operating cash flow. The cash flow from operating assets and liabilities decreased $504.9 million due to the following:

- $(358.1) million increase in trade accounts receivable, which was mainly attributable to an increase in metal prices and reported sales volumes in the first quarter of 2025.
- $(273.7) million decrease in accounts payable and accrued liabilities, which was primarily driven by income tax payments at our operations and by workers’ participation payments at our Peruvian operations.
- $85.3 million net decrease in inventory, which was primarily driven by a $92.2 million drop in the work in process inventory at our Peruvian operations.
- $42.0 million decrease in other operating assets and liabilities, net.

Three months ended March 31, 2024: Net income was $738.8 million, which represented approximately 111.9% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by $310.8 million due to the following:

- $301.6 million increase in other operating assets and liabilities, net.
- $8.2 million net increase in inventory.
- $1.0 million decrease in net, accounts payable and receivable at our Peruvian and Mexican operations.

### Net cash used in investing activities:

Three months ended March 31, 2025: Net cash used in investing activities included $317.8 million for capital investments. The capital investments included:

- $157.7 million of investments at our Mexican operations:
- $32.8 million for the new tailings disposal deposit at Buenavista mine,
- $21.4 million for the IMMSA unit,
- $12.1 million for land for new projects,
- $9.3 million for the water supply system at La Churea,
- $96.6 million for replacement and maintenance expenditures, and
- $(14.5) million increase in capital expenditures incurred but not yet paid.
- $160.1 million of investments at our Peruvian operations:
- $43.7 million for the purchase of land at the Los Chancas project,
- $7.4 million for the relocation of the leaching crusher at Toquepala,
- $4.8 million for the Tia Maria project,
- $4.2 million for the cathode stripping machine at Ilo refinery,
- $3.0 million for the modernization of the delamination machine at Toquepala,
- $2.2 million for the electric cogeneration at Ilo smelter,
- $78.3 million for replacement and maintenance expenditures, and
- $16.5 million decrease in capital expenditures incurred but not yet paid.

Investment activities in the first three months of 2025 included $27.2 million of net purchase of short-term investments.

Three months ended March 31, 2024: Net cash used in investing activities included $213.8 million for capital investments. Capital investments included:

- $143.3 million of investments at our Mexican operations:
- $31.8 million for the IMMSA unit,
- $31.6 million for the tailing deposits of new concentrator,
- $13.2 million for Buenavista Zinc project,
- $8.3 million for Bella Union mine,
- $45.6 million for various replacement and maintenance expenditures, and
- $12.8 million in capital expenditures incurred but not yet paid.
- $70.5 million of investments at our Peruvian operations:
- $5.3 HPGR optimization at Cuajone,
- $2.9 million for the maintenance workshops at Cuajone,
- $1.0 million for the relocation of the leaching crusher at Toquepala,
- $0.8 million for the Maintenance workshops at Toquepala concentrator,
- $0.2 Quebrada Honda filter plant,
- $56.5 million for various other replacement and maintenance expenditures, and
- $3.8 million in capital expenditures incurred but not yet paid.

Investment activities in the first three months of 2024 included $270.0 million of net proceeds of short-term investments.

### Dividends:

On April 10, 2025, the Board of Directors authorized a quarterly cash dividend of $0.70 per share of common stock and a stock dividend of 0.0099 shares of common stock per share of common stock, payable on May 2, 2025 for shareholders of record at the close of business on May 19, 2025.

In lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $81.13, which is the average of the high and low share price on April 10, 2025.

### Capital Investment and Exploration Programs:

A discussion of our capital investment programs is an important part of understanding our liquidity and capital resources. We expect to meet the cash requirements for these capital investments from cash on hand, internally generated funds and from additional external financing if required. For information regarding our capital investment programs, please see the discussion under the caption “Capital Investment Programs” under this Item 2.

### Contractual Obligations:

There have been no material changes in our contractual obligations in the first quarter of 2025. Please see item 7 in Part II of our 2024 annual report on Form 10-K.

NON-GAAP INFORMATION RECONCILIATION

Operating cash cost: Following is a reconciliation of “Operating Cash Cost” (see page 37) to cost of sales (exclusive of depreciation, amortization and depletion) as reported in our condensed consolidated statement of earnings, in millions of dollars and dollars per pound of copper in the table below:

| ​ ​ ​ ​ ​ | ​ ​ ​ | ​ ​ Three Months Ended March 31, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Three Months Ended March 31, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Cost of sales (exclusive of depreciation, amortization and depletion) | ​ | $1,319.2 | ​ | $2.58 | ​ | $1,157.6 | ​ | $2.27 | ​ |
| Add: | ​ |  | ​ | ​ | ​ |  | ​ | ​ | ​ |
| Selling, general and administrative | ​ | 31.7 | ​ | 0.06 | ​ | 30.8 | ​ | 0.06 | ​ |
| Sales premiums, net of treatment and refining charges | ​ | (35.0) | ​ | (0.07) | ​ | (4.9) | ​ | (0.01) | ​ |
| Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Workers’ participation | ​ | (107.0) | ​ | (0.21) | ​ | (59.9) | ​ | (0.12) | ​ |
| Cost of metals purchased from third parties | ​ | (50.6) | ​ | (0.10) | ​ | (34.5) | ​ | (0.07) | ​ |
| Royalty charge and other, net | ​ | (22.3) | ​ | (0.04) | ​ | (6.0) | ​ | (0.01) | ​ |
| Inventory change | ​ | (85.7) | ​ | (0.17) | ​ | (4.1) | ​ | (0.01) | ​ |
| **Operating Cash Cost before by‑product revenues** | **​** | **$1,050.2** | **​** | **$2.05** | **​** | **$1,079.0** | **​** | **$2.11** | **​** |
| Add: | ​ |  | ​ |  | ​ |  | ​ |  | ​ |
| By‑product revenues(1) | ​ | (652.5) | ​ | ​ (1.28) | ​ | (520.4) | ​ | ​ (1.02) | ​ |
| Net revenue on sale of metal purchased from third parties | ​ | (6.0) | ​ | ​ (0.01) | ​ | (11.8) | ​ | ​ (0.02) | ​ |
| Add: | ​ |  | ​ |  | ​ |  | ​ |  | ​ |
| Total by‑product revenues | ​ | (658.5) | ​ | (1.29) | ​ | (532.2) | ​ | (1.04) | ​ |
| **Operating Cash Cost net of by‑product revenues** | **​** | **$391.7** | **​** | **$0.77** | **​** | **$546.8** | **​** | **$1.07** | **​** |

(1) By-product revenues included in our presentation of operating cash cost contain the following:

| ​ ​ ​ ​ ​ | ​ ​ ​ | ​ ​ Three Months Ended ​ March 31, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Three Months Ended ​ March 31, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Molybdenum | ​ | $(300.5) | ​ | $(0.59) | ​ | $(273.5) | ​ | $(0.54) | ​ |
| Silver | ​ | (156.6) | ​ | (0.31) | ​ | (102.1) | ​ | (0.20) | ​ |
| Zinc | ​ | (100.9) | ​ | (0.20) | ​ | (45.7) | ​ | (0.09) | ​ |
| Sulfuric Acid | ​ | (58.4) | ​ | (0.11) | ​ | (69.3) | ​ | (0.14) | ​ |
| Gold and others | ​ | (36.1) | ​ | (0.07) | ​ | (29.8) | ​ | (0.06) | ​ |
| **Total** | **​** | **$(652.5)** | **​** | **$(1.28)** | **​** | **$(520.4)** | **​** | **$(1.02)** | **​** |

## Market risk

As filed, 4,245 characters.

### Commodity price risk:

For additional information on metal price sensitivity, refer to “Metal Prices” in Part I, Item 2 of this quarterly report on Form 10-Q for the period ended March 31, 2025.

### Foreign currency exchange rate risk:

Our functional currency is the U.S. dollar. Portions of our operating costs are denominated in Peruvian soles and Mexican pesos. Given that our revenues are primarily denominated in U.S. dollars, when inflation or deflation in our Mexican or Peruvian operations is not offset by a change in the exchange rate of the sol or the peso to the dollar, our financial position, results of operations and cash flows could be affected by local cost conversion when expressed in U.S. dollars. In addition, the dollar value of our net monetary assets denominated in soles or pesos can be affected by an exchange rate variance of the sol or the peso, resulting in a re-measurement gain or loss in our financial statements. Recent inflation and exchange rate variances are provided in the table below for the three-month periods ended March 31, 2025 and 2024:

| ​ ​ ​ ​ ​ ​ Peru: | ​ ​ Three Months Ended March 31, 2025 | ​ ​ ​ 2024 |
| --- | ---: | ---: |
| Peruvian inflation rate | 0.9% | 1.6% |
| Initial exchange rate | 3.770 | 3.713 |
| Closing exchange rate | 3.677 | 3.721 |
| Appreciation/(devaluation) | 2.5% | (0.2)% |
| Mexico: |  |  |
| Mexican inflation rate | 0.9% | 1.4% |
| Initial exchange rate | 20.268 | 16.894 |
| Closing exchange rate | 20.318 | 16.678 |
| Appreciation/(devaluation) | (0.2)% | 1.3% |

### Change in monetary position:

Assuming an exchange rate variance of 10% at March 31, 2025, we estimate our net monetary position in Peruvian sol and Mexican peso would increase (decrease) our net earnings as follows:

*($ in millions)*

| ​ ​ ​ ​ | ​ | ​ ​ Effect in net earnings |
| --- | --- | ---: |
| Appreciation of 10% in U.S. dollar vs. Peruvian sol | ​ | $15.1 |
| Devaluation of 10% in U.S. dollar vs. Peruvian sol | ​ | $(18.5) |
| Appreciation of 10% in U.S. dollar vs. Mexican peso | ​ | $(3.2) |
| Devaluation of 10% in U.S. dollar vs. Mexican peso | ​ | $3.9 |

### Open sales risk:

Our provisional copper and molybdenum sales contain an embedded derivative that is required to be separate from the host contract for accounting purposes. The host contract is the receivable from the sale of copper and molybdenum concentrates at prevailing market prices at the time of the sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to settlement. See Note 13 to our condensed consolidated financial statements for further information about these provisional sales.

### Short-term Investments:

For additional information on our trading securities and available-for-sale investments, refer to “Short-term Investments” in Part I, Item 1 of this quarterly report on Form 10-Q for the period ended March 31, 2025.

Cautionary Statement:

Forward-looking statements in this report and in other Company statements include statements regarding expected commencement dates of mining or metal production operations, projected quantities of future metal production, anticipated production rates, operating efficiencies, costs and expenditures as well as projected demand or supply for the Company’s products. Actual results could differ materially depending upon factors including the risks and uncertainties relating to general U.S. and international economic and political conditions, the cyclical and volatile prices of copper, other commodities and supplies, including fuel and electricity, availability of materials, insurance coverage, equipment, required permits or approvals and financing, the occurrence of unusual weather or operating conditions, lower than expected ore grades, water and geological problems, the failure of equipment or processes to operate in accordance with specifications, failure to obtain financial assurance to meet closure and remediation obligations, labor relations, litigation and environmental risks as well as political and economic risk associated with foreign operations. Results of operations are directly affected by metal prices on commodity exchanges that can be volatile.

## Controls and procedures

As filed, 4,238 characters.

#### EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of March 31, 2025, the Company conducted an evaluation under the supervision and with the participation of the Company’s disclosure committee and the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness and the design and operation of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of March 31, 2025, to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is:

1\. Recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and

2\. Accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) that occurred during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

### Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Southern Copper Corporation:

### Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of Southern Copper Corporation and subsidiaries (the “Company”) as of March 31, 2025, the related condensed consolidated statements of earnings, comprehensive income, cash flows and changes in equity for the three-month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of earnings, comprehensive income, cash flows and changes in equity for the year then ended (not presented herein); and in our report dated March 3, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

### Basis for Review Results

This interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion.

Galaz, Yamazaki, Ruiz Urquiza, S.C.

Affiliate of a Member Firm of Deloitte Touche Tohmatsu Limited

|  |  |
| --- | --- |
|  | ​ |
| /s/ Galaz, Yamazaki, Ruiz Urquiza, S.C. | ​ |
| Mexico City, Mexico | ​ |
| April 30, 2025 | ​ |
| ​ | ​ |

## Risk factors

As filed, 2,723 characters.

The Company's operations and financial results are subject to various risks and uncertainties, including those described in “Risk Factors” included in Part I, Item 1A of our Annual report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 3, 2025. The following supplements and updates the risk factor previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

***Potential developments in the United States, regulatory uncertainty, tariff threats and trade tensions may affect the Company’s business and results of operations.***

Our business operations may be adversely affected by changes in regulatory policies. Imposing new tariffs on imports could significantly affect our cost structures and pricing strategies. The uncertainty surrounding potential tariff policies may complicate our supply chain planning and international trade relationships while increasing costs for raw materials and goods. These events, should they materialize, may impact our profitability and competitive positioning in the market.

Additionally, changes in international trade policies and relationships may affect global commodity prices and market conditions and could have a material adverse impact on our business and results of operations. The adoption and expansion of trade restrictions; trade tensions; or other changes in governmental policies related to taxes, tariffs, trade agreements or any policies, are difficult to predict and could adversely affect the demand for our products, our costs, our customers, our suppliers and the U.S. economy and, consequently, could have a material adverse effect on our cash flows, competitive position, financial condition or results of operations. In April 2025, reciprocal tariffs were enacted by the United States government for imports from several countries. Later in the month, most of these tariffs were paused for 90 days. China promptly responded to raise duties on imports of goods from the United States by levying new tariffs on US products. The financial markets reacted to these developments, causing fluctuations in the market prices for our main products and our common stock. We cannot assure that the market prices of our products and our common stock, our financial condition or our results of operations will not be adversely affected by any potential future developments related to tariffs, trade tensions or regulatory uncertainty.

Despite our risk management efforts and mitigation strategies, we cannot provide any assurance that such measures will be successful in addressing or minimizing the impact of political, regulatory, and trade-related risks on our business operations and financial results.

Filed Apr 30, 2025.
Source: SEC EDGAR, the filing index for accession 0001558370-25-005975. Last ingested by Listed: Nov 4, 2026, 00:34 ET. No prices; not investment advice.