# Southern Copper Corp/: Form 10-Q for the period ended Jun 30, 2025

- Company: [Southern Copper Corp/](/companies/scco.md) (CIK 1001838)
- Form: 10-Q
- Filed: 2025-07-31
- Accepted by EDGAR: Jul 31, 2025, 15:43 ET
- Period: 2025-06-30
- Accession: 0001558370-25-009879
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1001838/000155837025009879/scco-20250630x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1001838/000155837025009879/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $3.05bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $6.17bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $1.21bn | us-gaap:CostOfRevenue |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $2.53bn | us-gaap:CostOfRevenue |
| Selling, general and administrative | 3 months, 2025-04-01 to 2025-06-30 | $32.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-01-01 to 2025-06-30 | $64.1m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $1.59bn | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $3.12bn | us-gaap:OperatingIncomeLoss |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $1.11bn | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $976.7m | us-gaap:ProfitLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $1.93bn | us-gaap:ProfitLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $1.21 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $2.39 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $1.21 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $2.39 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 807,800,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 804,100,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-04-01 to 2025-06-30 | $976.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $1.70bn | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-04-01 to 2025-06-30 | $235.7m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $553.5m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-04-01 to 2025-06-30 | $557.4m | us-gaap:PaymentsOfDividendsCommonStock |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $1.11bn | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | at 2025-06-30 | $3.33bn | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $7.00bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $19.55bn | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $1.33bn | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2025-06-30 | $6.75bn | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2025-06-30 | $9.98bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 76,464 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 second quarter of 2025, 74.1% of our revenue came from the sale of copper; 11.6% from molybdenum; 6.6% from silver; 4.0% from zinc; and 3.7% from other products, including gold, sulfuric acid, and other materials.
- Copper: In the second quarter of 2025, copper prices per pound experienced variability (LME: fell from $4.42 to $4.32, or -2.3%; COMEX: rose from $4.55 to $4.72 or +3.7%). Based on supply and demand dynamics, we estimate that the deficit at 2025 year-end will stand at approximately 300,000 tonnes. Copper inventories worldwide have dropped 30%, going from 541,000 tonnes at the end March 2025 to 381,000 tonnes at the end of June 2025. We estimate that this inventory currently covers approximately five days of global demand.

In the first half of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in July 11, 2025, the COMEX price was 119 cents per pound or 27% above the LME price. This huge difference reflected the strong possibility that a 50% tariff will be imposed on U.S. copper imports from various countries.

Although we maintain a very positive long-term outlook for copper, we believe high tariffs for international trade from the U.S. will affect economic growth worldwide, consequently impacting copper demand in the long run.

- Molybdenum: Accounted for 11.6% of our sales in the second quarter of 2025 and is currently our most important by-product. Molybdenum prices averaged $20.57 per pound in the second quarter of 2025, compared to $21.69 in the same period of 2024, reflecting a decrease of 5.2%.

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 6.6% of our sales in the second quarter of 2025. We believe that silver prices will be supported by demand for industrial use and precious metals.
- Zinc: Average zinc prices decreased 7.0% in the second 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 4.0% of our sales in the second quarter of 2025.
- Production: In 2025, we expect our copper production to reach 965,300 tonnes, a decrease of 0.9% over final production in 2024. Last year we drove our Pilares project to full capacity and we expect this project to contribute 32,400 tonnes of copper in 2025.

Regarding by-products, we expect to produce 173,400 tonnes of zinc from our mines, up 33% from 2024 production level. This growth will be driven by the production of our Buenavista Zinc concentrator (110,700 tonnes), which is operating at full capacity. We also expect to produce 28,700 tonnes of molybdenum in 2025, which represents a decrease of 1.0% compared to 2024 production levels. 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 second quarter of 2025, we spent $235.7 million on capital investments; this represented 24.2% of net income and a decrease of 29.0% 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 and six-month periods ended June 30, 2025 and 2024 (in millions, except copper price, percentages and per share amounts):

| ​ ​ ​ | ​ | ​ ​ ​ Three months ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ | ​ ​ % Change | ​ ​ | ​ ​ ​ Six months ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ | ​ ​ % Change | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Copper price LME | ​ | ​ 4.32 | ​ | ​ 4.42 | ​ | ​ (0.10) |  | (2.3)% | ​ | ​ 4.28 | ​ | ​ 4.13 | ​ | ​ 0.15 |  | 3.6% | ​ |
| Copper price COMEX | ​ | ​ 4.72 | ​ | ​ 4.55 | ​ | ​ 0.17 | ​ | 3.7% | ​ | ​ 4.65 | ​ | ​ 4.21 | ​ | ​ 0.44 | ​ | 10.5% | ​ |
| Pounds of copper sold | ​ | ​ 494.0 | ​ | ​ 509.3 | ​ | ​ (15.3) |  | (3.0)% | ​ | ​ 1,031.0 | ​ | ​ 1,027.8 | ​ | ​ 3.2 |  | 0.3% | ​ |
| Net sales | ​ | $3,051.0 | ​ | $3,118.3 | ​ | $(67.3) |  | (2.2)% | ​ | $6,172.9 | ​ | $5,718.1 | ​ | $454.8 |  | 8.0% | ​ |
| Operating income | ​ | $1,587.0 | ​ | $1,607.3 | ​ | $(20.3) |  | (1.3)% | ​ | $3,122.5 | ​ | $2,797.0 | ​ | $325.5 |  | 11.6% | ​ |
| Net income attributable to SCC | ​ | $973.4 | ​ | $950.2 | ​ | $23.2 | ​ | 2.4% | ​ | $1,919.4 | ​ | $1,686.2 | ​ | $233.1 | ​ | 13.8% | ​ |
| Earnings per share | ​ | $1.22 | ​ | $1.22 | ​ | $(0.00) | ​ | (0.3)% | ​ | $2.41 | ​ | $2.17 | ​ | $0.24 | ​ | 11.1% | ​ |
| Dividends per share (cash and stock) | ​ | $1.40 | ​ | $1.20 | ​ | $0.20 | ​ | 16.7% | ​ | $2.80 | ​ | $2.00 | ​ | $0.80 | ​ | 40.0% | ​ |

Net sales in the second quarter of 2025 totaled $3,051.0 million, representing a 2.2% decline compared to the same period in 2024. This result was primarily driven by a decrease in sales volumes of copper (-3.0%) and lower LME prices for copper (-2.3%), molybdenum (-5.2%), and zinc (-7.0%). These effects were partially offset by an increase in sales volumes of zinc (+14.0%), molybdenum (+2.7%) and silver (+13.9%), and by higher prices for silver (+16.6%) and COMEX copper (+3.7%).

Net income attributable to SCC for the second quarter of 2025 reached $973.4 million, marking a 2.4% increase compared to the same period in 2024. This performance was primarily supported by a reduction in total operating costs and expenses (-3.1%), which was mainly attributable to an inventory variance in the cost of sales, and by an increase in interest income (+100.4%) related to higher cash and short-term investment balances. These positive factors were partially offset by the previously mentioned 2.2% decline in net sales, which reflected lower metal prices and reduced copper sales volumes.

Net sales for the first half of 2025 increased 8.0% compared to the same period in 2024. This growth was driven by higher sales volumes of zinc (+25.3%), copper (+0.3%), molybdenum (+6.1%) and silver (+14.0%) and by higher prices for copper (COMEX +10.5%, LME +3.6%), silver (+26.3%) and zinc (+3.3%). This was slightly offset by a decrease in molybdenum prices (-1.3%).

Net income attributable to SCC in the first six months of 2025 increased by 13.8% compared to the same period in 2024. This improvement was primarily driven by an 8.0% rise in sales and an 89.2% increase in interest income. These positive factors were partially offset by a 4.4% increase in operating costs, mainly related to variances in workers’ participation and inventory, and by a 10.6% increase in income taxes.

**Production:** The table below highlights our mine production data for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ ​ ​ Six months ended June 30, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ ​ ​ % Change ​ ​ |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Copper (in million pounds) | 526.9 | 534.6 | (7.7) | (1.4)% | 1,056.5 | 1,064.3 | (7.8) | (0.7)% |
| Molybdenum (in million pounds) | 17.5 | 16.9 | 0.6 | 3.5% | 34.4 | 32.5 | 1.9 | 5.9% |
| Silver (in million ounces) | 6.0 | 5.2 | 0.8 | 15.4% | 11.4 | 10.0 | 1.5 | 14.6% |
| Zinc (in million pounds) | 101.2 | 64.9 | 36.3 | 56.0% | 188.0 | 123.0 | 65.0 | 52.9% |

The table below highlights our mine production data for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ ​ Copper (in million pounds): | ​ ​ Three Months Ended June 30, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ % Change | ​ ​ ​ | ​ ​ Six Months Ended June 30, 2025 | ​ ​ 2024 | ​ ​ Variance | ​ ​ ​ ​ ​ % Change ​ ​ |
| --- | ---: | ---: | ---: | ---: | --- | ---: | ---: | ---: | ---: |
| Toquepala | 142.8 | 142.1 | 0.7 | 0.5% | ​ | 283.3 | 280.4 | 2.9 | 1.0% |
| Cuajone | 89.0 | 89.9 | (0.9) | (1.0)% | ​ | 180.2 | 180.8 | (0.6) | (0.3)% |
| La Caridad | 63.5 | 64.6 | (1.1) | (1.7)% | ​ | 124.5 | 129.6 | (5.1) | (4.0)% |
| Buenavista | 226.2 | 232.9 | (6.7) | (2.9)% | ​ | 457.4 | 462.8 | (5.4) | (1.2)% |
| IMMSA | 5.3 | 5.1 | 0.3 | 5.2% | ​ | 11.0 | 10.7 | 0.3 | 3.1% |
| Total mined copper | 526.9 | 534.6 | (7.7) | (1.4)% | ​ | 1,056.5 | 1,064.3 | (7.8) | (0.7)% |

Second quarter: Copper mine production in the second quarter of 2025 stood at 526.9 million pounds, a 1.4% reduction compared to the same period of 2024. This decrease was a result of lower production at Buenavista (-2.9%; due to lower ore grades and the fact that the new concentrator is fully dedicated to zinc production), La Caridad (-1.7%; due to lower ore grades and recoveries, partially offset by increased SX-EW production) and Cuajone (-1.0%; due to lower ore grades). These reductions were offset by increased production at Toquepala (+0.5%; due to higher recoveries) and IMMSA (+5.2%; due to higher ore grades).

Molybdenum production increased 3.5% in the second quarter of 2025 compared to the same period of 2024. This growth was largely driven by improved production at our Cuajone (+8.9%), Toquepala (+7.4%), and Buenavista (+0.6%) mines, primarily due to higher ore grades. However, this performance was slightly offset by a decrease in production at our La Caridad (-0.5%) operations, which was driven by lower ore grades and recoveries.

Silver mine production increased 15.4% in the second quarter of 2025 compared to the same period of 2024. This growth was driven by higher production at our Buenavista (+27.9%), La Caridad (+15.2%), IMMSA (+13.4%) and Cuajone (+8.4%) operations. However, this performance was slightly tempered by a decline in production at our Toquepala (-0.6%) mine.

Zinc production increased 56.0% in the second 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 30,894 tonnes of zinc (+126.3%) in the second quarter of 2025.

Six months: Mined copper production in the first six months of 2025 was 1,056.5 million pounds, and represented a slight decrease of 0.7% compared to the same period of 2024. This decline was primarily attributable to lower production at Buenavista (-1.2%, due to lower ore grades and the full allocation of the new concentrator to zinc production), La Caridad (-4.0%; due to lower recoveries) and Cuajone (-0.3%; due to lower ore grades). This was partially offset by an increase in production at our Toquepala (+1.0%; due to higher milling) and IMMSA operations (+3.1%; due to higher ore grades).

Molybdenum production increased 5.9% in the first six months of 2025 compared to the same period in 2024. This rise was mainly due to higher production at our Toquepala (+10.2%), Buenavista (+5.2%) and La Caridad (+5.1%) mines, reflecting an increase in ore grades. Growth, however, was slightly offset by a 0.9% decrease in production at the Cuajone mine.

Silver mine production increased 14.6% in the first six months of 2025, primarily due to higher production at our Buenavista (+36.6%), IMMSA (+10.4%), La Caridad (+5.8%) and Cuajone (+4.3%) operations. This growth was slightly offset by a decline in production at our Toquepala mine (-0.8%).

Zinc production increased 52.9% in the first six months of 2025. This growth was primarily driven by full-capacity operations at the Buenavista Zinc concentrator, which produced 56,227 tonnes during the period.

**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 59. 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 and six-month periods ended June 30, 2025 and 2024:

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

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

| ​ ​ ​ | ​ ​ | ​ ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ | ​ ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | ---: | --- | ---: | --- | ---: | --- | ---: | ---: | --- |
| Total operating cash cost before by‑product revenues | ​ | $1,078.2 | ​ | $1,105.4 | ​ | $(27.2) | (2.5)% | ​ | $2,128.4 | ​ | $2,184.4 | ​ | $(56.0) | (2.6)% | ​ |
| Total by‑product revenues | ​ | $(755.9) | ​ | $(716.4) | ​ | $(39.5) | 5.5% | ​ | $(1,414.4) | ​ | $(1,248.6) | ​ | $(165.8) | 13.3% | ​ |
| Total operating cash cost net of by‑product revenues | ​ | $322.3 | ​ | $389.0 | ​ | $(66.7) | (17.2)% | ​ | $714.0 | ​ | $935.8 | ​ | $(221.8) | (23.7)% | ​ |
| Total pounds of copper produced(2) | ​ | 510.4 | ​ | 513.2 | ​ | (2.8) | (0.5)% | ​ | 1,022.1 | ​ | 1,024.0 | ​ | (1.9) | (0.2)% | ​ |
| **Operating cash cost per pound before by‑product revenues** | **​** | **$2.11** | **​** | **$2.15** | **​** | **$(0.04)** | **(1.9)%** | **​** | **$2.08** | **​** | **$2.13** | **​** | **$(0.05)** | **(2.4)%** | **​** |
| **By‑product revenues per pound** | **​** | **$(1.48)** | **​** | **$(1.40)** | **​** | **$(0.09)** | **6.1%** | **​** | **$(1.38)** | **​** | **$(1.22)** | **​** | **$(0.16)** | **13.5%** | **​** |
| **Operating cash cost per pound net of by‑product revenues** | **​** | **$0.63** | **​** | **$0.76** | **​** | **$(0.13)** | **(16.8)%** | **​** | **$0.70** | **​** | **$0.91** | **​** | **$(0.22)** | **(23.6)%** | **​** |

(1) These are non-GAAP measures. Please see page 59 for reconciliation to GAAP measure.

(2) Net of metallurgical losses.

In the second quarter of 2025, the operating cash cost per pound before by-product revenues fell from $2.15 to $2.11 compared to the same period of 2024, driven mainly by lower operating costs (-2.5%). By-product revenues per pound increased by 6.1% from $1.40 to $1.48. As a result, the operating cash cost per pound net of by-product revenues dropped 16.8%, from $0.76 to $0.63. This reduction reflects effective cost management and higher by-product revenues, primarily from zinc and silver.

For the first six months of 2025, the operating cash cost per pound before by-product revenues decreased from $2.13 to $2.08, which was mainly the result of a decrease in treatment and refining charges due to market conditions. In addition, a 13.5% increase in by-product revenues per pound helped reduce the operating cash cost per pound net of by-product revenues from $0.91 to $0.70. This 23.6% reduction was mainly supported by higher sales volumes for silver and zinc, along with the aforementioned decrease in operating cash costs.

**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 six 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) | ​ | $62.5 | ​ | $17.6 | ​ | $12.5 | ​ | $7.1 |

**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 $553.5 million in the first half of 2025, compared to $545.6 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 Peru:**

Our investments in Peruvian projects that are being built or for which basic or detail engineering is being conducted could surpass $10.3 billion in the next decade.

The openness of the Peruvian government and institutions to private investment; the strong support of local communities; and respect for the rule of law underpin our aggressive investment program. With the support and assistance of Peruvian authorities, the Company is moving forward to secure the administrative permits and licenses that are required prior to investment. The projects’ construction and subsequent operating phases will generate new poles of development; create significant job opportunities; and drive growth in tax revenues at both, national and regional levels.

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 June 30, 2025, the Company had generated 1,376 new jobs, 802 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 with workers from the Islay province. In 2027, when we start operations, the project will generate 764 direct jobs and 5,900 indirect jobs.

The project is in the early construction phase, and progress constructing access roads and platforms has reached 90%. 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.

### Projects in Mexico:

We are currently expecting to obtain permits and licenses that had been put on hold by the previous government in Mexico. We are conducting talks with the current administration to continue rolling out SCC’s Mexican investments for $10.2 billion.

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 that our operations are safe and efficient. 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 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.

### 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.

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 June 6, 2025, the "Framework Agreement for the Development of the Tiaparo Peasant Community and the Los Chancas Mining Project" was signed with the community of Tiaparo. This agreement will be in effect throughout the construction and operation phases of the project. This agreement, as well as the important steps taken to control illegal mining activities related to the project represent important milestones in the development of our Los Chancas project.

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 June 30, 2025, the exploration project’s total progress was 45%. The drilling program was completed, totaling 145,928 meters, and 59,098 core samples were submitted for chemical analysis. Diamond drilling has provided the information necessary to interpret the distribution of mineralization in geological sections and develop geological modeling, which is required for the mineral resource estimate, currently underway. The geometallurgical studies have been successfully completed, and hydrological, hydrogeological, and geotechnical studies for the project are about to begin.

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 ktpy SX-EW operations.

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

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

**SCC continued to strengthen its focus on sustainability and transparency.** For the first time, SCC’s Sustainable Development Report was verified by an independent third party. This verification complies with the standards of ESG rating agencies and bolsters investor confidence by providing detailed information on our performance across 15 material sustainability topics. The most noteworthy results include a 24% reduction in the lost time injury frequency rate since 2023; 39% of our electricity consumption was sourced from renewable energy in 2024; and The Copper Mark certification was achieved for all our open-pit operations.

**SCC was included in the sustainability indices FTSE4Good Developed, FTSE4Good US and FTSE4Good US 100 developed by FTSE Russell.** a subsidiary of the London Stock Exchange Group. This inclusion the Company’s compliance with FTSE Russell’s environmental, social and governance (ESG) standards which are designed to identify companies with exemplary sustainability practices. Southern Copper obtained a score 60% above the average for the nonferrous metals’ subsector. Its presence in the FTSE4Good Developed and FTSE4Good US 100 indices places it among the top sustainability performers in developed markets globally and among the 100 highest-rated companies in the United States, respectively.

The FTSE4Good Index Series is a series of benchmark and tradable indices for ESG. These indices are used by a wide range of market participants to create and evaluate responsible investment funds and other sustainability-focused financial products. FTSE Russell’s ESG assessment considers a broad set of indicators, including climate change strategy; water security and biodiversity (E); health and safety; labor standards and community engagement (S); corporate governance structure; anti-corruption; and risk management practices (G).

**International recognition for conservation of the Mexican gray wolf.** At an event held in Detroit (June 3-4), SCC was recognized by the Tandem Global Awards 2025 in the category of “Mammal Projects.” These awards recognize excellence in corporate conservation by US-based and international companies that implement actions to protect biodiversity and improve natural environments. Buenavista del Cobre’s Environmental Management Unit, located in Cananea (Sonora), was recognized for its participation in the Binational Mexico-United States Program for the Conservation of the the Mexican Gray Wolf. This program focuses on driving genetic recovery and behavioral rehabilitation as well as reintroducing the gray wolf, which is on the brink of extinction, in the natural habitat.

**Tía María: generating sustainable value.** As SCC advances in building the Tía María mining project in Arequipa, Peru, we continue to drive development in neighboring communities by generating employment and hiring local suppliers. To date, we have created 1,376 new jobs. 802 were filled with local applicants, which represents 11% of the economically active population (EAP) of the nearby Tambo valley. SCC has also hired 50 local suppliers in the transportation, general services and machinery rental sectors, consequently improving the quality of life of more than 300 families. By creating employment, hiring local suppliers and rolling out Tía María’s local programs, SCC serves the needs of the majority of the Tambo Valley’s population.

**Driving musical education in Mexican communities.** As part of our Youth Orchestras and Choirs, professionals from the Academy of Music of the Palacio de Minería impart master classes to all students and teachers from the seven communities in Mexico that participate in the project. SCC also offers scholarships to outstanding students who wish to pursue higher learning in Orchestral Conducting and Pedagogy at the Instituto Superior de Música de Puebla, Mexico. This attests to the Company’s commitment to cultural and educational development.

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 and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ Statement of Earnings Data | ​ ​ | ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ | ​ ​ ​ ​ % Change ​ | ​ ​ | ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ | ​ ​ ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Net sales | ​ | $3,051.0 | ​ | $3,118.3 | ​ | $(67.3) | ​ | $(2.2)% | ​ | $6,172.9 | ​ | $5,718.1 | ​ | $454.8 | ​ | $8.0% | ​ |
| Operating costs and expenses | ​ | (1,464.0) | ​ | (1,511.0) | ​ | 47.0 | ​ | (3.1)% | ​ | (3,050.4) | ​ | (2,921.1) | ​ | (129.3) | ​ | 4.4% | ​ |
| Operating income | ​ | 1,587.0 | ​ | 1,607.3 | ​ | (20.3) | ​ | (1.3)% | ​ | 3,122.5 | ​ | 2,797.0 | ​ | 325.5 | ​ | 11.6% | ​ |
| Non‑operating income (expense) | ​ | (43.1) | ​ | (76.7) | ​ | 33.6 | ​ | (43.8)% | ​ | (100.1) | ​ | (110.8) | ​ | 10.8 | ​ | (9.7)% | ​ |
| Income before income taxes | ​ | 1,543.9 | ​ | 1,530.6 | ​ | 13.3 | ​ | 0.9% | ​ | 3,022.4 | ​ | 2,686.2 | ​ | 336.3 | ​ | 12.5% | ​ |
| Income taxes | ​ | (576.0) | ​ | ​ (578.8) | ​ | ​ 2.8 | ​ | ​ (0.5)% | ​ | ​ (1,108.7) | ​ | ​ (1,002.1) | ​ | ​ (106.6) | ​ | ​ 10.6% | ​ |
| Equity earnings of affiliate | ​ | 8.8 | ​ | ​ 2.0 | ​ | ​ 6.8 | ​ | ​ 338.5% | ​ | ​ 12.1 | ​ | ​ 8.6 | ​ | ​ 3.5 | ​ | ​ 40.7% | ​ |
| Net income attributable to non‑controlling interest | ​ | (3.2) | ​ | (3.6) | ​ | 0.4 | ​ | (10.2)% | ​ | (6.4) | ​ | (6.4) | ​ | (0.0) | ​ | 0.2% | ​ |
| Net income attributable to SCC | ​ | $973.4 | ​ | $950.2 | ​ | $23.2 | ​ | $2.4% | ​ | $1,919.4 | ​ | $1,686.2 | ​ | $233.1 | ​ | $13.8% | ​ |

#### NET SALES

In the second quarter of 2025 totaled $3,051.0 million, representing a 2.2% decline compared to the same period of 2024. This result was primarily driven by a decrease in sales volumes of copper (-3.0%) and lower LME prices for copper (-2.3%), molybdenum (-5.2%) and zinc (-7.0%). These effects were partially offset by an increase in sales volumes of zinc (+14.0%), molybdenum (+2.7%) and silver (+13.9%) and by an increase in prices for silver (+16.6%) and COMEX copper (+3.7%).

For the first half of 2025, net sales increased by 8.0% compared to the same period in 2024. This increase was driven by higher sales volumes of zinc (+25.3%), copper (+0.3%), molybdenum (+6.1%) and silver (+14.0%) and improved market prices for copper (COMEX +10.5%, LME, +3.6%), silver (+26.3%) and zinc (+3.3%). This was slightly offset by a decrease in molybdenum prices (-1.3%).

The table below outlines the average published market metal prices for our metals for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ | ​ | ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ % Change ​ | ​ | ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ % Change ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Copper price ($per pound—LME) | ​ | $4.32 | ​ | $4.42 | ​ | (2.3)% | ​ | $4.28 | ​ | $4.13 | ​ | 3.6% | ​ |
| Copper price ($per pound—COMEX) | ​ | $4.72 | ​ | $4.55 | ​ | 3.7% | ​ | $4.65 | ​ | $4.21 | ​ | 10.5% | ​ |
| Molybdenum price ($per pound)(1) | ​ | $20.57 | ​ | $21.69 | ​ | (5.2)% | ​ | $20.50 | ​ | $20.77 | ​ | (1.3)% | ​ |
| Zinc price ($per pound—LME) | ​ | $1.20 | ​ | $1.29 | ​ | (7.0)% | ​ | $1.24 | ​ | $1.20 | ​ | 3.3% | ​ |
| Silver price ($per ounce—COMEX) | ​ | $33.62 | ​ | $28.84 | ​ | 16.6% | ​ | $32.96 | ​ | $26.09 | ​ | 26.3% | ​ |

(1) Platts Metals Week Dealer Oxide

The table below provides our metal sales as a percentage of our total net sales for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ ​ Sales as a percentage of total net sales | ​ ​ Three Months Ended June 30, 2025 | ​ ​ ​ ​ 2024 | ​ ​ ​ ​ Six Months Ended ​ June 30, 2025 | ​ ​ ​ 2024 ​ |
| --- | ---: | ---: | ---: | ---: |
| Copper | 74.1% | 75.9% | 76.0% | 77.1% |
| Molybdenum | 11.6% | 12.2% | 10.6% | 11.4% |
| Silver | 6.6% | 5.0% | 6.1% | 4.7% |
| Zinc | 4.0% | 3.7% | 3.8% | 3.2% |
| Other by‑products | 3.7% | 3.2% | 3.5% | 3.6% |
| **Total** | 100.0% | 100.0% | 100.0% | 100.0% |

The table below provides our copper sales by type of product for the three and six-month periods ended June 30, 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 June 30, 2025 | ​ | ​ 2024 | ​ | ​ Variance | ​ | ​ ​ ​ % Change ​ | ​ | ​ Six Months Ended June 30, 2025 | ​ | ​ 2024 | ​ | ​ Variance | ​ | ​ ​ ​ % Change ​ | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Refined (including SX‑EW) | ​ | 234.0 | ​ | 250.2 | ​ | (16.2) | ​ | (6.5)% | ​ | 484.4 | ​ | 517.6 | ​ | (33.2) | ​ | (6.4)% | ​ |
| Rod | ​ | 86.3 | ​ | 88.9 | ​ | (2.7) | ​ | (3.0)% | ​ | 177.8 | ​ | 180.7 | ​ | (2.9) | ​ | (1.6)% | ​ |
| Concentrates and other | ​ | 173.7 | ​ | 170.1 | ​ | 3.5 | ​ | 2.1% | ​ | 368.9 | ​ | 329.6 | ​ | 39.3 | ​ | 11.9% | ​ |
| **Total** | ​ | 494.0 | ​ | 509.3 | ​ | (15.3) | ​ | (3.0)% | ​ | 1,031.0 | ​ | 1,027.8 | ​ | 3.2 | ​ | 0.3% | ​ |

The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ Copper Sales by product type | ​ ​ Three months ended June 30, 2025 | ​ ​ ​ 2024 ​ | ​ ​ ​ ​ Six months ended June 30, 2025 | ​ ​ 2024 |
| --- | ---: | ---: | ---: | ---: |
| Refined (including SX‑EW) | 47.4% | 49.1% | 47.0% | 50.4% |
| Rod | 17.5% | 17.5% | 17.2% | 17.6% |
| Concentrates and other | 35.1% | 33.4% | 35.8% | 32.1% |
| **Total** | 100.0% | 100.0% | 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 June 30, 2025 | ​ ​ ​ 2024 ​ | ​ ​ ​ Six months ended June 30, ​ 2025 | ​ ​ ​ 2024 ​ |
| --- | ---: | ---: | ---: | ---: |
| Power | 11.2% | 11.6% | 12.1% | 14.3% |
| Labor | 12.3% | 11.9% | 12.1% | 11.3% |
| Fuel | 14.4% | 15.9% | 14.8% | 15.2% |
| Maintenance | 26.2% | 22.8% | 25.5% | 21.2% |
| Operating material | 18.8% | 19.2% | 18.8% | 20.3% |
| Other | 17.1% | 18.6% | 16.7% | 17.7% |
| Total | 100.0% | 100.0% | 100.0% | 100.0% |

Second quarter: Operating costs and expenses were $1,464.0 million in the second quarter of 2025, compared to $1,511.0 million in the same period of 2024. The decrease of $47.0 million was primarily due to:

| ​ | ​ ​ ​ ​ ​ |
| --- | --- |
| ​ | Operating cost and expenses for the second quarter of 2024 $1,511.0 |
| ​ | Less: ​ ​ ​ |
| ​ | • Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: (37.2) |
| ​ | ​ - Inventory variance (41.4) ​ ​ |
| ​ | ​ - Operations contractors (20.0) ​ ​ |
| ​ | ​ - Fuel (15.5) ​ ​ |
| ​ | ​ - Freight, partially offset by (15.0) ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts 33.0 ​ ​ |
| ​ | ​ - Exchange rate variance 13.6 ​ ​ |
| ​ | ​ - Workers participation 5.8 ​ ​ |
| ​ | ​ - Other net 2.2 ​ ​ |
| ​ | • Decrease in selling, general and administrative expenses. ​ (4.9) |
| ​ | • Decrease in depreciation, amortization and depletion expense. (3.4) |
| ​ | • Decrease in selling, general and administrative expenses. ​ ​ (1.5) |
| ​ | Operating cost and expenses for the second quarter of 2025 ​ $1,464.0 |

Six months: Operating costs and expenses were $3,050.4 million in the first six months of 2025 compared to $2,921.1 million in the same period of 2024. The increase of $129.3 million was primarily due to:

Operating cost and expenses for the first six months of 2024 $ 2,921.1

Plus: ​ ​ ​

- Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 108.1

​ - Workers participation 53.0 ​ ​

​ - Repairing materials, principally heavy equipment spare parts 52.1 ​ ​

​ - Inventory variance 38.6 ​ ​

​ - Exchange rate variance 23.9 ​ ​

​ - Other net, partially offset by 2.9 ​ ​

​ - Freight (21.8) ​ ​

​ - Reagents (20.6) ​ ​

​ - Operations contractors (19.9) ​ ​

- Increase in volume and cost of metals purchased from third parties. ​ ​ 16.3
- Increase in depreciation, amortization and depletion expense. 11.4

Less: ​ ​ ​ ​

- Decrease in exploration expense. ​ ​ (5.9)
- Decrease in selling, general and administrative expenses. ​ ​ (0.6)

Operating cost and expenses for the first six months of 2025 ​ $ 3,050.4

50

#### NON-OPERATING INCOME (EXPENSE)

Non-operating income (expense) represented a net expense of $43.1 million and $100.1 million in the three and six months ended on June 30, 2025 compared to a net expense of $76.7 million and $110.8 million in the three and six months ended June 30, 2024.

Second quarter: The $33.6 million decrease in the expense level was due to:

- $17.7 million decrease in the net amount of other income (expenses), which includes an insurance compensation payment for $5.7 million in 2025. The 2024 figure included a $4.0 million inventory write-off and a $4.0 million provision for legal liabilities,
- $26.6 million increase in interest income due to higher cash balances, partially offset by
- $10.7 million increase in interest expense, net of capitalized interest.

Six months: The $10.7 million decrease in the expense level was due to:

- $15.1 million increase in the net amount of other income (expenses), which includes a $9.9 million asset impairment at Tia Maria project.
- $22.2 million increase in interest expense, net of capitalized interest, partially offset by
- $48.0 million increase in interest income due to higher cash balances.

#### INCOME TAXES

| ​ ​ ​ ​ | ​ ​ ​ | ​ ​ ​ Six Months Ended June 30, 2025 | ​ ​ ​ ​ 2024 ​ |
| --- | --- | ---: | ---: |
| Provision for income taxes ($ in millions) | ​ | $1,108.7 ​ | $1,002.1 ​ |
| Effective income tax rate | ​ | 36.7% | 37.3% |

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 and six-month periods ended June 30, 2025 and 2024:

| ​ ​ Copper Sales (million pounds) | ​ | ​ ​ Three Months Ended June 30, 2025 | ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ | ​ ​ Six Months Ended June 30, 2025 | ​ 2024 | ​ | ​ ​ Variance | ​ ​ ​ % Change ​ | ​ ​ |
| --- | --- | ---: | ---: | --- | ---: | ---: | --- | ---: | ---: | --- | ---: | ---: | --- |
| Peruvian operations | ​ | 209.8 | 222.6 | ​ | (12.8) | (5.8)% | ​ | 456.1 | 437.6 | ​ | 18.5 | 4.2% | ​ |
| Mexican open‑pit | ​ | 282.4 | 292.1 | ​ | (9.7) | (3.3)% | ​ | 572.6 | 599.2 | ​ | (26.6) | (4.4)% | ​ |
| Mexican IMMSA unit | ​ | 8.2 | 9.7 | ​ | (1.5) | (16.0)% | ​ | 13.4 | 17.6 | ​ | (4.2) | (23.8)% | ​ |
| Other and intersegment elimination | ​ | (6.4) | (15.1) | ​ | 8.7 | (56.6)% | ​ | (11.1) | (26.6) | ​ | 15.5 | (58.3)% | ​ |
| Total copper sales | ​ | 494.0 | 509.3 | ​ | (15.3) | (3.0)% | ​ | 1,031.0 | 1,027.8 | ​ | 3.2 | 0.3% | ​ |

The table below presents information regarding the volume of sales by segment of our significant by-products for the three and six-month periods ended June 30, 2025 and 2024:

| ​ ​ By‑product Sales (million pounds, except silver—million ounces) Peruvian operations: | ​ ​ ​ | ​ Three Months Ended June 30, 2025 ​ | ​ ​ | ​ 2024 ​ | ​ ​ | ​ ​ Variance ​ ​ | ​ ​ ​ % Change ​ ​ ​ | ​ ​ ​ | ​ Six Months Ended June 30, 2025 ​ | ​ ​ | ​ 2024 ​ | ​ ​ | ​ Variance ​ | ​ ​ | ​ ​ ​ % Change ​ ​ ​ | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Molybdenum contained in concentrate | ​ | 8.1 | ​ | 7.5 | ​ | 0.6 | 8.3% | ​ | 15.8 | ​ | 14.8 | ​ | 1.0 |  | 6.8% |  |
| Silver | ​ | 1.6 | ​ | 1.5 | ​ | 0.1 | 7.7% | ​ | 3.3 | ​ | 2.8 | ​ | 0.4 |  | 15.0% |  |
| Mexican open‑pit operations: | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Molybdenum contained in concentrate | ​ | 9.2 | ​ | 9.4 | ​ | (0.2) | (1.7)% | ​ | 18.5 | ​ | 17.5 | ​ | 1.0 |  | 5.6% |  |
| Zinc | ​ | 64.3 | ​ | 39.4 | ​ | 24.9 | 63.3% | ​ | 97.3 | ​ | 44.2 | ​ | 53.1 | ​ | 120.0% | ​ |
| Silver | ​ | 3.4 | ​ | 3.0 | ​ | 0.3 | 11.5% | ​ | 6.5 | ​ | 5.9 | ​ | 0.6 |  | 10.3% |  |
| IMMSA unit | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Zinc‑refined and in concentrate | ​ | 46.7 | ​ | 46.6 | ​ | 0.1 | 0.2% | ​ | 94.2 | ​ | 98.3 | ​ | (4.1) |  | (4.2)% |  |
| Silver | ​ | 1.8 | ​ | 1.6 | ​ | 0.2 | 11.3% | ​ | 3.4 | ​ | 3.3 | ​ | 0.1 |  | 3.1% |  |
| Other and intersegment elimination | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Silver | ​ | (0.7) | ​ | (0.8) | ​ | 0.1 | (11.4)% | ​ | (1.5) | ​ | (1.8) | ​ | 0.3 |  | (17.4)% |  |
| Zinc | ​ | (12.9) | ​ | — | ​ | (12.9) | —% | ​ | (12.9) | ​ | — | ​ | (12.9) |  | —% | ​ |
| Total by‑product sales | ​ | ​ | ​ |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ |  |
| Molybdenum contained in concentrate | ​ | 17.3 | ​ | 16.8 | ​ | 0.5 | 2.7% | ​ | 34.3 | ​ | 32.4 | ​ | 2.0 |  | 6.1% |  |
| Zinc‑refined and in concentrate | ​ | 98.1 | ​ | 86.0 | ​ | 12.1 | 14.0% | ​ | 178.6 | ​ | 142.6 | ​ | 36.0 |  | 25.3% |  |
| Silver | ​ | 6.0 | ​ | 5.3 | ​ | 0.7 | 13.9% | ​ | 11.7 | ​ | 10.3 | ​ | 1.4 |  | 14.0% |  |

### Peruvian Open-pit Operations:

| ​ ​ ​ | ​ ​ | ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ ​ | ​ ​ | ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ | ​ % Change | ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: |
| Net sales | ​ | $1,178.2 | ​ | $1,246.7 | ​ | $(68.5) | ​ | ​ | (5.5)% | ​ | $2,444.2 | ​ | $2,275.4 | ​ | $168.8 | ​ | ​ | 7.4% |
| Operating costs and expenses | ​ | (595.1) | ​ | (626.3) | ​ | 31.2 | ​ |  | (5.0)% | ​ | (1,299.6) | ​ | (1,197.6) | ​ | (102.0) | ​ | ​ | 8.5% |
| Operating income | ​ | $583.1 | ​ | $620.4 | ​ | $(37.3) | ​ | ​ | (6.0)% | ​ | $1,144.6 | ​ | $1,077.9 | ​ | $66.8 | ​ | ​ | 6.2% |

Net sales in the second quarter of 2025 dropped $68.5 million compared to the same period of 2024. This decline was mainly driven by a decrease in copper sales volume (-5.7%) and by lower prices for copper (LME, -2.3%) and molybdenum (-5.2%). These effects were partially offset by an increase in sales volumes of molybdenum (+8.3%) and silver (+7.7%) and by higher silver prices (+16.6%).

Operating costs and expenses were $595.1 million in the second quarter of 2025 compared to $626.3 million in the same period of 2024. The decrease of $31.2 million was primarily due to:

| ​ | ​ ​ ​ | ​ ​ |
| --- | --- | --- |
| ​ | Operating costs and expenses for the second quarter of 2024 | $626.3 |
| ​ | Less: ​ | ​ ​ |
| ​ | • Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: | ​ (14.7) |
| ​ | ​ - Operations contractors (23.7) | ​ ​ |
| ​ | ​ - Inventory variance (16.6) | ​ ​ |
| ​ | ​ - Workers participation, partially offset by (10.1) | ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts 25.0 | ​ ​ |
| ​ | ​ - Exchange rate variance 9.5 | ​ ​ |
| ​ | ​ - Other net 1.2 | ​ ​ |
| ​ | • Decrease in cost of metals purchased from third parties. ​ | ​ (10.6) |
| ​ | • Decrease in depreciation, amortization and depletion expense. ​ | ​ (3.7) |
| ​ | • Decrease in exploration expenses. ​ | ​ (2.3) |
| ​ | • Decrease in selling, general and administrative expenses. ​ | (\*) |
| ​ | Operating costs and expenses for the second quarter of 2025 ​ | $595.1 |

(\*) Less than $0.1 million.

Net sales in the first six months of 2025 increased $168.8 million compared to the same period in 2024. This growth primarily reflects improvements in sales volumes of copper (+4.2%), molybdenum (+6.8%), and silver (+15.0%) as well as an increase in market prices for copper (+3.6%, LME) and silver (+26.3%). However, this was slightly offset by a decrease in molybdenum prices (-1.3%).

Operating costs and expenses in the first six months of 2025 increased $102.0 million to $1,299.6 million compared to $1,197.6 million in the same period of 2024. This was primarily due to:

| ​ | ​ ​ ​ | ​ ​ |
| --- | --- | --- |
| ​ | Operating costs and expenses for the first six months of 2024 | $1,197.6 |
| ​ | Plus: ​ |  |
| ​ | • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: | ​ 116.6 |
| ​ | ​ - Inventory variance 92.8 | ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts 36.2 | ​ ​ |
| ​ | ​ - Exchange rate variance, partially offset by 16.4 | ​ ​ |
| ​ | ​ - Operations contractors (23.3) | ​ ​ |
| ​ | ​ - Other net (5.6) | ​ ​ |
| ​ | • Increase in depreciation, amortization and depletion expense. ​ | 9.5 |
| ​ | Less: ​ | ​ ​ |
| ​ | • Decrease in cost of metals purchased from third parties. ​ | ​ (19.3) |
| ​ | • Decrease in exploration expenses. ​ | ​ (4.3) |
| ​ | • Decrease in selling, general and administrative expenses. ​ | ​ (0.4) |
| ​ | Operating costs and expenses for the first six months of 2025 ​ | $1,299.6 |

Mexican Open-pit Operations:

| ​ ​ ​ | ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ | ​ ​ ​ | ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ ​ | ​ ​ ​ |
| --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- |
| Net sales | $1,754.8 | ​ | $1,738.5 | ​ | $16.3 | ​ | ​ | 0.9% | ​ | $3,504.2 | ​ | $3,204.4 | ​ | $299.7 | ​ | ​ | 9.4% | ​ |
| Operating costs and expenses | (765.9) | ​ | (786.1) | ​ | 20.2 | ​ |  | (2.6)% | ​ | (1,549.7) | ​ | (1,501.1) | ​ | (48.6) | ​ |  | 3.2% | ​ |
| Operating income | $988.9 | ​ | $952.4 | ​ | $36.5 | ​ | ​ | 3.8% | ​ | $1,954.4 | ​ | $1,703.3 | ​ | $251.1 | ​ | ​ | 14.7% | ​ |

Net sales in the second quarter of 2025 increased $16.3 million compared to the same period of 2024. This growth was mainly driven by higher sales volumes of zinc (+63.3%) and silver (+11.5%). This was supported by full-capacity production at the Buenavista zinc concentrator, as zinc sales volumes reached 64.0 million pounds in the second quarter of 2025. Additionally, higher prices for copper (COMEX, +3.7%) and silver (+16.6%) further supported the rise in net sales. However, these positive effects were mostly offset by a decrease in sales volumes of copper (-3.3%) and molybdenum (-1.7%) and by a decrease in prices of molybdenum (-5.2%) and zinc (-7.0%).

Operating costs and expenses were $765.9 million in the second quarter of 2025 compared to $786.1 million in the same period of 2024. The decrease of $20.2 million was primarily due to:

| ​ | ​ ​ ​ ​ ​ |
| --- | --- |
| ​ | Operating costs and expenses for the second quarter of 2024 $786.1 |
| ​ | Less: ​ ​ ​ |
| ​ | • Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: (41.7) |
| ​ | ​ - Exchange rate variance (44.3) ​ ​ |
| ​ | ​ - Inventory variance (17.9) ​ ​ |
| ​ | ​ - Freight, partially offset by, (14.8) ​ ​ |
| ​ | ​ - Energy costs 14.5 ​ ​ |
| ​ | ​ - Workers participation 15.2 ​ ​ |
| ​ | ​ - Other net 5.6 ​ ​ |
| ​ | • Decrease in depreciation, amortization and depletion expense. (6.1) |
| ​ | • Decrease in exploration expense. ​ (0.9) |
| ​ | • Decrease in selling, general and administrative expenses. ​ ​ (0.9) |
| ​ | Plus: ​ ​ ​ |
| ​ | • Increase in volume and cost of metals purchased from third parties. ​ ​ 29.4 |
| ​ | Operating costs and expenses for the second quarter of 2025 ​ $765.9 |

Net sales in the first six months of 2025 increased by $299.7 million compared to the same period of 2024. This growth primarily reflects growth in sales volumes of molybdenum (+5.6%), silver (+10.3%) and zinc (+120.0%). Additionally, positive developments for metal prices, mainly copper (+10.5%, COMEX), silver (+26.3%) and zinc (+3.3%) contributed to this performance. Start-up at the Buenavista zinc concentrator played a pivotal role, as zinc sales volumes reached 97.3 million pounds for the period. However, this was partially offset by a decline in the sales volume of copper (-4.4%) and a decrease in molybdenum prices (-1.3%).

Operating costs and expenses in the first six months of 2025 increased $48.6 million to $1,549.7 million compared to $1,501.1 million in the same period of 2024. This was primarily due to:

| ​ | ​ ​ ​ ​ ​ |
| --- | --- |
| ​ | Operating costs and expenses for the first six months of 2024 $1,501.1 |
| ​ | Plus: ​ ​ ​ |
| ​ | • Increase in volume and cost of metals purchased from third parties. ​ ​ 60.5 |
| ​ | • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 0.6 |
| ​ | ​ - Workers participation 51.1 ​ ​ |
| ​ | ​ - Energy costs 19.7 ​ ​ |
| ​ | ​ - Repairing materials, principally heavy equipment spare parts, partially offset by 15.7 ​ ​ |
| ​ | ​ - Inventory variance (45.7) ​ ​ |
| ​ | ​ - Exchange rate variance (38.0) ​ ​ |
| ​ | ​ - Other net (2.1) ​ ​ |
| ​ | Less: ​ ​ ​ |
| ​ | • Decrease in exploration expense. ​ (3.2) |
| ​ | • Decrease in depreciation, amortization and depletion expense. (8.1) |
| ​ | • Decrease in selling, general and administrative expenses. ​ ​ (1.1) |
| ​ | Operating costs and expenses for the first six months of 2025 ​ $1,549.7 |

Mexican Underground Operations (IMMSA):

| ​ ​ ​ | ​ ​ Three Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ | ​ | ​ ​ Six Months Ended June 30, 2025 | ​ | ​ ​ 2024 | ​ ​ | ​ ​ Variance | ​ ​ | ​ % Change | ​ ​ ​ | ​ ​ ​ |
| --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: | --- |
| Net sales | $179.3 | ​ | $185.2 | ​ | $(6.0) | ​ | ​ | (3.2)% | ​ | $334.7 | ​ | $331.6 | ​ | $3.1 | ​ | ​ | 0.9% | ​ |
| Operating costs and expenses | (161.5) | ​ | (134.1) | ​ | (27.4) | ​ |  | 20.4% | ​ | (298.5) | ​ | (287.3) | ​ | (11.2) | ​ |  | 3.9% | ​ |
| Operating income | $17.8 | ​ | $51.1 | ​ | $(33.4) | ​ | ​ | (65.2)% | ​ | $36.2 | ​ | $44.4 | ​ | $(8.1) | ​ | ​ | (18.3)% | ​ |

Net sales in the second quarter of 2025 decreased $6.0 million compared to the same period of 2024. This decline was primarily driven by a reduction in the copper sales volume (-16.0%) and by a decrease in zinc prices (-7.0%). However, these effects were partially offset by an increase in sales volumes of silver (+11.3%) and zinc (+0.2%) and by higher prices for copper (COMEX, +3.7%) and silver (+16.6%).

Operating costs and expenses were $161.5 million in the second quarter of 2025 compared to $134.1 million in the same period of 2024. The increase of $27.4 million was primarily due to:

Operating costs and expenses for the second quarter of 2024 $ 134.1

Plus: ​ ​ ​

- Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 16.0

​ - Exchange rate variance 23.7 ​ ​

​ - Repairing materials, principally heavy equipment spare parts 1.7 ​ ​

​ - Other net, partially offset by 0.8 ​ ​

​ - Inventory variance (7.4) ​ ​

​ - Energy costs (2.8) ​ ​

- Increase in volume and cost of metals purchased from third parties. ​ ​ 8.1
- Increase in depreciation, amortization and depletion expense. ​ ​ 2.5
- Increase in exploration expense. ​ 1.0

Less: ​ ​ ​

- Decrease in selling, general and administrative expenses. ​ (0.3)

Operating costs and expenses for the second quarter of 2025 ​ $ 161.5

Net sales in the first six months of 2025 increased $3.1 million compared to the same period of 2024. This growth primarily reflects favorable metal price trends, primarily for copper (COMEX, +10.5%), silver (+26.3%), and zinc (+3.3%). Growth in silver sales volumes (+3.1%) boosted this performance. However, these positive effects were partially offset by a drop in sales volumes of copper (-23.8%) and zinc (-4.2%).

Operating costs and expenses in the first six months of 2025 increased by $11.2 million to $298.5 million compared to $287.3 million in the same period of 2024. This was primarily due to:

Operating costs and expenses for the first six months of 2024 $ 287.3

Plus: ​ ​ ​

- Increase in volume and cost of metals purchased from third parties. ​ ​ 8.5
- Increase in depreciation, amortization and depletion expense. ​ ​ 3.2
- Increase in exploration expense. ​ ​ 1.7

Less: ​ ​ ​

- Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: (2.0)

​ - Energy costs (10.6) ​ ​

​ - Inventory variance (9.1) ​ ​

​ - Sales expenses (4.3) ​ ​

​ - Other net, mostly offset by (0.2) ​ ​

​ - Exchange rate variance 22.2 ​ ​

- Increase in selling, general and administrative expenses. ​ (0.1)

Operating costs and expenses for the first six months of 2025 ​ $ 298.5

#### 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 six-month periods ended June 30, 2025 and 2024 (in millions):

| ​ ​ | ​ | ​ ​ 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- |
| Net cash provided by operating activities | ​ | $1,698.2 | ​ | $1,621.8 | ​ | $76.4 | ​ |
| Net cash used in investing activities | ​ | $(983.6) | ​ | $(275.5) | ​ | $(708.1) | ​ |
| Net cash used in financing activities | ​ | $(627.5) | ​ | $(620.1) | ​ | $(7.4) | ​ |

### Net cash provided by operating activities:

The change in net cash from operating activities for the six-month periods ended June 30, 2025 and 2024 include, in millions, the following significant items:

| ​ ​ | ​ | ​ ​ 2025 | ​ | ​ ​ 2024 | ​ | ​ ​ Variance | ​ | ​ % Change | ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | --- | ---: |
| Net income | ​ | $1,925.8 | ​ | $1,692.6 | ​ | $233.2 | ​ | ​ | 13.8% |
| Depreciation, amortization and depletion | ​ | 430.0 | ​ | 418.6 | ​ | 11.4 | ​ |  | 2.7% |
| Provision for deferred income taxes | ​ | 53.2 | ​ | 23.2 | ​ | 30.0 | ​ |  | 129.2% |
| Loss (gain) on foreign currency transaction effect | ​ | 17.8 | ​ | (4.3) | ​ | 22.1 | ​ |  | (513.8)% |
| Other adjustments to net income | ​ | 14.2 | ​ | 4.7 | ​ | 9.5 | ​ |  | 201.2% |
| Change in operating assets and liabilities | ​ | (742.7) | ​ | (513.0) | ​ | (229.7) | ​ |  | 44.8% |
| Net cash provided by operating activities | ​ | $1,698.2 | ​ | $1,621.8 | ​ | $76.4 | ​ | ​ | 4.7% |

Six months ended June 30, 2025: Net income was $1,925.8 million, which represented approximately 113.4% of the net operating cash flow. The cash flow from operating assets and liabilities dropped by $742.7 million due to the following:

- $(368.1) million increase in trade accounts receivable, which was mainly attributable to an increase in metal prices and in reported sales volumes in the first six months of 2025.
- $(394.9) million decrease in accounts payable and accrued liabilities, which was primarily driven by payments of income tax and workers’ participation at our Peruvian and Mexican operations.
- $40.2 million net decrease in inventory, which was primarily driven by a $40.0 million reduction in the work in process inventory.
- $(19.9) million increase in other operating assets and liabilities, net.

Six months ended June 30, 2024: Net income was $1,692.6 million, which represented approximately 104.3% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by $513.0 million due to the following:

- $(481.2) million increase in net, accounts payable and receivable at our Peruvian and Mexican operations.
- $(24.9) million net increase in inventory.
- $(6.9) million increase in other operating assets and liabilities, net.

### Net cash used in investing activities:

Six months ended June 30, 2025: Net cash used in investing activities included $553.5 million for capital investments. The capital investments included:

- $331.4 million of investments at our Mexican operations:
- $86.4 million for the new tailings disposal deposit at Buenavista mine,
- $45.3 million for the IMMSA unit,
- $18.5 million for the water supply system at La Churea,
- $12.3 million for wells and recovered water conduction,
- $12.1 million for land for new projects,
- $164.7 million for replacement and maintenance expenditures, and
- $(7.9) million increase in capital expenditures incurred but not yet paid.
- $222.1 million of investments at our Peruvian operations:
- $43.7 million for the purchase of land at the Los Chancas project,
- $16.0 million for the relocation of the leaching crusher at Toquepala,
- $14.2 million for the Tia Maria project,
- $5.2 million for the cathode stripping machine at the Ilo refinery,
- $4.3 million for the modernization of the delamination machine at Toquepala,
- $4.0 million for the electric cogeneration at Ilo smelter,
- $33.5 million for other minor projects with a budget below $1 million,
- $86.4 million for replacement and maintenance expenditures, and
- $14.8 million decrease in capital expenditures incurred but not yet paid.

Investment activities in the first six months of 2025 included $430.1 million of net purchase of short-term investments.

Six months ended June 30, 2024: Net cash used in investing activities included $545.6 million for capital investments. The capital investments included:

- $409.2 million of investments at our Mexican operations:
- $61.2 million for the IMMSA unit,
- $73.2 million for the tailing deposits of new concentrator,
- $37.2 million for Buenavista Zinc project,
- $13.4 million for Bella Union mine,
- $219.4 million for replacement and maintenance expenditures, and
- $4.8 million in capital expenditures incurred but not yet paid.
- $136.4 million of investments at our Peruvian operations:
- $12.2 million for the HPGR optimization at Cuajone,
- $4.0 million for the maintenance workshops at Cuajone,
- $3.0 million for Tia Maria project,
- $3.0 million for the relocation of the leaching crusher at Toquepala,
- $2.0 million for the Maintenance workshops at Toquepala concentrator,
- $1.1 million for the Quebrada Honda filter plant,
- $104.0 million for replacement and maintenance expenditures, and
- $7.1 million in capital expenditures incurred but not yet paid.

Investment activities in the first six months of 2024 included $270.1 million of net proceed of short-term investments.

### Dividends:

On July 24, 2025, the Board of Directors authorized a quarterly cash dividend of $0.80 per share of common stock and a stock dividend of 0.0101 shares of common stock per share of common stock, payable on September 4, 2025 for shareholders of record at the close of business on August 15, 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 $99.47, which is the average of the high and low share price on July 24, 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 second 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 42) 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 June 30, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Three Months Ended June 30, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Six Months Ended June 30, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Six Months Ended June 30, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Cost of sales (exclusive of depreciation, amortization and depletion) | ​ | $1,211.7 | ​ | $2.37 | ​ | $1,248.9 | ​ | $2.43 | ​ | $2,530.9 | ​ | $2.48 | ​ | $2,406.5 | ​ | $2.35 | ​ |
| Add: | ​ |  | ​ | ​ | ​ |  | ​ | ​ | ​ |  | ​ | ​ | ​ |  | ​ | ​ | ​ |
| Selling, general and administrative | ​ | 32.5 | ​ | 0.06 | ​ | 33.9 | ​ | 0.07 | ​ | 64.1 | ​ | 0.06 | ​ | 64.8 | ​ | 0.06 | ​ |
| Sales premiums, net of treatment and refining charges | ​ | (36.5) | ​ | (0.07) | ​ | (9.8) | ​ | (0.02) | ​ | (71.5) | ​ | (0.07) | ​ | (14.8) | ​ | (0.01) | ​ |
| Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Workers’ participation | ​ | (97.1) | ​ | (0.19) | ​ | (91.2) | ​ | (0.18) | ​ | (204.1) | ​ | (0.20) | ​ | (151.1) | ​ | (0.15) | ​ |
| Cost of metals purchased from third parties | ​ | (63.4) | ​ | (0.12) | ​ | (49.3) | ​ | (0.10) | ​ | (114.0) | ​ | (0.11) | ​ | (83.8) | ​ | (0.08) | ​ |
| Royalty charge and other, net | ​ | (15.4) | ​ | (0.03) | ​ | (16.7) | ​ | (0.03) | ​ | (37.8) | ​ | (0.04) | ​ | (22.7) | ​ | (0.02) | ​ |
| Inventory change | ​ | 46.5 | ​ | 0.09 | ​ | (10.4) | ​ | (0.02) | ​ | (39.2) | ​ | (0.04) | ​ | (14.5) | ​ | (0.01) | ​ |
| **Operating Cash Cost before by‑product revenues** | **​** | **$1,078.3** | **​** | **$2.11** | **​** | **$1,105.4** | **​** | **$2.15** | **​** | **$2,128.4** | **​** | **$2.08** | **​** | **$2,184.4** | **​** | **$2.13** | **​** |
| Add: | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |
| By‑product revenues(1) | ​ | (750.8) | ​ | ​ (1.47) | ​ | (705.0) | ​ | ​ (1.37) | ​ | (1,403.2) | ​ | ​ (1.37) | ​ | (1,225.4) | ​ | ​ (1.20) | ​ |
| Net revenue on sale of metal purchased from third parties | ​ | (5.2) | ​ | ​ (0.01) | ​ | (11.4) | ​ | ​ (0.02) | ​ | (11.1) | ​ | ​ (0.01) | ​ | (23.2) | ​ | ​ (0.02) | ​ |
| Add: | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |
| Total by‑product revenues | ​ | (755.9) | ​ | (1.48) | ​ | (716.4) | ​ | (1.40) | ​ | (1,414.4) | ​ | (1.38) | ​ | (1,248.6) | ​ | (1.22) | ​ |
| **Operating Cash Cost net of by‑product revenues** | **​** | **$322.4** | **​** | **$0.63** | **​** | **$389.0** | **​** | **$0.76** | **​** | **$714.0** | **​** | **$0.70** | **​** | **$935.8** | **​** | **$0.91** | **​** |

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

| ​ ​ ​ ​ ​ | ​ ​ ​ | ​ ​ Three Months Ended ​ June 30, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Three Months Ended ​ June 30, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Six Months Ended ​ June 30, 2025 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ | ​ ​ Six Months Ended ​ June 30, 2024 ​ ​ $ millions | ​ ​ | ​ ​ $ per pound | ​ ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- |
| Molybdenum | ​ | $(354.7) | ​ | $(0.69) | ​ | $(379.2) | ​ | $(0.74) | ​ | $(655.2) | ​ | $(0.64) | ​ | $(652.7) | ​ | $(0.64) | ​ |
| Silver | ​ | (177.6) | ​ | (0.35) | ​ | (139.6) | ​ | (0.27) | ​ | (334.2) | ​ | (0.33) | ​ | (241.7) | ​ | (0.24) | ​ |
| Zinc | ​ | (115.0) | ​ | (0.23) | ​ | (91.0) | ​ | (0.18) | ​ | (215.9) | ​ | (0.21) | ​ | (136.7) | ​ | (0.13) | ​ |
| Sulfuric Acid | ​ | (66.3) | ​ | (0.13) | ​ | (63.9) | ​ | (0.12) | ​ | (124.7) | ​ | (0.12) | ​ | (133.2) | ​ | (0.13) | ​ |
| Gold and others | ​ | (37.2) | ​ | (0.07) | ​ | (31.3) | ​ | (0.06) | ​ | (73.3) | ​ | (0.07) | ​ | (61.0) | ​ | (0.06) | ​ |
| **Total** | **​** | **$(750.8)** | **​** | **$(1.47)** | **​** | **$(705.0)** | **​** | **$(1.37)** | **​** | **$(1,403.2)** | **​** | **$(1.37)** | **​** | **$(1,225.4)** | **​** | **$(1.20)** | **​** |

## Market risk

As filed, 4,455 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 June 30, 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 and six-month periods ended June 30, 2025 and 2024:

| ​ ​ ​ ​ ​ ​ Peru: | ​ ​ Three Months Ended June 30, 2025 | ​ ​ ​ 2024 | ​ ​ ​ Six Months Ended ​ June 30, 2025 | ​ ​ ​ 2024 |
| --- | ---: | ---: | ---: | ---: |
| Peruvian inflation rate | 0.4% | (0.0)% | 1.3% | 1.6% |
| Initial exchange rate | 3.677 | 3.721 | 3.770 | 3.713 |
| Closing exchange rate | 3.549 | 3.837 | 3.549 | 3.837 |
| Appreciation/(devaluation) | 3.5% | (3.1)% | 5.9% | (3.3)% |
| Mexico: |  |  |  |  |
| Mexican inflation rate | 0.9% | 0.4% | 1.8% | 1.7% |
| Initial exchange rate | 20.318 | 16.678 | 20.268 | 16.894 |
| Closing exchange rate | 18.893 | 18.377 | 18.893 | 18.377 |
| Appreciation/(devaluation) | 7.0% | (10.2)% | 6.8% | (8.8)% |

### Change in monetary position:

Assuming an exchange rate variance of 10% at June 30, 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 | ​ | $14.7 |
| Devaluation of 10% in U.S. dollar vs. Peruvian sol | ​ | $(18.0) |
| Appreciation of 10% in U.S. dollar vs. Mexican peso | ​ | $(16.0) |
| Devaluation of 10% in U.S. dollar vs. Mexican peso | ​ | $19.6 |

### 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 June 30, 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, 4,246 characters.

#### EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of June 30, 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 June 30, 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 June 30, 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 June 30, 2025, the related condensed consolidated statements of earnings, comprehensive income, cash flows and changes in equity for the three-month and six-month periods ended June 30, 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 | ​ |
| July 31, 2025 | ​ |
| ​ | ​ |

## Risk factors

As filed, 3,077 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. Most of these tariffs were paused but are expected to go into effect on August 1, 2025. In July 2025, the United States announced trade agreements with the European Union and Japan. The pause for reciprocal tariffs with China expires on August 12, but the trade tensions between these countries have deescalated as negotiations were conducted during July. In addition, on July 30, 2025, the United States also announced a 50% tariff on imports of semi-finished copper products and copper-intensive derivative products effective August 1, 2025. 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 Jul 31, 2025.
Source: SEC EDGAR, the filing index for accession 0001558370-25-009879. Last ingested by Listed: Nov 4, 2026, 00:34 ET. No prices; not investment advice.