Southern Copper : SCC reports 1Q24 results

RESULTS

FIRST QUARTER 2024

Regarding 1Q23's figure, despite reporting better sales volumes for copper (+2.8%) and molybdenum (+8.4%), net sales in 1Q24 were down 6.9% due to lower prices for copper (LME, -5.4%), molybdenum (-38.1%) and zinc (- 21.8%), coupled with a decrease in the sales volumes for zinc (-3.1%) and silver (-0.3%).

• 1Q24 Net income was $736.0 million, which represented an improvement of 65.4% compared to the $445.0 million registered in 4Q23. The net income margin in 1Q24 was 28.3%, versus 19.4% in 4Q23. The 1Q24 Net Income decreased 9.5% when compared to the $813.2 million registered in 1Q23.
• 1Q24 adjusted EBITDA was $1,417.7 million, which represented an increase of 34.3% with regard to the $1,055.5 million registered in 4Q23. The adjusted EBITDA margin in 1Q24 was 54.5% versus 46.0% in 4Q23. The 1Q24 adjusted EBITDA was 9.6% lower when compared to the $1,567.9 million registered in 1Q23.
• Cash flow from operating activities in 1Q24 was $659.9 million, which represented an increase of 22.0% over the $540.9 million posted in 4Q23. This improvement was attributable to strong cash generation at our operations, which was driven by higher sales and cost-control efficiencies.
  The 1Q24 cash flow was 55.7% lower than the $1,185.2 million posted in 1Q23. This decrease was attributable to a $310.8 million increase in working capital, which was driven primarily by our Mexican operations.
• Copper production registered a QoQ increase of 6,181 tons (+2.6%) in 1Q24. Growth in tons produced was primarily attributable to higher production at the Buenavista mine (+8.1%), which includes 2,158 tons of copper from the new zinc concentrator. This was partially offset by a drop in production at Toquepala (-2.7%). These results were driven by changes in ore grades and recoveries.
  Compared to the 1Q23, copper production registered an increase of 16,998 tons (+7.6%) in 1Q24. This was primarily attributable to an increase in copper from concentrate production at all our mines (+12.7%), which included 2,158 tons of copper from the new zinc concentrator. These positive results were partially offset by a decrease in SXEW cathode production at Buenavista (-27.5%) and Toquepala (-3.5%).
  In 4Q23 we reported that our Buenavista operation had experienced difficulties with its water supply. After taking action in 1Q24 to cover water requirements for this facility, we believe we have ensured sufficient supplies to operate our Mexican facilities as forecasted in our annual plan.

• By-productproduction: Mined zinc production stood at 26,366 tons in 1Q24, which represents a 55.7% increase over the figure in 4Q23. This result was mainly driven by the new Buenavista zinc concentrator production of 9,695 tons over the period. Molybdenum production fell 1.4% in 1Q24 compared to 4Q23; this was mainly attributable to a decrease in production at the La Caridad mine (lower grades), which was partially offset by an increase in production at the Peruvian and Buenavista operations. Total mined silver production dropped 0.4% in 1Q23 compared to 4Q23 due to a decrease in production at our IMMSA operations, which was partially offset by higher by-product production at the Buenavista mine.
  When compared to 1Q23, mined zinc production grew 74.9% this quarter, propelled by the first lot of production from the new Buenavista zinc concentrator. Molybdenum production rose 9.5% due to higher production at the Toquepala mine, which was partially offset by lower production at the La Caridad operation. Total mined silver production increased 8.4% in 1Q24; this result was driven primarily by higher production at all our mines, with the exception of Buenavista (-9.5%).
• 1Q24 Operating cash cost per pound of copper, net of by-product revenue credits, was $1.07, down 14.2% with regard to the $1.25 reported in 4Q23. The aforementioned result was mainly driven by lower operating costs (- 5.3%); growth in by-product revenue credits (+5.9%), primarily for molybdenum; and the unit cost effect generated by a 2.2% increase in pounds of copper produced.
• 1Q24, we spent $213.8 million on capital investments, down 10.2% compared to 1Q23 and 16.3% versus the figure in 4Q23. Capital expenditure represented 29% of net income this quarter.
• Dividends: On April 18, 2024, the Board of Directors approved a quarterly stock dividend of 0.0104 shares of common stock per share of common stock payable on May 23, 2024 for shareholders of record at the close of business on May 8, 2024.
  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 $115.13, which is the average of the high and low share price on April 18, 2024.
  Shareholders will not be required to take any action to receive the stock dividend. After the payment date, shareholders' book entry accounts will be credited with the additional shares that represent the stock dividend. When shares are held in a brokerage account in the name of a broker, the additional shares will be distributed to the broker on the shareholder's behalf. The stock dividend is administered by Computershare, the Company's transfer agent.

Mr. German Larrea, Chairman of the Board, commenting on the Company´s progress and current circumstances, said: "This quarter our strengths are once again at the forefront as we report a 65% increase in net earnings compared to 4Q23.This positive result was driven by a 2.6% uptick in copper production; a 14.2% drop in the cash cost; and higher metal prices for copper (+3.2%), molybdenum (+7.8%) and precious metals. Southern Copper continues to focus on organic growth and on ensuring that costs remain at very competitive levels.

In addition to the significant downward revisions to global copper production projections for 2024, we are currently seeing strong market demand on the back of a resilient US economy and new demand from decarbonization technologies and artificial intelligence. We believe these new factors will play a significant role in supporting long-term copper demand, sustaining attractive copper prices."

Key Financial Data

Capital Investments

Our current capital investment program for this decade exceeds $15 billion and includes investments in the Tia Maria, Los Chancas and Michiquillay projects in Peru and in the Buenavista Zinc, Pilares, El Pilar and El Arco projects in Mexico. This capital forecast includes several infrastructure investments, including key investments to bolster the competitiveness of the El Arco project.

Mexican Projects

Buenavista Zinc - Sonora: This project is located in Cananea, Sonora within the Buenavista deposit, where we have built a new concentrator plant. This facility has a production capacity of 100,000 tons of zinc and 20,000 tons of copper per year. The concentrator will double the Company's zinc production capacity.

Project update: the capital budget for the project is $439 million, of which $382.9 million had been invested as of March 31, 2024. Concentrator operation began in 1Q24. We expect to produce 54,500 tons of zinc and 11,900 tons of copper in 2024 and an average of 90,200 tons of zinc and 20,000 tons of copper per year in the next five years.

Peruvian Projects

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 to produce 120,000 tons of SX- EW copper cathodes per year. The estimated capital budget for the project is $1.4 billion.

Southern Copper has been consistently working to promote the welfare of the population of the Islay province. As part of these efforts, we have implemented successful social programs in education, healthcare and productive development to improve the quality of life in the region. We have also promoted agricultural and livestock activities in the Tambo Valley and supported growth in manufacturing, fishing and tourism in Islay.

We reiterate our view that the initiation of construction activities at Tia Maria will generate significant economic opportunities for the Islay province and the Arequipa region. Given the current Peruvian economic situation, it is crucial to move ahead on projects that will stimulate a sustainable growth cycle. We expect to begin the construction phase of the project in the near future. We will make it a priority to hire local labor to fill the 9,000 jobs that we expect to

generate during Tia Maria's construction. Additionally, from day one of our operations, we will generate significant contributions to revenues in the Arequipa region.

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 tons of oxides with a copper content of 0.45% and 52 million tons 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 to produce 130,000 tons of copper and 7,500 tons 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 work on the project's environmental impact assessment.

Project update: The Company continues to engage in coordinated efforts with the Peruvian authorities to eradicate illegal mining activity. Once this process is completed, we will resume the environmental impact assessment and initiate hydrogeological as well as geotechnical studies. We also will conduct a diamond drilling campaign for 40,000 meters to gather additional information on the characteristics of the Los Chancas deposit.

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 tons with an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.

Project update: As of March 31, 2024, we had drilled 80,000 meters (total program = 110,000 meters) and obtained 27,902 core samples for chemical analysis. Diamond drilling is underway, which will provide data for cross section interpretation, geological modeling and resource evaluation. We expect to begin hydrogeological and geotechnical studies soon, and will also assess the results of metallurgical testing at the deposit.

The Company continues to work with the Michiquillay and La Encañada communities based on the guidelines of corresponding social agreements.

Environmental, Social & Corporate Governance (ESG) Practices

Performance on ESG assessments conducted by rating agencies. For the third consecutive year, we were included in S&P Global's Sustainability Yearbook. This means that thanks to our performance in this agency's Corporate Sustainability Assessment evaluation, we are ranked among the top 15% of the best-ratedcompanies in sustainability in mining and metals. Regarding the ESG Risk Ratings Report evaluation by Sustainalytics, SCC reduced its risk level by improving its score within the medium risk category from 27.5 in 2023 to 23.4 in 2024.

Climate action. In the first quarter of 2024, we received clean energy certificates from one of our electricity suppliers in Peru. With this, all the electrical energy we consumed in Peru in 2023 came from renewable sources. Measurements indicate that consumption of renewable electrical energy at SCC increased from 23% to 36% in 2023, which means we have already hit our 2027 target to ensure that 25% of our electricity supply is derived from renewable sources. Over the same period, greenhouse gas emissions dropped 7.5% in 2023 compared to 2022.

Climate Governance. Recently, a briefing from Chapter Zero, home of the Climate Governance Initiative, was held for the directors and management of Southern Copper Corporation to inform them about the risks and opportunities associated with climate change. This initiative, developed in collaboration with the World Economic Forum, aims to support non-executive directors and chairs in integrating climate action into their business strategy.

Exceptional Company. For the second consecutive year, we received the "Exceptional Company" award in Mexico, presented by the Business Coordinating Council, the Communication Council, and the Institute for the Promotion of Quality. On this occasion, the success of our Educational Center model was recognized after outstanding results were reported for mathematics and Spanish and English languages, which are above the national and regional average for the cohort of two thousand students from the four basic level schools sponsored by the Company in Mexico under a voluntary initiative to benefit our employees.

Adding educational quality. We inaugurated the High Performance School (COAR) in Tacna, the Peruvian region where our Toquepala mine operates. This campus houses three hundred outstanding students of the state educational system. Many of these students come from the most vulnerable areas of the region. The COAR facilities will allow them to continue their studies in state-of-the art classrooms, laboratories, libraries, residences and sports areas, thanks to an investment of $26 million through the works for taxes modality.

Conference Call

The Company's first quarter earnings conference call will be held on April 26, 2024, beginning at 11:00 AM - EST (10:00 AM Lima and 9:00 AM Mexico City time).

To participate in the call: Please consider that we are using a new technological platform for this event. It is necessary to register in the following link:

https://register.vevent.com/register/BI92645aca8fa2409a88ad20ac508b841f

At the registration time, you will be provided a dial-in number and a personal confirmation PIN will be generated to access the call.

During the conference call, please join live presentation through Webex at the following link:

https://americasmining.webex.com/americasmining/j.php?MTID=mcd77fb28ff8a4b4092fcc81b3682ff1e

Average Metal Prices

Source: Silver - COMEX; Gold and Zinc - LME; Molybdenum - Metals Week Dealer Oxide

Production and Sales

Southern Copper Corporation

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

(Unaudited)

Southern Copper Corporation

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

As of March 31, 2024, December 31, 2023 and March 31, 2023 there were 773.1 million shares outstanding.

Southern Copper Corporation

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(Unaudited)

Company Profile

Southern Copper Corporation (SCC) is one of the largest integrated copper producers in the world and we believe we currently have the largest copper reserves in the industry. The Company is a NYSE and Lima Stock Exchange listed company that is 88.9% owned by Grupo Mexico, a Mexican company listed on the Mexican stock exchange. The remaining 11.1% ownership interest is held by the international investment community. The Company operates mining units and metallurgical facilities in Mexico and Peru and conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.

SCC Corporate Address

USA

7310 North 16th St, Suite 135

Phoenix, AZ 85020, U. S. A.

Phone: (602) 264-1375

Fax: (602) 264-1397

Mexico

Campos Eliseos N° 400

Colonia Lomas de Chapultepec

Delegacion Miguel Hidalgo

C.P. 11000 - MEXICO

Phone: (5255) 1103-5000

Fax: (5255) 1103-5567

Peru

Av. Caminos del Inca 171

Urb. Chacarilla del Estanque

Santiago de Surco

Lima 15038 - PERU

Phone: (511) 512-0440

Fax: (511) 512-0492

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This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this news release, there are certain factors that could cause results to differ materially from those anticipated by some of the statements made. These factors include those listed in the Company's most recently filed quarterly reports on Form 10-Q and annual report on Form 10-K. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.