0

Southern Copper CorporationSeptember, 2020

1

I. Introduction

2

This presentation contains certain statements that are neither reported financial results nor other

historical information. These estimates are forward-looking statements within the meaning of the

safe-harbor provisions of the securities laws. These forward-looking estimates are subject to risk

and uncertainties that could cause actual results to differ materially from the expressed in the

forward-looking statements. Many of these risks and uncertainties relate to factors that are

beyond Southern Copper’s (SCC) ability to control or estimate precisely, such as future market

conditions, commodity prices, the behavior of other market participants and the actions of

governmental regulators. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of the date of this presentation. SCC does not

undertake any obligation to publicly release any revision to these forward-looking estimates to

reflect events or circumstances after the date of this presentation.

Safe Harbor Statement

3

Corporate Structure

100.0% (*)

99.29 % 99.96 %

11.1% (*)

Public Float

SCC Peru Branch Minera Mexico

(*) As of June 30, 2020

AMERICASMINING

CORPORATION

88.9% (*)

China49%

Asia Ex China12%

Europe16%

USA8%

Japan4%

Other11%

Transport11%

Electrical Network

24%

Construction30%

Industrial Machinery

10%

Consumer & General Products

25%

LME Copper Cash Price vs. Inventories

Copper Consumption by End-use

Solid Fundamentals Copper Consumption by Region

Wood Mackenzie 2018

Copper – The Best Fundamental Story in Commodities

4

― COVID-19 has dramatically changed the expected supply

and demand balance, affecting both of them.

― As of June 30th, refined copper inventories increased by

48K tons since Dec-19.

― Difficult to predict any market direction. At this point,

equilibrium has been found at a much lower activity level.

Wood Mackenzie 2018

► Refined copper inventories have decreased by 34%, since its

peak in March, 2018.

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2-J

an-1

5

30

-Ap

r-1

5

25

-Au

g-1

5

18

-De

c-1

5

15

-Ap

r-1

6

11

-Au

g-1

6

6-D

ec-1

6

4-A

pr-

17

31

-Ju

l-1

7

23

-No

v-1

7

22

-Ma

r-1

8

19

-Ju

l-1

8

13

-No

v-1

8

12

-Ma

r-1

9

9-J

ul-1

9

1-N

ov-1

9

28

-Fe

b-2

0

26

-Jun

-20

LME COMEX shanghai LME Cash

5

Southern Copper Strengths

►Highest copper reserves of the industry

►Excellent organic growth projects

►Low cost, fully integrated operations

►Experienced management team

►Strong financial performance / investment grade since 2005

►Outstanding dividend history

►Good long-term copper & by-product fundamentals

6

II. Overview of Operations

7

Peru

Ilo

Mexico

Copper open pit mines

Underground mines

Smelters and Refineries

Key

Company Overview

Copper Reserves 1: 67.6 mmt

2020 Cash Cost $ 0.72/lb.

2020 Estimates (@ $2.75 x Lb of Cu):

Copper Production: 997 kt

Sales: $ 7.5 B

EBITDA: $ 3.5 B

47% of Sales

#1 copper company by reserves 2

#5 copper producer 3

#10 copper smelter 3

#7 refinery 3

Source: Company FilingsNotes: 1 Copper contained in reserves based on US$2.90 per pound of copper as of December 31, 20192 Based on available companies reports3 Wood Mackenzie Limited 2017

Santa Barbara

Charcas

Taxco

San Luis Potosi

Santa Eulalia

San Martin

Cuajone

La Caridad

Buenavista

ToquepalaTia Maria

Projects

El Arco

El Pilar

Los Chancas

Michiquillay

8

Copper Reserves as Reported SCC Highlights

►#1 mine life among copper producers

►#5 world’s largest producer of mined copper

►Highly diversified geographical presence

►Four large-scale open-pit mines

►A strong pipeline of world class copper

greenfield projects and several other

opportunities

Mine Life (years of production)

World’s Largest Copper Reserves

67.6

52.6

46.644.4

28.8

19.217.3

13.1

0

10

20

30

40

50

60

70

80

SC

C

Fre

ep

ort

Co

de

lco

BH

P B

illito

n

Gle

nco

reX

str

ata

Fir

st

Qu

an

tum

An

glo

Am

eri

ca

n

Rio

Tin

to

Co

pp

er

Re

se

rve

s (

Mt)

Source 10K 10K Annual Rep. 20F Reserve Rep. Annual Rep. Annual Rep. Annual Rep.

Period Dec.31, 2019 Dec.31, 2019 Dec.31, 2019 Jun. 30, 2019 Dec. 31, 2019 Dec. 31, 2019 Dec. 31, 2019 Dec. 31, 2019

Cu Price $2.90 $2.50 $2.96 $2.65 N/A $3.00 $2.70 $2.97

94

68

49

36 34

27 27 2623 21

0

20

40

60

80

100

SCC2015

SCC2019

SCC afterexpansion

(2028)

Freeport FirstQuantum

AngloAmerican

Codelco BHPBilliton

Rio Tinto Xstrata

Geographic Footprint & Product Diversification

2019 Revenue by Product 2019 Revenue by Market

9

Copper81%

Molybdenum8%

Zinc4%

Silver3%

Other4%

Asia 40%

Mexico 28%

United States12%

Europe 8%

Other LatAm7%

Peru 5%

10

Low Cost Operations

Cash Cost per Pound of Copper Produced

Net of By-Products

Operating Cash Cost per Pound of Copper

Produced

Low Cost Drivers

Fully integrated low cost operations

World class assets

Significant SX-EW production

Strong by-product credits

Management focus on cost efficiency and growth

(1) 2019

Cost Structure (1)

Operating Materials

18%

Fuel13%

Power15%

Labor14%

Maintenance21%

Other19%

1.66

1.441.49 1.54 1.52

1.42

1.26

1.20

1.70

2015 2016 2017 2018 2019 1Q20 2Q20

(US

$/lb

)

1.11

0.950.92

0.87 0.88

0.76

0.67

0.6

0.8

1.0

1.2

2015 2016 2017 2018 2019 1Q20 2Q20

(US

$/lb)

11

Global WeightedAvg.

138.0 c/lb

2019 Copper Production Cash Cost by Company

12

III. Financial Overview

13

SCC Financial Summary

(US$ MM) 2017 2018 2019

Copper Price (LME) US$ per pound 2.80 2.96 2.72 2.62 2.75

Income Statement:

Net Revenues $6,655 $7,097 $7,286 $7,257 $7,503

EBITDA 3,292 3,556 3,527 3,322 3,526

EBITDA Margin 49% 50% 48% 46% 47%

U.S. Income Tax Reform Adjustment (743)

Net Income 729 1,543 1,486 1,466 1,600

Dividends paid per share 0.59 1.40 1.60 0.60 0.60

Balance Sheet Statement:

Cash, Equivalents & Short Term

Investments $1,055 $1,058 $2,006 $2,640 $2,783

Total Assets 13,771 14,485 16,407 17,083 17,260

Total Debt 5,957 5,960 6,941 6,541 6,541

Total Liabilities 7,621 7,872 9,549 9,098 9,141

Total Shareholders' Equity 6,108 6,567 6,810 7,933 8,067

Cash Flow Statement:

Capital Expenditures $1,024 $1,121 $708 $800 $800

Free Cash Flow 1

953 1,114 1,204 1,377 1,520

Dividends paid to common shareholders 456 1,082 1,237 464 464

Total Debt / EBITDA 1.8x 1.7x 2.0x 2.0x 1.9x

Net Debt / EBITDA 1.5x 1.4x 1.4x 1.2x 1.1x

1 Free Cash Flow defined as net cash from operating activities less capital expenditures.

2020 E

Top Tier Margins and Conservative Leverage for Increased Financial Flexibility

2019 Total Debt / EBITDA (x)2019 EBITDA Margin (%)

14Source: Bloomberg Consensus

Amortization Schedule

Source: Company Reports and Bloomberg Consensus

Solid Financial Performance

$1,000

$1,500

$1,200

$1,100

$1,000

$51

$500

$300

$400

2050

2045

2042

2040

2035

2028

2025

2022

2020

15%

34%

40%

48%

48%

49%

52%

Freeport

Anglo

American

First

Quantum

Rio Tinto

SCC

Antofagasta

BHP

4.8

4.6

2.0

1.0

1.1

0.9

0.6

First

Quantum

Freeport

SCC

Antofagasta

BHP

Anglo

American

Rio Tinto

15Source: SCC

Toquepala Concentrator Expansion

4Q18 - $1.2B - 100K Tons Cu, 3.1K

Tons Mo

2017-2020 2021-2024Buenavista:

- $3.1B program to increase capacity

from 180K Tons Cu to 500K Tons Cu,

4.6K Tons MoBuenavista Zinc Conc. 2022 - $413M 20K

Tons Cu, 100K Tons Zn

Los Chancas Conc. & SX/EW

1H27 - $2.8B - 130K Tons Cu,

7.5K Tons MoPilares 2022 - $159M 35K Tons Cu

Investment Program to SignificantlyIncrease Production

Board approved Other projects

2018-2028 Capex Program Overview (MM) 2018-2028 Copper Production Forecast (‘000 MT Cu)

Tia Maria SX/EW 2H24 – $1.4B - 120K

Tons Cu

El Arco Conc. & SX/EW 2H27 -

$2.8B 190K Tons Cu, 105K Oz

Au

Ilo Smelter & Refinery

Expansion 1H25 - $1.3

El Pilar 1Q22 - $256M – 35K Tons Cu

MEXICO PERU

Michiquillay 1H28 - $2.5B -

225K Tons Cu

Empalme Smelter 1H25 -

$1.1B

1,053

678 800

1,705

2,031

2,862 2,738

2,126

2,960

2,076

358

200

600

1,000

1,400

1,800

2,200

2,600

3,000

3,400

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Average:$1.8 B

884 994 997 986 950

1,067 1,105 1,127 1,159

1,298

1,752

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

+98%

Key Differentiators to Achieve Lower Capital Intensity

• Reduced mining preparation cost due to low pre stripping for Tia Maria and Buenavista projects

• Experienced project development team focused on capital efficiency16

Best-in-class Mining Projects Reaching Completion Providing Competitive Cash Costs and Increased Production Levels

Initial Capex % of Total Incremental Production Capital Intensity

(US$ MM) Capex Cu Eq. (kt/y) (US$/tpy Cu Eq.)

Brownfield Projects

Toquepala concentrator expansion Expansion (N) 1,253.2 8.5% 100.0 12,532

Buenavista SXEW III Expansion (N) 1,363.5 9.3% 120.0 11,363

Buenavista concentrator expansion Expansion (N) 1,785.4 12.1% 188.0 9,497

Buenavista Zinc Probable 413.0 2.8% 61.7 6,697

Pilares Extension 159.0 1.1% 35.0 4,543

Total / Weighted average intensity 4,974.1 33.8% 504.7 9,856

Greenfield Projets

Tia Maria SXEW Probable 1,400.0 9.5% 120.0 11,667

Los Chancas Probable 2,800.0 19.0% 150.0 18,667

Michiquillay Possible 2,500.0 17.0% 225.0 11,111

El Pilar Probable 256.0 1.7% 35.0 7,314

El Arco Possible 2,800.0 19.0% 209.8 13,343

Total / Weighted average intensity 9,756.0 66.2% 739.8 13,187

Weighted average project capital intensity of existing projects

US$ 000 per tonne of Cu equivalent annual incremental production

Source: Wood Mackenzie (Global copper mine supply summary, 1Q 2019); SCC fi l ings and presentations

Project Capital Intensity at SCC Projects

Type

Industry-Wide Capital Intensity Comparison vs. SCC Projects

5.9

12.7 12.6 12.3

9.9

11.8

14.7

13.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Restarts Extensions of existingmine life

Expansions to existingMine/Plant (X)

Expansions newprocess plant (N)

SCC Brownfield Probable Possible SCC Greenfield

$2,728

$1,945$2,212

$3,292 $3,556 $3,527 $3,526

47%

38% 41% 49%

50% 48% 47%

2014 2015 2016 2017 2018 2019 2020E

SCC EBITDA and % Margin(in US$ millions)

SCC is the Premier Copper Play

• World class assets in investment grade countries.

• #1 in reserves of any company with various organic growth prospects.

- Copper production heading towards 1.8M Tons by 2028.

• Capacity to deliver projects through flexible capital structure and significant cash generation

capability. Investments focused on cost competitiveness.

• Fully integrated low cost operations. Expects cash cost of $0.72 per pound by 2020.

• Outstanding dividend history.

• Experienced management with proven track record.

SCC’s Major Strengths

17

Cu price $3.11 $2.50 $2.21 $2.80 $2.75$2.72$2.96