Company: SCCO
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001558370-25-009879
Chunk: 14

Company: SOUTHERN COPPER CORP/
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 3Q
Chunk 14
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Item 3. Quantitative and Qualitative Disclosure about Market Risk

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Commodity price risk:

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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.

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Foreign currency exchange rate risk:

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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:

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​​​​​​​​​​​​    Three Months Ended         Six Months Ended     ​​June 30, ​​June 30, ​​    2025    2024        2025    2024    Peru:              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