Company: SCCO
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001104659-25-104914
Chunk: 10

Company: SOUTHERN COPPER CORP/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2M
Chunk 10
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Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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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.

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EXECUTIVE OVERVIEW

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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.

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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.

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

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●Sales structure: In the third quarter of 2025, 72.5% of our revenue came from the sale of copper; 12.9% from molybdenum; 7.4% from silver; 3.7% from zinc; and 3.5% from other products, including gold, sulfuric acid, and other materials.

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●Copper: In the third quarter of 2025, copper prices per pound reported a stronger performance, with the LME price increasing from $4.17 to $4.44 (+6.5%) and