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What changed in SOUTHERN COPPER CORP/'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of SOUTHERN COPPER CORP/'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+537 added−517 removedSource: 10-K (2025-03-03) vs 10-K (2024-02-29)

Top changes in SOUTHERN COPPER CORP/'s 2024 10-K

537 paragraphs added · 517 removed · 390 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

49 edited+28 added−32 removed67 unchanged
Biggest changeHealth campaigns were held in collaboration with healthcare institutions for workers and their families within the communities where we operate, offering general consultations with comprehensive examinations including imaging studies and laboratory tests, with a special focus on breast and prostate cancer screenings. ​ In 2023, the environmental and occupational health and safety management systems from all our mining operations are certified under the respective ISO 140001 and ISO 45001 standards. ​ Health and safety programs include a strong annual training plan, compliance with the regulators at each site, risk management and Behavior Based Safety programs that extend our safety culture to contractors. ​ Talent Attraction and Recruiting ​ We deploy several talent attraction programs, which entail leveraging organizational relations; establishing links with national and regional institutions of higher education in the countries where we operate; and participating in job fairs.
Biggest changeIn partnership with health institutions, we offered campaigns for workers and their families in the communities where we operate providing general screenings; dental care; vaccinations; imaging studies; and laboratory tests, with an emphasis on breast and prostate cancer screening. ​ As of 2024, the occupational health and safety management systems at all our mining operations in Mexico and Peru had been certified under the ISO 45001 standards and through ELSSA certification, awarded by the Social Security Institute (“IMSS”) in Mexico. ​ Our health and safety programs are supported by comprehensive annual training plans.
The Mexican open-pit operations produce copper, with production of by-products of molybdenum, silver and other materials. ​ 3. Mexican underground mining operations, which include five underground mines that produce zinc, copper, lead, silver and gold; and a zinc refinery.
The Mexican open-pit operations produce copper and zinc, with production of by-products of molybdenum, silver and other materials. ​ 3. Mexican underground mining operations, which include five underground mines that produce zinc, copper, lead, silver and gold; and a zinc refinery.
(together with its subsidiaries, the “La Caridad” unit) operates La Caridad, an open-pit copper mine, a copper ore concentrator, a SX-EW plant, a smelter, refinery and a rod plant. The La Caridad refinery has a precious metals plant that produces refined silver, gold and other materials. Operadora de Minas e Instalaciones Mineras, S.A de C.V.
(together with its subsidiaries, the “La Caridad” unit) operates La Caridad, an open-pit copper mine, the Pilares open-pit copper mine, a copper ore concentrator, a SX-EW plant, a smelter, refinery and a rod plant. The La Caridad refinery has a precious metals plant that produces refined silver, gold and other materials. Operadora de Minas e Instalaciones Mineras, S.A de C.V.
Mexican open-pit operations, which include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Sales of its products are recorded as revenue of our Mexican mines.
Mexican open-pit operations, which include the La Caridad-Pilares and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Sales of its products are recorded as revenue of our Mexican mines.
Under Mexican law, mineral resources belong to the Mexican nation and a concession from the Mexican federal government is required to explore or mine mineral reserves. Mining concessions have a 50-year term that can be renewed for another 25 years.
Under Mexican law, mineral resources belong to the Mexican nation and a concession from the Mexican federal government is required to explore or mine mineral reserves. Mining concessions have a 50-year term that can be renewed for another 50 years.
All of our mining, smelting and refining facilities are located in Peru and Mexico and we conduct exploration activities in those countries and in Argentina, Chile and Ecuador. See Item 2 “Properties—Review of Operations” for maps of our principal mines, smelting facilities and refineries.
All of our mining, smelting and refining facilities are located in Peru and Mexico, and we conduct exploration activities in those countries and in Argentina and Chile. See Item 2 “Properties—Review of Operations” for maps of our principal mines, smelting facilities and refineries.
Although the SPCC Peru Branch has no capital or liability that is separate from that held or applicable to SCC, the SPCC Peru Branch is deemed to have equity capital for purposes of determining the economic interests of holders of our investment shares (See Note 14 “Stockholders ´ Equity” of the consolidated financial statements). ​ In April 2005, we acquired Minera Mexico, from Americas Mining Corporation (“AMC”), a subsidiary of Grupo Mexico, our controlling stockholder.
Although the SPCC Peru Branch has no capital or liability that is separate from that held or applicable to SCC, the SPCC Peru Branch is deemed to have equity capital for purposes of determining the economic interests of holders of our investment shares (See Note 14 “Stockholders’ Equity” of the consolidated financial statements). ​ In April 2005, we acquired Minera Mexico, from Americas Mining Corporation (“AMC”), a subsidiary of Grupo Mexico, our controlling stockholder.
For the purpose of clarity, the chart identifies only our main subsidiaries and eliminates intermediate holding companies. ​ ​ We are a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V. (“Grupo Mexico”). As of December 31, 2023, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corporation (“AMC”), owned 88.9% of our capital stock.
For the purpose of clarity, the chart identifies only our main subsidiaries and eliminates intermediate holding companies. ​ ​ We are a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V. (“Grupo Mexico”). As of December 31, 2024, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corporation (“AMC”), owned 88.9% of our capital stock.
Pursuant to this program, through December 31, 2023 we have purchased 119.5 million shares of our common stock at a cost of $2.9 billion. These shares are available for general corporate purposes. We may purchase additional shares from time to time, based on market conditions and other factors.
Pursuant to this program, through December 31, 2024 we have purchased 119.5 million shares of our common stock at a cost of $2.9 billion. These shares are available for general corporate purposes. We may purchase additional shares from time to time, based on market conditions and other factors.
For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this Form 10-K, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are included as exhibits to, and incorporated by reference in this report. ​ ​ 15 Table of Contents
For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this Form 10-K, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are included as exhibits to, and incorporated by reference in this report. ​ ​
The concessions have indefinite terms, subject to our payment of concession fees of up to $3.00 per hectare annually for the mining concessions and a fee based on nominal capacity for the processing concessions. Fees paid during 2023, 2022 and 2021, were approximately $3.4 million, $2.5 million and $2.3 million, respectively.
The concessions have indefinite terms, subject to our payment of concession fees of up to $3.00 per hectare annually for the mining concessions and a fee based on nominal capacity for the processing concessions. Fees paid during 2024, 2023 and 2022, were approximately $5.2 million, $3.4 million and $2.5 million, respectively.
To convert to short tons, multiply by 1.102. All ounces are troy ounces. All distances are in kilometers. To convert to miles, multiply by 0.621. To convert hectares to acres, multiply by 2.47. ​ ORGANIZATIONAL STRUCTURE ​ The following chart describes our organizational structure, starting with our controlling stockholders, as of December 31, 2023.
To convert to short tons, multiply by 1.102. All ounces are troy ounces. All distances are in kilometers. To convert to miles, multiply by 0.621. To convert hectares to acres, multiply by 2.47. ​ ORGANIZATIONAL STRUCTURE ​ The following chart describes our organizational structure, starting with our controlling stockholders, as of December 31, 2024.
(the “Buenavista unit”) operates Buenavista, an open-pit copper mine, which is located on the site of one of the world’s largest copper ore deposits, two copper concentrators and two operating SX-EW plants. Industrial Minera Mexico, S.A. de C.V.
(the “Buenavista unit”) operates Buenavista, an open-pit copper mine, which is located on the site of one of the world’s largest copper ore deposits, two copper concentrators, a zinc concentrator and two operating SX-EW plants. Industrial Minera Mexico, S.A. de C.V.
However, the information found on our website is not part of this or any other report. ​ CAUTIONARY STATEMENT ​ Forward-looking statements in this report and in other Company statements include information regarding expected commencement dates of mining or metal production operations, projected quantities of future metal production, anticipated production rates, operating efficiencies, costs and expenditures, including taxes, as well as projected demand or supply for the Company’s products.
However, the information found on our website is not part of this or any other report. 14 Table of Contents ​ CAUTIONARY STATEMENT ​ Forward-looking statements in this report and in other Company statements include information regarding expected commencement dates of mining or metal production operations, projected quantities of future metal production, anticipated production rates, operating efficiencies, costs and expenditures, including taxes, as well as projected demand or supply for the Company’s products.
Additionally, we have permits in Ilo to use water at three desalination plants that generate water for industrial use and domestic consumption; 12 Table of Contents we believe these facilities will produce sufficient water to cover the requirements of both current and projected needs.
Additionally, we have permits in Ilo to use water at three desalination plants that generate water for industrial use and domestic consumption; we believe these facilities will produce sufficient water to cover the requirements of both current and projected needs.
You may read and copy any document we file at the SEC’s Public Reference Room at 100 F Street NE, Washington, D.C. 20549. The SEC maintains a website that contains annual, quarterly and current 14 Table of Contents reports, proxy statements and other information that issuers (including Southern Copper Corporation) file electronically with the SEC.
You may read and copy any document we file at the SEC’s Public Reference Room at 100 F Street NE, Washington, D.C. 20549. The SEC maintains a website that contains annual, quarterly and current reports, proxy statements and other information that issuers (including Southern Copper Corporation) file electronically with the SEC.
The new workers of Buenavista receive health services through the Mexican Institute of Social Security as is the case for all Mexican workers. ​ ​ FUEL, ELECTRICITY AND WATER SUPPLIES ​ The principal raw materials used in our operations are fuel, gas, electricity and water.
The new workers of Buenavista receive health services through the Mexican Institute of Social Security as is the case for all Mexican workers. ​ ​ 11 Table of Contents FUEL, ELECTRICITY AND WATER SUPPLIES ​ The principal raw materials used in our operations are fuel, gas, electricity and water.
The per pound LME zinc price during the last 5 and 10 year periods averaged $1.27 and $1.18, respectively. ​ 7 Table of Contents COMPETITIVE CONDITIONS ​ Competition in the copper market is based primarily on price and service basis, with price being the most important factor when supplies of copper are ample.
The per pound LME zinc price during the last 5- and 10-year periods averaged $1.29 and $1.20, respectively. ​ 7 Table of Contents COMPETITIVE CONDITIONS ​ Competition in the copper market is based primarily on price and service basis, with price being the most important factor when supplies of copper are ample.
The market prices for our three principal by-products over the last 10 years are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum (Dealer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oxide Platt’s ​ ​ ​ ​ ​ ​ ​ ​ Silver (COMEX) Metals Week) ​ Zinc (LME) Year High Low Average High Low Average High Low Average 2014 22.05 15.39 19.04 15.05 8.75 11.30 1.10 0.88 0.98 2015 18.35 13.67 15.68 9.40 4.30 6.59 1.09 0.66 0.88 2016 20.67 13.74 17.10 8.60 5.10 6.42 1.32 0.73 0.95 2017 18.49 15.37 17.03 10.25 6.85 8.13 1.53 1.00 1.31 2018 17.55 13.95 15.65 13.00 10.60 11.86 1.64 1.04 1.33 2019 19.39 ​ 14.28 ​ 16.16 ​ 12.70 ​ 8.28 ​ 11.27 ​ 1.37 ​ 0.90 ​ 1.16 2020 29.25 ​ 11.74 ​ 20.62 ​ 10.90 ​ 7.00 ​ 8.57 ​ 1.29 ​ 0.72 ​ 1.03 2021 29.40 ​ 21.46 ​ 25.18 ​ 20.10 ​ 9.95 ​ 15.51 ​ 1.73 ​ 1.15 ​ 1.36 2022 26.89 ​ 17.55 ​ 21.76 ​ 31.85 ​ 13.90 ​ 18.61 ​ 2.05 ​ 1.22 ​ 1.58 2023—1st Q 24.23 ​ 20.01 ​ 22.53 ​ 38.50 ​ 24.00 ​ 32.04 ​ 1.59 ​ 1.30 ​ 1.42 2023—2nd Q 26.04 ​ 22.33 ​ 24.26 ​ 23.50 ​ 16.65 ​ 20.87 ​ 1.33 ​ 1.01 ​ 1.15 2023—3rd Q 25.22 ​ 22.24 ​ 23.60 ​ 26.25 ​ 21.98 ​ 23.59 ​ 1.20 ​ 1.03 ​ 1.10 2023—4th Q 25.50 ​ 20.85 ​ 23.25 ​ 22.50 ​ 16.73 ​ 18.41 ​ 1.20 ​ 1.08 ​ 1.13 2023 26.04 ​ 20.01 ​ 23.41 ​ 38.50 ​ 16.65 ​ 23.73 ​ 1.59 ​ 1.01 ​ 1.20 ​ The per ounce COMEX silver price during the last 5 and 10 year periods averaged $21.43 and $19.16, respectively.
The market prices for our three principal by-products over the last 10 years are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum (Dealer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oxide Platt’s ​ ​ ​ ​ ​ ​ ​ ​ Silver (COMEX) Metals Week) ​ Zinc (LME) Year High Low Average High Low Average High Low Average 2015 18.35 13.67 15.68 9.40 4.30 6.59 1.09 0.66 0.88 2016 20.67 13.74 17.10 8.60 5.10 6.42 1.32 0.73 0.95 2017 18.49 15.37 17.03 10.25 6.85 8.13 1.53 1.00 1.31 2018 17.55 13.95 15.65 13.00 10.60 11.86 1.64 1.04 1.33 2019 19.39 ​ 14.28 ​ 16.16 ​ 12.70 ​ 8.28 ​ 11.27 ​ 1.37 ​ 0.90 ​ 1.16 2020 29.25 ​ 11.74 ​ 20.62 ​ 10.90 ​ 7.00 ​ 8.57 ​ 1.29 ​ 0.72 ​ 1.03 2021 29.40 ​ 21.46 ​ 25.18 ​ 20.10 ​ 9.95 ​ 15.51 ​ 1.73 ​ 1.15 ​ 1.36 2022 26.89 ​ 17.55 ​ 21.76 ​ 31.85 ​ 13.90 ​ 18.61 ​ 2.05 ​ 1.22 ​ 1.58 2023 26.04 ​ 20.01 ​ 23.41 ​ 38.50 ​ 16.65 ​ 23.73 ​ 1.59 ​ 1.01 ​ 1.20 2024—1st Q 25.20 ​ 22.10 ​ 23.35 ​ 20.85 ​ 19.18 ​ 19.84 ​ 1.18 ​ 1.04 ​ 1.11 2024—2nd Q 32.21 ​ 24.95 ​ 28.84 ​ 24.13 ​ 19.45 ​ 21.69 ​ 1.40 ​ 1.10 ​ 1.29 2024—3rd Q 32.11 ​ 26.83 ​ 29.43 ​ 23.25 ​ 20.63 ​ 21.68 ​ 1.40 ​ 1.14 ​ 1.26 2024—4th Q 34.83 ​ 28.94 ​ 31.36 ​ 22.18 ​ 21.05 ​ 21.61 ​ 1.47 ​ 1.32 ​ 1.38 2024 34.83 ​ 22.10 ​ 28.25 ​ 24.13 ​ 19.18 ​ 21.21 ​ 1.47 ​ 1.04 ​ 1.26 ​ The per ounce COMEX silver price during the last 5- and 10-year periods averaged $23.84 and $20.08, respectively.
We believe that the labor environment in our operations in Mexico and Peru is favorable, which has allowed us to increase productivity as we advance the goals of our capital expansion program. In addition, around 13,066 people were working as contractors in support of our operations.
We believe that the labor environment in our operations in Mexico and Peru is favorable, which has allowed us to increase productivity as we advance the goals of our capital expansion program. In addition, around 12,400 people were working as contractors in support of our operations.
The per pound LME copper price during the last 5 and 10 year periods averaged $3.52 and $3.12, respectively. ​ The table below shows the high, low and average prices per pound with the exception of silver, which is priced per ounce.
The per pound LME copper price during the last 5- and 10-year periods averaged $3.81 and $3.22, respectively. ​ The table below shows the high, low and average prices per pound with the exception of silver, which is priced per ounce.
Holding fees for mining concessions can be from $0.52 to $11.48 per hectare depending on the start date of the mining concession. Fees paid during 2023, 2022 and 2021 were approximately $11.7 million, $8.7 million and $7.7 million, respectively. In addition, all of our operating units in Mexico have water concessions that are in full force and effect.
Holding fees for mining concessions can be from $0.53 to $11.60 per hectare depending on the start date of the mining concession. Fees paid during 2024, 2023 and 2022 were approximately $11.6 million, $11.7 million and $8.7 million, respectively. In addition, all of our operating units in Mexico have water concessions that are in full force and effect.
We conduct negotiations separately at each mining complex and each processing plant. ​ 11 Table of Contents Our Taxco mine in Mexico has been on strike since July 2007.
We conduct negotiations separately at each mining complex and each processing plant. ​ Our Taxco mine in Mexico has been on strike since July 2007.
Power is distributed over a 224-kilometer closed loop transmission circuit, which is connected to the Peruvian network. ​ Water: We have water rights or licenses for up to 1,950 liters per second from well fields at the Huaitire-Gentilar, Vizcachas and Titijones aquifers and surface water rights from Lake Suches.
Power is distributed over a 224-kilometer transmission line circuit, which is connected to the Peruvian network. ​ Water: We have water rights or licenses for up to 2,011 liters per second from well fields at the Huaitire-Gentilar, Vizcachas and Titijones aquifers and surface water rights from Lake Suches.
Currently, Eolica el Retiro is supplying approximately 12% of its power output to IMMSA and Mexcobre. ​ On February 20, 2020, the Company signed a power purchase agreement with Parque Eolico de Fenicias, S. de R.L. de C.V., and indirect subsidiary of Grupo Mexico, to supply 611,400 MWh of power per year to some of the Company´s Mexican operations for 20 years.
In 2024, Eolica el Retiro supplied approximately 25.5% of its power output to IMMSA and Mexcobre. ​ On February 20, 2020, the Company signed a power purchase agreement with Parque Eolico de Fenicias, S. de R.L. de C.V., and indirect subsidiary of Grupo Mexico, to supply 611,400 MWh of power per year to some of the Company´s Mexican operations for 20 years.
(“MGE”), a subsidiary of Grupo Mexico which has two power plants designed to supply power to La Caridad and Buenavista units. Currently, MGE supplies 7.6% of its power output to third party energy users. These plants are natural gas-fired combined cycle power generating units, with a net total capacity of 516.2 megawatts.
(“MGE”), a subsidiary of Grupo Mexico which has two power plants designed to supply power to La Caridad and Buenavista units. In 2024, MGE supplied 20.2% of its power output to third party energy users. These plants are natural gas-fired combined cycle power generating units, with a net total capacity of 516.2 megawatts.
Diesel oil is a backup method for all these uses. We use diesel oil to power mining equipment at our operations. ​ Electricity: Electricity is used as the main energy source at our mining complexes. We purchase most of our electricity from Mexico Generadora de Energia S. de R. L.
We use diesel oil to power mining equipment at our operations. ​ Electricity: Electricity is used as the main energy source at our mining complexes. We purchase most of our electricity from Mexico Generadora de Energia S. de R. L.
For a further discussion of our products market prices, please see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Metal Prices.” ​ The table below shows the high, low and average COMEX and LME per pound copper prices during the last 10 years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper (COMEX) Copper (LME) Year High Low Average High Low Average 2014 3.43 2.84 3.12 3.37 2.86 3.11 2015 2.95 2.02 2.51 2.92 2.05 2.50 2016 2.69 1.94 2.20 2.69 1.96 2.21 2017 3.29 2.48 2.80 3.27 2.48 2.80 2018 3.29 2.56 2.93 3.29 2.64 2.96 2019 2.98 ​ 2.51 ​ 2.72 ​ 2.98 ​ 2.51 ​ 2.72 2020 3.63 ​ 2.12 ​ 2.80 ​ 3.61 ​ 2.09 ​ 2.80 2021 4.78 ​ 3.54 ​ 4.24 ​ 4.86 ​ 3.52 ​ 4.23 2022 4.93 ​ 3.21 ​ 4.01 ​ 4.87 ​ 3.18 ​ 4.00 2023—1st Q 4.27 ​ 3.74 ​ 4.09 ​ 4.28 ​ 3.72 ​ 4.05 2023—2nd Q 4.12 ​ 3.55 ​ 3.85 ​ 4.12 ​ 3.59 ​ 3.85 2023—3rd Q 3.99 ​ 3.63 ​ 3.77 ​ 3.96 ​ 3.64 ​ 3.79 2023—4th Q 3.94 ​ 3.54 ​ 3.72 ​ 3.87 ​ 3.54 ​ 3.71 2023 4.27 ​ 3.54 ​ 3.86 ​ 4.28 ​ 3.54 ​ 3.85 ​ The per pound COMEX copper price during the last 5 and 10 year periods averaged $3.53 and $3.12, respectively.
For a further discussion of our products market prices, please see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Metal Prices.” ​ The table below shows the high, low and average COMEX and LME per pound copper prices during the last 10 years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper (COMEX) Copper (LME) Year High Low Average High Low Average 2015 2.95 2.02 2.51 2.92 2.05 2.50 2016 2.69 1.94 2.20 2.69 1.96 2.21 2017 3.29 2.48 2.80 3.27 2.48 2.80 2018 3.29 2.56 2.93 3.29 2.64 2.96 2019 2.98 ​ 2.51 ​ 2.72 ​ 2.98 ​ 2.51 ​ 2.72 2020 3.63 ​ 2.12 ​ 2.80 ​ 3.61 ​ 2.09 ​ 2.80 2021 4.78 ​ 3.54 ​ 4.24 ​ 4.86 ​ 3.52 ​ 4.23 2022 4.93 ​ 3.21 ​ 4.01 ​ 4.87 ​ 3.18 ​ 4.00 2023 4.27 ​ 3.54 ​ 3.86 ​ 4.28 ​ 3.54 ​ 3.85 2024—1st Q 4.11 ​ 3.69 ​ 3.86 ​ 4.07 ​ 3.67 ​ 3.83 2024—2nd Q 5.12 ​ 4.19 ​ 4.55 ​ 4.92 ​ 4.05 ​ 4.42 2024—3rd Q 4.66 ​ 3.94 ​ 4.23 ​ 4.47 ​ 3.91 ​ 4.17 2024—4th Q 4.60 ​ 3.99 ​ 4.22 ​ 4.48 ​ 3.95 ​ 4.16 2024 5.12 ​ 3.69 ​ 4.22 ​ 4.92 ​ 3.67 ​ 4.15 ​ The per pound COMEX copper price during the last 5- and 10-year periods averaged $3.83 and $3.23, respectively.
For more information on tax matters, refer to Note 7 “Income taxes” of the consolidated financial statements. ​ MINING RIGHTS AND CONCESSIONS ​ Peru: ​ We have 156,818 hectares in concessions from the Peruvian government for our exploration, exploitation, extraction and production operations, at various sites, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Toquepala Cuajone Ilo Other Total ​ (hectares) Plants 360 ​ 919 ​ 421 ​ — 1,700 Operations 22,423 ​ 26,461 ​ 4,249 ​ 36,733 89,866 Projects and water resources ​ — ​ — ​ — ​ — ​ — Exploration — ​ — ​ — ​ 65,251 65,251 Total 22,783 27,380 4,670 101,985 156,818 ​ We believe that our Peruvian concessions are in full force and effect under applicable Peruvian laws and as such, comply with all material terms and requirements applicable to said concessions.
For more information on tax matters, refer to Note 7 “Income taxes” of the consolidated financial statements. ​ MINING RIGHTS AND CONCESSIONS ​ Peru: ​ We have 154,535 hectares in concessions from the Peruvian government for our exploration, exploitation, extraction and production operations, at various sites, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Toquepala Cuajone Ilo Other Total ​ (hectares) Mine concessions 22,783 27,380 4,670 99,702 154,535 ​ We believe that our Peruvian concessions are in full force and effect under applicable Peruvian laws and as such, comply with all material terms and requirements applicable to said concessions.
The per pound Platt’s Metals Week Dealer Oxide molybdenum price during the last 5 and 10 year periods averaged $15.54 and $12.20, respectively.
The per pound Platt’s Metals Week Dealer Oxide molybdenum price during the last 5- and 10-year periods averaged $17.53 and $13.19, respectively.
Our products compete with other materials, including aluminum and plastics. For additional information, see Item 1A “Risk Factors—The copper mining industry is highly competitive.” ​ HUMAN CAPITAL RESOURCES ​ As of December 31, 2023, we had 15,810 employees, approximately 67% of whom are covered by a Collective Labor Agreement and are represented by 16 different labor unions.
For additional information, see Item 1A “Risk Factors—The copper mining industry is highly competitive.” ​ HUMAN CAPITAL RESOURCES ​ As of December 31, 2024, we had 16,133 employees, approximately 66% of whom are covered by a Collective Labor Agreement and represented by 16 collective bargaining agreements with nine different labor unions.
In May 2016, we signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa will supply energy to the operations related to the Toquepala expansion and to other minor projects for a period starting on May 1, 2017 and ending after ten years of commercial operations at the Toquepala Expansion or until April 30, 2029; whichever occurs first.
In May 2016, we signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa began supplying energy to the operations related to the Toquepala expansion and to other minor projects for a period starting on May 1, 2017, and ending on October 31, 2029.
This allows us to import natural gas at market prices and thereby reduce operating costs. Several contracts with PEMEX and the United States provide us with the option of using a monthly or daily fixed prices for our natural gas purchases. ​ Natural gas is used for metallurgical processes and to power furnaces, converters, casting wheels, boilers and electric generators.
Several contracts with PEMEX and the United States provide us with the option of using a monthly or daily fixed prices for our natural gas purchases. ​ 12 Table of Contents Natural gas is used for metallurgical processes and to power furnaces, converters, casting wheels, boilers and electric generators. Diesel oil is a backup method for all these uses.
This repurchase program has no expiration date and may be modified or discontinued at any time. Please see Note 7 for a discussion of the Inflation Reduction Act effective in 2023, including a 1% excise tax on certain stock repurchases. ​ REPUBLIC OF PERU AND MEXICO ​ Our revenues are derived primarily from our operations in Peru and Mexico.
Please see Note 7 of the consolidated financial statements for a discussion of the Inflation Reduction Act effective in 2023, including a 1% excise tax on certain stock repurchases. ​ REPUBLIC OF PERU AND MEXICO ​ Our revenues are derived primarily from our operations in Peru and Mexico.
Water usage fees are updated on a yearly basis and have been on the rise in recent years. ​ 13 Table of Contents LEGAL AND REGULATORY MATTERS ​ In 2022 and 2023, no legal, environmental, labor or tax regulations came into effect that required the Company to incur material costs of compliance, had material adverse effects on the Company’s operations, or affected normal execution of the Company’s projects.
Water usage fees are updated on a yearly basis and have been on the rise in recent years. ​ LEGAL AND REGULATORY MATTERS ​ To the Company's knowledge, during the period from January 1, 2023 through December 31, 2024, no legal, environmental, labor or tax regulations came into effect in the jurisdictions where the Company operates that (i) required the Company to incur material costs of compliance, (ii) had a material adverse effect on the Company’s operations, or (iii) materially impacted the execution of the Company’s projects.
This agreement is expected to become effective during the second quarter of 2024. ​ Water: In Mexico, water is deemed public property and industries that are not connected to a public service water supply must obtain a water concession from Comision Nacional del Agua (the National Water Commission or the “CNA”).
In 2024, Parque Eolico de Fenicias supplied approximately 58.6% of its power output to IMMSA. ​ Water: In Mexico, water is deemed public property and industries that are not connected to a public service water supply must obtain a water concession from Comision Nacional del Agua (the National Water Commission or the “CNA”).
This vision is based on our core values of respect, honesty and responsibility. ​ Consistent with our Code of Conduct and Human Rights Policy, our goal is to (i) build an organizational culture of total equality and well-being, focusing on diversity, inclusion and non-discrimination, (ii) increase sensitivity, knowledge and skills in our leaders and employees in order to build diverse and inclusive teams and promote a culture of respect, and (iii) extend this culture to the communities in which we operate. ​ Based on the results of a DEI survey in Mexico and Peru, we aligned our diversity and inclusion 2020-2023 Strategic Plan with five strategic initiatives: 1.
This vision is grounded in our core values of respect, honesty and responsibility. ​ In line with our Code of Conduct and Human Rights Policy, our objectives are to (i) cultivate an organizational culture that fosters equality and well-being, emphasizing excellence, equal opportunity, inclusivity and non-discrimination, (ii) enhance the sensitivity, knowledge and skills in our leaders and employees to build diverse and inclusive teams and promote a culture of respect, and (iii) extend this inclusive culture to the communities in which we operate. ​ We developed our 2025 Strategic Workplace Plan with six strategic initiatives: 1.
Within the current framework of labor regulations and the agreements with all six unions, this compensation has been adapted to align with current working hours in the mining sector. These conditions were in effect until December 1, 2023. ​ In June 2023, the Company held two meetings with the unions to discuss different issues of collective interest.
Within the current framework of labor regulations and the agreements with all six unions, this compensation has been adapted to align with current working hours in the mining sector.
For additional information on our community programs, refer to Corporate Social Responsibility under Note 13 “Commitments and contingencies” to the consolidated financial statements. ​ DIVERSITY, EQUITY AND INCLUSION (DEI) ​ Our vision of DEI is to ensure that our people always feel included, welcomed and valued for their personal and professional contributions.
For additional information on our community programs, refer to Corporate Social Responsibility under Note 13 “Commitments and Contingencies” to the consolidated financial statements. ​ 2025 Strategic Workplace Plan ​ We strive to create a workplace culture where our personnel feel included, welcomed and valued for their personal and professional contributions.
Housing, maintenance and utility services are provided to most of our employees for a nominal cost. Our townsite and housing complexes provide schools, medical facilities, churches, banks, shops, social clubs, recreational facilities and other services. ​ Mexico ​ 69.8% of our 10,802 Mexican employees were unionized as of December 31, 2023 and are represented by ten different unions.
Our townsite and housing complexes provide schools, medical facilities, churches, banks, shops, social clubs, recreational facilities and other services. ​ Mexico ​ As of December 31, 2024, 71% of our 10,988 Mexican employees were unionized and represented by ten collective bargaining agreements distributed among three labor unions.
The union has expressed its intention to comply with the court order and to reach an agreement to return the amount paid by the Company. ​ Our employees at the Toquepala and Cuajone mining units reside in the 3,700 houses and apartments that we have built at the townsites. We also have 90 houses in Ilo for staff personnel.
The Company made a signing payment to each worker of the union, totaling approximately $6.3 million. ​ Our employees at the Toquepala and Cuajone mining units reside in the 3,700 houses and apartments that we have built at the townsites. We also have 90 houses in Ilo for staff personnel.
As part of this settlement, the Company made a one-time payment to each union member of S/4,000 (approximately $1,068) as a compensation bonus and also paid a signing bonus of S/1,000 (approximately $267). ​ In the first quarter of 2023, the Company began applying the terms of the agreements entered into with the six unions pursuant to Law 31632, which stipulates new conditions for compensation of leaves granted during COVID-19.
These agreements were executed in 2022. In the first quarter of 2023, the Company began applying the terms of the agreements entered into with the six unions pursuant to Law 31632, which stipulates new conditions for compensation of leaves granted during COVID-19.
Additionally, we have two licenses for the use of non-desalinated seawater for the Smelter. ​ The Branch has a surface water permit for the Locumba river, which will facilitate the conservation and maintenance of a portion of the wetlands in Ite. ​ Mexico: ​ Fuel: In Mexico, since 2018, we have purchased fuel from Petroleos Mexicanos (“PEMEX”), the state producer, and from private suppliers. ​ The La Caridad unit imports natural gas from the United States through its pipeline (between Douglas, Arizona and Nacozari, Sonora).
Additionally, we have two licenses for the use of non-desalinated seawater for the Smelter. ​ The Branch has a surface water permit for the Locumba river, which will facilitate the conservation and maintenance of a portion of the wetlands in Ite.
Currently, there are six separate unions, none of which represents the majority of workers, as defined by current Peruvian labor legislation. ​ During 2021, the Company held talks with the six unions to sign collective bargaining agreements prior to their effective dates.
Currently, there are six separate unions, none of which represents the majority of workers, as defined by current Peruvian labor legislation. The Company maintains regular dialogue with union representatives to ensure labor harmony and proper management of labor 10 Table of Contents relations.
The Company has collective bargaining agreements with each of the six unions, the earliest expiration of which is in 2024 and the latest of which is in 2027. These agreements regulate benefits related to remuneration and working conditions. ​ 10 Table of Contents 60.9% of the Company’s 4,979 Peruvian employees were unionized as of December 31, 2023.
The Company has collective bargaining agreements with each of the six unions, the earliest of which expires in 2027 and the latest, in 2033. These agreements govern benefits related to compensation and working conditions. ​ From 2021 to 2022, the Company signed collective bargaining agreements with the six unions with durations between three to six years.
The Company also seeks to promote goal-oriented principles to obtain results that positively affect our main stakeholders and communities to drive productivity, innovation, human growth and wellbeing, environmental protection and forward thinking. ​ Compensation and Benefits ​ We also focus on attracting and retaining employees by providing compensation and benefit packages that are competitive within the applicable market, considering the location of the position, responsibilities and compensation requirements in the countries where we operate.
Our focus is on enhancing productivity and innovation, supporting human development, promoting environmental stewardship, and implementing forward-thinking solutions. ​ Compensation and Benefits ​ Our recruitment strategy focuses on attracting and retaining employees by providing market-competitive remuneration packages, tailored to position requirements, geographical considerations, and local statutory requirements in the countries where we operate.
We offer productivity bonuses to our employees, which motivates them to grow the Company’s results. ​ 8 Table of Contents Health and Safety ​ Our focus on health and safety includes prevention and wellness programs, through the Medical and HR departments, such as clinical attention and periodical revisions, wellness training and a wellness platform for our employees. ​ During 2023, we carried out 50 health campaigns with the participation of 1,894 collaborators in early detections of diseases such as breast cancer, cervical cancer, prostate cancer, and tuberculosis.
We offer productivity bonuses to our employees, which motivates them to grow the Company’s results. ​ Health and Safety ​ Our comprehensive occupational health and safety program, administered jointly our Medical and Human Resources departments, encompasses preventive care, periodic health assessments, wellness education, and an integrated digital wellness platform for our employees. 8 Table of Contents In 2024, we launched 178 health campaigns in Mexico, supported by 6,787 collaborators to promote early detection of diseases such as diabetes mellitus, subarachnoid hemorrhage, dyslipidemia, breast cancer, and prostate cancer.
Additionally, we believe that all our facilities in Peru and Mexico are in material compliance with applicable environmental, mining and other applicable laws and regulations. ​ For a discussion of environmental and labor matters, reference is made to the information contained in Note 13 “Commitments and Contingencies” of the consolidated financial statements.
The implementation of this reform is ongoing, and the Company cannot currently assess its potential impact on the Mexican federal judicial system or the Company's operations. ​ For a discussion of environmental and labor matters, reference is made to the information contained in Note 13 “Commitments and Contingencies” of the consolidated financial statements.
In accordance with our Community Development commitment, more than 46% of our workforce is hired locally. ​ Talent Development, Training and Retention ​ As a large integrated copper producer, we have a wide range of employees, including management professionals, technicians, engineers, and production employees.
In accordance with our Community Development commitment, more than 70% of our workforce is hired locally. ​ Talent Development, Training and Retention ​ We value the talent and passion of our team members, and we offer numerous opportunities for professional development to our workforce in both Peru and Mexico.
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We believe in our people, and we provide a wide variety of opportunities for professional growth for all employees in Peru and Mexico.
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This repurchase program has no expiration date and may be modified or discontinued at any time.
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In 2023 we made a training investment of over $4.4 million, which resulted in more than 440,000 training hours that focused on safety and health, rquipment operations and maintenance certifications, technical training, soft skills development (primarily in Leadership Competencies, code of ethics and compliance training.
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Our products compete with other materials, including aluminum and plastics.
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We also seek to enhance institutional knowledge through on-the-job training experiences, and designed more than 400 Individual Development Plans, as part of our succession planning. ​ All of our employees receive initial training and opportunities for continuous development throughout their careers, which we believe favors talent retention.
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During 2024, we invested over $4.8 million in employee development, delivering more than 646,000 hours of formal instruction relative to occupational safety, health and wellness, technical competencies, professional development, and regulatory compliance in accordance with our Code of Ethics.
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More than 65% of the positions are covered by internal employees and our retention rate is around 92%. Voluntary turnover indicators in all of the countries in which we operate remain at single digits year-over-year.
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We believe that employee development is strengthened through formal and on-the-job learning. ​ All employees receive initial training as part of their onboarding program and are offered opportunities for development, which facilitates talent retention. ​ Company Culture ​ We are committed to cultivating a unified organizational culture through our mission, vision, and values while strengthening our position as an employer of choice.
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We believe this suggests our employees have a strong desire to continue working with us. ​ Company Culture ​ We believe in a shared mission, vision, values and improving our employer brand for existing and future employees. The Company seeks to create value for its employees to help ensure that their working experience is optimal.
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Our objective is to generate value for our team by providing an exceptional working experience. This involves fostering a safe, collaborative workplace culture where employees feel connected to the Company’s values.
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Various efforts are made on this front, including promoting a safe and collaborative work environment and culture and ensuring employees continue to be engaged with the Company’s values and principles.
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We prioritize honesty, respect and responsibility, and these core values are embedded in our daily operations. ​ As part of our commitment to corporate culture, we prioritize the ongoing development of our employees. We acknowledge and appreciate the contributions of our workforce while emphasizing goal-oriented principles to deliver results that benefit key stakeholders and the communities we serve.
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We live and promote our core values of honesty, respect, and responsibility in our day-to-day. ​ In terms of corporate culture, the Company is committed to the continuous growth and development of its employees and surrounding communities. The Company recognizes the effort of our employees and works to strengthen institutional values.
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These campaigns were also focused on administering vaccines and providing dental health services. We conducted 8,413 health talks on various promotional topics, reaching 50,476 attendees. Additionally, we also held 4,569 occupational health talks and conducted workshops on the proper use of personal protection equipment (PPE) to mitigate occupational risks and diseases. We also provided 657 nutrition talks to 8,541 participants.
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We prize creativity, honesty and equality and we ensure that our employees are aligned with the same work ethic to standardize culture across the Company.
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We comply with regulations at each site and implement risk management and Behavior Based Safety programs in collaboration with our contractors to foster a shared safety culture. ​ Talent Attraction and Recruiting ​ As part of our talent attraction strategy, we have enhanced our employer brand through initiatives designed to solidify our status as an employer of choice in the regions where we operate. ​ We recognize social media's strategic importance in modern talent acquisition and community engagement.
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Additionally, we conducted 3,877 health promotion talks with 22,804 attendees and delivered 4,569 occupational health talks, focused on preventing occupational risks and diseases.
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Therefore, we have strengthened our presence on LinkedIn, where our number of followers has risen 110% in the last two years with an engagement rate of 59% (2024), one of the highest in the mining industry.
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We also have a job opportunities section in our webpage and use several local and international job boards to publish openings. ​ We offer professional internship programs to attract students before they graduate from universities or centers for vocational training. We attract over 500 graduates from different academic disciplines and universities in Mexico and Peru with our Intern Development Programs.
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We continue to participate in job fairs to leverage our presence at the most important universities in the countries where we operate. ​ To attract and develop high-potential university graduates, we implement structured recruitment and development programs designed to integrate young professionals into operational divisions. In 2024, we attracted more than 228 graduates from different academic disciplines in Mexico.
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These strategies consolidate Human Resource Planning. ​ Additionally, we believe that we are a first-choice employer in the countries where we operate. This reflects our efforts to strengthen relationships with our stakeholders, including employees, and engage in community development.
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These strategies consolidate Human Resources Planning. ​ More than 48% of the positions are covered by internal employees and our retention rate is around 90%. ​ We maintain transparent recruitment processes and are committed to upholding the principles of human rights, inclusivity, equity, merit, and equal employment opportunity in accordance with applicable laws and regulations. ​ Employee Engagement ​ Every year we make concerted efforts to enhance employee engagement; foster a positive organizational environment; and strengthen our culture.
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We have transparent selection processes and are committed to upholding principles for human rights and diversity, inclusion and non-discrimination. ​ Employee Engagement ​ Additionally, we conduct a biannual Employee Opinion Survey to measure employees’ perceptions of the Company and take actions intended to increase employee engagement, develop a positive organizational environment, and strengthen our culture.
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We encourage participation from all employees, both unionized and non-unionized, in our human talent initiatives. One noteworthy example is our “Family Day” held in Mexico, which attracted over 14,700 attendees (employees with their families).
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We measure the employee engagement level with 18 sub-factors, grouped into two major sets of factors: loyalty and satisfaction.
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This one-day event introduced participants to our Company’s values; showcased our processes; highlighted our culture; and provided opportunities for colleagues to socialize in a positive and enjoyable environment. ​ For the fourth consecutive year, Great Place to Work Mexico has certified our Sonora Metallurgical Complex as one of the best places to work.
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The first factor represents the degree to which an individual identifies with the organization and its business goals, and the second reflects the individual’s degree of satisfaction with his/her working conditions and draws a line between satisfaction levels and performance at work. ​ The average of these factors indicates the level of engagement on a scale of 1 to 5 (a Likert scale).
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This award acknowledges our organization's dedication to fostering an inclusive and innovative work culture that prioritizes the well-being of its people. ​ In 2024, our Metallurgical Complex in Sonora obtained the following awards after competing with more than 100 organizations in Mexico and Latin America in the category of 500 to 5,000 employees: • 1st place in The Best Workplaces Regional – Northwest 2024 • 3rd place in The Best Workplaces for Women Mexico 2024 • 4th place in The Best Workplaces Mexico 2024 9 Table of Contents • 23rd place in The Best Workplaces in Latin America 2024 • Recognition among the 100 Best Chief Human Resources Officers in Mexico • Recognition among the 100 Best Chief Executive Officers in Mexico ​ The Company has a corporate social responsibility policy that is designed to integrate its operations with local communities in our areas of influence.
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In 2023, we had an engagement rating of 4.17, an increase of 2% in the good perception of our employees regarding our Company.
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Communication: Awareness campaigns on inclusivity, equity and non-discrimination to promote diverse, inclusive and safe work environments. 2. Training: Implement comprehensive education programs to strengthen understanding of and respect for workplace inclusivity and equity, while promoting collaborative practices that foster inclusive and equitable team environments. 3.
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We believe this positive trend suggests a continuous improvement on the engagement level of our people year to year. ​ The survey also included sociodemographic elements, in order to consider the opinions of our diverse groups within our Company and respond with our “ECO Action Plan” for the next two years. ​ All employees, both unionized and non-unionized, are invited to participate in all of our human talent initiatives.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe main aspects of the Companys´s business that will be affected by the legislation are the terms for mining concessions from 50 to 30 years; new conditions on water use; provision of guarantees for site closure and remediation; a new 5% contribution of net earnings to indigenous communities for new projects and significant changes to exploration rules. ​ 26 Table of Contents Down the line, the aforementioned changes could trigger amendment, additions and repeals of provisions of a number of laws, including the Mining Law, the National Water Law, the General Law for Ecological Balance and Environmental Protection and the General Law for the Prevention and Management of Mine Waste. ​ Although the Company believes that there will be no material impact on the Company's current operations or financial situation as a result of these changes, we cannot assure you that future developments in these laws will not affect our business. ​ Because we have significant operations in Mexico, we cannot provide any assurance that political developments and economic conditions, including any changes to economic policies or the adoption of other reforms proposed by existing or future administrations in Mexico, or the advent of drug-related violence in the country, will have no material adverse effect on market conditions, the prices of our securities, our ability to obtain financing, our results of operations or our financial condition. ​ Peruvian inflation and fluctuations in the sol exchange rate may adversely affect our financial condition and results of operations. ​ Although the U.S. dollar is our functional currency and our revenues are primarily denominated in U.S. dollars, as we operate in Peru, portions of our operating costs are denominated in Peruvian soles.
Biggest changeThe main aspects of the Company´s business that will be affected by the legislation are the terms for mining concessions from 50 to 30 years; new conditions on water use; provision of guarantees for site closure and remediation; a new 5% contribution of net earnings to indigenous communities for new projects and significant changes to exploration rules. ​ Down the line, the aforementioned changes could trigger amendment, additions and repeals of provisions of a number of laws, including the Mining Law, the National Water Law, the General Law for Ecological Balance and Environmental Protection and the General Law for the Prevention and Management of Mine Waste. ​ Although the Company believes that there will be no material impact on the Company's current operations or financial situation as a result of these changes, we cannot assure you that future developments in these laws will not affect our business. ​ Additionally, on September 15, 2024, the constitutional reform to the Judiciary approved by the Mexican Congress was published and became effective, which establishes that judges, magistrates and ministers of the Mexican Supreme Court of Justice will be elected by the citizens.
Along these lines, significant competition exists to acquire properties that produce or are capable of producing copper and other metals, and some of our main competitors have consolidated, which makes them more diversified than we are. ​ We cannot assure you that changes in market conditions, including competition, will not adversely affect our ability to compete in the future on the basis of price or other factors with companies that may benefit from future favorable trading or other arrangements. ​ We are controlled by Grupo Mexico, which exercises control over our affairs and policies and whose interests may be different from yours. ​ As of December 31, 2023, Grupo Mexico owned indirectly 88.9% of our capital stock.
Along these lines, significant competition exists to acquire properties that produce or are capable of producing copper and other metals, and some of our main competitors have consolidated, which makes them more diversified than we are. ​ We cannot assure you that changes in market conditions, including competition, will not adversely affect our ability to compete in the future on the basis of price or other factors with companies that may benefit from future favorable trading or other arrangements. ​ We are controlled by Grupo Mexico, which exercises control over our affairs and policies and whose interests may be different from yours. ​ As of December 31, 2024, Grupo Mexico owned indirectly 88.9% of our capital stock.
Several constitutional lawsuits have also been filed against various government authorities and the Company. These lawsuits are seeking damages and demand remediation actions to restore the environment. The Company believes that the lawsuits are without merit and that it is not possible to determine the extent of the damages sought.
Constitutional lawsuits have also been filed against various government authorities and the Company. These lawsuits are seeking damages and demand remediation actions to restore the environment. The Company believes that the lawsuits are without merit and that it is not possible to determine the extent of the damages sought.
This climate of violence gradually subsided during the year and was replaced by a general concern about the economic recession and personal insecurity. ​ Because we have significant operations in Peru, we cannot provide any assurance that political developments and economic conditions, including any changes to economic policies or the adoption of other reforms proposed by existing or future administrations in Peru and/or other factors will have no material adverse effects on market conditions, the prices of our securities, our ability to obtain financing, our results of operations, or our financial condition. ​ Mexican economic and political conditions, as well as drug-related violence, may have an adverse impact on our business. ​ The Mexican economy is highly sensitive to economic developments in the United States, mainly because of its high level of exports to this market.
This climate of violence gradually subsided during the year and was replaced by a general concern about the economic recession and personal insecurity. ​ 25 Table of Contents Because we have significant operations in Peru, we cannot provide any assurance that political developments and economic conditions, including any changes to economic policies or the adoption of other reforms proposed by existing or future administrations in Peru and/or other factors will have no material adverse effects on market conditions, the prices of our securities, our ability to obtain financing, our results of operations, or our financial condition. ​ Mexican economic and political conditions, as well as drug-related violence, may have an adverse impact on our business. ​ The Mexican economy is highly sensitive to economic developments in the United States, mainly because of its high level of exports to this market.
Given copper's crucial role in electrification and the generation of clean energies, there exists an increasing expectation from both corporate entities and societal stakeholders that copper sourcing should emanate from entities committed to rigorous and responsible production practices. ​ This commitment has driven us to pledge certifications for all our copper production under international standards. ​ Interruptions of energy supply or increases in energy, fuel and gas costs, shortages of water supply, critical parts, equipment, skilled labor and other production costs may adversely affect our results of operations. ​ We require substantial amounts of fuel oil, electricity, water and other resources for our operations.
Given copper's crucial role in electrification and the generation of clean energies, there exists an increasing expectation from both corporate entities and societal stakeholders that copper sourcing should emanate from entities committed to rigorous and responsible production practices. ​ This commitment has driven us to pledge certifications for all our copper production under international standards. ​ 18 Table of Contents Interruptions of energy supply or increases in energy, fuel and gas costs, shortages of water supply, critical parts, equipment, skilled labor and other production costs may adversely affect our results of operations. ​ We require substantial amounts of fuel oil, electricity, water and other resources for our operations.
We cannot assure you that these and other uninsured events will not have an adverse effect on our business, properties, operating results, financial condition or prospects. ​ Changes in the demand level for our products and copper sales agreements could adversely affect our revenues. ​ Our financial results may be affected by fluctuations in demand for the refined, semi-refined metal products and concentrates we sell at both the industrial and consumer level, and may also be affected by changes in the global 18 Table of Contents economy, including economic upturns and downturns of differing magnitudes.
We cannot assure you that these and other uninsured events will not have an adverse effect on our business, properties, operating results, financial condition or prospects. ​ Changes in the demand level for our products and copper sales agreements could adversely affect our revenues. ​ Our financial results may be affected by fluctuations in demand for the refined, semi-refined metal products and concentrates we sell at both the industrial and consumer level, and may also be affected by changes in the global economy, including economic upturns and downturns of differing magnitudes.
We cannot assure you 16 Table of Contents that we will be able to maintain our production at levels that generate sufficient cash, or that we will have access to sufficient financing to continue our exploration, exploitation and refining activities at or above present levels. ​ Restrictive covenants in the agreements governing our indebtedness and the indebtedness of our Minera Mexico subsidiary may restrict our ability to pursue our business strategies. ​ Our financing instruments and those of our Minera Mexico subsidiary include financial and other restrictive covenants that, among other things, limit our and Minera Mexico’s abilities to incur additional debt and sell assets.
We cannot assure you that we will be able to maintain our production at levels that generate sufficient cash, or that we will have access to sufficient financing to continue our exploration, exploitation and refining activities at or above present levels. ​ Restrictive covenants in the agreements governing our indebtedness and the indebtedness of our Minera Mexico subsidiary may restrict our ability to pursue our business strategies. ​ Our financing instruments and those of our Minera Mexico subsidiary include financial and other restrictive covenants that, among other things, limit our and Minera Mexico’s abilities to incur additional debt and sell assets.
The potential risks to our operations might increase if the violence spreads to our areas of production. ​ On May 09, 2023, Mexican Congress approved several changes effective immediately to the Mining Law, the National Waters Law, the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste.
The potential risks to our operations might increase if the violence spreads to our areas of production. ​ On May 9, 2023, Mexican Congress approved several changes effective immediately to the Mining Law, the National Waters Law, the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste.
Moreover, the Company cannot offer any assurances that the outcome of these lawsuits will not have adverse effects on the Company. ​ 21 Table of Contents Environmental regulation, climate change and other regulations may increase our costs of doing business, restrict our operations or result in operational delays. ​ Our exploration, mining, milling, smelting and refining activities are subject to a number of Peruvian and Mexican laws and regulations, including environmental laws and regulations, and certain industry technical standards.
Moreover, the Company cannot offer any assurances that the outcome of these lawsuits will not have adverse effects on the Company. ​ Environmental regulation, climate change and other regulations may increase our costs of doing business, restrict our operations or result in operational delays. ​ Our exploration, mining, milling, smelting and refining activities are subject to a number of Peruvian and Mexican laws and regulations, including environmental laws and regulations, and certain industry technical standards.
For further detailed discussion of pending litigation, please see Note 13 “Commitment and Contingencies—Litigation matters” of the consolidated financial statements. ​ Developments in the United States, Europe and emerging market countries may adversely affect the Company business, our common stock price and our debt securities. ​ The business, market value and trading price of securities of companies with significant operations in Peru and Mexico is, to varying degrees, affected by the economic policies and market conditions in the United States, Europe and emerging market countries.
For further detailed discussion of pending litigation, please see Note 13 “Commitment and Contingencies—Litigation matters” of the consolidated financial statements. ​ 23 Table of Contents Developments in the United States, Europe and emerging market countries may adversely affect the Company business, the market value and trading price of our common stock and our debt securities. ​ The business, market value and trading price of securities of companies with significant operations in Peru and Mexico is, to varying degrees, affected by the economic policies and market conditions in the United States, Europe and emerging market countries.
Any 25 Table of Contents termination or unfavorable modification of the terms of one or more of our concessions, or failure to obtain renewals of such concessions subject to renewal or extensions, could have a material adverse effect on our financial condition and prospects. ​ Peruvian economic and political conditions, as well as illegal mining activities may have an adverse impact on our business. ​ A significant portion of our operations is conducted in Peru.
Any termination or unfavorable modification of the terms of one or more of our concessions, or failure to obtain renewals of such concessions subject to renewal or extensions, could have a material adverse effect on our financial condition and prospects. ​ Peruvian economic and political conditions, as well as illegal mining activities may have an adverse impact on our business. ​ A significant portion of our operations is conducted in Peru.
Estimates are, to a large extent, based upon the interpretation of geological data obtained from drill holes and other sampling techniques and on pre-feasibility or feasibility studies that generate estimates of cash operating costs based upon anticipated tonnage and grades of ore to be mined and processed; the configuration of the ore body; expected recovery rates of the mineral from the ore; comparable facility and equipment operating costs; anticipated climatic conditions; and other factors.
Estimates are, to a large extent, based upon the interpretation of 19 Table of Contents geological data obtained from drill holes and other sampling techniques and on pre-feasibility or feasibility studies that generate estimates of cash operating costs based upon anticipated tonnage and grades of ore to be mined and processed; the configuration of the ore body; expected recovery rates of the mineral from the ore; comparable facility and equipment operating costs; anticipated climatic conditions; and other factors.
Market prices are affected by a number of factors, including global economic and political conditions in general, and in particular by: international policies and regulations in the ambits of trade, taxes and tariffs; levels of supply and demand; the availability and cost of substitutes; inventory levels maintained by users; actions of participants in the commodities markets; interest rates; expectations regarding future inflation rates; currency exchange rates and changes in technology.
Market prices are affected by a number of factors, including global economic and political conditions in general, and in particular by: international policies and regulations in the ambits of trade, taxes and tariffs; levels of supply and demand; the availability and cost of substitutes; inventory levels maintained by users; actions of participants in the commodities markets; interest rates; expectations 15 Table of Contents regarding future inflation rates; currency exchange rates and changes in technology.
Compliance with existing and new laws and regulations that may be applicable to us in the future could increase our operating costs and adversely affect our financial results of operations and cash flows. ​ 19 Table of Contents Our objective is to preserve the health and safety of our workforce by implementing occupational health and training programs and safety incentives at our operations that meet all regulatory requirements and enhance employee performance.
Compliance with existing and new laws and regulations that may be applicable to us in the future could increase our operating costs and adversely affect our financial results of operations and cash flows. ​ Our objective is to preserve the health and safety of our workforce by implementing occupational health and training programs and safety incentives at our operations that meet all regulatory requirements and enhance employee performance.
Any violation of those laws could result in significant criminal or civil fines and penalties, litigation, and loss of operating licenses or permits, and may damage our reputation, which could have a material adverse effect on our cash flows, results of operations and financial condition. ​ Our insurance does not cover most losses caused by the aforementioned risks.
Any violation of those laws could result in significant criminal or civil fines and penalties, litigation, and loss of operating licenses or permits, and may damage our reputation, which could have a material adverse effect on our cash flows, results of operations and financial condition. ​ 24 Table of Contents Our insurance does not cover most losses caused by the aforementioned risks.
These legal constraints may limit the ability of Minera Mexico to pay dividends to us, which in turn, may have an impact on our ability to pay stockholder dividends or to service debt. ​ Global and local market conditions, including the high competitiveness in the copper mining industry, may adversely affect our profitability. ​ Our industry is cyclical in nature and fluctuates with economic cycles.
These legal constraints may limit the 22 Table of Contents ability of Minera Mexico to pay dividends to us, which in turn, may have an impact on our ability to pay stockholder dividends or to service debt. ​ Global and local market conditions, including the high competitiveness in the copper mining industry, may adversely affect our profitability. ​ Our industry is cyclical in nature and fluctuates with economic cycles.
However, we cannot assure you when and that we will incur no additional costs for community infrastructure development and modernization to obtain approval from the communities for current or future mining projects. ​ In 2022, violent protests by some of communities adjoining the Cuajone mine negatively affected the mine’s operations.
However, we cannot assure you when and that we will incur no additional costs for community infrastructure development and modernization to obtain approval from the communities for current or future mining projects. ​ 20 Table of Contents In 2022, violent protests by some of communities adjoining the Cuajone mine negatively affected the mine’s operations.
In addition, future credit facilities may contain limitations on our capacity to incur additional debt and liens, dispose of assets, or pay dividends to our common stockholders. ​ We may not pay a significant amount of our net income as cash dividends on our common stock in the future. ​ We have distributed a significant amount of our net income as dividends since 1996.
In addition, future credit facilities may contain limitations on our capacity to incur additional debt and liens, dispose of assets, or pay dividends to our common stockholders. ​ 16 Table of Contents We may not pay a significant amount of our net income as cash dividends on our common stock in the future. ​ We have distributed a significant amount of our net income as dividends since 1996.
The imposition of exchange control policies could impair Minera Mexico’s ability to obtain imported goods and to meet its U.S. dollar-denominated obligations and could have an adverse effect on our business and financial condition. ​ 27 Table of Contents
The imposition of exchange control policies could impair Minera Mexico’s ability to obtain imported goods and to meet its U.S. dollar-denominated obligations and could have an adverse effect on our business and financial condition. ​
We also evaluate our water demand, as weather changes may result in increases or decreases that affect our needs. ​ Efforts to comply with more stringent environmental protection programs in Peru and Mexico and with relevant trade agreements could impose constraints on operations and imply additional costs.
We also evaluate our water demand, as weather changes may result in increases or decreases that affect our needs. 21 Table of Contents ​ Efforts to comply with more stringent environmental protection programs in Peru and Mexico and with relevant trade agreements could impose constraints on operations and imply additional costs.
Some of our officers and directors, and those of Minera Mexico, are also directors and/or officers of Grupo Mexico and/or of its affiliates. We 23 Table of Contents cannot assure you that the interests of Grupo Mexico will not conflict with those of our minority stockholders.
Some of our officers and directors, and those of Minera Mexico, are also directors and/or officers of Grupo Mexico and/or of its affiliates. We cannot assure you that the interests of Grupo Mexico will not conflict with those of our minority stockholders.
After an evaluation of the damage, the Company resumed production at the Cuajone mining unit and the facilities are currently operating at full capacity. ​ On April 30, 2022, the Peruvian government issued a Ministerial Resolution to set up a three-party-dialogue-table with members of the community, government and Company officials executives to better understand the concerns of all parties.
After an evaluation of the damage, the Company resumed production at the Cuajone mining unit and the facilities are currently operating at full capacity. ​ On April 30, 2022, the Peruvian government issued a Ministerial Resolution to set up a three-party-dialogue-table involving community members, government representatives and Company executives to better understand and address the concerns of all parties.
In 2022, we recorded four fatalities (two contractors and two employees) and in 2021, three employee fatalities were registered. The amounts paid to the Mexican and Peruvian authorities for reportable accidents had no adverse effects on our results.
In 2023, we recorded five fatalities (two contractors and three employees) and in 2022, four fatalities (two contractors and two employees) were registered. The amounts paid to the Mexican and Peruvian authorities for reportable accidents had no adverse effects on our results.
Fuel, gas and power costs constituted approximately 29% of our total production cost in 2023, 34% in 2022 and 31% in 2021. We rely upon third parties for our supply of the energy resources consumed in our operations.
Fuel, gas and power costs constituted approximately 26% of our total production cost in 2024, 29% in 2023 and 34% in 2022. We rely upon third parties for our supply of the energy resources consumed in our operations.
Our Tia Maria project in Peru has experienced delays while trying to resolve issues with community groups. ​ Seemingly in the Peruvian mining environment, it is becoming crucial to obtain acceptance from local communities for projects in their areas, which may entail compliance with the demands for substantial investments in community infrastructure development and modernization to proceed with the mining projects.
Our Tia Maria project in Peru has experienced delays while trying to resolve issues with community groups. ​ Seemingly in the Peruvian mining environment, it is becoming crucial to obtain acceptance from local communities for projects in their areas, which may entail compliance with the demands for substantial investments in community infrastructure development and modernization to proceed with the mining projects. ​ We are confident that we will move forward with the Tia Maria project.
Accordingly, when inflation or deflation in Peru is not offset by a change in the exchange rate of the sol, our financial position, results of operations, cash flows and the market price of our common stock could be affected. ​ Inflation in Peru in 2023, 2022 and 2021 was 3.2%, 8.5% and 6.4%, respectively.
Accordingly, when inflation or deflation in Peru is not offset by a change in the exchange rate of the sol, our financial position, results of operations, cash flows and the market price of our common stock could be affected. ​ 26 Table of Contents Inflation in Peru in 2024, 2023 and 2022 was 2.0%, 3.2% and 8.5%, respectively.
Acquisitions may also contribute to increasing mineral reserves and resources, and we review 17 Table of Contents potential acquisition opportunities on a regular basis.
Acquisitions may also contribute to increasing mineral reserves and resources, and we review potential acquisition opportunities on a regular basis.
Regarding non-fatal accidents, during the last four years, the Company’s Dart rate (rate to measure workplace injuries severe enough to warrant Day Away from work, job Restrictions and/or job Transfers) was much lower than the MSHA Dart rate (the MSHA Dart rate is published by the U.S.’s Mine Safety and Health Administration, and is used as an industry benchmark). ​ In 2023, we recorded five fatalities (two contractors and three employees).
Regarding non-fatal accidents, during the last four years, the Company’s Dart rate (rate to measure workplace injuries severe enough to warrant Day Away from work, job Restrictions and/or job Transfers) was much lower than the MSHA Dart rate (the MSHA Dart rate is published by the U.S.’s Mine Safety and Health Administration, and is used as an industry benchmark). ​ In 2024, we recorded one fatality of a contractor.
As of December 31, 2023, unions represented approximately 61% of our workforce in Peru and 70% of our workforce in Mexico. Currently, we have labor agreements in effect for our Mexican and Peruvian operations. ​ 20 Table of Contents Our Taxco mine in Mexico has been on strike since July 2007.
As of December 31, 2024, unions represented approximately 57% of our workforce in Peru and 71% of our workforce in Mexico. Currently, we have labor agreements in effect for our Mexican and Peruvian operations. ​ Our Taxco mine in Mexico has been on strike since July 2007.
In particular, surface and underground mining and related processing activities present inherent risks of injury to personnel, loss of life and damage to equipment. ​ The waste rock and tailings produced in our mining operations represent our largest volume of waste material. Managing the volume of waste rock and tailings presents significant environmental, safety and engineering challenges and risks.
In particular, surface and underground mining and related processing activities present inherent risks of injury to personnel, loss of life and damage to equipment. 17 Table of Contents ​ The waste rock and tailings produced in our mining operations represent our largest volume of waste material.
We maintain large tailings impoundments containing sand of ground rock, moistened with water, which are effectively large dams that must be engineered, built and monitored to assure structural stability and avoid leakages or structural collapse.
Managing the volume of waste rock and tailings presents significant environmental, safety and engineering challenges and risks. We maintain large tailings impoundments containing sand of ground rock, moistened with water, which are effectively large dams that must be engineered, built and monitored to assure structural stability and avoid leakages or structural collapse.
The Community insist to receive a economic compensation. ​ However, we cannot guarantee that any additional incidents will not arise or assert that any future incidents that occur will imply no adverse impacts for our facilities, the results of our operations or our financial position. ​ In addition, several collective action lawsuits and civil action lawsuits have been filed against the Company in Mexico through both federal courts and state courts in Sonora.
The Company has also indicated interest in purchasing land near the Cuajone operations to create a buffer zone to protect our facilities and future production. ​ However, we cannot guarantee that any additional incidents will not arise or assert that any future incidents that occur will imply no adverse impacts for our facilities, the results of our operations or our financial position. ​ In addition, collective action lawsuits and civil action lawsuits have been filed against the Company in Mexico through both federal courts and state courts in Sonora.
However, due to the quick response of our 22 Table of Contents Information Technology team, our Enterprise Resource Planning software was not affected by the aforementioned attack. ​ Given the unpredictability of the timing, nature and scope of information technology disruptions, we could potentially be subject to manipulation or improper use of our systems and networks, operational delays, situations that compromise confidential or otherwise protected information, destruction or corruption of data, security breaches, or financial losses from remedial actions, any of which could have a material adverse effect on the cash flows, competitive position, financial condition or results of our operations. ​ Our business is exposed to certain risks associated with artificial intelligence (“AI”) and other new technologies. ​ Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement new technologies in a timely, cost-effective and efficient manner.
We have taken appropriate preventive measures to mitigate potential risks by implementing an information security management system that conducts frequent monitoring; which ensures the application of controls that are frequently reviewed and tested. ​ Given the unpredictability of the timing, nature and scope of information technology disruptions, we could potentially be subject to manipulation or improper use of our systems and networks, operational delays, situations that compromise confidential or otherwise protected information, destruction or corruption of data, security breaches, or financial losses from remedial actions, any of which could have a material adverse effect on the cash flows, competitive position, financial condition or results of our operations. ​ Our business is exposed to certain risks associated with artificial intelligence (“AI”) and other new technologies. ​ Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement new technologies in a timely, cost-effective and efficient manner.
Accordingly, when inflation in Mexico increases without a corresponding depreciation of the peso, the net income generated by our Mexican operations is adversely affected. Inflation in Mexico was 4.7% in 2023, 7.8% in 2022 and 7.4% in 2021.
Accordingly, when inflation in Mexico increases without a corresponding depreciation of the peso, the net income generated by our Mexican operations is adversely affected. Inflation in Mexico was 4.2% in 2024, 4.7% in 2023 and 7.8% in 2022. The peso depreciated 20.0% against the U.S. dollar in 2024, versus a 12.7% appreciation in 2023 and a 5.9% appreciation in 2022.
However, if these issues continue in the long term, our supply chain and our sales flow could be adversely impacted. ​ Our Company is subject to health and safety laws that may restrict our operations, result in operational delays or increase our operating costs and adversely affect our financial results of operations. ​ We are required to comply with occupational health and safety laws and regulations in Peru and Mexico where our operations are subject to periodic inspections by the relevant governmental authorities.
In addition, future shortages of critical parts, equipment and skilled labor could adversely affect our operations and development projects. ​ Our Company is subject to health and safety laws that may restrict our operations, result in operational delays or increase our operating costs and adversely affect our financial results of operations. ​ We are required to comply with occupational health and safety laws and regulations in Peru and Mexico where our operations are subject to periodic inspections by the relevant governmental authorities.
The adoption and expansion of trade restrictions; changes in the current U.S.-China relations, including on-going trade tensions; or other changes in governmental policies related to taxes, tariffs, trade agreements or any other 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. ​ We cannot assure you that the market value or trading prices of our common stock and debt securities, will not be adversely affected by events in the United States or elsewhere, including emerging market countries. ​ Other international risks ​ We are a company with substantial assets located outside of the United States.
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. ​ 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. ​ Other international risks ​ We are a company with substantial assets located outside of the United States.
Depending on our capital investment program and global economic conditions, it is possible that future dividend distributions will be lower than the levels seen in recent years. ​ Our ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income. ​ Through 2023, the Company recognized the expected future tax benefit from deferred tax assets when the tax benefit was considered more likely than not to be realized.
Our ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income. ​ Through 2024, the Company recognized the expected future tax benefit from deferred tax assets when the tax benefit was considered more likely than not to be realized.
In 2023, the value of the sol appreciated by 2.8% against the U.S. dollar, versus a 4.5% appreciation in 2022 and a 10.3% depreciation in 2021.
In 2024, the sol depreciated 1.5% against the U.S. dollar, versus a 2.8% appreciation in 2023 and a 4.5% appreciation in 2022.
Geopolitical uncertainty and protectionism have the potential to inhibit international trade and negatively impact business confidence, which can create price volatility and constraints on our ability to trade in certain markets. ​ In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper and concentrate in the world. ​ Over the last three years, approximately 77.6% of our revenues have come from the sale of copper; 10.9% from molybdenum; 4.2% from silver; and 3.1% from zinc.
In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper and concentrate in the world. ​ Over the last three years, approximately 76.1% of our revenues have come from the sale of copper; 11.4% from molybdenum; 4.5% from silver; and 3.5% from zinc.
Volatility in global economic growth, particularly in developing countries, has the potential to adversely affect future demand and prices for commodities.
Volatility in global economic growth, particularly in developing countries, has the potential to adversely affect future demand and prices for commodities. Geopolitical uncertainty and protectionism have the potential to inhibit international trade and negatively impact business confidence, which can create price volatility and constraints on our ability to trade in certain markets.
Therefore, changes in economic policies and conditions in the United States could also have a significant adverse effect on Mexican economic conditions, affecting our business and the price of our common stock or debt securities. In 2017, the United States, Canada and Mexico began a discussion to update the North American Free Trade Agreement (“NAFTA”).
Therefore, changes in economic policies and conditions in the United States could also have a significant adverse effect on Mexican economic conditions, affecting our business and the price of our common stock or debt securities. ​ We cannot assure you that the market value or trading prices of our common stock and debt securities, will not be adversely affected by events in the United States or elsewhere, including emerging market countries. ​ 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.
Removed
In addition, future shortages of critical parts, equipment and skilled labor could adversely affect our operations and development projects. ​ Potential delays in the transport of products to customers and possible shortages of critical parts, equipment, and other resources may adversely affect our results of operations. ​ Current challenges in the global shipping industry have led to congestion in ports, a shortage in containers, and a lack of space on ships.
Added
Depending on our capital investment program and global economic conditions, it is possible that future dividend distributions will be lower than the levels seen in recent years.
Removed
Because of this situation, the Company faces a risk of potential supply chain disruptions that may adversely affect our operations and development projects. To address this potential issue, we have increased our safety stock levels and adjusted our replacement algorithms. Additionally, our revenues and collections may also be adversely affected by transportation delays, which could negatively impact our sales agreements.
Added
Between 2023 and 2024, several meetings were held with community representatives, but no agreements were reached. In January 2025, new community representatives were appointed for two years. These individuals have demonstrated a greater willingness to engage in dialogue and are interested in collaborating with the Company on joint social programs.
Removed
Although the recovery of the global economy is causing the aforementioned issues at ports and in the shipping industry, this situation is expected to be resolved gradually and to return to normal levels in the short term.
Added
We anticipate resuming discussions soon to tackle current issues and discuss our proposed plans for investing in social programs that address community needs.
Removed
We are confident that we will move forward with the Tia Maria project.
Added
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.
Removed
Several meetings have been held, the last meeting was in June 2023 and it is expected to have a new meeting in March 2024.
Added
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.
Removed
The Company has proposed plans to invest in social programs that address the needs voiced by the communities and has indicated interest in purchasing land near the Cuajone operations to establish a buffer zone to protect facilities and production in the future.
Added
It is currently not possible to determine the effects of the reform on the Company's operations. ​ Because we have significant operations in Mexico, we cannot provide any assurance that political developments and economic conditions, including any changes to economic policies or the adoption of other reforms proposed by existing or future administrations in Mexico, or the advent of drug-related violence in the country, will have no material adverse effect on market conditions, the prices of our securities, our ability to obtain financing, our results of operations or our financial condition. ​ Peruvian inflation and fluctuations in the sol exchange rate may adversely affect our financial condition and results of operations. ​ Although the U.S. dollar is our functional currency and our revenues are primarily denominated in U.S. dollars, as we operate in Peru, portions of our operating costs are denominated in Peruvian soles.
Removed
We have taken appropriate preventive measures to mitigate potential risks by implementing an information security management system that conducts frequent monitoring; which ensures the application of controls that are frequently reviewed and tested. ​ In March 2021, we experienced a Ransomware cyber-attack, which was carried out by individual hackers.
Removed
This cyber-attack encrypted a total of 420 servers and units of personal equipment.
Removed
In September 2018, the three countries reached an agreement on a new trade deal, which will be known as the United States—Mexico—Canada Agreement (“USMCA”). In June 2019, Mexico’s senate ratified the UMSCA. In December 2019, the three countries agreed to a new review of its regional trade pact, also concluding that the USMCA would replace NAFTA.
Removed
On January 29, 2020, the President of the U.S. ratified and signed the USMCA into law.
Removed
On July 1, 2020, the USMCA came into effect. ​ Although recent developments in the U.S. have reduced political instability, lifted consumer confidence and boosted the U.S. stock market, it is unclear whether the U.S. government will enact new policies towards China, that will reduce or eliminate trade tensions between the two countries.
Removed
Despite being the epicenter of the COVID-19 pandemic, China began 2021 with a relatively optimistic economic growth outlook and represents approximately 50% of the world’s 24 Table of Contents copper demand.
Removed
A slowing in China’s economic growth, coupled with continued trade tensions with the U.S. could result in lower copper prices which could have a material adverse impact on our business and results of operations.
Removed
The value of the peso appreciated by 12.7% against the U.S. dollar in 2023, versus a 5.9% apreciation in 2022 and a 3.2% of depreciation in 2021.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+0 added−0 removed28 unchanged
Biggest changeFor additional discussions of risks from cybersecurity threats we face, see Item 1A “Risk Factors”. There were no material cybersecurity incidents in 2023. ​ ​ 30 Table of Contents
Biggest changeFor additional discussions of risks from cybersecurity threats we face, see Item 1A “Risk Factors”. There were no material cybersecurity incidents in 2024. ​ ​
Assessments include the 28 Table of Contents qualitative and quantitative factors that are essential for determining materiality on information security and cybersecurity incidents. ​ In instances where a cybersecurity incident is classified and declared as material, our process is designed to meticulously document in a comprehensive report, all critical details such as the date and time of identification of the incident, a concise description of the incident's nature and scope, the impact of the incident on the Company's operations, and its current status (remediated or is undergoing remediation), in order to be clearly informed by the Company. ​ Information security and cybersecurity incidents undergo thorough review and assessment by the Information Security Subdirector, in collaboration with cybersecurity specialists and experts.
Assessments include the qualitative and quantitative factors that are essential for determining materiality on information security and cybersecurity incidents. ​ In instances where a cybersecurity incident is classified and declared as material, our process is designed to meticulously document in a comprehensive report, all critical details such as the date and time of identification of the incident, a concise description of the incident's nature and scope, the impact of the incident on the Company's operations, and its current status (remediated or is undergoing remediation), in order to be clearly informed by the Company. ​ Information security and cybersecurity incidents undergo thorough review and assessment by the Information Security Subdirector, in collaboration with cybersecurity specialists and experts.
All contracts with IT service providers must stipulate the service levels required by the Company. ​ Regular meetings are conducted with IT service providers to assess compliance with contracted services, which includes a report on detected information security and cybersecurity incidents, activities for their remediation, and findings and insights from previous reviews and improvements. ​ Engagement with External Experts ​ The Company engages top-tier external cyber security firms as needed and leverage their expertise.
All contracts with IT service providers must stipulate the service levels required by the Company. 28 Table of Contents ​ Regular meetings are conducted with IT service providers to assess compliance with contracted services, which includes a report on detected information security and cybersecurity incidents, activities for their remediation, and findings and insights from previous reviews and improvements. ​ Engagement with External Experts ​ The Company engages top-tier external cyber security firms as needed and leverage their expertise.
As part of management’s oversight of cybersecurity, the information security strategy is presented on an annual basis to SCC’s Audit Committee of the Board of Directors, which reports to the full Board of Directors, with additional review and oversight by AMC’s Risks Committee.
As part of management’s oversight of cybersecurity, the information security strategy is presented on an annual basis to SCC’s Audit Committee of the Board of Directors, which reports to 27 Table of Contents the full Board of Directors, with additional review and oversight by AMC’s Risks Committee.
The Audit Committee assists the Board of Directors with this responsibility by reviewing and discussing our risk assessment and risk management practices, including cybersecurity risks, with members of management.
The Audit Committee assists the Board of Directors with this responsibility by reviewing and discussing our risk assessment and risk 29 Table of Contents management practices, including cybersecurity risks, with members of management.
The current TISD has more than 25 years 29 Table of Contents of IT experience and has spent 15+ years overseeing cybersecurity strategy, implementation, and operation.
The current TISD has more than 25 years of IT experience and has spent 15+ years overseeing cybersecurity strategy, implementation, and operation.

Item 2. Properties

Properties — owned and leased real estate

189 edited+56 added−30 removed254 unchanged
Biggest changeEl Arco Baja California (Mexico) ​ Development Porphyry copper deposit; mineralization occurs in three sub-horizontal zones. ​ Consists of 20 concessiones covering approximately 72,131 hectares. ​ ​ 36 Table of Contents PROPERTY BOOK VALUE ​ As of December 31, 2023, net book values of property and mine development were as follows (in millions): ​ ​ ​ ​ ​ Peruvian operations: ​ Cuajone ​ $ 597.7 Toquepala ​ 1,925.4 Tia Maria project ​ 282.8 Ilo and other support facilities ​ 548.2 Construction in progress ​ 740.3 Total Peru ​ $ 4,094.4 Mexican open ‑ pit operations: ​ ​ Buenavista mine and concentrator plants ​ $ 2,451.6 Buenavista SX‑EW and Quebalix ​ 776.6 La Caridad mine and concentrator plant ​ 652.9 La Caridad support facilities ​ 261.2 Construction in progress ​ 464.4 Total Mexico Open Pit ​ $ 4,606.7 Mexican IMMSA unit: ​ San Luis Potosi ​ $ 85.2 Zinc electrolytic refinery ​ 80.1 Charcas ​ 103.6 San Martin ​ 132.5 Santa Barbara ​ 140.0 Santa Eulalia ​ 34.7 Other facilities ​ ​ 6.0 Construction in progress ​ ​ - Zinc electrolytic refinery ​ ​ 11.0 - Charcas ​ ​ 46.0 - San Martin ​ ​ 18.7 - Santa Barbara ​ ​ 78.0 - Santa Eulalia ​ ​ 15.3 - Other Facilities ​ ​ 3.4 Total IMMSA Unit ​ $ 754.5 Other property: ​ El Pilar ​ $ 116.0 Mexicana del Arco ​ 103.1 Total ​ $ 219.1 Mexican administrative offices ​ $ 108.2 Total Mexico ​ $ 5,688.5 Total Southern Copper Corporation ​ $ 9,782.9 ​ 37 Table of Contents SUMMARY OPERATING DATA ​ The following table contains certain operating data underlying our financial and operating information for each of the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ Year Ended December 31, 2023 -2022 2022 -2021 ​ ​ 2023 2022 2021 Volume % Volume % ​ COPPER (thousand pounds) : ​ Mined ​ Peru open ‑ pit ​ Toquepala 440,165 385,931 448,913 54,234 14.1 % (62,982) (14.0) % Cuajone 328,990 309,338 372,559 19,652 6.4 % (63,221) (17.0) % SX ‑ EW Toquepala 55,672 58,315 56,777 (2,643) (4.5) % 1,538 2.7 % Mexico open ‑ pit ​ ​ ​ ​ La Caridad 193,596 195,091 226,390 (1,495) (0.8) % (31,299) (13.8) % Buenavista 725,216 746,557 752,225 (21,341) (2.9) % (5,668) (0.8) % SX ‑ EW La Caridad 50,691 51,449 55,942 (758) (1.5) % (4,493) (8.0) % SX ‑ EW Buenavista 193,024 205,662 180,437 (12,638) (6.1) % 25,225 14.0 % IMMSA unit 21,084 20,137 19,222 947 4.7 % 915 4.8 % Total Mined 2,008,438 1,972,480 2,112,465 35,958 1.8 % (139,985) (6.6) % Smelted ​ Peru open ‑ pit ​ Blister Ilo 4,088 4,508 5,735 (420) 100.0 % (1,227) (21.4) % Anodes Ilo 798,342 771,630 680,263 26,712 3.5 % 91,367 13.4 % Mexico open ‑ pit ​ ​ ​ ​ Anodes La Caridad 581,167 629,283 633,621 (48,116) (7.6) % (4,338) (0.7) % Total Smelted 1,383,597 1,405,421 1,319,619 (21,824) (1.6) % 85,802 6.5 % Refined ​ Peru Open ‑ pit ​ Cathodes Ilo 638,589 638,741 573,583 (152) (0.0) % 65,158 11.4 % SX ‑ EW Toquepala 55,672 58,315 56,777 (2,643) (4.5) % 1,538 2.7 % Mexico Open ‑ pit ​ ​ ​ ​ Cathodes La Caridad 481,841 541,600 534,980 (59,759) (11.0) % 6,620 1.2 % SX ‑ EW La Caridad 50,691 51,449 55,942 (758) (1.5) % (4,493) (8.0) % SX ‑ EW Buenavista 193,024 205,662 180,437 (12,638) (6.1) % 25,225 14.0 % Total Refined 1,419,817 1,495,767 1,401,719 (75,950) (5.1) % 94,048 6.7 % Rod Mexico Open ‑ pit—La Caridad 340,182 344,893 330,961 (4,711) (1.4) % 13,932 4.2 % SILVER (thousand ounces) ​ Mined ​ Peru Open ‑ pit ​ Toquepala 2,615 2,220 2,681 395 17.7 % (461) (17.2) % Cuajone 2,395 2,298 2,692 97 4.3 % (394) (14.6) % Mexico Open ‑ pit ​ ​ ​ ​ La Caridad 2,065 2,086 2,227 (21) (1.0) % (141) (6.3) % Buenavista 4,669 5,208 4,774 (539) (10.3) % 434 9.1 % IMMSA unit 6,664 6,750 6,588 (86) (1.3) % 162 2.5 % Total Mined 18,408 18,562 18,962 (154) (0.8) % (400) (2.1) % Refined ​ Peru—Ilo 3,526 3,741 3,985 (215) (5.6) % (244) (6.1) % Mexico—La Caridad 7,398 8,569 7,612 (1,171) (13.7) % 957 12.6 % IMMSA unit 3 1,962 2,094 (1,959) (99.8) % (132) (6.3) % Total Refined 10,927 14,272 13,691 (3,345) (23.4) % 581 4.2 % MOLYBDENUM (thousand pounds) ​ Mined ​ Toquepala 13,916 16,934 23,462 (3,018) (17.8) % (6,528) (27.8) % Cuajone 8,252 7,992 9,237 260 3.3 % (1,245) (13.5) % Buenavista 11,937 11,848 11,524 89 0.8 % 324 2.8 % La Caridad 25,059 21,075 22,493 3,984 18.9 % (1,418) (6.3) % Total Mined 59,164 57,849 66,716 1,315 2.3 % (8,867) (13.3) % ZINC (thousand pounds) ​ Mined IMMSA 144,422 132,300 147,617 12,122 9.2 % (15,317) (10.4) % Refined IMMSA 222,695 220,225 204,306 2,470 1.1 % 15,919 7.8 % ​ (1) Copper production reported under “ smelted ” and “ refined ” is a subset of the mined copper and it is not additive to the mined copper. ​ ​ 38 Table of Contents SUMMARY DISCLOSURE OF MINERAL RESOURCES ​ The following table contains the summary of our mineral resources exclusive of mineral reserves as of December 31, 2023, based on long-term price assumptions of $3.80 per pound of copper, $11.50 per pound of molybdenum ($10.35 per pound of molybdenum in the case of our El Arco mine), $23.00 per ounce of silver, $1.32 per pound of zinc, $1.04 per pound of lead and $1,725 per ounce of gold. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured mineral resources ​ Indicated mineral resources ​ Measured + Indicated mineral resources ​ Inferred mineral resources ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) Copper: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peru: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cuajone Sulfides — ​ — % — ​ 329.5 ​ 0.38 % 2,746.6 ​ 329.5 ​ 0.38 % 2,746.6 ​ 836.0 ​ 0.32 % 5,831.2 Cuajone Leach ​ — ​ — % — ​ 0.2 ​ 0.54 % 2.6 ​ 0.2 ​ 0.54 % 2.6 ​ 0.3 ​ 0.51 % 3.4 Toquepala Sulfides — ​ — % — ​ 1,196.7 ​ 0.42 % 11,182.3 ​ 1,196.7 ​ 0.42 % 11,182.3 ​ 2,405.1 ​ 0.39 % 20,920.9 Toquepala Leach ​ — ​ — % — ​ 1,050.6 ​ 0.08 % 1,943.3 ​ 1,050.6 ​ 0.08 % 1,943.3 ​ 2,303.7 ​ 0.08 % 4,154.8 La Tapada deposit ​ — ​ — % — ​ 90.4 ​ 0.21 % 420.3 ​ 90.4 ​ 0.21 % 420.3 ​ 1.6 ​ 0.18 % 6.4 Tia Maria deposit — ​ — % — ​ 35.5 ​ 0.17 % 135.2 ​ 35.5 ​ 0.17 % 135.2 ​ 21.8 ​ 0.22 % 107.8 Los Chancas Oxide — ​ — % — ​ 98.0 ​ 0.45 % 975.2 ​ 98.0 ​ 0.45 % 975.2 ​ 33.0 ​ 0.38 % 277.4 Los Chancas Sulfide ​ — ​ — % — ​ 52.0 ​ 0.59 % 672.8 ​ 52.0 ​ 0.59 % 672.8 ​ 1,400.0 ​ 0.45 % 13,887.6 Michiquillay — ​ — % — ​ — ​ — % — ​ — ​ — % — ​ 2,288.0 ​ 0.43 % 21,554.8 Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista Mill — ​ — % — ​ 763.8 ​ 0.34 % 5,663.6 ​ 763.8 ​ 0.34 % 5,663.6 ​ 13,015.0 ​ 0.21 % 56,583.5 Buenavista Leach ​ — ​ — % — ​ 76.9 ​ 0.13 % 196.0 ​ 76.9 ​ 0.13 % 196.0 ​ 2,830.5 ​ 0.14 % 8,517.1 Buenavista zinc plant ​ — ​ — % — ​ 148.2 ​ 0.46 % 1,561.6 ​ 148.2 ​ 0.46 % 1,561.6 ​ 142.8 ​ 0.43 % 1,394.4 La Caridad Mill — ​ — % — ​ 3,927.5 ​ 0.16 % 13,680.6 ​ 3,927.5 ​ 0.16 % 13,680.6 ​ 2,972.8 ​ 0.14 % 8,913.2 La Caridad Leach ​ — ​ — % — ​ 683.0 ​ 0.08 % 1,129.0 ​ 683.0 ​ 0.08 % 1,129.0 ​ 526.0 ​ 0.08 % 904.5 Charcas — ​ — % — ​ 6.4 ​ 0.52 % 73.8 ​ 6.4 ​ 0.52 % 73.8 ​ 15.2 ​ 0.55 % 182.5 Santa Barbara ​ — ​ — % — ​ 25.5 ​ 0.52 % 291.8 ​ 25.5 ​ 0.52 % 291.8 ​ 18.2 ​ 0.55 % 222.2 San Martin ​ — ​ — % — ​ 13.0 ​ 0.65 % 187.0 ​ 13.0 ​ 0.65 % 187.0 ​ 52.3 ​ 0.48 % 554.0 El Arco Mill — ​ — % — ​ 826.6 ​ 0.41 % 7,544.9 ​ 826.6 ​ 0.41 % 7,544.9 ​ 2,344.9 ​ 0.37 % 19,352.3 El Arco Leach ​ — ​ — ​ — ​ 51.3 ​ 0.30 % 335.3 ​ 51.3 ​ 0.30 % 335.3 ​ 63.8 ​ 0.25 % 350.9 El Pilar 2.2 ​ 0.20 % 9.0 ​ 81.3 ​ 0.18 % 317.0 ​ 83.4 ​ 0.18 % 326.0 ​ 88.6 ​ 0.12 % 234.4 Pilares Mill — ​ — % — ​ — ​ — % — ​ — ​ — % — ​ 67.3 ​ 0.55 % 817.3 Pilares Leach ​ — ​ — % — ​ — ​ — % — ​ — ​ — % — ​ 0.9 ​ 0.34 % 6.8 Total 2.2 ​ ​ ​ 9.0 ​ 9,456.4 ​ ​ ​ 49,058.8 ​ 9,458.5 ​ ​ ​ 49,067.8 ​ 31,427.9 ​ ​ ​ 164,777.5 Molybdenum: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peru: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cuajone — ​ — % — ​ 329.5 ​ 0.014 % 103.4 ​ 329.5 ​ 0.014 % 103.4 ​ 836.0 ​ 0.011 % 200.5 Toquepala — ​ — % — ​ 1,196.7 ​ 0.023 % 606.7 ​ 1,196.7 ​ 0.023 % 606.7 ​ 2,405.1 ​ 0.019 % 1,009.3 Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista Mill — ​ — % — ​ 763.8 ​ 0.005 % 88.7 ​ 763.8 ​ 0.005 % 88.7 ​ 13,015.0 ​ 0.004 % 1,081.2 Buenavista zinc plant ​ — ​ — % — ​ 148.2 ​ 0.002 % 5.4 ​ 148.2 ​ 0.002 % 5.4 ​ 142.8 ​ 0.003 % 6.8 La Caridad Mill — ​ — % — ​ 3,927.5 ​ 0.028 % 2,424.4 ​ 3,927.5 ​ 0.028 % 2,424.4 ​ 2,972.8 ​ 0.025 % 1,638.5 El Arco Mill — ​ — % — ​ 826.6 ​ 0.008 % 146.5 ​ 826.6 ​ 0.008 % 146.5 ​ 2,344.9 ​ 0.006 % 298.2 Pilares Mill — ​ — % — ​ — ​ — % — ​ — ​ — % — ​ 67.3 ​ 0.005 % 7.5 Total — ​ ​ ​ — ​ 7,192.3 ​ ​ ​ 3,375.1 ​ 7,192.3 ​ ​ ​ 3,375.1 ​ 21,783.9 ​ ​ ​ 4,241.9 Silver: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas — ​ — % — ​ 6.4 ​ 84.0 ​ 17,297.0 ​ 6.4 ​ 84.0 ​ 17,297.0 ​ 15.2 ​ 98.0 ​ 48,005.0 Santa Barbara — ​ — % — ​ 25.5 ​ 103.0 ​ 84,495.0 ​ 25.5 ​ 103.0 ​ 84,495.0 ​ 18.2 ​ 95.0 ​ 55,444.0 San Martin — ​ — % — ​ 13.0 ​ 77.0 ​ 32,236.0 ​ 13.0 ​ 77.0 ​ 32,236.0 ​ 52.3 ​ 72.0 ​ 121,500.0 El Arco Mill — ​ — % — ​ 826.6 ​ 1.6 ​ 41,875.3 ​ 826.6 ​ 1.6 ​ 41,875.3 ​ 2,344.9 ​ 1.5 ​ 110,887.3 Total — ​ ​ ​ — ​ 871.5 ​ ​ ​ 175,903.3 ​ 871.5 ​ ​ ​ 175,903.3 ​ 2,430.6 ​ ​ ​ 335,836.3 Zinc: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista zinc plant ​ — ​ — % — ​ 148.2 ​ 0.78 % 2,416.3 ​ 148.2 ​ 0.78 % 2,416.3 ​ 142.8 ​ 0.49 % 1,638.0 Buenavista Cu plant ​ — ​ — % — ​ 763.8 ​ 0.07 % 1,182.1 ​ 763.8 ​ 0.07 % 1,182.1 ​ 13,015.0 ​ 0.03 % 8,088.8 Charcas ​ — ​ — % — ​ 6.4 ​ 3.06 % 431.8 ​ 6.4 ​ 3.06 % 431.8 ​ 15.2 ​ 2.78 % 928.0 Santa Barbara ​ — ​ — % — ​ 25.5 ​ 3.15 % 1,772.7 ​ 25.5 ​ 3.15 % 1,772.7 ​ 18.2 ​ 3.86 % 1,553.5 San Martin ​ — ​ — % — ​ 13.0 ​ 1.97 % 565.0 ​ 13.0 ​ 1.97 % 565.0 ​ 52.3 ​ 2.66 % 3,072.7 Total ​ — ​ ​ ​ — ​ 956.9 ​ ​ ​ 6,367.9 ​ 956.9 ​ ​ ​ 6,367.9 ​ 13,243.5 ​ ​ ​ 15,281.0 39 Table of Contents Lead: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas ​ — ​ — % — ​ 6.4 ​ 0.39 % 55.0 ​ 6.4 ​ 0.39 % 55.0 ​ 15.2 ​ 0.39 % 129.5 Santa Barbara ​ — ​ — % — ​ 25.5 ​ 1.99 % 1,121.0 ​ 25.5 ​ 1.99 % 1,121.0 ​ 18.2 ​ 2.25 % 906.0 San Martin ​ — ​ — % — ​ 13.0 ​ 0.34 % 96.8 ​ 13.0 ​ 0.34 % 96.8 ​ 52.3 ​ 0.32 % 369.3 Total ​ — ​ ​ ​ — ​ 44.9 ​ ​ ​ 1,272.8 ​ 44.9 ​ ​ ​ 1,272.8 ​ 85.7 ​ ​ ​ 1,404.8 Gold: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Santa Barbara ​ — ​ — % — ​ 25.5 ​ 0.27 ​ 221.0 ​ 25.5 ​ 0.27 ​ 221.0 ​ 18.2 ​ 0.17 ​ 98.0 El Arco Mill ​ — ​ — % — ​ 826.6 ​ 0.12 ​ 3,226.1 ​ 826.6 ​ 0.12 ​ 3,226.1 ​ 2,344.9 ​ 0.11 ​ 8,053.5 Total ​ — ​ ​ ​ — ​ 852.1 ​ ​ ​ 3,447 ​ 852.1 ​ ​ ​ 3,447 ​ 2,363.1 ​ ​ ​ 8,152 ​ (1) Mineral resources are reported in situ and are current at December 31, 2023.
Biggest changeEl Arco Baja California (Mexico) ​ Development Porphyry copper deposit; mineralization occurs in three sub-horizontal zones. ​ Consists of 11 concessions covering approximately 72,133 hectares. ​ ​ 35 Table of Contents PROPERTY BOOK VALUE ​ As of December 31, 2024, net book values of property and mine development were as follows (in millions): ​ ​ ​ ​ ​ Peruvian operations: ​ Cuajone ​ $ 737.1 Toquepala ​ 1,917.2 Tia Maria project ​ 286.0 Ilo and other support facilities ​ 546.6 Construction in progress ​ 539.8 Total Peru ​ $ 4,026.7 Mexican open ‑ pit operations: ​ ​ Buenavista mine and concentrator plants ​ $ 2,445.3 Buenavista SX‑EW and Quebalix ​ 669.9 La Caridad mine and concentrator plant ​ 257.0 La Caridad support facilities ​ 790.5 Construction in progress ​ 546.6 Total Mexico Open Pit ​ $ 4,709.3 Mexican IMMSA unit: ​ San Luis Potosi ​ $ 85.7 Zinc electrolytic refinery ​ 74.4 Charcas ​ 115.8 San Martin ​ 131.0 Santa Barbara ​ 183.3 Santa Eulalia ​ 38.9 Other facilities ​ ​ 5.1 Construction in progress ​ ​ - Zinc electrolytic refinery ​ ​ 13.5 - Charcas ​ ​ 53.0 - San Martin ​ ​ 17.7 - Santa Barbara ​ ​ 76.6 - Santa Eulalia ​ ​ 8.0 - Other Facilities ​ ​ 2.1 Total IMMSA Unit ​ $ 805.1 Other property: ​ El Pilar ​ $ 119.9 Mexicana del Arco ​ 110.0 Total ​ $ 229.9 Mexican administrative offices ​ $ 112.3 Total Mexico ​ $ 5,856.6 Total Southern Copper Corporation ​ $ 9,883.3 ​ 36 Table of Contents SUMMARY OPERATING DATA ​ The following table contains certain operating data underlying our financial and operating information for each of the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ Year Ended December 31, 2024 -2023 2023 -2022 ​ ​ 2024 2023 2022 Volume % Volume % ​ COPPER (thousand pounds) : ​ Mined ​ Peru open ‑ pit ​ Toquepala 496,428 440,165 385,931 56,263 12.8 % 54,234 14.1 % Cuajone 363,454 328,990 309,338 34,464 10.5 % 19,652 6.4 % SX‑EW Toquepala 53,165 55,672 58,315 (2,507) (4.5) % (2,643) (4.5) % Mexico open ‑ pit ​ ​ ​ ​ La Caridad 206,628 193,596 195,091 13,032 6.7 % (1,495) (0.8) % Buenavista 769,323 725,216 746,557 44,107 6.1 % (21,341) (2.9) % SX‑EW La Caridad 51,257 50,691 51,449 566 1.1 % (758) (1.5) % SX‑EW Buenavista 185,210 193,024 205,662 (7,814) (4.0) % (12,638) (6.1) % IMMSA unit 21,506 21,084 20,137 422 2.0 % 947 4.7 % Total Mined 2,146,971 2,008,438 1,972,480 138,533 6.9 % 35,958 1.8 % Smelted ​ Peru open ‑ pit ​ Blister Ilo 3,323 4,088 4,508 (765) 100.0 % (420) (9.3) % Anodes Ilo 790,612 798,342 771,630 (7,730) (1.0) % 26,712 3.5 % Mexico open ‑ pit ​ ​ ​ ​ Anodes La Caridad 553,662 581,167 629,283 (27,505) (4.7) % (48,116) (7.6) % Total Smelted 1,347,597 1,383,597 1,405,421 (36,000) (2.6) % (21,824) (1.6) % Refined ​ Peru Open ‑ pit ​ Cathodes Ilo 634,707 638,589 638,741 (3,882) (0.6) % (152) (0.0) % SX‑EW Toquepala 53,165 55,672 58,315 (2,507) (4.5) % (2,643) (4.5) % Mexico Open ‑ pit ​ ​ ​ ​ Cathodes La Caridad 478,701 481,841 541,600 (3,140) (0.7) % (59,759) (11.0) % SX‑EW La Caridad 51,257 50,691 51,449 566 1.1 % (758) (1.5) % SX‑EW Buenavista 185,210 193,024 205,662 (7,814) (4.0) % (12,638) (6.1) % Total Refined 1,403,040 1,419,817 1,495,767 (16,777) (1.2) % (75,950) (5.1) % Rod Mexico Open ‑ pit—La Caridad 336,785 340,182 344,893 (3,397) (1.0) % (4,711) (1.4) % SILVER (thousand ounces) ​ Mined ​ Peru Open ‑ pit ​ Toquepala 3,062 2,615 2,220 447 17.0 % 395 17.8 % Cuajone 2,635 2,395 2,298 240 10.1 % 97 4.2 % Mexico Open ‑ pit ​ ​ ​ ​ La Caridad 2,208 2,065 2,086 143 6.9 % (21) (1.0) % Buenavista 6,304 4,669 5,208 1,635 35.0 % (539) (10.3) % IMMSA unit 6,775 6,664 6,750 111 1.7 % (86) (1.3) % Total Mined 20,984 18,408 18,562 2,576 14.0 % (154) (0.8) % Refined ​ Peru—Ilo 4,070 3,526 3,741 544 15.5 % (215) (5.7) % Mexico—La Caridad 7,929 7,398 8,569 531 7.2 % (1,171) (13.7) % IMMSA unit — 3 1,962 (3) (100.0) % (1,959) (99.8) % Total Refined 11,999 10,927 14,272 1,072 9.8 % (3,345) (23.4) % MOLYBDENUM (thousand pounds) ​ Mined ​ Toquepala 19,771 13,916 16,934 5,855 42.1 % (3,018) (17.8) % Cuajone 9,740 8,252 7,992 1,488 18.0 % 260 3.3 % Buenavista 12,991 11,937 11,848 1,054 8.8 % 89 0.8 % La Caridad 21,427 25,059 21,075 (3,632) (14.5) % 3,984 18.9 % Total Mined 63,929 59,164 57,849 4,765 8.1 % 1,315 2.3 % ZINC (thousand pounds) ​ Mined ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ IMMSA 144,875 144,422 132,300 453 0.3 % 12,122 9.2 % Buenavista ​ 141,750 ​ — ​ — ​ 141,750 ​ 100.0 % — ​ — % Total Mined 286,625 144,422 132,300 142,203 98.5 % 12,122 9.2 % Refined IMMSA 217,734 222,695 220,225 (4,961) (2.2) % 2,470 1.1 % 37 Table of Contents (1) Copper production reported under “ smelted ” and “ refined ” is a subset of the mined copper and it is not additive to the mined copper. ​ SUMMARY DISCLOSURE OF MINERAL RESOURCES ​ The following table contains the summary of our mineral resources exclusive of mineral reserves as of December 31, 2024, based on long-term price assumptions of $3.80 per pound of copper, $11.50 per pound of molybdenum ($10.35 per pound of molybdenum in the case of our El Arco mine), $23.00 per ounce of silver, $1.32 per pound of zinc, $1.04 per pound of lead and $1,725 per ounce of gold. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured mineral resources ​ Indicated mineral resources ​ Measured + Indicated mineral resources ​ Inferred mineral resources ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ Amount ​ ​ Metal ​ ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) ​ (million tonnes) ​ Grades ​ Content (million lb) Copper: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peru: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cuajone Sulfides 62.0 ​ 0.35 % 471.9 ​ 444.2 ​ 0.33 % 3,225.6 ​ 506.2 ​ 0.33 % 3,697.5 ​ 865.3 ​ 0.28 % 5,420.8 Cuajone Leach ​ — ​ — % — ​ 0.0 ​ 0.55 % 0.3 ​ 0.0 ​ 0.55 % 0.3 ​ 0.0 ​ 0.64 % 0.2 Toquepala Sulfides 99.3 ​ 0.57 % 1,241.2 ​ 179.0 ​ 0.39 % 1,525.3 ​ 278.3 ​ 0.45 % 2,766.6 ​ 161.4 ​ 0.29 % 1,017.4 Toquepala Leach ​ 11.3 ​ 0.15 % 37.4 ​ 46.0 ​ 0.15 % 153.4 ​ 57.3 ​ 0.15 % 190.8 ​ 52.4 ​ 0.15 % 177.0 La Tapada deposit ​ — ​ — % — ​ 90.4 ​ 0.21 % 420.3 ​ 90.4 ​ 0.21 % 420.3 ​ 1.6 ​ 0.18 % 6.4 Tia Maria deposit — ​ — % — ​ 35.5 ​ 0.17 % 135.2 ​ 35.5 ​ 0.17 % 135.2 ​ 21.8 ​ 0.22 % 107.8 Los Chancas Oxide — ​ — % — ​ 98.0 ​ 0.45 % 972.0 ​ 98.0 ​ 0.45 % 972.0 ​ 33.0 ​ 0.38 % 276.0 Los Chancas Sulfide ​ — ​ — % — ​ 52.0 ​ 0.59 % 676.0 ​ 52.0 ​ 0.59 % 676.0 ​ 1,400.0 ​ 0.45 % 13,889.0 Michiquillay — ​ — % — ​ — ​ — % — ​ — ​ — % — ​ 2,287.9 ​ 0.43 % 21,554.8 Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista Mill — ​ — % — ​ 627.0 ​ 0.38 % 5,243.0 ​ 627.0 ​ 0.38 % 5,243.0 ​ 7,848.0 ​ 0.34 % 58,477.6 Buenavista Leach ​ — ​ — % — ​ 53.0 ​ 0.33 % 377.1 ​ 53.0 ​ 0.33 % 377.1 ​ 373.0 ​ 0.18 % 1,457.4 Buenavista zinc plant ​ — ​ — % — ​ 203.0 ​ 0.44 % 1,985.5 ​ 203.0 ​ 0.44 % 1,985.5 ​ 705.0 ​ 0.37 % 5,809.5 La Caridad Mill 89.0 ​ 0.15 % 295.4 ​ 2,136.0 ​ 0.14 % 6,675.6 ​ 2,224.0 ​ 0.14 % 6,971.0 ​ 5,315.0 ​ 0.13 % 14,764.0 La Caridad Leach ​ 5.0 ​ 0.07 % 7.2 ​ 113.0 ​ 0.07 % 161.9 ​ 117.0 ​ 0.07 % 169.2 ​ 342.0 ​ 0.08 % 610.7 Charcas — ​ — % — ​ 18.1 ​ 0.35 % 138.8 ​ 18.1 ​ 0.35 % 138.8 ​ 15.8 ​ 0.32 % 109.8 Santa Barbara ​ — ​ — % — ​ 19.9 ​ 0.47 % 205.2 ​ 19.9 ​ 0.47 % 205.2 ​ 47.3 ​ 0.45 % 465.4 San Martin ​ — ​ — % — ​ 13.8 ​ 0.62 % 190.2 ​ 13.8 ​ 0.62 % 190.2 ​ 55.7 ​ 0.46 % 570.8 El Arco Mill — ​ — % — ​ 826.6 ​ 0.41 % 7,544.9 ​ 826.6 ​ 0.41 % 7,544.9 ​ 2,344.9 ​ 0.37 % 19,352.3 El Arco Leach ​ — ​ — ​ — ​ 51.3 ​ 0.30 % 335.3 ​ 51.3 ​ 0.30 % 335.3 ​ 63.8 ​ 0.25 % 350.9 El Pilar 2.2 ​ 0.20 % 9.0 ​ 81.3 ​ 0.18 % 317.0 ​ 83.4 ​ 0.18 % 326.0 ​ 88.6 ​ 0.12 % 234.4 Pilares Mill — ​ — % — ​ 30.1 ​ 0.55 % 364.2 ​ 30.1 ​ 0.55 % 364.2 ​ 3.4 ​ 0.46 % 34.4 Pilares Leach ​ — ​ — % — ​ 0.0 ​ 0.16 % 0.1 ​ 0.0 ​ 0.16 % 0.1 ​ 0.0 ​ 0.09 % 0.0 Total 268.8 ​ ​ ​ 2,062.2 ​ 5,118.1 ​ ​ ​ 30,646.8 ​ 5,384.9 ​ ​ ​ 32,709.0 ​ 22,025.8 ​ ​ ​ 144,686.7 Molybdenum: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peru: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cuajone 62.0 ​ 0.014 % 18.7 ​ 444.2 ​ 0.012 % 116.1 ​ 506.2 ​ 0.012 % 134.8 ​ 865.3 ​ 0.008 % 160.2 Toquepala 99.3 ​ 0.038 % 83.0 ​ 179.0 ​ 0.021 % 81.7 ​ 278.3 ​ 0.027 % 164.8 ​ 161.4 ​ 0.008 % 28.6 Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista Mill — ​ — % — ​ 627.0 ​ 0.008 % 110.7 ​ 627.0 ​ 0.008 % 110.7 ​ 7,848.0 ​ 0.008 % 1,384.1 Buenavista zinc plant ​ — ​ — % — ​ 203.0 ​ 0.004 % 17.9 ​ 203.0 ​ 0.004 % 17.9 ​ 705.0 ​ 0.009 % 139.8 La Caridad Mill 89.0 ​ 0.025 % 50.7 ​ 2,136.0 ​ 0.022 % 1,026.6 ​ 2,224.0 ​ 0.022 % 1,077.2 ​ 5,315.0 ​ 0.024 % 2,806.5 El Arco Mill — ​ — % — ​ 826.6 ​ 0.008 % 146.5 ​ 826.6 ​ 0.008 % 146.5 ​ 2,344.9 ​ 0.006 % 298.2 Pilares Mill — ​ — % — ​ 30.1 ​ 0.014 % 9.3 ​ 30.1 ​ 0.014 % 9.3 ​ 3.4 ​ 0.014 % 1.1 Total 250.3 ​ ​ ​ 152.4 ​ 4,445.9 ​ ​ ​ 1,508.8 ​ 4,695.2 ​ ​ ​ 1,661.2 ​ 17,242.9 ​ ​ ​ 4,818.5 Silver: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas — ​ — ​ — ​ 18.1 ​ 57.1 ​ 33,198.3 ​ 18.1 ​ 57.1 ​ 33,198.3 ​ 15.8 ​ 62.7 ​ 31,775.8 Santa Barbara — ​ — ​ — ​ 19.9 ​ 97.5 ​ 62,334.6 ​ 19.9 ​ 97.5 ​ 62,334.6 ​ 47.3 ​ 81.5 ​ 124,080.7 San Martin — ​ — ​ — ​ 13.8 ​ 76.1 ​ 33,793.2 ​ 13.8 ​ 76.1 ​ 33,793.2 ​ 55.7 ​ 71.1 ​ 127,473.0 El Arco Mill — ​ — ​ — ​ 826.6 ​ 1.6 ​ 41,875.3 ​ 826.6 ​ 1.6 ​ 41,875.3 ​ 2,344.9 ​ 1.5 ​ 110,887.3 Total — ​ ​ ​ — ​ 878.4 ​ ​ ​ 171,201.3 ​ 878.4 ​ ​ ​ 171,201.3 ​ 2,463.7 ​ ​ ​ 394,216.7 Zinc: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista zinc plant ​ — ​ — % — ​ 203.0 ​ 0.37 % 1,645.6 ​ 203.0 ​ 0.37 % 1,645.6 ​ 705.0 ​ 0.18 % 2,858.1 Buenavista Cu plant ​ — ​ — % — ​ 627.0 ​ 0.04 % 553.4 ​ 627.0 ​ 0.04 % 553.4 ​ 7,848.0 ​ 0.04 % 6,747.4 Charcas ​ — ​ — % — ​ 18.1 ​ 3.74 % 1,492.8 ​ 18.1 ​ 3.74 % 1,492.8 ​ 15.8 ​ 3.32 % 1,152.7 Santa Barbara ​ — ​ — % — ​ 19.9 ​ 3.36 % 1,473.3 ​ 19.9 ​ 3.36 % 1,473.3 ​ 47.3 ​ 3.34 % 3,480.5 San Martin ​ — ​ — % — ​ 13.8 ​ 1.89 % 574.9 ​ 13.8 ​ 1.89 % 574.9 ​ 55.7 ​ 2.55 % 3,136.2 Total ​ — ​ ​ ​ — ​ 881.8 ​ ​ ​ 5,740.1 ​ 881.8 ​ ​ ​ 5,740.1 ​ 8,671.8 ​ ​ ​ 17,374.9 38 Table of Contents Lead: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas ​ — ​ — % — ​ 18.1 ​ 0.24 % 97.0 ​ 18.1 ​ 0.24 % 97.0 ​ 15.8 ​ 0.35 % 123.1 Santa Barbara ​ — ​ — % — ​ 19.9 ​ 1.71 % 751.0 ​ 19.9 ​ 1.71 % 751.0 ​ 47.3 ​ 1.87 % 1,950.2 San Martin ​ — ​ — % — ​ 13.8 ​ 0.34 % 102.4 ​ 13.8 ​ 0.34 % 102.4 ​ 55.7 ​ 0.31 % 384.3 Total ​ — ​ ​ ​ — ​ 51.8 ​ ​ ​ 950.4 ​ 51.8 ​ ​ ​ 950.4 ​ 118.8 ​ ​ ​ 2,457.6 Gold: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Santa Barbara ​ — ​ — ​ — ​ 19.9 ​ 0.16 ​ 99.6 ​ 19.9 ​ 0.16 ​ 99.6 ​ 47.3 ​ 0.12 ​ 185.9 El Arco Mill ​ — ​ — ​ — ​ 826.6 ​ 0.12 ​ 3,226.1 ​ 826.6 ​ 0.12 ​ 3,226.1 ​ 2,344.9 ​ 0.11 ​ 8,053.5 Total ​ — ​ ​ ​ — ​ 846.5 ​ ​ ​ 3,326 ​ 846.5 ​ ​ ​ 3,326 ​ 2,392.2 ​ ​ ​ 8,239.4 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2024.
Air is pumped into the cells producing a froth, which carries the copper mineral to the surface but not the waste rock, or tailings. Recovered copper, with the consistency of froth, is filtered and dried to produce copper concentrates with an average copper content of approximately 24%.
Air is pumped into the cells producing a froth, which carries the copper mineral to the surface but not the waste rock, or tailings. Recovered copper, with the consistency of froth, is filtered and dried to produce copper concentrates with an average copper content of approximately 24%.
The qualified person (“QP”) has not visited the site since August 2021 and cannot independently determine whether the contractor activities have impacted the Mineral Resources. (2) Mineral resources are reported exclusive of mineral reserves.
The qualified person (“QP”) has not visited the site since August 2021 and cannot independently determine whether contractor activities have impacted Mineral Resources. (2) Mineral resources are reported exclusive of mineral reserves.
The QP has not visited the site since August 2021 and cannot independently determine whether the contractor activities have impacted the Mineral Reserves. (2) The reference point for the estimate is delivery to the leach pad.
The QP has not visited the site since August 2021 and cannot independently determine whether the contractor activities have impacted Mineral Reserves. (2) The reference point for the estimate is delivery to the leach pad.
(4) Mineral resources are reported at metal-equivalent Cut-Off Grades (COG) based on metal price assumptions, variable metallurgical recovery assumptions, mining costs, processing costs, G&A costs, and variable Net Smelter Recovery (NSR) factors.
(4) Mineral resources are reported at metal-equivalent Cut-Off Grades (COG) based on metal price assumptions, variable metallurgical recovery assumptions, mining costs, processing costs, G&A costs, and variable Net Smelter Recovery (NSR) factors.
(4) Mineral resources are reported at metal-equivalent Cut-Off Grades (COG) based on metal price assumptions, variable metallurgical recovery assumptions, mining costs, processing costs, G&A costs, and variable Net Smelter Recovery (NSR) factors.
(4) Mineral resources are reported at metal-equivalent Cut-Off Grades (COG) based on metal price assumptions, variable metallurgical recovery assumptions, mining costs, processing costs, G&A costs, and variable Net Smelter Recovery (NSR) factors.
The agreements allow for exploration and mining activities. The La Caridad complex imports natural gas from the United States through its pipeline (between Douglas, Arizona and Nacozari, Sonora). The electrical power is supplied to site from the utility grid via 230 kV overhead transmission lines. The bulk of demand is supplied by MGE, a subsidiary of Grupo Mexico.
The agreements allow for exploration and mining activities. The La Caridad-Pilares complex imports natural gas from the United States through its pipeline (between Douglas, Arizona and Nacozari, Sonora). The electrical power is supplied to site from the utility grid via 230 kV overhead transmission lines. The bulk of demand is supplied by MGE, a subsidiary of Grupo Mexico.
The process ends with the refining of the gold and silver alloy. We also recover commercial selenium from the gas produced by the Kaldo furnace process. ​ Copper Rod Plant ​ A rod plant at the La Caridad complex began operations in 1998 and reached its full annual operating capacity of 150,000 tonnes in 1999.
The process ends with the refining of the gold and silver alloy. We also recover commercial selenium from the gas produced by the Kaldo furnace process. ​ Copper Rod Plant ​ A rod plant at the La Caridad-Pilares complex began operations in 1998 and reached its full annual operating capacity of 150,000 tonnes in 1999.
Concentrates are then shipped by rail to the smelter at La Caridad. ​ In the second concentrator, material with a copper grade above a cut-off grade of aprroximately 0.30% is sent to a three-phase milling circuit, where the ore size is reduced to approximately one-half inch.
Concentrates are then shipped by rail to the smelter at La Caridad. ​ In the second concentrator, material with a copper grade above a cut-off grade of approximately 0.30% is sent to a three-phase milling circuit, where the ore size is reduced to approximately one-half inch.
(5) For further information on assumptions used in preparing the estimates, including a detailed description of the cut-off determination, please refer to Chapter 11 of the Charcas operations technical report summary prepared by qualified persons, under Exhibit 96.11 to this Form 10-K.
(5) For further information on assumptions used in preparing the 2024 estimates, including a detailed description of the cut-off determination, please refer to Chapter 11 of the Charcas operations technical report summary prepared by qualified persons, under Exhibit 96.10 to this Form 10-K.
A copper-gold prospect located in the Atacama region, northern Chile has been under exploration for copper and molybdenum porphyry since 2014. In 2016 and 2017, we conducted a diamond drilling program of 22,108 meters and finished the conceptual study. In 2022, we concluded the pre-feasibility study of the project.
A copper-gold prospect located in the Atacama region, northern Chile has been under exploration for copper and molybdenum porphyry since 2014. In 2016 and 2017, we conducted a diamond drilling program of 22,108 meters and finished the conceptual study. In 2022 and 2023, we concluded the pre-feasibility study of the project.
The effectiveness of the controls are reviewed periodically to address changes in conditions and the degree of compliance with policies and procedures. ​ EXPLORATION ACTIVITIES ​ We are engaged in ongoing extensive exploration to locate additional ore bodies in Peru, Mexico, Argentina, Ecuador and Chile. We also conduct exploration in the areas of our current mining operations.
The effectiveness of the controls are reviewed periodically to address changes in conditions and the degree of compliance with policies and procedures. ​ EXPLORATION ACTIVITIES ​ We are engaged in ongoing extensive exploration to locate additional ore bodies in Peru, Mexico, Argentina and Chile. We also conduct exploration in the areas of our current mining operations.
This depth increase presents geotechnical challenges, primarily the risk of slope failure. ​ 49 Table of Contents Geotechnical Measures from 2007 to 2018: Preventive actions were taken during 2007-2018 to enhance Toquepala pit slope stability, including installing berms, updating monitoring software, and initiating the "Slope Stability Analysis in Deposits of Waste and Leachable Material" study in 2013. ​ Developments in 2019: External consultants performed an update on slope stability analysis, incorporating the IBIS ArcSAR radar for enhanced monitoring and implementing sub-horizontal drains for pit slope depressurization. ​ Studies and Implementations in 2020 and 2021: In 2020, external consultants conducted stability studies for the Toquepala Pit and various waste deposits, incorporating an IBIS ArcSAR radar with a five-kilometer range into the pit slope monitoring system.
This depth increase presents geotechnical challenges, primarily the risk of slope failure. ​ 48 Table of Contents Geotechnical Measures from 2007 to 2018: Preventive actions were taken during 2007-2018 to enhance Toquepala pit slope stability, including installing berms, updating monitoring software, and initiating the "Slope Stability Analysis in Deposits of Waste and Leachable Material" study in 2013. ​ Developments in 2019: External consultants performed an update on slope stability analysis, incorporating the IBIS ArcSAR radar for enhanced monitoring and implementing sub-horizontal drains for pit slope depressurization. ​ Studies and Implementations in 2020 and 2021: In 2020, external consultants conducted stability studies for the Toquepala Pit and various waste deposits, incorporating an IBIS ArcSAR radar with a five-kilometer range into the pit slope monitoring system.
(4) Mineral reserves are reported on an elevated cut of grade for the first three years of the mine schedule and then on a break-even plant and leach profit basis for the remaining LOM schedule.
(4) Mineral reserves are reported on an elevated cut-off grade for the first three years of the mine schedule and then on a break-even plant and leach profit basis for the remaining LOM schedule.
We believe all of the equipment at our Peruvian plants is in good physical condition and is suitable for our operations. ​ 42 Table of Contents The map below indicates the approximate location of, and access to, our Cuajone and Toquepala mine complexes and our Ilo processing facilities: ​ ​ Cuajone ​ The Cuajone operations consist of an open-pit copper mine and a concentrator and are located in the Torata District, Mariscal Nieto Region, of Moquegua, approximately 878 km from the city of Lima and 27 km from the city of Moquegua.
We believe all of the equipment at our Peruvian plants is in good physical condition and is suitable for our operations. ​ 41 Table of Contents The map below indicates the approximate location of, and access to, our Cuajone and Toquepala mine complexes and our Ilo processing facilities: ​ ​ Cuajone ​ The Cuajone operations consist of an open-pit copper mine and a concentrator and are located in the Torata District, Mariscal Nieto Region, of Moquegua, approximately 878 km from the city of Lima and 27 km from the city of Moquegua.
The only known mineralization is derived from oxidation of low-grade porphyry copper systems. ​ Mineral resources ​ The following table contains the summary of copper mineral resources for the La Tapada and Tia Maria deposits as of December 31, 2023, based on long-term price assumptions of $3.80 per pound, fixed over the 20 year mine life: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ La Tapada Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources 90.4 ​ 0.21 % 69 % 420.3 Measured + Indicated mineral resources ​ 90.4 ​ 0.21 % 69 % 420.3 Inferred mineral resources ​ 1.6 ​ 0.18 % 69 % 6.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ Tia Maria Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources 35.5 ​ 0.17 % 65 % 135.2 Measured + Indicated mineral resources ​ 35.5 ​ 0.17 % 65 % 135.2 Inferred mineral resources ​ 21.8 ​ 0.22 % 65 % 107.8 ​ (1) Mineral resources are reported in situ and are current as at December 31, 2023.
The only known mineralization is derived from oxidation of low-grade porphyry copper systems. ​ Mineral resources ​ The following table contains the summary of copper mineral resources for the La Tapada and Tia Maria deposits as of December 31, 2024, based on long-term price assumptions of $3.80 per pound, fixed over the 20 year mine life: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ La Tapada Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources 90.4 ​ 0.21 % 69 % 420.3 Measured + Indicated mineral resources ​ 90.4 ​ 0.21 % 69 % 420.3 Inferred mineral resources ​ 1.6 ​ 0.18 % 69 % 6.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ Tia Maria Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources 35.5 ​ 0.17 % 65 % 135.2 Measured + Indicated mineral resources ​ 35.5 ​ 0.17 % 65 % 135.2 Inferred mineral resources ​ 21.8 ​ 0.22 % 65 % 107.8 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2024.
In the flotation separator, reagent solutions and air pumped into the flotation cells cause the minerals to separate from the waste rock and bubble to the surface where they are collected and dried. ​ 31 Table of Contents If the bulk concentrated copper contains molybdenum, it is first processed in a molybdenum plant as described below under “Molybdenum Production.” In addition, some of the concentrates contain economic amounts of gold and silver that are recovered in the smelters and refineries. ​ COPPER SMELTING ​ Copper concentrates are transported to a smelter, where they are smelted using a furnace, converter and anode furnace to produce either blister copper (which is in the form of cakes with air pockets) or copper anodes (which are cleaned of air pockets).
In the flotation separator, reagent solutions and air pumped into the flotation cells cause the minerals to separate from the waste rock and bubble to the surface where they are collected and dried. ​ If the bulk concentrated copper contains molybdenum, it is first processed in a molybdenum plant as described below under “Molybdenum Production.” In addition, some of the concentrates contain economic amounts of gold and silver that are recovered in the smelters and refineries. ​ COPPER SMELTING ​ Copper concentrates are transported to a smelter, where they are smelted using a furnace, converter and anode furnace to produce either blister copper (which is in the form of cakes with air pockets) or copper anodes (which are cleaned of air pockets).
Mineralization at El Arco occurs in three sub-horizontal zones. ​ ​ 76 Table of Contents Mineral resources ​ The following table contains the summary of mineral resources for El Arco as of December 31, 2023, based on long-term price assumptions of $3.80 and $10.35 per pound for copper and molybdenum, respectively, and fixed over the 35-year expected mine life. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Mill plant Amount (million tonnes) Copper grades Molybdenum grades ​ Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Measured mineral resources ​ — ​ — % — % — ​ — ​ — ​ — ​ — ​ — Indicated mineral resources 826.6 ​ 0.41 % 0.008 % 0.12 ​ 1.6 ​ 7,544.9 ​ 146.5 ​ 3.23 ​ 41.88 Measured + Indicated mineral resources ​ 826.6 ​ 0.41 % 0.008 % 0.12 ​ 1.6 ​ 7,544.9 ​ 146.5 ​ 3.23 ​ 41.88 Inferred mineral resources ​ 2,344.9 ​ 0.37 % 0.006 % 0.11 ​ 1.5 ​ 19,352.3 ​ 298.2 ​ 8.05 ​ 110.89 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leach plant Amount (million tonnes) Copper grades Molybdenum grades ​ Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Measured mineral resources ​ — ​ — % — % — ​ — ​ — ​ — ​ — ​ — Indicated mineral resources 51.3 ​ 0.30 % — % — ​ — ​ 335.3 ​ — ​ — ​ — Measured + Indicated mineral resources ​ 51.3 ​ 0.30 % — % — ​ — ​ 335.3 ​ — ​ — ​ — Inferred mineral resources ​ 63.8 ​ 0.25 % — % — ​ — ​ 350.9 ​ — ​ — ​ — ​ (1) Mineral resources are reported in situ and are current as at December 31, 2023.
Mineralization at El Arco occurs in three sub-horizontal zones. ​ ​ 79 Table of Contents Mineral resources ​ The following table contains the summary of mineral resources for El Arco as of December 31, 2024, based on long-term price assumptions of $3.80 and $10.35 per pound for copper and molybdenum, respectively, and fixed over the 35-year expected mine life. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Mill plant Amount (million tonnes) Copper grades Molybdenum grades ​ Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Measured mineral resources ​ — ​ — % — % — ​ — ​ — ​ — ​ — ​ — Indicated mineral resources 826.6 ​ 0.41 % 0.008 % 0.12 ​ 1.6 ​ 7,544.9 ​ 146.5 ​ 3.23 ​ 41.88 Measured + Indicated mineral resources ​ 826.6 ​ 0.41 % 0.008 % 0.12 ​ 1.6 ​ 7,544.9 ​ 146.5 ​ 3.23 ​ 41.88 Inferred mineral resources ​ 2,344.9 ​ 0.37 % 0.006 % 0.11 ​ 1.5 ​ 19,352.3 ​ 298.2 ​ 8.05 ​ 110.89 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leach plant Amount (million tonnes) Copper grades Molybdenum grades ​ Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Measured mineral resources ​ — ​ — % — % — ​ — ​ — ​ — ​ — ​ — Indicated mineral resources 51.3 ​ 0.30 % — % — ​ — ​ 335.3 ​ — ​ — ​ — Measured + Indicated mineral resources ​ 51.3 ​ 0.30 % — % — ​ — ​ 335.3 ​ — ​ — ​ — Inferred mineral resources ​ 63.8 ​ 0.25 % — % — ​ — ​ 350.9 ​ — ​ — ​ — ​ (1) Mineral resources are reported in situ and are current as at December 31, 2024.
(2) The Taxco mine has been on strike since July 2007. (3) In some cases, real production exceeds nominal capacity due to higher grades and recovery rates. ​ OTHER PROPERTIES ​ The table below provides details on the locations and other information as of December 31, 2023 for our properties under development or exploration.
(2) The Taxco mine has been on strike since July 2007. (3) In some cases, real production exceeds nominal capacity due to higher grades and recovery rates. ​ ​ OTHER PROPERTIES ​ The table below provides details on the locations and other information as of December 31, 2024 for our properties under development or exploration.
(4) Wood is the third-party; its mining experts were responsible for the estimate. (5) There were no changes with regard to the mineral resource figures reported in 2021. ​ ​ Michiquillay Project ​ The Michiquillay project is located in the Western Cordillera of the Andes in northwest Peru, approximately 45 km from Cajamarca and 900 km northeast of Lima.
(4) Wood is a third-party firm; its mining experts were responsible for the estimate. (5) There were no changes with regard to the mineral resource figures reported in 2021. ​ Michiquillay Project ​ The Michiquillay project is located in the Western Cordillera of the Andes in northwest Peru, approximately 45 km from Cajamarca and 900 km northeast of Lima.
The crushed ore is then hoisted to the surface for processing. ​ CONCENTRATING ​ The copper ore above an established cut-off from the primary crusher or the copper, zinc and lead-bearing ore from the underground mines is transported to a concentrator plant where gyratory crushers break the ore into sizes no larger than three-quarter of an inch.
The crushed ore is then hoisted to the surface for processing. ​ CONCENTRATING ​ The copper ore above an established cut-off from the primary crusher or the copper, zinc and lead-bearing ore from the underground mines is transported to a concentrator plant where gyratory crushers break the ore into sizes no larger than three-quarters of an inch.
We also own five underground mines, three out of which currently produce zinc, copper, silver and gold. ​ The below description of the Company’s mining operations is qualified in its entirety by reference to the Technical Report Summaries included as exhibits to this report and incorporated by reference into this Item 2. ​ ​ EXTRACTION, SMELTING AND REFINING PROCESSES ​ Our operations include open-pit and underground mining, concentrating, copper smelting, copper refining, copper rod production, solvent extraction/electrowinning (“SX-EW”), zinc refining, sulfuric acid production, molybdenum concentrate production and silver and gold refining.
We also own five underground mines, three out of which currently produce zinc, copper, silver and gold. ​ The below description of the Company’s mining operations is qualified in its entirety by reference to the Technical Report Summaries included as exhibits to this report and incorporated by reference into this Item 2. ​ ​ 30 Table of Contents EXTRACTION, SMELTING AND REFINING PROCESSES ​ Our operations include open-pit and underground mining, concentrating, copper smelting, copper refining, copper rod production, solvent extraction/electrowinning (“SX-EW”), zinc refining, sulfuric acid production, molybdenum concentrate production and silver and gold refining.
Copper concentrates from Toquepala and Cuajone are transported by railroad to the smelter, 52 Table of Contents where they are smelted using an ISASMELT furnace, converters and anode furnaces to produce copper anodes with 99.7% copper. ​ At the smelter, the concentrates are mixed with flux and other material and sent to the ISASMELT furnace producing a mixture of copper matte and slag, which is tapped through a taphole to either of two rotary holding furnaces, where these smelted phases will be separated. ​ Copper matte contains approximately 63% copper.
Copper concentrates from Toquepala and Cuajone are transported by railroad to the smelter, where they are smelted using an ISASMELT furnace, converters and anode furnaces to produce copper anodes with 99.7% copper. ​ At the smelter, the concentrates are mixed with flux and other material and sent to the ISASMELT furnace producing a mixture of copper matte and slag, which is tapped through a taphole to either of two rotary holding furnaces, where these smelted phases will be separated. ​ Copper matte contains approximately 63% copper.
Sustained magmatic activity along the North American Cordillera during the late Mesozoic through Paleogene resulted in the development of numerous porphyry copper deposits. ​ The local geology of the Pilares area consists of two main lithological packges, a volcanic sequence and a set of hypabyssal bodies that intrude the volcanic sequence.
Sustained magmatic activity along the North American Cordillera during the late Mesozoic through Paleogene resulted in the development of numerous porphyry copper deposits. ​ The local geology of the Pilares area consists of two main lithological packages, a volcanic sequence and a set of hypabyssal bodies that intrude the volcanic sequence.
(6) For further information on assumptions used in preparing the estimates for the following mineral properties: El Arco, Tia Maria and El Pilar, please refer to the individual property disclosure in this Form 10-K and to the project technical report summaries prepared by qualified persons, under Exhibit 96.10, 96.3 and 96.9 respectively of Form 10-K/A, filed on March 7, 2022. ​ 41 Table of Contents Tailings Dams ​ Tailings are comprised of solid particles originating at the concentrator plants during the grinding process that, combined with water, are sent to specially built structures where they are impounded.
(4) For further information on assumptions used in preparing the estimates for the following mineral properties: El Arco, Tia Maria and El Pilar, please refer to the individual property disclosure in this Form 10-K and to the project technical report summaries prepared by qualified persons, under Exhibit 96.10, 96.3 and 96.9 respectively of Form 10-K/A, filed on March 7, 2022. ​ ​ 40 Table of Contents Tailings Dams ​ Tailings are comprised of solid particles originating at the concentrator plants during the grinding process that, combined with water, are sent to specially built structures where they are impounded.
Mineralization predominantly consists of the copper oxide mineral chrysocolla, which occurs as coatings on clasts of highly silicified breccia and as grains in the sedimentary gravel matrix. ​ ​ 74 Table of Contents Mineral resources ​ The following table contains the summary of copper mineral resources exclusive of mineral reserves for El Pilar as of December 31, 2023, based on long-term price assumptions of $3.80 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Copper Amount (million tonnes) Total copper Soluble copper ​ Contained copper (million pounds) ​ Measured mineral resources ​ 2.2 ​ 0.20 % 0.10 % 9 ​ Indicated mineral resources 81.3 ​ 0.18 % 0.08 % 317 ​ Measured + Indicated mineral resources ​ 83.4 ​ 0.18 % 0.08 % 326 ​ Inferred mineral resources ​ 88.6 ​ 0.12 % 0.06 % 234 ​ ​ (1) Mineral resources are reported in situ and effective as at December 31, 2021 as reported in the Technical Report Summary dated February 28, 2022.
Mineralization predominantly consists of the copper oxide mineral chrysocolla, which occurs as coatings on clasts of highly silicified breccia and as grains in the sedimentary gravel matrix. ​ Mineral resources ​ The following table contains the summary of copper mineral resources exclusive of mineral reserves for El Pilar as of December 31, 2024, based on long-term price assumptions of $3.80 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Copper Amount (million tonnes) Total copper Soluble copper ​ Contained copper (million pounds) ​ Measured mineral resources ​ 2.2 ​ 0.20 % 0.10 % 9 ​ Indicated mineral resources 81.3 ​ 0.18 % 0.08 % 317 ​ Measured + Indicated mineral resources ​ 83.4 ​ 0.18 % 0.08 % 326 ​ Inferred mineral resources ​ 88.6 ​ 0.12 % 0.06 % 234 ​ ​ (1) Mineral resources are reported in situ and effective as of December 31, 2021 as reported in the Technical Report Summary dated February 28, 2022.
There are an additional 371.07 hectares covered by a contract with the community of Santa Barbara that allows for any further work or exploration required. ​ Due to the variable characteristics of the ore bodies, four types of mining methods are used: shrinkage stoping, long-hole drilled open stoping, cut-and-fill stoping and horizontal bench stoping.
There are an additional 371.07 hectares covered by a contract with the community of Santa Barbara that allows for any further work or exploration required. ​ 84 Table of Contents Due to the variable characteristics of the ore bodies, four types of mining methods are used: shrinkage stoping, long-hole drilled open stoping, cut-and-fill stoping and horizontal bench stoping.
In 2019, with the complete data from the diamond drilling program, we made a geological model of the Cronos deposit using Leapfrog software. In 2020, the sample design for a metallurgical test was completed and three metallurgical samples were delivered to an external consultant. Metallurgical tests for silver recovery will continue with semi-sulfide and oxide ores.
In 2019, with the complete data from the diamond 92 Table of Contents drilling program, we made a geological model of the Cronos deposit using Leapfrog software. In 2020, the sample design for a metallurgical test was completed and three metallurgical samples were delivered to an external consultant. Metallurgical tests for silver recovery will continue with semi-sulfide and oxide ores.
Technical Studies are underway. ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Pilar as of December 31, 2023, based on long-term price assumptions of $3.30 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Copper ROM Ore (million tonnes) Copper grade Contained copper (thousand tonnes) Recovered copper (million pounds) Proven mineral reserves ​ 63 ​ 0.27 % 168 ​ 370 Probable mineral reserves 254 ​ 0.25 % 623 ​ 1,374 Total mineral reserves ​ 317 ​ 0.25 % 790 ​ 1,744 ​ (1) Mineral reserves are effective as at December 31, 2021 as reported in the Technical Report Summary dated February 28, 2022.
Technical Studies are underway. ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Pilar as of December 31, 2024, based on long-term price assumptions of $3.30 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Copper ROM Ore (million tonnes) Copper grade Contained copper (thousand tonnes) Contained copper (million pounds) Proven mineral reserves ​ 63 ​ 0.27 % 168 ​ 370 Probable mineral reserves 254 ​ 0.25 % 623 ​ 1,374 Total mineral reserves ​ 317 ​ 0.25 % 790 ​ 1,744 ​ (1) Mineral reserves are effective as of December 31, 2021 as reported in the Technical Report Summary dated February 28, 2022.
The ore contains lead and zinc concentrates, with some amounts of gold and silver. ​ There was no mine exploration drilling at Taxco during the three-year period ended December 31, 2023 due to the strikes.
The ore contains lead and zinc concentrates, with some amounts of gold and silver. ​ There was no mine exploration drilling at Taxco during the three-year period ended December 31, 2024 due to the strikes.
The plant generated its first production lot in July 2016 and fully initiated operations in November 2016. ​ SX-EW Plant ​ The Buenavista unit operates a leaching facility and three SX-EW plants. All copper ore with a grade lower than the mill cut-off grade of 0.30%, but higher than 0.15%, is delivered to the leach dumps.
The plant generated its first production lot in July 2016 and fully initiated operations in November 2016. ​ 63 Table of Contents SX-EW Plant ​ The Buenavista unit operates a leaching facility and three SX-EW plants. All copper ore with a grade lower than the mill cut-off grade of 0.30%, but higher than 0.15%, is delivered to the leach dumps.
(8) There were no changes with regard to the figures reported in 2021. ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for the La Tapada and Tia Maria deposits as of December 31, 2023, based on long-term price assumptions of $3.30 per pound, fixed over the estimated 20-year mine life: ​ ​ ​ ​ ​ ​ ​ ​ ​ La Tapada Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Proven mineral reserves ​ — ​ — % — % — Probable mineral reserves 487.6 ​ 0.41 % 69 % 4,449.2 Total mineral reserves ​ 487.6 ​ 0.41 % 69 % 4,449.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ Tia Maria Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Proven mineral reserves ​ — ​ — % — % — Probable mineral reserves 223.8 ​ 0.29 % 65 % 1,412.5 Total mineral reserves ​ 223.8 ​ 0.29 % 65 % 1,412.5 55 Table of Contents ​ (1) Mineral reserves are current as at December 31, 2023.
(8) There were no changes with regard to the figures reported in 2021. ​ ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for the La Tapada and Tia Maria deposits as of December 31, 2024, based on long-term price assumptions of $3.30 per pound, fixed over the estimated 20-year mine life: ​ ​ ​ ​ ​ ​ ​ ​ ​ La Tapada Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Proven mineral reserves ​ — ​ — % — % — Probable mineral reserves 487.6 ​ 0.41 % 69 % 4,449.2 Total mineral reserves ​ 487.6 ​ 0.41 % 69 % 4,449.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ Tia Maria Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Proven mineral reserves ​ — ​ — % — % — Probable mineral reserves 223.8 ​ 0.29 % 65 % 1,412.5 Total mineral reserves ​ 223.8 ​ 0.29 % 65 % 1,412.5 ​ (1) Mineral reserves are current as of December 31, 2024.
Alternative access is from Lima, using the Pan-American highway to Alto Camiara, and then driving for 70 km on a paved road to the Toquepala camp. The Quebrada Honda tailings storage facility (TSF) is 40 km south of the mine and is located at approximately 17° 27.724’S latitude: 70° 47.810’W longitude.
Alternative access is from Lima, using the Pan-American highway to Alto Camiara, and then driving for 70 km on a paved road to the Toquepala camp. The Quebrada Honda tailings storage 46 Table of Contents facility (TSF) is 40 km south of the mine and is located at approximately 17° 27.724’S latitude: 70° 47.810’W longitude.
The porphyry intrusions appear to be controlled by intense, concentrated extension on releasing bends, splays, overlaps in dextral fault segments and on the margins of brittle fault zones with development of multiple extensional phases in stockworks, synthetic/antithetic extensional faults and extensional duplexes. ​ Mineral resources ​ The following table contains the summary of copper mineral resources for Michiquillay as of December 31, 2023, based on long-term price assumptions of $3.80 per pound, fixed over long-term period that would be expected to be required to produce the mineral resources: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources — ​ — % — % — Measured + Indicated mineral resources ​ — ​ — % — % — Inferred mineral resources ​ 2,288.0 ​ 0.43 % 85 % 21,554.8 ​ (1) Mineral resources are reported in situ and are current as at December 31, 2023.
The porphyry intrusions appear to be controlled by intense, concentrated extension on releasing bends, splays, overlaps in dextral fault segments and on the margins of brittle fault zones with development of multiple extensional phases in stockworks, synthetic/antithetic extensional faults and extensional duplexes. ​ Mineral resources ​ The following table contains the summary of copper mineral resources for Michiquillay as of December 31, 2024, based on long-term price assumptions of $3.80 per pound, fixed over long-term period that would be expected to be required to produce the mineral resources: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Indicated mineral resources — ​ — % — % — Measured + Indicated mineral resources ​ — ​ — % — % — Inferred mineral resources ​ 2,287.9 ​ 0.43 % 85 % 21,554.8 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2024.
(7) Wood is the third-party firm; its mining experts were responsible for the estimate.
(7) Wood is a third-party firm; its mining experts were responsible for the estimate.
An airstrip with a reported runway length of 2,500 meters is located 36 kilometers north of Nacozari, less than one kilometer away from the La Caridad copper smelter and refinery. The smelter and the sulfuric acid plants, as well as the refineries and rod plant, are located approximately 24 kilometers from the mine.
An airstrip with a reported runway length of 2,500 meters is 68 Table of Contents located 36 kilometers north of Nacozari, less than one kilometer away from the La Caridad copper smelter and refinery. The smelter and the sulfuric acid plants, as well as the refineries and rod plant, are located approximately 24 kilometers from the mine.
(2) Mineral resources are reported exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. (3) Mineral resources are reported within a conceptual pit shell that is based on copper and molybdenum values only.
(2) Mineral resources are reported exclusive of mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability. (3) Mineral resources are reported within a conceptual pit shell that is based on copper and molybdenum values only.
It was discovered in 1590 but exploitation began in 1870. The main mines in Santa Eulalia are The Buena Tierra mine and the San Antonio mine. ​ Regarding its geology, the majority of mineralization corresponds to ore skarns: silicoaluminates of calcium, iron and manganese with variable quantities of lead, zinc, copper and iron sulfides.
It 88 Table of Contents was discovered in 1590 but exploitation began in 1870. The main mines in Santa Eulalia are The Buena Tierra mine and the San Antonio mine. ​ Regarding its geology, the majority of mineralization corresponds to ore skarns: silicoaluminates of calcium, iron and manganese with variable quantities of lead, zinc, copper and iron sulfides.
These include an intensive review of our procedures, as well as database verification, validation of mineral resource and reserve estimates, and the elaboration of technical report summaries. These controls and methods help to validate the reasonabless of the estimates.
These include an intensive review of our procedures, as well as database verification, validation of mineral resource and reserve estimates, and the elaboration of technical report summaries. These controls and methods help to validate the reasonableness of the estimates.
The copper 44 Table of Contents concentrate is shipped by rail to the smelter at Ilo and the molybdenum concentrate is packaged for shipment to customers. ​ Tailings are sent to thickeners to recover water.
The copper 43 Table of Contents concentrate is shipped by rail to the smelter at Ilo and the molybdenum concentrate is packaged for shipment to customers. ​ Tailings are sent to thickeners to recover water.
The plant has a daily production capacity of 65 tonnes of copper cathodes with 99.999% purity. ​ Slope stability ​ In 2004, our 15-year mine plan study for the La Caridad mine was awarded to an independent consulting firm to conduct a geotechnical evaluation.
The plant has a daily production capacity of 65 tonnes of copper cathodes with 99.999% purity. ​ ​ 70 Table of Contents Slope stability ​ In 2004, our 15-year mine plan study for the La Caridad mine was awarded to an independent consulting firm to conduct a geotechnical evaluation.
The Project centroid is at approximately 28°03’ 24.08” N; 113° 27’ 35.23” W. The center of the El Arco deposit 75 Table of Contents is located at approximately 28° 02’ 02.97” N; 113° 23’ 46.75” W. Route 1 is the only paved highway connecting the northern and southern parts of the Baja Peninsula.
The Project centroid is at approximately 28°03’ 24.08” N; 113° 27’ 35.23” W. The center of the El Arco deposit is located at approximately 28° 02’ 02.97” N; 113° 23’ 46.75” W. Route 1 is the only paved highway connecting the northern and southern parts of the Baja Peninsula.
Planned on-site infrastructure includes an open pit mine, two waste rock storage facilities, mill complex and oxide fine crushing facilities, temporary ore stockpile, heap leach facility, tailings storage facility, administration building, truck shop and warehouse, main 230 kV electrical substation and a water storage dam and reservoir. ​ We hold 20 mining concessions, covering 72,131 hectares.
Planned on-site infrastructure includes an open pit mine, two waste rock storage facilities, mill complex and oxide fine crushing facilities, temporary ore stockpile, heap leach facility, tailings storage facility, administration building, truck shop and warehouse, main 230 kV electrical substation and a water storage dam and reservoir. ​ We hold 11 mining concessions, covering 72,133 hectares.
The plant produces copper cathodes of LME grade A. ​ ​ 63 Table of Contents Slope stability ​ At the Buenavista mine, we are following the recommendations produced by a geotechnical evaluation of the design slope for the 15-year pit plan. This evaluation was prepared by an independent mine consulting firm.
The plant produces copper cathodes of LME grade A. ​ Slope stability ​ At the Buenavista mine, we are following the recommendations produced by a geotechnical evaluation of the design slope for the 15-year pit plan. This evaluation was prepared by an independent mine consulting firm.
Copper and molybdenum grades are referred to as total copper grade and total molybdenum grade, respectively. ​ 48 Table of Contents Geology ​ The Toquepala deposit is an example of a copper–molybdenum porphyry deposit.
Copper and molybdenum grades are referred to as total copper grade and total molybdenum grade, respectively. ​ 47 Table of Contents Geology ​ The Toquepala deposit is an example of a copper–molybdenum porphyry deposit.
Figures have been rounded. (2) Mineral resources are reported exclusive of mineral reserves. (3) The cut-off grade used for mineral resource estimation was 0.08% Cu. Mineral resources are constrained within a wireframe constructed at a 0.1% total copper cut-off grade.
Figures have been rounded. (2) Mineral resources are reported exclusive of mineral reserves. 54 Table of Contents (3) The cut-off grade used for mineral resource estimation was 0.08% Cu. Mineral resources are constrained within a wireframe constructed at a 0.1% total copper cut-off grade.
Tertiary and Quaternary alluvial fan and alluvial wash sediments cover the flanks of the ranges and the intervening valleys. ​ The El Pilar copper deposit occurs within unconsolidated, poorly sorted, poorly bedded, proximal facies alluvial wash deposits that are overlain by dissected younger alluvial fan deposits.
Tertiary and Quaternary alluvial fan and alluvial wash sediments cover the flanks of the ranges and the intervening valleys. ​ The El Pilar copper deposit occurs within unconsolidated, poorly sorted, poorly bedded, proximal facies alluvial wash 77 Table of Contents deposits that are overlain by dissected younger alluvial fan deposits.
In addition, 5,000 meters of core sample from the drilling program were analyzed with a hyperspectral scanner, and a study of 498 kilometers of hyperspectral imaging was conducted to 88 Table of Contents recognize the geology of the entire Chalchihuites mineral district.
In addition, 5,000 meters of core sample from the drilling program were analyzed with a hyperspectral scanner, and a study of 498 kilometers of hyperspectral imaging was conducted to recognize the geology of the entire Chalchihuites mineral district.
There are a number of vein-hosted copper–gold–hematite deposits also 54 Table of Contents associated with the corridor, outside our mineral tenure package. Alteration within the project area is associated with the two porphyry systems currently outlined.
There are a number of vein-hosted copper–gold–hematite deposits also associated with the corridor, outside our mineral tenure package. Alteration within the project area is associated with the two porphyry systems currently outlined.
The process designs were based on existing technologies and proven equipment, and the plants constructed using those designs have been operating for 47 years.
The process designs were based on existing technologies and proven equipment, and the plants constructed using those designs have been operating for 48 years.
The copper and molybdenum grade are total grade. ​ Geology ​ The Cananea mining district lies within the eastern section of the Sonora Basin and Range Province of northern Mexico. Sustained magmatic activity along the North American Cordillera during the late Mesozoic through Paleogene resulted in the development of numerous porphyry copper deposits.
The copper, zinc and molybdenum grade are total grade. ​ 62 Table of Contents Geology ​ The Cananea mining district lies within the eastern section of the Sonora Basin and Range Province of northern Mexico. Sustained magmatic activity along the North American Cordillera during the late Mesozoic through Paleogene resulted in the development of numerous porphyry copper deposits.
Value / tonne = ($0.73 * Cu Recovery * Cu Grade) – ($0.15 * Cu Recovery * Cu Grade) - $0.57 (5) For further information on assumptions used in preparing the estimates, including a detailed description of the cut-off determination, please refer to Chapter 12 of the La Caridad operations technical report summary prepared by qualified persons, under Exhibit 96.9 of the Company´s Form 10-K/A for the fiscal year ended December 31, 2021, filed on March 7, 2022.
Value / tonne = ($0.73 * Cu Recovery * Cu Grade) – ($0.15 * Cu Recovery * Cu Grade) - $0.57 (5) For further information on assumptions used in preparing the estimates, including a detailed description of the cut-off determination, please refer to Chapter 12 of the El Pilar project technical report summary prepared by qualified persons, under Exhibit 96.9 of the Company´s Form 10-K/A for the fiscal year ended December 31, 2021, filed on March 7, 2022.
Technical Studies are underway. ​ ​ El Arco Project ​ The El Arco deposit is located near the village of El Arco in Baja California, Mexico, which lies near the center of the Baja California Peninsula in the municipalities of San Quintin, Baja California and Mulegé, Baja California Sur, Mexico.
Technical Studies are underway. 78 Table of Contents El Arco Project ​ The El Arco deposit is located near the village of El Arco in Baja California, Mexico, which lies near the center of the Baja California Peninsula in the municipalities of San Quintin, Baja California and Mulegé, Baja California Sur, Mexico.
Mining, processing, and G&A costs total $63.1/t. with metal prices of $1,725/tr oz for Au, $23/tr oz for Ag, $1.04/lb for Pb, $1.32 /lb for Zn and $3.80/lb for Cu.
Mining, processing, and G&A costs total $61.16/t. with metal prices of $1,725/tr oz for Au, $23/tr oz for Ag, $1.04/lb for Pb, $1.32 /lb for Zn and $3.80/lb for Cu.
These properties are also owned and operated by SCC. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property Name ​ Location ​ Stage ​ Mineralization ​ Mineral rights and acreage Other properties in Peru ​ ​ ​ ​ ​ Tia Maria Arequipa (Peru) ​ Development Porphyry copper deposit; economic mineralization is oxide copper. ​ Consists of 57 concessions covering approximately 34,933 hectares.
These properties are also owned and operated by SCC. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property Name ​ Location ​ Stage ​ Mineralization ​ Mineral rights and acreage Other properties in Peru ​ ​ ​ ​ ​ Tia Maria Arequipa (Peru) ​ Development Porphyry copper deposit; economic mineralization is oxide copper. ​ Consists of 55 concessions covering approximately 34,790 hectares.
As of December 31, 2023, we considered $3.30 per pound of copper and $10.00 per pound of molybdenum. ​ 86 Table of Contents Our engineering department reviews reserve computations in detail on an annual basis. In addition, our engineering department reviews the computation when changes in assumptions occur.
As of December 31, 2024, we considered $3.30 per pound of copper and $10.00 per pound of molybdenum. ​ 90 Table of Contents Our engineering department reviews reserve computations in detail on an annual basis. In addition, our engineering department reviews the computation when changes in assumptions occur.
We are also conducting a geotechnical study and a diamond drilling program with an independent consulting firm in order to obtain additional geotechnical information, which will allow us to verify the slope stability for the long-term mine plan. In addition, slope monitoring continues with the SSR 160 radar. ​ In July 2020, the OMNI 505 radar began operating.
We are also conducting a geotechnical study and a diamond drilling program with an independent consulting firm in order to obtain additional geotechnical information, which will allow us to verify the slope stability for the long-term mine plan. ​ In July 2020, the OMNI 505 radar began operating.
The 32 Table of Contents purified zinc sulfide solution is treated by electrolysis to produce refined zinc and to separate silver and gold, which are recovered as concentrates. ​ SULFURIC ACID PRODUCTION ​ Sulfur dioxide gases are produced in the copper smelting and zinc roasting processes.
The purified zinc sulfide solution is treated by electrolysis to produce refined zinc and to separate silver and gold, which are recovered as concentrates. ​ SULFURIC ACID PRODUCTION ​ Sulfur dioxide gases are produced in the copper smelting and zinc roasting processes.
A low voltage but high amperage electrical current is passed through the anodes, chemical solution and cathodes to dissolve copper which is initially deposited on very thin starting copper sheets until thickness is increased to produce 53 Table of Contents high grade copper cathodes.
A low voltage but high amperage electrical current is passed through the anodes, chemical solution and cathodes to dissolve copper which is initially deposited on very thin starting copper sheets until thickness is increased to produce high grade copper cathodes.
(4) For further information on assumptions used in preparing the mineral resource estimates, for the following operations: Charcas, Santa Barbara and San Martin; please refer to their individual property disclosure in this Form 10-K and the technical report summaries prepared by qualified persons, under Exhibits 96.11, 96.12 and 96.13 respectively in this Form 10-K.
(4) For further information on assumptions used in preparing the mineral resource estimates, for the Charcas and Santa Barbara operations; please refer to their individual property disclosure in this Form 10-K and the technical report summaries prepared by qualified persons, under Exhibits 96.10 and 96.11 respectively in this Form 10-K.
Exhumation of the upper part of the Cananea minig district porphyry system resulted in the formation of a supergene enrichment and an oxidation overburden overlying the porphyry system. ​ ​ 62 Table of Contents Concentrator ​ Buenavista uses state-of-the-art computer monitoring systems at the concentrators, the crushing plant and the flotation circuit in order to coordinate inflows and optimize operations.
Exhumation of the upper part of the Cananea mining district porphyry system resulted in the formation of a supergene enrichment and an oxidation overburden overlying the porphyry system. ​ Concentrator ​ Buenavista uses state-of-the-art computer monitoring systems at the concentrators, the crushing plant and the flotation circuit in order to coordinate inflows and optimize operations.
This anodic mud is processed at a precious metal plant where selenium, silver and gold are recovered. ​ COPPER ROD PLANT ​ To produce copper rod, copper cathodes are first smelted in a furnace and then dosed in a casting machine.
This anodic mud is processed at a precious metal plant where selenium, silver and gold are recovered. ​ 31 Table of Contents COPPER ROD PLANT ​ To produce copper rod, copper cathodes are first smelted in a furnace and then dosed in a casting machine.
San Martin – SRK Consulting (U.S.), Inc. ​ El Arco project: ​ Wood Group USA Inc. ​ El Pilar project: ​ M3 Engineering & Technology Corp., Ingenieria Geomex, S.A. de C.V., and Golder Associates USA Inc. ​ Pilares project: ​ Golder Associates USA Inc. ​ 87 Table of Contents MINERAL RESERVES AND MINERAL RESOURCES INTERNAL CONTROLS DISCLOSURE ​ In 2021, we adopted the new requirements of S-K 1300.
San Martin – SRK Consulting (U.S.), Inc. ​ El Arco project: ​ Wood Group USA Inc. ​ El Pilar project: ​ M3 Engineering & Technology Corp., Ingenieria Geomex, S.A. de C.V., and WSP USA Inc. ​ ​ 91 Table of Contents MINERAL RESERVES AND MINERAL RESOURCES INTERNAL CONTROLS DISCLOSURE ​ In 2021, we adopted the new requirements of S-K 1300.
Mining, processing, and G&A costs total $67.33/t with metal prices of $1,725/tr oz for Au, $23/tr oz for Ag, $1.09/lb for Pb, $1.32 /lb for Zn and $3.80/lb for Cu.
Mining, processing, and G&A costs total $69.84/t with metal prices of $1,725/tr oz for Au, $23/tr oz for Ag, $1.09/lb for Pb, $1.32 /lb for Zn and $3.80/lb for Cu.
(7) There were no changes in mineral resources with regard to the figures reported in 2021. ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Arco as of December 31, 2023, based on long-term price assumptions of $3.30 and $9.00 per pound for copper and molybdenum, respectively, and were fixed over the 35 year expected mine life. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Probable mineral reserves Amount (million tonnes) Copper grades Molybdenum grades Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Sulfide mill ​ 1,229.5 ​ 0.40 % 0.006 % 0.14 ​ 1.8 ​ 10,822 ​ 166.7 ​ 5.6 ​ 70.5 Oxide leach 140.5 ​ 0.27 % — % — ​ — ​ 846 ​ — ​ — ​ — ​ (1) Mineral reserves are current as at December 31, 2023. 77 Table of Contents (2) The reference point for the estimate is the point of delivery to the processing facility.
(7) There were no changes in mineral resources with regard to the figures reported in 2021. ​ ​ 80 Table of Contents Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Arco as of December 31, 2024, based on long-term price assumptions of $3.30 and $9.00 per pound for copper and molybdenum, respectively, and were fixed over the 35 year expected mine life. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Probable mineral reserves Amount (million tonnes) Copper grades Molybdenum grades Gold grade (g/t) ​ Silver grade (g/t) ​ Contained copper (million pounds) Contained molybdenum (million pounds) ​ Contained gold (million ounces) ​ Contained silver (million ounces) Sulfide mill ​ 1,229.5 ​ 0.40 % 0.006 % 0.14 ​ 1.8 ​ 10,822 ​ 166.7 ​ 5.6 ​ 70.5 Oxide leach 140.5 ​ 0.27 % — % — ​ — ​ 846 ​ — ​ — ​ — ​ (1) Mineral reserves are current as of December 31, 2024.
(5) Wood is the third-party; its mining experts were responsible for the estimate.
(5) Wood is a third-party firm; its mining experts were responsible for the estimate.
(2) Mineral resources are reported exclusive of mineral reserves. (3) Metallurgical recovery assumptions (in payable concentrates) are: 33% for Gold, 82% for silver, 79% for lead, 63% for copper and 81% for zinc.
(2) Mineral resources are reported exclusive of mineral reserves. (3) Metallurgical recovery assumptions (in payable concentrates) are: 33% for Gold, 81% for silver, 79% for lead, 40% for copper and 80% for zinc.
This anodic slime is processed in the precious metal plant to produce refined silver, refined gold and commercial grade selenium. ​ The table below contains production information for 2023, 2022 and 2021 for our Ilo refinery and precious metals plants: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance 2023 - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ Refinery 2023 2022 2021 Volume % ​ Cathodes produced (kt) 289.7 289.7 260.2 (0.1) (0.0) % Average copper grade (%) 99.999 99.999 99.999 (0.000) — % Refined silver produced (000 Kg) 109.7 116.4 124.0 (6.7) (5.8) % Refined gold produced (kg) 223.1 185.8 215.8 37.3 20.1 % Commercial grade selenium produced (tons) 50.0 56.9 48.2 (6.9) (12.1) % Key: kt = thousand tonnes ​ In addition to the processing facilities, the refinery has a production control section, a laboratory that provides sample analysis throughout the Company, a maintenance department, a desalinization plant and other support facilities. ​ The industrial railroad’s main equipment includes locomotives of different types and rolling stock with different types of cars and capacities.
This anodic slime is processed in the precious metal plant to produce refined silver, refined gold and commercial grade selenium. ​ The table below contains production information for 2024, 2023 and 2022 for our Ilo refinery and precious metals plants: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance 2024 - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ Refinery 2024 2023 2022 Volume % ​ Cathodes produced (kt) 287.9 289.7 289.7 (1.8) (0.6) % Average copper grade (%) 99.998 99.999 99.999 (0.001) — % Refined silver produced (000 Kg) 126.6 109.7 116.4 16.9 15.4 % Refined gold produced (kg) 210.3 223.1 185.8 (12.8) (5.7) % Commercial grade selenium produced (tons) 52.8 50.0 56.9 2.8 5.6 % Key: kt = thousand tonnes ​ In addition to the processing facilities, the refinery has a production control section, a laboratory that provides sample analysis throughout the Company, a maintenance department, a desalinization plant and other support facilities. ​ The industrial railroad’s main equipment includes locomotives of different types and rolling stock with different types of cars and capacities.
(3) For further information on assumptions used in preparing the mineral resource estimates, for the following operations: Cuajone, Toquepala, Buenavista and La Caridad; please refer to their individual property disclosure in this Form 10-K and the technical report summaries prepared by qualified persons, under Exhibits 96.1, 96.2, 96.6 and 96.7 respectively of 2022 Form 10-K/A filed on February 28, 2023.
(3) For further information on assumptions used in preparing the mineral resource estimates, for the following operations: Cuajone, Toquepala, Buenavista and La Caridad (including Pilares); please refer to their individual property disclosure in this Form 10-K and the technical report summaries prepared by qualified persons, under Exhibits 96.1, 96.2, 96.6 and 96.7, respectively, of this Form 10-K.
Mine access will be from the Pan-American Highway, diverting off the highway to the Project access road at km 1027–1028, between Arequipa and Moquegua, approximately 17 km before the town of El Fiscal. ​ The Project covers an area of 36,604.3 hectares in 55 concessions.
Mine access will be from the Pan-American Highway, diverting off the highway to the Project access road at km 1027–1028, between Arequipa and Moquegua, approximately 17 km before the town of El Fiscal. ​ The Project covers an area of 34,789.63 hectares in 55 concessions.
There is also a calcine processing area with five leaching stages: neutral, hot acid, intermediate acid, acid, purified fourth and jarosite, as well as two stages for solution purifying. ​ The table below contains production information for 2023, 2022 and 2021 for our San Luis Potosi zinc refinery: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 - 2022 ​ ​ 2023 2022 2021 Volume % Total zinc concentrate treated (kt) 215.2 215.3 203.6 (0.1) (0.0) % Refined zinc produced (kt) 101.0 99.9 92.7 1.1 1.1 % Sulfuric acid produced (kt) 179.9 182.1 172.4 (2.2) (1.2) % Refined silver produced (kt) 13.9 18.9 19.1 (5.0) (26.5) % Refined gold produced (k) 21.7 21.5 20.5 0.2 0.9 % Refined cadmium produced (kt) 0.5 0.6 0.5 (0.1) (15.0) % Average refinery recovery (%) 92.2 93.1 91.9 (0.9) (1.0) % kt = thousand tonnes 85 Table of Contents MINERAL RESOURCES AND RESERVES ​ Mineral resources are concentrations or occurrences of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
There is also a calcine processing area with five leaching stages: neutral, hot acid, intermediate acid, acid, purified fourth and jarosite, as well as two stages for solution purifying. ​ The table below contains production information for 2024, 2023 and 2022 for our San Luis Potosi zinc refinery: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 - 2023 ​ ​ 2024 2023 2022 Volume % Total zinc concentrate treated (kt) 214.1 215.2 215.3 (1.1) (0.5) % Refined zinc produced (kt) 98.8 101.0 99.9 (2.2) (2.2) % Sulfuric acid produced (kt) 187.7 179.9 182.1 7.8 4.3 % Refined silver produced (kt) 16.8 13.9 18.9 2.9 20.9 % Refined gold produced (k) 22.2 21.7 21.5 0.5 2.3 % Refined cadmium produced (kt) 0.6 0.5 0.6 0.1 17.6 % Average refinery recovery (%) 92.2 92.2 93.1 — — % kt = thousand tonnes 89 Table of Contents MINERAL RESOURCES AND RESERVES ​ Mineral resources are concentrations or occurrences of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
(3) For further information on assumptions used in preparing the mineral reserve estimates, for the following mineral properties: Cuajone, Toquepala, Buenavista and La Caridad, please refer to the individual property disclosure in this Form 10-K and to the technical report summaries prepared by qualified persons, under Exhibits 96.1, 96.2, 96.6 and 96.7 respectively of 2022 Form 10-K/A filed on February 28, 2023.
(3) For further information on assumptions used in preparing the mineral reserve estimates, for the following mineral properties: Cuajone, Toquepala, Buenavista and La Caridad (including Pilares), please refer to the individual property disclosure in this Form 10-K and to the technical report summaries prepared by qualified persons, under Exhibits 96.1, 96.2, 96.6 and 96.7 respectively of this Form 10-K.
The approximate cut-off grade for the zinc concentrator (once it has been constructed) was estimated to be 0.22% copper equivalent. ​ As part of the expansion program for this unit, in 2013 we completed the construction of the first molybdenum plant with an annual production capacity of 2,000 tonnes of molybdenum contained in concentrate.
The approximate cut-off grade for the zinc concentrator is estimated to be 0.22% copper equivalent. ​ As part of the expansion program for this unit, in 2013 we completed the construction of the first molybdenum plant with an annual production capacity of 2,000 tonnes of molybdenum contained in concentrate.
(6) Wood is the third-party; its mining experts were responsible for the estimate. (7) There were no changes with regard to the mineral reserves figures reported in 2021. ​ ​ Los Chancas Project ​ The Los Chancas project is located in the Andes Range in southern Peru.
(6) Wood is a third-party firm; its mining experts were responsible for the estimate. (7) There were no changes with regard to the mineral reserves figures reported in 2021. ​ ​ ​ 55 Table of Contents Los Chancas Project ​ The Los Chancas project is located in the Andes Range in southern Peru.
M etallurgical tests were concluded and confirmed that recoveries in sulphide flotation are good for Zn, Cu, Pb and Ag; however it was not possible to separate lead from the copper concentrate. Dynamic acid leaching tests were performed for oxides and mixed oxides. The results were positive.
M etallurgical tests were concluded and confirmed that recoveries in sulphide flotation are good for Zn, Cu, Pb and Ag; however it was not possible to separate lead from the copper concentrate. Dynamic acid leaching tests were performed for oxides and mixed oxides. The results were positive. In 2024, Cu-Pb concentrate separation tests using microbubble technology were carried out.
The lime plant has a capacity of 340 tonnes of finished product per day. ​ The mineral reserves estimated for La Caridad were estimated utilizing an economic cut-off to assign material to either the concentrator or leach pad.
The molybdenum recovery plant has a capacity of 2,000 tonnes per day of copper-molybdenum concentrates. The lime plant has a capacity of 340 tonnes of finished product per day. ​ The mineral reserves estimated for La Caridad were estimated utilizing an economic cut-off to assign material to either the concentrator or leach pad.
(7) There were no changes in reserves with regard to 2021’s figures.
(6) There were no changes in reserves with regard to 2021’s figures.
Additionally, a spur railway runs from the Toquepala operations to the Cuajone operations. ​ The Cuajone operations are owned and operated by SPCC Peru Branch and contain a single mining concession, “Acumulacion Cuajone”, which covers an area of 15,024.5 hectares.
Additionally, a spur railway runs from the Toquepala operations to the Cuajone operations. ​ The Cuajone operations are owned and operated by SPCC Peru Branch and contain a single mining concession, “Acumulacion Cuajone”, which covers an area of 14,875.66 hectares.
In 2007, we completed a major modernization of the smelter. The nominal installed capacity of the smelter is 1,200,000 tonnes of copper concentrate per year.
In 2007, we completed a major modernization of the smelter. The nominal installed capacity of the smelter is 1,376,050 tonnes of copper concentrate per year.
The estimate was based on the long- range schedule, inclusive of processing costs and transport streams and based on a Cu price of $3.30/lb, Mo price of $10.00/lb and Zn price of $1.15/lb. (5) It was assumed that ore with a solubility index greater than 0.8 had been sent to the leach pad.
The estimate was based on the long- range schedule, inclusive of processing costs and transport streams and based on a Cu price of $3.30/lb, Mo price of $10.00/lb and Zn price of $1.15/lb. (5) Ore with a solubility index greater than 0.3 could be sent to the leach pad.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe chart below analyzes the total return on SCC’s common stock for the period commencing December 31, 2018 and ending December 31, 2023, compared to the total return of the S&P 500 and the S&P Metals and Mining Select Industry Index for the same five-year period. ​ Comparison of Five Year Cumulative Total Return * SCC Stock, S&P 500 Index and S&P Metals and Mining Select Industry Index ** ​ ​ * Total return assumes reinvestment of dividends ** The comparison assumes $100 invested on December 31, 2017 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Return per Year ​ 2019 2020 2021 2022 2023 SCC 44.6 % 59.0 % (0.4) % 3.5 % 49.1 % S&P 500 28.9 % 16.3 % 26.9 % (19.4) % 24.2 % S&P M + MS 13.0 % 14.4 % 34.0 % 11.5 % 20.1 % ​ The foregoing Performance Graph and related information shall not be deemed “soliciting material” or “filed” with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing. ​ 92 Table of Contents
Biggest changeThe chart below analyzes the total return on SCC’s common stock for the period commencing December 31, 2019 and ending December 31, 2024, compared to the total return of the S&P 500 and the S&P Metals and Mining Select Industry Index for the same five-year period. ​ Comparison of Five Year Cumulative Total Return * SCC Stock, S&P 500 Index and S&P Metals and Mining Select Industry Index ** ​ * Total return assumes reinvestment of dividends ** The comparison assumes $100 invested on December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Return per Year ​ 2020 2021 2022 2023 2024 SCC 56.8 % (0.3) % 3.5 % 49.1 % 11.2 % S&P 500 16.3 % 26.9 % (19.4) % 24.2 % 23.3 % S&P M + MS 14.4 % 34.0 % 11.5 % 20.1 % (5.2) % ​ The foregoing Performance Graph and related information shall not be deemed “soliciting material” or “filed” with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing. ​ 96 Table of Contents
This repurchase program has no expiration date and may be modified or discontinued at any time. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Maximum ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Shares that ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Purchased ​ May Yet Be ​ ​ ​ ​ ​ ​ ​ Number of ​ Average ​ as Part of ​ Purchased ​ ​ ​ ​ ​ ​ ​ Shares ​ Price Paid ​ Publicly ​ Under the ​ Total Cost From ​ To ​ Purchased ​ per Share ​ Announced Plan ​ Plan @ $86.07(1) ​ ($ in millions) 2008 2012 46,914,486 ​ $ 18.72 46,914,486 ​ 878.1 2013: 10,245,000 ​ 27.47 57,159,486 ​ 281.4 2014: 22,711,428 ​ 30.06 79,870,914 ​ 682.8 2015: 36,689,052 ​ 27.38 116,559,966 ​ 1,004.4 2016: 2,937,801 ​ 24.42 119,497,767 ​ 71.7 Total purchased 119,497,767 ​ $ 24.42 948,453 ​ $ 2,918.4 (1) NYSE closing price of SCC common shares at December 31, 2023. ​ The SCC share repurchase program has registered no activity since the third quarter of 2016.
This repurchase program has no expiration date and may be modified or discontinued at any time. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Maximum ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Shares that ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Purchased ​ May Yet Be ​ ​ ​ ​ ​ ​ ​ Number of ​ Average ​ as Part of ​ Purchased ​ ​ ​ ​ ​ ​ ​ Shares ​ Price Paid ​ Publicly ​ Under the ​ Total Cost From ​ To ​ Purchased ​ per Share ​ Announced Plan ​ Plan @ $91.13(1) ​ ($ in millions) 2008 2012 46,914,486 ​ $ 18.72 46,914,486 ​ 878.1 2013: 10,245,000 ​ 27.47 57,159,486 ​ 281.4 2014: 22,711,428 ​ 30.06 79,870,914 ​ 682.8 2015: 36,689,052 ​ 27.38 116,559,966 ​ 1,004.4 2016: 2,937,801 ​ 24.42 119,497,767 ​ 71.7 Total purchased 119,497,767 ​ $ 24.42 ​ ​ $ 2,918.4 (1) NYSE closing price of SCC common shares at December 31, 2024. ​ The SCC share repurchase program has registered no activity since the third quarter of 2016.
The NYSE closing price of SCC common shares at December 31, 2023 was $86.07 and the maximum number of shares that the Company could purchase at that price was 0.9 million. ​ As a result of the repurchase of shares of SCC’s common stock, Grupo Mexico’s direct and indirect ownership was 88.9% as of December 31, 2023 and 2022. 91 Table of Contents SHAREHOLDER RETURN PERFORMANCE PRESENTATION ​ Set forth below is a line graph comparing the yearly change in the cumulative total returns on the Company’s common stock against cumulative total return on the S&P 500 Stock Index and the S&P Metals and Mining Select Industry Index for the five-year period ending December 31, 2023.
The NYSE closing price of SCC common shares as of December 31, 2024 was $91.13 and the maximum number of shares that the Company could purchase at that price was 0.9 million. ​ As a result of the repurchase of shares of SCC’s common stock, Grupo Mexico’s direct and indirect ownership was 88.9% as of December 31, 2024 and 2023. 95 Table of Contents SHAREHOLDER RETURN PERFORMANCE PRESENTATION ​ Set forth below is a line graph comparing the yearly change in the cumulative total returns on the Company’s common stock against cumulative total return on the S&P 500 Stock Index and the S&P Metals and Mining Select Industry Index for the five-year period ending December 31, 2024.
At December 31, 2023, there were 842 holders of record of our common stock. ​ DIRECTORS’ STOCK AWARD PLAN: ​ The following table contains certain information related to our shares held as treasury stock for the Directors’ stock award plan as of December 31, 2023: ​ Equity Compensation Plan Information ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of securities to be Weighted-average Number of securities ​ ​ issued upon exercise of ​ exercise price of ​ remaining available Plan Category ​ outstanding options ​ outstanding options ​ for future issuance Directors’ stock award plan N/A N/A 171,200 ​ For additional information see Note 14—“Stockholders Equity—Directors’ Stock Award Plan.” ​ SCC COMMON STOCK REPURCHASE PLAN: ​ In 2008, our BOD authorized a $500 million share repurchase program that has since been increased by the BOD and is currently authorized to $3 billion.
As of December 31, 2024, 840 holders of our common stock were on record. ​ DIRECTORS’ STOCK AWARD PLAN: ​ The following table contains certain information related to our shares held as treasury stock for the Directors’ stock award plan as of December 31, 2024: ​ Equity Compensation Plan Information ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of securities to be Weighted-average Number of securities ​ ​ issued upon exercise of ​ exercise price of ​ remaining available Plan Category ​ outstanding options ​ outstanding options ​ for future issuance Directors’ stock award plan N/A N/A 155,600 ​ For additional information see Note 14—“Stockholders Equity—Directors’ Stock Award Plan.” ​ SCC COMMON STOCK REPURCHASE PLAN: ​ In 2008, our BOD authorized a $500 million share repurchase program that has since been increased by the BOD and is currently authorized to $3 billion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAt 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance Copper Sales (million pounds) ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Refined (including SX‑EW) ​ 1,064.1 ​ 1,046.7 ​ 893.4 ​ 17.4 153.3 ​ Rod ​ 338.0 ​ 411.5 ​ 470.3 ​ (73.5) (58.8) ​ Concentrates and other ​ 559.7 ​ 462.2 ​ 689.2 ​ 97.5 (227.0) ​ Total ​ 1,961.8 ​ 1,920.4 ​ 2,052.9 ​ 41.4 (132.5) ​ ​ The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ Copper Sales by product type 2023 2022 2021 Refined (including SX‑EW) 54.2 % 54.5 % 43.5 % Rod 17.2 % 21.4 % 22.9 % Concentrates and other 28.5 % 24.1 % 33.6 % Total 100.0 % 100.0 % 100.0 % ​ ​ OPERATING COSTS AND EXPENSES ​ The table below summarizes the production cost structure by major components for the three years ended 2023 as a percentage of total production cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ 2023 2022 ​ 2021 ​ Power 13.3 % 16.7 % 17.1 % Labor 11.6 % 10.8 % 13.4 % Fuel 15.7 % 16.8 % 14.4 % Maintenance 21.4 % 19.6 % 20.1 % Operating material 19.6 % 20.1 % 17.2 % Other 18.4 % 16.0 % 17.8 % Total 100.0 % 100.0 % 100.0 % ​ 109 Table of Contents 2023-2022: Operating costs and expenses in 2023 increased $91.4 million, compared to 2022, primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating cost and expenses for 2022 ($ in millions) $ 5,612.1 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 159.5 ​ ​ - Repairing materials, principally heavy equipment spare parts 126.6 ​ ​ ​ ​ - Labor costs 62.7 ​ ​ ​ ​ - Operating contractors 60.6 ​ ​ ​ ​ - Inventory variance 36.8 ​ ​ ​ ​ - Sales expenses 36.0 ​ ​ ​ ​ - Fuel 27.7 ​ ​ ​ ​ - Water 26.3 ​ ​ ​ ​ - Workers participation (123.1) ​ ​ ​ ​ - Energy costs (73.2) ​ ​ ​ ​ - Natural gas (17.6) ​ ​ ​ ​ - Other net (3.3) ​ ​ ​ • Increase in depreciation, amortization and depletion expense. 37.3 ​ • Increase in exploration expense. ​ 13.3 ​ • Increase in selling, general and administrative expenses. ​ 2.2 ​ Less: ​ ​ ​ ​ • Decrease in volume and cost of metals purchased from third parties. ​ ​ (120.9) ​ Operating cost and expenses for 2023 ($ in millions) ​ $ 5,703.5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance NON ‑ OPERATING INCOME (EXPENSE) 2023 2022 2021 2023 - 2022 2022 - 2021 Interest expense ​ $ (376.3) ​ $ (387.1) ​ $ (387.9) ​ $ 10.8 ​ $ 0.8 Capitalized interest ​ 49.6 ​ 47.0 ​ 30.8 ​ 2.6 ​ 16.2 Other income (expense) ​ 3.6 ​ 117.1 ​ (18.4) ​ (113.5) ​ 135.5 Interest income ​ 86.6 ​ 35.0 ​ 7.2 ​ 51.6 ​ 27.8 Total non‑operating income (expense) ​ $ (236.5) ​ $ (188.0) ​ $ (368.3) ​ $ (48.5) ​ $ 180.3 ​ 2023-2022 : Non-operating income and expense were a net expense of $236.5 million in 2023, compared to a net expense of $188.0 million in 2022.
Biggest changeAt 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance Copper Sales (million pounds) ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Refined (including SX‑EW) ​ 1,053.3 ​ 1,064.1 ​ 1,046.7 ​ (10.8) 17.4 ​ Rod ​ 337.8 ​ 338.0 ​ 411.5 ​ (0.2) (73.5) ​ Concentrates and other ​ 678.0 ​ 559.7 ​ 462.2 ​ 118.3 97.5 ​ Total ​ 2,069.1 ​ 1,961.8 ​ 1,920.4 ​ 107.3 41.4 ​ ​ The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ Copper Sales by product type 2024 2023 2022 Refined (including SX‑EW) 50.9 % 54.2 % 54.5 % Rod 16.3 % 17.2 % 21.4 % Concentrates and other 32.8 % 28.5 % 24.1 % Total 100.0 % 100.0 % 100.0 % ​ ​ OPERATING COSTS AND EXPENSES ​ The table below summarizes the production cost structure by major components for the three years ended December 31 2024, 2023 and 2022 as a percentage of total production cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ 2024 2023 ​ 2022 ​ Power 11.0 % 13.3 % 16.7 % Labor 13.3 % 11.6 % 10.8 % Fuel 15.4 % 15.7 % 16.8 % Maintenance 23.4 % 21.4 % 19.6 % Operating material 19.0 % 19.6 % 20.1 % Other 17.9 % 18.4 % 16.0 % Total 100.0 % 100.0 % 100.0 % ​ 113 Table of Contents 2024-2023: Operating costs and expenses were $5,878.7 million in 2024 compared to $5,703.5 million in the same period of 2023.
For information regarding our capital expenditure programs, please see the discussion under the caption “Capital Investment Program” under this Item 7. ​ ​ CONTRACTUAL AND OTHER OBLIGATIONS ​ As of December 31, 2023, our most significant contractual obligations include interest and principal on debt, workers’ participation, pension and post-retirement obligations, payments for operating leases, asset retirement obligations, and commitments for purchasing energy and for capital investment projects. ​ Interest on debt is calculated at rates in effect at December 31, 2023.
For information regarding our capital expenditure programs, please see the discussion under the caption “Capital Investment Program” under this Item 7. ​ CONTRACTUAL AND OTHER OBLIGATIONS ​ As of December 31, 2024, our most significant contractual obligations include interest and principal on debt, workers’ participation, pension and post-retirement obligations, payments for operating leases, asset retirement obligations, and commitments for purchasing energy and for capital investment projects. ​ Interest on debt is calculated at rates in effect at December 31, 2024.
We believe these adjustments will allow our management and stakeholders to see a presentation of 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 believe these adjustments will allow our management and stakeholders to see a presentation of our controllable cash cost, which we believe is one of the lowest of all copper-producing companies of similar size. ​ 100 Table of Contents 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.
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 to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually.
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.
Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. ​ Asset retirement obligations are further discussed in Note 10 “Asset Retirement Obligation” to the consolidated financial statements included herein. ​ Revenue Recognition : For certain of our sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and in a few cases, in a period that can exceed three months.
Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. ​ Asset retirement obligations are further discussed in Note 10 “Asset Retirement Obligation” to the consolidated financial statements included herein. ​ 110 Table of Contents Revenue Recognition : For certain of our sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and in a few cases, in a period that can exceed three months.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ EXECUTIVE SUMMARY ​ This Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to and should be read together with our Audited Consolidated Financial Statements as of and for each of the years in the three-year period ended December 31, 2023.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ EXECUTIVE SUMMARY ​ This Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to and should be read together with our Audited Consolidated Financial Statements as of and for each of the years in the three-year period ended December 31, 2024.
See Item 1 “Business—Cautionary Statement.” ​ For details on the discussion on variations between 2022 and 2021, please see Management´s Discussion and Analysis of Financial Condition and Results of Operations, on the 2022 Form 10-K. ​ EXECUTIVE OVERVIEW ​ Business: Our business is primarily the production and sale of copper.
See Item 1 “Business—Cautionary Statement.” ​ For details on the discussion on variations between 2023 and 2022, please see Management´s Discussion and Analysis of Financial Condition and Results of Operations, on the 2023 Form 10-K. ​ EXECUTIVE OVERVIEW ​ Business: Our business is primarily the production and sale of copper.
To fulfil this commitment, which is outlined in the Company’s Environmental Policy, we have developed action plans for biodiversity management that are aligned with the guide for Good Practice Guidance for Mining and Biodiversity published by the International Council on Mining and Metals (ICMM).
To fulfill this commitment, which is outlined in the Company’s Environmental Policy, we have developed action plans for biodiversity management that are aligned with the Good Practice Guidance for Mining and Biodiversity guide published by the International Council on Mining and Metals (ICMM).
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 119.
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 123.
Michiquillay is a world class mining project with inferred mineral resources of 2,288 million tonnes with 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) for an initial mine life of more than 25 years and at a competitive cash-cost.
Michiquillay is a world-class greenfield mining project with inferred mineral resources of 2,288 million tons and 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.
As all our debt is at fixed rates, future expenditures will not change due to rate changes. Please refer to Note 11 “Financing” of the consolidated financial statements for a description of our long-term debt arrangements and credit facilities. ​ Workers’ participation is currently calculated based on Peruvian Branch and Mexican pre-tax earnings.
As all our debt is at fixed rates, future expenditures will not change due to rate changes. Please refer to Note 11 “Financing” of the consolidated financial statements for a description of our long-term debt arrangements and credit facilities. ​ 121 Table of Contents Workers’ participation is currently calculated based on Peruvian Branch and Mexican pre-tax earnings.
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 96 Table of Contents charge.
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 continuously evaluate new projects on the basis of our long-term corporate objectives, strategic and operating fit, expected return on investment, required investment, estimated production, estimated cash-flow profile, social and environmental considerations, among other 100 Table of Contents factors.
We continuously evaluate new projects on the basis of our long-term corporate objectives, strategic and operating fit, expected return on investment, required investment, estimated production, estimated cash-flow profile, social and environmental considerations, among other factors.
See Note 13 “Commitment and Contingencies—Other commitments”. ​ Our long-term estimated power costs are subject to change as energy generation costs change and our forecasted power requirements through the life of the agreements change. In addition, as of December 31, 2023, the Company has committed approximately $348.2 million for the development of its capital investment projects.
See Note 13 “Commitment and Contingencies—Other commitments”. ​ Our long-term estimated power costs are subject to change as energy generation costs change and our forecasted power requirements through the life of the agreements change. In addition, as of December 31, 2024, the Company has committed approximately $236.2 million for the development of its capital investment projects.
We are also committed to preserving and improving the environment by implementing actions to generate a positive impact on biodiversity through our operations.
We are also committed to preserving the environment by implementing actions to generate a positive impact on biodiversity through our operations.
Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation 106 Table of Contents and remediation work required to be performed by us.
Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required to be performed by us.
For instance, during the period from January 2014 through December 2023, the London Metal Exchange (LME) copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of $4.87 per pound in 2022, and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.30 per pound in 2015 to a high of $38.50 per pound in 2023.
For instance, during the period from January 2015 through December 2024, the London Metal Exchange (LME) copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of $4.92 per pound in 2024, and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.30 per pound in 2015 to a high of $38.50 per pound in 2023.
The results of our impairment sensitivity analysis, which included a stress test using a copper price assumption of $2.00 per pound and a molybdenum price assumption of $4.00 per pound, showed projected discounted cash flows in excess of the carrying amounts of long-lived assets by margins ranging from 1.7 to 4.3 times such carrying amount. ​ We use an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life to measure whether the assets are recoverable and measure any impairment compared to fair value. ​ 107 Table of Contents Leases : The Company has concluded that all of its existing lease contracts are operating lease contracts.
The results of our impairment sensitivity analysis, which included a stress test using a copper price assumption of $2.80 per pound and a molybdenum price assumption of $6.00 per pound, showed projected discounted cash flows in excess of the carrying amounts of long-lived assets by margins ranging from 2.1 to 6.8 times such carrying amount. ​ We use an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life to measure whether the assets are recoverable and measure any impairment compared to fair value. ​ Leases : The Company has concluded that all of its existing lease contracts are operating lease contracts.
Please refer to Note 9 “Leases” of the consolidated financial statements. 117 Table of Contents Pension and post retirement obligations include the benefits expected to be paid under our pension and post-retirement benefit plans.
Please refer to Note 9 “Leases” of the consolidated financial statements. ​ Pension and post retirement obligations include the benefits expected to be paid under our pension and post-retirement benefit plans.
Working together with the communities, we have the opportunity to collaborate and forge a path based on common objectives for social and 103 Table of Contents economic development as we work to support the United Nations’ Sustainable Development Goals.
Working together with the communities, we have the opportunity to collaborate and forge a path based on common objectives for social and economic development as we work to support the United Nations’ Sustainable Development Goals.
We are currently implementing a Diversity and Inclusion Strategic Plan, which focuses primarily on capacity building; communication campaigns; revision of human resources processes to promote greater participation and retention of women; and physical changes to working areas to address women’s needs. ​ CRITICAL ACCOUNTING POLICIES AND ESTIMATES ​ Our significant accounting policies are discussed in Note 2 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8 “Financial Statements and Supplementary Data” of this Annual Report. ​ 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.
We are currently implementing a Strategic Workplace Plan, which focuses primarily on capacity building; communication campaigns; revision of human resources processes to promote greater inclusivity and equity; and physical changes to working areas to address women’s needs. ​ 109 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES ​ Our significant accounting policies are discussed in Note 2 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8 “Financial Statements and Supplementary Data” of this Annual Report. ​ 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.
We are committed to continuously improving our environmental performance and to promoting the adoption of the best environmental practices at our operations to contribute to the transition to a green economy. To this end, we have certified all our operations environmental management systems in ISO 14001.
We are committed to continuously improving our environmental performance and to promoting the adoption of the best environmental practices at our operations to contribute to the transition to a green economy. To this end, we have achieved ISO 14001 certification for the environmental management systems at all our operations.
In the Mining and Infrastructure divisions, this process has three main components: 1)Participatory Social Diagnosis to allow the communities to voice their concerns regarding human rights, 2) Social Management Plans that define actions to address those concerns, and 3)the Community Care Service (SAC), a tool that was designed with the advice of the United Nations High Commissioner for Human Rights Mexico Office and allows the community to immediately communicate its concerns to the Company. ​ SCC also has a human rights’ due diligence process in place to protect the rights of employees (both the Company’s and those of contractors).
In the Mining and Infrastructure divisions, this process has three main components: 1) Participatory Social Diagnosis to allow communities to voice their concerns regarding human rights, 2) Social Management Plans that define actions to address those concerns, and 3) Service and Attention Center (SAC), a tool that was designed with guidance from the United Nations High Commissioner for Human Rights Mexico Office and that allows communities to immediately communicate their concerns with us. ​ SCC also has a human rights due diligence process in place to protect the rights of employees (both the Company’s and those of contractors).
In addition, we recorded a 97% increase in year-to-year investment in social infrastructure. In Mexico $35.9 million was allocated to these efforts, including a project that was focused on improving water infrastructure for the communities of Cananea and Nacozari for the benefit of 54,000 people.
In addition, we recorded a 97% increase in year-to-year investment in social infrastructure. In Mexico, we allocated $6.6 million to these efforts, including a project focused on improving water infrastructure for 54,000 people in the communities of Cananea and Nacozari.
In addition, the market prices of certain metals have on occasion been subject to rapid short-term changes due to economic concerns and financial investments. ​ For 2024, assuming that expected metal production and sales are achieved; 2023 tax rates are unchanged and giving no effects relative to potential hedging programs, metal price sensitivity factors indicate the following change in estimated annual 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) ​ $ 122.0 ​ $ 34.0 ​ $ 21.3 ​ $ 13.3 ​ Business Segments: We view our Company as having three reportable segments and manage it on the basis of these segments.
In addition, the market prices of certain metals have on occasion been subject to rapid short-term changes due to economic concerns and financial investments. ​ For 2025, assuming that expected metal production and sales are achieved; 2024 tax rates are unchanged and giving no effects relative to potential cost changes, metal price sensitivity factors indicate the following change in estimated annual 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) ​ $ 125.5 ​ $ 35.0 ​ $ 23.9 ​ $ 14.0 ​ Business Segments: We view our Company as having three reportable segments and manage it on the basis of these segments.
In our 2023 Sustainability Development Report, we will include Scope 3 targets and preliminary capital allocation figures on decarbonization projects. The report can be accessed at https://www.gmexico.com/en/Pages/development.aspx. We are referring our investors to Grupo Mexico's internet site for details on the aforementioned initiatives for informative purposes only.
In our 2023 Sustainability Development Report, we included Scope 3 targets and preliminary capital allocation figures on decarbonization projects. The report can be accessed at https://www.gmexico.com/en/Pages/development.aspx. We are referring our investors to Grupo Mexico's website for details on these initiatives for informative purposes only.
With a design capacity of 10,000 tons/day and an investment to date of $27 million, this dam filter is the largest tailings processing unit of its kind in the market. ​ Furthermore, in order to reduce our dependency on underground water, the Company is working to identify new sources of water to use in its processes, including recycling wastewater from urban areas.
With a design capacity of 10,000 tons/day and an investment to date of $27 million, this dam filter is the largest tailings processing unit of its kind in the market ​ Furthermore, to reduce our dependency on underground water, we are exploring new water sources for our processes, including recycling wastewater from urban areas.
We believe these plans further improve the Company’s capacity to implement effective mitigation measures and contribute to the preservation and improvement of the environment at our operations. ​ Regarding our environmental risk management, we are aligning our tailings systems to the recently published ICMM's (International Council on Mining and Metals) Global Standard on Tailings Management and have improved our governance framework by implementing a brand-new Internal Committee for Review of Tailings Systems to bolster safety management and communication between operations and top management. ​ With the purpose of increasing our water efficiency, we are currently recovering about six thousand cubic meters of water per day through the new tailings filtering plant in Quebrada Honda, Peru, which is equivalent to 0.6 m3 of water per ton of tailings.
We believe these plans further improve the Company’s capacity to implement effective mitigation measures and contribute to the preservation and improvement of the environment at our operations. ​ Regarding our environmental risk management, we are aligning our tailings systems to the ICMM’s Global Standard on Tailings Management and have improved our governance framework by implementing an Internal Committee for Review of Tailings Systems to bolster safety management and communication between operations and top management. ​ To increase our water efficiency, we are currently recovering about six thousand cubic meters of water per day through the new tailings filtering plant in Quebrada Honda, Peru, equivalent to 0.6 m3 of water per ton of tailings.
In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments. ​ 98 Table of Contents The table below contains information on our capital investments for the three years ended December 31, 2023 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Peruvian projects: ​ ​ ​ ​ ​ ​ ​ ​ ​ Toquepala expansion project ​ $ 5.8 ​ $ 6.6 ​ $ 21.8 Quebrada Honda dam expansion ​ 8.4 ​ 20.3 ​ 86.3 Relocation of facilities at Toquepala ​ 0.9 ​ 6.3 ​ 23.8 HPGR optimization at Cuajone ​ ​ 54.2 ​ ​ 35.4 ​ ​ 0.9 Fresh water pipeline replacement at Suches ​ 0.9 ​ 10.6 ​ 6.2 Tailings disposal—Quebrada Honda dam ​ (2.2) ​ 1.5 ​ 0.8 Maintenance workshops at Toquepala concentrator ​ 9.7 ​ ​ 21.9 ​ ​ 6.3 Quebrada Honda filter plant ​ ​ 16.1 ​ ​ 18.3 ​ ​ 2.1 Maintenance workshops at Cuajone ​ ​ 17.2 ​ ​ 4.2 ​ ​ 0.9 Other projects ​ 15.6 ​ ​ 25.4 ​ ​ 25.3 Sub‑total projects ​ 126.6 ​ 150.5 ​ 174.4 Maintenance and replacement ​ 193.1 ​ 196.3 ​ 150.6 Net change in capital expenditures incurred but not yet paid ​ 3.0 ​ 8.2 ​ (4.1) Total Peruvian expenditures ​ 322.7 ​ 355.0 ​ 320.9 Mexican projects: ​ ​ ​ ​ ​ ​ ​ New Buenavista concentrator ​ 12.3 ​ 15.0 ​ 18.9 Buenavista Zinc project ​ ​ 66.5 ​ ​ 99.8 ​ ​ 126.1 Pilares Mine ​ ​ 33.5 ​ ​ 29.6 ​ ​ 30.9 Expansion of mine pit at Buenavista ​ 17.3 ​ 11.3 ​ 24.6 Lime plant - Sonora ​ ​ 9.7 ​ ​ 19.3 ​ ​ 30.7 MexCobre - Bella Union Mine ​ ​ 56.4 ​ ​ — ​ ​ — IMMSA - Mine development ​ ​ 39.4 ​ ​ 33.6 ​ ​ 11.0 Project MexArco ​ ​ 23.4 ​ ​ 22.6 ​ ​ 8.6 Shooting rehabilitation San Fernando ​ ​ 8.3 ​ ​ 7.2 ​ ​ 5.2 New tailing disposal deposit at Buenavista mine ​ 65.6 ​ 27.3 ​ 59.7 Over elevation of tailings deposit N° 7 at La Caridad mine ​ 5.8 ​ 2.8 ​ 1.4 San Martin mine restoration ​ ​ 0.7 ​ ​ 1.6 ​ ​ 20.7 Other projects ​ 112.1 ​ 113.3 ​ 37.9 Sub‑total projects ​ 451.0 ​ 383.4 ​ 375.7 Maintenance and replacement ​ 235.4 ​ 212.2 ​ 184.0 Net change in capital expenditures incurred but not yet paid ​ (0.5) ​ (2.1) ​ 11.7 Total Mexican expenditures ​ 685.9 ​ 593.5 ​ 571.4 Total capital investments ​ $ 1,008.6 ​ $ 948.5 ​ $ 892.3 ​ In 2024, we plan to invest $1,103.7 million in capital projects.
In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments. ​ 102 Table of Contents The table below contains information on our capital investments for the three years ended December 31, 2024 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Peruvian projects: ​ ​ ​ ​ ​ ​ ​ ​ ​ Toquepala expansion project ​ $ (2.4) ​ $ 5.8 ​ $ 6.6 Tia Maria project ​ ​ 14.8 ​ ​ — ​ ​ (2.3) Quebrada Honda dam expansion ​ 2.0 ​ 8.4 ​ 20.3 Relocation of facilities at Toquepala ​ 0.0 ​ 0.9 ​ 6.3 HPGR optimization at Cuajone ​ ​ 18.2 ​ ​ 54.2 ​ ​ 35.4 Fresh water pipeline replacement at Suches ​ 0.6 ​ 0.9 ​ 10.6 Tailings disposal—Quebrada Honda dam ​ — ​ (2.2) ​ 1.5 Maintenance workshops at Toquepala concentrator ​ 2.3 ​ ​ 9.7 ​ ​ 21.9 Quebrada Honda filter plant ​ ​ 1.3 ​ ​ 16.1 ​ ​ 18.3 Maintenance workshops at Cuajone ​ ​ 5.5 ​ ​ 17.2 ​ ​ 4.2 Other projects ​ 22.4 ​ ​ 15.6 ​ ​ 27.7 Sub‑total projects ​ 64.7 ​ 126.6 ​ 150.5 Maintenance and replacement ​ 217.0 ​ 193.1 ​ 196.3 Net change in capital expenditures incurred but not yet paid ​ (10.4) ​ 3.0 ​ 8.2 Total Peruvian expenditures ​ 271.3 ​ 322.7 ​ 355.0 Mexican projects: ​ ​ ​ ​ ​ ​ ​ New Buenavista concentrator ​ 8.3 ​ 12.3 ​ 15.0 Buenavista Zinc project ​ ​ 47.9 ​ ​ 66.5 ​ ​ 99.8 Pilares Mine ​ ​ 19.2 ​ ​ 33.5 ​ ​ 29.6 Expansion of mine pit at Buenavista ​ — ​ 17.3 ​ 11.3 Lime plant - Sonora ​ ​ 6.1 ​ ​ 9.7 ​ ​ 19.3 MexCobre - Bella Union Mine ​ ​ 14.4 ​ ​ 56.4 ​ ​ — IMMSA - Mine development ​ ​ 29.5 ​ ​ 39.4 ​ ​ 33.6 Project MexArco ​ ​ 7.6 ​ ​ 23.4 ​ ​ 22.6 San Fernando mineshaft rehabilitation ​ ​ 4.4 ​ ​ 8.3 ​ ​ 7.2 New tailing disposal deposit at Buenavista mine ​ 134.7 ​ 65.6 ​ 27.3 Over elevation of tailings deposit N° 7 at La Caridad mine ​ 5.5 ​ 5.8 ​ 2.8 San Martin mine restoration ​ ​ 0.7 ​ ​ 0.7 ​ ​ 1.6 Other projects ​ 173.3 ​ 112.1 ​ 113.3 Sub‑total projects ​ 451.6 ​ 451.0 ​ 383.4 Maintenance and replacement ​ 297.7 ​ 235.4 ​ 212.2 Net change in capital expenditures incurred but not yet paid ​ 6.7 ​ (0.5) ​ (2.1) Total Mexican expenditures ​ 756.0 ​ 685.9 ​ 593.5 Total capital investments ​ $ 1,027.3 ​ $ 1,008.6 ​ $ 948.5 ​ In 2025, we plan to invest $1,598.0 million in capital projects.
Please see Item 7A “Quantitative and Qualitative Disclosures about Market Risk” for more detailed information. ​ Capital Investment Program: We made capital investments of $1,008.6 million in 2023 and $948.5 million in 2022.
Please see Item 7A “Quantitative and Qualitative Disclosures about Market Risk” for more detailed information. ​ Capital Investment Program: We made capital investments of $1,027.3 million in 2024 and $1,008.6 million in 2023.
We believe that community outreach must be based on transparency and trust and strive to promote long-lasting ties. ​ Our Community Development model has three components: 1) responsible coexistence: to foster a positive and healthy coexistence with our neighbor communities, and to have open and ongoing channels of communication to address complaints and concerns; 2) economic development: it is important to share the economic value our operations generate with the community, and 3) human development: to optimize the skills of members of the communities where we work, to ensure that these individuals become the principal drivers of development in their communities. ​ The primary tool to ensure a responsible coexistence is our grievance mechanism for external stakeholders (Community Attention Service) that operates at 100% of our sites and gives resolution to complaints in an average of three days. ​ For economic development, during 2023, we trained 2,087 people in mining communities: 833 for employment, 1,145 in regional vocational and productive skills and 109 from local businesses to support the development of small and medium mining suppliers.
We believe that community outreach must be based on transparency and trust and strive to promote long-lasting ties. ​ Our Community Development model has three components: 1) responsible coexistence: to foster a positive and healthy coexistence with our neighbor communities, and to have open and ongoing channels of communication to address complaints and concerns; 2) economic development: it is important to share the economic value our operations generate 107 Table of Contents with the community, and 3) human development: to optimize the skills of members of the communities where we work, to ensure that these individuals become the principal drivers of development in their communities. ​ The primary tool to ensure a responsible coexistence is our grievance mechanism for external stakeholders (Service and Attention Center) that operates at 100% of our sites and resolves complaints in an average of five days. ​ In relation to economic development, we trained 1,326 people in mining communities in 2024, including 654 people in employment, 776 people in regional vocational and productive skills and 27 local businesses to support the development of small and medium mining suppliers.
We recognize that climate change will likely influence our strategy in various ways, and we aim to meet the expectations of the global business trends that are moving to demand products with lower carbon footprint.
We recognize that climate change will influence our strategy in various ways, and we aim to meet the expectations of the global business trends that are increasingly demanding products with lower carbon footprints.
These include committed purchase orders and executed contracts for our Mexican projects and for our Peruvian expansion projects. ​ ​ ​ 118 Table of Contents NON-GAAP INFORMATION RECONCILIATION ​ Operating cash cost: Following is a reconciliation of “Operating Cash Cost” (see page 96) to cost of sales (exclusive of depreciation, amortization and depletion) as reported in our consolidated statement of earnings, in millions of dollars and dollars per pound in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ per ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Cost of sales (exclusive of depreciation, amortization and depletion) ​ $ 4,687.7 ​ $ 2.42 ​ $ 4,649.1 ​ $ 2.45 ​ $ 3,894.4 ​ $ 1.90 Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 127.2 ​ 0.07 ​ 125.0 ​ 0.07 ​ 125.2 ​ 0.06 Sales premiums, net of treatment and refining charges ​ (7.7) ​ ​ (0.00) ​ (21.0) ​ (0.01) ​ (25.6) ​ (0.01) Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers’ participation ​ (253.2) ​ ​ (0.13) ​ (282.9) ​ (0.15) ​ (267.2) ​ (0.13) Cost of metals purchased from third parties ​ (195.8) ​ ​ (0.10) ​ (316.8) ​ (0.17) ​ (225.8) ​ (0.11) Royalty charge and other, net ​ (116.7) ​ ​ (0.06) ​ (300.9) ​ (0.16) ​ (158.6) ​ (0.08) Inventory change ​ (6.5) ​ ​ (0.00) ​ (26.8) ​ (0.01) ​ 15.0 ​ 0.01 Operating Cash Cost before by ‑ product revenues ​ $ 4,235.0 ​ $ 2.19 ​ $ 3,825.7 ​ $ 2.02 ​ $ 3,357.4 ​ $ 1.64 Add: ​ ​ ​ ​ ​ ​ By ‑ product revenues(1) ​ (2,194.0) ​ (1.13) ​ (2,327.2) ​ (1.22) ​ (1,974.8) ​ (0.96) Net revenue on sale of metal purchased from third parties ​ (49.8) ​ ​ (0.03) ​ (28.6) ​ (0.02) ​ (22.9) ​ (0.01) Total by ‑ product revenues ​ (2,243.8) ​ (1.16) ​ (2,355.8) ​ (1.24) ​ (1,997.7) ​ (0.97) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Cash Cost net of by ‑ product revenues ​ 1,991.2 ​ 1.03 ​ 1,469.9 ​ 0.78 ​ 1,359.7 ​ 0.67 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total pounds of copper produced (in millions) ​ 1,935.4 ​ ​ 1,894.7 ​ ​ 2,041.7 ​ (1) By-product revenues included in our presentation of operating cash cost contain the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ per ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Molybdenum ​ $ (1,129.7) ​ $ (0.58) ​ $ (1,192.7) ​ $ (0.63) ​ $ (1,053.1) ​ $ (0.51) Silver ​ (390.6) ​ (0.20) ​ (370.5) ​ (0.20) ​ (445.3) ​ (0.22) Zinc ​ (226.0) ​ (0.12) ​ (242.9) ​ (0.13) ​ (196.9) ​ (0.10) Sulfuric Acid ​ (318.4) ​ (0.17) ​ (395.8) ​ (0.21) ​ (164.6) ​ (0.08) Gold ​ (77.4) ​ (0.04) ​ (81.0) ​ (0.04) ​ (67.5) ​ (0.03) Other ​ (51.9) ​ (0.03) ​ (44.3) ​ (0.01) ​ (47.4) ​ (0.02) Total ​ $ (2,194.0) ​ $ (1.13) ​ $ (2,327.2) ​ $ (1.22) ​ $ (1,974.8) ​ $ (0.96) ​ The by-product revenue presented does not match with the sales value reported by segment on page 175 because the above table excludes purchases from third parties, which are reclassified to net revenue on sale of metal purchased from third parties. ​ 119 Table of Contents
These include committed purchase orders and executed contracts for our Mexican projects and for our Peruvian expansion projects. ​ ​ ​ 122 Table of Contents NON-GAAP INFORMATION RECONCILIATION ​ Operating cash cost: Following is a reconciliation of “Operating Cash Cost” (see page 100) to cost of sales (exclusive of depreciation, amortization and depletion) as reported in our consolidated statement of earnings, in millions of dollars and dollars per pound in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ per ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Cost of sales (exclusive of depreciation, amortization and depletion) ​ $ 4,841.4 ​ $ 2.35 ​ $ 4,687.7 ​ $ 2.42 ​ $ 4,649.1 ​ $ 2.45 Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 130.5 ​ 0.06 ​ 127.2 ​ 0.07 ​ 125.0 ​ 0.07 Sales premiums, net of treatment and refining charges ​ (39.5) ​ ​ (0.02) ​ (7.7) ​ (0.00) ​ (21.0) ​ (0.01) Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers’ participation ​ (296.4) ​ ​ (0.15) ​ (253.2) ​ (0.13) ​ (282.9) ​ (0.15) Cost of metals purchased from third parties ​ (162.4) ​ ​ (0.08) ​ (195.8) ​ (0.10) ​ (316.8) ​ (0.17) Royalty charge and other, net ​ (96.9) ​ ​ (0.05) ​ (116.7) ​ (0.06) ​ (300.9) ​ (0.16) Inventory change ​ 12.8 ​ ​ 0.01 ​ (6.5) ​ (0.00) ​ (26.8) ​ (0.01) Operating Cash Cost before by ‑ product revenues ​ $ 4,389.5 ​ $ 2.13 ​ $ 4,235.0 ​ $ 2.19 ​ $ 3,825.7 ​ $ 2.02 Add: ​ ​ ​ ​ ​ ​ By‑product revenues(1) ​ (2,524.1) ​ (1.23) ​ (2,194.0) ​ (1.13) ​ (2,327.2) ​ (1.22) Net revenue on sale of metal purchased from third parties ​ (42.2) ​ ​ (0.02) ​ (49.8) ​ (0.03) ​ (28.6) ​ (0.02) Total by‑product revenues ​ (2,566.3) ​ (1.25) ​ (2,243.8) ​ (1.16) ​ (2,355.8) ​ (1.24) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Cash Cost net of by ‑ product revenues ​ 1,823.2 ​ 0.89 ​ 1,991.2 ​ 1.03 ​ 1,469.9 ​ 0.78 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total pounds of copper produced (in millions) ​ 2,057.7 ​ ​ 1,935.4 ​ ​ 1,894.7 ​ (1) By-product revenues included in our presentation of operating cash cost contain the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ per ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Molybdenum ​ $ (1,246.4) ​ $ (0.61) ​ $ (1,129.7) ​ $ (0.58) ​ $ (1,192.7) ​ $ (0.63) Silver ​ (529.4) ​ (0.26) ​ (390.6) ​ (0.20) ​ (370.5) ​ (0.20) Zinc ​ (354.3) ​ (0.17) ​ (226.0) ​ (0.12) ​ (242.9) ​ (0.13) Sulfuric Acid ​ (262.4) ​ (0.13) ​ (318.4) ​ (0.17) ​ (395.8) ​ (0.21) Gold ​ (81.4) ​ (0.04) ​ (77.4) ​ (0.04) ​ (81.0) ​ (0.04) Other ​ (50.2) ​ (0.02) ​ (51.9) ​ (0.03) ​ (44.3) ​ (0.01) Total ​ $ (2,524.1) ​ $ (1.23) ​ $ (2,194.0) ​ $ (1.13) ​ $ (2,327.2) ​ $ (1.22) ​ The by-product revenue presented does not match with the sales value reported by segment on page 178 because the above table excludes purchases from third parties, which are reclassified to net revenue on sale of metal purchased from third parties. ​ 123 Table of Contents
We are currently developing a new organic growth plan whose goal is to increase our copper volume production to 1.3 million tonnes by the end of this decade. ​ For 2024, the Board of Directors approved a capital investment program of $1,103.7 million. ​ ​ KEY MATTERS ​ Below, we discuss several matters that we believe are important to understand our results of operations and financial condition.
We are currently developing a new organic growth plan whose goal is to increase our copper volume production to 1.5 million tonnes by 2032. ​ For 2025, the Board of Directors approved a capital investment program of $1,598.0 million. ​ KEY MATTERS ​ Below, we discuss several matters that we believe are important to understand our results of operations and financial condition.
As a result beginning in 2020, Grupo Mexico’s Sustainable Development Report included sections on climate-related risks and opportunities, and more detailed information about new short, medium and long term Scope 1 and 2 climate targets, strategy and governance mechanisms, as well as new emissions and energy metrics informed by SASB standards.
Since 2020, Grupo Mexico’s Sustainable Development Report has included sections on climate-related risks and opportunities, more detailed information about new short-, medium- and long-term Scope 1 and 2 climate targets, strategy and governance mechanisms, and new emissions and energy metrics informed by Sustainability Accounting Standards Board (SASB) standards.
Net sales in 2023 were adversely affected by downward adjustments of $406.0 million arising from provisionally priced sales due to decreases in metal prices. ​ The table below outlines the average published market metals prices for our metals for each of the three years in the three-year period ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % Variance ​ ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Copper price ($per pound—LME) ​ $ 3.85 ​ $ 4.00 ​ $ 4.23 ​ (3.8) % (5.4) % Copper price ($per pound—COMEX) ​ $ 3.86 ​ $ 4.01 ​ $ 4.24 ​ (3.7) % (5.4) % Molybdenum price ($per pound)(1) ​ $ 23.73 ​ $ 18.61 ​ $ 15.51 ​ 27.5 % 20.0 % Zinc price ($per pound—LME) ​ $ 1.20 ​ $ 1.58 ​ $ 1.36 ​ (24.1) % 16.2 % Silver price ($per ounce—COMEX) ​ $ 23.41 ​ $ 21.76 ​ $ 25.18 ​ 7.6 % (13.6) % (1) Platt’s Metals Week Dealer Oxide. ​ 108 Table of Contents The table below provides our metal sales as a percentage of our total net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ Sales as a percentage of total net sales 2023 2022 ​ 2021 ​ Copper 76.7 % 75.0 % 80.7 % Molybdenum 11.4 % 11.9 % 9.6 % Silver 4.2 % 4.0 % 4.3 % Zinc 3.0 % 3.7 % 2.7 % Other by‑products 4.7 % 5.4 % 2.7 % Total 100.0 % 100.0 % 100.0 % ​ The table below provides our copper sales by type of product (in million pounds).
Additionally, net sales in 2024 were negatively impacted by downward adjustments of $77.6 million related to provisionally priced sales, reflecting the increase in metal prices. ​ The table below outlines the average published market metals prices for our metals for each of the three years in the three-year period ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % Variance ​ ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Copper price ($per pound—LME) ​ $ 4.15 ​ $ 3.85 ​ $ 4.00 ​ 7.8 % (3.8) % Copper price ($per pound—COMEX) ​ $ 4.22 ​ $ 3.86 ​ $ 4.01 ​ 9.3 % (3.7) % Molybdenum price ($per pound)(1) ​ $ 21.21 ​ $ 23.73 ​ $ 18.61 ​ (10.6) % 27.5 % Zinc price ($per pound—LME) ​ $ 1.26 ​ $ 1.20 ​ $ 1.58 ​ 5.0 % (24.1) % Silver price ($per ounce—COMEX) ​ $ 28.25 ​ $ 23.41 ​ $ 21.76 ​ 20.7 % 7.6 % (1) Platt’s Metals Week Dealer Oxide. ​ The table below provides our metal sales as a percentage of our total net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ Sales as a percentage of total net sales 2024 2023 ​ 2022 ​ Copper 76.6 % 76.7 % 75.0 % Molybdenum 10.9 % 11.4 % 11.9 % Silver 5.1 % 4.2 % 4.0 % Zinc 3.8 % 3.0 % 3.7 % Other by‑products 3.6 % 4.7 % 5.4 % Total 100.0 % 100.0 % 100.0 % ​ 112 Table of Contents The table below provides our copper sales by type of product (in million pounds).
Net income attributable to SCC in 2022 was 22.3% below 2021’s net income; this was mainly due to higher costs of sales and a slight reduction in sales volumes. ​ Production: The table below contains mine production data of our Company for the three years ended December 31, 2023: Production: The table below contains mine production data of our Company for the three years ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 - 2022 ​ 2022 - 2021 ​ ​ 2023 2022 2021 Volume % ​ Volume % Copper (in million pounds) 2,008.4 1,972.5 2,112.5 35.9 1.8 % (140.0) (6.6) % Molybdenum (in million pounds) 59.2 57.8 66.7 1.3 2.3 % (8.9) (13.3) % Zinc (in million pounds) 144.4 132.3 147.6 12.1 9.2 % (15.3) (10.4) % Silver (in million ounces) 18.4 18.6 19.0 (0.2) (0.8) % (0.4) (2.1) % ​ 95 Table of Contents The table below contains copper production data from each of our mines for the three years ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 - 2022 2022 - 2021 Copper (in million pounds): ​ 2023 2022 2021 Volume % Volume % Toquepala 495.8 444.2 505.7 51.6 11.6 % (61.5) (12.2) % Cuajone 329.0 309.4 372.6 19.6 6.4 % (63.2) (17.0) % La Caridad 244.3 246.5 282.4 (2.2) (0.9) % (35.9) (12.7) % Buenavista 918.2 952.3 932.6 (34.1) (3.6) % 19.7 2.1 % IMMSA 21.1 20.1 19.2 1.0 4.7 % 0.9 4.8 % Total mined copper 2,008.4 1,972.5 2,112.5 35.9 1.8 % (140.0) (6.6) % ​ 2023 compared to 2022: ​ Copper mine production in 2023 increased 1.8% to 2,008.4 million pounds.
Net income attributable to SCC in 2023 was 8.1% below 2022’s net income; this was mainly due to a reduction in sales volumes and a slight increase in costs of sales. ​ Production: The table below contains mine production data of our Company for the three years ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 - 2023 ​ 2023 - 2022 ​ ​ 2024 2023 2022 Volume % ​ Volume % Copper (in million pounds) 2,147.0 2,008.4 1,972.5 138.6 6.9 % 35.9 1.8 % Molybdenum (in million pounds) 63.9 59.2 57.8 4.8 8.1 % 1.3 2.3 % Zinc (in million pounds) 286.6 144.4 132.3 142.2 98.5 % 12.1 9.2 % Silver (in million ounces) 21.0 18.4 18.6 2.6 14.0 % (0.2) (0.8) % ​ 99 Table of Contents The table below contains copper production data from each of our mines for the three years ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 - 2023 2023 - 2022 Copper (in million pounds): ​ 2024 2023 2022 Volume % Volume % Toquepala 549.6 495.8 444.2 53.8 10.8 % 51.6 11.6 % Cuajone 363.5 329.0 309.4 34.5 10.5 % 19.6 6.4 % La Caridad 257.9 244.3 246.5 13.6 5.6 % (2.2) (0.9) % Buenavista 954.5 918.2 952.3 36.3 4.0 % (34.1) (3.6) % IMMSA 21.5 21.1 20.1 0.4 2.0 % 1.0 4.7 % Total mined copper 2,147.0 2,008.4 1,972.5 138.6 6.9 % 35.9 1.8 % ​ 2024 compared to 2023: ​ Copper mine production in 2024 increased 6.9% to 2,147.0 million pounds.
In addition, we believe that we will be able to access additional external financing on reasonable terms, if required. ​ As of December 31, 2023, $512.2 million of the Company´s total cash, cash equivalents and short-term investments of $1,750.8 million were held by foreign subsidiaries.
In addition, we believe that we will be able to access additional external financing on reasonable terms, if required. ​ As of December 31, 2024, $577.6 million of the Company´s total cash, cash equivalents and short-term investments of $3,503.4 million were held by foreign subsidiaries.
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, as defined above, is presented in the table below for the three years ended December 31, 2023: ​ Operating cash cost per pound of copper produced(1) (In millions, except cost per pound and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 - 2022 ​ 2022 - 2021 ​ ​ 2023 2022 2021 Value % Value % Total operating cash cost before by‑product revenues ​ $ 4,235.0 ​ $ 3,825.7 ​ $ 3,357.4 ​ $ 409.3 10.7 % $ 468.3 13.9 % Total by‑product revenues ​ $ (2,243.8) ​ $ (2,355.8) ​ $ (1,997.7) ​ $ 112.0 (4.8) % (358.1) 17.9 % Total operating cash cost net of by‑product revenues ​ $ 1,991.2 ​ $ 1,469.9 ​ $ 1,359.7 ​ $ 521.3 35.5 % $ 110.2 8.1 % Total pounds of copper produced(2) ​ 1,935.4 ​ 1,894.7 ​ 2,041.7 ​ 40.7 2.1 % (147.0) (7.2) % Operating cash cost per pound before by ‑ product revenues ​ $ 2.19 ​ $ 2.02 ​ $ 1.64 ​ $ 0.17 8.4 % $ 0.38 22.8 % By ‑ products per pound revenues ​ $ (1.16) ​ $ (1.24) ​ $ (0.97) ​ $ 0.08 (6.8) % $ (0.27) 27.1 % Operating cash cost per pound net of by ‑ product revenues ​ $ 1.03 ​ $ 0.78 ​ $ 0.67 ​ $ 0.25 32.6 % $ 0.11 16.5 % (1) These are non-GAAP measures, see page 119 for reconciliation to GAAP measure.
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, as defined above, is presented in the table below for the three years ended December 31, 2024: ​ Operating cash cost per pound of copper produced(1) (In millions, except cost per pound and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 - 2023 ​ 2023 - 2022 ​ ​ 2024 2023 2022 Value % Value % Total operating cash cost before by‑product revenues ​ $ 4,389.5 ​ $ 4,235.0 ​ $ 3,825.7 ​ $ 154.5 3.6 % $ 409.3 10.7 % Total by‑product revenues ​ $ (2,566.3) ​ $ (2,243.8) ​ $ (2,355.8) ​ $ (322.5) 14.4 % 112.0 (4.8) % Total operating cash cost net of by‑product revenues ​ $ 1,823.2 ​ $ 1,991.2 ​ $ 1,469.9 ​ $ (168.0) (8.4) % $ 521.3 35.5 % Total pounds of copper produced(2) ​ 2,057.7 ​ 1,935.4 ​ 1,894.7 ​ 122.3 6.3 % 40.7 2.1 % Operating cash cost per pound before by ‑ product revenues ​ $ 2.13 ​ $ 2.19 ​ $ 2.02 ​ $ (0.06) (2.5) % $ 0.17 8.4 % By ‑ products per pound revenues ​ $ (1.25) ​ $ (1.16) ​ $ (1.24) ​ $ (0.09) 7.6 % $ 0.08 (6.8) % Operating cash cost per pound net of by ‑ product revenues ​ $ 0.89 ​ $ 1.03 ​ $ 0.78 ​ $ (0.14) (13.9) % $ 0.25 32.6 % (1) These are non-GAAP measures, see page 123 for reconciliation to GAAP measure.
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.
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 103 Table of Contents operate as a conventional open-pit mine with an annual production capacity of 36,000 tonnes of copper cathodes.
For further information, please see “Capital Investment Program” under this Item on page 99. ​ The 2022 investing activities also included net sales of short-term investments of $278.5 million. ​ ​ Net cash used in financing activities: ​ 2023: Net cash used in financing activities in 2023 was $3,101.2 million and included a dividend distribution of $3,092.4 million. ​ 2022: Net cash used in financing activities in 2022 was $3,011.0 million and included a dividend distribution of $2,705.8 million; as well as a debt repayment of $300 million. ​ ​ ​ 116 Table of Contents Other Liquidity Considerations ​ We expect that we will meet our cash requirements for 2024 and beyond from cash on hand and internally generated funds.
For further information, please see “Capital Investment Program” under this Item on page 102. ​ The 2023 investing activities also included net purchases of short-term investments of $391.0 million. ​ Net cash used in financing activities: ​ 2024: Net cash used in financing activities in 2024 was $1,645.2 million and included a cash dividend distribution of $1,637.2 million. ​ 2023: Net cash used in financing activities in 2023 was $3,101.2 million and included a dividend distribution of $3,092.4 million. ​ ​ 120 Table of Contents Other Liquidity Considerations ​ We expect that we will meet our cash requirements for 2025 and beyond from cash on hand and internally generated funds.
We have a series of policies and procedures that serve as a guide to all employees and suppliers: General Human Rights Policy; Policy of Respect for the Rights of Indigenous Peoples and Communities; Diversity, Inclusion and Non-Discrimination, No Workplace or Sexual Harassment Policy; and the Code of Conduct for Suppliers, Contractors and Relevant Business Partners, which includes several sections related to human rights. ​ The company has a human rights’ due diligence process in place to identify, prevent, mitigate or remediate adverse impacts on the human rights of communities.
We have a series of policies and procedures that serve as a guide to all employees and suppliers, and the Code of Conduct for Suppliers, Contractors and Relevant Business Partners, which includes several sections related to human rights. ​ We have a human rights’ due diligence process in place to identify, prevent, mitigate or correct adverse impacts on the human rights of communities.
The work climate surveys, Complaint Hotlines and the due diligence process of suppliers are tools 105 Table of Contents that enable the Company to comply with the commitments included in the General Human Rights Policy.
The work environment surveys, Complaint Hotlines, and due diligence process are tools that enable us to comply with the commitments included in the General Human Rights Policy.
This was partially offset by ● $13.4 million decrease in interest expense net of capitalized interest and ● $51.6 million increase in interest income. ​ ​ Income taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ ​ 2023 2022 ​ 2021 ​ Provision for income taxes ($ in millions) ​ $ 1,518.9 ​ $ 1,596.1 ​ $ 2,299.2 ​ Effective income tax rate ​ 38.4 % ​ 37.6 % ​ 40.4 % ​ The income tax provision includes Peruvian, Mexican and U.S. federal income taxes. ​ 110 Table of Contents Components of income tax provision for 2023, 2022 and 2021 include the following ($ in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Statutory income tax provision ​ $ 1,284.0 ​ $ 1,361.6 ​ $ 1,874.6 Peruvian royalty ​ 44.6 ​ 35.8 ​ 97.8 Mexican royalty ​ 118.6 ​ 142.3 ​ 212.8 Peruvian special mining tax ​ 71.7 ​ 56.4 ​ 114.0 Total income tax provision ​ $ 1,518.9 ​ $ 1,596.1 ​ $ 2,299.2 ​ The increase in the effective income tax rate in 2023 compared to the same period in 2022 was primarily attributable to uncertain tax positions recorded in the U.S., Peruvian and Mexican jurisdictions. ​ Equity earnings of affiliate ​ In 2023, 2022 and 2021 we recognized $(2.2) million, $(3.7) million and $13.6 million in equity earnings, respectively, which were associated with our 44.2% interest in the Tantahuatay mine. ​ Net Income attributable to the non-controlling interest ​ Net income attributable to the non-controlling interest in 2023 and in 2022 was $9.5 million, while in 2021, it was $14.1 million in 2021. ​ Net Income attributable to SCC ​ Our net income attributable to SCC in 2023 was $2,425.2 million, compared to $2,638.5 million in 2022.
The $39.3 million decrease in net expense in 2024 was mainly due to: ​ ● $44.8 million increase in interest income due to higher cash and cash equivalents balances in 2024, and ● $1.9 million increase in other income; slightly offset by, ● $7.4 million decrease in interest expense net of capitalized interest. ​ Income taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ ​ 2024 2023 ​ 2022 ​ Provision for income taxes ($ in millions) ​ $ 1,975.3 ​ $ 1,518.9 ​ $ 1,596.1 ​ Effective income tax rate ​ 36.9 % ​ 38.4 % ​ 37.6 % ​ The income tax provision includes Peruvian, Mexican and U.S. federal income taxes. ​ 114 Table of Contents Components of income tax provision for 2024, 2023 and 2022 include the following ($ in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Statutory income tax provision ​ $ 1,688.0 ​ $ 1,284.0 ​ $ 1,361.6 Peruvian royalty ​ 57.5 ​ 44.6 ​ 35.8 Mexican royalty ​ 142.9 ​ 118.6 ​ 142.3 Peruvian special mining tax ​ 86.9 ​ 71.7 ​ 56.4 Total income tax provision ​ $ 1,975.3 ​ $ 1,518.9 ​ $ 1,596.1 ​ The decrease in the effective income tax rate in 2024 compared to the same period in 2023 was primarily attributable to a variance in uncertain tax positions recorded in the U.S., Peruvian and Mexican jurisdictions. ​ Equity earnings of affiliate ​ In 2024, 2023 and 2022 we recognized $6.4 million, $(2.2) million and $(3.7) million in equity earnings, respectively, which were associated with our 44.2% interest in the Tantahuatay mine. ​ Net Income attributable to the non-controlling interest ​ Net income attributable to the non-controlling interest in 2024 was $11.8 and $9.5 million in 2023 and 2022. ​ Net Income attributable to SCC ​ Net income attributable to SCC in 2024 amounted to $3,376.8 million, a 39.2% increase from the $2,425.2 million reported in 2023.
As of December 31, 2023, our copper mineral reserves, calculated at a copper price of $3.30 per pound, totaled 97,082 million pounds of contained copper, at the following locations: ​ ​ ​ ​ Copper contained in ore reserves Million pounds Mexican open‑pit 33,426 Peruvian operations 44,382 Development projects 19,274 Total 97,082 ​ Outlook: Various key factors affect our outcome.
As of December 31, 2024, our copper mineral reserves, estimated at a copper price of $3.30 per pound, totaled 112,668 million pounds of contained copper, distributed in the following locations: ​ ​ ​ ​ Copper contained in ore reserves Million pounds Mexican open‑pit 46,881 Peruvian operations 46,513 Development projects 19,274 Total 112,668 ​ Outlook: Various key factors affect our outcome.
As the Company’s lease contracts do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the inception date to determine the present value of lease payments. ​ RESULTS OF OPERATIONS ​ The following table highlights key financial results for each of the years in the three-year period ended December 31, 2023 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of Earnings Data ​ 2023 2022 2021 ​ 2023 - 2022 2022 - 2021 Net sales ​ $ 9,895.8 ​ $ 10,047.9 ​ $ 10,934.1 ​ $ (152.1) ​ $ (886.2) Operating costs and expenses ​ (5,703.5) ​ (5,612.1) ​ (4,869.0) ​ (91.4) ​ (743.1) Operating income ​ 4,192.3 ​ 4,435.8 ​ 6,065.1 ​ (243.5) ​ (1,629.3) Non‑operating income (expense) ​ (236.5) ​ (188.0) ​ (368.3) ​ (48.5) ​ 180.3 Income before income taxes ​ 3,955.8 ​ 4,247.8 ​ 5,696.8 ​ (292.0) ​ (1,449.0) Income taxes ​ (1,578.0) ​ (1,477.5) ​ (2,425.5) ​ (100.5) ​ 948.0 Deferred income taxes ​ 59.1 ​ (118.6) ​ 126.3 ​ 177.7 ​ (244.9) Equity earnings of affiliate ​ (2.2) ​ (3.7) ​ 13.6 ​ 1.5 ​ (17.3) Net income attributable to non‑controlling interest ​ (9.5) ​ (9.5) ​ (14.1) ​ — ​ 4.6 Net income attributable to SCC ​ $ 2,425.2 ​ $ 2,638.5 ​ $ 3,397.1 ​ $ (213.3) ​ $ (758.6) ​ NET SALES ​ 2023-2022: Net sales in 2023 totaled $9,895.8 million, which represents a slight decrease compared to 2022 net sales of $10,047.9 million.
As the Company’s lease contracts do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the inception date to determine the present value of lease payments. ​ 111 Table of Contents RESULTS OF OPERATIONS ​ The following table highlights key financial results for each of the years in the three-year period ended December 31, 2024 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of Earnings Data ​ 2024 2023 2022 ​ 2024 - 2023 2023 - 2022 Net sales ​ $ 11,433.4 ​ $ 9,895.8 ​ $ 10,047.9 ​ $ 1,537.6 ​ $ (152.1) Operating costs and expenses ​ (5,878.7) ​ (5,703.5) ​ (5,612.1) ​ (175.2) ​ (91.4) Operating income ​ 5,554.7 ​ 4,192.3 ​ 4,435.8 ​ 1,362.4 ​ (243.5) Non‑operating income (expense) ​ (197.3) ​ (236.5) ​ (188.0) ​ 39.3 ​ (48.5) Income before income taxes ​ 5,357.4 ​ 3,955.8 ​ 4,247.8 ​ 1,401.6 ​ (292.0) Income taxes ​ (2,027.4) ​ (1,578.0) ​ (1,477.5) ​ (449.4) ​ (100.5) Deferred income taxes ​ 52.2 ​ 59.1 ​ (118.6) ​ (6.9) ​ 177.7 Equity earnings of affiliate ​ 6.4 ​ (2.2) ​ (3.7) ​ 8.6 ​ 1.5 Net income attributable to non‑controlling interest ​ (11.8) ​ (9.5) ​ (9.5) ​ (2.3) ​ — Net income attributable to SCC ​ $ 3,376.8 ​ $ 2,425.2 ​ $ 2,638.5 ​ $ 951.6 ​ $ (213.3) ​ NET SALES ​ Net sales in 2024 totaled a record high of $11,433.4 million, reflecting a 15.5% increase compared to 2023.
These matters include (i) earnings, (ii) production, (iii) “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. 94 Table of Contents Earnings: The table below highlights key financial and operational data of our Company for the three years ended December 31, 2023 (in millions, except copper price and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Copper price LME ​ ​ 3.85 ​ ​ 4.00 ​ ​ 4.23 ​ ​ (0.15) ​ (0.23) Pounds of copper sold ​ ​ 1,961.8 ​ ​ 1,920.4 ​ ​ 2,052.9 ​ ​ 41.4 ​ (132.5) Net sales ​ $ 9,895.8 ​ $ 10,047.9 ​ $ 10,934.1 ​ $ (152.1) ​ $ (886.2) Operating income ​ $ 4,192.3 ​ $ 4,435.8 ​ $ 6,065.1 ​ $ (243.5) ​ $ (1,629.3) Income before income taxes ​ $ 3,955.8 ​ $ 4,247.8 ​ $ 5,696.8 ​ $ (292.0) ​ $ (1,449.0) Net income attributable to SCC ​ $ 2,425.2 ​ $ 2,638.5 ​ $ 3,397.1 ​ $ (213.3) ​ $ (758.6) Earnings per share ​ $ 3.14 ​ $ 3.41 ​ $ 4.39 ​ $ (0.27) ​ $ (0.98) Dividends per share ​ $ 4.00 ​ $ 3.50 ​ $ 3.20 ​ $ 0.50 ​ $ 0.30 ​ Net sales in 2023 totaled $9,895.8 million, which represented a slight decrease compared to net sales in 2022.
These matters include (i) earnings, (ii) production, (iii) “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. 98 Table of Contents Earnings: The table below highlights key financial and operational data of our Company for the three years ended December 31, 2024 (in millions, except copper price and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Copper price LME ​ ​ 4.15 ​ ​ 3.85 ​ ​ 4.00 ​ ​ 0.30 ​ (0.15) Pounds of copper sold ​ ​ 2,069.1 ​ ​ 1,961.8 ​ ​ 1,920.4 ​ ​ 107.3 ​ 41.4 Net sales ​ $ 11,433.4 ​ $ 9,895.8 ​ $ 10,047.9 ​ $ 1,537.6 ​ $ (152.1) Cost of sales ​ $ (4,841.4) ​ $ (4,687.7) ​ $ (4,649.1) ​ $ (153.7) ​ $ (38.6) Operating income ​ $ 5,554.7 ​ $ 4,192.3 ​ $ 4,435.8 ​ $ 1,362.4 ​ $ (243.5) Income before income taxes ​ $ 5,357.4 ​ $ 3,955.8 ​ $ 4,247.8 ​ $ 1,401.6 ​ $ (292.0) Net income attributable to SCC ​ $ 3,376.8 ​ $ 2,425.2 ​ $ 2,638.5 ​ $ 951.6 ​ $ (213.3) Earnings per share ​ $ 4.33 ​ $ 3.14 ​ $ 3.41 ​ $ 1.19 ​ $ (0.27) Cash dividend per share ​ $ 2.10 ​ $ 4.00 ​ $ 3.50 ​ $ (1.90) ​ $ 0.50 ​ Net sales in 2024 totaled a record high of $11,433.4 million, reflecting a 15.5% increase compared to 2023.
Please see a detailed definition of these segments in Item 1 “Business—Business Reporting Segments.” ​ The following table presents the volume of sales by segment of copper and our significant by-products for each of the years in the three-year period ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance Copper Sales (million pounds) ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Peruvian operations ​ 805.8 ​ 792.8 ​ 859.8 ​ 13.0 (67.0) ​ Mexican open‑pit ​ 1,151.5 ​ 1,166.3 ​ 1,189.6 ​ (14.8) (23.3) ​ Mexican IMMSA unit ​ 26.3 ​ 25.0 ​ 24.3 ​ 1.3 0.7 ​ Other and intersegment elimination ​ (21.8) ​ (63.7) ​ (20.8) ​ 41.9 (42.9) ​ Total copper sales ​ 1,961.8 ​ 1,920.4 ​ 2,052.9 ​ 41.4 (132.5) ​ ​ 111 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance By ‑ product Sales (million pounds, except silver—million ounces) ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Peruvian operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 22.1 ​ 25.0 ​ 32.8 ​ (2.9) (7.8) ​ Silver 4.4 ​ 4.5 ​ 5.6 ​ (0.1) (1.1) ​ Mexican open‑pit operations: ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 37.2 ​ 32.9 ​ 34.0 ​ 4.3 (1.1) ​ Silver 9.9 ​ 11.2 ​ 10.0 ​ (1.3) 1.2 ​ IMMSA unit ​ ​ ​ ​ ​ ​ ​ Zinc‑refined and in concentrate 219.7 ​ 223.0 ​ 201.9 ​ (3.3) 21.1 ​ Silver 6.9 ​ 6.4 ​ 6.2 ​ 0.5 0.2 ​ Other and intersegment elimination ​ ​ ​ ​ ​ ​ ​ Silver (3.2) ​ (3.3) ​ (2.6) ​ 0.1 (0.7) ​ Total by‑product sales ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 59.3 ​ 57.9 ​ 66.8 ​ 1.4 (8.9) ​ Zinc‑refined and in concentrate 219.7 ​ 223.0 ​ 201.9 ​ (3.3) 21.1 ​ Silver 18.0 ​ 18.8 ​ 19.2 ​ (0.8) (0.4) ​ ​ ​ Peruvian Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2023 ​ 2022 ​ 2021 ​ 2023 - 2022 2022 - 2021 Net sales $ 3,854.3 ​ $ 3,908.5 ​ $ 4,370.8 ​ $ (54.2) ​ $ (462.3) Operating costs and expenses (2,380.9) ​ (2,440.7) ​ (2,037.6) ​ 59.8 ​ (403.1) Operating income $ 1,473.4 ​ $ 1,467.8 ​ $ 2,333.2 ​ $ 5.6 ​ $ (865.4) ​ Net sales: ​ 2023-2022: Net sales in 2023 fell $54.2 million versus the figure in 2022.
Please see a detailed definition of these segments in Item 1 “Business—Business Reporting Segments.” ​ The following table presents the volume of sales by segment of copper and our significant by-products for each of the years in the three-year period ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance Copper Sales (million pounds) ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Peruvian operations ​ 890.4 ​ 805.8 ​ 792.8 ​ 84.6 13.0 ​ Mexican open‑pit ​ 1,191.1 ​ 1,151.5 ​ 1,166.3 ​ 39.6 (14.8) ​ Mexican IMMSA unit ​ 33.0 ​ 26.3 ​ 25.0 ​ 6.7 1.3 ​ Other and intersegment elimination ​ (45.4) ​ (21.8) ​ (63.7) ​ (23.6) 41.9 ​ Total copper sales ​ 2,069.1 ​ 1,961.8 ​ 1,920.4 ​ 107.3 41.4 ​ ​ 115 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance By ‑ product Sales (million pounds, except silver—million ounces) ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Peruvian operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 29.5 ​ 22.1 ​ 25.0 ​ 7.4 (2.9) ​ Silver 5.6 ​ 4.4 ​ 4.5 ​ 1.2 (0.1) ​ Mexican open‑pit operations: ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 34.5 ​ 37.2 ​ 32.9 ​ (2.7) 4.3 ​ Silver 11.9 ​ 9.9 ​ 11.2 ​ 2.0 (1.3) ​ Zinc‑refined and in concentrate ​ 103.4 ​ — ​ — ​ 103.4 ​ — ​ IMMSA unit ​ ​ ​ ​ ​ ​ ​ Zinc‑refined and in concentrate 214.3 ​ 219.7 ​ 223.0 ​ (5.4) (3.3) ​ Silver 6.6 ​ 6.9 ​ 6.4 ​ (0.3) 0.5 ​ Other and intersegment elimination ​ ​ ​ ​ ​ ​ ​ Silver (3.3) ​ (3.2) ​ (3.3) ​ (0.1) 0.1 ​ Total by‑product sales ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 64.0 ​ 59.3 ​ 57.9 ​ 4.7 1.4 ​ Zinc‑refined and in concentrate 317.8 ​ 219.7 ​ 223.0 ​ 98.1 (3.3) ​ Silver 20.8 ​ 18.0 ​ 18.8 ​ 2.8 (0.8) ​ ​ ​ Peruvian Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2024 ​ 2023 ​ 2022 ​ 2024 - 2023 2023 - 2022 Net sales $ 4,604.6 ​ $ 3,854.3 ​ $ 3,908.5 ​ $ 750.3 ​ $ (54.2) Operating costs and expenses (2,512.1) ​ (2,380.9) ​ (2,440.7) ​ (131.2) ​ 59.8 Operating income $ 2,092.5 ​ $ 1,473.4 ​ $ 1,467.8 ​ $ 619.1 ​ $ 5.6 ​ Net sales: ​ 2024-2023: Net sales in 2024 increased by $750.3 million compared to 2023.
For further information, please see “Capital Investment Program” under this Item on page 99. ​ The 2023 investing activities also included net purchases of short-term investments of $391.0 million. ​ 2022: Net cash used for investing activities in 2022 included $948.5 million for capital investments.
For further information, please see “Capital Investment Program” under this Item on page 102. ​ The 2024 investing activities also included net proceeds of short-term investments of $354.0 million. ​ 2023: Net cash used for investing activities in 2023 included $1,008.6 million for capital investments.
Please see Note 19 “Segment and Related Information” of the consolidated financial statements. ​ ​ LIQUIDITY AND CAPITAL RESOURCES ​ The following discussion relates to our liquidity and capital resources for each of the years in the three-year period ended December 31, 2023. ​ Cash Flow: ​ The following table shows the cash flow for the three year period ended December 31, 2023 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Net cash provided by operating activities ​ $ 3,573.1 ​ $ 2,802.5 ​ $ 4,292.4 ​ $ 770.6 ​ $ (1,489.9) Net cash used in investing activities ​ $ (1,398.4) ​ $ (666.8) ​ $ (972.9) ​ $ (731.6) ​ $ 306.1 Net cash used in financing activities ​ $ (3,101.2) ​ $ (3,011.0) ​ $ (2,480.2) ​ $ (90.2) ​ $ (530.8) ​ 115 Table of Contents Net cash provided by operating activities: ​ The 2023, 2022 and 2021 change in net cash from operating activities include (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Net income $ 2,434.7 ​ $ 2,648.0 ​ $ 3,411.2 ​ $ (213.3) ​ $ (763.2) Depreciation, amortization and depletion 833.6 ​ 796.3 ​ 806.0 ​ 37.3 ​ (9.7) Provision for deferred income taxes (59.1) ​ 118.6 ​ (126.3) ​ (177.7) ​ 244.9 Loss on foreign currency transaction effect 10.4 ​ 41.9 ​ (25.8) ​ (31.5) ​ 67.7 Other adjustments to net income 17.4 ​ 21.5 ​ 18.7 ​ (4.1) ​ 2.8 Operating assets and liabilities 310.0 ​ (840.2) ​ 190.7 ​ 1,150.2 ​ (1,030.9) Net cash provided by operating activities $ 3,547.0 ​ $ 2,786.1 ​ $ 4,274.5 ​ $ 760.9 ​ $ (1,488.4) ​ Significant items added to (deducted from) net income to arrive at operating cash flow include depreciation, amortization and depletion, deferred tax amounts and changes in operating assets and liabilities. ​ 2023: Net income was $2,434.7 million, which represented 68.6% of the net operating cash flow. ​ Changes in operating assets and liabilities increased cash flow by $310.0 million due the following variances: ● $253.0 million decrease in trade accounts receivable, principally at our Mexican operations. ● $152.1 million increase in accounts payable and accrued liabilities, which was mainly driven by an increase in accrued income taxes at our Peruvian operations. ● $(60.4) million net increase in inventory; principally at our Mexican operations. ● $ (34.7) million increase in other operating assets and liabilities, net. ​ ​ Net cash used in investing activities: ​ 2023: Net cash used for investing activities in 2023 included $1,008.6 million for capital investments.
Please see Note 19 “Segment and Related Information” of the consolidated financial statements. ​ LIQUIDITY AND CAPITAL RESOURCES ​ The following discussion relates to our liquidity and capital resources for each of the years in the three-year period ended December 31, 2024. ​ Cash Flow: ​ The following table shows the cash flow for the three year period ended December 31, 2024 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Net cash provided by operating activities ​ $ 4,421.7 ​ $ 3,573.1 ​ $ 2,802.5 ​ $ 848.6 ​ $ 770.6 Net cash used in investing activities ​ $ (673.3) ​ $ (1,398.4) ​ $ (666.8) ​ $ 725.1 ​ $ (731.6) Net cash used in financing activities ​ $ (1,645.2) ​ $ (3,101.2) ​ $ (3,011.0) ​ $ 1,456.0 ​ $ (90.2) ​ 119 Table of Contents Net cash provided by operating activities: ​ The 2024, 2023 and 2022 change in net cash from operating activities include (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Net income $ 3,388.6 ​ $ 2,434.7 ​ $ 2,648.0 ​ $ 953.9 ​ $ (213.3) Depreciation, amortization and depletion 845.9 ​ 833.6 ​ 796.3 ​ 12.3 ​ 37.3 (Benefit) provision for deferred income taxes (52.2) ​ (59.1) ​ 118.6 ​ 6.9 ​ (177.7) Loss on foreign currency transaction effect 13.7 ​ 10.4 ​ 41.9 ​ 3.3 ​ (31.5) Other adjustments to net income (13.0) ​ 43.5 ​ 37.9 ​ (56.5) ​ 5.6 Operating assets and liabilities 238.7 ​ 310.0 ​ (840.2) ​ (71.3) ​ 1,150.2 Net cash provided by operating activities $ 4,421.7 ​ $ 3,573.1 ​ $ 2,802.5 ​ $ 848.6 ​ $ 770.6 ​ Significant items added to (deducted from) net income to arrive at operating cash flow include depreciation, amortization and depletion, deferred tax amounts and changes in operating assets and liabilities. ​ 2024: Net income was $3,388.6 million, which represented 76.6% of the net operating cash flow. ​ Changes in operating assets and liabilities increased cash flow by $238.7 million, driven by the following variances: ● $(48.5) million increase in trade accounts receivable, principally at our Mexican operations. ● $385.7 million increase in accounts payable and accrued liabilities, which was mainly driven by an increase in accrued income taxes and workers participation at our Peruvian and Mexican operations, resulting from the improvement in income before taxes in 2024. ● $(56.1) million net increase in inventory; mainly work in process at our Peruvian operations. ● $ (42.4) million increase in other operating assets and liabilities, net. ​ Net cash used in investing activities: ​ 2024: Net cash used for investing activities in 2024 included $1,027.3 million for capital investments.
This included $593.5 million of investments at our Mexican operations and $355.0 million at our Peruvian operations.
This included $756.0 million of investments at our Mexican operations and $271.3 million at our Peruvian operations.
The aforementioned was partially offset by higher prices for silver (+7.6%) and sales volumes for copper (+5.0%) and silver (+6.6%). ​ ​ 114 Table of Contents Operating costs and expenses: ​ 2023-2022 : Operating costs and expenses in 2023 increased by $29.1 million compared to 2022; this was principally due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2022 ($ in millions) $ 605.9 Plus: ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 58.0 ​ - Labor 19.4 ​ ​ ​ - Operations contractors 11.9 ​ ​ ​ - Energy 9.0 ​ ​ ​ - Inventory variance 8.8 ​ ​ ​ - Repairing materials 5.9 ​ ​ ​ - Other net 20.6 ​ ​ ​ - Workers participation (17.6) ​ ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 12.8 • Increase in exploration expenses. ​ ​ 3.2 • Increase in selling, general and administrative expenses. ​ 0.2 Less: ​ ​ ​ • Decrease in cost of metals purchased from third parties. ​ ​ (45.1) Operating costs and expenses for 2023 ($ in millions) ​ $ 635.0 ​ ​ 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 consolidated statement of earnings because the adjustments to intersegment operating revenues and expenses must be taken into account.
The decrease of $60.1 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2023 ($ in millions) $ 635.0 Less: ​ ​ • Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ (43.5) ​ - Foreign currency effect (27.0) ​ ​ ​ - Operating contractors (13.7) ​ ​ ​ - Repair materials (7.5) ​ ​ ​ - Energy costs (3.8) ​ ​ ​ - Other, net (0.3) ​ ​ ​ This was partially offset by an increase in: ​ ​ ​ ​ - Workers participation 8.8 ​ ​ • Decrease in cost of metals purchased from third parties. ​ ​ (23.0) Plus: ​ ​ ​ ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 2.5 • Increase in selling, general and administrative expenses. ​ ​ 2.0 • Increase in exploration expenses. ​ 1.9 Operating costs and expenses for 2024 ($ in millions) ​ $ 574.9 ​ 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 consolidated statement of earnings because the adjustments to intersegment operating revenues and expenses must be taken into account.
These include, but are not limited to, the following: ​ ● Sales structure: In the last three years, approximately 77.6% of our revenues came from the sale of copper; 10.9% from molybdenum; 4.2% from silver; 3.1% from zinc; and 4.2% from various other products, including gold, sulfuric acid and other materials. ​ ● Copper: In 2023, representing approximately 76.7% of our sales, the LME copper price increased from an average of $ 3.63 per pound in the fourth quarter of 2022 to $ 3.71 (+2.2%) in the same period of 2023 At the beginning of the last quarter of 2023, we were expecting a market surplus for this year.
These include, but are not limited to, the following: ​ ● Sales structure: In the last three years, approximately 76.1% of our revenues came from the sale of copper; 11.4% from molybdenum; 4.5% from silver; 3.5% from zinc; and 4.5% from various other products, including gold, sulfuric acid and other materials. ​ ● Copper: In 2024, representing approximately 76.6% of our sales, the LME copper price increased from an average of $ 3.85 per pound in 2023 to $ 4.15 (+7.8%) in 2024.
We will also begin hydrogeological and geotechnical studies and assess the results of metallurgical testing at the deposit. ​ The Company continues working with the Michiquillay and La Encañada communities following the guidelines of the social agreements signed with them. ​ The above information is based on estimates only.
Geo-metallurgical studies are currently underway, and hydrological and hydrogeological studies have also begun; the geotechnical study is scheduled to begin shortly. ​ The Company continues working with the Michiquillay and La Encañada communities following the guidelines of the social agreements signed with them. ​ The above information is based on estimates only.
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 December 31, 2023, we had drilled 63,000 meters and obtained 20,137 core samples for chemichal analysis.
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 taxes and royalties to the local, regional and national governments ​ Project update: As of December 31, 2024, total progress for exploration on the project was 35%.
As of Decem ber 3 1 , 2023, the drainage works and removal of Eolic material for the main and lateral dam, as well as complementary operational works had been completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling.
As of December 31, 2023, drainage works, removal of Eolic material for the main and lateral dam, and complementary operational work had been completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, in 2024, equipment purchased to haul tailings arrived on site for operational use.
The budget for El Pilar is $310 million. ​ Project update: The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options to drive optimization. The basic engineering study has been completed and the Company is engaging in project development and onsite environmental activities.
This operation will use highly cost efficient and environmentally friendly SX-EW technology. The budget for El Pilar is $310 million. ​ The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options for optimization. The Company is engaging in project development and on-site environmental activities.
We are currently using an average copper price of $2.20 per pound and an average molybdenum price of $5.00 per pound, which reflect what we believe, for impairment test purposes, is the lower range of the current price environment.
We are currently using an average copper price of $3.50 per pound and an average molybdenum price of $10.00 per pound in our business plans, which reflect what we believe is the lower level of the current price environment.
Our cash cost per pound net of by-product 97 Table of Contents revenues for 2023 was 32.6% above the figure for the same period of 2022 and was mainly attributable to an increase in the production cost of 16.2 cents per pound and a reduction of 8 cents in by-product revenue credits. ​ 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, especially for copper, molybdenum, zinc and silver. ​ We are subject to market risks arising from the volatility of copper and other metals prices.
This reduction was mainly driven by a 4-cent decrease in production costs and by a unit cost effect that was generated by both an increase in pounds of copper produced and a 9-cent increase in by-product revenue credits. ​ 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, especially for copper, molybdenum, zinc and silver. ​ We are subject to market risks arising from the volatility of copper and other metals prices.
This decrease was primarily driven by reduced sales volumes for copper (-1.3%) and silver (-11.2%), as well as a decrease in copper prices (-3.8% – LME). However, this impact was partially offset by increased sales volumes for molybdenum (+12.8%) and higher prices for both molybdenum (+27.5%) and silver (+7.6%).
This growth was primarily driven by higher copper (+7.8% LME) and silver (+20.7%) prices, as well as increased sales volumes of copper (+10.5%), molybdenum (+33.4%), and silver (+27.4%). However, this was slightly offset by a decline in molybdenum (-10.6%) prices.
Earnings of the Company’s Peruvian branch are not subject to transition taxes since they are taxed in the United States on a current basis. ​ Dividend: On January 25, 2024, the BOD authorized a dividend of $0.80 per share paid on February 29, 2024, to shareholders of record at the close of business on February 13, 2024. ​ ​ FINANCING ​ Our total debt at December 31, 2023 was $ 6,254.6 million, compared to $6,251.2 million at December 31, 2022, net of the unamortized discount and issuance costs of notes issued under par for $96.5 million and $100.0 million as of December 31, 2023 and 2022 respectively.
Earnings of the Company’s Peruvian branch are not subject to transition taxes since they are taxed in the United States on a current basis. ​ Dividend: On January 23, 2025, the Board of Directors authorized a quarterly cash dividend of $0.70 per share of common stock and a stock dividend of 0.0073 shares of common stock per share of common stock, paid on February 27, 2025, for shareholders of record at the close of business on February 11, 2025. ​ In lieu of fractional shares, cash was distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $95.86, which is the average of the high and low share price on January 23, 2025. ​ FINANCING ​ Our total debt as of December 31, 2024 was $6,258.3 million, compared to $6,254.6 million at December 31, 2023, net of the unamortized discount and issuance costs of notes issued under par for $92.8 million and $96.5 million as of December 31, 2024 and 2023, respectively.
Once this process is completed, we will restart environmental impact assessment; conduct a diamond drilling campaign for 40,000 meters; and initiate hydrogeological and geotechnical studies 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.
We will also begin a resource verification drilling campaign of a 40,000-meter in-fill to gather additional information on the geological 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.
Our focus is to seek continuous improvement in the responsible use of natural resources while complying with applicable legal standards for prevention, mitigation, control and remediation of environmental impacts. ​ 104 Table of Contents The Company is committed to continually improve its management performance with respect to the aforementioned issues, which is why it has initiated a multi-year process to align its disclosures on climate change with the TCFD recommendations.
Our focus is to continuously improve the responsible use of natural resources while complying with legal standards for prevention, mitigation, control and remediation of environmental impacts. ​ In our commitment to improving performance on these critical issues, we have embarked on a multi-year process to align our climate change disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
In May 2016, we signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa will supply energy to the operations related to the Toquepala Expansion and to other minor projects for ten years starting on May 1, 2017 and ending after ten years of commercial operation of the Toquepala Expansion or on April 30, 2029; whichever occurs first. ​ Additionally, we have a commitment to purchase power for our Mexican operations from MGE, a subsidiary of Grupo Mexico through 2032.
In May 2016, we signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa began supplying energy for the Peruvian operations related to the Toquepala Expansion and other minor projects starting on May 1, 2017 and ending on October 31, 2029.
This debt is all denominated in dollars at fixed interest rates, weighed at 5.82%. ​ Please see Note 11 “Financing” for a discussion about the covenants requirements related to our long-term debt. ​ Capital Investment Program ​ A discussion of our capital investment program is an important part of understanding our liquidity and capital resources.
Proceeds will provide the Company with additional liquidity to finance our Mexican capital expenditures and Minera Mexico’s general corporate purposes. ​ Please see Note 11 “Financing” for a discussion about the covenants requirements related to our long-term debt. ​ Capital Investment Program ​ A discussion of our capital investment program is an important part of understanding our liquidity and capital resources.
In climate governance, we obtained in 2023 a rating of 90 out of 100, ratifying the progress that the company has made in this area, mainly associated to the publication of our Climate Policy and the supervision of the implementation of our climate change strategy, including the management of risks and opportunities associated with climate change by the Sustainable Development Committee at the Board level of Southern Copper Corporation.
This high rating recognized our efforts to publish our Climate Policy and our on-going supervision of the implementation of our climate change strategy, which evaluates management of the risks and opportunities associated with climate change by the Sustainable Development Committee at the Board level of Southern Copper Corporation.
For 2025 and the coming years, we expect to produce over 170,000 tons of zinc per year on average. ​ ● Capital investments: Capital investments were $1,008.6 million for 2023. This is 6.3% higher than in 2022, and represented 41.2% of net income. Our growth program to develop the full production potential of our Company is underway.
For silver, we expect to produce 23.1 million ounces of this metal, an increase of 10.1% compared to last year’s production. ​ ● Capital investments: Capital investments were $1,027.3 million in 2024. This is 1.9% higher than in 2023 and represented 30.3% of net income. Our growth program to develop the full production potential of our Company is underway.
Mine life is estimated at 13 years. ​ ​ Projects in Peru : ​ Quebrada Honda dam expansion – Tacna : This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowered of some facilities due to dam growth and implementation of other facilities for water recovery, among other factors.
We have made progress in our efforts to delimit the property and have installed a live fence covering 59 kilometers to date. ​ Quebrada Honda dam expansion – Tacna : This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowering of some facilities due to dam growth and development of other facilities for water recovery, among other factors.
We intend to build administrative facilities down the line.
To align with the increase in size of the tailings dam, we intend to build new administrative facilities down the line.
The decrease in net income attributable to SCC in 2023 was mainly fueled by a drop in copper prices. ​ ​ SEGMENT RESULTS ANALYSIS ​ We have three segments: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations.
The rise in net income for 2024 was largely driven by higher metal prices and increased sales volumes for our main products. ​ SEGMENT RESULTS ANALYSIS ​ We have three segments: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations.
The project includes an open-pit mine with a combined concentrator and SX-EW operations.
The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpa SX-EW operations. ​ 104 Table of Contents Project update: The Company has completed the environmental baseline study for the mine.
Net sales in 2023 were also adversely affected by an annual accounting adjustment of $185.2 million, which reflects the impact of lower metal prices on sales. ​ 112 Table of Contents Operating costs and expenses: ​ 2023-2022 : Operating costs and expenses in 2023 decreased by $59.8 million compared to 2022, which was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2022 ($ in millions) $ 2,440.7 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 106.4 ​ ​ - Repairing materials 77.7 ​ ​ ​ ​ - Reagents 20.1 ​ ​ ​ ​ - Operations contractors 19.1 ​ ​ ​ ​ - Labor costs 17.6 ​ ​ ​ ​ - Energy 13.9 ​ ​ ​ ​ - Sales expenses 12.1 ​ ​ ​ ​ - Other net 3.6 ​ ​ ​ ​ - Exchange rate variance (30.6) ​ ​ ​ ​ - Fuel (27.1) ​ ​ ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 17.0 ​ • Increase in exploration expenses. ​ ​ 10.6 ​ Less: ​ ​ ​ ​ • Decrease in cost of metals purchased from third parties. ​ ​ (193.0) ​ • Decrease in selling, general and administrative expenses. ​ (0.8) ​ Operating costs and expenses for 2023 ($ in millions) ​ $ 2,380.9 ​ ​ Mexican Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2023 2022 2021 2023 - 2022 2022 - 2021 Net sales $ 5,562.3 ​ $ 5,772.6 ​ $ 6,109.0 ​ $ (210.3) ​ $ (336.4) Operating costs and expenses (2,787.5) ​ (2,817.9) ​ (2,411.2) ​ 30.4 ​ (406.7) Operating income $ 2,774.8 ​ $ 2,954.7 ​ $ 3,697.8 ​ $ (179.9) ​ $ (743.1) ​ Net sales: ​ 2023-2022: Net sales in 2023 dropped $210.3 million compared to the figure reported at the end of 2022.
The increase of $131.2 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2023 ($ in millions) $ 2,380.9 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 142.7 ​ ​ - Labor costs, which include a $62 million signing bonus related to the collective agreements for Peruvian unions. 77.3 ​ ​ ​ ​ - Repair materials, principally heavy equipment spare parts 67.8 ​ ​ ​ ​ - Workers participation 53.5 ​ ​ ​ ​ - Operating contractors 17.3 ​ ​ ​ ​ - Energy costs 7.4 ​ ​ ​ ​ This was partially offset by a decrease in: ​ ​ ​ ​ ​ - Inventory variance (68.3) ​ ​ ​ ​ - Explosives and reagents (9.5) ​ ​ ​ ​ - Other, net (2.8) ​ ​ ​ • Increase in exploration expenses. ​ ​ 4.1 ​ Less: ​ ​ ​ ​ • Decrease in depreciation, amortization and depletion expense. ​ ​ (9.2) ​ • Decrease in cost of metals purchased from third parties. ​ ​ (6.1) ​ • Decrease in selling, general and administrative expenses. ​ (0.3) ​ Operating costs and expenses for 2024 ($ in millions) ​ $ 2,512.1 ​ ​ Mexican Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2024 2023 2022 2024 - 2023 2023 - 2022 Net sales $ 6,317.0 ​ $ 5,562.3 ​ $ 5,772.6 ​ $ 754.7 ​ $ (210.3) Operating costs and expenses (2,932.9) ​ (2,787.5) ​ (2,817.9) ​ (145.4) ​ 30.4 Operating income $ 3,384.1 ​ $ 2,774.8 ​ $ 2,954.7 ​ $ 609.3 ​ $ (179.9) ​ Net sales: ​ 2024-2023: Net sales in 2024 increased by $754.7 million compared to 2023.
The Company is currently preparing studies for the port, power lines, townsites and auxiliary facilities. ​ Los Chancas—Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit.
Currently, more detailed engineering is being conducted for the concentrator, SX-EW plant as well as for water desalination, logistics infrastructure and power delivery. ​ Los Chancas—Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit.
In this context, the overall impact on the costs of sales was relatively moderate, with opposing factors balancing out variations. ​ In 2023, the net income attributable to SCC was $2,425.2 million, reflecting a 8.1% decrease from the 2022 net income. This decline was primarily driven by increased costs of sales and a minor reduction in sales volumes toward year-end.
In this context, the overall impact on the cost of sales was relatively moderate, as opposing factors largely balanced out fluctuations, resulting in a 3.3% increase compared to the figures recorded in 2023. ​ In 2024, net income attributable to SCC was $3,376.8 million, reflecting a 39.2% increase from the 2023 net income.
In addition, the net sales in 2023 were adversely affected by an annual accounting adjustment of $220.8 million, reflecting the impact of lower metal prices on sales. ​ ​ 113 Table of Contents Operating costs and expenses: ​ 2023-2022 : Operating costs and expenses in 2023 decreased by $30.4 million compared to 2022, which was mainly attributable to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2022 ($ in millions) $ 2,817.9 Less: ​ ​ • Decrease in cost and volume of metals purchased from third parties. ​ (29.8) • Decrease in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ (17.0) ​ - Workers participation (116.4) ​ ​ ​ - Energy (96.1) ​ ​ ​ - Leachable material (47.4) ​ ​ ​ - Fuel 52.4 ​ ​ ​ - Repairing materials 43.0 ​ ​ ​ - Inventory variance 33.1 ​ ​ ​ - Operations contractors 29.6 ​ ​ ​ - Labor 25.7 ​ ​ ​ - Water 25.3 ​ ​ ​ - Sales expenses 21.6 ​ ​ ​ - Other net 12.2 ​ ​ Plus: ​ ​ • Increase in depreciation, amortization and depletion expense. ​ 9.1 • Increase in selling, general and administrative expenses. ​ 4.2 • Increase in exploration expenses. ​ ​ 3.1 Operating costs and expenses for 2023 ($ in millions) ​ $ 2,787.5 ​ ​ IMMSA unit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ 2023 ​ 2022 ​ 2021 2023 - 2022 2022 - 2021 Net sales ​ $ 630.8 ​ $ 666.5 ​ $ 600.2 ​ $ (35.7) ​ $ 66.3 Operating costs and expenses ​ (635.0) ​ (605.9) ​ (511.4) ​ (29.1) ​ (94.5) Operating income ​ $ (4.2) ​ $ 60.6 ​ $ 88.8 ​ $ (64.8) ​ $ (28.2) ​ Net sales: ​ 2023-2022: Net sales in 2023 dropped $35.7 million versus the figure in 2022.
(72.2) ​ ​ ​ - Workers participation (19.8) ​ ​ ​ - Water (13.9) ​ ​ • Increase in cost and volume of metals purchased from third parties. ​ 35.7 • Increase in depreciation, amortization and depletion expense. ​ 19.7 • Increase in exploration expenses. ​ 2.5 • Increase in selling, general and administrative expenses. ​ ​ 0.8 Operating costs and expenses for 2024 ($ in millions) ​ $ 2,932.9 ​ ​ Mexican Underground Operations (IMMSA): ​ IMMSA unit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ 2024 ​ 2023 ​ 2022 2024 - 2023 2023 - 2022 Net sales ​ $ 704.1 ​ $ 630.8 ​ $ 666.5 ​ $ 73.3 ​ $ (35.7) Operating costs and expenses ​ (574.9) ​ (635.0) ​ (605.9) ​ 60.1 ​ (29.1) Operating income ​ $ 129.2 ​ $ (4.2) ​ $ 60.6 ​ $ 133.4 ​ $ (64.8) ​ Net sales: ​ 2024-2023: Net sales in 2024 increased by $73.3 million compared to 2023.
We continue to engage in social and environmental improvements for the local communities and work on the project´s environmental impact assessment. ​ Project update: In a coordinated effort with the Peruvian authorities the Company has made significant progress in eradicating illegal mining activities at our concession.
The estimated capital investment is $2,600 million and operations are expected to begin 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: In coordination with the Peruvian authorities, efforts continue to eradicate illegal mining activities.
Additionally, the investor-led Climate Action 100+ initiative recognized our efforts to develop an emissions reduction roadmap and awarded us a full compliance rating in the Task Force on Climate-Related Financial Disclosures (TCFD) category.
In a repeat of last year’s performance, we scored 100 in the Task Force on Climate-related Financial Disclosures (“ TCFD”) category in 2024, which assesses management and disclosure of financial risks and opportunities related to climate change. ​ In addition, the investor-led Climate Action 100+ initiative recognized our efforts to develop an emissions reduction roadmap and gave us a full compliance rating in the TCFD category for the second consecutive year. ​ Since 2016, SCC has been participating in Carbon Disclosure Project (“CDP”) annual evaluation of Climate Change, and in 2022, we participated in our first evaluation of Water Security.
During this event, 17 original short films, which were produced by some of the 747 students from communities that participated in the workshop, were screened. ​ CLIMATE CHANGE ​ SCC recognizes the importance and urgency of tackling climate change, and the Company is committed to support the objective of the Paris Agreement on climate change, preserve the environment, minimize the environmental footprint of our operations, and efficiently manage climate-related risks and opportunities.
This exhibition, which showcases the results of three years of portraits from the Traveling Photography Workshop, highlights traditions, landscapes and daily lives of mining communities. ​ CLIMATE CHANGE ​ SCC recognizes the importance and urgency of tackling climate change and is committed to supporting the objective of the Paris Agreement, preserving the environment, minimizing the environmental footprint of our operations, and efficiently managing climate-related risks and opportunities.
This increase was due to higher production at all our mines, with the exception of Toquepala mine (-17.8%), where grades and recoveries dropped. ​ Mined zinc production rose 9.2 % in 2023, driven by increases in production at our Santa Barbara (+29.0%) and Charcas (+9.0%) mines due to higher grades. ​ Mined silver production fell 0.8 % in 2023 in YoY terms; this was mainly due to lower production at our Mexican operations, which was partially offset by an increase in production at our Peruvian operations. ​ Operating Cash Costs: An overall benchmark used by us and a common industry metric to measure performance is operating cash costs per pound of copper produced.
This growth was fueled by higher production across all our operations, driven primarily by improved ore grades, growth in recoveries, and a larger volume of processed mineral. ​ Operating Cash Costs: An overall benchmark used by us and a common industry metric to measure performance is operating cash costs per pound of copper produced.
We do not intend for this internet link to be an active link or to otherwise incorporate the contents of the website into this Report on Form 10-K. ​ Since 2016, SCC has been participating annually in the evaluation on Climate Change of CDP and in 2022, for the first time in the evaluation of Water Security.
We do not intend for this internet link to be an active link or to otherwise incorporate the contents of the website into this Report on Form 10-K. ​ Operating discipline and the strength of our preventive safety culture led to a reduction in the number of employee accidents involving lost-time injuries in 2024 by more than a quarter than those in in 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeRecent inflation and exchange rate variances for the three years ended December 31, 2023 are provided in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ 2023 2022 2021 ​ Peru: ​ Peruvian inflation rate 3.2 % 8.5 % 6.4 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 3.820 3.998 3.624 ​ Closing exchange rate 3.713 3.820 3.998 ​ Appreciation/(devaluation) 2.8 % 4.5 % (10.3) % ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ Mexican inflation rate 4.7 % 7.8 % 7.4 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 19.362 20.584 19.949 ​ Closing exchange rate 16.894 19.362 20.584 ​ Appreciation/(devaluation) 12.7 % 5.9 % (3.2) % ​ Change in monetary position: ​ Assuming an exchange rate variance of 10% at December 31, 2023, we estimate our net monetary position in Peruvian sol and Mexican peso would increase (decrease) our net earnings as follows: ​ ​ ​ ​ ​ Effect in net ​ earnings ​ ($ in millions) Appreciation of 10% in U.S. dollar vs.
Biggest changeRecent inflation and exchange rate variances for the three years ended December 31, 2024 are provided in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ 2024 2023 2022 ​ Peru: ​ Peruvian inflation rate 2.0 % 3.2 % 8.5 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 3.713 3.820 3.998 ​ Closing exchange rate 3.770 3.713 3.820 ​ Appreciation/(devaluation) (1.5) % 2.8 % 4.5 % ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ Mexican inflation rate 4.2 % 4.7 % 7.8 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 16.894 19.362 20.584 ​ Closing exchange rate 20.268 16.894 19.362 ​ Appreciation/(devaluation) (20.0) % 12.7 % 5.9 % ​ Change in monetary position: ​ Assuming an exchange rate variance of 10% at December 31, 2024, we estimate our net monetary position in Peruvian sol and Mexican peso would increase (decrease) our net earnings as follows: ​ ​ ​ ​ ​ Effect in net ​ earnings ​ ($ in millions) Appreciation of 10% in U.S. dollar vs.
Mexican peso ​ $ 27.5 ​ The net monetary position is net of those assets and liabilities that are sol or peso denominated as of December 31, 2023. ​ Short-term investments: ​ For additional information on our trading securities and available-for-sale investments, refer to Note 3 Short-term Investments in Part II, Item 8 of this annual report. 120 Table of Contents Derivative Instruments: ​ From time to time, we use derivative instruments to manage our cash flows exposure to changes in commodity prices.
Mexican peso ​ $ 11.3 ​ The net monetary position is net of those assets and liabilities that are sol or peso denominated as of December 31, 2024. ​ Short-term investments: ​ For additional information on our trading securities and available-for-sale investments, refer to Note 3 Short-term Investments in Part II, Item 8 of this annual report. 124 Table of Contents Derivative Instruments: ​ From time to time, we use derivative instruments to manage our cash flows exposure to changes in commodity prices.
The Company did not identify any ineffective portions of these derivatives. As of December 31, 2023, the Company held no derivative instruments. ​ ​ 121 Table of Contents
The Company did not identify any ineffective portions of these derivatives. As of December 31, 2024, the Company held no derivative instruments. ​ ​ 125 Table of Contents
Peruvian sol ​ $ 18.3 Devaluation of 10% in U.S. dollar vs. Peruvian sol ​ $ (22.3) Appreciation of 10% in U.S. dollar vs. Mexican peso ​ $ (22.5) Devaluation of 10% in U.S. dollar vs.
Peruvian sol ​ $ 33.9 Devaluation of 10% in U.S. dollar vs. Peruvian sol ​ $ (41.4) Appreciation of 10% in U.S. dollar vs. Mexican peso ​ $ (9.3) Devaluation of 10% in U.S. dollar vs.

Other SCCO 10-K year-over-year comparisons