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What changed in SOUTHERN COPPER CORP/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of SOUTHERN COPPER CORP/'s 2024 and 2025 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 2025 report.

+501 added−509 removedSource: 10-K (2026-02-27) vs 10-K (2025-03-03)

Top changes in SOUTHERN COPPER CORP/'s 2025 10-K

501 paragraphs added · 509 removed · 391 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

62 edited+26 added−16 removed66 unchanged
Biggest changeThe 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.
Biggest changeThe 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 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 34.83 ​ 22.10 ​ 28.25 ​ 24.13 ​ 19.18 ​ 21.21 ​ 1.47 ​ 1.04 ​ 1.26 2025—1st Q 34.90 ​ 29.81 ​ 32.31 ​ 21.15 ​ 19.55 ​ 20.43 ​ 1.35 ​ 1.22 ​ 1.29 2025—2nd Q 37.09 ​ 29.12 ​ 33.62 ​ 21.98 ​ 19.60 ​ 20.57 ​ 1.28 ​ 1.14 ​ 1.20 2025—3rd Q 46.61 ​ 36.08 ​ 39.56 ​ 26.03 ​ 21.93 ​ 24.30 ​ 1.37 ​ 1.21 ​ 1.28 2025—4th Q 77.37 ​ 46.00 ​ 54.48 ​ 25.45 ​ 21.00 ​ 22.75 ​ 1.52 ​ 1.37 ​ 1.44 2025 77.37 ​ 29.12 ​ 39.99 ​ 26.03 ​ 19.55 ​ 22.01 ​ 1.52 ​ 1.14 ​ 1.30 ​ 7 Table of Contents The per ounce COMEX silver price over the last 5- and 10-year periods averaged $26.75 and $22.03, respectively.
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.
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.
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.
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. Our mining concessions have a 50-year term that can be renewed for another 50 years.
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.
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 2026 Strategic Workplace Plan with six strategic initiatives: ​ 1.
Since 1996, our common stock has been listed on both the New York and Lima Stock Exchanges. ​ Our Peruvian copper operations involve mining, milling and flotation of copper ore to produce copper concentrates and molybdenum concentrates; the smelting of copper concentrates to produce blister and anode copper; and the refining of anode copper to produce copper cathodes.
Since 1996, our common stock has been listed on both the New York and Lima Stock Exchanges. ​ Our Peruvian copper operations involve mining, milling and flotation of copper ore to produce copper; the smelting of copper concentrates to produce blister and anode copper; and the refining of anode copper to produce copper cathodes.
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.
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, 2024 through December 31, 2025, 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.
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.
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, 2025, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corporation (“AMC”), owned 88.9% of our capital stock.
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.
For additional information on our community programs, refer to Corporate Social Responsibility under Note 13 “Commitments and Contingencies” to the consolidated financial statements. ​ 2026 Strategic Workplace Plan ​ We strive to create a workplace culture where our personnel feel included, welcomed and valued for their personal and professional contributions.
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.
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, 2025.
We have energy management committees at most of our mines, which meet periodically to discuss consumption and to develop measures directed at saving energy. Alternative sources are also being analyzed at the corporate level, including both traditional and renewable energy sources.
We have energy management committees at most of our mines, which meet periodically to discuss consumption and to develop measures aimed at saving energy. Alternative sources are also being analyzed at the corporate level, including both traditional and renewable energy sources.
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.
Additionally, we have two licenses for the use of non-desalinated seawater for the Ilo smelter plant. ​ 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.
(“Eolica”), a windfarm energy producer that is an indirect subsidiary of Grupo Mexico. In August 2013, IMMSA and other of the Company’s mining operations entered into a purchase agreement and in late 2014 started to purchase electricity from Eolica. Due to the nature of the production process there is not a fixed power capacity contracted.
(“Eolica”), a windfarm energy producer that is an indirect subsidiary of Grupo Mexico. In August 2013, IMMSA and other of the Company’s 13 Table of Contents mining operations entered into a purchase agreement and in late 2014 started to purchase electricity from Eolica. Due to the nature of the production process, there is not a fixed power capacity contracted.
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.
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 2025, 2024 and 2023, were approximately $6.3 million, $5.2 million and $3.4 million, respectively.
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.
In 2025, Eolica el Retiro supplied approximately 16.5% 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.
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.
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 relations.
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 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.
Our ability to consistently fulfill customer demand is underpinned by our substantial production capacity. ​ For additional information on sales please see “Revenue recognition” in Note 2 “Summary of Significant Accounting Policies” and Note 19 “Segment and Related Information” of the consolidated financial statements. ​ ​ METALS PRICES ​ Prices for our products are principally a function of supply and demand and, with the exception of molybdenum, are established on COMEX and LME.
Our ability to consistently fulfill customer demand is underpinned by our substantial production capacity. ​ For additional information on sales please see “Revenue recognition” in Note 2 “Summary of Significant Accounting Policies” and Note 18 “Segment and Related Information” of the consolidated financial statements. ​ 6 Table of Contents ​ METALS PRICES ​ Prices for our products are principally a function of supply and demand and, with the exception of molybdenum, are established on COMEX and LME.
The CODM focuses on operating income and on total assets as measures of performance to evaluate different segments and to make decisions to allocate resources to the reported segments.
The CODM focuses on operating income and on total assets as measures to evaluate different segments and to make decisions to allocate resources to the reported segments.
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.
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 April 30, 2029.
In July 2014, we entered into a power purchase agreement for 120MW with a private power generator Kallpa Generacion S.A. (“Kallpa”), which began supplying energy to our Peruvian operations for a ten-year period that started on April 17, 2017.
In July 2014, we entered into a power purchase agreement for 120MW with a private power generator Kallpa Generacion S.A. (“Kallpa”), which began supplying energy to our Peruvian operations for a ten-year 12 Table of Contents period that started on April 17, 2017.
As of the date hereof, the Company believes that its facilities in Peru and Mexico are in material compliance with all applicable environmental, mining and other laws and regulations in their respective jurisdictions. ​ On September 15, 2024, the Mexican Congress approved a constitutional reform to the Judicial Branch that replaces the existing appointment-based system for selecting judges with a system of popular election of Congress pre-selected 13 Table of Contents judges.
As of the date of this report, the Company believes that its facilities in Peru and Mexico are in material compliance with all applicable environmental, mining and other laws and regulations in their respective jurisdictions. ​ On September 15, 2024, the Mexican Congress approved a constitutional reform to the Judicial Branch that replaces the existing appointment-based system for selecting judges with a system of popular election of Congress pre-selected judges.
(“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.
(“MGE”), a subsidiary of Grupo Mexico which has two power plants designed to supply power to La Caridad and Buenavista units. In 2025, MGE supplied 11.5% 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.
This group is identified as the IMMSA unit and sales of its products are recorded as revenue from the IMMSA unit. ​ Financial information is periodically prepared for each of the three segments and the results are reported to the Chief Operating Decision Maker (“CODM”) on a segment basis.
This group is identified as the IMMSA unit and sales of its products are recorded as revenue from the IMMSA unit. ​ Financial information is periodically prepared for each of the three segments and the results are reported to the Chief Operating Decision Maker (“CODM”).
For a discussion of labor matters, refer to the information contained under the caption “Labor matters” in Note 13 “Commitments and Contingencies” of the consolidated financial statements. ​ Employees of La Caridad and Buenavista units reside in townsites at Nacozari and Cananea, where we have built approximately 1,800 houses and apartments.
For further discussion of this labor matter, refer to the information contained under the caption “Labor matters” in Note 13 “Commitments and Contingencies” of the consolidated financial statements. ​ Employees of La Caridad and Buenavista units reside in townsites at Nacozari and Cananea, where we have built approximately 1,800 houses and apartments.
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”).
In 2025, Parque Eolico de Fenicias supplied approximately 98.1% 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”).
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.
In alignment with our commitment to community development, over 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.
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.
Holding fees for mining concessions can be from $0.52 to $11.43 per hectare depending on the start date of the mining concession. Fees paid during 2025, 2024 and 2023 were approximately $11.4 million, $11.6 million and $11.7 million, respectively. In addition, all of our operating units in Mexico have water concessions that are in full force and effect.
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.
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 fostering a cohesive and high-performance organizational culture grounded in our mission, vision, and values, while continuously strengthening our position as an employer of choice.
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.
For more information on tax matters, refer to Note 7 “Income taxes” of the consolidated financial statements. ​ MINING RIGHTS AND CONCESSIONS ​ Peru: ​ We have 164,805 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 27,413 ​ 27,431 ​ 4,670 ​ 105,291 164,805 ​ 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 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.
For additional information, see Item 1A “Risk Factors—The copper mining industry is highly competitive.” ​ HUMAN CAPITAL RESOURCES ​ As of December 31, 2025, we had 16,617 employees, approximately 64.4% of whom are covered by a Collective Labor Agreement and represented by 16 collective bargaining agreements with ten different labor unions.
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.
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. Furthermore, approximately 12,400 contractors support our operations.
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.
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.
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 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 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 5.12 ​ 3.69 ​ 4.22 ​ 4.92 ​ 3.67 ​ 4.15 2025—1st Q 5.22 ​ 4.04 ​ 4.57 ​ 4.53 ​ 3.94 ​ 4.24 2025—2nd Q 5.07 ​ 4.13 ​ 4.72 ​ 4.59 ​ 3.87 ​ 4.32 2025—3rd Q 5.80 ​ 4.33 ​ 4.83 ​ 4.68 ​ 4.33 ​ 4.44 2025—4th Q 5.77 ​ 4.83 ​ 5.15 ​ 5.68 ​ 4.66 ​ 5.03 2025 5.80 ​ 4.04 ​ 4.82 ​ 5.68 ​ 3.87 ​ 4.51 ​ The per pound COMEX copper price over the last 5- and 10-year periods averaged $4.23 and $3.46, respectively.
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.
Communication: to implement awareness initiatives on inclusivity, equity, and non-discrimination to foster diverse, inclusive, and safe work environments. 2. Training: to deliver comprehensive training programs to strengthen awareness, understanding, and respect for inclusivity and equity, while promoting collaborative practices that support inclusive and equitable teams. 3.
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.
This award acknowledges our organization's dedication to fostering an inclusive and innovative work culture that prioritizes the well-being of its employees. ​ In 2025, our Metallurgical Complex in Sonora won the following awards, competing against over 100 organizations in Mexico and Latin America in the 500 to 5,000 employees category: • 8th place in The Best Workplaces in Mexico 2025 • 7th place in The Best Workplaces for Women in Mexico 2025 • 4 th place in The Best Workplace Regional Northwest 2025. • 94th place in The Best Workplaces in Latin America 2025 • Recognition among the 100 Best Chief Human Resources Officers in Mexico 2025 • Recognition among the 100 Best Chief Executive Officers in Mexico 2025 ​ The Company has a corporate social responsibility policy that is designed to integrate its operations with local communities in our areas of influence.
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.
The per pound LME copper price during the same periods averaged $4.15 and $3.42, respectively. ​ The table below shows the high, low and average prices per pound with the exception of silver, which is priced per ounce.
These are common measures in the mining industry. ​ Segment information is included in Item 2 “Properties.” More information on business segment and segment financial information is included in Note 19 “Segment and Related Information” of the consolidated financial statements. ​ ​ CAPITAL INVESTMENT PROGRAM AND EXPLORATION ACTIVITIES ​ For a description of our capital investment program, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Investment Program” and for our exploration activities, see Item 2 “Properties—Explorations Activities.” ​ ​ PRINCIPAL PRODUCTS AND MARKETS ​ Copper is primarily used in the building and construction industries; in the power generation and transmission industry; and in the electrical and electronic products; and, to a lesser extent, in industrial machinery and equipment; consumer products; and in the automotive and transportation industries.
Additionally, the CODM of the Company reviews on a regular basis the execution of forecasted capital expenditures and the evolution of total asset amounts in each segment to make decisions about operating and capital resource allocation for each segment. ​ Segment information is included in Item 2 “Properties.” More information on business segment and segment financial information is included in Note 18 “Segment and Related Information” of the consolidated financial statements. ​ ​ CAPITAL INVESTMENT PROGRAM AND EXPLORATION ACTIVITIES ​ For a description of our capital investment program, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Investment Program” and for our exploration activities, see Item 2 “Properties—Explorations Activities.” ​ ​ PRINCIPAL PRODUCTS AND MARKETS ​ Copper is primarily used in the building and construction industries; in the power generation and transmission industry; and in the electrical and electronic products; and, to a lesser extent, in industrial machinery and equipment; consumer products; and in the automotive and transportation industries.
This repurchase program has no expiration date and may be modified or discontinued at any time.
This repurchase program does not have an expiration date and may be modified or discontinued at any time.
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.
During 2025, we delivered more than 573,000 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.
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.
Our townsite and housing complexes provide schools, medical facilities, churches, banks, shops, social clubs, recreational facilities and other services. ​ Mexico ​ As of December 31, 2025, 71.2% of our 11,156 Mexican employees were unionized. These individuals are represented by ten collective bargaining agreements with four labor unions.
We own 99.96% of Minera Mexico. ​ 4 Table of Contents In 2008, our Board of Directors (“BOD”) authorized a $500 million share repurchase program that has since been increased by the BOD and is currently authorized to $3 billion.
We own 99.998% of Minera Mexico. ​ 4 Table of Contents In 2008, our Board of Directors authorized a $500 million share repurchase program that has since been increased by the Board of Directors and is currently authorized for up to $3 billion. No repurchases have been made under this program since the third quarter of 2016.
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.
Through December 31, 2025, we have repurchased an aggregate of 119.5 million shares of our common stock for an aggregate cost of $2.9 billion. These repurchased shares may be used for general corporate purposes. We may purchase additional shares under the program from time to time, based on market conditions and other factors.
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.
Our initiatives are designed to generate long-term value for key stakeholders and the communities in which we operate by enhancing productivity and innovation, advancing human development, promoting environmental stewardship, and implementing forward-looking, sustainable 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.
In the fourth quarter of 2024, the Company signed long-term extensions of the collective bargaining agreements with these five unions, each lasting six years and commencing on the day after the expiration of the prior agreements, in accordance with the law. This allows the Company to maintain consistency in economic benefits and working conditions for over 2,000 workers.
These agreements govern benefits related to compensation and working conditions. ​ In the fourth quarter of 2024, the Company signed long-term extensions of the collective bargaining agreements with five of its six unions, each for a term of six years, with such term commencing on the day after the expiration of the prior agreements, in accordance with the law.
Hiring: Strategically utilize data from inclusivity and equity metrics to promote inclusivity, equity and excellence representation across all organizational levels and business units. 6.
Hiring: to strategically leverage inclusivity and equity data to design recruitment practices and promote fair representation, equity, and excellence across all organizational levels and business units. 6.
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 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.
Our contract prices also reflect any negotiated premiums and the costs of freight and other factors. 6 Table of Contents From time to time, we have entered into hedging transactions to provide partial protection against future decreases in the market price of metals and we may do so under certain market conditions.
From time to time, we have entered into hedging transactions to provide partial protection against future decreases in the market price of metals and we may do so under certain market conditions.
Housing, maintenance and utility services are provided to most of our employees for a nominal cost.
We also have 90 houses in Ilo for staff personnel. Housing, maintenance and utility services are provided to most of our employees for a nominal cost.
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.
We boosted visibility of our internal career opportunities by leveraging internal platforms to promote employee development and professional growth. ​ 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.
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 per pound Platt’s Metals Week Dealer Oxide molybdenum price during the same periods averaged $20.21 and $14.73, respectively, while the per pound LME zinc price averaged $1.33 and $1.24, respectively. ​ 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.
We have two types of mining concessions in Peru: metallic and non-metallic concessions. ​ Mexico: ​ In Mexico we have 502,688 hectares in concessions from the Mexican government for our exploration and exploitation activities as outlined on the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ IMMSA La Caridad Buenavista Projects Total ​ (hectares) Mine concessions 223,313 ​ 103,821 ​ 93,706 ​ 81,848 502,688 ​ We believe that our Mexican concessions are in full force and in effect under applicable Mexican laws and that we are in compliance with all material terms and requirements applicable to these concessions.
We also own all of the processing facilities of our Peruvian operations and the land on which they are built. 14 Table of Contents ​ Mexico: ​ In Mexico we have 505,788 hectares in concessions from the Mexican government for our exploration and exploitation activities as outlined on the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ IMMSA ​ ​ ​ La Caridad ​ ​ ​ Buenavista ​ ​ ​ Projects ​ ​ ​ Total ​ (hectares) Mine concessions 223,124 ​ 103,966 ​ 93,706 ​ 84,993 505,788 ​ We believe that our Mexican concessions are in full force and in effect under applicable Mexican laws and that we are in compliance with all material terms and requirements applicable to these concessions.
As a result of these agreements, the Company made a signing payment to each worker, totaling $62 million approximately. ​ Meetings with the remaining union were held in accordance with the established collective bargaining procedure, as required by labor law. In February 2025, the Company signed a three-year extension of the collective bargaining agreement with this union.
As a result of entering into these agreements, in the fourth quarter of 2024, the Company paid signing bonuses to each worker belonging to the corresponding unions, totaling approximately $62 million. ​ In February 2025, the Company signed a three-year extension of the collective bargaining agreement with the remaining union.
Prices for our molybdenum products are established by reference to the publication Platt’s Metals Week.
Prices for our molybdenum products are established by reference to the publication Platt’s Metals Week. Our contract prices also reflect any negotiated premiums and the costs of freight and other factors.
Results of operations are directly affected by metal prices on commodity exchanges, which can be volatile. ​ CAUTIONARY NOTE REGARDING DISCLOSURE OF MINERAL PROPERTIES ​ Mineral Reserves and Resources ​ In our public filings in the U.S. and Peru and in certain other announcements not filed with the SEC, we disclose proven and probable reserves and measured, indicated and inferred mineral resources, each as defined in Item 1300 of Regulation S-K (“S-K 1300”).
We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. ​ 15 Table of Contents CAUTIONARY NOTE REGARDING DISCLOSURE OF MINERAL PROPERTIES ​ Mineral Reserves and Resources ​ In our public filings in the U.S. and Peru and in certain other announcements not filed with the SEC, we disclose proven and probable reserves and measured, indicated and inferred mineral resources, each as defined in Item 1300 of Regulation S-K (“S-K 1300”).
Data generation and statistics: Establish and maintain comprehensive data collection systems to measure, analyze, and monitor inclusivity and equity metrics and strategic outcomes. 4. Adaptations to infrastructure: Adapt the workplace to be compatible with and inclusive of the needs of our personnel. 5.
Data generation and statistics: to establish and maintain robust data collection and reporting mechanisms to measure, analyze, and monitor inclusivity and equity indicators and strategic outcomes. 10 Table of Contents 4. Modifications of infrastructure: to adapt workplace infrastructure to ensure accessibility and alignment with the diverse needs of our workforce. 5.
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 has collective bargaining agreements with each of the six unions, the earliest of which expires in 2027 and the latest, in 2033.
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.
Forward-looking statements in this report and in other Company statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions, production and sales volumes, 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.
Retention: Implement actions that foster an environment where people feel valued, supported, and safe. ​ In 2024, we implemented a comprehensive online training program for non-unionized personnel in Mexico and Peru with the aim of fostering workplace culture and enhance our employees’ understanding of workplace inclusivity and equity principles. ​ We have established procedures to uphold a Zero Tolerance policy for workplace harassment in Mexico and Peru.
Retention: to implement initiatives that foster an environment where employees feel valued, supported, and safe, promoting engagement and long-term retention. ​ We have established and implemented formal procedures to uphold a Zero Tolerance Policy for workplace harassment in Mexico and Peru, reinforcing our commitment to a safe, respectful, and violence-free work environment.
Additionally, the Company reached agreements with these five unions to ensure the uninterrupted operation of its facilities, preventing stoppages by unions and workers for a period of six years.
Additionally, the Company reached an agreement with each of the six unions to ensure uninterrupted operation of its facilities, preventing stoppages by unions and unionized workers during the extension periods agreed to in each extension agreement. ​ 11 Table of Contents In the second quarter of 2025, the Company began implementing the collective bargaining agreements with each of the six unions.
These procedures were disclosed in Mexico in 2024 and aim to foster a violence-free environment; promote fair and equitable dispute resolution; support good faith complaints with a policy of non-retaliation; establish secure and confidential channels for reporting incidents; implement measures to investigate and address allegations; and ensure the safety and well-being of all employees. ​ CODE OF ETHICS ​ All our employees, including our new hires, must certify compliance with the Code of Ethics yearly by reviewing and signing this principal document, which serves as our primary guidance tool for professional conduct in terms of ethical obligations, both in our business dealings and our interpersonal relationships. ​ Peru ​ As of December 31, 2024, 56.9% of our 5,120 Peruvian employees were unionized.
This initiative reinforces our commitment to inclusion and gender equity, celebrating role models who strengthen our organizational culture and motivate future generations of women across the organization. ​ CODE OF ETHICS ​ All of our employees, including our new hires, must certify compliance with the Code of Ethics yearly by reviewing and signing this principal document, which serves as our primary guidance tool for professional conduct in terms of ethical obligations, both in our business dealings and our interpersonal relationships. ​ LABOR MATTERS ​ For additional discussion of labor matters, refer to the information contained in Note 13 “Commitments and Contingencies” of the consolidated financial statements. ​ Peru ​ As of December 31, 2025, 50.8% of our 5,432 Peruvian employees were unionized.
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.
Meetings with union representatives have been held to coordinate the execution of the agreed provisions and to agree on additional measures, ensuring that operations can proceed normally through at least 2027. ​ Our employees at the Toquepala and Cuajone mining units reside in the 3,700 houses and apartments that we have built at the townsites.
Our website also includes the Company’s Corporate Governance guidelines and the charters of our main Board Committees.
Our website also includes the Company’s Corporate Governance guidelines and the charters of our main Board Committees. However, the information found on our website is not part of this or any other report. ​ CAUTIONARY STATEMENT ​ This report contains forward-looking statements in which we discuss our potential future performance, operations and projects.
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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.
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Since the second quarter of 2024, the Board of Directors has approved quarterly stock dividends, and a portion of these repurchased shares have been used to pay these dividends to our common stockholders. ​ REPUBLIC OF PERU AND MEXICO ​ Our revenues are derived primarily from our operations in Peru and Mexico.
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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.
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These are common measures in the mining industry. ​ The CODM of the Company evaluates the performance of each of the segments on a regular basis by assessing the budget-to-actual and actual to prior period variances in production, net sales and operating income.
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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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As part of this commitment, in 2025 we undertook a comprehensive assessment of our organizational culture to deepen our understanding of employee engagement and to inform targeted actions that enhance employee experience.
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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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This approach enables us to create sustainable value for our people within a safe, inclusive, and collaborative work environment, where individuals feel genuinely connected to the Company’s purpose and values.
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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.
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Integrity, respect, and accountability remain central to our culture and are embedded in our everyday decisions and operations. ​ We place a strong emphasis on the continuous development of our employees by recognizing their contributions, while maintaining a disciplined, results-driven focus.
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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 offer productivity bonuses to our employees, which motivates them to grow the Company’s results. ​ 8 Table of Contents Health and Safety ​ Our Comprehensive Health Program, in coordination with our safety department, focuses on risk prevention and the promotion of well-being through periodic medical evaluations and health education initiatives.
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In 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.
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Our objective is to protect our employees; strengthen a culture of self-care; and ensure operational continuity, productivity, and organizational sustainability. ​ During 2025, over 34,000 health initiatives were carried out, including campaigns, workshops, talks, self-help groups, and early detection activities, among others. ​ In Mexico, we conducted 223 health campaigns that benefited 5,007 employees, focused on the early detection of chronic conditions such as diabetes, hypertension, dyslipidemia, as well as various cancers, including breast, cervical, and prostate cancer, alongside other preventive screenings.
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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, over 11,000 vaccines against influenza, pneumococcus, yellow fever, tetanus, and COVID-19 were administered, and 300 food handlers were vaccinated against typhoid fever and hepatitis A, strengthening preventive and comprehensive health care. ​ Preventive and self-care initiatives were bolstered through over 9,200 health workshops, talks, and training sessions focusing on promoting well-being and preventing key occupational 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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These efforts reached over 69,000 participants, contributing to risk reduction, health protection, and operational continuity.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe 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.
Biggest changeWe cannot assure investors that future tariff actions, trade tensions, or related regulatory changes will not adversely affect our product prices, stock price, financial condition or results of operations. ​ Although we maintain risk management and mitigation programs, we cannot assure that these measures will successfully prevent or lessen the impact of political, regulatory, and trade-related risks on our operations and financial results. ​ Other international risks ​ We are a company with substantial assets located outside of the United States.
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.
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, 2025, Grupo Mexico owned indirectly 88.9% of our capital stock.
We conduct production operations in Peru and Mexico and exploration activities in these countries as well as in Chile, Argentina and Ecuador. Accordingly, in addition to the usual risks associated with conducting business in foreign countries, our business may be adversely affected by political, economic and social uncertainties in each of these countries.
We conduct production operations in Peru and Mexico and exploration activities in these countries as well as in Chile and Argentina. Accordingly, in addition to the usual risks associated with conducting business in foreign countries, our business may be adversely affected by political, economic and social uncertainties in each of these countries.
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.
Given copper's crucial role in electrification and the generation of clean energies, there exists an increasing expectation from both corporate entities 19 Table of Contents 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.
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.
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. ​ 27 Table of Contents 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.
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.
For further detailed discussion of pending litigation, please see Note 13 “Commitment and Contingencies—Litigation matters” of the consolidated financial statements. ​ 24 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.
For additional information regarding the share ownership of, and our relationships with, Grupo Mexico and its affiliates, see Note 18 “Related Party Transactions” to the consolidated financial statements. ​ Unanticipated litigation or negative developments in pending litigation or with respect to other contingencies may adversely affect our financial condition and results of operations. ​ We are currently, and may in the future become, subject to litigation, arbitration or other legal proceedings with other parties.
For additional information regarding the share ownership of, and our relationships with, Grupo Mexico and its affiliates, see Note 17 “Related Party Transactions” to the consolidated financial statements. ​ Unanticipated litigation or negative developments in pending litigation or with respect to other contingencies may adversely affect our financial condition and results of operations. ​ We are currently, and may in the future become, subject to litigation, arbitration or other legal proceedings with other parties.
There can be no assurance that the Company will be able to recognize the expected future benefits of deferred tax assets; this inability could have a material adverse effect on the Company’s financial results. ​ Operational risks ​ Our actual reserves and resources may not conform to our current estimates of our ore deposits and our long-term viability depends on our ability to replenish mineral reserves and resources. ​ There is a degree of uncertainty attributable to the estimation of reserves and resources.
There can be no assurance that the Company will 17 Table of Contents be able to recognize the expected future benefits of deferred tax assets; this inability could have a material adverse effect on the Company’s financial results. ​ Operational risks ​ Our actual reserves and resources may not conform to our current estimates of our ore deposits and our long-term viability depends on our ability to replenish mineral reserves and resources. ​ There is a degree of uncertainty attributable to the estimation of reserves and resources.
Furthermore, disaster recovery plans may not adequately protect us from a serious disaster. ​ Natural disasters, adverse weather conditions, floods, pandemics (including the recent coronavirus outbreak), acts of terrorism and other catastrophic or geo-political events may cause damage or disruption to our operations, international commerce and the global economy, which could have an adverse effect on our business, operating results, and financial condition. ​ Risks Associated with Doing Business in Peru and Mexico ​ There is uncertainty as to the termination and renewal of our mining concessions. ​ Under the laws of Peru and Mexico, mineral resources belong to the state and government.
Furthermore, disaster recovery plans may not adequately protect us from a serious disaster. ​ Natural disasters, adverse weather conditions, floods, pandemics, acts of terrorism and other catastrophic or geo-political events may cause damage or disruption to our operations, international commerce and the global economy, which could have an adverse effect on our business, operating results, and financial condition. ​ Risks Associated with Doing Business in Peru and Mexico ​ There is uncertainty as to the termination and renewal of our mining concessions. ​ Under the laws of Peru and Mexico, mineral resources belong to the state and government.
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.
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.
Among other actions, past governments have imposed controls on prices, exchange rates and local and foreign investments; placed limitations on imports; restricted companies’ abilities to dismiss employees and have prohibited the remittance of profits to foreign investors. ​ Between 2019 and 2023, Peru experienced heightened political instability in a context marked by ongoing investigations into allegations of corruption and confrontation on the political front.
Among other actions, past governments have imposed controls on prices, exchange rates and local and foreign investments; placed limitations on imports; restricted companies’ abilities to dismiss employees and have prohibited the remittance of profits to foreign investors. ​ Between 2019 and February 2026, Peru experienced heightened political instability in a context marked by ongoing investigations into allegations of corruption and confrontation on the political front.
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.
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.
Such risks include possible expropriation or nationalization of property, confiscatory taxes or royalties, possible foreign exchange controls, changes in the national policy toward foreign investors, extreme environmental standards, etc. ​ Our international operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws in the other jurisdictions in which we operate.
Such risks include possible expropriation or nationalization of property, confiscatory taxes or royalties, possible foreign exchange controls, changes in the national policy toward foreign investors, extreme environmental standards, etc. ​ 25 Table of Contents Our international operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws in the other jurisdictions in which we operate.
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.
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.
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.
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.
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.
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. ​ 21 Table of Contents We are confident that we will move forward with the Tia Maria project.
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.
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.
Through the digital tool, we can measure, verify, and audit controls, promptly identifying instances of incorrect implementation or threshold breaches. ​ In addition, we maintain insurance against many of these and other risks, which under certain circumstances may not provide adequate coverage.
Through the digital tool, we can measure, verify, and audit controls, promptly identifying instances of incorrect implementation or threshold breaches. 18 Table of Contents ​ In addition, we maintain insurance against many of these and other risks, which under certain circumstances may not provide adequate coverage.
Substantial expenditures must be made to determine proven and probable mineral reserves, which requires drilling to establish the metallurgical processes that will be needed to extract the metals from the ore and, in the case of new properties, to construct mining and processing facilities.
Substantial expenditures must be made to determine proven and probable mineral reserves, which requires drilling to establish the metallurgical processes that will be needed to extract the metals from the ore and, in the case of new properties, to construct mining and processing 20 Table of Contents facilities.
For example, severe weather events could damage transportation infrastructures and lead to interruptions or delays in the supply of key inputs and raw materials or sold products. ​ We monitor fluctuations in weather patterns in the areas where we operate.
For example, severe weather events could damage transportation infrastructures and lead to interruptions or delays in the supply of key inputs and raw materials or sold products. 22 Table of Contents ​ We monitor fluctuations in weather patterns in the areas where we operate.
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.
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.
Please see the distribution of our revenues per product on Item 8 “Financial Statements and Supplementary Data” Note 19 “Segment and Related Information—Sales value per segment”. See also the historical average price of our products on Item 1 Business caption “Metals prices”. ​ We cannot predict if metals prices will rise or fall in the future.
Please see the distribution of our revenues per product on Item 8 “Financial Statements and Supplementary Data” Note 18 “Segment and Related Information—Sales value per segment”. See also the historical average price of our products on Item 1 Business caption “Metals prices”. ​ 16 Table of Contents We cannot predict if metals prices will rise or fall in the future.
Consequently, our production, development and exploration activities in these countries could be substantially affected by factors out of our control, some of which could materially and adversely affect our financial position or results of operations. ​ We may be adversely affected by natural disasters, pandemics (including the recent coronavirus outbreak) and other catastrophic events, and by man-made problems such as terrorism, which could disrupt our business operations and our business continuity.
Consequently, our production, development and exploration activities in these countries could be substantially affected by factors out of our control, some of which could materially and adversely affect our financial position or results of operations. ​ We may be adversely affected by natural disasters, pandemics and other catastrophic events, and by man-made problems such as terrorism, which could disrupt our business operations and our business continuity.
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.
As of December 31, 2025, unions represented approximately 51% of our workforce in Peru and 71% 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.
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.
Fuel, gas and power costs constituted approximately 26% of our total production costs in 2025 and 2024, and 29% in 2023. We rely upon third parties for our supply of the energy resources consumed in our operations.
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.
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 2025, we recorded four fatalities (three employees and one contractor).
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.
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 2025, 2024 and 2023 was 1.5%, 2.0% and 3.2%, respectively.
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.
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 3.7% in 2025, 4.2% in 2024 and 4.7% in 2023. The peso appreciated 11.4% against the U.S. dollar in 2025, versus a 20.0% depreciation in 2024 and a 12.7% appreciation in 2023.
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.
In 2024, we recorded one fatality of a contractor and in 2023, we recorded five fatalities (two contractors and three employees). The amounts paid to the Mexican and Peruvian authorities for reportable accidents had no adverse effects on our results.
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.
This new president leads a transitional government in Peru, which is due to hold general elections in April 2026 amidst political turmoil. ​ 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.
In addition, the market prices of copper and certain other metals have on occasion been subject to rapid short-term changes. At the start of the pandemic in 2020, copper prices were initially impacted by economic uncertainty. However, in mid-2020, copper prices began to rise and reached a record highs during 2021.
In addition, the market prices of copper and certain other metals have on occasion been subject to rapid short-term changes. At the start of the pandemic in 2020, copper prices were initially negatively impacted by economic uncertainty. Copper prices began to recover in mid-2020 and continued to strengthen, reaching record levels in 2025.
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.
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 U.S. policy, regulatory uncertainty, threats or imposition of tariffs and trade tensions may materially affect our business, financial condition and results of operations. ​ Our business operations may be adversely affected by changes in regulatory policy or the imposition of new tariffs or other trade restrictions, which could significantly increase our costs, pricing strategies, disrupt our supply chain and complicate international sourcing and customer relationships.
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.
Additionally, several preliminary meetings were held to evaluate reopening negotiations to purchase land required for the Cuajone operations. ​ 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.
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.
In 2025, the sol appreciated 10.7% against the U.S. dollar, versus a 1.5% depreciation in 2024 and a 2.8% appreciation in 2023.
For more information regarding our tailing dams, please see Item 2 “Properties—Slope Stability—Tailing Dams.” ​ During recent years, social and political demands has caused violence which could result in damage to, or destruction of, mining operations resulting in monetary losses and possible legal liability. ​ In our proactive approach to managing operational sustainability risks, we have implemented the Critical Risk Registry, aligning with the International Council on Mining and Metals (ICMM) Good Practice Guide on Health and Safety Critical Control Management.
In particular, surface and underground mining and related processing activities present inherent risks of injury to personnel, loss of life and damage to equipment. ​ During recent years, social and political demands have caused violence which could result in damage to, or destruction of, mining operations resulting in monetary losses and possible legal liability. ​ In our proactive approach to managing operational sustainability risks, we have implemented the Critical Risk Registry, aligning with the International Council on Mining and Metals (ICMM) Good Practice Guide on Health and Safety Critical Control Management.
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.
We maintain large tailings impoundments containing ground rock sand that is moistened with water; these areas are effectively large dams that must be engineered, built and monitored to assure structural stability and avoid leakages or structural collapse.
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.
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 2025, 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.
Significant political turmoil in Peru led to a shutdown of the Peruvian Congress and the removal of three Peruvian presidents. ​ On December 7, 2022, the Peruvian congress invoked its powers under the Constitution to remove the current President from office.
Significant political turmoil in Peru led to a shutdown of the Peruvian Congress and the removal of five Peruvian presidents. ​ On October 10, 2025, the Peruvian congress invoked its powers under the Constitution to remove the President from office, amidst general concerns about rising threats to personal security throughout the country.
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.
For more information regarding our tailings dams, please see Item 2 “Properties—Slope Stability—Tailings Dams.” ​ 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.
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.
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 75.9% of our revenues were generated from the sale of copper; 10.9% from molybdenum; 5.7% from silver; and 3.6% from zinc.
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.
If such developments occur, they could have a material adverse effect on our margins, results of operations and market position. ​ Changes in international trade policies and relationships may materially adversely affect global commodity prices and market conditions and our business, financial condition and results of operations.
This situation creates potential risks, particularly for transportation of minerals and finished products, which may affect a small portion of our production. Drug-related violence has had a limited impact on our operations, as it has tended to concentrate outside of our areas of production.
Drug-related violence has had a limited impact on our operations, as it has tended to concentrate outside of our areas of production.
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.
Volatility in global economic growth, particularly in developing countries, has the potential to adversely affect future demand and prices for commodities.
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.
The use of AI when lacking of a strategy and a governance model may increase our exposure to cybersecurity risks and additional risks relating to the protection of data. ​ ​ 23 Table of Contents Other risks ​ 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.
Removed
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.
Added
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. ​ Our operations are subject to risks associated with the management of waste rock and tailings storage facilities, which are subject to significant environmental, safety and engineering challenges that could adversely affect our business. ​ The waste rock and tailings produced in our mining operations represent our largest volume of waste material.
Removed
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.
Added
Managing a high volume of waste rock and tailings presents significant environmental, safety and engineering challenges and risks primarily relating to structural stability, geochemistry, water quality and dust generation.
Removed
Defects, errors and failures at tailings dams and in other impoundments at any of our mining operations could cause severe property and environmental damage and loss of life.
Added
Our tailings impoundments must have effective programs to suppress dust emissions to meet regulatory requirements, which vary depending on the jurisdiction, and to limit potential impacts of our operations’ dust emissions on the environment and the adjacent communities.
Removed
The importance of careful design, management and monitoring of large impoundments was emphasized in recent years by large scale tailings dam failures at unaffiliated mines, which caused extensive property and environmental damage and resulted in the loss of life.
Added
Management of this waste is regulated in the jurisdictions where we operate and our waste management programs are designed to comply with our permits, approved environmental impact studies and applicable laws. ​ Defects and/or failures of tailings storage facilities, other impoundments or stockpiles at any of our mining operations could cause severe, and in some cases catastrophic, property and environmental damage and loss of life, as well as adversely affect our business and reputation. ​ The importance of careful design, management and monitoring of large tailings impoundments has grown in recent years due to large-scale tailings dam failures at the mining operations of companies, unaffiliated with the Company, which caused extensive property and environmental damage and, in certain instances, resulted in the loss of life.
Removed
We anticipate resuming discussions soon to tackle current issues and discuss our proposed plans for investing in social programs that address community needs.
Added
The failure or loss of integrity of a tailings storage facility or related waste management infrastructure—whether due to operational deficiencies, extreme weather events, seismic activity, regulatory constraints or other factors beyond our control—could result in the release of tailings, process water or other materials, causing environmental harm and potential impacts to surrounding communities, damage to, or destruction of mining operations, resulting in monetary losses and possible legal liability.
Removed
The use of AI when lacking of a strategy and a governance model may increase our exposure to cybersecurity risks and additional risks relating to the protection of data. ​ Other risks ​ Applicable law restricts the payment of dividends from our Minera Mexico subsidiary to us. ​ Our subsidiary, Minera Mexico, is a Mexican company and, as such, may pay dividends only out of net income that has been approved by shareholders.
Added
Such events could materially adversely affect our results of operations and financial condition, disrupt operations, damage our reputation, and subject the Company to regulatory enforcement actions, fines, remediation obligations and claims from governmental authorities or third parties.
Removed
Shareholders must also approve the actual dividend payment, after mandatory legal reserves have been created and losses for prior fiscal years have been satisfied.
Added
As of January 2026, the Company continues to engage in ongoing discussions with community representatives, and we are implementing high-impact projects that address community needs.
Removed
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.
Added
Uncertainty about future trade or tariff measures may hinder planning, force pricing adjustments, and reduce our competitiveness.
Removed
The Vice President immediately assumed the presidency, which has led to considerable turmoil, particularly in the south of Peru, where acts of vandalism and violence escalated. Roadblocks were scattered throughout the country, which negatively affected the normal course of business in various regions. Fortunately, our operations were not impacted.
Added
The adoption and expansion of trade restrictions; tariffs, taxes or other governmental trade measures and uncertainty about such trade measures could reduce the demand for our products, increase our costs, disrupt customer and supplier relationships and harm the U.S. economy, any of which could materially impair our cash flows, competitive position, financial condition and results of operations.
Added
In July 2025, the U.S. announced trade agreements with the European Union and Japan. On July 30, 2025, the U.S. announced a 50% tariff on semi-finished copper products and copper-intensive derivative products, which became effective on August 1, 2025. Additionally, reciprocal tariffs with China have been suspended until November 10, 2026. On February 20, 2026, the U.S.
Added
Supreme Court issued an opinion that limited the President’s authority to impose certain tariffs under emergency powers, which may affect the scope, duration and future use of tariff measures by the U.S. presidential administration. In response, the U.S. presidential administration declared they would impose a 15% global tariff.
Added
These developments have produced and may continue to produce market volatility for our principal products and our common stock.
Added
The president of the 26 Table of Contents Peruvian congress immediately assumed the presidency, in the absence of a Vice President. However, on February 17, 2026, the interim president was impeached four months into his term. On February 18, 2026, a new interim president was appointed.
Added
Recently, in February 2026, clashes between organized crime factions and federal authorities in Jalisco and Guanajuato resulted in periods of instability, disrupting commercial and logistics activities in such areas. This situation creates potential risks, particularly for transportation of minerals and finished products, which may affect a small portion of our production.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+0 added−0 removed27 unchanged
Biggest changeFor additional discussions of risks from cybersecurity threats we face, see Item 1A “Risk Factors”. There were no material cybersecurity incidents in 2024. ​ ​
Biggest changeFor additional discussions of risks from cybersecurity threats we face, see Item 1A “Risk Factors”. There were no material cybersecurity incidents in 2025 . ​ ​ 31 Table of Contents
Simultaneously, these processes allow cybersecurity incidents classified as “material” to be promptly disclosed to the SEC in a Form 8-K report within 4 business days of the Company’s determination that such incident is in fact a “material” incident. ​ Oversight of Third-Party Service Providers ​ Security Assessment Process for IT Service Providers ​ Our Security Assessment Process for IT Service Providers is based on the ISO 27001 Information security, cybersecurity, and privacy protection standard.
Simultaneously, these processes allow cybersecurity incidents classified as “material” to be promptly disclosed to the SEC in a Form 8-K report within 4 business days of the Company’s determination that such incident is in fact a “material” incident. ​ 29 Table of Contents Oversight of Third-Party Service Providers ​ Security Assessment Process for IT Service Providers ​ Our Security Assessment Process for IT Service Providers is based on the ISO 27001 Information security, cybersecurity, and privacy protection standard.
Our primary focus is information security. ​ Our Information Technology governance framework is composed of policies, procedures, standards, and methodologies to identify and manage risks among other aspects, which are governed by reference frameworks and best practices. ​ SCC’s information security strategy is led by the Technology and Information Security Director (“TISD”), with review and support from the Chief Information Security Officer (“CISO”) of Grupo Mexico.
Our primary focus is information security. ​ 28 Table of Contents Our Information Technology governance framework is composed of policies, procedures, standards, and methodologies to identify and manage risks among other aspects, which are governed by reference frameworks and best practices. ​ SCC’s information security strategy is led by the Technology and Information Security Director (“TISD”), with review and support from the Chief Information Security Officer (“CISO”) of Grupo Mexico.
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.
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.
In particular, the Risk Committee provides oversight of the Company’s risk management, cybersecurity, and operational compliance activities, as well as a means of bringing risk issues to the attention of management. ​ Disclosure of the Board’s Roles and Responsibilities ​ The Board of Directors is responsible for global oversight of our strategic and operational risks.
In particular, the Risk Committee provides oversight of the Company’s risk management, 30 Table of Contents cybersecurity, and operational compliance activities, as well as a means of bringing risk issues to the attention of management. ​ Disclosure of the Board’s Roles and Responsibilities ​ The Board of Directors is responsible for global oversight of our strategic and operational risks.
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.
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.
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 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.

Item 2. Properties

Properties — owned and leased real estate

169 edited+25 added−31 removed299 unchanged
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.
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. ​ ​ 37 Table of Contents PROPERTY BOOK VALUE ​ As of December 31, 2025, net book values of property and mine development were as follows (in millions): ​ ​ ​ ​ ​ Peruvian operations: ​ ​ ​ ​ ​ ​ ​ Cuajone ​ $ 779.0 Toquepala ​ 1,852.8 Tia Maria project ​ 371.4 Ilo and other support facilities ​ 557.0 Construction in progress ​ 674.7 Total Peru ​ $ 4,235.0 Mexican open ‑ pit operations: ​ ​ Buenavista mine and concentrator plants ​ $ 2,540.4 Buenavista SX‑EW and Quebalix ​ 655.3 La Caridad mine and concentrator plant ​ 808.0 La Caridad support facilities ​ 250.6 Construction in progress ​ 628.4 Total Mexico Open Pit ​ $ 4,882.8 Mexican IMMSA unit: ​ ​ San Luis Potosi ​ $ 84.6 Zinc electrolytic refinery ​ 75.3 Charcas ​ 123.6 San Martin ​ 122.6 Santa Barbara ​ 214.3 Santa Eulalia ​ 18.2 Other facilities ​ ​ 4.5 Construction in progress: ​ ​ - Zinc electrolytic refinery ​ ​ 10.0 - Charcas ​ ​ 51.1 - San Martin ​ ​ 27.8 - Santa Barbara ​ ​ 67.0 - Santa Eulalia ​ ​ 1.8 - Other Facilities ​ ​ 3.0 Total IMMSA Unit ​ $ 803.6 Other property: ​ ​ El Pilar ​ $ 122.3 Mexicana del Arco ​ 108.3 Total ​ $ 230.6 Mexican administrative offices ​ $ 120.3 Total Mexico ​ $ 6,037.3 Total Southern Copper Corporation ​ $ 10,272.2 ​ 38 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, 2025 -2024 2024 -2023 ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Volume ​ ​ ​ % ​ ​ ​ Volume ​ ​ ​ % ​ COPPER (thousand pounds) : ​ ​ ​ ​ ​ ​ ​ ​ Mined ​ ​ ​ ​ ​ ​ ​ ​ Peru open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Toquepala 495,751 496,428 440,165 (677) (0.1) % 56,263 12.8 % Cuajone 358,828 363,454 328,990 (4,626) (1.3) % 34,464 10.5 % SX‑EW Toquepala 51,845 53,165 55,672 (1,320) (2.5) % (2,507) (4.5) % Mexico open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ La Caridad 212,010 206,628 193,596 5,382 2.6 % 13,032 6.7 % Buenavista 711,461 769,323 725,216 (57,862) (7.5) % 44,107 6.1 % SX‑EW La Caridad 53,399 51,257 50,691 2,142 4.2 % 566 1.1 % SX‑EW Buenavista 202,388 185,210 193,024 17,178 9.3 % (7,814) (4.0) % IMMSA unit 22,529 21,506 21,084 1,023 4.8 % 422 2.0 % Total Mined 2,108,212 2,146,971 2,008,438 (38,759) (1.8) % 138,533 6.9 % Smelted ​ ​ ​ ​ ​ ​ ​ ​ Peru open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Blister Ilo 2,985 3,323 4,088 (338) (10.2) % (765) (18.7) % Anodes Ilo 671,269 790,612 798,342 (119,343) (15.1) % (7,730) (1.0) % Mexico open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Anodes La Caridad 598,092 553,662 581,167 44,430 8.0 % (27,505) (4.7) % Total Smelted 1,272,345 1,347,597 1,383,597 (75,252) (5.6) % (36,000) (2.6) % Refined ​ ​ ​ ​ ​ ​ ​ ​ Peru Open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Cathodes Ilo 538,321 634,707 638,589 (96,386) (15.2) % (3,882) (0.6) % SX‑EW Toquepala 51,845 53,165 55,672 (1,320) (2.5) % (2,507) (4.5) % Mexico Open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Cathodes La Caridad 502,204 478,701 481,841 23,503 4.9 % (3,140) (0.7) % SX‑EW La Caridad 53,399 51,257 50,691 2,142 4.2 % 566 1.1 % SX‑EW Buenavista 202,388 185,210 193,024 17,178 9.3 % (7,814) (4.0) % Total Refined 1,348,157 1,403,040 1,419,817 (54,883) (3.9) % (16,777) (1.2) % Rod Mexico Open ‑ pit—La Caridad 346,280 336,785 340,182 9,495 2.8 % (3,397) (1.0) % SILVER (thousand ounces) ​ ​ ​ ​ ​ ​ ​ ​ Mined ​ ​ ​ ​ ​ ​ ​ ​ Peru Open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ Toquepala 2,968 3,062 2,615 (94) (3.1) % 447 17.1 % Cuajone 2,746 2,635 2,395 111 4.2 % 240 10.0 % Mexico Open ‑ pit ​ ​ ​ ​ ​ ​ ​ ​ La Caridad 2,691 2,208 2,065 483 21.9 % 143 6.9 % Buenavista 8,239 6,304 4,669 1,935 30.7 % 1,635 35.0 % IMMSA unit 7,544 6,775 6,664 769 11.4 % 111 1.7 % Total Mined 24,188 20,984 18,408 3,204 15.3 % 2,576 14.0 % Refined ​ ​ ​ ​ ​ ​ ​ ​ Peru—Ilo 4,196 4,070 3,526 126 3.1 % 544 15.4 % Mexico—La Caridad 8,432 7,929 7,398 503 6.3 % 531 7.2 % IMMSA unit — — 3 — — % (3) (100.0) % Total Refined 12,628 11,999 10,927 629 5.2 % 1,072 9.8 % MOLYBDENUM (thousand pounds) ​ ​ ​ ​ ​ ​ ​ ​ Mined ​ ​ ​ ​ ​ ​ ​ ​ Toquepala 23,369 19,771 13,916 3,598 18.2 % 5,855 42.1 % Cuajone 9,676 9,740 8,252 (64) (0.7) % 1,488 18.0 % Buenavista 12,631 12,991 11,937 (360) (2.8) % 1,054 8.8 % La Caridad 23,006 21,427 25,059 1,579 7.4 % (3,632) (14.5) % Total Mined 68,682 63,929 59,164 4,753 7.4 % 4,765 8.1 % ZINC (thousand pounds) ​ ​ ​ ​ ​ ​ ​ ​ Mined ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ IMMSA 132,740 144,875 144,422 (12,135) (8.4) % 453 0.3 % Buenavista ​ 257,432 ​ 141,750 ​ — ​ 115,682 ​ 81.6 % — ​ — % Total Mined 390,171 286,625 144,422 103,546 36.1 % 453 98.5 % Refined IMMSA 191,902 217,734 222,695 (25,832) (11.9) % (4,961) (2.2) % 39 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, 2025, 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, $1.09 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 61.0 ​ 0.35 % 468.7 ​ 436.3 ​ 0.33 % 3,201.1 ​ 497.3 ​ 0.33 % 3,669.8 ​ 864.6 ​ 0.28 % 5,417.6 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 ​ 178.8 ​ 0.39 % 1,524.4 ​ 278.2 ​ 0.45 % 2,765.7 ​ 159.2 ​ 0.29 % 1,006.6 Toquepala Leach ​ 11.3 ​ 0.15 % 37.4 ​ 44.2 ​ 0.15 % 147.5 ​ 55.5 ​ 0.15 % 185.0 ​ 51.5 ​ 0.15 % 173.6 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 — ​ — % — ​ 627.2 ​ 0.38 % 5,241.7 ​ 627.2 ​ 0.38 % 5,241.7 ​ 7,846.6 ​ 0.34 % 58,474.0 Buenavista Leach ​ — ​ — % — ​ 52.4 ​ 0.33 % 376.5 ​ 52.4 ​ 0.33 % 376.5 ​ 373.4 ​ 0.18 % 1,457.3 Buenavista zinc plant ​ — ​ — % — ​ 202.8 ​ 0.44 % 1,985.5 ​ 202.8 ​ 0.44 % 1,985.5 ​ 704.6 ​ 0.37 % 5,809.4 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 ​ 112.6 ​ 0.07 % 160.6 ​ 116.6 ​ 0.07 % 167.8 ​ 342.0 ​ 0.08 % 612.9 Charcas — ​ — % — ​ 17.6 ​ 0.35 % 133.7 ​ 17.6 ​ 0.35 % 133.7 ​ 15.6 ​ 0.32 % 108.6 Santa Barbara ​ — ​ — % — ​ 17.8 ​ 0.46 % 178.7 ​ 17.8 ​ 0.46 % 178.7 ​ 45.9 ​ 0.45 % 452.6 San Martin ​ — ​ — % — ​ 13.4 ​ 0.62 % 182.4 ​ 13.4 ​ 0.62 % 182.4 ​ 55.5 ​ 0.46 % 567.3 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 ​ — ​ — % — ​ 0.03 ​ 0.16 % 0.1 ​ 0.03 ​ 0.16 % 0.1 ​ 0.01 ​ 0.09 % 0.02 Total 267.8 ​ ​ ​ 2,059.0 ​ 5,104.4 ​ ​ ​ 30,573.0 ​ 5,370.1 ​ ​ ​ 32,632.0 ​ 22,018.8 ​ ​ ​ 144,650.1 Molybdenum: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peru: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cuajone 61.0 ​ 0.014 % 18.6 ​ 436.3 ​ 0.012 % 115.2 ​ 497.3 ​ 0.012 % 133.7 ​ 864.6 ​ 0.008 % 160.2 Toquepala 99.3 ​ 0.038 % 83.0 ​ 178.8 ​ 0.021 % 81.7 ​ 278.2 ​ 0.027 % 164.8 ​ 159.2 ​ 0.008 % 28.5 Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista Mill — ​ — % — ​ 627.2 ​ 0.008 % 110.7 ​ 627.2 ​ 0.008 % 110.7 ​ 7,846.6 ​ 0.008 % 1,384.1 Buenavista zinc plant ​ — ​ — % — ​ 202.8 ​ 0.004 % 17.9 ​ 202.8 ​ 0.004 % 17.9 ​ 704.6 ​ 0.009 % 139.8 La Caridad Mill 89.0 ​ 0.025 % 50.7 ​ 2,136.0 ​ 0.022 % 1,026.5 ​ 2,224.0 ​ 0.022 % 1,076.5 ​ 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 249.3 ​ ​ ​ 152.3 ​ 4,437.9 ​ ​ ​ 1,507.7 ​ 4,686.2 ​ ​ ​ 1,659.3 ​ 17,238.2 ​ ​ ​ 4,818.3 Silver: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas — ​ — ​ — ​ 17.6 ​ 57.1 ​ 32,221.3 ​ 17.6 ​ 57.1 ​ 32,221.3 ​ 15.6 ​ 62.7 ​ 31,475.6 Santa Barbara — ​ — ​ — ​ 17.8 ​ 93.9 ​ 53,767.2 ​ 17.8 ​ 93.9 ​ 53,767.2 ​ 45.9 ​ 81.1 ​ 119,680.1 San Martin — ​ — ​ — ​ 13.4 ​ 76.3 ​ 32,734.6 ​ 13.4 ​ 76.3 ​ 32,734.6 ​ 55.5 ​ 71.1 ​ 126,835.5 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 — ​ ​ ​ — ​ 875.3 ​ ​ ​ 160,598.4 ​ 875.3 ​ ​ ​ 160,598.4 ​ 2,461.9 ​ ​ ​ 388,878.5 Zinc: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Buenavista zinc plant ​ — ​ — % — ​ 202.8 ​ 0.37 % 1,645.6 ​ 202.8 ​ 0.37 % 1,645.6 ​ 704.6 ​ 0.18 % 2,858.2 Buenavista Cu plant ​ — ​ — % — ​ 627.2 ​ 0.04 % 553.2 ​ 627.2 ​ 0.04 % 553.2 ​ 7,846.6 ​ 0.04 % 6,746.6 Charcas ​ — ​ — % — ​ 17.6 ​ 3.74 % 1,446.0 ​ 17.6 ​ 3.74 % 1,446.0 ​ 15.6 ​ 3.31 % 1,139.3 Santa Barbara ​ — ​ — % — ​ 17.8 ​ 3.29 % 1,292.0 ​ 17.8 ​ 3.29 % 1,292.0 ​ 45.9 ​ 3.32 % 3,361.6 40 Table of Contents San Martin ​ — ​ — % — ​ 13.4 ​ 1.88 % 553.6 ​ 13.4 ​ 1.88 % 553.6 ​ 55.5 ​ 2.55 % 3,120.9 Total ​ — ​ ​ ​ — ​ 878.8 ​ ​ ​ 5,490.4 ​ 878.8 ​ ​ ​ 5,490.4 ​ 8,668.2 ​ ​ ​ 17,226.6 Lead: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charcas ​ — ​ — % — ​ 17.6 ​ 0.24 % 94.7 ​ 17.6 ​ 0.24 % 94.7 ​ 15.6 ​ 0.36 % 122.4 Santa Barbara ​ — ​ — % — ​ 17.8 ​ 1.66 % 650.1 ​ 17.8 ​ 1.66 % 650.1 ​ 45.9 ​ 1.86 % 1,882.4 San Martin ​ — ​ — % — ​ 13.4 ​ 0.34 % 100.0 ​ 13.4 ​ 0.34 % 100.0 ​ 55.5 ​ 0.31 % 381.6 Total ​ — ​ ​ ​ — ​ 48.7 ​ ​ ​ 844.8 ​ 48.7 ​ ​ ​ 844.8 ​ 117.0 ​ ​ ​ 2,386.4 Gold: (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Santa Barbara ​ — ​ — ​ — ​ 17.8 ​ 0.15 ​ 88.5 ​ 17.8 ​ 0.15 ​ 88.5 ​ 45.9 ​ 0.12 ​ 175.8 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 ​ — ​ ​ ​ — ​ 844.4 ​ ​ ​ 3,315 ​ 844.4 ​ ​ ​ 3,315 ​ 2,390.8 ​ ​ ​ 8,229.3 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2025.
Wood is responsible for the estimates. (2) The point of reference is the point at which the mineral reserves are delivered to the processing facility. Mineral reserves are constrained within an engineered pit based on copper and molybdenum revenues only.
Wood is responsible for the estimates. (2) The point of reference is the point at which the mineral reserves are delivered to the processing facility. Mineral reserves are constrained within an engineered pit based on copper and molybdenum revenues only.
The project site can be accessed using a Highway 1, a paved road, from Lima to Nazca (460 km), from Nazca to Santa Rosa (250 km), using road 30A, and a gravel road from Santa Rosa to the Project site (32 km).
The project site can be accessed using Highway 1, a paved road, from Lima to Nazca (460 km), from Nazca to Santa Rosa (250 km), using road 30A, and a gravel road from Santa Rosa to the Project site (32 km).
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%.
Limits of the mining unit using UTM coordinates are listed in the following table: ​ ​ ​ VERTEX UTM Zone 12 WGS 84 ​ ​ Easting Northing 1 ​ 629,600.00 ​ 3,361,303.35 2 ​ 655,325.58 ​ 3,361,303.35 3 ​ 655,325.58 ​ 3,350,065.74 4 ​ 629,600.00 ​ 3,350,065.74 ​ Nacozari is connected by paved highway with Hermosillo and Agua Prieta and by rail with the international port of Guaymas, and the Mexican and United States rail systems.
Limits of the mining unit using UTM coordinates are listed in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ UTM Zone 12 WGS 84 VERTEX ​ ​ ​ Easting ​ ​ ​ Northing 1 ​ 629,600.00 ​ 3,361,303.35 2 655,325.58 ​ 3,361,303.35 3 ​ 655,325.58 ​ 3,350,065.74 4 ​ 629,600.00 ​ 3,350,065.74 ​ ​ Nacozari is connected by paved highway with Hermosillo and Agua Prieta and by rail with the international port of Guaymas, and the Mexican and United States rail systems.
(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-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 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.
Los Chancas envisions an open-pit mine with a combined operation of concentrator and SX-EW processes. ​ Geology ​ The Los Chancas deposit is considered to be an example of a porphyry copper–molybdenum deposit. The deposit is about 1,200 m in diameter, extends for at least 1,000 m at depth, and most drill holes bottom in mineralization.
The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes. ​ Geology ​ The Los Chancas deposit is considered to be an example of a porphyry copper–molybdenum deposit. The deposit is about 1,200 m in diameter, extends for at least 1,000 m at depth, and most drill holes bottom in mineralization.
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.
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, 2025, 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, 2025.
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.
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.
Additionally, the Pilares Project was included in the regional environmental permit obtained for the entire La Caridad complex dated September 2018 and valid for 60 years. ​ Geology ​ The La Caridad mining district, where the Pilares porphyry copper deposit is located, lies within the eastern section of the Sonora Basin and Range Province in Northern Mexico.
Additionally, Pilares was included in the regional environmental permit obtained for the entire La Caridad complex dated September 2018 and valid for 60 years. ​ Geology ​ The La Caridad mining district, where the Pilares porphyry copper deposit is located, lies within the eastern section of the Sonora Basin and Range Province in Northern Mexico.
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.
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, 2025, based on long-term price assumptions of $3.80 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 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.
Additionally, we will carry out prospecting work in metallogenic zones on the southern coast of Peru, which are associated with copper porphyry systems. ​ Mexico ​ In addition to exploration and drilling programs at existing mines, we are currently conducting exploration to locate mineral deposits at various other sites in Mexico.
Additionally, we will carry out prospecting work in metallogenic zones on the southern coast of Peru, which are associated with copper-molybdenum porphyry systems. ​ Mexico ​ In addition to exploration and drilling programs at existing mines, we are currently conducting exploration to locate mineral deposits at various other sites in Mexico.
Pursuant to SEC guidance, qualified persons used forecast metal prices for mineral resource and mineral reserve estimation and the economic analysis. These projected prices were derived from forecasts from several analysts and banks. The commodity price forecast covered the period 2021–2025 and provided a long-term forecast for 2025 onward.
Pursuant to SEC guidance, qualified persons used forecast metal prices for mineral resource and mineral reserve estimation and the economic analysis. These projected prices were derived from forecasts from several analysts and banks. The commodity price forecast covered the period 2021–2025 and provided a long-term forecast for 2026 onward.
(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.
(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. ​ ​ 42 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.
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.
This depth increase presents geotechnical challenges, primarily the risk of slope failure. ​ 50 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.
(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.
(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, 2025, 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, 2025.
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.
Technical Studies are underway. ​ Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Pilar as of December 31, 2025, based on long-term price assumptions of $3.30 per pound: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 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.
It is about 6 kilometers from the La Caridad mining unit and 22 kilometers from the town of Nacozari. ​ The mining claims held by Pilares project cover an area of about 143.3 hectares for exploration and exploitation activities.
It is about 6 kilometers from the La Caridad mining unit and 22 kilometers from the town of Nacozari. ​ The mining claims held by Pilares cover an area of about 143.3 hectares for exploration and exploitation activities.
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.
We believe all of the equipment at our Peruvian plants is in good physical condition and is suitable for our operations. ​ 43 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.
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).
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. ​ 32 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).
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.
Mineralization at El Arco occurs in three sub-horizontal zones. ​ ​ 81 Table of Contents Mineral resources ​ The following table contains the summary of mineral resources for El Arco as of December 31, 2025, 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 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 of December 31, 2025.
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.
Alternative access is from Lima, using the Pan-American highway to 48 Table of Contents 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.
We believe all our Mexican open-pit segment equipment is in good physical condition and suitable for our operations. ​ ​ 60 Table of Contents Buenavista ​ The Buenavista mining unit operates an open-pit porphyry copper mine, three concentrators and three SX-EW plants. It is located within the Cananea mining district in the north-central part of the State of Sonora, Mexico.
We believe all our Mexican open-pit segment equipment is in good physical condition and suitable for our operations. 62 Table of Contents ​ Buenavista ​ The Buenavista mining unit operates an open-pit porphyry copper mine, three concentrators and three SX-EW plants. It is located within the Cananea mining district in the north-central part of the State of Sonora, Mexico.
Weekly and monthly reports are generated based on the piezometers, which show the evolution of the water table levels and enable monitoring if slope drainage is required. ​ La Caridad pit and its surroundings are fully monitored by four radar systems and a specialized team, who is on 24/7 to notify operations if an alert is triggered.
Weekly and monthly reports are generated based on the piezometers, which show the evolution of the water table levels and enable monitoring if slope drainage is required. ​ La Caridad pit and its surroundings are continuously monitored by four radar systems and a specialized team, who is on 24/7 to notify operations if an alert is triggered.
The topography near the deposit permits sufficient surface space for a mining operation, leaching pads, waste disposal areas, and other facilities. The property can be reached by road from Hermosillo, Sonora in Mexico and from Tucson, Arizona in the United States. The route from Hermosillo to Miguel Hidalgo takes about 3.5 hours of driving time.
The topography near the deposit permits sufficient surface space for a mining operation, leach pads, waste disposal areas, and other facilities. The property can be reached by road from Hermosillo, Sonora in Mexico and from Tucson, Arizona in the United States. The route from Hermosillo to Miguel Hidalgo takes about 3.5 hours of driving time.
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.
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. ​ ​ 93 Table of Contents MINERAL RESERVES AND MINERAL RESOURCES INTERNAL CONTROLS DISCLOSURE ​ In 2021, we adopted the new requirements of S-K 1300.
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.
The copper, zinc and molybdenum grade are total grade. ​ 64 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.
(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.
(7) There were no changes in mineral resources with regard to the figures reported in 2021. ​ ​ 82 Table of Contents Mineral reserves ​ The following table contains the summary of copper mineral reserves for El Arco as of December 31, 2025, 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 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, 2025.
Copper oxides are also present as a minor constituent. ​ ​ 56 Table of Contents Mineral resources ​ The following table contains the summary of copper mineral resources for Los Chancas as of December 31, 2024, based on long-term price assumptions of $3.80 per pound, fixed over the long-term period of time that mineral resources are expected to be produced: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Amount (million tonnes) Grades Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Oxide ​ 98 ​ 0.45 ​ ​ ​ 972 Sulfide ​ 52 ​ 0.59 ​ ​ ​ 676 Indicated mineral resources 150 ​ 0.50 % 82-84 % 1,648 Measured + Indicated mineral resources ​ 150 ​ 0.50 % 82-84 % 1,648 Oxide ​ 33 ​ 0.38 ​ ​ ​ 276 Sulfide ​ 1,400 ​ 0.45 ​ ​ ​ 13,889 Inferred mineral resources ​ 1,433 ​ 0.45 % 82-84 % 14,165 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2024.
Copper oxides are also present as a minor constituent. ​ ​ 58 Table of Contents Mineral resources ​ The following table contains the summary of copper mineral resources for Los Chancas as of December 31, 2025, based on long-term price assumptions of $3.80 per pound, fixed over the long-term period of time that mineral resources are expected to be produced: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper ​ ​ ​ Amount (million tonnes) ​ ​ ​ Grades ​ ​ ​ Metallurgical recovery ​ Metal content (million pounds) Measured mineral resources ​ — ​ — % — % — Oxide ​ 98 ​ 0.45 ​ ​ ​ 972 Sulfide ​ 52 ​ 0.59 ​ ​ ​ 676 Indicated mineral resources 150 ​ 0.50 % 82-84 % 1,648 Measured + Indicated mineral resources ​ 150 ​ 0.50 % 82-84 % 1,648 Oxide ​ 33 ​ 0.38 ​ ​ ​ 276 Sulfide ​ 1,400 ​ 0.45 ​ ​ ​ 13,889 Inferred mineral resources ​ 1,433 ​ 0.45 % 82-84 % 14,165 ​ (1) Mineral resources are reported in situ and are current as of December 31, 2025.
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.
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.
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.
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, 2025, 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 56 Table of Contents ​ (1) Mineral resources are reported in situ and are current as of December 31, 2025.
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.
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. (4) Ore with a solubility index greater than 0.3 could be sent to the leach pad.
The volcanic sequence is comprised from the base to the top by the following units: andesitic flows from intercallations of Crystal Tuff, Tobaceous Sandstone, tuff-breccia (ignimbrite), basalt-andesite flows and Lapilli Tuffs. The Lapilli Tuff is composed of lapilli-sized volcanic fragments outcropping in the topographic highs and distributed in the central, southeastern and northeastern portion of the Pilares area.
The volcanic sequence is comprised from the base to the top by the following units: andesitic flows from interbedding of Crystal Tuff, Tobaceous Sandstone, tuff-breccia (ignimbrite), basalt-andesite flows and Lapilli Tuffs. The Lapilli Tuff is composed of lapilli-sized volcanic fragments outcropping in the topographic highs and distributed in the central, southeastern and northeastern portion of the Pilares area.
(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.
(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. ​ ​ ​ 57 Table of Contents Los Chancas Project ​ The Los Chancas project is located in the Andes Range in southern Peru.
Fuel comes from a local distribution point in the city of San Luis Potosi and is stored in a series of tanks located on the surface. ​ ​ 82 Table of Contents ​ Geology ​ The Charcas mining district is in the east-central part of the central mesa of Mexico, which is part of the larger metallogenic province of Sierra Madre.
Fuel comes from a local distribution point in the city of San Luis Potosi and is stored in a series of tanks located on the surface. ​ ​ 84 Table of Contents ​ Geology ​ The Charcas mining district is in the east-central part of the central mesa of Mexico, which is part of the larger metallogenic province of Sierra Madre.
Highway 45 then connects Sombrete to Fresnillo, Zacatecas and Durango at distances of 110,171 and 125 kilometers, respectively. ​ The San Martin property consists of 73 mining concessions with a total surface of 10,360.95 hectares, with the titles held by IMMSA.
Highway 45 then connects Sombrerete to Fresnillo, Zacatecas and Durango at distances of 110,171 and 125 kilometers, respectively. ​ The San Martin property consists of 73 mining concessions with a total surface of 10,360.95 hectares, with the titles held by IMMSA.
A drone equipped with a LiDAR sensor is used to conduct surveys to measure slope angles, inter-ramp areas, waste rock facilities, and leaching pads. ​ The quality of the rock mass and nearby geological structures are reported daily for scheduled blasts.
A drone equipped with a LiDAR sensor is used to conduct surveys to measure slope angles, inter-ramp areas, waste rock facilities, and leach pads. ​ The quality of the rock mass and nearby geological structures are reported daily for scheduled blasts.
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.
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 79 Table of Contents deposits that are overlain by dissected younger alluvial fan deposits.
We comply with the country’s current regulations and adhere to the recommendations of the International Commission on Large Dams (ICOLD). In addition, we have a committee, comprised of both internal and external specialists, which periodically reviews the safety and operation of each dam.
We comply with the country’s current regulations and adhere to the recommendations of the International Commission on Large Dams (“ICOLD”). In addition, we have a committee, comprised of both internal and external specialists, which periodically reviews the safety and operation of each dam.
The design was based on a Cu price of $3.30/lb and a Mo price of $10.00/lb. (7) The recoveries over the life of mine schedule were: mill: 81% for Cu, 70% for Mo and 74% for Zn, 45% for Cu in crushed leach and 52% for Cu in ROM Leach.
The design was based on a Cu price of $3.30/lb and a Mo price of $10.00/lb. (6) The recoveries over the life of mine schedule were: mill: 81% for Cu, 70% for Mo and 74% for Zn, 45% for Cu in crushed leach and 52% for Cu in ROM Leach.
These recommendations should be reviewed for potential updates to the ultimate pit design. ​ 64 Table of Contents A third IBIS ArcSAR radar is currently operating, which has increased monitoring coverage in the development of the new slopes of Increments 12, 16 and BVZ. At the end of 2023, with the appropriate infrastructure and trained personnel, 24/7 slope monitoring began.
These recommendations should be reviewed for potential updates to the ultimate pit design. ​ A third IBIS ArcSAR radar is currently operating, which has increased monitoring coverage in the development of the new slopes of Increments 12, 16 and BVZ. At the end of 2023, with the appropriate infrastructure and trained personnel, 24/7 slope monitoring began.
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.
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.
(6) There were no changes with regard to the mineral resource figures reported in 2021. ​ 58 Table of Contents MEXICAN OPERATIONS ​ The map below indicates the approximate locations of our Mexican mines and processing facilities: ​ ​ ​ MEXICAN OPEN-PIT SEGMENT ​ Our Mexican open-pit segment operations combine two units of Minera Mexico, La Caridad and Buenavista, which include La Caridad and Buenavista mine complexes and smelting and refining plants and support facilities, which service both complexes. ​ ​ 59 Table of Contents The map below indicates the approximate location of, and access to, our Mexican open-pit mine complexes and our processing facilities: ​ ​ We have ongoing maintenance and improvement programs to ensure the satisfactory performance of our equipment.
(6) There were no changes with regard to the mineral resource figures reported in 2021. ​ 60 Table of Contents MEXICAN OPERATIONS ​ The map below indicates the approximate locations of our Mexican mines and processing facilities: ​ ​ ​ MEXICAN OPEN-PIT SEGMENT ​ Our Mexican open-pit segment operations combine two units of Minera Mexico, La Caridad and Buenavista, which include La Caridad and Buenavista mine complexes and smelting and refining plants and support facilities, which service both complexes. ​ ​ 61 Table of Contents The map below indicates the approximate location of, and access to, our Mexican open-pit mine complexes and our processing facilities: ​ ​ We have ongoing maintenance and improvement programs to ensure the satisfactory performance of our equipment.
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 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, 2025 due to the strikes.
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.
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.
Southern Copper has reported minor activity by contractors at the site since that time has not materially impacted the original Mineral Reserves estimates. Therefore, the estimates as of December 31, 2021 are deemed current as of December 31, 2024.
Southern Copper has reported minor activity by contractors at the site since that time has not materially impacted the original Mineral Reserves estimates. Therefore, the estimates as of December 31, 2021 are deemed current as of December 31, 2025.
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.
Technical Studies are underway. 80 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.
Southern Copper has reported that minor activity by contractors at the site has not materially impacted the total Mineral Resource estimates that were reported as of December 31, 2021. Therefore, the estimates as of December 31, 2021 are deemed current as of December 31, 2024.
Southern Copper has reported that minor activity by contractors at the site has not materially impacted the total Mineral Resource estimates that were reported as of December 31, 2021. Therefore, the estimates as of December 31, 2021 are deemed current as of December 31, 2025.
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.
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.
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.
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.
The ore, once crushed, is processed in the flotation plant to produce concentrates. All the water used in industrial operations at Santa Barbara comes from the mine and the concentrator plant, where a large part of this water is recovered from the tailings dam, creating a closed circuit for its proper use.
The ore, once crushed, is processed in the flotation plant to produce concentrates. All the water used in industrial operations at Santa Barbara comes from the mine 86 Table of Contents and the concentrator plant, where a large part of this water is recovered from the tailings dam, creating a closed circuit for its proper use.
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 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 distance between this complex and the La Caridad mine is approximately 24 kilometers. ​ Smelter ​ Copper concentrates from Buenavista, Santa Barbara, Charcas and La Caridad are transported by rail and truck to the La Caridad smelter where they are processed and cast into copper anodes of 99.2% purity.
The distance between this complex and the La Caridad mine is approximately 24 kilometers. 77 Table of Contents ​ Smelter ​ Copper concentrates from Buenavista, Santa Barbara, Charcas and La Caridad are transported by rail and truck to the La Caridad smelter where they are processed and cast into copper anodes of 99.2% purity.
If more than one process was profitable, then the process with the highest value was chosen. (6) Mineral reserves are reported using a cut-off grade optimization strategy with elevated copper feed grade targets of 0.50% (2025), 0.48% (2026), 0.43% (2027) and 0.40% (2028+) based on a long-range schedule. The estimate was constrained to an ultimate pit design.
If more than one process was profitable, then the process with the highest value was chosen. (5) Mineral reserves are reported using a cut-off grade optimization strategy with elevated copper feed grade targets of 0.48% (2026), 0.43% (2027) and 0.40% (2028+) based on a long-range schedule. The estimate was constrained to an ultimate pit design.
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.
Copper and molybdenum grades are referred to as total copper grade and total molybdenum grade, respectively. ​ 49 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. 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.
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.
(4) No estimates for molybdenum are reported for leachable material, as this element cannot currently be recovered using the leach process envisaged. (5) Numbers in the table have been rounded. Totals may not sum due to rounding.
(5) No estimates for molybdenum are reported for leach material as this element cannot currently be recovered using the leach process envisaged. (6) Numbers in the table have been rounded. Totals may not sum due to rounding.
Discordantly overlying this igneous complex is a sequence of rhyolitic flows. ​ Concentrator ​ La Caridad uses state-of-the-art computer monitoring systems at the concentrator, the crushing plant and the flotation circuit to coordinate inflows and optimize operations.
Discordantly overlying this igneous complex is a sequence of rhyolitic flows. ​ 71 Table of Contents Concentrator ​ La Caridad uses state-of-the-art computer monitoring systems at the concentrator, the crushing plant and the flotation circuit to coordinate inflows and optimize operations.
The industrial railroad includes a car repair shop which is responsible for maintaining and repairing the car fleet. Annual transported tonnage is approximately 5.7 million tonnes. ​ 53 Table of Contents PERUVIAN PROJECTS ​ Tia Maria Project ​ The Tia Maria Project is in the Districts of Cocachacra, Mejia and Deán Valdivia, Province of Islay, and Arequipa Region.
The industrial railroad includes a car repair shop which is responsible for maintaining and repairing the car fleet. Annual transported tonnage is approximately 5.3 million tonnes. ​ 55 Table of Contents PERUVIAN PROJECTS ​ Tia Maria Project ​ The Tia Maria Project is in the Districts of Cocachacra, Mejia and Deán Valdivia, Province of Islay, and Arequipa Region.
Plant I has four solvent extraction tanks with a nominal capacity of 18,000 liters per minute of PLS and 54 electrowinning cells and has a daily production capacity of 30 tonnes of copper cathodes with 99.999% purity.
Plant I has four solvent extraction tanks with a nominal capacity of 18,000 liters per minute of PLS and 54 electrowinning cells and has a 65 Table of Contents daily production capacity of 30 tonnes of copper cathodes with 99.999% purity.
(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.
(3) For further information on assumptions used in preparing the mineral resource estimates, for the following operations: Cuajone, Toquepala, Buenavista and La Caridad-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 the 2024 Form 10-K filed on March 3, 2025.
This project will reduce mining costs and increase SX-EW copper recovery, allowing the Buenavista unit to reach its copper production capacity of 500,000 tonnes. ​ The original concentrator currently has a nominal milling capacity of 82,000 tonnes per day. The second concentrator began operations in 2016 and currently has a nominal milling capacity of 115,000 tonnes per day.
This project will reduce mining costs and increase SX-EW copper recovery, allowing the Buenavista unit to reach its copper production capacity of 500,000 tonnes. ​ The original concentrator currently has a nominal milling capacity of 86,000 tonnes per day. The second concentrator began operations in 2016 and currently has a nominal milling capacity of 120,000 tonnes per day.
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.
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, $1.0 9 /lb for Pb, $1.32 /lb for Zn and $3.80/lb for Cu.
(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.
(3) For further information on assumptions used in preparing the mineral reserve estimates, for the following mineral properties: Cuajone, Toquepala, Buenavista and La Caridad-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 the 2024 Form 10-K filed on March 3, 2025.
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.
As of December 31, 2025, we considered $3.30 per pound of copper and $10.00 per pound of molybdenum. ​ 92 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.
Material with a copper grade over 0.25% is loaded to the in-pit crushing and conveying (IPCC) system and sent to the milling circuit, where giant rotating crushers reduce the size of the rocks to approximately one-half of an inch. The ore is then sent to the ball mills, which grind it to the consistency of fine powder.
Material with a copper grade approximately equivalent to 0.170%–0.173% is loaded to the in-pit crushing and conveying (IPCC) system and sent to the milling circuit, where giant rotating crushers reduce the size of the rocks to approximately one-half of an inch. The ore is then sent to the ball mills, which grind it to the consistency of fine powder.
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.
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 2025, 2024 and 2023 for our Ilo refinery and precious metals plants: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance 2025 - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ Refinery ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Volume ​ ​ ​ % ​ Cathodes produced (kt) 244.2 287.9 289.7 (43.7) (15.2) % Average copper grade (%) 99.999 99.998 99.999 0.001 0.0 % Refined silver produced (000 Kg) 130.5 126.6 109.7 3.9 3.1 % Refined gold produced (kg) 225.9 210.3 223.1 15.6 7.4 % Commercial grade selenium produced (tons) 53.3 52.8 50.0 0.5 0.9 % 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.
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.
The 33 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.
(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.
(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 the 2024 Form 10-K filed on March 3, 2025.
(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 Santa Barbara 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 estimates, including a detailed description of the cut-off determination, please refer to Chapter 11 of the Santa Barbara operations technical report summary prepared by qualified persons, under Exhibit 96.11 to the 2024 Form 10-K filed on March 3, 2025.
The Michiquillay deposit is located on lands of the Michiquillay Rural Community and the Encañada Rural Community. We have signed surface land use agreements with both communities which allow us to conduct exploration activities. Permits for the use of water for exploration purposes are currently being processed by the National Water Authority and the Marañon Local Authority.
The Michiquillay deposit is located on lands of the Michiquillay Rural Community and the Encañada Rural Community. We have signed surface land use agreements with both communities which allow us to conduct exploration activities. Permits for the use of water for exploration purposes requested to the National Water Authority and the Marañon Local Authority are currently valid.
(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.
(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 96.10 to the 2024 Form 10-K filed on March 3, 2025.
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.
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.
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.
A copper-gold prospect located in the Atacama region, northern Chile has been under exploration since 2014. In 2016 and 2017, we conducted a diamond drilling program of 22,108 meters and finished the conceptual study. In 2023 and 2024, we concluded the pre-feasibility study of the project.
During the Cenozoic, alluvian and fluvial sediments were deposited as erosion of the Cananea Mountains occurred.
During the Cenozoic, alluvial and fluvial sediments were deposited as erosion of the Cananea Mountains occurred.
Additionally, geotechnical inspections of the slope in the pit, waste and leachable deposits were conducted to comply with the new requirements of the Peruvian Ministry of Energy and Mines. ​ Currently, studies are being conducted to align with Supreme Decree 034-2023-EM. This includes a stability analysis, geotechnical risk management, and an update on seismic hazards.
Additionally, geotechnical inspections of the slope in the pit, waste and leachable deposits were conducted to comply with the new requirements of the Peruvian Ministry of Energy and Mines. ​ Studies to comply with Supreme Decree 034-2023-EM were completed in 2025. This includes a stability analysis, geotechnical risk management, and an update on seismic hazards.
We do not expect that these activities will generate any adverse material effects in our operations. ​ We have six tailings dams in operation in Mexico and one in Peru as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Country Operation Name Current Height Material Method Mexico Buenavista Tailings dam # 3 85 meters Borrowed Downstream Mexico Buenavista New tailings dam 92 meters Borrowed Downstream Mexico La Caridad Tailings dam # 7 182 meters Borrowed Downstream Mexico Charcas Tailings dam 57 meters Coarse tailings Upstream Mexico Santa Barbara Noriega dam 51 meters Coarse tailings Upstream Mexico San Martin Tailings dam 5 & 7 74 meters Coarse tailings Upstream Peru Cuajone and Toquepala Quebrada Honda 144 meters Coarse tailings Downstream ​ ​ INDIVIDUAL PROPERTY DISCLOSURE ​ In 2021, we adopted the disclosure requirements of S-K 1300.
We do not expect that these activities will generate any adverse material effects in our operations. ​ We have six tailings dams in operation in Mexico and one in Peru as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Country ​ ​ ​ Operation ​ ​ ​ Name ​ ​ ​ Current Height ​ ​ ​ Material ​ ​ ​ Method Mexico Buenavista Tailings dam # 3 102 meters Borrowed Downstream Mexico Buenavista New tailings dam 118 meters Borrowed Downstream Mexico La Caridad Tailings dam # 7 186 meters Borrowed Downstream Mexico Charcas Tailings dam 57 meters Coarse tailings Upstream Mexico Santa Barbara Noriega dam 56 meters Coarse tailings Upstream Mexico San Martin Tailings dam 5 & 7 74 meters Coarse tailings Upstream Peru Cuajone and Toquepala Quebrada Honda 148 meters Coarse tailings Downstream ​ ​ INDIVIDUAL PROPERTY DISCLOSURE ​ In 2021, we adopted the disclosure requirements of S-K 1300.
Material with a copper grade over 0.25% is loaded onto an overland conveyor belt and sent to the crushing circuit, where rotating crushers reduce the size of the rocks by approximately 85% to less than one-half of an inch.
Material with a copper grade approximately equivalent to 0.184%–0.188% is loaded onto an overland conveyor belt and sent to the crushing circuit, where rotating crushers reduce the size of the rocks by approximately 85% to less than one-half of an inch.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThis 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.
Biggest changeThis 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 @ $143.47(1) ​ ($ 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, 2025. ​ The SCC share repurchase program has registered no activity since the third quarter of 2016.
The 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
The chart below analyzes the total return on SCC’s common stock for the period commencing December 31, 2020 and ending December 31, 2025, 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, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Return per Year ​ ​ ​ ​ 2021 ​ ​ ​ 2022 ​ ​ ​ 2023 ​ ​ ​ 2024 ​ ​ ​ 2025 SCC (0.3) % 3.5 % 49.1 % 11.2 % 64.8 % S&P 500 26.9 % (19.4) % 24.2 % 23.3 % 16.4 % S&P M + MS 34.0 % 11.5 % 20.1 % (5.2) % 82.6 % ​ 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. ​ 98 Table of Contents
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.
As of December 31, 2025, 864 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, 2025: ​ 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 142,800 ​ For additional information see Note 14—“Stockholders Equity—Directors’ Stock Award Plan.” ​ SCC COMMON STOCK REPURCHASE PLAN: ​ In 2008, our Board of Directors authorized a $500 million share repurchase program that has since been increased by the Board of Directors and is currently authorized to $3 billion.
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.
The NYSE closing price of SCC common shares as of December 31, 2025, was $143.47 and the maximum number of shares that the Company could purchase at that price under the share repurchase program was approximately 0.6 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, 2025 and 2024. 97 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, 2025.

Item 7. Management's Discussion & Analysis

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

101 edited+45 added−58 removed54 unchanged
Biggest change(68.6) ​ ​ ​ ​ - Water (13.6) ​ ​ ​ ​ - Other, net (2.0) ​ ​ ​ • Increase in depreciation, amortization and depletion expense. 12.3 ​ • Increase in exploration expense. ​ 5.9 ​ • Increase in selling, general and administrative expenses. ​ 3.3 ​ Less: ​ ​ ​ ​ • Decrease in volume and cost of metals purchased from third parties. ​ ​ (33.5) ​ Operating cost and expenses for 2024 ($ in millions) ​ $ 5,878.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance NON ‑ OPERATING INCOME (EXPENSE) 2024 2023 2022 2024 - 2023 2023 - 2022 Interest expense ​ $ (376.5) ​ $ (376.3) ​ $ (387.1) ​ $ (0.2) ​ $ 10.8 Capitalized interest ​ 42.4 ​ 49.6 ​ 47.0 ​ (7.2) ​ 2.6 Other income (expense) ​ 5.5 ​ 3.6 ​ 117.1 ​ 1.9 ​ (113.5) Interest income ​ 131.4 ​ 86.6 ​ 35.0 ​ 44.8 ​ 51.6 Total non‑operating income (expense) ​ $ (197.3) ​ $ (236.5) ​ $ (188.0) ​ $ 39.3 ​ $ (48.5) ​ 2024-2023 : Non-operating income and expense were a net expense of $197.3 million in 2024, compared to a net expense of $236.5 million in 2023.
Biggest changeThe increase of $539.6 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating cost and expenses for 2024 ($ in millions) ​ ​ ​ $ 5,878.7 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 396.2 ​ ​ - Workers participation 166.6 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 75.0 ​ ​ ​ ​ - Sales expenses 34.5 ​ ​ ​ ​ - Exchange rate variance 32.7 ​ ​ ​ ​ - Energy costs 32.2 ​ ​ ​ ​ - Inventory variance 29.5 ​ ​ ​ ​ - Operations contractors 15.3 ​ ​ ​ ​ - Explosives 14.6 ​ ​ ​ ​ - Other, net (4.3) ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ 121.6 ​ • Increase in depreciation, amortization and depletion expense. ​ ​ ​ 22.5 ​ • Increase in selling, general and administrative expenses. ​ 7.3 ​ Less: ​ ​ ​ ​ • Decrease in exploration expense. ​ ​ (8.0) ​ Operating cost and expenses for 2025 ($ in millions) ​ $ 6,418.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance NON ‑ OPERATING INCOME (EXPENSE) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Interest expense ​ $ (416.7) ​ $ (376.5) ​ $ (376.3) ​ $ (40.1) ​ $ (0.2) Capitalized interest ​ 47.4 ​ 42.4 ​ 49.6 ​ 4.9 ​ (7.2) Other income (expense) ​ (47.7) ​ 5.5 ​ 3.6 ​ (53.2) ​ 1.9 Interest income ​ 199.7 ​ 131.4 ​ 86.6 ​ 68.3 ​ 44.8 Total non‑operating income (expense) ​ $ (217.4) ​ $ (197.3) ​ $ (236.5) ​ $ (20.1) ​ $ 39.3 ​ 2025-2024 : Non-operating income and expense were a net expense of $217.4 million in 2025, compared to a net expense of $197.3 million in 2024.
The cash, cash equivalents and short-term investments maintained in our foreign operations are generally used to cover local operating and investment expenses.
The cash and cash equivalents and short-term investments maintained in our foreign operations are generally used to cover local operating and investment expenses.
We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. ​ Mineral Reserves : For ore reserve estimation, we use metal price assumptions of $3.30 per pound for copper and $10.00 per pound for molybdenum.
We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. ​ Mineral Reserves : For mineral reserve estimation, we use metal price assumptions of $3.30 per pound for copper and $10.00 per pound for molybdenum.
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.
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, 2025, 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, 2025.
Our IMMSA unit includes five underground mines and several industrial processing facilities. ​ Segment information is included in our review of “Results of Operations” in this item and also in Note 19 “Segment and Related Information” of the consolidated financial statements. ​ Inflation and Exchange Rate Effect of the Peruvian sol and the Mexican peso: Our functional currency is the U.S. dollar and our revenues are primarily denominated in U.S. dollars.
Our IMMSA unit includes five underground mines and several industrial processing facilities. ​ Segment information is included in our review of “Results of Operations” in this item and also in Note 18 “Segment and Related Information” of the consolidated financial statements. ​ Inflation and Exchange Rate Effect of the Peruvian sol and the Mexican peso: Our functional currency is the U.S. dollar and our revenues are primarily denominated in U.S. dollars.
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.
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.
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.
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.
In the third quarter of 2024, Parque Eolico de Fenicias began supplying energy to the IMMSA unit. For further information, please see Note 18 “Related party transactions”. ​ Additionally, we have a commitment to purchase power for our Mexican operations from MGE, a subsidiary of Grupo Mexico through 2032.
In the third quarter of 2024, Parque Eolico de Fenicias began supplying energy to the IMMSA unit. For further information, please see Note 17 “Related party transactions”. ​ Additionally, we have a commitment to purchase power for our Mexican operations from MGE, a subsidiary of Grupo Mexico through 2032.
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.
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, 2025.
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.
See Item 1 “Business—Cautionary Statement.” ​ For details on the discussion on variations between 2024 and 2023, please see Management´s Discussion and Analysis of Financial Condition and Results of Operations, on the 2024 Form 10-K. ​ EXECUTIVE OVERVIEW ​ Business: Our business is primarily the production and sale of copper.
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.
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 125.
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.
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.
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.
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.
In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract.
In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the 112 Table of Contents shipments upon settlement with customers pursuant to the terms of the contract.
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.
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 2.8 to 7.5 times said amounts. ​ 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.
In Peru, the provision for workers’ participation is calculated at 8% of pre-tax earnings. The current portion of this participation, which is accrued during the year, is based on the Peruvian Branch’s taxable income and is largely distributed to workers after final results are determined for the year.
In Peru, the provision for workers’ participation is calculated at 8% of pre-tax earnings. The current portion of this participation, which is accrued during the year, is based on the Peruvian Branch’s taxable income and is largely distributed to workers 123 Table of Contents after final results are determined for the year.
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.
We continuously evaluate new projects on the basis of our long-term corporate objectives, strategic and operating fit, expected return on investment, required 106 Table of Contents investment, estimated production, estimated cash-flow profile, social and environmental considerations, among other factors.
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.
The proceeds of the offering are intended to 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 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.
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 April 30, 2029.
We cannot make any assurances that we will undertake any of these projects or that the information noted is accurate. ​ ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) PRACTICES ​ Southern Copper Corporation, among the top 10 mining companies with the highest ratings for sustainability in 2024.
We cannot make any assurances that we will undertake any of these projects or that the information noted is accurate. ​ ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) PRACTICES ​ Southern Copper Corporation is among the top three mining companies with the highest ratings for sustainability in 2025.
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.
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, 2025, the Company has committed approximately $1,310.5 million for the development of its capital investment projects.
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 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 2026, assuming that expected metal production and sales are achieved; 2025 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) ​ $ 120.0 ​ $ 34.8 ​ $ 25.6 ​ $ 14.1 ​ 103 Table of Contents Business Segments: We view our Company as having three reportable segments and manage it on the basis of these segments.
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 rise in net income for 2025 was largely driven by higher metal prices and increased sales volumes for our main by-products. ​ ​ 117 Table of Contents SEGMENT RESULTS ANALYSIS ​ We have three segments: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations.
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.
Please see Item 7A “Quantitative and Qualitative Disclosures about Market Risk” for more detailed information. ​ Capital Investment Program: We made capital investments of $1,325.3 million in 2025 and $1,027.3 million in 2024.
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 implementing a Strategic Workplace Plan, focused on capacity building; communication campaigns; revising of human resources processes to increase inclusivity and equity; and making physical workplace adjustments 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 111 Table of Contents accordance with U.S.
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.
In addition, we believe that we will be able to access additional external financing on reasonable terms, if required. ​ As of December 31, 2025, $1.620.1 million of the Company´s total cash and cash equivalents, and short-term investments of $4,909.3 million were held in foreign subsidiaries.
Variations in ore reserve calculations from changes in metal price assumptions generally do not create material changes in our financial results.
Variations in mineral reserve estimations from changes in metal price assumptions generally do not create material changes in our financial results.
At 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.
At 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) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ 2024 - 2023 Refined (including SX‑EW) ​ 967.5 ​ 1,053.3 ​ 1,064.1 ​ (85.8) (10.8) ​ Rod ​ 346.5 ​ 337.8 ​ 338.0 ​ 8.7 (0.2) ​ Concentrates and other ​ 752.9 ​ 678.0 ​ 559.7 ​ 74.9 118.3 ​ Total ​ 2,067.0 ​ 2,069.1 ​ 1,961.8 ​ (2.1) 107.3 ​ ​ 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 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Refined (including SX‑EW) 46.8 % 50.9 % 54.2 % Rod 16.8 % 16.3 % 17.2 % Concentrates and other 36.4 % 32.8 % 28.5 % 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 2025, 2024 and 2023 as a percentage of total production cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ 2025 ​ ​ ​ 2024 ​ 2023 ​ Power 11.5 % 11.0 % 13.3 % Labor 12.7 % 13.3 % 11.6 % Fuel 14.8 % 15.4 % 15.7 % Maintenance 24.7 % 23.4 % 21.4 % Operating materials 18.6 % 19.0 % 19.6 % Other 17.8 % 17.9 % 18.4 % Total 100.0 % 100.0 % 100.0 % ​ 115 Table of Contents 2025-2024: Operating costs and expenses were $6,418.3 million in 2025 compared to $5,878.7 million in 2024.
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).
Additionally, net sales in 2025 were positively impacted by upward adjustments of $197.8 million related to provisionally priced sales, reflecting the increase in metal prices. ​ The table below outlines the average published market metals prices for our metals for each of the three years in the three-year period ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % Variance ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 2024 - 2023 Copper price ($per pound—LME) ​ $ 4.51 ​ $ 4.15 ​ $ 3.85 ​ 8.7 % 7.8 % Copper price ($per pound—COMEX) ​ $ 4.82 ​ $ 4.22 ​ $ 3.86 ​ 14.2 % 9.3 % Molybdenum price ($per pound)(1) ​ $ 22.01 ​ $ 21.21 ​ $ 23.73 ​ 3.8 % (10.6) % Zinc price ($per pound—LME) ​ $ 1.30 ​ $ 1.26 ​ $ 1.20 ​ 3.2 % 5.0 % Silver price ($per ounce—COMEX) ​ $ 39.99 ​ $ 28.25 ​ $ 23.41 ​ 41.6 % 20.7 % (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 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ 2023 ​ Copper 74.8 % 76.6 % 76.7 % Molybdenum 10.5 % 10.9 % 11.4 % Silver 7.3 % 5.1 % 4.2 % Zinc 3.9 % 3.8 % 3.0 % Other by‑products 3.5 % 3.6 % 4.7 % Total 100.0 % 100.0 % 100.0 % ​ 114 Table of Contents The table below provides our copper sales by type of product (in million pounds).
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
These include committed purchase orders and executed contracts for our Mexican projects and for our Peruvian expansion projects. ​ ​ ​ 124 Table of Contents NON-GAAP INFORMATION RECONCILIATION ​ Operating cash cost: Following is a reconciliation of “Operating Cash Cost” (see page 102) 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Cost of sales (exclusive of depreciation, amortization and depletion) ​ $ 5,359.2 ​ $ 2.63 ​ $ 4,841.4 ​ $ 2.35 ​ $ 4,687.7 ​ $ 2.42 Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 137.8 ​ 0.07 ​ 130.5 ​ 0.06 ​ 127.2 ​ 0.07 Sales premiums, net of treatment and refining charges ​ (153.6) ​ ​ (0.08) ​ (39.5) ​ ​ (0.02) ​ (7.7) ​ (0.00) Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers’ participation ​ (463.1) ​ ​ (0.23) ​ (296.4) ​ ​ (0.15) ​ (253.2) ​ (0.13) Cost of metals purchased from third parties ​ (284.0) ​ ​ (0.14) ​ (162.4) ​ ​ (0.08) ​ (195.8) ​ (0.10) Royalty charge and other, net ​ (160.8) ​ ​ (0.08) ​ (96.9) ​ ​ (0.05) ​ (116.7) ​ (0.06) Inventory change ​ (16.7) ​ ​ (0.01) ​ 12.8 ​ ​ 0.01 ​ (6.5) ​ (0.00) Operating Cash Cost before by ‑ product revenues ​ $ 4,418.8 ​ $ 2.17 ​ $ 4,389.5 ​ $ 2.13 ​ $ 4,235.0 ​ $ 2.19 Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ By‑product revenues(1) ​ (3,207.1) ​ (1.58) ​ (2,524.1) ​ (1.23) ​ (2,194.0) ​ (1.13) Net revenue on sale of metal purchased from third parties ​ (21.9) ​ ​ (0.01) ​ (42.2) ​ (0.02) ​ (49.8) ​ (0.03) Total by‑product revenues ​ (3,228.9) ​ (1.59) ​ (2,566.3) ​ (1.25) ​ (2,243.8) ​ (1.16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Cash Cost net of by ‑ product revenues ​ 1,189.9 ​ 0.58 ​ 1,823.2 ​ 0.89 ​ 1,991.2 ​ 1.03 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total pounds of copper produced (in millions) ​ 2,035.6 ​ ​ ​ 2,057.7 ​ ​ ​ 1,935.4 ​ ​ (1) By-product revenues included in our presentation of operating cash cost contain the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound Molybdenum ​ $ (1,405.1) ​ $ (0.69) ​ $ (1,246.4) ​ $ (0.61) ​ $ (1,129.7) ​ $ (0.58) Silver ​ (880.4) ​ (0.43) ​ (529.4) ​ (0.26) ​ (390.6) ​ (0.20) Zinc ​ (476.2) ​ (0.23) ​ (354.3) ​ (0.17) ​ (226.0) ​ (0.12) Sulfuric Acid ​ (261.4) ​ (0.13) ​ (262.4) ​ (0.13) ​ (318.4) ​ (0.17) Gold ​ (118.7) ​ (0.06) ​ (81.4) ​ (0.04) ​ (77.4) ​ (0.04) Other ​ (65.2) ​ (0.03) ​ (50.2) ​ (0.02) ​ (51.9) ​ (0.03) Total ​ $ (3,207.1) ​ $ (1.58) ​ $ (2,524.1) ​ $ (1.23) ​ $ (2,194.0) ​ $ (1.13) ​ The by-product revenue presented does not match with the sales value reported by segment on page 184 because the above table excludes purchases from third parties, which are reclassified to net revenue on sale of metal purchased from third parties. ​ 125 Table of Contents
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.
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. ​ Dividends: On January 22, 2026, the Board of Directors authorized a quarterly cash dividend of $1.00 per share of common stock and a stock dividend of 0.0085 shares of common stock per share of common stock, payable on February 27, 2026, for shareholders of record at the close of business on February 10, 2026. ​ In lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $179.93, which is the average of the high and low share price on January 22, 2026. ​ FINANCING ​ Our total debt as of December 31, 2025 was $6,750.7 million, compared to $6,258.3 million at December 31, 2024, net of the unamortized discount and issuance costs of notes issued under par for $100.5 million and $92.8 million as of December 31, 2025 and 2024, respectively.
Going forward, we will continue to work side-by-side with institutions and authorities to serve the common good in the regions in which we operate. ​ COMMUNITY OUTREACH ​ Southern Copper Corporation prioritizes being a good neighbor in the localities near our operations.
Going forward, we will continue to collaborate with institutions and authorities to advance the common good in the regions in which we operate. ​ COMMUNITY OUTREACH ​ Southern Copper Corporation prioritizes being a good neighbor to the communities near our operations.
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.
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, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance Copper Sales (million pounds) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 2024 - 2023 Peruvian operations ​ 894.3 ​ 890.4 ​ 805.8 ​ 3.9 84.6 ​ Mexican open‑pit ​ 1,166.9 ​ 1,191.1 ​ 1,151.5 ​ (24.2) 39.6 ​ Mexican IMMSA unit ​ 28.0 ​ 33.0 ​ 26.3 ​ (5.0) 6.7 ​ Other and intersegment elimination ​ (22.3) ​ (45.4) ​ (21.8) ​ 23.2 (23.6) ​ Total copper sales ​ 2,067.0 ​ 2,069.1 ​ 1,961.8 ​ (2.1) 107.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance By ‑ product Sales (million pounds, except silver—million ounces) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 2024 - 2023 Peruvian operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 33.1 ​ 29.5 ​ 22.1 ​ 3.6 7.4 ​ Silver 6.5 ​ 5.6 ​ 4.4 ​ 0.9 1.2 ​ Mexican open‑pit operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 35.6 ​ 34.5 ​ 37.2 ​ 1.1 (2.7) ​ Silver 13.2 ​ 11.9 ​ 9.9 ​ 1.3 2.0 ​ Zinc‑refined and in concentrate ​ 205.8 ​ 103.4 ​ — ​ 102.4 ​ 103.4 ​ IMMSA unit ​ ​ ​ ​ ​ ​ ​ ​ ​ Zinc‑refined and in concentrate 192.6 ​ 214.3 ​ 219.7 ​ (21.8) (5.4) ​ Silver 7.2 ​ 6.6 ​ 6.9 ​ 0.5 (0.3) ​ Other and intersegment elimination ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver (2.9) ​ (3.3) ​ (3.2) ​ 0.4 (0.1) ​ Zinc‑refined and in concentrate (19.3) ​ — ​ — ​ (19.3) — ​ Total by‑product sales ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate 68.7 ​ 64.0 ​ 59.3 ​ 4.7 4.7 ​ Zinc‑refined and in concentrate 379.0 ​ 317.8 ​ 219.7 ​ 61.3 98.1 ​ Silver 24.0 ​ 20.8 ​ 18.0 ​ 3.2 2.8 ​ ​ Peruvian Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2025 ​ 2024 ​ 2023 ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net sales $ 5,247.6 ​ $ 4,604.6 ​ $ 3,854.3 ​ $ 643.0 ​ $ 750.3 Operating costs and expenses (2,647.0) ​ (2,512.1) ​ (2,380.9) ​ (134.8) ​ (131.2) Operating income $ 2,600.7 ​ $ 2,092.5 ​ $ 1,473.4 ​ $ 508.2 ​ $ 619.1 ​ Net sales in 2025 increased by $643.0 million compared to 2024.
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 of December 31, 2025, our copper mineral reserves, estimated at a copper price of $3.30 per pound, totaled 108,955 million pounds of contained copper, distributed in the following locations: ​ ​ ​ ​ Copper contained in ore reserves ​ ​ ​ Million pounds Mexican open‑pit 44,154 Peruvian operations 45,527 Development projects 19,274 Total 108,955 ​ Outlook: Various key factors affect our outcome.
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.
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. ​ 102 Table of Contents 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, 2025: ​ Operating cash cost per pound of copper produced(1) (In millions, except cost per pound and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 - 2024 ​ 2024 - 2023 ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Value ​ ​ ​ % ​ ​ ​ Value ​ ​ ​ % ​ ​ ​ Total operating cash cost before by‑product revenues ​ $ 4,418.8 ​ $ 4,389.5 ​ $ 4,235.0 ​ $ 29.3 0.7 % $ 154.5 3.6 % Total by‑product revenues ​ $ (3,228.9) ​ $ (2,566.3) ​ $ (2,243.8) ​ $ (662.6) 25.8 % (322.5) 14.4 % Total operating cash cost net of by‑product revenues ​ $ 1,189.9 ​ $ 1,823.2 ​ $ 1,991.2 ​ $ (633.3) (34.7) % $ (168.0) (8.4) % Total pounds of copper produced(2) ​ 2,035.6 ​ 2,057.7 ​ 1,935.4 ​ (22.2) (1.1) % 122.3 6.3 % Operating cash cost per pound before by ‑ product revenues ​ $ 2.17 ​ $ 2.13 ​ $ 2.19 ​ $ 0.04 1.8 % $ (0.05) (2.5) % By ‑ products per pound revenues ​ $ (1.59) ​ $ (1.25) ​ $ (1.16) ​ $ (0.34) 27.2 % $ (0.09) 7.6 % Operating cash cost per pound net of by ‑ product revenues ​ $ 0.58 ​ $ 0.89 ​ $ 1.03 ​ $ (0.30) (34.0) % $ (0.14) (13.9) % (1) These are non-GAAP measures, see page 125 for reconciliation to GAAP measure.
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.
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. ​ ​ 113 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, 2025 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of Earnings Data ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net sales ​ $ 13,420.0 ​ $ 11,433.4 ​ $ 9,895.8 ​ $ 1,986.6 ​ $ 1,537.6 Operating costs and expenses ​ (6,418.3) ​ (5,878.7) ​ (5,703.5) ​ (539.6) ​ (175.2) Operating income ​ 7,001.7 ​ 5,554.7 ​ 4,192.3 ​ 1,447.0 ​ 1,362.4 Non‑operating income (expense) ​ (217.4) ​ (197.3) ​ (236.5) ​ (20.1) ​ 39.3 Income before income taxes ​ 6,784.3 ​ 5,357.4 ​ 3,955.8 ​ 1,426.9 ​ 1,401.6 Income taxes ​ (2,504.1) ​ (2,027.4) ​ (1,578.0) ​ (476.6) ​ (449.4) Deferred income taxes ​ 33.9 ​ 52.2 ​ 59.1 ​ (18.2) ​ (6.9) Equity earnings of affiliate ​ 34.0 ​ 6.4 ​ (2.2) ​ 27.6 ​ 8.6 Net income attributable to non‑controlling interest ​ (13.3) ​ (11.8) ​ (9.5) ​ (1.5) ​ (2.3) Net income attributable to SCC ​ $ 4,334.9 ​ $ 3,376.8 ​ $ 2,425.2 ​ $ 958.1 ​ $ 951.6 ​ Net sales in 2025 reached a record high of $13,420.0 million and represented an increase of $1,986.6 million (+17.4%) compared to 2024.
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.
In 2024, this item included $31.2 million income due to insurance recovery in Peru, and the 2025 figures include a write-off of certain expenses related to the Tia Maria project. ● $(35.2) million increase in interest expense net of capitalized interest due to the Minera Mexico debt issuance in February 2025; partially offset by, ● $68.3 million increase in interest income due to higher cash and cash equivalents balances in 2025. ​ ​ 116 Table of Contents Income taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ ​ 2025 ​ ​ ​ 2024 ​ 2023 ​ Provision for income taxes ($ in millions) ​ $ 2,470.1 ​ $ 1,975.3 ​ $ 1,518.9 ​ Effective income tax rate ​ 36.4 % ​ 36.9 % ​ 38.4 % ​ The income tax provision includes Peruvian, Mexican and U.S. federal income taxes. ​ Components of income tax provision for 2025, 2024 and 2023 include the following ($ in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Statutory income tax provision ​ $ 2,045.2 ​ $ 1,688.0 ​ $ 1,284.0 Peruvian royalty ​ 79.6 ​ 57.5 ​ 44.6 Mexican royalty ​ 233.5 ​ 142.9 ​ 118.6 Peruvian special mining tax ​ 111.8 ​ 86.9 ​ 71.7 Total income tax provision ​ $ 2,470.1 ​ $ 1,975.3 ​ $ 1,518.9 ​ The decrease in the effective income tax rate in 2025 compared to the same period in 2024 was primarily attributable to a variance in uncertain tax positions recorded in the U.S., Peruvian and Mexican jurisdictions. ​ Equity earnings of affiliate ​ In 2025, 2024 and 2023 we recognized $34.0 million, $6.4 million and $(2.2) 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 2025 was $13.3 million, $11.8 million in 2024, and $9.5 million in 2023. ​ Net Income attributable to SCC ​ Net income attributable to SCC in 2025 amounted to $4,334.9 million, a 28.4% increase from the $3,376.8 million reported in 2024.
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.
To achieve its full production potential, the Company is developing an organic growth plan to increase our copper volume production to 1.6 million tonnes by 2033. ​ For 2026, the Board of Directors approved a capital investment program of $1,925.5 million. ​ ​ KEY MATTERS ​ Below, we discuss several matters that we believe are important to understand our results of operations and financial condition.
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.
For further information, please see “Capital Investment Program” under this Item on page 104. ​ The 2025 investing activities also included net purchase of short-term investments of $359.3 million. ​ 2024: Net cash used for investing activities in 2024 included $1,027.3 million for capital investments.
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).
It has the following three main components: 1) Participatory Social Diagnosis to allow communities to raise human rights concerns, 2) Social Management Plans that define actions to address those concerns, and 3) Service and Attention Center (“SAC”), a mechanism developed with guidance from the United Nations Office of the High Commissioner for Human Rights in Mexico that allows communities to communicate their concerns to us immediately. ​ SCC also maintains a human rights due diligence process to protect the rights of employees and contractor staff.
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.
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. ​ Earnings: The table below highlights key financial and operational data of our Company for the three years ended December 31, 2025 (in millions, except copper price and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Copper price LME ​ ​ 4.51 ​ ​ 4.15 ​ ​ 3.85 ​ ​ 0.36 ​ 0.30 Copper price COMEX ​ ​ 4.82 ​ ​ 4.22 ​ ​ 3.86 ​ ​ 0.60 ​ ​ 0.36 Pounds of copper sold ​ ​ 2,067.0 ​ ​ 2,069.1 ​ ​ 1,961.8 ​ ​ (2.1) ​ 107.3 Net sales ​ $ 13,420.0 ​ $ 11,433.4 ​ $ 9,895.8 ​ $ 1,986.6 ​ $ 1,537.6 Cost of sales ​ $ (5,359.2) ​ $ (4,841.4) ​ $ (4,687.7) ​ $ (517.8) ​ $ (153.7) Operating income ​ $ 7,001.7 ​ $ 5,554.7 ​ $ 4,192.3 ​ $ 1,447.0 ​ $ 1,362.4 Income before income taxes ​ $ 6,784.3 ​ $ 5,357.4 ​ $ 3,955.8 ​ $ 1,426.9 ​ $ 1,401.6 Net income attributable to SCC ​ $ 4,334.9 ​ $ 3,376.8 ​ $ 2,425.2 ​ $ 958.1 ​ $ 951.6 Earnings per share ​ $ 5.24 ​ $ 4.21 ​ $ 3.05 ​ $ 1.03 ​ $ 1.16 Cash dividend per share ​ $ 3.10 ​ $ 2.50 ​ $ 4.00 ​ $ 0.60 ​ $ (1.50) Stock dividend per share ​ $ 3.50 ​ $ 2.10 ​ $ — ​ $ 1.40 ​ $ 2.10 ​ 100 Table of Contents Net sales in 2025 reached a record high of $13,420.0 million and represented an increase of $1,986.6 million (+17.4%) compared to 2024.
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).
Our focus is on continuously enhancing the responsible use of natural resources while adhering to legal standards for preventing, mitigating, controlling and remediating environmental impacts. ​ To improve our performance on climate-related issues, we have embarked on a multi-year effort to align our climate change disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
This debt is all denominated in dollars at fixed interest rates, weighed at 5.82%. ​ On February 5, 2025, our subsidiary Minera Mexico S.A. de C.V. issued a $1 billion 7-year Note of fixed-rate senior unsecured notes.
This debt is all denominated in dollars at fixed interest rates at a weighted average rate of 5.93%. ​ On February 5, 2025, our subsidiary Minera Mexico S.A. de C.V. issued $1 billion of fixed-rate senior unsecured notes. This debt is due in 2032 and has an annual interest rate of 5.625%.
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.
Please see Note 18 “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, 2025. ​ Cash Flow: ​ The following table shows the cash flow for the three year period ended December 31, 2025 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net cash provided by operating activities ​ $ 4,752.1 ​ $ 4,421.7 ​ $ 3,573.1 ​ $ 330.4 ​ $ 848.6 Net cash used in investing activities ​ $ (1,684.6) ​ $ (673.3) ​ $ (1,398.4) ​ $ (1,011.3) ​ $ 725.1 Net cash used in financing activities ​ $ (2,007.2) ​ $ (1,645.2) ​ $ (3,101.2) ​ $ (362.0) ​ $ 1,456.0 ​ 121 Table of Contents Net cash provided by operating activities: ​ The 2025, 2024 and 2023 change in net cash from operating activities include (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net income $ 4,348.2 ​ $ 3,388.6 ​ $ 2,434.7 ​ $ 959.6 ​ $ 953.9 Depreciation, amortization and depletion 868.4 ​ 845.9 ​ 833.6 ​ 22.5 ​ 12.3 Benefit for deferred income taxes (33.9) ​ (52.2) ​ (59.1) ​ 18.2 ​ 6.9 Loss on foreign currency transaction effect 42.9 ​ 13.7 ​ 10.4 ​ 29.2 ​ 3.3 Other adjustments to net income 39.3 ​ (13.0) ​ 43.5 ​ 52.3 ​ (56.5) Operating assets and liabilities (512.7) ​ 238.7 ​ 310.0 ​ (751.4) ​ (71.3) Net cash provided by operating activities $ 4,752.1 ​ $ 4,421.7 ​ $ 3,573.1 ​ $ 330.4 ​ $ 848.6 ​ 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. ​ 2025: Net income was $4,348.2 million, which represented 91.5% of the net operating cash flow. ​ Changes in operating assets and liabilities reduced cash flow by $512.7 million and was driven by the following variances: ● $(761.6) million increase in accounts receivable, principally at our Mexican operations. ● $326.2 million increase in accounts payable and accrued liabilities, mainly reflecting higher accrued income taxes and workers’ participation at our Peruvian and Mexican operations, both attributable to an increase in income before taxes in 2025. ● $22.1 million net decrease in inventories, mainly consumed at our Peruvian operations. ● $ (99.4) million increase in other operating assets and liabilities, net. ​ Net cash used in investing activities: ​ 2025: Net cash used for investing activities in 2025 included $1,325.3 million for capital investments.
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.
In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments. ​ 104 Table of Contents The table below contains information on our capital investments for the three years ended December 31, 2025 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Peruvian projects: ​ ​ ​ ​ ​ ​ ​ ​ ​ Tia Maria project ​ $ 116.6 ​ $ 14.8 ​ $ — Los Chancas project ​ ​ 43.7 ​ ​ — ​ ​ — Relocation of leaching crusher at Toquepala ​ 37.1 ​ 10.0 ​ 1.1 Sheet stripping machine and permanent cathodes refurbishment – Ilo Refinery ​ 12.8 ​ 0.3 ​ 1.9 Modernization of the slab stripping machine at Toquepala ​ ​ 12.2 ​ ​ 1.5 ​ ​ 0.3 New maintenance workshop at the Cuajone concentrator ​ 11.5 ​ 0.9 ​ 0.3 Replacement of cooling pump and piping – Ilo ​ 9.2 ​ 1.2 ​ 0.5 Electric cogeneration – Ilo smelter ​ 7.0 ​ ​ 0.8 ​ ​ 0.8 Tailings disposal—Quebrada Honda dam ​ ​ — ​ ​ 2.0 ​ ​ 8.4 HPGR optimization at Cuajone ​ ​ — ​ ​ 18.2 ​ ​ 54.2 Maintenance workshops at Cuajone ​ ​ — ​ ​ 5.5 ​ ​ 17.2 Quebrada Honda filter plant ​ ​ — ​ ​ 1.3 ​ ​ 16.1 Maintenance workshops at Toquepala concentrator ​ ​ — ​ ​ 2.3 ​ ​ 9.7 Toquepala expansion project ​ ​ (1.0) ​ ​ (2.4) ​ ​ 5.8 Other projects ​ 25.7 ​ ​ 8.8 ​ ​ 10.3 Sub‑total projects ​ 274.8 ​ 65.3 ​ 126.6 Maintenance and replacement ​ 293.7 ​ 216.4 ​ 193.1 Net change in capital expenditures incurred but not yet paid ​ (79.8) ​ (10.4) ​ 3.0 Total Peruvian expenditures ​ 488.7 ​ 271.2 ​ 322.7 Mexican projects: ​ ​ ​ ​ ​ ​ ​ New Buenavista concentrator ​ 67.1 ​ 8.3 ​ 12.3 Buenavista Zinc project ​ ​ 1.5 ​ ​ 47.9 ​ ​ 66.5 Pilares Mine ​ ​ 3.9 ​ ​ 19.2 ​ ​ 33.5 Expansion of mine pit at Buenavista ​ — ​ — ​ 17.3 Lime plant - Sonora ​ ​ 2.1 ​ ​ 6.1 ​ ​ 9.7 MexCobre - Bella Union Mine ​ ​ 0.7 ​ ​ 14.4 ​ ​ 56.4 IMMSA - Mine development ​ ​ 32.5 ​ ​ 29.5 ​ ​ 39.4 Project MexArco ​ ​ 13.3 ​ ​ 7.6 ​ ​ 23.4 San Fernando mineshaft rehabilitation ​ ​ 3.8 ​ ​ 4.4 ​ ​ 8.3 New tailing disposal deposit at Buenavista mine ​ 252.0 ​ 134.7 ​ 65.6 Over elevation of tailings deposit N° 7 at La Caridad mine ​ 7.0 ​ 5.5 ​ 5.8 San Martin mine restoration ​ ​ — ​ ​ 0.7 ​ ​ 0.7 Other projects ​ 151.1 ​ 173.3 ​ 112.1 Sub‑total projects ​ 535.0 ​ 451.6 ​ 451.0 Maintenance and replacement ​ 306.1 ​ 297.7 ​ 235.4 Net change in capital expenditures incurred but not yet paid ​ (4.5) ​ 6.7 ​ (0.5) Total Mexican expenditures ​ 836.6 ​ 756.0 ​ 685.9 Total capital investments ​ $ 1,325.3 ​ $ 1,027.2 ​ $ 1,008.6 ​ 105 Table of Contents In 2026, we plan to invest $1,925.5 million in capital projects.
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.
For a second consecutive year, we scored 100 in the Task Force on Climate-related Financial Disclosures (“TCFD”) category in 2025, which assesses management and disclosure of financial risks and opportunities related to climate change. ​ For a third consecutive year, the investor-led Climate Action 100+ initiative recognized our efforts to develop a roadmap for emissions reductions and rated us in full compliance with the TCFD category. ​ We have participated in the Carbon Disclosure Project (“CDP”) annual Climate Change assessment since 2016 and completed our first Water Security assessment in 2022.
This included $685.9 million of investments at our Mexican operations and $322.7 million at our Peruvian operations.
This included $836.6 million of investments at our Mexican operations and $488.7 million at our Peruvian operations.
With a preventive focus and an eye on minimizing risks, we are making progress in our efforts to implement the Global Industry Standard on Tailings Management of the International Council on Mining and Metals (ICMM) at our main operations.
With a preventive focus and an eye on minimizing risks, we are proactively implementing the International Council on Mining and Metals (“ICMM”) Global Industry Standard on Tailings Management across our main operations.
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.
We maintain policies and procedures that serve as a guide to our employees, and a Code of Business Conduct for suppliers, contractors and relevant business partners, which contain several human rights provisions. ​ We maintain a human rights’ due diligence process to identify, prevent, mitigate, and remediate adverse impacts on community human rights.
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.
For further information, please see “Capital Investment Program” under this Item on page 104. ​ The 2024 investing activities also included net proceeds of short-term investments of $354.0 million. ​ Net cash used in financing activities: ​ 2025: Net cash used in financing activities in 2025 totaled $2,007.2 million and included an issuance by Minera Mexico of $1,000.0 million of fixed-rate senior notes; the repayment of $500.0 million of fixed-rate senior unsecured notes; and cash dividend distributions of $2,485.1 million. ​ 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. ​ ​ 122 Table of Contents Other Liquidity Considerations ​ We expect that we will meet our cash requirements for 2026 and beyond from cash on hand and internally generated funds.
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.
We understand that climate change will influence our strategy in multiple ways, and we aim to align it with global business trends demanding products with lower carbon footprints.
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.
These include, but are not limited to, the following: ​ ● Sales structure: In the last three years, approximately 75.9% of our revenues came from the sale of copper; 10.9% from molybdenum; 5.7% from silver; 3.6% from zinc; and 3.9% from various other products, including gold, sulfuric acid and other materials. ​ ● Copper: In 2025, copper accounted for approximately 74.8% of our sales.
In 2023, the Environmental Management Unit at Buenavista del Cobre received certification from the Wildlife Habitat Council, which recognized our contributions to efforts to prevent the extinction of the Mexican grey wolf. These actions have allowed populations of this critically endangered species to increase its numbers significantly within in their natural habitat in Mexico.
Since 2023, the Buenavista del Cobre Environmental Management Unit has maintained a Wildlife Habitat Council certification, recognizing our contributions to prevent the extinction of the Mexican grey wolf. These initiatives have significantly increased populations of this critically endangered species their natural habitat in Mexico.
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.
Net income attributable to SCC in 2024 was 15.5% above 2023’s net income; mainly reflecting higher sales volumes and improved metal prices for most of our products. ​ Production: The table below contains mine production data of our Company for the three years ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 - 2024 ​ 2024 - 2023 ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Volume ​ ​ ​ % ​ Volume ​ ​ ​ % Copper (in million pounds) 2,108.2 2,147.0 2,008.4 (38.8) (1.8) % 138.6 6.9 % Molybdenum (in million pounds) 68.7 63.9 59.2 4.8 7.4 % 4.8 8.1 % Zinc (in million pounds) 390.2 286.6 144.4 103.5 36.1 % 142.2 98.5 % Silver (in million ounces) 24.2 21.0 18.4 3.2 15.3 % 2.6 14.0 % ​ The table below contains copper production data from each of our mines for the three years ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 - 2024 2024 - 2023 Copper (in million pounds): ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Volume ​ ​ ​ % ​ ​ ​ Volume ​ ​ ​ % Toquepala 547.6 549.6 495.8 (2.0) (0.4) % 53.8 10.8 % Cuajone 358.8 363.5 329.0 (4.6) (1.3) % 34.5 10.5 % La Caridad 265.4 257.9 244.3 7.5 2.9 % 13.6 5.6 % Buenavista 913.8 954.5 918.2 (40.7) (4.3) % 36.3 4.0 % IMMSA 22.5 21.5 21.1 1.0 4.8 % 0.4 1.9 % Total mined copper 2,108.2 2,147.0 2,008.4 (38.8) (1.8) % 138.6 6.9 % ​ 2025 compared to 2024: ​ Copper mine production in 2025 decreased 1.8% to stand at 2,108.2 million pounds.
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.
The increase of $70.5 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2024 ($ in millions) ​ ​ ​ $ 574.9 Plus: ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 32.3 ​ - Workers participation 16.9 ​ ​ ​ - Exchange rate variance 15.1 ​ ​ ​ - Operations contractors 8.1 ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 6.3 ​ ​ ​ - Other net, partially offset by 4.3 ​ ​ ​ - Inventory variance (18.5) ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 24.6 • Increase in depreciation, amortization and depletion expense. ​ ​ 10.6 • Increase in selling, general and administrative expenses. ​ ​ 1.6 • Increase in exploration expense. ​ 1.4 Operating costs and expenses for 2025 ($ in millions) ​ $ 645.4 ​ 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.
Current estimates of indicated copper mineral resources are 98 million tons of oxides with a copper content of 0.45% and 52 million tons of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tons of copper and 7,500 tons of molybdenum annually.
The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes that are expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually.
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 increase of $134.8 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2024 ($ in millions) ​ ​ ​ $ 2,512.1 ​ Plus: ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 164.9 ​ ​ - Inventory variance 117.2 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 48.7 ​ ​ ​ ​ - Exchange rate variance 25.4 ​ ​ ​ ​ - Workers participation 24.7 ​ ​ ​ ​ - Other net, partially offset by 3.4 ​ ​ ​ ​ - Labor expenses (28.7) ​ ​ ​ ​ - Operations contractors (16.4) ​ ​ ​ ​ - Fuel (9.3) ​ ​ ​ • Increase in depreciation, amortization and depletion expense. ​ 6.3 ​ • Increase in selling, general and administrative expenses. ​ ​ 3.0 ​ Less: ​ ​ ​ ​ • Decrease in cost of metals purchased from third parties. ​ ​ (31.5) ​ • Decrease in exploration expenses. ​ ​ (7.9) ​ Operating costs and expenses for 2025 ($ in millions) ​ $ 2,647.0 ​ Mexican Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net sales $ 7,623.0 ​ $ 6,317.0 ​ $ 5,562.3 ​ $ 1,305.9 ​ $ 754.7 Operating costs and expenses (3,347.8) ​ (2,932.9) ​ (2,787.5) ​ (414.9) ​ (145.4) Operating income $ 4,275.2 ​ $ 3,384.1 ​ $ 2,774.8 ​ $ 891.1 ​ $ 609.3 ​ Net sales in 2025 increased by $1,305.9 million compared to 2024.
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. ​ As part of our emission reduction efforts, the Company started receiving renewable energy from the Fenicias wind park, operated by Grupo Mexico Infraestructura , in August 2024.
The reference is provided for informational purposes only and is not intended to create an active link or incorporate the website’s content into this Report on Form 10-K. ​ As part of our emission reduction initiatives, as of August 2024, we began receiving renewable energy from the Fenicias wind park, operated by Grupo Mexico Infraestructura .
All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions. ​ El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%.
Subsequently, the Company intends to use this information to estimate mineral reserves and develop the corresponding mine plan. ​ El Arco - Baja California : This is a world-class copper deposit located in the central part of the Baja California peninsula with sulfide ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%.
This was partially offset by a decline in sales volumes of silver (-3.7%), and zinc (-2.5%). ​ 118 Table of Contents Operating costs and expenses: ​ 2024-2023 : Operating costs and expenses were $574.9 million in 2024 compared to $635.0 million in the same period of 2023.
However, this was slightly offset by a decline in the sales volume of copper (-2.0%). ​ ​ 119 Table of Contents Operating costs and expenses: ​ 2025-2024 : Operating costs and expenses were $3,347.8 million in 2025 compared to $2,932.9 million in the same period of 2024.
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).
As set out in the Company’s Environmental Policy, we have developed biodiversity management plans aligned with the International Council on Mining and Metals Good Practice Guidance for Mining and Biodiversity.
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 34.0% reduction was primarily supported by higher sales volumes of molybdenum, silver and zinc. ​ 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.
Mine life is estimated at 13 years. ​ The Company has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate.
In 2027, when we start operations, the project will generate 764 direct jobs and 5,900 indirect jobs. ​ Projects in Mexico: ​ SCC has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate.
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.
When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years. ​ We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032.
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.
Work environment surveys, complaint hotlines, and the due diligence process support compliance with our General Human Rights Policy.
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.
For instance, during the period from January 2016 through December 2025, the LME copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of $5.68 per pound in 2025.
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 base community engagement on transparency and trust, and aim to build lasting relationships. ​ Our Community Development model has three key components: 1) Responsible coexistence, which promotes positive and healthy relationships with neighboring communities through open ongoing communication channels for addressing complaints and concerns; 2) Economic development: which focuses on sharing economic value generated by our 109 Table of Contents operations with the community, and 3) Human development, which enhances the skills of community members to empower them as the primary drivers of local progress. ​ Our primary tool for fostering responsible coexistence is the Support and Attention Center, a grievance mechanism for external stakeholders active at 100% of our sites and resolving complaints in an average of nine days. ​ In relation to economic development, we trained 1,219 people in mining communities in 2025, including 829 people in employment, 390 people in regional vocational and productive skills and 368 local businesses to support the development of small and medium mining suppliers.
These projects are Angangueo, Chalchihuites and the Empalme Smelter, which could bolster our position as a fully integrated copper producer. ​ Projects in Peru : ​ Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tons of SX- EW copper cathodes per year. ​ Tia Maria will generate significant revenues for the Arequipa region from day one of its operations.
We believe the projects’ construction and subsequent operating phases will generate new poles of development; create significant job opportunities; and drive growth in tax revenues at both national and regional levels. ​ Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tonnes of SX- EW copper cathodes per year. ​ Tia Maria will generate significant revenues for the Arequipa region from day one of its operations.
(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.
The increase of $414.9 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for 2024 ($ in millions) ​ ​ ​ $ 2,932.9 Plus: ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 216.1 ​ - Workers participation 128.5 ​ ​ ​ - Energy costs 47.0 ​ ​ ​ - Sales expenses 36.0 ​ ​ ​ - Operations contractors 23.6 ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 20.0 ​ ​ ​ - Other net, partially offset by 11.5 ​ ​ ​ - Exchange rate variance (50.4) ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 205.3 • Increase in selling, general and administrative expenses. ​ ​ 2.6 Less: ​ ​ ​ • Decrease in depreciation, amortization and depletion expense. ​ ​ ​ (6.1) • Decrease in exploration expense. ​ ​ (3.0) Operating costs and expenses for 2025 ($ in millions) ​ $ 3,347.8 ​ Mexican Underground Operations (IMMSA): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variance ​ ​ ​ 2025 ​ ​ ​ ​ 2024 ​ ​ ​ ​ 2023 ​ ​ ​ 2025 - 2024 ​ ​ ​ 2024 - 2023 Net sales ​ $ 807.8 ​ $ 704.1 ​ $ 630.8 ​ $ 103.8 ​ $ 73.3 Operating costs and expenses ​ (645.4) ​ (574.9) ​ (635.0) ​ (70.5) ​ 60.1 Operating income ​ $ 162.4 ​ $ 129.2 ​ $ (4.2) ​ $ 33.3 ​ $ 133.4 ​ Net sales in 2025 increased by $103.8 million compared to 2024.
Metal prices historically have been subject to wide fluctuations and are affected by numerous factors beyond our control, as described further in Item 1A Risk Factors .
The Metals Week Molybdenum Dealer Oxide weekly average price, in turn, ranged from a low of $5.10 per pound in 2016 to a high of $38.50 per pound in 2023. Metal prices historically have been subject to wide fluctuations and are affected by numerous factors beyond our control, as described further in Item 1A Risk Factors .
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%.
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: The comprehensive review of the geological information used to estimate the project’s mineral resources has been duly audited in accordance with the SEC’s mining disclosure standards under Regulation S-K 1300.
I n the sustainability evaluation conducted by S&P Global through the Corporate Sustainability Assessment (“CSA”) in which we have participated in this assessment since 2020, we scored 90 out of 100 for climate governance once again in 2024, which ratifies the progress we have made since 2023.
In the S&P Global through the Corporate Sustainability Assessment (“CSA”), in which we have participated since 2020, we earned a climate governance score of 100 out of 100 in 2025, a 10 point increase from 2024, confirming the progress we have made in recent years.
Once this wind park supplies its full capacity to our mining operations, SCC will reduce its CO 2 emissions approximately 250,000 tonnes per year, which is equivalent to 7% of our carbon footprint. Additionally, in the first quarter of 2024, we received clean energy certificates from one of our electricity suppliers in Peru.
As of December 2025, the wind park is fully operational and we estimate that it is supplying its full capacity to our mining operations, and consequently SCC will avoid CO 2 emissions of approximately 250,000 tonnes per year, which is equivalent to 7% of our carbon footprint.
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.
By working together, we collaborate on shared social and economic development goals and support the United Nations’ Sustainable Development Goals.
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.
This increase was supported by full-capacity operations at this facility, which produced 257.4 million pounds in 2025. ​ 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.
At current copper prices, we expect to export $17.5 billion and contribute $3.4 billion in taxes and royalties during the first 20 years of operation.
At current copper prices, we expect to export $20.2 billion and contribute $4.6 billion in taxes and royalties during the first 20 years of operation. The project budget has been set at $1,805 million. ​ Project update: As of December 31, 2025, the Company had committed $790 million to different project activities.
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.
This excellent rating recognized the publication of our Climate Policy and the Board-level Sustainability Committee’s ongoing oversight of our climate change strategy, which evaluates management of the risks and opportunities associated with climate change.
This improvement was primarily due to the unit cost effect of a 6.3% increase in production and a reduction of 2.2 cents in treatment and refining charges. ​ ​ 101 Table of Contents Operating cash cost per pound net of by-product revenues fell 13.9%, from $1.03 in 2023 to $0.89 in 2024.
(2) Net of metallurgical losses. ​ 2025 compared to 2024: ​ For the year 2025, the operating cash cost per pound before by-product revenues increased from $2.13 to $2.17, mainly due to the unit cost effect of a slight decrease in copper production (-1.1%) and higher production costs (+3.2%); this was partially offset by lower treatment and refining charges due to market conditions.
In 2024, our 2023 results for both questionnaires were “B” (third best score on a scale of eight levels), which is one level above the average score in the mining sector and the overall score for the North American region. ​ In 2025, we will develop climate change mitigation and adaptation plans at the site level; evaluate the role that nature-based solutions could play in reducing our operational emissions; and continue to identify the financial impacts that our company will face in the future with regard to climate risks and opportunities. ​ HUMAN RIGHTS ​ At SCC, we are committed to enforcing the United Nations Guiding Principles on Business and Human Rights.
For the 2024 questionnaires, we received a “B” rating for both, the third highest score of eight levels, which is one level above the mining sector and the North American regional averages. ​ In 2026, we will explore implementing an internal carbon price and update our 2021 scenario analysis to identify emerging risks and assess future financial impacts from climate-related risks and opportunities. ​ HUMAN RIGHTS ​ We are committed to enforcing the United Nations Guiding Principles on Business and Human Rights.
To the fullest extent possible, we intend to fill the 3,500 jobs estimated to be required during Tia Maria’s construction phase prioritizing workers from the Islay province. When we start operations in 2027, the project will generate 764 direct jobs and 4,800 indirect jobs. ​ This year, we expect construction to begin.
To the fullest extent possible, we intend to fill the 5,000 jobs estimated to be required during Tia Maria´s construction phase prioritizing workers from the Islay province.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−4 removed4 unchanged
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.
Biggest changeRecent inflation and exchange rate variances for the three years ended December 31, 2025 are provided in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ Peru: ​ ​ ​ ​ Peruvian inflation rate 1.5 % 2.0 % 3.2 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 3.770 3.713 3.820 ​ Closing exchange rate 3.368 3.770 3.713 ​ Appreciation/(devaluation) 10.7 % (1.5) % 2.8 % ​ ​ ​ ​ ​ ​ ​ ​ Mexico: ​ ​ ​ ​ Mexican inflation rate 3.7 % 4.2 % 4.7 % ​ ​ ​ ​ ​ ​ ​ ​ Initial exchange rate 20.268 16.894 19.362 ​ Closing exchange rate 17.967 20.268 16.894 ​ Appreciation/(devaluation) 11.4 % (20.0) % 12.7 % ​ Change in monetary position: ​ Assuming an exchange rate variance of 10% at December 31, 2025, 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.
See Note 19 to the consolidated financial statements for further information about these provisional sales. ​ Foreign currency exchange rate risk: Our functional currency is the U.S. dollar. Portions of our operating costs are denominated in Peruvian soles and Mexican pesos.
See Note 18 to the consolidated financial statements for further information about these provisional sales. ​ Foreign currency exchange rate risk: Our functional currency is the U.S. dollar. Portions of our operating costs are denominated in Peruvian soles and Mexican pesos.
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.
Mexican peso ​ $ (25.6) ​ The net monetary position is net of those assets and liabilities that are sol or peso denominated as of December 31, 2025. ​ 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. 126 Table of Contents ​
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.
Peruvian sol ​ $ 34.8 Devaluation of 10% in U.S. dollar vs. Peruvian sol ​ $ (42.5) Appreciation of 10% in U.S. dollar vs. Mexican peso ​ $ 20.9 Devaluation of 10% in U.S. dollar vs.
Removed
We do not enter into derivative contracts unless we anticipate that the possibility exists that future activity will expose our future cash flows to deterioration.
Removed
Derivative contracts for commodities are entered into to manage the price risk associated with forecasted purchases of the commodities that we use in our manufacturing process. ​ Cash Flow Hedges of Natural Gas ​ In the third quarter of 2021, the Company acquired two derivative instruments that became effective in November 2021 and expired in March 2022.
Removed
The Company’s objective in using natural gas derivatives was to protect the stability of natural gas costs and manage exposure to natural gas price increases. The Company assessed these derivative instruments as Cash Flow Hedges. As such, the effective portions of said hedges were recorded as earnings in the same period or periods in which the hedged transaction affected earnings.
Removed
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

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