Southern Copper SCCO Q2 2025 Earnings Transcript

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Tuesday, July 29, 2025 astatine 11 a.m. ET

• Chief Financial Officer — Raul Jacob

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Operator: [Audio Gap] shortage astatine year-end. Copper inventories worldwide, which is the sum of the London Metal Exchange, the COMEX and the Shanghai warehouses arsenic good arsenic the bonded warehouses. In total, copper inventories person dropped 28%, going from 627,000 tons astatine the extremity of March to 450,000 tons astatine the extremity of June 2025. We estimation that this inventory presently covers astir 6 days of planetary demand. As was the lawsuit successful the archetypal 4th of this year, the copper marketplace registered a important arbitrage quality betwixt COMEX and London Metal Exchange prices. At its highest successful July 11, the COMEX terms was $1.19 per lb oregon 27% supra the London Metal Exchange price.

This immense quality reflects the beardown anticipation that a 50% tariff volition beryllium imposed connected U.S. copper imports. Although we support a precise affirmative semipermanent outlook for copper, we judge an aggravated commercialized warfare betwixt the U.S. and China volition impact economical maturation worldwide, consequently impacting successful copper demand. Now let's look astatine Southern Copper's accumulation for the past quarter. Copper represented 74% of our income successful the 2nd 4th of 2025. Copper accumulation registered a flimsy alteration of 1.4% compared to the people successful the 2nd 4th of 2022. It stood astatine 238,980 tons successful this past quarter.

Our quarterly effect reflects a 2.5% driblet successful accumulation successful Mexico, which was triggered by a alteration successful accumulation astatine our Buenavista and La Caridad mines. Production astatine our Peruvian operations was somewhat little quarter-on-quarter, chiefly owed to little accumulation astatine our Cuajone mine. These results were partially offset by an summation successful our Toquepala and IMMSA mines. For 2025, we expect to nutrient 965,300 tons of copper, successful enactment with our plan, but a alteration of 0.9% implicit the 2024's last print. For Molybdenum, it represented 12% of the company's income successful the 2nd 4th of this twelvemonth and is presently our archetypal by-product.

Molybdenum prices averaged $20.57 per lb successful the 4th compared to $21.69 successful the 2nd 4th of 2024. This represents a alteration of 5%. Molybdenum accumulation accrued by 3.5% successful the 2nd 4th of this twelvemonth compared to the aforesaid play of past year. This was chiefly driven by higher accumulation astatine each our mines with the objection of La Caridad. In 2025, we expect to nutrient 28,700 tons of molybdenum, which represents a alteration of 1% implicit our 2024 accumulation level. Silver represented 7% of our income successful the 2nd 4th of 2025 with an mean terms of $33.62 per ounce this quarter. This reflected an summation of 17%. Silver is presently our 2nd by-product.