Southern Copper Corporation · NYSE:SCCO
Southern Copper — Investor Presentation (March 2023)
20 slides from Southern Copper's investor presentation, March 2023
Slide 1: Company Presentation March 2023
March 2023 COMPANY PRESENTATION
Slide 2: Safe Harbor Statement
Safe Harbor Statement P R E S E N T A T I O N C O M P A N Y The material in this presentation contains certain statements that are neither reported financial results nor other historical information. These estimates are forward-looking statements within the meaning of the safe- harbor provisions of
Slide 3: Contents
Contents P R E S E N T A T I O N 01 C O M P A N Y Introduction 02 p. 04 Overview of Operations p. 10 03 Financial Overview p. 16 3
Slide 4: Introduction
Introduction Corporate Structure Copper Fundamentals SCC’s Strengths ESG 4
Slide 5: Corporate Structure
Corporate P R E S E N T A T I O N Structure C O M P A N Y 100.0% (*) AMERICAS MINING CORPORATION 88.9% (*) Public Float 11.1% (*) 99.29 % 99.96 % Southern Perú Minera México 34% of EBITDA (*) 66% of EBITDA (*) (*) As of December 31, 2022 5
Slide 6: Copper – The best Fundamental Story in Commodities
Copper – The best Fundamental Story in P R E S E N T A T I O N Commodities COPPER MARKET SOLID FUNDAMENTALS COPPER CONSUMPTION BY REGION • Expecting a balanced market for 2023 or a small surplus. C O M P A N Y Inventories at very low level (about 3.5 days of consumption). • Supply: Risk in productio
Slide 7: Southern Copper Strengths
Southern Copper P R E S E N T A T I O N Strengths • Highest copper reserves of any listed company. C O M P A N Y • Excellent organic growth projects. • Low cost, fully integrated operations. • Experienced management team. • Strong financial performance / investment grade since 2005. • Outstanding di
Slide 8: ESG at the Core of our Strategy
ESG at the Core of our Strategy P R E S E N T A T I O N OCCUPATIONAL SAFETY AND VOLUNTEER DAY C O M P A N Y ✓ Rescue squads of the Charcas and Santa Barbara units were awarded first place by Mexican institutions. ✓ Volunteer day attended by 8,000 volunteers in 13 states of Mexico and 5 regions of Pe
Slide 9: Overview of Operations
Overview of Company Overview Copper Reserves Operations Geographic Footprint & Product Diversification Low Cost Operations Copper Production Cash Cost 9
Slide 10: Company Overview
Company Overview P R E S E N T A T I O N México Buenavista 44.8 mmt COPPER El Pilar Santa Eulalia C O M P A N Y RESERVES ¹ La Caridad El Arco Santa Barbara 71.9 mmt COPPER RESOURCES 2 San Martin Charcas 2021: San Luis Potosi CASH COST $0.67/ lb Taxco 2022: $0.78/ lb Perú 2023 ESTIMATES Copper produc
Slide 11: Largest Copper Reserves of any Listed Company
Largest Copper Reserves of any Listed P R E S E N T A T I O N Company COPPER RESERVES AS REPORTED SCC HIGHLIGHTS C O M P A N Y 60.0 • #1 mine life among copper producers 50.0 • #5 world’s largest producer of mined copper 42.4 Copper Reserves (Mt) 40.4 40.0 • Highly diversified geographical presence
Slide 12: Geographic Footprint & Product Diversification
Geographic Footprint & P R E S E N T A T I O N Product Diversification 2022 REVENUE BY PRODUCT 2022 REVENUE BY MARKET C O M P A N Y OTHER SILVER PERU 6% ZINC 3% EUROPE 6% 4% 5% OTHER MOLYBDENUM AMERICA MEXICO 10% 10% 32% UNITED STATES 17% COPPER 77% ASIA 30% 12
Slide 13: Low-Cost Operations
Low-Cost Operations P R E S E N T A T I O N CASH COST PER POUND OF COPPER PRODUCED LOW-COST DRIVERS NET OF BY-PRODUCTS • Fully integrated low-cost operations. C O M P A N Y 1.1 • World class assets. 0.95 • Significant SX-EW production. 0.92 0.88 0.87 • Strong by-product credits. (US$/lb) 0.9 0.78 •
Slide 14: Copper Mine Composite Costs Curve
Copper Mine Composite Costs Curve P R E S E N T A T I O N 2022 COPPER MINE, COMPOSITE, C1 + SUST CAPEX GROUPED BY COMPANY AND RANKED BY C1 + SUST CAPEX C O M P A N Y 500 C1 + Sust Capex Asarco 400 Antofagasta Anglo American plc plc C1+ Sust Capex (c/lb) 300 First Quantum KGHM Polskat Minerals BHP Gr
Slide 15: Financial Overview
Financial Overview Financial Highlights Solid Financial Performance Investment Program SCC’s Major Strengths 15
Slide 16: Financial Highlights
Financial Highlights P R E S E N T A T I O N (US$ MM) 2020 2021 2022 2023E Copper Price (LME) US$ per pound 2.80 4.24 4.00 4.00 Income Statement: Net Revenues $7,985 $10,934 $10,048 $10,657 C O M P A N Y EBITDA 3,869 6,853 5,365 5,752 EBITDA Margin 48% 63% 53% 54% U.S. Income Tax Reform Adjustment N
Slide 17: Solid financial performance
Solid financial P R E S E N T A T I O N performance 2022 Total Debt / EBITDA TOP TIER MARGINS AND CONSERVATIVE C O M P A N Y LEVERAGE FOR INCREASED FINANCIAL FLEXIBILITY Rio Tinto 0.50x 2022 EBITDA Margin BHP Billiton 0.60x Antofagasta 0.90x Anglo American 1.20x 63% Freeport 1.20x SCC 1.20x 62% Firs
Slide 18: Investment Program to Significantly Increase Production
Investment Program to Significantly Increase P R E S E N T A T I O N Production C O M P A N Y TIA MARIA ILO SMELTER LOS CHANCAS MICHIQUILLAY PERU ▪ 120k tons Cu ▪ US $1.3 B ▪ 130k tons Cu ▪ 225k tons Cu ▪ US $1.4 B ▪ 7.5k tons Mo ▪ US $2.5 B ▪ US $2.6 B PROJECTS 2022 2023 2024 2026 2029 2030 2032 PI
Slide 19: Investment Program to Significantly Increase Production
Investment Program to Significantly Increase P R E S E N T A T I O N Production 2022-2031 CAPEX PROGRAM OVERVIEW 2022-2031 COPPER PRODUCTION FORECAST C O M P A N Y (‘000 MT CU) 3,000 2,806 Average 2,600 $2.0B 2,493 2,461 2,356 1,600 1,508 2,200 2,052 +69% 1,380 2,013 1,400 1,801 1,132 1,800 1,200 1,
Slide 20: SCC's Major Strengths
SCC’s Major P R E S E N T A T I O N Strengths SCC IS THE PREMIER COPPER PLAY ▪ World class assets in investment grade countries. C O M P A N Y ▪ #1 in reserves of any listed company with various organic growth prospects. • Copper production heading towards 1.6M Tons by 2032. ▪ Capacity to deliver pr