Southern Copper Corporation · NYSE:SCCO
Southern Copper — Investor Presentation (September 2022)
21 slides from Southern Copper's investor presentation, September 2022
Slide 1: Company Presentation September 2022
September 2022 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 32% of EBITDA (*) 68% of EBITDA (*) (*) As of June 30, 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 C O M P A N Y • Expecting a balanced market for 2022. Inventories still at low level. • Demand: Slowdown in demand from China, Europe and the US may generate a sur
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 (at GMex level)
ESG at the Core of our Strategy P R E S E N T A T I O N (at GMex level) C O M P A N Y ▪ Additional resources for ESG tasks, including the appointment of a ESG ACTIONS Corporate Sustainability Director to oversee fulfillment of corporate ESG action plans and targets. ▪ Internal and external Gap analy
Slide 9: ESG at the Core of our Strategy
ESG at the Core P R E S E N T A T I O N of our Strategy Organization Social The Board of Directors has The Metallurgical Complex in C O M P A N Y approved the formation of a new Sonora, was recognized in the Sustainability Committee chaired ranking of the 10 Best Places to by an independent director
Slide 10: Overview of Operations
Overview of Company Overview Copper Reserves Operations Geographic Footprint & Product Diversification Low Cost Operations Copper Production Cash Cost 10
Slide 11: Company Overview
Company Overview P R E S E N T A T I O N México Buenavista 42.4 mmt COPPER El Pilar Santa Eulalia C O M P A N Y RESERVES ¹ La Caridad El Arco Santa Barbara 87.2 mmt COPPER RESOURCES 2 San Martin Charcas 2021: San Luis Potosi CASH COST $0.67/ lb Taxco 1H2022: $0.82/ lb Perú 2022 ESTIMATES Copper prod
Slide 12: Largest Copper Reserves of any Listed Company
Largest Copper Reserves of any Listed P R E S E N T A T I O N Company COPPER RESERVES AS REPORTED SCC HIGHLIGHTS C O M P A N Y 60.0 • #1 mine life among copper producers 50.0 • #5 world’s largest producer of mined copper 42.4 Copper Reserves (Mt) 40.4 40.0 • Highly diversified geographical presence
Slide 13: Geographic Footprint & Product Diversification
Geographic Footprint & P R E S E N T A T I O N Product Diversification 1H2022 REVENUE BY PRODUCT 1H2022 REVENUE BY MARKET C O M P A N Y 13
Slide 14: Low-Cost Operations
Low-Cost Operations P R E S E N T A T I O N CASH COST PER POUND OF COPPER PRODUCED LOW-COST DRIVERS NET OF BY-PRODUCTS • Fully integrated low-cost operations. C O M P A N Y • World class assets. • Significant SX-EW production. • Strong by-product credits. • Management focus on cost efficiency and gr
Slide 15: Copper Mine Composite Costs Curve
Copper Mine Composite Costs Curve P R E S E N T A T I O N 2022 COPPER MINE, COMPOSITE, C1 + SUST CAPEX GROUPED BY COMPANY AND RANKED BY C1 + SUST CAPEX C O M P A N Y 400 C1 + Sust Capex 300 Asarco First Quantum Anglo American Minerals Codelco Antofagasta plc plc C1+ Susts Cash Cost (c/lb Cu) Cerro V
Slide 16: Financial Overview
Financial Overview Financial Highlights Solid Financial Performance Investment Program SCC’s Major Strengths 16
Slide 17: Financial Highlights
Financial Highlights P R E S E N T A T I O N (US$ MM) 2019 2020 2021 2022E Copper Price (LME) US$ per pound 2.72 2.80 4.24 3.96 Income Statement: Net Revenues $7,286 $7,985 $10,934 $9,799 C O M P A N Y EBITDA 3,527 3,869 6,853 5,499 EBITDA Margin 48% 48% 63% 56% U.S. Income Tax Reform Adjustment Net
Slide 18: Solid financial performance
Solid financial P R E S E N T A T I O N performance 2021 Total Debt / EBITDA TOP TIER MARGINS AND CONSERVATIVE C O M P A N Y LEVERAGE FOR INCREASED FINANCIAL FLEXIBILITY Rio Tinto 0.40x BHP Billiton 0.60x 2021 EBITDA Margin Anglo American 0.70x Antofagasta 0.80x Antofagasta 65% Freeport 0.90x SCC 1.
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 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 2025 2026 2027 2028 20
Slide 20: Investment Program to Significantly Increase Production
Investment Program to Significantly Increase P R E S E N T A T I O N Production 2021-2030 CAPEX PROGRAM OVERVIEW 2021-2030 COPPER PRODUCTION FORECAST C O M P A N Y (‘000 MT CU) 20
Slide 21: 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 1.8M Tons by 2029. ▪ Capacity to deliver pr
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