Southern Copper Corporation · NYSE:SCCO
Southern Copper — Investor Presentation (February 2022)
21 slides from Southern Copper's investor presentation, February 2022
Slide 1: Southern Copper Corporation Company Presentation
SOUTHERN COPPER CORPORATION Company Presentation February 2022 1
Slide 2: Index
Index Introduction 03 Overview of Operations 10 Financial Overview 16 2
Slide 3: Introduction
iipe NexIEG INTRODUCTION MINERIA SouthernCopper
Slide 4: Safe Harbor Statement
Safe Harbor Statement 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 the securities laws. These forward-looking estimates ar
Slide 5: Corporate Structure
Corporate Structure 100.0% (*) AMERICAS MINING CORPORATION 88.9% (*) Public Float 11.1% (*) 99.29 % 99.96 % Southern Perú Minera México 38% of EBITDA (*) 62% of EBITDA (*) (*) As of December 31, 2021 5
Slide 6: Copper – The Best Fundamental Story in Commodities
Copper – The Best Fundamental Story in Commodities Copper Market Solid Fundamentals Copper Consumption by Region • We expect a market balance for this year. Refined copper Other demand will increase 3% concentrated in the US and Europe. 11% Japan Economic slowdown in China, with growth estimated at
Slide 7: Southern Copper Strengths
Southern Copper Strengths ⇒ Highest copper reserves of the industry ⇒ Excellent organic growth projects ⇒ Low cost, fully integrated operations ⇒ Experienced management team ⇒ Strong financial performance / investment grade since 2005 ⇒ Outstanding dividend history ⇒ Good long-term copper & by-produ
Slide 8: ESG at the Core of our Strategy (at GMex level)
ESG at the Core of our Strategy (at GMex level) ⇒ Additional resources for ESG tasks, including the appointment of a Corporate Sustainability Director to oversee fulfillment of corporate ESG action plans and targets. ⇒ Internal and external Gap analysis, with specialized agencies. ⇒ Action Plan to c
Slide 9: ESG at the Core of our Strategy
ESG at the Core of our Strategy ⇒ Corporate Sustainability Assessment of S&P Global: ▪ 2021 rating increased by 22% with respect to 2020 - Continuous upward trend. ▪ Included in Dow Jones Sustainability Index for third consecutive year 2020 ▪ 79% above the average registered by Mining and Metal Indu
Slide 10: Overview of Operations
ona NiexiGo OVERVIEW OF OPERATIONS MINERIA SouthernCopper
Slide 11: Company Overview
Company Overview Copper Reserves 1: 67.7 mmt México 2021 Cash Cost $ 0.67/lb. Buenavista El Pilar Santa Eulalia La Caridad 2022 Estimates (@ $4.25 x Lb of Cu): Santa Barbara El Arco Copper Production: 922 kt San Martin Charcas Sales: $10.4 B San Luis Potosi EBITDA: $ 6.0 B Taxco 57% of Sales Perú #1
Slide 12: World's Largest Copper Reserves
World’s Largest Copper Reserves Copper Reserves as Reported SCC Highlights 80 ▪ #1 mine life among copper producers 70 67.7 ▪ #5 world’s largest producer of mined copper 60 ▪ Highly diversified geographical presence Copper Reserves (Mt) 51.3 ▪ Four large-scale open-pit mines 50 45.7 41.1 ▪ A strong
Slide 13: Geographic Footprint & Product Diversification
Geographic Footprint & Product Diversification 2021 Revenue by Product 2021 Revenue by Market Silver Other Asia 37% Zinc 3% 3% 3% Peru 5% Molybdenum 10% Europe 7% Other American 9% Copper 81% United States 13% Mexico 29% 13
Slide 14: Low Cost Operations
Low Cost Operations Cash Cost per Pound of Copper Produced Low Cost Drivers Net of By-Products 1.1 1.11 ▪ Fully integrated low cost operations 0.95 ▪ World class assets 0.92 0.87 0.88 0.9 ▪ Significant SX-EW production (US$/lb) 0.69 ▪ Strong by-product credits 0.67 0.7 ▪ Management focus on cost eff
Slide 15: 2019 Copper Production Cash Cost by Company
2019 Copper Production Cash Cost by Company Source Wood Mackenzie Copper Mine Cost Model, WM 2020 15 15
Slide 16: Financial Overview
ona NiexiGo FINANCIAL OVERVIEW MINERIA SouthernCopper
Slide 17: SCC Financial Summary
SCC Financial Summary (US$ MM) 2019 2020 2021 2022E C o p p e r P rice (LME) US$ p e r p o und 2.72 2.80 4.24 4.25 Inco me State me nt: Net Revenues $7,286 $7,985 $10,934 $10,386 EBIT DA 3,527 3,869 6,853 5,956 EBITDA Margin 48% 48% 63% 57% U.S. Income Tax Reform Adjustment Net Income 1,486 1,570 3,
Slide 18: Solid Financial Performance
Solid Financial Performance Top Tier Margins and Conservative Leverage for Increased Financial Flexibility 2021 EBITDA Margin (%) 2021 Total Debt / EBITDA (x) Amortization Schedule Antofagasta 65% Rio Tinto 0.4x 2022 $300 2025 $500 SCC 63% BHP Billiton 0.6x 2028 $51 Anglo BHP 63% 0.7x American 2035
Slide 19: Investment Program to Significantly Increase Production
Investment Program to Significantly Increase Production Board approved Other projects 2017-2020 2022-2025 MEXICO PERU Buenavista: El Arco Conc. & SX/EW 2028 - Los Chancas Conc. & SX/EW - $3.1B program to increase capacity Pilares 4Q22 - $159M 35K Tons Cu 2027 - $2.6B - 130K Tons Cu, $2.9B 190K Tons
Slide 20: Competitive Cash Costs and Increased Production Levels
Best-in-class Mining Projects Reaching Completion Providing Competitive Cash Costs and Increased Production Levels Project Capital Intensity at SCC Projects Initial Capex % of Total Incremental Production Capital Intensity Type (US$ MM) Capex Cu Eq. (kt/y) (US$/tpy Cu Eq.) Brownfield Projects Toquep
Slide 21: SCC's Major Strengths
SCC’s Major Strengths SCC is the Premier Copper Play ▪ World class assets in investment grade countries. ▪ #1 in reserves of any company with various organic growth prospects. ▪ Copper production heading towards 1.8M Tons by 2029. ▪ Capacity to deliver projects through flexible capital structure and
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