0

Southern Copper CorporationDecember, 2015

1

I. Introduction

2

Management Presenter

Presenter

Raul Jacob

Title

Vice President, Finance & CFO

3

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 Mexican securities laws. These forward-looking estimates are

subject to risk and uncertainties that could cause actual results to differ materially from the

expressed in the forward-looking statements. Many of these risks and uncertainties relate to

factors that are beyond Grupo Mexico’s ability to control or estimate precisely, such as future

market conditions, commodity prices, the behavior of other market participants and the actions of

governmental regulators. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of the date of this presentation. Grupo Mexico does not

undertake any obligation to publicly release any revision to these forward-looking estimates to

reflect events or circumstances after the date of this presentation.

Safe Harbor Statement

4

Corporate Structure

100.0% (*)

99.29 % 99.96 %

12.5% (*)

Public Float

SCC Peru Branch Minera Mexico

(*) As of September 30, 2015

AMERICASMINING

CORPORATION

87.5% (*)

Transport12%

Electrical Network

19%

Construction30%

Industrial Machinery

10%

Consumer Products

29%

China44%

Asia Ex China12%

Europe17%

USA9%

Japan5%

Other13%

LME Copper Cash Price vs. Inventories Copper Consumption by End-use

Solid Fundamentals Copper Consumption by Region

Wood Mackenzie 2014

Wood Mackenzie Dec 2014

Copper – The Best Fundamental Story in Commodities

5

► Copper has the best fundamentals in the basic materials space:

― 2015 demand driven by the US strong recovery and the EU

export oriented industries.

― China: Expect 3% demand growth. Automotive and state

electrical infrastructure demand partially offset by weak

housing market.

― Additional production expected 2015-2016, will be offset

by productions costs, restocking in Europe, ore grade decay

and scrap scarcity.

― Current copper prices below estimated (WM) incentive price

for greenfield production of approximately $3.50.

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

3-J

an-1

1

6-M

ay-1

1

9-S

ep-1

1

16

-Jan

-12

21

-May-1

2

21

-Sep

-12

25

-Jan

-13

3-J

un-1

3

4-O

ct-

13

10

-Fe

b-1

4

16

-Jun

-14

17

-Oct-

14

23

-Fe

b-1

5

29

-Jun

-15

30

-Oct-

15

LME COMEX shanghai LME Cash

6

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 & molybdenum fundamentals

7

II. Overview of Operations

8

Peru

Ilo

Mexico

Copper open pit mines

Underground mines

Smelters and Refineries

Key

Company Overview

Copper Reserves 1: 69.9 mmt

2014 Cash Cost: $ 1.05/lb.

9M 2015 Cash Cost $ 1.06/lb.

2015 Estimates (@ $2.50 x Lb of Cu):

Copper Production: 747 kt (+70 kt)

Sales: $ 5.1 B

EBITDA: $ 2.1 B

41% of Sales

#1 copper company by reserves 2

#5 copper producer 3

#10 copper smelter 3

#8 refinery 3

Source: Company FilingsNotes: 1 Copper contained in reserves based on US$2.90 per pound of copper as of December 31, 20142 Based on available companies reports3 Wood Mackenzie Limited 2014

Santa Barbara

Charcas

Taxco

San Luis Potosi

Santa Eulalia

San Martin

Cuajone

La Caridad

Buenavista

ToquepalaTia Maria

9

Copper Reserves as Reported SCC Highlights

►#1 mine life among copper producers

►#5 world’s largest producer of mined copper

►Highly diversified geographical presence

►Four large-scale open-pit mines

Mine Life

World’s Largest Copper Reserves

105

59

34 34

2521 21 18

0

20

40

60

80

100

120

SCC SCC afterexpansion

AngloAmerican

Codelco Freeport BHPBilliton

Rio Tinto Xstrata

69.9

56.7

36.632.6 31.8

27.0

20.7

13.0 10.7

0

10

20

30

40

50

60

70

80

SC

C

Co

de

lco

Fre

ep

ort

BH

P B

illito

n

An

glo

Am

erica

n

Gle

nco

reX

str

ata

Rio

Tin

to

An

tofa

ga

sta

VA

LE

Co

pp

er

Re

serv

es (

Mt)

Source 10K Annual Rep. 10K 20F Annual Rep. Reserve Rep. Annual Rep. 20F 20F

Period Dec.31, 2014 Dec.31, 2014 Dec.31, 2014 Jun. 30, 2014 Dec.31, 2014 Dec. 31, 2014 Dec. 31, 2014 Dec. 31, 2014 Dec. 31, 2014

Cu Price $2.90 N/A $2.00 3.65 N/A N/A N/A $3.10 $3.35

Geographic Footprint & Product Diversification

9M 2015 Revenue by Product 9M 2015 Revenue by Market

10

Copper79%

Silver4%

Molybdenum5%

Zinc4%

Acid3%

Other5%

(76 pp refined or

further processed)

Mexico 35%

Europe 11%

United States15%

Asia 22%

Brasil 6%

Chile 2%

Peru 7%

Other 2%

Operating Materials

20%

Fuel15%

Power16%

Labor14%

Maintenance18%

Other17%

11

Low Cost Operations

Cash Cost per Pound of Copper Produced

Net of By-Products

Cost Structure (1)Operating Cash Cost per Pound of Copper

Produced

Low Cost Drivers

Fully integrated low cost operations

World class assets

Significant SX-EW production

Strong by-product credits

Management focus on cost efficiency

(1) 9M 2015

0.71

1.00 1.05

0.98

1.121.06

0.0

0.5

1.0

1.5

2012 2013 2014 1Q15 2Q15 3Q15

(US

$/lb

)

1.751.92 1.88

1.66 1.67 1.64

0.50

1.00

1.50

2.00

2.50

2012 2013 2014 1Q15 2Q15 3Q15

(US

$/lb)

Source: Wood Mackenzie (Metals Costs Benchmarking 2014 Q4), SCCO cash cost per SCCO filings(1) C1 cost estimates from Wood Mackenzie (Metals Costs Benchmarking Q4 2014), except for SCCO where the 2014 historical cash cost figure reported by the company is shown (SCCO 2014 C1 cost estimate from Wood Mackenzie is 71 c/Ib Cu)(2) C1 cost is the direct cash cost of producing paid metal, incorporating mining, processing and offsite realization costs, with an allowance for the by-product credits (3) Maximum, minimum and consensus mean price forecasts by various brokers (Bloomberg) as of March 31, 2015 12

2014 Copper Production Cash Cost by Company (1)

0

50

100

150

200

250

300

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

SCCO

Rio Tinto

Antofagasta

BHP Glencore

Vale Anglo

C1 C

ash C

ost

Com

posite (

C/lb

Cu)(

2)

Cumulative Production (Paid Mlb Cu)

Freeport-McM

Global Weighted Avg.

154 c/lb

Codelco

13

III. Financial Overview

14

SCC Financial Summary

(US$ MM) 2013 2014 LTM 2015 2015 E

Copper Price (LME) US$ per pound 3.32 3.11 2.69 2.50

Income Statement:

Net Revenues $5,953 $5,788 $5,263 $5,080

EBITDA 2,954 2,728 2,277 2,087

EBITDA Margin 50% 47% 43% 41%

Net Income 1,618 1,333 1,007 763

Dividends paid per share 0.68 0.46 0.42 0.30

Balance Sheet Statement:

Cash & Equivalents $1,673 $364 $504 $1,109

Total Assets 10,996 11,552 12,974 13,152

Total Debt 4,205 4,206 5,951 5,978

Total Liabilities 5,434 5,715 7,422 7,337

Total Shareholders' Equity 5,534 5,804 5,517 5,781

Cash Flow Statement:

Capital Expenditures $1,703 $1,530 $1,094 $1,310

Free Cash Flow 1

154 (174) (212) (240)

Dividends paid to common shareholders 574 381 338 240

Total Debt / EBITDA 1.4x 1.5x 2.6x 2.9x

1 Free Cash Flow defined as net cash from operating activities less capital expenditures.

Top Tier Margins and Conservative Leverage for Increased Financial Flexibility

2015 Total Debt / EBITDA (x)9M 2015 EBITDA Margin (%)

15

Source: Company Reports1 9M 20152 1H 2015

Amortization Schedule

Source: Company Reports1 9M 20152 1H 2015

Solid Financial Performance

23%

24%

28%

31%

40%

43%

49%

Freeport

Anglo

Vale

Antofagasta

Rio Tinto

SCC

BHP

1

1

2

2

2

1

2

3.80

2.89

2.76

2.20

1.74

1.46

1.43

Vale

Anglo

SCC

Antofagasta

Rio Tinto

Freeport

BHP

2

1

2

1

2

2

1

$1,500

$1,200

$1,100

$1,000

$51

$500

$300

$400

2045

2042

2040

2035

2028

2025

2022

2020

16Source: SCC

Toquepala Concentrator Expansion

4Q17 - $1.2B - 100K Tons Cu , 3.1K

Tons Mo

2013-14 2015-18Buenavista Molybdenum Plant 3Q13 -

$38M - 2K Tons Mo

Buenavista:

- Concentrator Plant 4Q15 - $1.4B -

188K Tons Cu, 2.6K Tons Mo

- Mine equipment $505M

Los Chancas. - $1.2B - 100K

Tons Cu, 7.5K Tons Mo

Los Chalchihuites 2016 -

$140M, 26K Tons Cu

Buenavista Zinc Conc. 2016 -

$332M 16K Tons Cu - 55K

Tons Zn

Investment Program to SignificantlyIncrease Production

Board approved Other projects

Buenavista SX/EW III 4Q14 - $525M

120K Tons Cu

Cuajone: Variable Cut-off Grade + HPGR

2H13 - $158M - 22K Tons Cu,

0.7K Tons Mo

2014-2018 Capex Program Overview (MM) 2014-2018 Copper Production Forecast (‘000 MT Cu)

Tia Maria SX/EW 2Q18 – $1.4B - 120K

Tons Cu

El Arco Conc & SX/EW 2017 -

$2.6B – 190K Tons Cu, 105K

Oz Au

Empalme Cu Smelter 2017 -

$812M – 350K Tons Cu Cont.

Copper Refinery 2017 - $318M

350K Tons Cu Cont.

Zinc Refinery - $600M – 120K

Tons Zn

Cuajone Concentrator

Expansion - $500M – 50K

Tons Cu, 0.7 Tons Mo

Ilo Smelter & Refinery

Expansion

El Pilar 1Q17 - $307M - 20K Tons Cu ,

1,530 1,400

2,300

1,200

640

-

400

800

1,200

1,600

2,000

2,400

2014 2015 2016 2017 2018

677 747

909

1,020

1,160

0

200

400

600

800

1,000

1,200

2014 2015 2016 2017 2018

Initial Capex % of Total Incremental Production Capital Intensity

Type (US$MM) Capex Av. Cu Eq. (kt/a) (US$/tpa Av. Cu Eq.)

Brownfield Projects

Cuajone variable cut-off grade + HPGR Expansion (X) 158.0 2.5% 22.0 7,182

Toquepala concentrator expansion Expansion (N) 1,253.2 19.9% 100.0 12,532

Buenavista SXEW III Expansion (N) 1,363.5 21.6% 120.0 11,363

Buenavista concentrator expansion Expansion (N) 1,785.4 28.3% 188.0 9,497

Pilares Extension 189.5 3.0% 40.0 4,738

Total / Weighted Average Intensity 4,749.6 75.3% 470.0 10,105

Greenfield Projects

Tia Maria SXEW Project Probable 1,379.2 21.9% 120.0 11,493

Angangueo Possible 174.7 2.8% 10.4 16,798

Total / Weighted Average Intensity 1,553.9 24.7% 130.4 11,916

Key Differentiators to Achieve Lower Capital Intensity

• Use of less capital intensive and environmentally friendly SX/EWtechnology for 45% of production growth

• Significant economies of scale in infrastructure for 77% of production increase coming from brownfield expansions

• Reduced mining preparation cost due to low pre stripping for Tia Maria and Buenavista projects

• Experienced project development team focused on capital efficiency

Source: Wood Mackenzie (Global Copper Mine Supply Summary, May 2014), SCCO filings and presentations

Project Capital Intensity at SCCO Projects

Industry-Wide Capital Intensity Comparison vs. SCCO Projects 2010-2014 Capex Evolution

US$MMWeighted Avg. Project Capital Intensity of Existing Projects

US$ 000 per tonne of Cu Equivalent Annual Incremental Production

409

613

1,052

1,703

1,535

0

400

800

1,200

1,600

2,000

'10 '11 '12 '13 '14

4.9

9.9 11.7

16.5

10.1

17.7

21.6

11.9

0

5

10

15

20

25

Restarts Extensions ofExisting Mine

Life

Expansionsto Existing

Mine/Plant (X)

ExpansionsNew Process

Plant (N)

SCCOBrownfield

Probable Possible SCCOGreenfield

Brownfield - Industry Greenfield - Industry

SCCO Project Pipeline

17

Best-in-class Mining Projects Reaching Completion Providing Competitive Cash Costs and Increased Production Levels

$1,814

$2,865

$3,910 $3,773

$2,945$2,728

$2,087

48.6% 56.0% 57.0% 57.0% 49.0% 47.0%41.1%

2009 2010 2011 2012 2013 2014 2015 E

SCC is the Premier Copper Play

• World class assets in investment grade countries

• #1 in reserves of any company with various exploration prospects

- Increasing copper production

• Capacity to deliver projects through flexible capital structure and significant cash

generation capability. Investments focused on cost competitiveness

• Fully integrated low cost operations

• Outstanding dividend history

• Experienced management with proven track record

18

(in US$ millions)

SCC EBITDA and % Margin

SCC’s Major Strengths

Cu price $2.34 $3.61 $3.32 $2.50$3.42 $4.00 $3.11