0

Southern Copper CorporationMay, 2013

1

I. Introduction

2

Management Presenters

Presenter

Raul Jacob

Title

� Vice President, Finance and CFO

3

Corporate Structure

100.0% (*)

99.29 % 99.95 %

18.7% (*)

Public Float

SCC Peru Branch Minera Mexico

(*) As of December 31, 2012

AMERICAS

MINING

CORPORATION

81.3% (*)

Transport13%

Electrical & Electronic Products

34%

Construction31%

Industrial Machinery

13%

Consumer Products

9%

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

Solid Fundamentals Copper Consumption by Region

Brook Hunt Dic 2012

CRU Jan 2013

Copper – The Best Fundamental Story in Commodities

4

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

― Asia represents over 60% of world demand (China=41% and

could reach 45% in 5 years)

― China and EM countries will continue growing, at a lesser

pace, but still substantial.

― Additional production expected by year end or 2014 will be

partially offset by restocking in US and Europe and ore

grade decay.

― Improving view on macroeconomic concerns regarding the

US and Europe. Together, they represent over 50% of

world’s economy and 27% of copper demand.

-

100,000

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900,000

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b-1

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LME COMEX shanghai LME Cash

5

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

►Outstanding dividend history

►Good long-term copper & molybdenum fundamentals

6

II. Overview of Operations

7

Peru

Ilo

Mexico

Copper open pit mines

Underground mines

Smelters and Refineries

Key

Company Overview

Copper Reserves 1: 67.1 mmt

2013 Estimates:

Copper Production: 650 kt

Sales: $ 6.1 B

EBITDA: $ 3.1 B

51% of Sales

1Q - 2013 Cash Cost: $ 0.91/lb.

#1 copper company by reserves 2

#5 copper producer 3

#11 copper smelter and refinery 3

Source: Company FilingsNotes: 1 Copper contained in reserves based on US$2.00 per pound of copper as of December 31, 20122 Based on available companies reports3 Wood Mackenzie Limited 2012

Santa Barbara

Charcas

Taxco

San Luis Potosi

Santa Eulalia

San Martin

Cuajone

La Caridad

Buenavista

Toquepala

8

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

34 34

2521 21 18

0

20

40

60

80

100

120

SCC AngloAmerican

Codelco Freeport BHPBilliton

Rio Tinto Xstrata

67.163.6

41.3

34.5

23.3 21.5 20.7

11.0 10.6

0

10

20

30

40

50

60

70

80

SC

C

Codelc

o

Fre

eport

BH

P B

illito

n

Ang

loA

merican

Rio

Tin

to

Xstr

ata

VA

LE

Anto

fagasta

Cop

per

Re

se

rve

s (

Mt)

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

Period Dec.31, 2012 Dec.31, 2012 Dec.31, 2012 Jun.30, 2012 Dec.31, 2012 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2012

Cu Price $2.00 N/A $2.00 $3.26 N/A N/A N/A $3.67 $2.75

Geographic Footprint & Product Diversification

1Q 2013 Revenue by Product 1Q 2013 Revenue by Market

9

Copper77%

Molybdenum6%

Silver8%

Zinc3%

Acid3%

Other3%

Europe14%

United States21%

Mexico28%

Brasil7%

Chile6%

Peru6%

Other Latin American

1%

Asia17%

Operating Materials

19%

Fuel14%

Power20%

Labor16%

Maintenance16%

Other15%

0.28

0.52

0.710.91

0.0

0.5

1.0

1.5

2.0

2010 2011 2012 1Q13

(US

$/lb

)

10

Low Cost Operations

Cash Costs per Pound of Copper Produced Cash Costs per Pound of Copper Produced Cash Costs per Pound of Copper Produced Cash Costs per Pound of Copper Produced

Net of ByNet of ByNet of ByNet of By----ProductsProductsProductsProducts

CostCostCostCost StructureStructureStructureStructure (1)(1)(1)(1)Operating Cash Cost per Pound of Copper Operating Cash Cost per Pound of Copper Operating Cash Cost per Pound of Copper Operating Cash Cost per Pound of Copper

ProducedProducedProducedProduced

Low Cost DriversLow Cost DriversLow Cost DriversLow Cost Drivers

� Fully integrated low cost operations

� World class assets

� Significant SX-EW production

� Strong by-product credits

� Management focus on cost efficiency

(1) 1Q 2013

1.621.76 1.80

1.99

0.50

1.00

1.50

2.00

2.50

2010 2011 2012 1Q13

(US

$/lb

)

11

III. Financial Overview

12

SCC Financial Summary

(US$ MM) 2011 2012 LTM 2013 1Q 2013

Copper Price (LME) US$ per pound 4.00 3.61 3.56 3.60

Income Statement:

Net Revenues $6,819 $6,669 $6,486 $1,623

EBITDA 3,910 3,773 3,577 861

EBITDA Margin 57% 57% 55% 53%

Net Income 2,336 1,935 1,809 495

Dividends paid per share 2.43 4.06 3.76 0.24Balance Sheet Statement:

Cash & Equivalents $848 $2,459 $2,462 $2,462

Total Assets 8,063 10,384 10,777 10,777

Total Debt 1

2,746 4,214 4,214 4,214

Total Liabilities 4,026 5,595 5,693 5,693

Total Shareholders' Equity 4,015 4,765 5,058 5,058Cash Flow Statement:

Capital Expenditures $613 $1,052 $1,191 $317

Free Cash Flow 2

1,467 952 687 278

Dividends paid to common shareholders 2,080 3,140 3,183 203

Total Debt / EBITDA 0.7x 1.1x 1.2x 1.2x

26%

26%

37%

38%

38%

47%

53%

57%

Xstrata

Anglo

Freeport

Vale

Rio Tinto

BHP

SCC

Antofagasta

1

1

2

2

2

1

2

2

Top Tier Margins and Conservative Leverage for Increased Financial Flexibility

1Q 2013 Total 1Q 2013 Total 1Q 2013 Total 1Q 2013 Total Debt / EBITDA (xDebt / EBITDA (xDebt / EBITDA (xDebt / EBITDA (x))))1Q 2013 EBITDA 1Q 2013 EBITDA 1Q 2013 EBITDA 1Q 2013 EBITDA Margin (%)Margin (%)Margin (%)Margin (%)

13Source: Company Reports1 1Q 20132 2012

No No No No AmortizationsAmortizationsAmortizationsAmortizations UntilUntilUntilUntil 2015201520152015

Source: Company Reports1 1Q 20132 2012

Solid Financial Performance

$1,100

$1,000

$51

$400

$200

$10

$10

2040

2035

2028

2020

2015

2013

2012

2.10

2.04

1.60

1.54

1.38

1.20

0.84

0.49

Xstrata

Anglo

Vale

Freeport

Rio Tinto

SCC

BHP

Antofagasta

1

1

2

2

2

1

2

2

1,800

2,100

1,400

600 600

-

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2013 2014 2015 2016 201714

Source: SCC

Toquepala Concentrator Expansion1H15 - $1.05B - 100K Tons Cu , 3.1K

Tons Mo

2013-14 2015-16 2016-17 2018 and onBuenavista Molybdenum Plant 1Q13 -$38M - 2K Tons Mo

Pilares Cu Mine 1H15 - $189M - 40K Tons Cu

Buenavista:- Concentrator Plant 1H15 - $1.4B -

188K Tons Cu, 2.6K Tons Mo- Mine equipment $505M

Los Chancas. - $1.1B - 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 1H14 - $444M 120K Tons Cu

Cuajone: Variable Cut-off Grade + HPGR 2H13 - $158M - 22K Tons Cu, 0.7K Tons Mo

2013201320132013----2017 2017 2017 2017 CapexCapexCapexCapex Program Overview (MM)Program Overview (MM)Program Overview (MM)Program Overview (MM) 2013201320132013----2017 Copper Production Forecast (‘000 MT Cu)2017 Copper Production Forecast (‘000 MT Cu)2017 Copper Production Forecast (‘000 MT Cu)2017 Copper Production Forecast (‘000 MT Cu)

Angangueo Polymetallic Mine – 1H15 -$175M - 10.4K Tons Cu, 7K Tons Zn, 4K Tons Pb, 2.4M Oz Ag

Tía María SX/EW 1H16 – $1.2B - 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

650725

941

1,181 1,175

0

200

400

600

800

1,000

1,200

1,400

2013 2014 2015 2016 2017

Quebalix Plant III in Buenavista Mexico

15

New Molybdenum Plant in Mexico

16

17

SX EW III Mexico – Solvent Extraction Area

17

18

SX EW III Mexico – Electrolitic Refinery

18

New Copper Concentrator in Buenavista

19

HPGR Plant in Peru - Cuajone

20

Technological Improvement Project - Toquepala

21

22

Ilo 3 Sub Electrical Station

$1,814

$2,865

$3,910 $3,773

$86148.6%56.0% 57.0% 57.0%

53.1%

2009 2010 2011 2012 1Q 2013

SCC is the Premier Copper Play

• World class assets in investment grade countriesWorld class assets in investment grade countriesWorld class assets in investment grade countriesWorld class assets in investment grade countries

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

- Increasing copper production

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

generation capabilitygeneration capabilitygeneration capabilitygeneration capability

• Fully integrated low cost operationsFully integrated low cost operationsFully integrated low cost operationsFully integrated low cost operations

- Strategic investments focused on cost competitiveness

• Outstanding dividend historyOutstanding dividend historyOutstanding dividend historyOutstanding dividend history

• Experienced management with proven track recordExperienced management with proven track recordExperienced management with proven track recordExperienced management with proven track record

23

(in US$ millions)

SCC EBITDA and % Margin

SCC’s Major Strengths

24

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