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
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
2-J
an-0
9
4-M
ar-
09
1-M
ay-0
9
30
-Jun-0
9
26
-Aug
-09
22
-Oct-
09
18
-Dec-0
9
17
-Fe
b-1
0
16
-Apr-
10
15
-Jun-1
0
11
-Aug
-10
7-O
ct-
10
3-D
ec-
10
31
-Jan-1
1
29
-Mar-
11
25
-May-1
1
22
-Jul-
11
19
-Sep
-11
15
-Nov-1
1
13
-Jan-1
2
12
-Mar-
12
9-M
ay-1
2
5-J
ul-1
2
31
-Aug
-12
29
-Oct-
12
25
-Dec-1
2
21
-Fe
b-1
3
22
-Apr-
13
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
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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
)
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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
$/lb
)
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III. Financial Overview
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SCC Financial Summary
(US$ 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
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New Molybdenum Plant in Mexico
16
17
SX EW III Mexico – Solvent Extraction Area
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18
SX EW III Mexico – Electrolitic Refinery
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New Copper Concentrator in Buenavista
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HPGR Plant in Peru - Cuajone
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Technological Improvement Project - Toquepala
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22
Ilo 3 Sub Electrical Station
$1,814
$2,865
$3,910 $3,773
$86148.6%56.0% 57.0% 57.0%
53.1%
2009 2010 2011 2012 1Q 2013
SCC is the Premier Copper Play
• World class assets in investment grade countriesWorld class assets in investment grade countriesWorld class assets in investment grade countriesWorld class assets in investment grade countries
• #1 #1 #1 #1 in reserves in reserves in reserves in reserves of any company with of any company with of any company with of any company with various exploration prospectsvarious exploration prospectsvarious exploration prospectsvarious exploration prospects
- Increasing copper production
• Capacity to deliver projects through flexible capital structure and significant cash Capacity to deliver projects through flexible capital structure and significant cash Capacity to deliver projects through flexible capital structure and significant cash Capacity to deliver projects through flexible capital structure and significant cash
generation capabilitygeneration capabilitygeneration capabilitygeneration capability
• Fully integrated low cost operationsFully integrated low cost operationsFully integrated low cost operationsFully integrated low cost operations
- Strategic investments focused on cost competitiveness
• Outstanding dividend historyOutstanding dividend historyOutstanding dividend historyOutstanding dividend history
• Experienced management with proven track recordExperienced management with proven track recordExperienced management with proven track recordExperienced management with proven track record
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(in US$ millions)
SCC EBITDA and % Margin
SCC’s Major Strengths
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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