What were the copper production and by-products in Southern Copper's operations in Peru in 2023?

Copper production in 2023 increased by 1.8% year-on-year to 911,014 t/y. The annual result was mainly attributed to higher production in our Peruvian operations (+9.5%); this result was partially offset by a 2.9% reduction in production from our Mexican operations, mainly driven by a decrease in ore grades, processing and mineral recovery. Molybdenum production was 26,836 t/y in 2023, 2.3% higher than the 2022 figures. This increase was due to higher production in all our mines, except for the Toquepala mine, where ore grades and recovery fell. Mined zinc production increased 9.2% year-on-year due to higher production in the Charcas and Santa Bárbara mines. Mined silver production decreased slightly in 2023, mainly due to lower production in our Mexican mines. This reduction was partially offset by increased production in our Peruvian operations.

Has Southern managed to maintain operational efficiency and reduce costs?

The cash operating cost per pound of copper in 2023, including credits for by-products, was US$1.03. This 25-cent increase in cash costs (+32.6%), compared to the US$0.78 reported in 2022, was mainly attributed to a 17-cent increase per pound in production costs and an 8-cent decrease in by-product credits. Southern Copper has the lowest cash cost of any copper producer.

What are the key projects for Southern Copper, and how do they align with the company's long-term growth strategy?

Southern is working on expanding its current operations and developing its greenfield projects. Our operations at Toquepala and Cuajone always seek to increase efficiency to enhance productivity. In the specific case of Cuajone, we want to expand our operations to achieve the necessary volume to justify the construction of an additional smelter to the current one with a processing capacity of 1 million t/y of concentrates, along with an expansion of the copper refinery in Ilo. This will also represent a new logistical challenge for transporting over 500,000 tons of copper concentrate to the new smelter in Ilo.

What is the status of the Tía María, Los Chancas, and Michiquillay projects?

We are simultaneously developing all three projects, each with its particular characteristics. The estimated investment for the three projects is approximately US$6.5 billion. We estimate that we could generate 30,000 direct and indirect jobs from these projects.

What new technologies will they apply to improve operational efficiency and reduce environmental impact?

In the case of greenfield operations, Tía María will employ leaching to obtain copper cathodes. This process does not require using a smelter or refinery. Los Chancas and Michiquillay, due to the difficulties of the area where the project are located, engineering studies will determine whether concentration, leaching, or both copper extraction processes will be employed. Southern Peru will employ the most advanced and environmentally friendly technology in its projects.

How does Southern Copper view the current environment in Peru regarding the pipeline of mining projects?

Compared to the previous Government, the perception of the current Government has improved. However, we believe that the current administration should consider those willing to invest to contribute decisively to economic recovery. As a result of the pandemic and uncertainties regarding establishing an investment-promoting policy, Peru has experienced a recession that needs to be reversed as soon as possible. Poverty has increased, and the best way to help overcome this situation is to promote productive employment. The country could be in a better situation, and Southern Peru has always been willing to work throughout Peru.

What are Southern Copper's objectives for 2024 and 2025?

Our objectives will always be to increase our production capacity so that local, regional, and national governments have more significant resources to achieve Peru's development as soon as possible. If the authorities inform us that we can start the development of our projects tomorrow, rest assured that we will assemble teams with the best professionals in both the productive, social, and environmental areas to achieve benefits for all.