Southern Copper Corp.

Southern Copper Corp. (NYSE, CIK 1001838) — Southern Copper is one of the largest integrated copper producers (Peru/Mexico mines, smelters, refineries) — a capacity-holder in the same electrification copper supply.

Southern Copper Corporation is an integrated copper-mining and processing company. Its economic model is not just “sell rock”; it is a vertically integrated producer that mines, mills, smelts, refines, and sells copper and several by-product metals. The company is majority-controlled by Grupo México, a position usually reported in its SEC filings.

The table below is based on my training knowledge of Southern Copper’s recent 10-K disclosures. Exact percentages must be re-verified against the current 10-K. All figures need primary source validation.

Source: SCCO EDGAR 10-K filing index, CIK 0001001838, exact accession/exhibit needs primary source validation; access date 2025-06-02.

URL: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001001838&type=10-K&dateb=&owner=include&count=40

I am not using an SEC exhibit number here because I have not been able to open the filing in this environment. The segment table must be re-anchored to the specific 10-K instance document before final use.

A more detailed per-unit copper calculation appears in the Worked calculation section. In summary, Southern Copper’s economics are best understood on a per-pound basis:

• Indicative average realized copper price: $3.85/lb — needs primary source validation
• Indicative net cash cost after by-product credits: $1.55/lb — needs primary source validation
• Indicative implied operating margin: $2.30/lb — derived from the assumed inputs above and in the worked calculation

This is a commodity business. The central economic variable is the spread between realized copper price and unit net cash cost, with molybdenum, zinc, silver, and sulfuric acid acting as by-product credits that materially reduce the net cost of copper production.

The following are from memory of SCCO’s recent GAAP results. They are not independently verified in this session.

Source: SCCO EDGAR 10-K filing index, CIK 0001001838, exact accession/exhibit needs primary source validation; access date 2025-06-02.

Southern Copper monetizes by selling mined and processed metals at market-based prices. The copper price is generally LME/COMEX-linked, while by-products are sold on their own market-price terms.

From what is generally disclosed in SEC filings, revenue arises from:

1. Copper cathode sales to manufacturers, midstream processors, and traders.
2. Copper concentrate sales to smelters and refiners.
3. Molybdenum concentrate sales to steel/metallurgical-chemical buyers.
4. Zinc concentrate sales to zinc smelters.
5. Silver-bearing material sales to precious-metal refiners.
6. Sulfuric acid sales to industrial users.

The exact customer names and contract structures must be taken from the 10-K revenue recognition and customer concentration notes. I will not invent customer names.

The ultimate payers are industrial buyers in the copper value chain: wire and cable producers, brass mills, copper-rod manufacturers, construction/electrification supply chains, and metal traders. Southern Copper’s direct customers may include commodity trading houses and affiliated Grupo México sales entities, depending on how the filing discloses related-party sales. This must be verified in the 10-K.

I cannot state from memory that any specific customer name appears in SCCO’s 10-K. The correct answer requires reading the current 10-K customer-concentration note. Many SEC issuers disclose that one or more customers exceed 10% of revenue without always naming them. Do not treat any third-party list of “top SCCO customers” as primary source evidence unless it matches the SEC filing.

The actual buyer classes can be derived from Southern Copper’s SEC filing descriptions, but specific customer names should not be assumed.

Likely customer classes based on the nature of the products:

The strongest filing-supported buyer archetypes are industrial and midstream buyers, not end-consumers. For copper, the key archetype is a manufacturer that needs reliable copper supply for fabricated products.

_Pending primary-source deep-dive (SEC 10-K); enqueued to company lane._

Major copper producer (Buenavista, Toquepala, Cuajone) with integrated smelting/refining — capacity-holder in electrification copper supply.

• Major copper producer (Buenavista, Toquepala, Cuajone) with integrated smelting/refining — capacity-holder in electrification copper supply. source
• IEA Global Critical Minerals Outlook 2024: copper demand from grid, EVs, and data centers projected to nearly double by 2035 under announced policies. source

\[

911{,}000 \times 2{,}204.62 = 2{,}008{,}408{,}820 \text{ lb}

\]

\[

2{,}008{,}408{,}820 \times 2.30 = \$4{,}619{,}340{,}286

\]

So the illustrative annual copper operating margin is approximately $4.62 billion before corporate-level costs, taxes, and non-operating items. This is an illustrative reconciliation; if the assumptions are off, the result changes proportionally.

Source: calculation inputs are from memory and are not verified. SEC EDGAR SCCO 10-K index, CIK 0001001838, exact accession/exhibit needs primary source validation; access date 2025-06-02.

These sensitivities assume no offsetting changes in by-product credits, costs, hedging, or production response. They are illustrative, not forecasts.

All parameter values require live EDGAR retrieval before use. Nothing above is offered as a verified data point.