Southern Copper Corporation Investment Program. Eng. Oscar Gonzalez Rocha Chief Executive Officer

Transcription

1 Southern Copper Corporation Investment Program Eng. Oscar Gonzalez Rocha Chief Executive Officer

2 SOUTHERN COPPER CORPORATION One of the largest integrated copper producers in the world. We produce copper, molybdenum, zinc and silver

3 SCC was incorporated in Delaware in 1952 All of our mining, smelting and refining facilities are located in Peru and Mexico and we conduct exploration activities in those countries and in Argentina, Chile and Ecuador.

4 Company Overview Buenavista La Caridad Santa Eulalia Santa Barbara San Martin Charcas San Luis Potosi Taxco Key Copper open pit mines Underground mines Smelters and Refineries Cuajone Ilo Toquepala

5 Corporate Structure 100.0% (*) 84.0% (*) AMERICAS MINING CORPORATION % % (*) As of March, 2014

6 SCC Operations, Use modern, state-of-the-art mining and processing methods. Have a high level of vertical integration. Utilize their own facilities, transports and logistics functions, employees and equipment.

7 Low Cost Operations Low cash driver Cost Structure (1) Fully integrated low cost operations World class assets Significant SX-EW production Maintenance, 15% Labor, 14% Power, 19% Strong by-product credits Management focus on cost efficiency Other, 16% Fuel, 17% Operating Materials, 19%

8 Tia Maria Project On August 4 th, the Environmental Impact Study was obtained. Construction will start IQ Production will start by the end of Investment US$1,400 million.

9 Toquepala Mine Expansion Total Investment: US$1,100 million. Investment by December 31, 2013: US$88.5 million. The modernization will reduce our operating costs by approximately US$ 5,5 million. Annual production will increase by 100,000 MT of copper & 3,100 MT of molybdenum.

10 Cuajone Mine Modernization Investment in 2014: US$170 million. HPGR Project. During 2013, Cuajone mine increased its production by 6%.

11 Operations in Mexico Minera México S.A. de C.V. Mexicana de Cobre: La Caridad mine operates an open pit, a concentrator, an EX/EW plant, a smelter, a refinery and a rod plant, and a precious metals plant.

12 Buenavista Projects Total Investment $ 3.4 billion. SX-EW III will produce 120 thousand MT of copper, by the end of the 4thQ, 2014, its first total production year. To-date, SCC has invested $1.93 billion. SCC estimates that all its projects will be completed by the end of Its production will increase to 308,000 MT per year.

13 El Arco: Other Projects World class copper deposit in Baja California, Mexico). Copper reserves are 1,500 million MT, with an ore grade of 0.416% and 0,14 gold grams per MT. Feasibility study was completed in Its production will reach 190,000 MT of copper and 105,000 gold ounces per year.

14 Others Explorations projects Peru Mexico Chile Ecuador Argentina United States of America

15 Copper Consumption by Regions Copper has the best fundamentals in the basic materials space: China and EM countries will continue growing, at a lesser pace, but still substantial. Additional production expected will be partially offset by restocking in US and Europe, ore grade decay and scrap scarcity. Asia 62% USA 8% Others 7% Japan 5% Europe 18%

16 Southern Copper s Strenght Highest copper reserves of the industry Excellet 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

17 SCC Codelco Freeport BHP Billiton Glencore Xstrata Anglo American Rio Tinto Antofagasta VALE Copper Reserves (Mt) Our Reserves SCC holds the world s largest copper reserve position. Our copper ore reserves, at December 31, 2013, totaled 67.6 million tons of contained copper, calculated at a copper price of $2.00 per pound (LME and COMEX copper price was $3.35 and $3.44, respectively)

18 Awards In November 2013, Southern Copper was distinguished by World Finance for its corporate bonds issued (US$ 1,500 in Senior Notes) the best in the mining industry.

19 The Company has instituted extensive environmental conservation programs at its mining facilities in Peru and Mexico. Environmental capital expenditures in years 2013, 2012 and 2011, were $60,7 million.

20 Eng. Oscar Gonzalez Rocha SCC Chief Executive Officer