COMPANY PRESENTATION February 2026 Safe Harbor Statement The material in 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 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 th ...

Core Insights - Molybdenum prices decreased by 5% to an average of $20.57 per pound in Q2 2025 compared to Q2 2024, while production increased by 3.5% year-on-year [1] - Copper production in Mexico dropped by 2.5% due to lower output at Buenavista and La Caridad mines, with a forecast of 965,300 tons for 2025, a decrease of 0.9% from 2024 [2] - A potential 50% tariff on U.S. copper imports could impact global economic growth and copper demand, despite a positive long-term outlook for copper [3] - Global copper inventories fell by 28% from 627,000 tons at the end of March to 450,000 tons by the end of June 2025, covering approximately 6 days of global demand [4] - Silver production increased by 15% year-on-year, with an expected output of 22.8 million ounces in 2025, a 9% increase from 2024 [5] - Zinc production surged by 56% quarter-on-quarter, totaling 45,899 tons, with a forecast of 173,400 tons for 2025, a 33% increase from 2024 [6] - Total sales for Q2 2025 were $3.1 billion, a 2% decrease from Q2 2024, with copper sales value dropping by 5% due to lower LME prices [7] - Molybdenum sales fell by 7% due to lower prices, while total operating costs decreased by $47 million or 3% compared to the previous year [8] - Adjusted EBITDA for Q2 2025 was $1,791 million, a slight decrease of 0.3% from the previous year, with an adjusted EBITDA margin of 59% [8] - Net income for Q2 2025 was $973 million, a 2% increase from the previous year, driven by lower operating costs and increased interest income [11] - Cash flow from operating activities in the first half of 2025 was $1,698 million, a 5% increase from the same period in 2024 [12] - The company plans to invest over $10.3 billion in Peruvian projects over the next decade, supported by the Peruvian government's openness to private investment [13] - The Tia Maria project has created 1,376 jobs, with a focus on hiring local applicants [14] - The company is also advancing the Los Chancas project and has signed a framework agreement with the Tiaparo community [15] - The Michiquillay project is 45% complete, with ongoing geological studies [16] - Southern Copper is planning to invest over $600 million in its Mexican operations in 2025 [17] - The company has made significant progress in sustainability, achieving a 24% reduction in lost time injury frequency and sourcing 39% of electricity from renewable energy [20] - Southern Copper was included in sustainability indices, recognizing its compliance with ESG standards [21] - The company announced a quarterly cash dividend of $0.80 per share, payable on September 4, 2025 [25]

Core Insights - Southern Copper reported a record high EBITDA of $7.8 billion for 2025, a 22% increase from 2024, and a net income of $4.3 billion, which is 28% higher than the previous year [2][16] - The company anticipates a copper market deficit of approximately 320,000 tons for 2026, driven by current supply and demand dynamics [1][52] - The company aims to produce 1.6 million tons of copper at the lowest competitive cost per pound, with a focus on enhancing productivity and cost efficiency [2] Production and Sales - Copper production for 2025 was 956,270 tons, a decrease of 1.8% compared to the previous year, with expectations of further decline to 911,400 tons in 2026 [5][6] - Molybdenum production increased by 10% in Q4 2025 compared to Q4 2024, with an average price of $22.75 per pound, reflecting a 5% increase [6][15] - Silver production reached 24 million ounces in 2025, a 15% increase over 2024, with expectations to maintain similar levels in 2026 [8][16] Financial Performance - Total sales for Q4 2025 were $3.9 billion, a $1.1 billion increase from Q4 2024, with copper sales up 39% [11][12] - The adjusted EBITDA margin for Q4 2025 was 60%, up from 54% in Q4 2024, while the full-year adjusted EBITDA margin was 58% [13][16] - Operating cash cost per pound of copper before by-product credits was $2.29 in Q4 2025, reflecting a 3% increase from the previous quarter [14][15] Capital Investments and Projects - The company has committed over $20.5 billion for capital investments this decade, with $1.3 billion spent in 2025, a 29% increase year-on-year [17] - The Tia Maria project in Peru is currently 24% complete, with an estimated capital budget of $1.8 billion, expected to generate $20.2 billion in exports over its first 20 years [19][20] - The company is also facing challenges with the Los Chancas project due to illegal mining activities, which have hindered progress [21][49] Environmental, Social, and Governance (ESG) Initiatives - Southern Copper's Buenavista, Toquepala, and Cuajone mines received accreditation from The Copper Mark for compliance with global tailings management standards [22][23] - The company has invested over $400 million in infrastructure projects in Peru to bridge social gaps, benefiting more than 5,000 residents [24][61] Market Outlook - The copper market is expected to face a deficit, influenced by demand from electric vehicles and other technologies, despite challenges in the Chinese real estate market [52][53] - The company remains focused on controlling costs and maximizing production efficiency to enhance shareholder returns [53][56]

Core Viewpoint - The analysis compares Freeport-McMoRan (FCX) and Southern Copper (SCCO) to determine which stock offers better value for investors in the Mining - Non Ferrous sector [1] Group 1: Zacks Rank and Earnings Outlook - FCX has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while SCCO has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for FCX makes it a more attractive option for value investors [7] Group 2: Valuation Metrics - FCX has a forward P/E ratio of 26.91, compared to SCCO's forward P/E of 32.68 [5] - FCX's PEG ratio is 0.74, while SCCO's PEG ratio is 1.71, suggesting FCX may be undervalued relative to its expected earnings growth [5] - FCX's P/B ratio is 2.97, significantly lower than SCCO's P/B of 16.08, indicating a better valuation relative to book value [6] - These metrics contribute to FCX's Value grade of B and SCCO's Value grade of D [6]

Market Performance - The three major U.S. stock indices closed higher, with the Dow Jones up 0.04%, the Nasdaq up 0.9%, and the S&P 500 up 0.47% [1] - Major technology stocks saw significant gains, with Oracle rising over 9%, Microsoft and Broadcom up over 3%, and Nvidia and Meta up over 2% [1] Sector Performance - Cryptocurrency mining companies, precious metals, and non-ferrous metals led the gains, with Vista Gold up over 14%, Hut 8 up over 7%, and Pan American Silver up over 6% [1] - Other notable performers included Alcoa and Royal Gold, both rising over 5%, and Southern Copper up over 4% [1] - Retail and insurance brokerage sectors faced declines, with Macy's and Kohl's both down over 5%, and the American Reinsurance Group down over 2% [1] Chinese Stocks - The Nasdaq Golden Dragon China Index rose 0.12%, with notable gains in Chinese concept stocks such as Kingsoft Cloud, Pony.ai, and JinkoSolar, which rose up to 3.79% [1] - Other gainers included Zai Lab up 2.44%, Huazhu up 1.66%, while companies like Yum China, XPeng, Ctrip, Bilibili, NIO, Li Auto, and New Oriental experienced declines, with New Oriental down 4.24% [1]

Market Performance - The US stock indices all closed higher, with the Nasdaq rising nearly 1%, the Dow Jones slightly up, and the S&P 500 increasing by 0.5%, nearing its historical high [1] - The Dow Jones closed at 50,135.87, up by 20.20 points (0.04%), the Nasdaq at 23,238.67, up by 207.46 points (0.90%), and the S&P 500 at 6,964.82, up by 32.52 points (0.47%) [2] Technology Sector - Major US tech stocks rebounded after a recent sell-off triggered by AI concerns, with the tech giants index rising by 1.02% [2] - Microsoft saw an increase of over 3%, while Nvidia and Facebook rose by over 2%. However, Apple and Amazon experienced declines of over 1% and 0.76%, respectively, marking Amazon's fifth consecutive day of decline [2] Chip Sector - The chip stock index increased by 1.9%, with Oracle rising over 9%, and Microsoft and Broadcom up by over 3%. In contrast, Micron Technology and SanDisk fell by nearly 3% [3] Commodity Market - Gold prices continued their upward trend, with spot gold rising nearly 2% to surpass $5,050. COMEX gold increased by over 2%, while spot silver rose by over 7% and COMEX silver by 8% [6][7] - Crude oil prices rose by over 1%, influenced by new US guidelines for ships passing through the Strait of Hormuz [6] Employment and Inflation Data - Upcoming US non-farm payroll and CPI reports are expected to provide important insights into the Federal Reserve's monetary policy direction, with potential for significant market volatility if the data indicates "weak employment + stubborn inflation" [8] - Current probabilities for Federal Reserve interest rate changes indicate a 17.7% chance of a 25 basis point cut by March and a 50.4% chance of a 25 basis point cut by June [8]

Core Insights - Southern Copper Corporation (SCCO) reported higher year-over-year sales and earnings in Q4 2025, exceeding Zacks Consensus Estimates due to increased sales volumes and metal prices [2][9] - For 2025, SCCO achieved record sales of $13.4 billion, a 17.4% increase year-over-year, driven by higher sales volumes for molybdenum, zinc, and silver, despite a slight dip in copper sales volume [10][11] - The company anticipates a 4.7% decline in copper output for 2026, projecting production of 911,400 tons [12][6] Financial Performance - Q4 2025 earnings per share reached $1.56, a 59% increase year-over-year, with net sales rising 39% to $3.87 billion [9][11] - Adjusted EBITDA for 2025 hit a record $7.8 billion, up 22% year-over-year, while net income reached $4.3 billion, a 28.4% increase [11] - The Zacks Consensus Estimate for 2026 earnings is $6.37 per share, indicating a 21.6% year-over-year growth, although a decline of 12.6% is expected for 2027 [19] Production and Growth Outlook - Copper production for 2025 decreased by 1.8% to 956,270 tons, slightly below the expected 965,000 tons [12] - The company plans to invest over $20.5 billion over the next decade to ramp up copper production to approximately 1.6 million tons by 2033, indicating a 6.6% CAGR [13] - Major projects like Tia Maria and El Pilar are expected to contribute significantly to future production, with Tia Maria starting in 2027 and El Pilar in 2029 [14][15] Market Position and Competitive Advantage - SCCO holds the largest copper reserves among listed peers, totaling 51.1 million metric tons, enhancing its competitive positioning [16] - The company benefits from a supportive commodity price environment, with copper futures up 26% year-over-year and silver prices surging 170% in 2025 [17][18] - SCCO's current dividend yield of 2.00% is higher than the industry average of 1.26% and the S&P 500's 1.07% [22] Valuation and Investment Considerations - Southern Copper is trading at a forward price-to-sales multiple of 11.29X, significantly higher than the industry average of 5.13X [23] - The stock's premium valuation, combined with near-term production declines and expectations of softer earnings beyond 2026, suggests limited upside at current levels [27] - The unmatched reserve base and ambitious growth plans make SCCO a compelling long-term investment in rising copper demand [26]

Market Overview - The three major U.S. stock indices closed lower, with the Dow Jones down 0.34%, the Nasdaq down 1.43%, and the S&P 500 down 0.83% [1] - Popular technology stocks experienced declines, with Broadcom falling over 3%, and Microsoft, Nvidia, and Meta each dropping over 2% [1] Sector Performance - The rare earth, non-ferrous metals, and precious metals sectors saw significant gains, with gold resources rising over 20%, Southern Copper up over 11%, Americas Silver up over 8%, and Pan American Silver up over 5% [1] - Conversely, application software, cryptocurrency, and weight loss drug stocks faced notable declines, with Novo Nordisk down over 14%, Coinbase and Circle each down over 4%, and Eli Lilly and Pfizer each down over 3% [1] Notable Company Movements - Walmart's stock increased by 2.94%, marking its market capitalization surpassing the $1 trillion milestone for the first time [1] - The Nasdaq Golden Dragon China Index fell by 0.94%, with significant declines in popular Chinese stocks such as Daqo New Energy down 5.6%, Bilibili down 4%, and Kingsoft Cloud down 3.5% [1] - Alibaba dropped 2.9%, while NIO rose 0.8%, Pony.ai increased by 2%, Huazhu up 2.2%, New Oriental up 2.3%, Li Auto up 2.7%, Canadian Solar up 4.1%, and Xpeng up 4.3% [1]

Group 1 - The precious metals sector experienced a strong rally, with Southern Copper Corporation (SCCO.US) rising over 7% [2] - Freeport-McMoRan Copper & Gold (FCX.US) and First Majestic Silver (AG.US) both increased by more than 5% [2] - Pan American Silver (PAAS.US) saw an increase of over 4%, while Newmont Corporation (NEM.US) rose by more than 3% [2] Group 2 - Gold and silver prices rebounded significantly, with spot gold rising over 5% to surpass $4,900 [2] - Spot silver surged more than 12%, reaching $88.76 [2]

Core Viewpoint - The precious metals sector experienced a strong rally, with significant gains in various companies, driven by a rebound in gold and silver prices [1] Group 1: Market Performance - Southern Copper Corporation (SCCO.US) rose over 7% - Freeport-McMoRan Copper & Gold (FCX.US) and First Majestic Silver (AG.US) increased by more than 5% - Pan American Silver (PAAS.US) gained over 4% - Newmont Corporation (NEM.US) saw an increase of over 3% [1] Group 2: Price Movements - Spot gold surged over 5%, surpassing $4,900 - Spot silver jumped over 12%, reaching $88.76 [1] Group 3: Analyst Insights - UBS Global Research analyst Joanie Teves released a report indicating that while gold faces short-term price pressures, the long-term outlook for the precious metals market remains positive - Teves is optimistic about gold's long-term prospects, citing global financial system uncertainties and economic concerns as factors that will continue to drive demand for gold - The advantages of gold as a safe-haven asset will become more pronounced amid changes in Federal Reserve policy and escalating international political risks, suggesting significant upside potential for gold prices in the long term [1]