The following discussion provides information that management believes is
relevant to an assessment and understanding of the condensed consolidated
financial condition and results of operations of Southern Copper Corporation and
its subsidiaries (collectively, "SCC", "the Company", "our", and "we"). This
item should be read in conjunction with our interim unaudited Condensed
Consolidated Financial Statements and the notes thereto included in this
quarterly report. Additionally, the following discussion and analysis should be
read in conjunction with the Management Discussion and Analysis of Financial
Condition and Results of Operations and the Consolidated Financial Statements
included in Part II of our annual report on Form 10-K for the year ended
December 31, 2021.

EXECUTIVE OVERVIEW



Business: Our business is primarily the production and sale of copper. In the
process of producing copper, a number of valuable metallurgical by-products are
recovered, which we also produce and sell. Market forces outside of our control
largely determine the sale prices for our products. Our management, therefore,
focuses on value creation through copper production, cost control, production
enhancement and maintaining a prudent capital structure to remain profitable. We
endeavor to achieve these goals through capital spending programs, exploration
efforts and cost reduction programs. Our aim is to remain profitable during
periods of low copper prices and to maximize financial performance in periods of
high copper prices.

We are one of the world's largest copper mining companies in terms of production
and sales and our principal operations are in Peru and Mexico. We also have
exploration programs in Chile, Argentina and Ecuador. In addition to copper, we
produce significant amounts of other metals, either as a by-product of the
copper process or through a number of dedicated mining facilities in Mexico.

Outlook: Various key factors will affect our outcome. These include, but are not limited to, the following:

Sales structure: In the second quarter of 2022, approximately 77.9% of our ? revenue came from the sale of copper; 8.6% from molybdenum; 4.3% from silver;

3.5% from zinc; and 5.7% from various other products, including gold, sulfuric

acid and other materials.

Copper: In the second quarter of 2022, the LME copper price decreased from an

average of $4.40 per pound in the second quarter of 2021 to $4.32 (-1.8%).

During the month of June, we had a significant drop in copper prices down to ? its current level of $3.30 to 3.50 per pound; this scenario bodes a negative

outlook for the Company. A concern for a simultaneous recession in the U.S.,

Europe and China is dominating the market and, consequently, affecting copper

prices. These fears are based upon the following factors:

? The consistent increment in interest rates by the FED, the ECB and other

relevant central banks.

? The slowdown of the Chinese economy due to Covid-19 restrictions and the

construction activities 31% YoY reduction.

However, we should note that:

The most relevant market intelligence houses for the copper market are

? expecting a market in balance or with a small deficit for 2022 of about 200,000

tons.

? This assumes growth in demand of 1.0-2.5% in 2022, particularly in terms of

cathode consumption in the US.

There is uncertainty regarding future production growth in Chile and Peru,

? which together represent about 40% of the global supply. Chile registered a

production drop of 7% in the first quarter of 2022, while 13% of Peru's

production is currently at risk in Las Bambas.

The major warehouses have not reported a relevant increase in copper


 ? inventories, which were as of June 30 at 8 days of consumption, a relatively
   low level.


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We believe the economic slowdowns in the U.S., China and Europe have temporarily
weakened the demand for copper and are driving reductions in current prices. It
is important to emphasize that copper plays a leading role in the global shift
to clean energy, which correlates positively with our assertion that the
underlying demand for copper will be strong in the long-term. In this scenario,
we believe the current cycle of low prices should be short-lived.

Molybdenum: Represented 8.6% of our sales in the second quarter of 2022 and is ? currently our most important by-product. Molybdenum prices averaged $18.30 per

pound in the second quarter of 2022, compared to $13.89 in the same period of

2021. This represented a 31.7% price increase.

Regarding this by-product, we believe that prices will be supported by lower exports from China and Russia, that are maintaining this market in a deficit.


Molybdenum is mainly used in the production of special alloys for stainless
steel that require significant hardness and corrosion and heat resistance. New
uses for this metal are associated with lubricants, sulfur filtering of heavy
oils and shale gas production.

Silver: Represented 4.3% of our sales in the second quarter of 2022. We believe ? that the prices for silver will be supported by its intensive level of

industrial use and the fact that, like gold, it represents value shelter in

times of economic turmoil.

Zinc: Represented 3.5% of our sales in the second quarter of 2022. We consider ? zinc has very good long term fundamentals due to high levels of industrial


  consumption and expected production.


  Production: For 2022, we expect to produce 898,200 tons of copper, which

represents a decrease of 6.3% compared to 2021. We expect our copper production ? to bounce back in 2023 and reach 971,200 tonnes as we get the Peruvian

production back on track and generate new production through our projects at

Pilares and Buenavista Zinc Concentrator.




We also expect to produce 25,700 tonnes of molybdenum, which represents a
decrease of 15.2% over our 2021 production levels. In 2022, we expect to produce
18.9 million ounces of silver, which represents a slight decrease of 0.5% over
our 2021 production level. Additionally, we expect to produce 66,900 tonnes of
zinc from our mines, in line with 2021 production.

Capital Investments: In the first semester of 2022, we spent $429.7 million on ? capital investments; this represented 35.3% of net income and a decrease of

5.0% compared to the amount registered for the same period in 2021.

CYBERSECURITY



Our operations depend upon information technology systems that may be subject to
disruption, damage or failure from different sources, including, without
limitation, installation of malicious software, computer viruses, security
breaches, cyber-attacks and defects in design. In recent years, cybersecurity
incidents have increased in frequency and include, but are not limited to,
malicious software, attempts to gain unauthorized access to data and other
electronic security breaches that could lead to disruptions in systems,
unauthorized release of confidential or otherwise protected information and the
corruption of data. We have implemented appropriate preventative measures to
mitigate potential risks by implementing an information security management
system, which ensures application of controls that are frequently reviewed and
tested.

In March 2021, we experienced a Ransomware cyber-attack, which was conducted by
individual hackers. This cyber-attack encrypted a total of 420 servers and units
of personal equipment. However, due to the quick response of our IT team, our
Enterprise Resource Planning software was not affected by the aforementioned
attack.

After the attack, we immediately began a remediation and recovery process and
completely restored the affected servers. The forensic investigation did not
identify concrete evidence that any information was stolen during the

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attack. However, we maintain active lines of cyberintelligence and continue to
monitor the DarkWeb/DeepWeb and social networks to identify any publication or
activity related to the Company to validate the technological controls affected
during the attack and ensure that our systems infrastructure remains secure.

In March 2021, we appointed a new head of the Information Technology Department,
who implemented a new information security strategy to ensure business
continuity based on processes (controls and corporate governance framework),
technology and human capital (organizational culture). In July 2021, Grupo
Mexico appointed a Chief Information Security Officer, who has been actively
involved in the development and implementation of this information security
strategy. In addition, from July to September of 2021, we performed a cybernetic
forensic analysis with the assistance of a professional consulting firm with
international experience in this area. The recommendations received were
integrated in current information security programs.

Additionally, AMC set up a task force to oversee ongoing initiatives and ensure
that targets are met. We are actively following this matter with the task force,
our internal audit team and; will also require the expertise of third parties.

Our new information security strategy is being executed on a continuous basis.
The compliance, internal control, information technology and internal audit
departments are all working together to integrate reference frameworks, risk
management models and the necessary controls to continue executing this strategy
and corresponding programs. To support our commitment to the strategy, we are
working under the international framework for reference and standard, such as
ISO, COBIT and NIST, to certify the Company´s security systems. The Company has
also established an information security culture with the purpose of training,
communicating and maintaining permanent awareness among the workforce. On the
governance framework side, the Company has created a Committee of Information
Security and set up security policies and standards, among other actions.

For 2022 we have a non-material special budget to continue improvements in this area.

CUAJONE STOPPAGE OF OPERATIONS



On February 28, 2022, a small group of protesters from the community of
Tumilaca, Pocata, Coscore and Tala, which have 472 residents in total, seized
the facilities at the Viña Blanca water reservoir and cut off the water supply
to the homes of the approximately 5,000 people who live in Cuajone. Prior to
this illegal action, on February 18, 2022, the railway between Cuajone and Ilo
was also blocked by a group of community members. They claim, the Company
usurped their land and demand compensation of $5.0 billion, in addition to the
permanent payment of 5% of net profits.

After several unsuccessful attempts by the authorities to restore order through
dialogue, on April 20, 2022, the Peruvian government declared a state of
emergency in the Moquegua region. On April 21, 2022, the protesters returned the
installations of the Viña Blanca water reservoir and the railway to the Company.
Our personnel immediately evaluated the damage caused to the facilities by acts
of vandalism and took the necessary steps to resume production at the Cuajone
mining unit. On April 25, 2022, the Cuajone mine, concentrator, industrial
railroad and related facilities reached full capacity. Based on the 2022 Company
operating plan, the total production loss during the stoppage period was 22,208
tonnes of copper content and 485 tonnes of molybdenum, which translates into a
reduction in sales of $228 million. We also recorded $14.0 million of unabsorbed
fixed costs, which directly impacted the cost of sales. To mitigate the impact
on sales' contracts, measures were taken to acquire concentrates from our
Mexican Operations and third parties to maintain an adequate supply to the
smelter. Despite the force majeure event at Cuajone, the Company was able to
fulfill all sales'commitments without delays.

On April 30, 2022 the Peruvian government issued a Ministerial Resolution to set
up a three-party-dialogue-table with members of the community, government and
Company officials to better understand all parties' concerns. As of today, nine
round-table meetings and three direct meeting with the community have been held.
The Company has proposed plans to invest in social programs that address the
needs voiced by the communities and has indicated interest in purchasing land
near the Cuajone operations to establish a buffer zone to protect installations
and production down the line. We strongly believe that the programs that we have
proposed will make meaningful and sustainable contributions to the community's
progress and wellbeing. These efforts will be complemented by

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positive impacts through the Social Investment for Taxes scheme (obras por impuestos), which will allow the Peruvian Branch to fund public investments in necessary infrastructure and services and credit expenditures against its taxes.

ECONOMIC CONSEQUENCES OF RUSSIA´S INVASION OF UKRAINE


The Ukraine-Russia war that broke out in February of 2022, has generated a
series of impacts in the global economy and on international trade including,
but not limited to, volatility in commodity prices, cost and supply chain
pressures and availability and disruption in capital markets. This has forced
companies to adjust their supply and commercial plans to deal with shipping
delays for goods and higher prices for the same. The increase in the cost of oil
and energy, coupled with saturation at ports, which was already high due to a
surge in global economic activity after the COVID-19 pandemic ebbed, has driven
up the prices of the vast majority of products and generated uncertainty in
economies. Although the Company does not currently have operations in Ukraine,
Russia or other parts of Europe, this situation is affecting the countries in
which we operate and in which our clients and suppliers operate, although the
extent of the impact varies.

As of June 30, 2022, the impact of these events was not material for the Company; however, we are monitoring and adjusting our supply schedules to reflect the delay in the delivery of our critical supplies. Currently, our sales program has suffered no impacts.

KEY MATTERS



Below, we discuss several matters that we believe are important to understand
the results of our operations and financial condition. These matters include,
(i) our earnings, (ii) our production, (iii) our "operating cash costs" as a
measure of our performance, (iv) metal prices, (v) business segments, (vi) the
effect of inflation and other local currency issues, and (vii) our capital
investment and exploration program.

Earnings: The table below highlights key financial and operational data of our
Company for the three and six months ended June 30, 2022 and 2021 (in millions,
except copper price, percentages and per share amounts):

                                Three months ended June 30,

Six months ended June 30,


                       2022         2021       Variance     % Change        2022         2021       Variance     % Change
Copper price LME          4.32         4.40       (0.08)       (1.8) %         4.43         4.13         0.30         7.3 %
Pounds of copper
sold                     430.7        514.9       (84.2)      (16.4) %        889.2      1,044.4      (155.2)      (14.9) %
Net sales            $ 2,306.9    $ 2,897.0    $ (590.1)      (20.4) %    $ 5,070.7    $ 5,429.5    $ (358.8)       (6.6) %
Operating income     $   808.5    $ 1,675.2    $ (866.7)      (51.7) %    $ 2,278.6    $ 3,026.8    $ (748.2)      (24.7) %
Net income
attributable to
SCC                  $   432.3    $   932.7    $ (500.4)      (53.7) %    $ 1,217.1    $ 1,696.6    $ (479.5)      (28.3) %
Earnings per
share                $    0.56    $    1.21    $  (0.65)      (53.7) %    $    1.57    $    2.19    $  (0.62)      (28.3) %
Dividends per
share                $    1.25    $    0.70    $    0.55        78.6 %    $    2.25    $    1.30    $    0.95        73.1 %


Net sales in the second quarter of 2022 were 20.4% lower than in the same period
of 2021. This decrease was driven by a drop in prices for copper (-1.8% - LME)
and silver (-15.4%) and by a decrease in the sales volume of all our major
products due to an uptick in the finished goods inventory, a decrease in
production due to the Cuajone stoppage and lower ore grades. Net sales in this
quarter were also negatively affected by the accounting adjustment of $173.5
million for a price variation on sales made and not yet collected. This effect
was partially offset by higher prices for molybdenum (+31.7%) and zinc (+34.8%).

Net income attributable to SCC in the second quarter of 2022 was 53.7% lower
than in the same period of 2021. This scenario has been compounded by increases
in costs for fuel, power and some other operating materials due to inflation. In
a context impacted by a drop in copper prices, we registered a significant
mark-to-market adjustment to open sales. Quarterly results were also affected by
a 25,624 tonne decrease in copper production at our Peruvian operations, which

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was mainly attributable to the stoppage at Cuajone and lower ore grades. In order to avoid a force majeure event, production losses were temporarily offset with copper purchased from third parties, albeit at a higher cost.

Net sales in the first six months of 2022 were 6.6% lower than in the same period of 2021, due to lower sales volume of

copper (-14.9%), silver (-10.5%), molybdenum (-5.8%) and a mark- to-market adjustment to open sales that represents a

decrease of $143.0 million in sales with regard to the figure in the first six months of 2021. These negative variances

were partially offset by higher average metal prices for almost all our main products in the first six months of 2022:

copper (+7.3% - LME), molybdenum (+48.6%), zinc (+35.9%) and by an increase in sales volumes of molybdenum



(+13.1%) and zinc (+0.1%).

Net income attributable to SCC in the first six months of 2022 was 28.3% lower
than in the same period of 2021. This decrease was mainly attributable to lower
sales while operating costs had an 16.2% increase.

Production: The table below highlights our mine production data for the three and six months ended June 30, 2022 and 2021:



                           Three months ended June 30,

Six months ended June 30,


                      2022     2021     Variance    % Change      2022      2021      Variance    % Change
Copper (in million
pounds)               459.5    522.7      (63.2)      (12.1) %    932.4    1,048.3     (115.9)      (11.1) %
Molybdenum (in
million pounds)        13.9     15.4       (1.5)       (9.4) %     29.6       31.3       (1.7)       (5.4) %
Silver (in million
ounces)                 4.4      4.6       (0.2)       (4.3) %      8.7        9.6       (0.9)       (9.0) %
Zinc (in million
pounds)                33.4     37.7       (4.3)      (11.5) %     65.8       74.0       (8.2)      (11.1) %

The table below highlights our mine production data for the three and six months ended June 30, 2022 and 2021:



                              Three Months Ended June 30,                   Six Months Ended June 30,
Copper (in million
pounds):                 2022     2021     Variance    % Change      2022      2021      Variance    % Change
Toquepala                 98.2    130.2      (32.0)      (24.5) %    210.7      258.6      (47.9)      (18.5) %
Cuajone                   68.7     93.2      (24.5)      (26.3) %    122.5      180.7      (58.2)      (32.2) %
La Caridad                58.5     72.9      (14.4)      (19.8) %    123.1      145.2      (22.1)      (15.3) %
Buenavista               228.9    221.9         7.0         3.1 %    466.5      453.8        12.7         2.8 %
IMMSA                      5.2      4.5         0.7        16.5 %      9.6       10.0       (0.4)       (4.2) %
Total mined copper       459.5    522.7      (63.2)      (12.1) %    932.4    1,048.3     (115.9)      (11.1) %



Second quarter: Mined copper production in the second quarter of 2021 fell by
12.1% to 459.5 million pounds compared to 522.7 million pounds in the second
quarter of 2021. This was mainly attributed to a production drop due to the
Cuajone mine stoppage (-26.3%) and lower copper production at Toquepala (-24.5%)
and La Caridad (-19.8%) due to lower grades. This was partially offset by an
increase of production at our Buenavista (+3.1%) and IMMSA (+16.5%) mines.

Molybdenum production decreased 9.4% in the second quarter of 2022 with regard
to the levels registered in the second quarter of 2021. This was attributable to
a decrease in production at our Cuajone (-23.9%) mine, which was primarily
attributable to stoppage at this unit, and secondarily to a decrease in
Toquepala (-5.7%) and La Caridad (-12.5%) mines due to lower grades and
recoveries. This effect was partially offset by a increase in production at the
Buenavista (+3.3%) mines due to higher grades.

Silver mine production decreased 4.3% in the second quarter of 2022, compared
with the same period of 2021, due to a drop in production at the Toquepala
(-27.6%), Cuajone (-22.7%) and La Caridad (-12.5%) operations. This was offset
by higher production an the Buenavista (+5.5%) and IMMSA (+9.7%) operations.

Zinc production decreased 11.5% in the second quarter of 2022 compared with the same period of 2021. This decrease was mainly attributable to a drop in production at the Charcas and San Martin units, which was attributable to a decrease in processed material and lower average zinc grades.



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Six months: Mined copper production in the first six months of 2022 decreased
11.1% to 932.4 million pounds compared to 1,048.3 million pounds in the same
period of 2021. This decrease was mainly attributable to the Cuajone

mine stoppage (-32.2%) and a drop in production at our Toquepala (-18.5%), La Caridad (-15.3%) and IMMSA (-4.2%)

mines due to lower grades. This effect was slightly offset by an increase in production at Buenavista (+2.8%) mine.



Molybdenum production decreased 5.4% in the first six months of 2022 compared to
the same period in 2021; this was mainly due to lower production at our Cuajone
(-33.2%) and La Caridad (-7.4%) mines, which was partially offset by higher
production at the Toquepala (+1.9%) and Buenavista (+9.6%) mines.

Silver mine production decreased 9.0% in the first six months of 2022; this was
principally due to lower production at our Toquepala (-25.9%), Cuajone (-28.6%),
La Caridad (-9.1%) and IMMSA (-3.6%) operations, which was partially offset by
higher production at Buenavista (+4.0%) mine.

Zinc production decreased 11.1% in the first six months of 2022 due to a fall in
production at our Charcas, San Martin and Santa Barbara mines, principally due
to lower grades.

Operating Cash Costs: An overall benchmark that we use, which is a common
industry metric to measure performance is operating cash costs per pound of
copper produced. Operating cash cost is a non-GAAP measure that does not have a
standardized meaning and may not be comparable to similarly titled measures
provided by other companies. This non-GAAP information should not be considered
in isolation or as substitute for measures of performance determined in
accordance with GAAP. A reconciliation of our operating cash cost per pound of
copper produced to the cost of sales (exclusive of depreciation, amortization
and depletion) as presented in the consolidated statement of earnings is
presented under the subheading, "Non-GAAP Information Reconciliation" on page
59. We disclose operating cash cost per pound of copper produced, both before
and net of by-product revenues.

We define operating cash cost per pound of copper produced before by-product
revenues as cost of sales (exclusive of depreciation, amortization and
depletion), plus selling, general and administrative charges, treatment and
refining charges net of sales premiums; less the cost of purchased concentrates,
workers' participation and other miscellaneous charges, including royalty
charges, and the change in inventory levels; divided by total pounds of copper
produced by our own mines.

In our calculation of operating cash cost per pound of copper produced, we
exclude depreciation, amortization and depletion, which are considered non-cash
expenses. Exploration is considered a discretionary expenditure and is also
excluded. Workers' participation provisions are determined on the basis of
pre-tax earnings and are also excluded. Additional exclusions from operating
cash costs are items of a non-recurring nature and the mining royalty charge as
it is based on various calculations of taxable income, depending on which
jurisdiction, Peru or Mexico, is imposing the charge. We believe these
adjustments allow our management and stakeholders to more fully visualize our
controllable cash cost, which we believe is one of the lowest of all
copper-producing companies of similar size.

We define operating cash cost per pound of copper produced net of by-product
revenues as operating cash cost per pound of copper produced, as defined in the
previous paragraph, less by-product revenues and net revenue (loss) on sale of
metal purchased from third parties.

In our calculation of operating cash cost per pound of copper produced, net of
by-product revenues, we credit against our costs the revenues from the sale of
all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net
revenue (loss) on sale of metals purchased from third parties. We disclose this
measure including the by-product revenues in this way because we consider our
principal business to be the production and sale of copper. As part of our
copper production process, much of our by-products are recovered. These
by-products, as well as the processing of copper purchased from third parties,
are a supplemental part of our production process and their sales value
contribute to covering part of our incurred fixed costs. We believe that our
Company is viewed by the investment community as a copper company, and is
valued, in large part, by the investment community's view of the copper market
and our ability to produce copper at a reasonable cost.

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We believe that both of these measures are useful tools for our management and
our stakeholders. Our cash costs before by-product revenues allow us to monitor
our cost structure and address areas of concern within operating management. The
measure operating cash cost per pound of copper produced net of by-product
revenues is a common measure used in the copper industry and is a useful
management tool that allows us to track our performance and better allocate our
resources. This measure is also used in our investment project evaluation
process to determine a project's potential contribution to our operations, its
competitiveness and its relative strength in different price scenarios. The
expected contribution of by-products is generally a significant factor used by
the copper industry to determine whether to move forward or not in the
development of a new mining project. As the price of our by-product commodities
can have significant fluctuations from period to period, the value of its
contribution to our costs can be volatile.

Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three and six months ended June 30, 2022 and 2021:



              Operating cash cost per pound of copper produced (1)

              (In millions, except cost per pound and percentages)

                                 Three Months Ended June 30,                            Six Months Ended June 30,
                         2022         2021       Variance     % Change         2022          2021       Variance     % Change
Total operating
cash cost before
by­product revenues    $   951.2    $   817.9    $   133.3        16.3 %

$ 1,788.9 $ 1,589.3 $ 199.6 12.6 % Total by­product revenues

$ (465.3)    $ (521.1)    $    55.8      (10.7) %    $ (1,048.8)    $ (914.8)    $ (134.0)        14.6 %
Total operating
cash cost net of
by­product revenues    $   485.9    $   296.8    $   189.1        63.7 %

$ 740.1 $ 674.5 $ 65.6 9.7 % Total pounds of copper produced(2) 442.9 507.7 (64.8) (12.8) %


      900.7      1,018.5      (117.8)      (11.6) %
Operating cash cost
per pound before
by­product revenues    $    2.15    $    1.61    $    0.54        33.5 %    $      1.99    $    1.56    $    0.43        27.6 %
By­products per

pound revenues         $  (1.05)    $  (1.02)    $  (0.03)         2.9 %   
$    (1.16)    $  (0.90)    $  (0.26)        28.9 %
Operating cash cost
per pound net of
by­product revenues    $    1.10    $    0.59    $    0.51        86.4 %    $      0.82    $    0.66    $    0.16        24.2 %

(1) These are non-GAAP measures. Please see page 59 for reconciliation to GAAP

measure.

(2) Net of metallurgical losses.




As seen in the table above, our per pound cash cost before by-product revenues
in the second quarter of 2022 was 33.5% higher than in the same period of 2021.
This increase was mainly attributable to an increase in production costs and the

unit cost effect generated by a 12.1% decrease in pounds of copper produced. Our cash cost per pound net of by-product

revenue for the second quarter of 2022 increased 86.4% when compared to the same period of 2021. This was mainly

attributable to a significant decrease in by-product revenues.

For the six months ended June 30, 2022, our per pound cash cost before by-product revenues was 27.6% higher than in

the same period of 2021. This increase was mainly driven by an increase in production costs and the unit cost effect



generated by a 11.6% decrease in pounds of copper produced. The operating cash
cost per pound of copper net of by product revenue was $0.82 in the six months
ended June 30, 2022. This represented an increase of 24.2 % compared to

the $0.66 reported in the same period of 2021. These results were mainly due to
higher production costs and the unit cost effect generated by a 11.6% decrease
in pounds of copper produced.

Metal Prices: The profitability of our operations is dependent on, and our
financial performance is significantly affected by, the international market
prices for the products we produce, and for copper, molybdenum, zinc and silver
in particular.

We are subject to market risks arising from the volatility of copper and other
metal prices. For the remaining six months of 2022, assuming that expected metal
production and sales are achieved, tax rates remain unchanged and no effects are

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generated by potential hedging programs, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:



                                         Copper      Molybdenum       Zinc

Silver


Change in metal prices (per pound
except silver-per ounce)               $     0.10    $      1.00    $    0.10    $     1.00
Change in net earnings (in
millions)                              $     59.0    $      16.3    $     7.5    $      5.8
Business Segments: We view our Company as having three reportable segments and
manage it on the basis of these segments. These segments are (1) our Peruvian
operations, (2) our Mexican open-pit operations and (3) our Mexican underground
operations, known as our IMMSA unit. Our Peruvian operations include the
Toquepala and Cuajone mine complexes and the smelting and refining plants,
industrial railroad and port facilities that service both mines. The Peruvian
operations produce copper, with significant by-product production of molybdenum,
silver and other material. Our Mexican open-pit operations include La Caridad
and Buenavista mine complexes, the smelting and refining plants and support
facilities, which service both mines. The Mexican open pit operations produce
copper, with significant by-product production of molybdenum, silver and other
material. Our IMMSA unit includes five underground mines that produce zinc,
lead, copper, silver and gold, and several industrial processing facilities for
zinc, copper and silver.

Segment information is included in our review of "Results of Operations" in this item and also in Note 14 "Segment and Related Information" of our condensed consolidated financial statements.



Inflation and Exchange Rate Effect of the Peruvian Sol and the Mexican Peso: Our
functional currency is the U.S. dollar and our revenues are primarily
denominated in U.S. dollars. Significant portions of our operating costs are
denominated in Peruvian sol and Mexican pesos. Accordingly, when inflation and
currency devaluation/appreciation of the Peruvian currency and Mexican currency
occur, our operating results can be affected. In recent years, we believe such
changes have not had a material effect on our results and financial position.
Please see Item 3. "Quantitative and Qualitative Disclosures about Market Risk"
for more detailed information.

Capital Investment Programs: We made capital investments of $429.7 million in
the six months ended June 30, 2022, compared to $452.4 million in the same
period of 2021. In general, the capital investments and investment projects
described below are intended to increase production, decrease costs or address
social and environmental commitments.

Set forth below are descriptions of some of our current expected capital
investment programs. We expect to meet the cash requirements for these projects
by utilizing cash on hand; internally generated funds and additional external
financing, including funding received in September 2019. All capital spending
plans will continue to be reviewed and adjusted to respond to changes in the
economy and market conditions.

Projects in Mexico:



Buenavista Zinc - Sonora: This project is located within the Buenavista facility
and includes the development of a new concentrator to produce approximately
100,000 tonnes of zinc and 20,000 tonnes of copper per year. We have completed
the engineering study. In order to continue with the project, stronger
preventive measures to combat COVID-19 have been put in place. Procurement has
progressed 99% and all the main equipment is on site. Construction site works
are in progress. The project has all the necessary permits and the capital
budget is $413 million. We expect to initiate operations in the second half of
2023. As of June 30, 2022, we had invested $264.9 million in this project. When
completed, we anticipate that this new facility will double the Company's zinc
production capacity and will provide 490 direct jobs and 1,470 indirect jobs.

Pilares - Sonora: Located six kilometers from La Caridad, this project consists
of an open-pit mine operation with an annual production capacity of 35,000
tonnes of copper in concentrate. A new 25-meter wide off-road facility for
mining trucks has been built and will be used to transport the ore from the pit
to the primary crushers at the La Caridad copper concentrator. This project will
significantly improve the overall mineral ore grade (combining the 0.78%
expected from Pilares with 0.34% from La Caridad). The budget for Pilares is
$159 million of which we have invested $80.9 million as

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of June 30, 2022. The project has obtained all permits and licenses required and we expect to begin production in the last quarter of 2022.

El Pilar - Sonora: This low-capital intensity copper greenfield project is
strategically located in Sonora, Mexico, approximately 45 kilometers from our
Buenavista mine. Its copper oxide mineralization contains estimated proven and
probable reserves of 317 million tonnes of ore with an average copper grade of
0.249%. We anticipate that El Pilar will operate as a conventional open-pit mine
with an annual production capacity of 36,000 tonnes of copper cathodes. This
operation will use highly cost efficient and environmentally friendly SX-EW
technology. We estimate a development investment of approximately $310 million.
The results from experimental pads in leaching process have confirmed adequate
levels of copper recovery. We expect this project to start production in 2024
with an expected mine life of 13 years. The basic engineering study is finished
and the Company continues developing the project and site environmental
activities.

Lime plant - Sonora: As part of our cost improvement projects, we are building a
new lime plant with a production capacity of 600 metric tonnes per day, which
will be the largest lime plant of Mexico. This facility will allow us to reduce
to approximately 50% our current lime cost at our Mexican operations. The total
budget for the plant is $63.1 million, of which we have spent $54.0 million as
of June 30, 2022. The furnace of the plant started operations in the second
quarter and we expect to reach full capacity in the third quarter of 2022.

Projects in Peru:


Quebrada Honda dam expansion - Tacna: This project aims to enlarge the main and
lateral dams in Quebrada Honda and includes the relocation and repowered of some
facilities due to dam growth and implementation of other facilities for water
recovery, among other factors. As of June 30, 2022, pre-commissioning and
commissioning activities are in progress with work on three fronts. This project
has a total budget of $179.4 million, of which we have invested $152.9 million
as of June 30, 2022.

Tia Maria - Arequipa: On July 8, 2019, we were granted the construction permit
for this 120,000 tonne annual SX-EW copper greenfield project with a total
capital budget of $1,400 million. The Government awarded the permit after
completing an exhaustive review process, complying with all established
regulatory requirements and addressing all observations raised. The challenges
surrounding the construction permit were overcome when on October 30, 2019, the
Mining Council of the Peruvian Ministry of Energy and Mines ratified the
construction permit for the Tia Maria project.

The Company has been consistently working to promote the welfare of the Islay
province population. As part of these efforts, we have implemented successful
social programs in education, healthcare and productive development to improve
the quality-of-life in the region. We have also promoted agricultural and
livestock activities in the Tambo Valley and supported growth in manufacturing,
fishing and tourism in Islay.

In 2021, SPCC fortified its relation with the regional government and
successfully overcame its opposition to project initiation. This new consensus
was reflected in an agreement for Social Investment for Taxes for projects
relative to health facilities and roads. Our efforts to ensure the current and
long-term welfare of the population in the area of influence of the Tia Maria
project were recognized by several local associations, which sent letters to the
National Government to request project initiation.

We reiterate our view that the initiation of construction activities at Tia
Maria will generate significant economic opportunities for the Islay province
and the Arequipa region. During the construction and operation phase, we will
make it a priority to hire local labor to fill the 9,000 jobs that we expect to
generate during Tia Maria's construction phase. Additionally, from day one of
our operations, we will generate significant contributions to revenues in the
Arequipa region.

The Company has made an offer to the Peruvian government to build the Paltiture
dam, instead of a desalinization plant originally proposed, to provide water to
both the project and the community. The dam will have a total capacity of 73
million cubic meters, of which the Company will use a maximum of 10 million
cubic meters. The remaining 63 million will be for community use. The dam, if
built, will require a much higher investment than the $100 million budget

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planned for the desalinization plant. If the offer is accepted, the Company
would take the appropriate steps to make the necessary adjustments to the
project plan and update the required permits for its construction. Nevertheless,
we believe that by increasing the water supply, it will generate more palpable
benefits for local communities.

We expect the Peruvian government to continue to acknowledge the significant
progress the project has made on the social front and the important
contributions that Tia Maria will generate for Peru´s economy and, consequently,
take the necessary steps to provide SCC with adequate support to initiate
construction.

This greenfield project, located in Arequipa, Peru, will use state of the art
SX-EW technology with the highest international environmental standards. SX-EW
facilities are the most environmentally friendly in the industry due to their
technical process with no emissions released into the atmosphere.

Potential projects



We have a number of other projects that we may develop in the future. We
continuously evaluate new projects on the basis of our long-term corporate
objectives, expected return on investment, environmental concerns, required
investment and estimated production, among other considerations. All capital
spending plans will continue to be reviewed and adjusted to respond to changes
in the economy and market conditions.

El Arco - Baja California: This is a world-class copper deposit located in the
central part of the Baja California peninsula with ore reserves of over 1,230
million tonnes with an average ore grade of 0.40% and 141 million tonnes of
leach material with an ore grade of 0.27%. The project includes an open-pit mine
with a combined concentrator and SX-EW operations. Annual production is expected
to total 190,000 tonnes of copper and 105,000 ounces of gold. The Company has
started the baseline study and is reviewing the basic engineering analysis to
request the environmental impact permit. Several years back, we began to acquire
the rights to all relevant mining concessions in the area; this process was
completed in 2020.

Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a
copper and molybdenum porphyry deposit. Current estimates of indicated copper
mineral resources are 98 million tonnes of oxides with a copper content of

0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. Los
Chancas project envisions an open-pit mine with a combined operation of
concentrator and SX-EW processes to produce 130,000 tonnes of copper and 7,500
tonnes of molybdenum anually. The estimated capital investment is $2,600 million
and the project is expected to be in operation in 2027. In the first quarter of
2022, we continued to engage in social and environmental improvements for the
local communities and we worked on the project´s environmental impact
assessment.

In February 2022, a group of illegal miners occupied part of the lands of the
project and started to produce copper with a low scale artisan process. On May
31, 2022, a group of people attacked the project mining camp, causing a fire and
completely destroyed the installations. There were no fatalities to regret. As
of today, these illegal miners are working in the zone. The Company expects
strong action from the authorities to restore the lands to the Company so that
it can continue to develop the project.

Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a
contract and made an initial payment of $12.5 million for the acquisition of the
Michiquillay project in Cajamarca, Peru. In June 2021, the Company paid an
additional $12.5 million to acquire the project. The Company has created a
multidisciplinary management team to plan the development of this project. As
part of this plan, the Company has established venues of contact with the local
and regional authorities and communities to promote programs for the sustainable
development in the area. In 2021, the Company signed Social Agreements with the
Michiquillay and La Encañada communities. Additionally, in October 2021 the
Peruvian Ministry of Energy and Mines approved the semi-detailed Environmental
Impact Study for the project. At the end of June 2022, the Company has all the
required permits for exploration activities. These events are important steps
that will allow Southern Copper to initiate an in-depth exploration program in
the third quarter of 2022.

The Social Agreements with the Michiquillay and the Encañada communities represent an opportunity to improve the quality of life of the residents of those communities via our strong social programs and backed by a solid framework for technical work at the project level. The main commitments signed by the Company in the social agreements are related



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to providing support for agricultural and livestock activities, economic development of local initiatives, and social programs in favor of education, water management, waste disposal, and healthcare for vulnerable groups.

In June, 2022, the Company notified the Peruvian authorities the end of the suspension period and the start of the pre-operational period that lasts 12 years and it can be extended for three more years. The start of the pre-operational

period does not imply a payment obligation. The Company must support an investment of $20 million in the next five

years which includes exploration activities as well as the development of social programs.



Michiquillay is a world class mining project with inferred mineral resources of
2,288 million tonnes with an estimated copper grade of 0.43%. When developed, we
expect Michiquillay to produce 225,000 tonnes of copper per year (along with
by-products of molybdenum, gold and silver) for an initial mine life of more
than 25 years, at a competitive cash-cost. We estimate an investment of
approximately $2.5 billion will be required and expect production start-up by
2028 and that Michiquillay will become one of Peru´s largest copper mines. The
project will create significant business opportunities in the Cajamarca region;
generate new jobs for the local communities and contribute with taxes and
royalties to the local, regional and national governments.

The above information is based on estimates only. We cannot make any assurances
that we will undertake any of these projects or that the information noted is
accurate.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")



In line with best practice, the Board of Directors has approved the formation of
a new Sustainability Committee chaired by an independent director. The purpose
of this Committee is to support the Board of Directors of Southern Copper
Corporation in developing and monitoring the Company's compliance with on-going
commitments to the environment, health and safety, communities, human rights,
and corporate governance. This is a significant step in our pledge to a robust
and strong ESG performance.

Quoting the Chairman of our Board of Directors in the letter that accompanies
the 2021 Sustainable Development Report of our holding, Grupo Mexico: "A
business model focused on responsible and transparent management in the social,
economic and environmental spheres are essential to guarantee sustainable
development." S&P Global has recognized SCC's sustainability efforts by
including it in a new index, S&P/BVL Peru General ESG, as of April of this year.
This index is the first of its kind in the Peruvian market and recognizes a
total of 17 companies that meet high standards for environmental, social and
governance management. In light of its improvements in the realm of ESG, S&P has
also upgraded the Company's Sustainability Assessment, which rose from 50/100
points in 2020 to 61/100 in 2021 ( 22% increase). These results led to our
inclusion in the Dow Jones Sustainability index for the MILA region in 2019 and
we have also been included in the 2022 Sustainability Yearbook. We aim to
improve our sustainability management and performance to ensure that we maintain
and continuously improve our sustainability ratings.

Certification of our environmental and occupational health and safety management
systems allows the Company to reinforce a preventive culture that is aligned
with best international practices. We continue to make progress in our quest to
achieve ISO 45001 and 14001 certifications. During the second quarter of 2022,
the Maritime Terminal of Guaymas, Mexico received ISO 45001 certification and
the Charcas unit in Mexico became the first of our underground mines to obtain
ISO 14001 certification.

Given the importance of water for our operations and in the broader perspective
of climate change, the Company recently appointed a Water Resources Director at
the executive level, whose main function will be to coordinate the actions
needed to promote water management at all our operations and ensure our place as
a responsible partner in the regional management of this valuable resource.

SCC seeks sustainability by managing different fronts. The Metallurgical Complex
in Sonora, where we smelt and refine material mined from the region, was
recognized in the ranking of the 10 Best Places to Work for Women. With this
recognition, this plant has consolidated its position as the employer of choice
for the best professionals in the country and has strengthened an organizational
culture based on safety, predictability and employee trust. This industrial
complex was also given the 2021 National Export Award in the category of Large
Industrial Exporting Companies for its

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contribution to foreign trade and international business in the country. This
distinction recognizes SCC's responsible production of essential raw materials;
environmental preservation efforts; and the economic benefits and support it
provides to bolster the well-being of workers and their families.

In Peru, the Prime Minister joined us for the inauguration of the Cularjahuira
dam ($11.5 million), which was the fruit of joint investment between the
Company, government authorities and the highland community of Camilaca. This
project will help strengthen agricultural activities in the province of
Candarave (near our Toquepala operations) and will be complemented by work on a
new Callazas dam ($35 million), which SCC hopes to finance through the "Social
Investment for Taxes" (obras por impuestos) mechanism. These efforts are
evolving in a context marked by record-highs for the Company's tax contributions
to the regional governments of Moquegua and Tacna in 2021.

ACCOUNTING ESTIMATES



Our discussion and analysis of financial condition and results of operations, as
well as quantitative and qualitative disclosures about market risks, are based
upon our consolidated financial statements, which have been prepared in
accordance with U.S. GAAP. Preparation of these consolidated financial
statements requires our management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. We make our best
estimate of the ultimate outcome for these items based on historical trends and
other information available when the financial statements are prepared. Changes
in estimates are recognized in accordance with the accounting rules for the
estimate, which is typically in the period when new information becomes
available to management. Areas where the nature of the estimate makes it
reasonably possible that actual results could materially differ from amounts
estimated include: ore reserves, revenue recognition, ore stockpiles on leach
pads and related amortization, estimated impairment of assets, asset retirement
obligations, determination of discount rates related to the financial lease
liabilities, classification of operating leases versus financial leases,
valuation allowances for deferred tax assets, unrecognized tax benefits and fair
value of financial instruments. We base our estimates on historical experience
and on various other assumptions that we believe reasonable under the
circumstances. Actual results may differ from these estimates under different
assumptions or conditions.

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