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 third quarter of 2022, approximately 77.8% of our ? revenue came from the sale of copper; 8.9% from molybdenum; 4.1% from silver;

3.8% from zinc; and 5.4% from various other products, including gold, sulfuric

acid, and other materials.

Copper: In the third quarter of 2022, the LME copper price decreased from an ? average of $4.25 per pound in the third quarter of 2021 to $3.51 (-17.4%),

reflecting concerns about a simultaneous recession in the U.S., Europe and

China due to the following factors:

? On-going interest rate hikes by the FED, the ECB and other relevant central

banks to control inflation.

? A slowdown in the Chinese economy due to Covid-19 restrictions and a weak real

estate market.

? The impact of energy prices on consumer´s demand.

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. This assumes a

growth in demand of about 2.0% in 2022.

Even though we expect the supply will grow 3.5-4.0% next year, mainly due to

? new projects (as the Quellaveco one, in Peru), there is uncertainty regarding

future production growth in Chile and Peru, which together represent about 40%

of the global supply.

Major warehouses have reported a reduction in copper inventories, which stood

? at 247,000 tonnes as of September 30. These low inventories represent an

extremely low level of consumption.




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.

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Molybdenum: Represented 9.9% of our sales in the third quarter of 2022 and is ? currently our most important by-product. Molybdenum prices averaged $16.00 per

pound in the third quarter of 2022, compared to $18.43 in the same period of

2021. This represented a 13.2% price decrease.

Regarding this by-product, we believe that prices will be supported by lower inventory levels and a market deficit for this year.


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 4.1% of our sales in the third quarter of 2022. We believe ? that the prices for silver will be supported by intensive level of industrial

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

economic uncertainty.

Zinc: Represented 4.7% of our sales in the third quarter of 2022, with an ? average price of $1.48 per pound in the quarter, a 8.8% increase from the third


  quarter or 2021. Zinc is currently our third by-product.


  Production: For 2022, we expect production to reach approximately 900,000

tonnes of copper, which represents a decrease of 3% compared to our 2022 plan. ? We expect our copper production to bounce back in 2023 and reach 926,100 tonnes

of production 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 25,400 tonnes of molybdenum, which represents a decrease of 16.2% over our 2021 production levels. In 2022, we expect to produce 18.9 million ounces of silver, in line with our 2021 production level. Additionally, we expect to produce 63,300 tonnes of zinc from our mines.

Capital Investments: In the first nine months of 2022, we spent $657.6 million

on capital investments; this represented 37.9% of net income and a decrease of ? 5.4% compared to the amount registered for the same period in 2021. We continue

to advance our projects, including the Buenavista Zinc, El Pilar and Pilares

projects, which have registered good progress.

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 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.

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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 ILLEGAL BLOCKAGE

After the Company resumed operations at our Cuajone facilities in April, a plan
to gradually scale up production to recover volume losses was implemented. At
this point, we estimate that our Peruvian operations will reach 94% of the 2022
production plan of 360,900 tonnes.

On October 17, the Peruvian government extended the state of emergency in the Moquegua region for 60 more days.

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.

The company has experienced increases in costs as a result of the world crisis
and the Russian-Ukrainian war, mainly increments in energy, fuel, explosives and
other operating material costs. The increase is due to the higher market share
of Russia in these products. The company has taken initiatives searching for
alternative suppliers to reduce this effect. As of September 30, 2022, these
events impacted our production costs and financial results as it is disclosed in
this report. 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

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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 nine months ended September 30, 2022 and 2021 (in millions, except copper price, percentages and per share amounts):



                            Three months ended September 30,

Nine months ended September 30,


                     2022         2021       Variance     % Change        2022         2021        Variance      % Change
Copper price
LME                     3.51         4.25       (0.74)      (17.4) %         4.12         4.17         (0.05)       (1.2) %
Pounds of
copper sold            518.6        506.2         12.4         2.4 %      1,407.7      1,550.6        (142.9)       (9.2) %
Net sales          $ 2,156.9    $ 2,680.9    $ (524.0)      (19.5) %    $ 7,227.6    $ 8,110.4    $   (882.8)      (10.9) %
Operating
income             $   787.2    $ 1,507.8    $ (720.6)      (47.8) %    $ 3,065.7    $ 4,534.6    $ (1,468.9)      (32.4) %
Net income
attributable to
SCC                $   519.0    $   867.6    $ (348.6)      (40.2) %    $ 1,736.1    $ 2,564.2    $   (828.1)      (32.3) %
Earnings per
share              $    0.67    $    1.12    $  (0.45)      (40.2) %    $    2.25    $    3.32    $    (1.07)      (32.2) %
Dividends per
share              $    0.75    $    0.90    $  (0.15)      (16.7) %    $

3.00 $ 2.20 $ 0.80 36.4 %




Net sales in the third quarter of 2022 were 19.5% lower than in the same period
of 2021. This decrease was driven by a drop in average metal prices for copper
(-17.4% - LME), molybdenum (-13.2%) and silver (-21.3%) and by a decrease in the
sales volumes of molybdenum (-24.2%) and zinc (-11.4%). This effect was slightly
offset by higher prices for zinc (+8.8%); and by an increase in the sales
volumes of copper (+2.4%) and silver (+8.3%).

Net income attributable to SCC in the third quarter of 2022 was 40.2% lower than
in the same period of 2021. This decrease was mainly attributable to a drop in
average metal prices, a decrease in sales volume of some of our by-products and
higher operating costs (+16.8%).

Net sales in the first nine months of 2022 were 10.9% lower than in the same
period of 2021, due to a decrease in the sales volume of copper (-9.2%),
molybdenum (-12.5%) and silver (-4.8%); and to a decrease in average metal
prices for copper (-1.2%) and silver (-14.9%). These negative variances were
slightly offset by an increase in sales volume of zinc (+2.2%) and by higher
average metal prices for molybdenum (+22.5%) and zinc (+26.0%).

Net income attributable to SCC in the first nine months of 2022 was 32.3% lower than in the same period of 2021. This decrease was mainly attributable to a decrease in sales and a 16.4% increase in operating costs.

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



                        Three months ended September 30,

Nine months ended September 30,


                      2022      2021     Variance    % Change       2022       2021      Variance    % Change
Copper (in
million pounds)       508.2     540.5      (32.3)       (6.0) %    1,440.6    1,588.8     (148.2)       (9.3) %
Molybdenum (in
million pounds)        13.4      17.9       (4.5)      (24.8) %       43.0       49.1       (6.1)      (12.5) %
Silver (in
million ounces)         4.9       4.8         0.1         0.6 %       13.6       14.4       (0.8)       (5.8) %
Zinc (in million
pounds)                32.8      37.2       (4.4)      (11.9) %       98.7      111.3      (12.6)      (11.3) %


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



                        Three Months Ended September 30,                Nine Months Ended September 30,
Copper (in
million pounds):      2022      2021     Variance    % Change       2022   

   2021      Variance    % Change
Toquepala             109.4     130.4      (21.0)      (16.1) %      320.2      389.0      (68.8)      (17.7) %
Cuajone                92.7      98.8       (6.1)       (6.1) %      215.2      279.5      (64.3)      (23.0) %
La Caridad             60.8      68.5       (7.7)      (11.3) %      183.7      213.8      (30.1)      (14.0) %
Buenavista            239.7     237.8         1.9         0.8 %      706.3      691.6        14.7         2.1 %
IMMSA                   5.6       5.0         0.6        13.2 %       15.2       14.9         0.3         1.6 %
Total mined
copper                508.2     540.5      (32.3)       (6.0) %    1,440.6    1,588.8     (148.2)       (9.3) %


Third quarter: Mined copper production in the third quarter of 2022 fell 6.0% to
508.2 million pounds compared to 540.5 million pounds in the third quarter of
2021. This was mainly attributable to a decrease in copper production at our
Toquepala (-16.1%), La Caridad (-11.3%) and Cuajone (-6.1%) operations, which
was in turn driven by lower ore grades and recoveries. This was slightly offset
by an increase of production at our Buenavista (+0.8%) and IMMSA (+13.2%) mines.

Molybdenum production decreased 24.8% in the third quarter of 2022 compared to
the levels registered in the third quarter of 2021. This was attributable to a
decrease in production at our Toquepala (-55.7%), La Caridad (-10.0%) and
Buenavista (-6.4%) mines, which was mainly driven by a drop in ore grades and
recoveries. This effect was partially offset by an increase in production at our
Cuajone (+2.4%) mine due to higher ore grades.

Silver mine production increased 0.6% in the third quarter of 2022, compared
with the same period of 2021, this was mainly attributable to an increase in
production at our Buenavista (+20.2%) mine and at the IMMSA (+0.9%) unit. This
was offset by lower production at our Toquepala (18.7%), Cuajone (-10.4%) and La
Caridad (-1.9%) mines.

Zinc production decreased 11.9% in the third quarter of 2022 compared with the same period in 2021.



This decrease was mainly attributable to a drop in production at the Charcas and
Santa Barbara units, which was attributable to a decrease in processed material
and lower average zinc grades.

Santa Barbara Mine: In a collective action with the authorities of the State of
Chihuahua, Mexico, it has been possible to close 42 illegal accesses to the
mine, thus preventing the theft of mineral in stone. From September 24 to
September 30, the authorities seized seven people during the crime. These acts
did not constitute a permanent appropriation of the buildings or surfaces owned
by IMMSA nor stop the ordinary course of production.

Nine months: Mined copper production in the first nine months of 2022 decreased
9.3% to 1,440.6 million pounds compared to 1,588.8 million pounds in the same
period of 2021. This decrease was mainly attributable to the Cuajone mine
stoppage (-23.0%) and to a drop in production at our Toquepala (-17.7%) and La
Caridad (-14.0%) mines due to lower grades. This effect was slightly offset by
an increase in production at Buenavista (+2.1%) and IMMSA (+1.6%) operations.

Molybdenum production decreased 12.5% in the first nine months of 2022 compared
to the same period in 2021; this was mainly due to lower production at our
Cuajone (-21.4%), Toquepala (-21.1%) and La Caridad (-8.2%) mines, which was
partially offset by higher production at Buenavista (+3.4%) mine.

Silver mine production decreased 5.8% in the first nine months of 2022; this was
principally due to lower production at our Toquepala (-23.6%), Cuajone (-22.0%),
La Caridad (-6.8%) and IMMSA (-2.0%) operations, which was partially offset by
higher production at Buenavista (+9.1%) mine.

Zinc production decreased 11.3% in the first nine months of 2022 due to a drop in production at our Charcas, San Martin and Santa Barbara mines, which was principally due to lower grades.



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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
58. 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.

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.

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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 nine months ended September 30, 2022 and 2021:



              Operating cash cost per pound of copper produced (1)

              (In millions, except cost per pound and percentages)

                              Three Months Ended September 30,                       Nine Months Ended September 30,
                        2022         2021       Variance     % Change         2022           2021        Variance     % Change

Total operating
cash cost before
by­product
revenues              $ 1,005.6    $   847.1    $   158.5        18.7 %    $   2,794.5    $   2,436.4    $   358.1        14.7 %
Total by­product
revenues              $ (501.1)    $ (543.4)    $    42.3       (7.8) %    $ (1,549.9)    $ (1,458.2)    $  (91.7)         6.3 %
Total operating
cash cost net of
by­product
revenues              $   504.5    $   303.7    $   200.8        66.1 %    $   1,244.6    $     978.2    $   266.4        27.2 %
Total pounds of
copper produced(2)        487.8        522.5       (34.7)       (6.7) %        1,388.5        1,541.0      (152.5)       (9.9) %
Operating cash
cost per pound
before by­product
revenues              $    2.06    $    1.62    $    0.44        27.2 %    $      2.01    $      1.58    $    0.43        27.3 %
By­products per
pound revenues        $  (1.03)    $  (1.04)    $    0.01       (1.2) %    $    (1.11)    $    (0.94)    $  (0.17)        18.0 %
Operating cash
cost per pound net
of by­product
revenues              $    1.03    $    0.58    $    0.45        77.9 %    $      0.90    $      0.64    $    0.26        41.1 %

(1) These are non-GAAP measures. Please see page 58 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 third quarter of 2022 was 27.2% 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 6.7% decrease in pounds of copper produced. Our
cash cost per pound net of by-product revenue for the third quarter of 2022
increased 77.9% when compared to the same period of 2021. This was mainly due to
higher costs of fuel, energy and explosives, lower production explained above
and a decrease in all our main by-product revenues except sulfuric acid.

For the nine months ended September 30, 2022, our per pound cash cost before
by-product revenues was 27.3% 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 9.9% decrease in pounds of copper produced. The operating
cash cost per pound of copper net of by product revenue was $0.90 in the nine
months ended September 30, 2022. This represented an increase of 41.1% compared
to the $0.64 reported in the same period of 2021. These results were mainly due
to higher production costs and the unit cost effect generated by a 9.9% decrease
in pounds of copper produced partially offset by an increase of 18% in
by-product revenue.

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 three months of 2022, assuming that expected
metal production and sales are achieved, tax rates remain unchanged and no
effects are 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)       $     31.1    $       7.8    $  

  3.7    $      2.9


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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 $657.6 million in
the nine months ended September 30, 2022, compared to $695.5 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. 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. All the main equipment is on site and construction site
works are in progress. The project has all the necessary permits and the capital
budget is $413 million. When completed, this new facility will double the
Company's zinc production capacity and will provide 490 direct jobs and 1,470
indirect jobs. We expect to initiate operations in the second half of 2023. As
of September 30, 2022, we have invested $292.4 million in this project, where
physical completion is at 83%.

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 0.29% from La Caridad). The budget for Pilares is
$159 million. As of September 30, 2022, the project was 95% complete and has
obtained all permits and licenses required. Pilares has initiated operations and
is currently mining copper oxides and mineral to be processed.

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. The budget for El Pilar is $310 million. We expect this project to
start production in 2024 with an expected mine life of 13 years. The results
from

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experimental pads in leaching process have confirmed adequate levels of copper
recovery. The basic engineering study is finished and the Company continues
developing the project and engage in onsite environmental activities. The SX-EW
plant EPCM project has been awarded to a contractor and has started.

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 $65.5 million, of which we have invested $57.7 million
as of September 30, 2022. The furnace of the plant started operations in the
second quarter, complying with the performance tests.

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 September 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 $155.4 million
as of September 30, 2022.

Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will
use state of the art SX-EW technology with the highest international
environmental standards to produce 120,000 tonnes of SX- EW copper cathodes per
year. The estimated capital budget for the project is $1.4 billion.

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.

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. Given the current Peruvian economic situation, it is
crucial to move ahead on projects that will stimulate a sustainable growth
cycle. 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.

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 average 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 completed the environmental impact assessment, which will
be filed with the authorities shortly.

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%. The 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 2022, we continued to
engage in social and environmental improvements for the local communities and
worked on the project´s environmental impact assessment.

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In February 2022, a group of illegal miners occupied a portion of the project's
lands and began to produce copper through a small-scale artisanal process. On
May 31, 2022, a group of people attacked the project mining camp causing a fire,
which completely destroyed the installations. As of September 30, 2022 part of
the project´s land continued to be occupied by illegal miners, some of whom have
irregularly registered their stakes in the "Integral Registry of Mining
Formalization" (REINFO). The Company has filed criminal complaints and other
legal remedies, which have annulled the claims of 43 illegal miners while 32
cases remain open.

Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a
contract for the acquisition of the Michiquillay project in Cajamarca, Peru.
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 and at a competitive cash-cost. We estimate an investment of
approximately $2.5 billion will be required and expect production start-up by
2029. Michiquillay will become one of Peru´s largest copper mines and will
create significant business opportunities in the Cajamarca region; generate new
jobs for the local communities; and contribute taxes and royalties to the local,
regional and national governments.

In 2021, the Company signed Social Agreements with the Michiquillay and the
Encañada Communities. In addition, on October 1, 2021, the Peruvian Ministry of
Energy and Mines approved the semi-detailed Environmental Impact Study for the
project. These events will allow Southern Copper to initiate an in-depth
exploration program in November 2022.

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")


At Southern Copper, we have strengthened governance relative to sustainable
development. The Sustainable Development Committee, which is presided by an
independent member of the board, held its first session on October 14, 2022.
During this encounter, our counselors reviewed our advances in terms of our main
performance indicators and gave us recommendations for the climate change
strategy we are building.

We adhered to the United Nations (UN) Global Compact. Through the affiliation of
AMC, our holding corporation,we reaffirm our commitment to align our policies,
strategies, and operations with the Ten Principles of the Global Compact,
addressing such issues as human rights, labor rights, the environment and
anti-corruption. Our adherence of the Global Compact will also position us to
further our contributions to the 2030 Agenda for Sustainable Development Goals
and the Paris Agreement.

Regarding climate change, we are actively collaborating with the International
Copper Association (ICA) to define the Global Copper Decarbonization Roadmap,
which is aligned with the Paris Agreement. The results of these efforts have
nurtured our medium and long-term objectives and will be published in the first
quarter of 2023.

Since ,occupational safety is a priority for the Company, the Mexican Government
awarded our Caridad metallurgical operation, located in Sonora, Mexico, the
distinction of "Safe and Healthy Workplace." The Company was recognized for its
voluntary program to implement strategies and actions to improve the safety,
health and wellbeing of our workers while bolstering the productivity and
quality of the workplace. The precious metals plant, which is part of the
aforementioned complex, received the Casco de Plata (Silver Helmet) in the
category "Smelters with less than 500 workers," which was awarded by the Mining
Chamber of Mexico in recognition of the fact that the plant was the best
performer on the occupational accident index for 2021.

A reduction in accident rates and a renewed drive to safeguard the health and
safety of our workers led MAPFRE-Peru to award our Toquepala unit with the
"Safety Excellence Award" in 2021. This distinction recognizes the effectiveness
of the Comprehensive System for Occupational Safety and Health Management that
has been implemented at this mine and throughout the organization.

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Thanks to our commitment to adequately use and preserve water resources, we have
begun building a wastewater treatment plant in Ilo, Moquegua, Peru. This project
will require an investment of $27 million and will benefit more than 77,000
people. SCC will operate and maintain this plant for the next 30 years to
prevent wastewater from being discharged into the ocean, which will protect the
marine ecosystem and public health. The President of the Council of Ministers,
Anibal Torres, inaugurated this facility by, remarking that the "mining sector
plays a fundamental role in the country's growth and that the synergy between
the State and the private sector is fueling the construction of emblematic
projects." Prime minister Torres was accompanied by the Minister of Energy and
Mines and the Minister of Housing, Construction and Sanitation at this event.

Regarding social impact, in the framework of the 14º International Mining Congress, which was held in Hermosillo, Sonora, Mexico, the Association of Mining Engineers, Metallurgists and Geologists of Mexico (Asociacion de Ingenieros de Minas, Metalurgistas y Geologos de México A.C.) bestowed on Grupo Mexico, the holding company of AMC, with an Award, in recognition of the corporation's efforts to generate more social impact in this state of Mexico.



More than 300 outstanding students will benefit from the construction of modern
infrastructure for the High-Performance School of Moquegua (Colegio de Alto
Rendimiento de Moquegua-COAR), which SCC will build through the Taxes for Works
mechanism, in conjunction with the Ministry of Education (MINEDU). The project's
first stone was laid at a well-attended ceremony. The facility will be completed
over a period of 18 months and will require an investment of $25 million. During
the ceremony, the Minister of Education, Rosendo Serna, praised the Company's
contribution to education: "We believe in investing in education and take the
struggle against the deep deficit of education infrastructure that seriously
affects our country. This task is enormous and lenghty. Therefore, we thank
Southern Peru for joining the fight to improve the educational conditions of
millions of children and young people throughout the country."

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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