Southern Copper : SCC reports results for first quarter 2021

RESULTS

FIRST QUARTER 2021

Investor Relations:

April 27, 2021

Raul JacobSouthern Copper Corporation (NYSE and BVL: SCCO) Victor Pedraglio

+[phone] www.southerncoppercorp.com

• 1Q21 net sales were $2,532.5 million, which represented a 47.3% increase over 1Q20's net sales of $1,719.7 million. Growth was mainly driven by significantly higher metal prices for copper (+50.4% - LME), silver (+55.8%) and zinc (+28.9%). Higher prices were slightly offset by lower sales volumes for copper (-4.5%) and zinc (-56.7%).
• 1Q21 net income was $763.8 million, a 255.6% increase over 1Q20 net income of $214.8 million. Net income margin in 1Q21 was 30.2% compared with 12.5% in 1Q20. These increases were mainly attributable to higher sales (+47.3%) and stable operating costs (-0.5%).
• 1Q21 adjusted EBITDA was $1,554.5 million, which represented an increase of 116.3% compared to 1Q20 adjusted EBITDA of $718.8 million. The adjusted EBITDA margin in 1Q21 was 61.4% compared with 41.8% in 1Q20. On a QoQ basis, adjusted EBITDA was 24.0% higher than in 4Q20.
• Copper production slightly decreased by 1.5% in 1Q21 when compared with 1Q20; this was mainly attributable to lower production at our Peruvian mines (-3.0%) and La Caridad mine (-1.8%) and driven by a decrease in ore grades. This was partially offset by an increase in production in our IMMSA operations (+9.5%) due to higher production at the San Martin mine (+52.8%).
• By-productproduction: Molybdenum production increased slightly by 0.2% in 1Q21 compared to 1Q20, which was mainly due to higher production our Peruvian mines (+10.1%) and partially offset by a decrease in production at Buenavista (-21.9%). Mined silver production decreased by 6.3% in 1Q21 compared with 1Q20, due to lower production at Buenavista (-13.4%) and IMMSA (-9.4%). Mined zinc production decreased 14.5% in 1Q21, compared with 1Q20 production, which was mainly attributable to lower production at the Charcas, Santa Barbara and San Martin mines.
• Operating cash cost per pound of copper, net of by-product revenues, was $0.74 in 1Q21, compared to $0.77 in 1Q20. This 3.9% decrease in cash cost was mainly the result of a significant increase in by-product revenues (+18.5%).
• In the first quarter of 2021, we spent $232.6 million on capital investments, which represented a 130.3% increase with regard to the same period in 2020 and accounted for 30.5% of net income.
• Dividends: On April 22, 2021, the Board of Directors authorized a dividend of $0.70 per share payable on May 25, 2021, to shareholders of record at the close of business on May 11, 2021.

		FIRST QUARTER 2021 RESULTS		SOUTHERN COPPER

German Larrea, Chairman of the Board, commenting on the Company´s progress and current circumstances, said: "Once again our quarterly results reflect the timely roll-out of our expansion programs and cost control improvements, which allow us to produce copper at a very competitive cash cost of $0.74 per pound of copper. This low cost has been obtained despite the fact that we have resumed maintenance work and other projects at all of our operations under a well- designed COVID 19 protocols that follow strict safety and hygiene measures to protect our workers."

We believe that the vaccination efforts, which have been carried out by the state of Sonora (Mexico), represent a very positive development. Through this endeavor, 100% of the medical personnel at our operations have been vaccinated. Similarly, 98% of the workers over the age of 60 in Cananea, and 100% of those in Nacozari, have also received a vaccine. This significant advance gives our personnel needed protection against the COVID-19 virus; provides peace of mind to both workers and their families; and allows the Company to begin normalizing operating levels at our installations.

Our Company is contributing to this effort by providing logistical support during the vaccination roll-out."

Key Financial Data

			1Q21			1Q20		Variance			4Q20		Variance
						$	%				$		%
	Sales	$	2,532.5		$1,719.7		$812.8	47.3%	$2,350.7		$181.8		7.7%
	Cost of sales		943.8		955.8		(12.0)	(1.3)%	1,048.5		(104.7)		(10.0)%
	Operating income		1,351.6		533.3		818.3	153.4%	1,066.4		285.2		26.7%
	Net income	$	763.8		$214.8		$549.0	255.6%	$	590.2		$173.6		29.4%
	Net income margin		30.2%		12.5%		17.7pp	141.6%			25.1%		5.1pp	20.3%
	Adjusted EBITDA		1,554.5		718.8		835.7	116.3%	1,254.1		300.4		24.0%
	Adjusted EBITDA margin		61.4%		41.8%		19.6pp	46.9%			53.3%		8.1pp	15.2%
	Income per share	$	0.99		$ 0.28		$ 0.71	253.6%	$	0.76		$ 0.23		30.3%
	Capital investments	$	232.6		$101.0		$ 131.6	130.3%			243.4		$ (10.8)		(4.4)%

Note: Figures in millions except per share amounts and %'s.

Capital Investments

Southern Copper's investment philosophy is not based on the outlook for copper prices but on the quality of the assets that we operate and develop. Throughout the years, our strong financial discipline has consistently allowed us to make on-going investments in our considerable asset portfolio.

The conditions generated by COVID-19 have led us to implement measures to reduce vulnerability at the project execution level. These measures, which are constantly under review, include enforcing social distance rules; strengthening sanitation efforts; and requiring quarantine periods for personnel. Some activities in the project execution stage, which are located in regions in Peru or Mexico where new cases of infection are on the rise, have experienced delays. Consequently, we expect some delays, albeit minimal, in the execution of our investment projects. Nevertheless, to date, delays primarily affect construction activities that require people to work in close physical proximity. All other engineering, procurement and construction activities that entail limited interaction between personnel are on schedule.

Peruvian Projects

Our current portfolio for approved projects in Peru totals $2.8 billion, $1.6 billion of which has already been invested. If we include the up-and-coming Michiquillay ($2.5 billion) and Los Chancas ($2.6 billion) projects, our total investment program in Peru reflects a commitment of $7.9 billion.

Tia Maria - Arequipa: Southern Copper 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

1Q21 www.southerncoppercorp.com

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		FIRST QUARTER 2021 RESULTS		SOUTHERN COPPER

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.

On January 7, 2021, the mayor of the Islay province (Arequipa, Peru) awarded a City Diploma to SPCC in recognition of the Company's efforts to assist the population of Islay during the COVID-19 pandemic. SPCC provided medical assistance, tests, oxygen, personal protection equipment and food stuffs to the population in the area of influence of the Tia Maria project.

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. During the construction and operation phase, we will make it a priority to hire local labor to fill the 9,000 jobs (3,600 direct and 5,400 indirect) that we expect to generate during Tia Maria's construction phase. When operating, we expect Tia Maria to directly employ 600 workers and indirectly provide jobs for another 4,200. Additionally, from day one of our operations, we will generate significant contributions to revenues in the Arequipa region via royalties and taxes.

We expect the Peruvian government 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.

Mexican Projects

Buenavista Zinc - Sonora: This project is located within the Buenavista facility and includes the development of a new concentrator to produce approximately 100,000 tons of zinc and 20,000 tons of copper per year. We have completed the basic engineering study and the detailed engineering study is 89% complete. In order to continue with the project, stronger preventive measures to combat COVID-19 have been put in place. Purchase orders have been placed for major equipment, some of which are currently being manufactured. As part of this process, the mill manufacturing process has been completed and the respective elements are being shipped or are already at the project site. The project has all the necessary permits and the capital budget is $413 million. We expect to initiate operations in 2023. When completed, this new facility will double the Company's zinc production capacity and provide 490 direct jobs and 1,470 indirect jobs.

Pilares - Sonora: Located 6 kilometers from La Caridad, this project consists of an open-pit mine operation with an annual production capacity of 35,000 tons 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 the 0.34% from La Caridad). The budget for Pilares is $159 million and we expect the project to begin production in the 1Q22.

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 281 million tons of ore with an average copper grade of 0.301%. We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000 tons 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 the project to start production in 2023 and the mine life is expected to be 13 years. The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery. The Company has started the project basic engineering and site species collection.

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 2.4 billion tons with an ore grade of 0.422%; 0.3 billion tons of leach material with an ore grade of 0.288%; and 0.11 grams of gold per ton. The project includes an open-pit mine combining concentrator and SX-EW operations. Annual production is expected to situate at 190,000 tons of copper and 105,000 ounces of gold with an estimated capital budget of $2.9 billion. The Company has started the baseline study and is reviewing the basic engineering analysis to request the environmental impact permit. We have had the corresponding mining concessions for several years now, and during 2020 we finished acquiring all the land needed.

1Q21 www.southerncoppercorp.com

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		FIRST QUARTER 2021 RESULTS		SOUTHERN COPPER

Environmental, Social & Governance (ESG) Investment

SCC is committed to improving its ESG record by adopting best practices. In this regard, the Company's sustainable development policies were recently updated. These policies, applicable to SCC and its subsidiaries, formalize the Company's vision, commitments and objectives to promote sustainable development and generate shared value for our stakeholders.

In 2020, and for the second consecutive year, SCC was listed on SCC Dow Jones Sustainability Index MILA. Additionally, our score on S&P Global's annual sustainability assessment increased to 50 points during the same period; this represents a 5-point increase over 2019's level.

In Peru, SCC, in coordination with the Peruvian government and our main oxygen supplier, has adapted our Ilo Oxygen Plant N°2 in record time to produce 140 tons per week of liquid oxygen. The production is being used to supply hospitals and medical facilities in Peru's central and southern regions, where medicinal oxygen is extremely scarce. The Company has committed to donating 2,500 tons of liquid oxygen, which is the equivalent of 194,000 oxygen tanks of 10 cubic meters each. As of March 31st, we had delivered 1,346 tons of liquid oxygen, or 53% of the committed donation.

In addition to this effort, in March we donated two mobile oxygen plants, each with a capacity of 720 cubic meters per day of medical oxygen. These plants will be transported to towns that lack sufficient oxygen supplies to fight against COVID- 19.

In 2020, the 3,667 students from 11 educational centers sponsored by the Company in Mexico and Peru were able to continue their school programs remotely. To cope with the global pandemic, the Company's programs, which are developed under the Community Development Model, migrated to virtual platforms. Last year, 4,634 online workshops were held, consolidating a community of over 290 thousand users on social networks, which represents an increase of 63% compared to 2019. In 1Q21, we continued to roll out remote school programs to provide education to 3,756 school- age children. Alongside these efforts, SCC offered virtual workshops to the community, which have been reproduced more than 10 million times since the beginning of the pandemic.

Last year was marked by a good performance in terms of occupational safety since no fatalities were registered, and accident rates and lost days in the mining division dropped by 44% and 78%, respectively, compared to 2019. Minera México obtained, for the second consecutive year, three of the six distinctions ("Casco de Plata") awarded by the Mining Chamber of Mexico for occupational health and safety performance. The survey conducted by the Mining Chamber of Mexico, which determines award recipients, includes approximately 120 mining companies of different sizes that are grouped into diverse categories, such as open and underground mining, smelting and refining.

Conference Call

The Company's first quarter earnings conference call will be held on Wednesday, April 28, 2021, beginning at 12:00 PM

- EST (11:00 AM Lima and Mexico City time).

To participate:

Dial-in number: 877-455-8486 in the U.S. 629-228-0768 outside the U.S.

Raul Jacob, SCC Vice President of Finance, Treasurer & CFO

Conference ID: 4663035 and "Southern Copper Corporation First Quarter 2021 Earnings Results"

1Q21 www.southerncoppercorp.com

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					FIRST QUARTER 2021 RESULTS				SOUTHERN COPPER
						Average Metal Prices
				LME	COMEX
			Copper	Copper	Molybdenum			Zinc		Silver	Gold
				($/lb.)	($/lb.)	($/lb.)			($/lb.)		($/oz.)	($/oz.)
	1Q 2021	3.85	3.86		11.19	1.25	26.29	1,797.80
	1Q 2020	2.56	2.57		9.56	0.97	16.87	1,583.23
	2Q 2020	2.42	2.43		8.24	0.89	16.54	1,710.51
	3Q 2020	2.96	2.94		7.57	1.06	24.59	1,911.36
	4Q 2020	3.25	3.26		8.93	1.19	24.50	1,873.24
	Average 2020	2.80	2.80		8.57	1.03	20.62	1,769.59
	Variance: 1Q21 vs. 1Q20	50.4%	50.2%		17.1%	28.9%	55.8%	13.6%
	Variance: 1Q21 vs. 4Q20	18.5%	18.4%		25.3%	5.0%	7.3%	(4.0)%
	Source: Silver - COMEX; Gold and Zinc - LME; Molybdenum - Metals Week Dealer Oxide
						Production and Sales
								Three Months Ended
									March 31,
							2021	2020			%
		Copper (tons)
		Mined				238,402	241,967		(1.5)%
		3rd party concentrates			688		9,308		(92.6)%
		Total production	239,090	251,275		(4.8)%
		Smelted				151,594	163,384		(7.2)%
		Refined and rod	202,249	214,052		(5.5)%
		Sales				240,183	251,533		(4.5)%
		Molybdenum (tons)
		Mined						7,200		7,185		0.2%
		Sales						7,219		7,239		(0.3)%
		Zinc (tons)
		Mined						16,466		19,263		(14.5)%
		Refined						18,368		28,560		(35.7)%
		Sales						12,514		28,885		(56.7)%
		Silver (000s ounces)
		Mined						4,946		5,278		(6.3)%
		Refined						3,349		3,161		5.9%
		Sales						5,338		5,520		(3.3)%

1Q21 www.southerncoppercorp.com

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