NYSE: SCCO

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Our Mexican operations are conducted through our subsidiary, Minera Mexico, S.A. de C.V. (“Minera Mexico”), which we acquired in 2005. Minera Mexico engages primarily in the mining and processing of copper, molybdenum, zinc, silver, gold and lead. Minera Mexico operates through subsidiaries that are grouped into three separate units. Mexicana de Cobre, S.A. de C.V. (together with its subsidiaries, the “La Caridad” unit) operates La Caridad, an open-pit copper mine, the Pilares open-pit copper mine, a copper ore concentrator, a SX-EW plant, a smelter, refinery and a rod plant. The La Caridad refinery has a precious metals plant that produces refined silver, gold and other materials. Operadora de Minas e Instalaciones Mineras, S.A de C.V. (the “Buenavista unit”) operates Buenavista, an open-pit copper mine, which is located on the site of one of the world’s largest copper ore deposits, two copper concentrators, a zinc concentrator and two operating SX-EW plants. Industrial Minera Mexico, S.A. de C.V. (together with its subsidiaries, the “IMMSA unit”) operates five underground mines that produce zinc, lead, copper, silver and gold, and a zinc refinery.

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We utilize modern, state of the art mining and processing methods, including global positioning systems and computerized mining processes. Our operations have a high level of vertical integration, which allows us to use our facilities, employees and equipment to manage the entire production process, including ore mining and production of refined copper rod and other products, and to execute most associated transport and logistics functions.

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The sales prices for our products are largely determined by market forces beyond our control. Our management, therefore, focuses on cost control and production enhancement to remain profitable. We endeavor to achieve these goals through capital spending programs, exploration efforts and cost reduction programs. Our focus is on remaining profitable during periods of low copper prices and maximizing results in periods of high copper prices. For additional information on the sale prices of the metals we produce, please see “Metal Prices” in this Item 1.

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Currency Information:

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Unless stated otherwise, all our financial information is presented in U.S. dollars and any reference herein to “U.S. dollars,” “dollars,” or “$” are to U.S. dollars; references to “sol,” “soles” or “S/”, signify Peruvian soles; and references to “peso,” “pesos,” or “Ps.,” represent Mexican pesos.

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Unit Information:

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Unless otherwise noted, all tonnages are in metric tonnes. To convert to short tons, multiply by 1.102. All ounces are troy ounces. All distances are in kilometers. To convert to miles, multiply by 0.621. To convert hectares to acres, multiply by 2.47.

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ORGANIZATIONAL STRUCTURE

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The following chart describes our organizational structure, starting with our controlling stockholders, as of December 31, 2025. For the purpose of clarity, the chart identifies only our main subsidiaries and eliminates intermediate holding companies.

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We are a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V. (“Grupo Mexico”). As of December 31, 2025, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corporation (“AMC”), owned 88.9% of our capital stock. Grupo Mexico’s principal business is to act as a holding company for the shares of other corporations engaged in the mining, processing, purchase and sale of minerals and other products and in the provision of railway and other related services.

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We conduct our operations in Peru through a registered branch (the “SPCC Peru Branch,” “Branch” or “Peruvian Branch”). The SPCC Peru Branch comprises virtually all of our assets and liabilities associated with our copper operations in Peru. The SPCC Peru Branch does not constitute a corporation that is separate from SCC, and, as such, the obligations of the SPCC Peru Branch are direct obligations of SCC and vice-versa. The SPCC Peru Branch is, however, registered as a branch of a foreign company pursuant to Peruvian law and through this entity, we hold assets, incur liabilities and conduct operations in Peru. Although the SPCC Peru Branch has no capital or liability that is separate from that held or applicable to SCC, the SPCC Peru Branch is deemed to have equity capital for purposes of determining the economic interests of holders of our investment shares (See Note 14 “Stockholders’ Equity” of the consolidated financial statements).

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In April 2005, we acquired Minera Mexico, from Americas Mining Corporation (“AMC”), a subsidiary of Grupo Mexico, our controlling stockholder. Minera Mexico is a holding company and all of its operations are conducted through subsidiaries that are grouped into three units: (i) the La Caridad unit, (ii) the Buenavista unit and (iii) the IMMSA unit. We own 99.998% of Minera Mexico.

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In 2008, our Board of Directors authorized a $500 million share repurchase program that has since been increased by the Board of Directors and is currently authorized for up to $3 billion. No repurchases have been made under this program since the third quarter of 2016. Through December 31, 2025, we have repurchased an aggregate of 119.5 million shares of our common stock for an aggregate cost of $2.9 billion. These repurchased shares may be used for general corporate purposes. We may purchase additional shares under the program from time to time, based on market conditions and other factors. This repurchase program does not have an expiration date and may be modified or discontinued at any time. Since the second quarter of 2024, the Board of Directors has approved quarterly stock dividends, and a portion of these repurchased shares have been used to pay these dividends to our common stockholders.

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REPUBLIC OF PERU AND MEXICO

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Our revenues are derived primarily from our operations in Peru and Mexico. Risks related to our operations in both countries include those associated with economic and political conditions, the effects of currency fluctuations and inflation, the effects of government regulations and the geographic concentration of our operations.

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OUR BUSINESS

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COPPER BUSINESS

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Copper is an important component in the world’s infrastructure chain. It is the third most widely used metal, after iron and aluminum. Copper has unique chemical and physical properties, including high ductility; malleability; thermal and electrical conductivity; and resistance to corrosion, and as such, is considered a prime material for use in electrical and electronic products, including components for power transmission and generation, which accounts for about three quarters of copper global use, and for telecommunications, building construction, transportation and industrial machinery. Copper is also an important metal in non-electrical applications such as plumbing and roofing and, when alloyed with zinc to form brass, is used in many industrial and consumer applications.

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Copper is an internationally traded commodity whose prices are mainly determined by the major metal exchanges, the Commodities Exchange, or “COMEX,” in New York and the London Metal Exchange or “LME,” in London. Copper is usually found in nature in association with sulfur. Pure copper metal is generally produced in a multi-stage process, beginning with the mining and concentrating of low-grade ores containing copper sulfide minerals, and followed by smelting and electrolytic refining to produce a pure copper cathode. An increasingly larger share of copper is being produced from acid leaching of oxidized ores. Copper is one of the oldest metals known to man and has contributed significantly to the development of civilization.

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BUSINESS REPORTING SEGMENTS:

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Our management divides Southern Copper into three reportable segments and manages each as a separate segment.

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The three segments identified are groups of individual mines, each of which constitutes an operating segment with similar economic characteristics, product types, processes and support facilities, regulatory environments, employee bargaining contracts and currency risks. In addition, each mine within the individual group earns revenues from similar types of customers for their products and services and each group incurs expenses independently, including commercial transactions between groups.

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Inter-segment sales are based on arm’s length prices at the time of sale. These may not be reflective of actual prices realized by the Company due to various factors, including additional processing, timing of sales to outside customers and transportation cost. Information regarding the Company’s sales is included in the segment data. The segments identified by the Company are:

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1.Peruvian operations, which include the Toquepala and Cuajone mine complexes and the smelting and refining plants, including a precious metals plant, industrial railroad and port facilities that service both mines. Sales of its products are recorded as revenue from our Peruvian mines. The Peruvian operations produce copper, by-products of molybdenum, silver and other materials.

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2.Mexican open-pit operations, which include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Sales of its products are recorded as revenue of our Mexican mines. The Mexican open-pit operations produce copper and zinc, with production of by-products of molybdenum, silver and other materials.

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3.Mexican underground mining operations, which include five underground mines that produce zinc, copper, lead, silver and gold; and a zinc refinery. This group is identified as the IMMSA unit and sales of its products are recorded as revenue from the IMMSA unit.

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Financial information is periodically prepared for each of the three segments and the results are reported to the Chief Operating Decision Maker (“CODM”). The CODM focuses on operating income and on total assets as measures to evaluate different segments and to make decisions to allocate resources to the reported segments. These are common measures in the mining industry.

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The CODM of the Company evaluates the performance of each of the segments on a regular basis by assessing the budget-to-actual and actual to prior period variances in production, net sales and operating income. Additionally, the CODM of the Company reviews on a regular basis the execution of forecasted capital expenditures and the evolution of total asset amounts in each segment to make decisions about operating and capital resource allocation for each segment.

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Segment information is included in Item 2 “Properties.” More information on business segment and segment financial information is included in Note 18 “Segment and Related Information” of the consolidated financial statements.

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CAPITAL INVESTMENT PROGRAM AND EXPLORATION ACTIVITIES

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For a description of our capital investment program, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Investment Program” and for our exploration activities, see Item 2 “Properties—Explorations Activities.”

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PRINCIPAL PRODUCTS AND MARKETS

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Copper is primarily used in the building and construction industries; in the power generation and transmission industry; and in the electrical and electronic products; and, to a lesser extent, in industrial machinery and equipment; consumer products; and in the automotive and transportation industries. Molybdenum is used to toughen alloy steels and soften tungsten alloy and is also used in fertilizers, dyes, enamels and reagents. Silver is used for electrical and electronic products and, to a lesser extent, in brazing alloys and solder, jewelry, coinage, photographic, silverware and catalysts. Zinc is primarily used as a coating on iron and steel to protect against corrosion; it is also used to make die cast parts to manufacture batteries and to form sheets for architectural purposes.

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Our marketing strategy and annual sales planning emphasize developing and maintaining long-term customer relationships. As such, acquiring annual or other long-term contracts for the sale of our products is a high priority. Generally, 80% to 90% of our metal production is sold under annual or longer-term contracts. Sales prices are determined based on the prevailing commodity prices for the quotation period according to the terms of the contract.

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We focus on end-user customers as opposed to selling on the spot market or to trading companies. In addition, we devote significant marketing efforts to diversifying our sales both by region and customer base. We also strive to provide superior customer service, including timely deliveries of our products. Our ability to consistently fulfill customer demand is underpinned by our substantial production capacity.

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For additional information on sales please see “Revenue recognition” in Note 2 “Summary of Significant Accounting Policies” and Note 18 “Segment and Related Information” of the consolidated financial statements.

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METALS PRICES

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Prices for our products are principally a function of supply and demand and, with the exception of molybdenum, are established on COMEX and LME. Prices for our molybdenum products are established by reference to the publication Platt’s Metals Week. Our contract prices also reflect any negotiated premiums and the costs of freight and other factors. From time to time, we have entered into hedging transactions to provide partial protection against future decreases in the market price of metals and we may do so under certain market conditions. For a further discussion of our products market prices, please see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Metal Prices.”

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The table below shows the high, low and average COMEX and LME per pound copper prices during the last 10 years:

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Copper (COMEX)

Copper (LME)

Year

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High

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Low

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Average

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High

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Low

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Average

2016

2.69

1.94

2.20

2.69

1.96

2.21

2017

3.29

2.48

2.80

3.27

2.48

2.80

2018

3.29

2.56

2.93

3.29

2.64

2.96

2019

2.98

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2.51

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2.72

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2.98

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2.51

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2.72

2020

3.63

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2.12

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2.80

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3.61

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2.09

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2.80

2021

4.78

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3.54

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4.24

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4.86

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3.52

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4.23

2022

4.93

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3.21

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4.01

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4.87

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3.18

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4.00

2023

4.27

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3.54

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3.86

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4.28

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3.54

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3.85

2024

5.12

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3.69

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4.22

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4.92

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3.67

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4.15

2025—1st Q

5.22

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4.04

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4.57

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4.53

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3.94

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4.24

2025—2nd Q

5.07

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4.13

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4.72

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4.59

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3.87

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4.32

2025—3rd Q

5.80

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4.33

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4.83

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4.68

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4.33

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4.44

2025—4th Q

5.77

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4.83

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5.15

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5.68

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4.66

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5.03

2025

5.80

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4.04

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4.82

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5.68

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3.87

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4.51

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The per pound COMEX copper price over the last 5- and 10-year periods averaged $4.23 and $3.46, respectively. The per pound LME copper price during the same periods averaged $4.15 and $3.42, respectively.

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The table below shows the high, low and average prices per pound with the exception of silver, which is priced per ounce. The market prices for our three principal by-products over the last 10 years are as follows:

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Molybdenum (Dealer

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Oxide Platt’s

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Silver (COMEX)

Metals Week)

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Zinc (LME)

Year

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High

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Low

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Average

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High

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Low

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Average

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High

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Low

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Average

2016

20.67

13.74

17.10

8.60

5.10

6.42

1.32

0.73

0.95

2017

18.49

15.37

17.03

10.25

6.85

8.13

1.53

1.00

1.31

2018

17.55

13.95

15.65

13.00

10.60

11.86

1.64

1.04

1.33

2019

19.39

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14.28

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16.16

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12.70

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8.28

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11.27

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1.37

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0.90

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1.16

2020

29.25

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11.74

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20.62

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10.90

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7.00

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8.57

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1.29

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0.72

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1.03

2021

29.40

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21.46

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25.18

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20.10

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9.95

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15.51

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1.73

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1.15

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1.36

2022

26.89

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17.55

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21.76

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31.85

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13.90

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18.61

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2.05

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1.22

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1.58

2023

26.04

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20.01

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23.41

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38.50

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16.65

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23.73

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1.59

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1.01

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1.20

2024

34.83

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22.10

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28.25

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24.13

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19.18

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21.21

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1.47

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1.04

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1.26

2025—1st Q

34.90

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29.81

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32.31

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21.15

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19.55

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20.43

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1.35

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1.22

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1.29

2025—2nd Q

37.09

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29.12

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33.62

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21.98

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19.60

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20.57

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1.28

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1.14

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1.20

2025—3rd Q

46.61

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36.08

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39.56

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26.03

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21.93

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24.30

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1.37

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1.21

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1.28

2025—4th Q

77.37

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46.00

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54.48

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25.45

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21.00

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22.75

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1.52

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1.37

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1.44

2025

77.37

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29.12

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39.99

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26.03

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19.55

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22.01

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1.52

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1.14

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1.30

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The per ounce COMEX silver price over the last 5- and 10-year periods averaged $26.75 and $22.03, respectively. The per pound Platt’s Metals Week Dealer Oxide molybdenum price during the same periods averaged $20.21 and $14.73, respectively, while the per pound LME zinc price averaged $1.33 and $1.24, respectively.

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COMPETITIVE CONDITIONS

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Competition in the copper market is based primarily on price and service basis, with price being the most important factor when supplies of copper are ample. Our products compete with other materials, including aluminum and plastics. For additional information, see Item 1A “Risk Factors—The copper mining industry is highly competitive.”

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HUMAN CAPITAL RESOURCES

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As of December 31, 2025, we had 16,617 employees, approximately 64.4% of whom are covered by a Collective Labor Agreement and represented by 16 collective bargaining agreements with ten different labor unions. We believe that the labor environment in our operations in Mexico and Peru is favorable, which has allowed us to increase productivity as we advance the goals of our capital expansion program. Furthermore, approximately 12,400 contractors support our operations. In alignment with our commitment to community development, over 70% of our workforce is hired locally.

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Talent Development, Training and Retention

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We value the talent and passion of our team members, and we offer numerous opportunities for professional development to our workforce in both Peru and Mexico. During 2025, we delivered more than 573,000 hours of formal instruction relative to occupational safety, health and wellness, technical competencies, professional development, and regulatory compliance in accordance with our Code of Ethics. We believe that employee development is strengthened through formal and on-the-job learning.

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All employees receive initial training as part of their onboarding program and are offered opportunities for development, which facilitates talent retention.

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Company Culture

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We are committed to fostering a cohesive and high-performance organizational culture grounded in our mission, vision, and values, while continuously strengthening our position as an employer of choice. As part of this commitment, in 2025 we undertook a comprehensive assessment of our organizational culture to deepen our understanding of employee engagement and to inform targeted actions that enhance employee experience. This approach enables us to create sustainable value for our people within a safe, inclusive, and collaborative work environment, where individuals feel genuinely connected to the Company’s purpose and values. Integrity, respect, and accountability remain central to our culture and are embedded in our everyday decisions and operations.

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We place a strong emphasis on the continuous development of our employees by recognizing their contributions, while maintaining a disciplined, results-driven focus. Our initiatives are designed to generate long-term value for key stakeholders and the communities in which we operate by enhancing productivity and innovation, advancing human development, promoting environmental stewardship, and implementing forward-looking, sustainable solutions.

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Compensation and Benefits

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Our recruitment strategy focuses on attracting and retaining employees by providing market-competitive remuneration packages, tailored to position requirements, geographical considerations, and local statutory requirements in the countries where we operate. Our compensation practices consider many factors, including individual performance and responsibilities; years of service; elements of compensation mandated by Peruvian and Mexican law; future challenges and objectives; contributions to the future success of our Company; the employee’s total compensation and our financial performance. We may also look at the compensation levels of comparable companies. We offer productivity bonuses to our employees, which motivates them to grow the Company’s results.

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Health and Safety

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Our Comprehensive Health Program, in coordination with our safety department, focuses on risk prevention and the promotion of well-being through periodic medical evaluations and health education initiatives. Our objective is to protect our employees; strengthen a culture of self-care; and ensure operational continuity, productivity, and organizational sustainability.

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During 2025, over 34,000 health initiatives were carried out, including campaigns, workshops, talks, self-help groups, and early detection activities, among others.

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In Mexico, we conducted 223 health campaigns that benefited 5,007 employees, focused on the early detection of chronic conditions such as diabetes, hypertension, dyslipidemia, as well as various cancers, including breast, cervical, and prostate cancer, alongside other preventive screenings. Additionally, over 11,000 vaccines against influenza, pneumococcus, yellow fever, tetanus, and COVID-19 were administered, and 300 food handlers were vaccinated against typhoid fever and hepatitis A, strengthening preventive and comprehensive health care.

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Preventive and self-care initiatives were bolstered through over 9,200 health workshops, talks, and training sessions focusing on promoting well-being and preventing key occupational diseases. These efforts reached over 69,000 participants, contributing to risk reduction, health protection, and operational continuity. Additionally, 4,529 specialized medical examinations and 5,196 periodic medical evaluations were conducted, with occupationally exposed personnel (“OEP”) representing 85% of those evaluated.

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In terms of promoting healthy lifestyles for our employees, we promoted the adoption of good nutrition and exercise habits through more than 4,500 specialized talks and sessions, reaching over 19,800 participants. Additionally, we distributed over 19,000 informational materials. These initiatives contributed to consolidating the Wellness Program, with the active participation from nearly 14,000 employees. This fosters a culture of health and well-being within the organization.

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The “Add Steps, Lose Weight” challenge engaged 2,036 employees, with notable health outcomes. Participants accumulated over 340 million steps and achieved a combined weight loss of 1,692 kilograms, which is proof of their desire to develop sustainable healthy lifestyle habits.

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In communities in Mexico where we operate, we collaborated with the Mexican Social Security Institute (“IMSS”) and the Ministry of Health to conduct health campaigns for employees’ families and the general public. These initiatives focused on detecting chronic disease, administering vaccinations, cancer screenings, and providing preventive care, thereby bolstering our social impact, community health, and relationships with key stakeholders.

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By the end of 2025, all mining operations in Mexico and Peru maintained ISO 45001 certification. The Safe and Healthy Work Environments certification (ELSSA) issued by the Mexican Social Security Institute (“IMSS”) was renewed for operations in Mexico, reinforcing our strong commitment to health, safety, and overall employee well-being.

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Talent Attraction and Recruiting

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As part of our talent attraction strategy, we have enhanced our employer brand through targeted initiatives in an effort to reinforce our reputation as an employer of choice across the regions where we operate. We recognize the strategic role of digital platforms in modern talent acquisition and stakeholder engagement. Accordingly, we expanded our LinkedIn presence, boosting followers by 30% last year and achieving a 22% engagement rate in 2025—among the highest in the mining industry, while actively participating in job fairs, reinforcing our presence at leading universities across the countries in which we operate.

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We run structured recruitment and development programs to attract, develop, and retain high-potential early-career talent, integrating university trainees and young professionals into our operations. In 2025, we recruited over 216 university trainees from diverse academic disciplines in Mexico and 196 trainees in Peru, supporting long-term workforce sustainability and strategic Human Resources planning.

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Over 48% of the roles are filled by internal employees and we have a retention rate of approximately 90% as of December 31, 2025. We boosted visibility of our internal career opportunities by leveraging internal platforms to promote employee development and professional growth.

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We maintain transparent recruitment processes and are committed to upholding the principles of human rights, inclusivity, equity, merit, and equal employment opportunity in accordance with applicable laws and regulations.

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Employee Engagement

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Every year we make concerted efforts to enhance employee engagement; foster a positive organizational environment; and strengthen our culture. Our employees’ perspective is essential to gauging loyalty, satisfaction, and engagement across the organization. In 2025, we conducted our “ECO” opinion survey across all operating units, evaluating 18 key factors to shape two-year, targeted action plans. Employee engagement is measured on a five-point Likert scale, with the aggregate score reflecting overall engagement levels. In 2025, 13,373 employees completed the survey (81% participation), yielding an overall engagement score of 4.12.

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For the fifth consecutive year, in 2025, our Sonora Metallurgical Complex was certified as one of the best places to work by Great Place to Work Mexico. This award acknowledges our organization's dedication to fostering an inclusive and innovative work culture that prioritizes the well-being of its employees.

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In 2025, our Metallurgical Complex in Sonora won the following awards, competing against over 100 organizations in Mexico and Latin America in the 500 to 5,000 employees category:

•8th place in The Best Workplaces in Mexico 2025

•7th place in The Best Workplaces for Women in Mexico 2025

•4th place in The Best Workplace Regional Northwest 2025.

•94th place in The Best Workplaces in Latin America 2025

•Recognition among the 100 Best Chief Human Resources Officers in Mexico 2025

•Recognition among the 100 Best Chief Executive Officers in Mexico 2025

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The Company has a corporate social responsibility policy that is designed to integrate its operations with local communities in our areas of influence. This policy focuses on creating permanent and positive relationships to generate optimal social conditions and promote sustainable development in the area. We continue to make significant expenditures for community programs. For additional information on our community programs, refer to Corporate Social Responsibility under Note 13 “Commitments and Contingencies” to the consolidated financial statements.

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2026 Strategic Workplace Plan

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We strive to create a workplace culture where our personnel feel included, welcomed and valued for their personal and professional contributions. This vision is grounded in our core values of respect, honesty and responsibility.

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In line with our Code of Conduct and Human Rights Policy, our objectives are to (i) cultivate an organizational culture that fosters equality and well-being, emphasizing excellence, equal opportunity, inclusivity and non-discrimination, (ii) enhance the sensitivity, knowledge and skills in our leaders and employees to build diverse and inclusive teams and promote a culture of respect, and (iii) extend this inclusive culture to the communities in which we operate.

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We developed our 2026 Strategic Workplace Plan with six strategic initiatives:

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1. Communication: to implement awareness initiatives on inclusivity, equity, and non-discrimination to foster diverse, inclusive, and safe work environments.

2. Training: to deliver comprehensive training programs to strengthen awareness, understanding, and respect for inclusivity and equity, while promoting collaborative practices that support inclusive and equitable teams.

3. Data generation and statistics: to establish and maintain robust data collection and reporting mechanisms to measure, analyze, and monitor inclusivity and equity indicators and strategic outcomes.

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4. Modifications of infrastructure: to adapt workplace infrastructure to ensure accessibility and alignment with the diverse needs of our workforce.

5. Hiring: to strategically leverage inclusivity and equity data to design recruitment practices and promote fair representation, equity, and excellence across all organizational levels and business units.

6. Retention: to implement initiatives that foster an environment where employees feel valued, supported, and safe, promoting engagement and long-term retention.

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We have established and implemented formal procedures to uphold a Zero Tolerance Policy for workplace harassment in Mexico and Peru, reinforcing our commitment to a safe, respectful, and violence-free work environment. These procedures, disclosed in Mexico in 2025, foster fair and equitable resolution processes; encourage good faith reporting through a strict non-retaliation policy; provide secure and confidential reporting channels for submitting complaints; and ensure timely investigation and responses to allegations, all while prioritizing the well-being of our employees. To further strengthen the effective application of this policy in Mexico, we conducted specialized training for organizational leaders, who are designated as first responders, to equip them with the skills to prevent, identify, and address workplace violence. In total, 1,400 leaders were trained across our operating units.

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In 2025, as part of a company-wide effort across Grupo Mexico, we launched the “Women Who Inspire” program to showcase the success stories of our female talent and highlight opportunities for growth and development within the Company. This initiative reinforces our commitment to inclusion and gender equity, celebrating role models who strengthen our organizational culture and motivate future generations of women across the organization.

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CODE OF ETHICS

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All of our employees, including our new hires, must certify compliance with the Code of Ethics yearly by reviewing and signing this principal document, which serves as our primary guidance tool for professional conduct in terms of ethical obligations, both in our business dealings and our interpersonal relationships.

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LABOR MATTERS

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For additional discussion of labor matters, refer to the information contained in Note 13 “Commitments and Contingencies” of the consolidated financial statements.

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Peru

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As of December 31, 2025, 50.8% of our 5,432 Peruvian employees were unionized. Currently, there are six separate unions, none of which represents the majority of workers, as defined by current Peruvian labor legislation. The Company maintains regular dialogue with union representatives to ensure labor harmony and proper management of labor relations. The Company has collective bargaining agreements with each of the six unions, the earliest of which expires in 2027 and the latest, in 2033. These agreements govern benefits related to compensation and working conditions.

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In the fourth quarter of 2024, the Company signed long-term extensions of the collective bargaining agreements with five of its six unions, each for a term of six years, with such term commencing on the day after the expiration of the prior agreements, in accordance with the law. As a result of entering into these agreements, in the fourth quarter of 2024, the Company paid signing bonuses to each worker belonging to the corresponding unions, totaling approximately $62 million.

​

In February 2025, the Company signed a three-year extension of the collective bargaining agreement with the remaining union. The Company paid signing bonuses to each worker belonging to the union, totaling approximately $6.3 million. The extensions to each collective bargaining agreement allow the Company to ensure that economic benefits and working conditions are consistently applied to all unionized workers. Additionally, the Company reached an agreement with each of the six unions to ensure uninterrupted operation of its facilities, preventing stoppages by unions and unionized workers during the extension periods agreed to in each extension agreement.

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In the second quarter of 2025, the Company began implementing the collective bargaining agreements with each of the six unions. Meetings with union representatives have been held to coordinate the execution of the agreed provisions and to agree on additional measures, ensuring that operations can proceed normally through at least 2027.

​

Our employees at the Toquepala and Cuajone mining units reside in the 3,700 houses and apartments that we have built at the townsites. We also have 90 houses in Ilo for staff personnel. Housing, maintenance and utility services are provided to most of our employees for a nominal cost. Our townsite and housing complexes provide schools, medical facilities, churches, banks, shops, social clubs, recreational facilities and other services.

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Mexico

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As of December 31, 2025, 71.2% of our 11,156 Mexican employees were unionized. These individuals are represented by ten collective bargaining agreements with four labor unions. Under Mexican law, the terms of employment for unionized workers are set forth in collective bargaining agreements. Mexican companies negotiate the salary provisions of collective bargaining agreements with the labor unions on an annual basis and negotiate other benefits every two years. We conduct negotiations separately at each mining complex and each processing plant.

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Our Taxco mine in Mexico has been on strike since July 2007. For further discussion of this labor matter, refer to the information contained under the caption “Labor matters” in Note 13 “Commitments and Contingencies” of the consolidated financial statements.

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Employees of La Caridad and Buenavista units reside in townsites at Nacozari and Cananea, where we have built approximately 1,800 houses and apartments. Most of the employees of the IMMSA unit reside on the grounds of the mining or processing complexes where we have built 356 houses and apartments. Housing, together with maintenance and utility services, is provided at nominal cost to most of our employees. Our townsites and housing complexes include educational and medical facilities, churches, social clubs, shopping centers, banking and other services. Through 2007, the Buenavista unit provided health care services to employees and retired unionized employees and their families through its own on-site hospital. In 2010, the Company signed an agreement with the Secretary of Health of the State of Sonora to provide these services to its retired workers and their families. The new workers of Buenavista receive health services through the Mexican Institute of Social Security as is the case for all Mexican workers.

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FUEL, ELECTRICITY AND WATER SUPPLIES

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The principal raw materials used in our operations are fuel, gas, electricity and water. We use natural gas to power boilers and generators and utilize diesel fuel to power mining equipment for metallurgical processes at our operations. We believe that sufficient sources of fuel, electricity and water are readily available. Fluctuations may occur in the prices of these raw materials that are beyond our control; as such, we focus our efforts on reducing costs through cost and energy-saving measures.

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Energy generates the main cost in mining, so concern for its conservation and efficient usage is critical. We have energy management committees at most of our mines, which meet periodically to discuss consumption and to develop measures aimed at saving energy. Alternative sources are also being analyzed at the corporate level, including both traditional and renewable energy sources. This approach has helped us to develop a culture of energy conservation directed at ensuring the sustainability of our operations.

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Peru:

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Fuel: In Peru, we obtain fuel primarily from Valero Peru, a local subsidiary of Valero Energy Corporation, a U.S. producer of fuel and power. The Company believes that adequate supplies of fuel are available for its operations in Peru.

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Electricity: In June 2014, we entered into a power purchase agreement for 120 megawatts (“MW”) with the state owned company Electroperu S.A., which began supplying energy to our Peruvian operations for a twenty-year period that started on April 17, 2017. In July 2014, we entered into a power purchase agreement for 120MW with a private power generator Kallpa Generacion S.A. (“Kallpa”), which began supplying energy to our Peruvian operations for a ten-year

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period that started on April 17, 2017. In May 2016, we signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa began supplying energy to the operations related to the Toquepala expansion and to other minor projects for a period starting on May 1, 2017, and ending on April 30, 2029. We feel confident that additional power can be obtained from the Peruvian national grid, should the need arise.

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Additionally, we have nine megawatts of power generation capacity from two small hydro-generating facilities at Cuajone. Power is distributed over a 224-kilometer transmission line circuit, which is connected to the Peruvian network.

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Water: We have water rights or licenses for up to 2,011 liters per second from well fields at the Huaitire-Gentilar, Vizcachas and Titijones aquifers and surface water rights from Lake Suches. Three additional water sources are: Quebrada Honda, Quebrada Tacalaya and a smaller resource from the Cuajone mine pit. We believe these water sources are sufficient to supply the water demands of our operating units at Toquepala and Cuajone. Additionally, we have permits in Ilo to use water at three desalination plants that generate water for industrial use and domestic consumption; we believe these facilities will produce sufficient water to cover the requirements of both current and projected needs. Additionally, we have two licenses for the use of non-desalinated seawater for the Ilo smelter plant.

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The Branch has a surface water permit for the Locumba river, which will facilitate the conservation and maintenance of a portion of the wetlands in Ite. The Branch also has a wastewater permit (agricultural drainage water) for the San Camilo artificial lagoon, which will be used in the construction stage of the Tia Maria Project. The Company has also been granted a permit to use small volumes of surface water for exploration purposes at the Michiquillay Project. The Company has also been studying alternative sources of water to cover future needs as operations expand and our mining projects grow.

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Mexico:

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Fuel: In Mexico, since 2018, we have purchased fuel from Petroleos Mexicanos (“PEMEX”), the state producer, and from private suppliers.

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The La Caridad unit imports natural gas from the United States through its pipeline (between Douglas, Arizona and Nacozari, Sonora). This allows us to import natural gas at market prices and thereby reduce operating costs. Several contracts with PEMEX and the United States provide us with the option of using a monthly or daily fixed prices for our natural gas purchases.

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Natural gas is used for metallurgical processes and to power furnaces, converters, casting wheels, boilers and electric generators. Diesel oil is a backup method for all these uses. We use diesel oil to power mining equipment at our operations.

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Electricity: Electricity is used as the main energy source at our mining complexes. We purchase most of our electricity from Mexico Generadora de Energia S. de R. L. (“MGE”), a subsidiary of Grupo Mexico which has two power plants designed to supply power to La Caridad and Buenavista units. In 2025, MGE supplied 11.5% of its power output to third party energy users. These plants are natural gas-fired combined cycle power generating units, with a net total capacity of 516.2 megawatts. In 2012, we entered into a power supply agreement with MGE that will last until 2032. The first plant was completed in 2013 and the second in 2014. The first plant began to supply power to the Company in December 2013, and the second plant in June 2015.

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We also purchase electricity from the Comision Federal de Electricidad (the Federal Electricity Commission or the “CFE”), the state’s electrical power producer. In addition, we recover some energy from waste heat boilers at the La Caridad smelter. Accordingly, a significant portion of our operating costs in Mexico is dependent upon the pricing policies of CFE and PEMEX, which are affected by political and regulatory environments, international market prices for crude oil and natural gas; and conditions in the refinery markets.

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Some IMMSA mining operations also purchase electricity from Eolica el Retiro, S.A.P.I de C.V. (“Eolica”), a windfarm energy producer that is an indirect subsidiary of Grupo Mexico. In August 2013, IMMSA and other of the Company’s

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mining operations entered into a purchase agreement and in late 2014 started to purchase electricity from Eolica. Due to the nature of the production process, there is not a fixed power capacity contracted. In 2025, Eolica el Retiro supplied approximately 16.5% of its power output to IMMSA and Mexcobre.

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On February 20, 2020, the Company signed a power purchase agreement with Parque Eolico de Fenicias, S. de R.L. de C.V., and indirect subsidiary of Grupo Mexico, to supply 611,400 MWh of power per year to some of the Company´s Mexican operations for 20 years. This agreement commenced in the third quarter of 2024. In 2025, Parque Eolico de Fenicias supplied approximately 98.1% of its power output to IMMSA.

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Water: In Mexico, water is deemed public property and industries that are not connected to a public service water supply must obtain a water concession from Comision Nacional del Agua (the National Water Commission or the “CNA”). Water usage fees are established in the Ley Federal de Derechos (the Federal Rights Law), which distinguishes several availability zones with different fees per unit of volume according to each zone, with the exception of Mexicana de Cobre. All of our operations have one or several water concessions and pump out the required water from wells. Mexicana de Cobre pumps water from the La Angostura dam, which is close to the mine and plants. At our Buenavista facility, we maintain our own wells and pay the CNA for water usage. Water conservation committees have been established at each plant to conserve and recycle water. Water usage fees are updated on a yearly basis and have been on the rise in recent years.

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LEGAL AND REGULATORY MATTERS

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To the Company's knowledge, during the period from January 1, 2024 through December 31, 2025, no legal, environmental, labor or tax regulations came into effect in the jurisdictions where the Company operates that (i) required the Company to incur material costs of compliance, (ii) had a material adverse effect on the Company’s operations, or (iii) materially impacted the execution of the Company’s projects. As of the date of this report, the Company believes that its facilities in Peru and Mexico are in material compliance with all applicable environmental, mining and other laws and regulations in their respective jurisdictions.

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On September 15, 2024, the Mexican Congress approved a constitutional reform to the Judicial Branch that replaces the existing appointment-based system for selecting judges with a system of popular election of Congress pre-selected judges. The implementation of this reform is ongoing, and the Company cannot currently assess its potential impact on the Mexican federal judicial system or the Company's operations.

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For a discussion of environmental and labor matters, reference is made to the information contained in Note 13 “Commitments and Contingencies” of the consolidated financial statements. For more information on tax matters, refer to Note 7 “Income taxes” of the consolidated financial statements.

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MINING RIGHTS AND CONCESSIONS

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Peru:

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We have 164,805 hectares in concessions from the Peruvian government for our exploration, exploitation, extraction and production operations, at various sites, as follows:

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​

​

​

​

​

​

​

​

​

​ ​ ​

Toquepala

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Cuajone

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Ilo

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Other

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Total

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(hectares)

Mine concessions

27,413

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27,431

​

4,670

​

105,291

164,805

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We believe that our Peruvian concessions are in full force and effect under applicable Peruvian laws and as such, comply with all material terms and requirements applicable to said concessions. The concessions have indefinite terms, subject to our payment of concession fees of up to $3.00 per hectare annually for the mining concessions and a fee based on nominal capacity for the processing concessions. Fees paid during 2025, 2024 and 2023, were approximately $6.3 million, $5.2 million and $3.4 million, respectively. We have two types of mining concessions in Peru: metallic and non-metallic concessions. Although ownership is not required in order to explore or mine a concession, we make efforts to acquire the land related to our Peruvian concessions. We also own all of the processing facilities of our Peruvian operations and the land on which they are built.

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Mexico:

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In Mexico we have 505,788 hectares in concessions from the Mexican government for our exploration and exploitation activities as outlined on the table below:

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​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

IMMSA

​ ​ ​

La Caridad

​ ​ ​

Buenavista

​ ​ ​

Projects

​ ​ ​

Total

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(hectares)

Mine concessions

223,124

​

103,966

​

93,706

​

84,993

505,788

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We believe that our Mexican concessions are in full force and in effect under applicable Mexican laws and that we are in compliance with all material terms and requirements applicable to these concessions. Under Mexican law, mineral resources belong to the Mexican nation and a concession from the Mexican federal government is required to explore or mine mineral reserves. Our mining concessions have a 50-year term that can be renewed for another 50 years. Holding fees for mining concessions can be from $0.52 to $11.43 per hectare depending on the start date of the mining concession. Fees paid during 2025, 2024 and 2023 were approximately $11.4 million, $11.6 million and $11.7 million, respectively. In addition, all of our operating units in Mexico have water concessions that are in full force and effect. Although ownership is not required in order to explore or mine a concession, we generally own the land related to our Mexican concessions. We also own all of the processing facilities of our Mexican operations and the land on which they are built.

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AVAILABLE INFORMATION

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We file annual, quarterly and current reports, proxy statements and other information with the U.S. Securities and Exchange Commission (“SEC”). You may read and copy any document we file at the SEC’s Public Reference Room at 100 F Street NE, Washington, D.C. 20549. The SEC maintains a website that contains annual, quarterly and current reports, proxy statements and other information that issuers (including Southern Copper Corporation) file electronically with the SEC. The SEC’s website is www.sec.gov.

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Our website is www.southerncoppercorp.com. The first document on the list of materials available on this website is Form 8-K, dated March 14, 2003. We offer, free of charge, downloads of our annual, quarterly and current reports, as soon as they can be reasonably made available following electronic or physical filing with the SEC. Our website also includes the Company’s Corporate Governance guidelines and the charters of our main Board Committees. However, the information found on our website is not part of this or any other report.

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CAUTIONARY STATEMENT

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This report contains forward-looking statements in which we discuss our potential future performance, operations and projects. Forward-looking statements in this report and in other Company statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions, production and sales volumes, expected commencement dates of mining or metal production operations, projected quantities of future metal production, anticipated production rates, operating efficiencies, costs and expenditures, including taxes, as well as projected demand or supply for the Company’s products. Actual results could differ materially depending upon certain factors, including the risks and uncertainties relating to general U.S. and international economic and political conditions, the cyclical and volatile prices of copper, other commodities and supplies, including fuel and electricity, the availability of materials, insurance coverage, equipment, required permits or approvals and financing, the occurrence of unusual weather or operating conditions, lower than expected ore grades, water and geological problems, the failure of equipment or processes to operate in accordance with specifications, failure to obtain financial assurance to meet closure and remediation obligations, labor relations, litigation and environmental risks, as well as political and economic risk associated with foreign operations. Results of operations are directly affected by metal prices on commodity exchanges, which can be volatile.

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We undertake no obligation to update any forward-looking statements, which speak only as of the date of this report. We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements.

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CAUTIONARY NOTE REGARDING DISCLOSURE OF MINERAL PROPERTIES

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Mineral Reserves and Resources

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In our public filings in the U.S. and Peru and in certain other announcements not filed with the SEC, we disclose proven and probable reserves and measured, indicated and inferred mineral resources, each as defined in Item 1300 of Regulation S-K (“S-K 1300”). The estimation of measured mineral resources and indicated mineral resources implies greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves, and therefore investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into S-K 1300-compliant reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. Therefore, investors are cautioned not to assume that all or any part of inferred resources exist, or that they can be mined legally or economically.

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Technical Report Summaries and Qualified Persons

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The scientific and technical information concerning our mineral projects in this Form 10-K have been reviewed and approved by third-party “qualified persons” pursuant to S-K 1300. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this Form 10-K, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are included as exhibits to, and incorporated by reference in this report.

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