Southern Copper CorporationJune 2010June 2010

0

I. Introduction

1

Safe Harbor Statement

This presentation contains certain statements that are neither reported financial results nor other

historical information These estimates are for ard looking statements ithin the meaning of thehistorical information. These estimates are forward-looking statements within the meaning of the

safe-harbor provisions of the Mexican securities laws. These forward-looking estimates are

subject to risk and uncertainties that could cause actual results to differ materially from the

expressed in the forward looking statements Many of these risks and uncertainties relate toexpressed in the forward-looking statements. Many of these risks and uncertainties relate to

factors that are beyond Grupo Mexico’s ability to control or estimate precisely, such as future

market conditions, commodity prices, the behavior of other market participants and the actions of

governmental regulators Readers are cautioned not to place undue reliance on these forwardgovernmental regulators. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of the date of this presentation. Grupo Mexico does not

undertake any obligation to publicly release any revision to these forward-looking estimates to

reflect events or circumstances after the date of this presentationreflect events or circumstances after the date of this presentation.

2

Management Presenters

Presenters TitleRaul Jacob Manager of Financial Planning & IR

3

Corporate Structure

80.0% (*)

Public Float

20.0% (*)

99.29 % 99.95 %

SCC Peru Branch Minera México

4(*) As of December 31, 2009

Copper – The Best Fundamental Story in Commodities

► Continued strong demand from China which grew from 26% in ’08 to 36% in ’09 Asia is now 57% of

Improving Fundamentals Copper Consumption by Region

Japan5%

All Other8%

from 26% in 08 to 36% in 09. Asia is now 57% of world demand

► Evidence of gradual OECD demand recovery

► China’s monetary tightening should not derail country's sustained growth and copper demand

Europe21%

USA

Asia Ex China21%

country's sustained growth and copper demand

► Limited production upside and falling grades result in a tight market going forward

CRU Feb 2010

9%

China36%

LME Copper Cash Price vs. Inventories Copper Consumption by End-use

Transport Equipment

12%Industrial Machinery

9%

Consumer Products

9%

1 200 000

1,400,000

1,600,000

3.50

4.00

4.50

Building

400,000

600,000

800,000

1,000,000

1,200,000

1.00

1.50

2.00

2.50

3.00

5AME, Brook Hunt & Calyon Estimates

Electrical42%

Building28%

-

200,000

0.00

0.50

2-Ja

n-08

23-J

an-0

812

-Feb

-08

4-M

ar-0

826

-Mar

-08

15-A

pr-0

86-

Ma y

-08

27-M

a y-0

816

-Jun

-08

8-Ju

l-08

28-J

ul-0

815

-Au g

-08

8-S

e p-0

826

-Se p

-08

16-O

ct-0

85-

Nov

-08

25-N

ov-0

816

-Dec

-08

8-Ja

n-09

29-J

an-0

919

-Feb

-09

11-M

ar-0

931

-Mar

-09

21-A

pr-0

911

-Ma y

-09

1-Ju

n-09

19-J

un-0

99-

Jul-0

929

-Jul

-09

18-A

u g-0

97-

Se p

-09

25-S

e p-0

915

-Oct

-09

4-N

ov-0

924

-Nov

-09

14-D

ec-0

95-

Jan-

1025

-Jan

-10

12-F

eb-1

04-

Mar

-10

24-M

ar-1

014

-Apr

-10

4-M

a y-1

024

-Ma y

-10

Registered inventories in tons 3 month price US$ per ton

Southern Copper Strengths

Highest copper reserves in the mining industry

Excellent organic growth projects

Low cost fully integrated operationsLow cost fully integrated operations

Experienced management team

Strong financial performance / investment grade

Outstanding dividend historyOutstanding dividend history

Good long-term copper & molybdenum fundamentals

6

II. Overview of Operations

7

Company Overview

MexicoCopper Reserves 1: 55.4 mmtProduction capacity: 680 ktpy

Santa EulaliaLa Caridad

Cananea

E2010 Copper Production: 500 ktSales: $ 4,400 MEBITDA: $ 2 400 M

Santa Barbara

CharcasSan Luis Potosi

San Martin

Peru

EBITDA: $ 2,400 M55% of Sales

1Q10 Cash Cost: $ -0.15 / lb.

Taxco

Copper open pit mines

Underground mines

Smelters and Refineries

Key

#1 copper company by reserves 2

#6 copper producer 3

Il

Smelters and Refineries#6 copper producer #12 copper smelter 3

Source: Company FilingsN t

Cuajone

T l

8

IloNotes: 1 Copper contained in reserves based on US$1.80 per pound of copper as of December 31, 20092 Based on available companies reports3 CRU information for 2009 + Cananea at full capacity

Toquepala

World’s Largest Copper Reserves Support SubstantialOrganic Growth Potential

Copper Reserves as Reported SCC Highlights

#1 position in reported copper reserves

#1 mine life among copper producers

#6 world’s largest producer of mined copper

55.452.7

36.340

50

60

s (M

t)

Highly diversified geographical presence

Four large-scale open-pit mines

Mine Life

27.123.1

16.7 15.710.8 9 0

20

30

Cop

per R

eser

ves

Mine Life10.8 9.0

0

10

SC

C

odel

co

reep

ort

BH

P

Ang

lo

mer

ican

Xst

rata

o Ti

nto

VA

LE

faga

sta 81

80

100

Source 10K Annual Rep. 10K 20F Annual Rep. Reserve Rep. 20F 20F Annual Rep.

Period 12/31/09 12/31/09 12/31/09 06/30/09 12/31/09 06/30/09 12/31/09 12/31/09 12/31/09

Cu Price $1.80 $1.98 $1.60 $3.14 (*) (*) (*) $2.91 $1.70

Co

Fr AA

m X

Rio

Ant

of

34 3425 21 21 18

20

40

60

9

0SCC Anglo

AmericanCodelco Freeport BHP

BillitonRio Tinto Xstrata

Geographic Footprint & Product Diversification

1Q-2010 Revenue by Product 1Q-2010 Revenue by Market

Europe17%

Asia

Silver5%

Zinc5%

Other2%

Acid2%

United States25%

Peru3%

Asia13%

Molybdenum16%

Other Latin American

22%

Mexico20%

3%

Copper70%

16%

10

Low Cost Operations

Cash Costs per Pound of Copper Produced Net of By-Products

Low Cost Drivers

Fully integrated low cost operations0 7 y g p

World class assets

Significant SX-EW production

Strong by-product credits

0.22 0.36

0.55

0.42

0.12

0.36

0.1

0.3

0.5

0.7

(US$

/lb)

Cost Structure (1)Operating Cash Cost per Pound of

Strong by-product credits

Management focus on cost efficiency-0.15

-0.3

-0.1

2008 2009 1Q09 2Q09 3Q09 4Q09 1Q10

Operating Cash Cost per Pound of Copper Produced

Operating Materials

13%

Fuel

Other11%

1.57

1 36 1 37 1 421.50

2.00

Fuel13%

P

Maintenance22%

1.36 1.30 1.37 1.42 1.36

0.50

1.00

1.50

(US

$/lb

)

1111(1) As of 1Q 2010

Power25%Labor

16%0.00

2008 2009 1Q09 2Q09 3Q09 4Q09 1Q10

III. Financial Overview

12

SCC Financial Summary

(US$ MM) 2008 2009 LTM 2010 1Q 2010

Copper Price (LME) US$ per pound 3.16 2.33 2.77 3.28Income Statement:Net Revenues $4,851 $3,734 $4,332 $1,219EBITDA 2,546 1,814 2,279 691EBITDA Margin 52% 49% 53% 57%Net Income 1,407 929 1,234 383Dividends paid per share 1 94 0 44 0 61 0 43Dividends paid per share 1.94 0.44 0.61 0.43Balance Sheet Statement:Cash & Equivalents $717 $772 $652 $652Total Assets 5,764 6,063 6,001 6,001Total Debt 1 1 290 1 280 1 280 1 280Total Debt 1,290 1,280 1,280 1,280Total Liabilities 2,369 2,169 2,088 2,088Total Shareholders' Equity 3,381 3,875 3,894 3,894Cash Flow Statement:Capital Expenditures $517 $415 $426 $75p p $ $ $ $Free Cash Flow 2 1,204 548 1,037 32Dividends paid to common shareholders 1,711 376 642 365

Net Debt / EBITDA 0.2x 0.3x 0.3x 0.9x

1313

1 Includes short-term and long-term debt2 Free Cash Flow defined as net cash from operating activities less capital expenditures

Investment Program to Increase ProductionCopper = +50% ; Molybdenum = +35%

Attractive Organic Growth Prospects

Tia MaríaSX/EW

Toquepala C t t

2011 2012 20172016Tía María Cuajone Ilo Refinery El Arco Buenavista AngangueoConcentrator Expansion Mine

Toquepala Expansion Cananea Los

2012 2014 2015 2016 20172013

SX/EW Concentrator Expansion

Toquepala Expansion Cananea LosConcentrator Ilo Smelter Moly Zinc ChancasExpansion La Caridad Expansion Circuit Refinery

Concentrator ExpansionExpansion Cananea New Cananea

SX/EW III Concentrator& SX/EW IV

$2.8Bn 2010-2012 Capex Program Overview Additional Copper Production

& SX/EW IVCananeaConcentratorExpansion

$ MM ‘000 MT

800

1000

1200

700830

1,020

$

$1,242

$1,000

$1,200

$1,400

0

200

400

600

2010 2011 2012 2013

500$802$752

$200

$400

$600

$800

14Source: SCC.

2010 2011 2012 2013

Existing Copper Production Estimate.   2011 onwards  includes production from Cananea

Production from new projects

$0

$

2010E 2011E 2012E

SCC Debt Amortization ScheduleMilli f USD f M 2010Millions of USD as of May 2010

Strong liquidity & no significant amortizations due until 2020

$1,000$1,100

Recent $1.5B Notes:2020 Notes : $0.4B @ 5.375%2040 Notes : $1.1B @ 6.750%@

$200

$400

$10 $10 $10 $10 $10$56

2009 2010 2011 2012 2013 2015 2020 2028 2035 2040

1515

Mitsui Yankee Bonds 10 & 30 year Bonds April 2010 Bonds

SCC’s Mayor Strengths

SCC is the Premier Copper Play

• World class assets in investment grade countries

• #1 in reserves with various exploration prospects

- Increasing copper production, reserves and continued exploration

• Capacity to deliver projects through flexible capital structure and significant cash g ti bilitgeneration capability

• Fully integrated low cost operations

- Strategic investments focused on cost reduction

- Securing long term energy supply at competitive prices

• Outstanding dividend history

• Experienced management with proven track record

$1,675$2,348 $2,529

$1,814.0$3,329 $3,825(in US$ millions)

SCC EBITDA and % Margin

$1,675 ,48.6%57.4%

54.1%61.0% 62.9% 52.1%

2004 2005 2006 2007 2008 200916

Operational Update - Cananea Minesite

Key Metal: Copper

C t t P d ti 125 kt d

Current Operating Capacity Largest copper mine worldwide in terms of

reserves

Cananea Minesite

Concentrator Production: 125 ktpd

SX-EW Plant Capacity: 55 ktpy

reserves

End of the labor struggle at Cananea could

trigger an investment of $2.1 billion to

expand Cananea’s production from 180ktpy Reserve Information

R (1)p p py

to 450ktpy of copper

Expansion

Reserves (1):

25.1 MT

Average Copper Grade:

Sulfide: 0.511%p Concentrator facilities expansion to produce

188ktpy of additional copper

New SX EW plant to produce 82ktpy of Production (kt)

Leachable Materials: 0.201%

Stripping Ratio: 2.44x

copper

Molybdenum circuit, 2 ktpy

175 164

17Source: SCCNote:(1) Reserves based on US$1.80 per pound of copper.

99

16 02005 2006 2007 2008 2009