Southern Copper CorporationSeptember 2010September 2010

0

I. Introduction

1

Management Presenters

Presenters TitleRaul Jacob Manager of Financial Planning & IR

2

Corporate Structure

100.0% (*)

Public Float

AMERICASMINING

CORPORATION

20.0% (*)

99.29 % 99.95 %

SCC Peru Branch Minera México

3(*) 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%

world demand

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

► Evidence of gradual OECD demand recovery

Europe21%

USA

Asia Ex China21%

► Evidence of gradual OECD demand recovery

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

CRU Feb 2010

USA9%

China36%

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

Transport Equipment

12%Industrial Machinery

9%

Consumer Products

9%

1,400,000

1,600,000

4.00

4.50

Building400,000

600,000

800,000

1,000,000

1,200,000

1.00

1.50

2.00

2.50

3.00

3.50

4AME, Brook Hunt & Calyon Estimates

Electrical42%

Building28%

-

200,000

0.00

0.50

2-Ja

n-08

22-A

pr-0

8

11-A

u g-0

8

26-N

ov-0

8

19-M

ar-0

9

6-Ju

l-09

19-O

ct-0

9

3-Fe

b-10

20-M

a y-1

0

3-S

e p-1

0

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

5

II. Overview of Operations

6

Company Overview

MexicoCopper Reserves 1: 55.4 mmtProduction capacity: 680 ktpy

Santa EulaliaLa Caridad

Cananea

E2010 Copper Production: 500 ktSales: $ 4,600 MEBITDA: $ 2 600 M

Santa Barbara

CharcasSan Luis Potosi

San Martin

Peru

EBITDA: $ 2,600 M57% of Sales

1H10 Cash Cost: $ 0.064/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

7

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 Substantial Organic 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

10.8 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

60

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

0

20

40

SCC A l C d l F t BHP Ri Ti t X t t

8

SCC Anglo American

Codelco Freeport BHP Billiton

Rio Tinto Xstrata

Geographic Footprint & Product Diversification

1H-2010 Revenue by Product 1H-2010 Revenue by Market

Europe19%

Asia

Silver5%

Zinc5%

Other2%

Acid2%

United States24%Peru

3%

s a12%

Molybdenum15%

Other Latin American

22%

Mexico20%Copper

71%

15%

22%

9

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

0.060.1

0.3

0.5

(US

$/lb

)

Cost Structure (1)Operating Cash Cost per Pound of

Strong by-product credits

Management focus on cost efficiency-0.25-0.3

-0.12007 2008 2009 6 mos. 2010

Operating Cash Cost per Pound of Copper Produced

Operating Materials

16%

Other12%

1.57 1 53

2.00

Fuel13%Maintenance

19%

1.29

1.571.36

1.53

0.50

1.00

1.50

(US$

/lb)

1010(1) As of 2Q 2010

Power24%

Labor16%

0.00

0.50

2007 2008 2009 6 mos. 2010

Operational Update - Cananea Minesite

Key Metal: Copper

C t t P d ti 125 kt d

Operating Capacity Largest copper mine worldwide in terms of

reserves

Cananea Minesite

Concentrator Production: 125 ktpd

SX-EW Plant Capacity: 55 ktpy

reserves

Board of Directors approved investment of

$2.1 billion to expand Cananea’s production

from 180ktpy to 450ktpy of copperReserve Information

R (1) 25 1 MTpy py pp

Estimated repair cost : US$ 120 M

Expansion

Reserves (1): 25.1 MT

Average Copper Grade:

Sulfide: 0.511%

Leachable Materials: 0.201%p Concentrator facilities expansion to produce

188ktpy of additional copper

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

Stripping Ratio: 2.44x

copper

Molybdenum circuit, 2 ktpy164

99 150 180

11Source: SCCNote:(1) Reserves based on US$1.80 per pound of copper.

16 0 20

2006 2007 2008 2009 E 2010 E 2011 E 2012

III. Financial Overview

12

SCC Financial Summary

(US$ MM) 2008 2009 LTM 2010 1H2010

Copper Price (LME) US$ per pound 3.16 2.33 3.04 3.23Income Statement:Net Revenues $4 851 $3 734 $4 680 $2 393Net Revenues $4,851 $3,734 $4,680 $2,393EBITDA 2,546 1,814 2,512 1,304EBITDA Margin 52% 49% 54% 55%Net Income 1,407 929 1,372 697Dividends paid per share 1.94 0.44 1.16 0.88Balance Sheet Statement:Cash & Equivalents $717 $772 $2,145 $2,145Total Assets 5,764 6,063 7,449 7,449Total Debt 1 1,290 1,280 2,765 2,765Total Liabilities 2,369 2,169 3,605 3,605Total Shareholders' Equity 3,381 3,875 3,825 3,825Cash Flow Statement:Capital Expenditures $517 $415 $377 $168Free Cash Flow 2 1 204 548 1 093 667Free Cash Flow 1,204 548 1,093 667Dividends paid to common shareholders 1,711 376 986 748

Net Debt / EBITDA 0.2x 0.3x 0.2x 0.5x

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

Solid Financial Performance

Top Tier Margins and Conservative Leverage for Increased Financial Flexibility

2010E Total Debt / EBITDA (x)2010 EBITDA Margin (%) No Amortizations Until 2015

58%

63%

Vale

Antofagasta

1

2

$5

$10

2010

20110.66

0.60

Antofagasta

Freeport

2

1

49%

54%

Freeport

SCCO

1

1 $10

$10

2012

20131.26

1.06

BHP

SCCO

g

1

3

36%

44%

Anglo

BHP

1

3

3$56

$200

$400

2015

2020

20282.11

2.03

Rio Tinto

Xstrata3

3

26%

30%

Rio Tinto

Xstrata

3$1,000

$1,100

2035

20404.22

3.19

Vale

Anglo

1

3

14

Source: Company Reports1 1H10 Results 2 1Q10 Results3 2009 Results

Source: Company Reports1 1H10 Results 2 1Q10 Results3 2009 Results

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

Attractive Organic Growth Prospects - Increase Copper Capacity 50% & Molybdenum Production 35% by 2013

Tia MaríaSX/EW

Toquepala C t t

2011 2012 20172016

Tía María SX/EW2H12 $934M

Cuajone - CuC

2012 2015 2016 2017 and on2013Cananea – Cu El Arco

Il R fi EEmpalmeSX/EW Concentrator

Expansion2H12 - $934M 120K Tons

Concentrator Expansion 1Q13 - $300M 72K Tons Toquepala

Concentrator Exp. 2H12 - $600M 100K Tons Cu –

Pilares Mine - Cu1Q13 - $195M

SX/EX IV Plant2Q15 - $300M 50K Tons

Cananea – CuConcentrator

Ilo Refinery Exp.Ilo Smelter Exp.

Los Chancas

Angangueo

B i tEmpalme

pCu Smelter2Q16 - $800M350K Tons Cap.

2010 2013 C P g O i Additi l C P d ti

100K Tons Cu –3.1K Tons MoCananea SX/EW III4Q12 -$180M 32K Tons

CananeaMolybdenum Plant 1Q13 - $30M 2K Tons Mo

40K Tons Concentrator3Q15 - $1,200M 188K Tons

BuenavistaMine

Zinc RefineryMine

Cu Refinery2Q16 - $500M330K Tons Cap.

2010-2013 Capex Program Overview$ MM ‘000 MT

Additional Copper Production

1,2001 0001200

1500

800

1000

1200

8021,000

811

0

300

600

900

1200

0

200

400

600

2010 2011 2012 2013 2014

15Source: SCC.

02010 2011 2012 2013

2010 2011 2012 2013 2014

Existing Copper Production Estimate.   2011 onwards  includes production from Cananea

Production from New Projects

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

• Capacity to deliver projects through flexible capital structure and significant cash generation capability

• Fully integrated low cost operations

- Strategic investments focused on cost competitiviness

• Outstanding dividend history

• Experienced management with proven track record

(i US$ illi )SCC EBITDA and % Margin

(in US$ millions)

$2,348

$3,329$3,825

$2,529

$1,814$2,512

16

57.4% 61.0% 62.9% 52.1% 48.6%54.0%

2005 2006 2007 2008 2009 LTM 2010

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.

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Proposed Combination of SCC and ASARCO under Ownership of AMC

Pre Transaction Post TransactionSimplified Overview Simplified Overview

Grupo M é xico

83.4%

Public Stockholders

16.6%

Americas Mining

Grupo M é xicoPublic Stockholders

Americas Mining

Grupo M é xico

100%

Public StockholdersAmericas Mining

Corp.

Grupo M é xico

Public StockholdersAmericas Mining

Corp.

Simplified Overview Simplified Overview

Southern Copper ASARCO

100% 100%

Americas Mining Corp.

Southern Copper ASARCO

Americas Mining Corp.

Southern Copper ASARCO

80% 100%

Southern Copper ASARCO

20%

Key Transaction Terms

► 1.237 AMC shares per SCC share

► ~16.6% aggregate ownership of newly-listed AMC by SCC’s public stockholders, as compared to ~20% aggregate ownership of SCC

► Assumes an implied ASARCO equity value of ~$5.94Bn

► Results in publicly listed (NYSE, Lima and Mexico Stock Exchange) AMC with wholly-owned subsidiaries SCC and ASARCO

18