{"url_path":"/sec/scco/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-27","source_url":"https://www.sec.gov/Archives/edgar/data/1001838/0001104659-26-021492-index.html","accession_number":"0001104659-26-021492","cik":"0001001838","ticker":"SCCO","issuer_name":"SOUTHERN COPPER CORP/","edgar_url":"https://www.sec.gov/Archives/edgar/data/1001838/0001104659-26-021492-index.html","primary_entity_key":"0001001838","primary_entity_name":"SOUTHERN COPPER CORP/"},"word_count":36206,"has_tables":true,"body_markdown":"**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA**\n\n​\n\n**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n​\n\nTo the Board of Directors and Stockholders of Southern Copper Corporation:\n\n​\n\n**Opinion on the Consolidated Financial Statements**\n\n​\n\nWe have audited the accompanying consolidated balance sheets of Southern Copper Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2025 and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.\n\n​\n\nWe have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 27, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.\n\n​\n\n**Basis for Opinion**\n\n​\n\nThese consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n​\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n​\n\n**Critical Audit Matter**\n\n​\n\nThe critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\n​\n\n​\n\n127\n\n[Table of Contents](#TOC)\n\n**Ore stockpiles on Leach Pads – Capitalization of costs attributable to leachable material - Refer to Note 4 “Inventories” to the consolidated financial statements**\n\n​\n\n**Critical Audit Matter Description**\n\n​\n\nThe Company has Ore stockpiles on leach pads related to the capitalization of costs attributable to leachable material mainly from the Mexican operations presented as part of the current inventory and as part of the non-current assets.\n\n​\n\nThe capitalization of costs in the inventory of Ore stockpiles in leach pads is based on the allocation of copper content recoverable between ore and leach material. The Company used the copper content grade, the solubility index and the recovery rate when determining the allocation of costs to be capitalized related to leachable material. The leachable material inventory determined could be misstated if the copper content grade, the solubility index and the recovery rate used by the Company does not correspond to the actual results obtained from the laboratories and engineering studies.\n\n​\n\nWe identified the capitalization of costs attributable to leachable material from Mexican operations as a critical audit matter because of the complexity of the process and judgments made by management to support its assertion that these capitalized costs are probable of recovery. Addressing this matter required a high degree of auditor judgement and significant audit effort, which includes the involvement of our technical specialists in evaluating whether the audit evidence obtained supports management’s assertion that these costs are probable of future recovery.\n\n​\n\n**How the Critical Audit Matter Was Addressed in the Audit**\n\n​\n\nOur audit procedures related to management’s assertions that extraction and production costs are capitalized in the appropriate amounts included the following, among others:\n\n​\n\n●We obtained an understanding and evaluated the Company’s methodology for determining the productions costs capitalized and the estimates of recoverable mineral content contained in the leaching material deposited in the leaching pads.\n\n●We tested the effectiveness of controls over management’s review of the copper content grade, the solubility index and the recovery rate used to determine the monthly average rate to be used in the calculation, which included an evaluation of the competence, objectivity and authority of the personnel involved and management’s experts in the determination of the copper content grade, the solubility index and the recovery rate; the identification of costs to be capitalized as part of the leaching process; and reconciliations of mineral received for the leaching process.\n\n●We tested the effectiveness of general IT controls for the relevant systems identified that process information that is considered significant in the calculation of the Company’s estimate.\n\n●We independently recalculated the monthly average copper content grade and the monthly average solubility index to obtain the reasonability of the inputs used in the estimate.\n\n●We involved technical specialists to evaluate the methodology and inputs used by the Company to determine the recoverability of copper from the leach pads and challenge, from a technical perspective, if the balance as of December 31, 2025 represents copper that will be recovered as estimated by the Company. Such involvement also consisted of site visits to the Mexican mining operations where ore stockpiles on leach pads existed.\n\n​\n\n​\n\nGalaz, Yamazaki, Ruiz Urquiza, S.C.\n\nAffiliate of a Member Firm of Deloitte Touche Tohmatsu Limited\n\n​\n\n​\n\n​\n\n/s/ Galaz, Yamazaki, Ruiz Urquiza, S.C.\n\n​\n\nMexico City, Mexico\n\n​\n\nFebruary 27, 2026\n\n​\n\nWe have served as the Company’s auditor since 2009\n\n​\n\n​\n\n​\n\n​\n\n128\n\n[Table of Contents](#TOC)\n\n**Southern Copper Corporation**\n\n**and Subsidiaries**\n\n​\n\n**CONSOLIDATED STATEMENTS OF EARNINGS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, (in millions, except for per share amounts)**\n\n​\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet sales (including sales to related parties, see note 17)\n\n​\n\n$\n\n13,420.0\n\n​\n\n$\n\n11,433.4\n\n​\n\n$\n\n9,895.8\n\nOperating cost and expenses:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCost of sales (exclusive of depreciation, amortization and depletion shown separately below)\n\n​\n\n \n\n5,359.2\n\n​\n\n \n\n4,841.4\n\n​\n\n \n\n4,687.7\n\nSelling, general and administrative\n\n​\n\n \n\n137.8\n\n​\n\n \n\n130.5\n\n​\n\n \n\n127.2\n\nDepreciation, amortization and depletion\n\n​\n\n \n\n868.4\n\n​\n\n \n\n845.9\n\n​\n\n \n\n833.6\n\nExploration\n\n​\n\n \n\n52.8\n\n​\n\n \n\n60.9\n\n​\n\n \n\n55.0\n\nTotal operating costs and expenses\n\n​\n\n \n\n6,418.3\n\n​\n\n \n\n5,878.7\n\n​\n\n \n\n5,703.5\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating income\n\n​\n\n \n\n7,001.7\n\n​\n\n \n\n5,554.7\n\n​\n\n \n\n4,192.3\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest expense\n\n​\n\n \n\n(416.7)\n\n​\n\n \n\n(376.5)\n\n​\n\n \n\n(376.3)\n\nCapitalized interest\n\n​\n\n \n\n47.4\n\n​\n\n \n\n42.4\n\n​\n\n \n\n49.6\n\nInterest income\n\n​\n\n \n\n199.7\n\n​\n\n \n\n131.4\n\n​\n\n \n\n86.6\n\nOther income (expense)\n\n​\n\n \n\n(47.7)\n\n​\n\n \n\n5.5\n\n​\n\n \n\n3.6\n\nIncome before income taxes\n\n​\n\n \n\n6,784.3\n\n​\n\n \n\n5,357.4\n\n​\n\n \n\n3,955.8\n\nIncome taxes (including royalty taxes, see Note 7)\n\n​\n\n \n\n2,504.1\n\n​\n\n \n\n2,027.4\n\n​\n\n \n\n1,578.0\n\nDeferred income taxes\n\n​\n\n​\n\n(33.9)\n\n​\n\n​\n\n(52.2)\n\n​\n\n​\n\n(59.1)\n\nNet income before equity earnings of affiliate\n\n​\n\n \n\n4,314.2\n\n​\n\n \n\n3,382.1\n\n​\n\n \n\n2,436.9\n\nEquity earnings of affiliate, net of income tax\n\n​\n\n \n\n34.0\n\n​\n\n \n\n6.4\n\n​\n\n \n\n(2.2)\n\nNet income\n\n​\n\n \n\n4,348.2\n\n​\n\n \n\n3,388.6\n\n​\n\n \n\n2,434.7\n\nLess: Net income attributable to the non-controlling interest\n\n​\n\n \n\n13.3\n\n​\n\n \n\n11.8\n\n​\n\n \n\n9.5\n\nNet income attributable to SCC\n\n​\n\n$\n\n4,334.9\n\n​\n\n$\n\n3,376.8\n\n​\n\n$\n\n2,425.2\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPer common share amounts attributable to SCC:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet earnings-basic and diluted\n\n​\n\n$\n\n5.24\n\n​\n\n$\n\n4.21\n\n​\n\n$\n\n3.05\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWeighted average shares outstanding-basic and diluted\n\n​\n\n \n\n826.6\n\n​\n\n \n\n802.9\n\n​\n\n \n\n795.3\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n129\n\n[Table of Contents](#TOC)\n\n​\n\n**Southern Copper Corporation**\n\n**and Subsidiaries**\n\n​\n\n**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n​\n\n​\n\n**(in millions)**\n\nCOMPREHENSIVE INCOME:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income and comprehensive income\n\n​\n\n$\n\n4,348.2\n\n​\n\n$\n\n3,388.6\n\n​\n\n$\n\n2,434.7\n\nOther comprehensive income (loss) net of tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n—Decrease in pension and other post-retirement benefits (net of income tax of $5.3, $3.8 and $(0.4), respectively)\n\n​\n\n \n\n5.7\n\n​\n\n \n\n5.8\n\n​\n\n \n\n1.0\n\nNet loss recognized due to pension plan termination, net of income tax of $(2.1), (see Note 12)\n\n​\n\n \n\n4.9\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\nTotal other comprehensive income\n\n​\n\n \n\n10.5\n\n​\n\n \n\n5.8\n\n​\n\n \n\n1.0\n\nTotal comprehensive income\n\n​\n\n \n\n4,358.7\n\n​\n\n \n\n3,394.4\n\n​\n\n \n\n2,435.7\n\nComprehensive income attributable to the non-controlling interest\n\n​\n\n \n\n13.3\n\n​\n\n \n\n11.8\n\n​\n\n \n\n9.5\n\nComprehensive income attributable to SCC\n\n​\n\n$\n\n4,345.4\n\n​\n\n$\n\n3,382.6\n\n​\n\n$\n\n2,426.2\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\n​\n\n130\n\n[Table of Contents](#TOC)\n\n**Southern Copper Corporation**\n\n**and Subsidiaries**\n\n​\n\n**CONSOLIDATED BALANCE SHEETS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n​\n\n​\n\n**(in millions)**\n\nASSETS\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent assets:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n​\n\n$\n\n4,304.6\n\n​\n\n$\n\n3,258.1\n\nShort-term investments\n\n​\n\n \n\n604.6\n\n​\n\n \n\n245.3\n\nAccounts receivable trade\n\n​\n\n \n\n1,951.2\n\n​\n\n \n\n1,189.6\n\nAccounts receivable other (including related parties 2025- $16.2 and 2024 - $13.5)\n\n​\n\n \n\n71.4\n\n​\n\n \n\n54.2\n\nInventories\n\n​\n\n \n\n1,058.1\n\n​\n\n \n\n1,048.9\n\nPrepaid taxes\n\n​\n\n​\n\n331.2\n\n​\n\n​\n\n346.7\n\nOther current assets\n\n​\n\n \n\n31.3\n\n​\n\n \n\n31.7\n\nTotal current assets\n\n​\n\n \n\n8,352.5\n\n​\n\n \n\n6,174.3\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProperty and mine development, net\n\n​\n\n \n\n10,272.2\n\n​\n\n \n\n9,883.3\n\nOre stockpiles on leach pads\n\n​\n\n \n\n1,114.5\n\n​\n\n \n\n1,145.8\n\nIntangible assets, net\n\n​\n\n \n\n122.4\n\n​\n\n \n\n124.6\n\nRight-of-use assets\n\n​\n\n \n\n700.8\n\n​\n\n \n\n739.5\n\nDeferred income tax\n\n​\n\n \n\n336.3\n\n​\n\n \n\n310.6\n\nEquity method investment\n\n​\n\n \n\n134.5\n\n​\n\n \n\n111.9\n\nOther non-current assets\n\n​\n\n \n\n348.2\n\n​\n\n \n\n223.5\n\nTotal assets\n\n​\n\n$\n\n21,381.4\n\n​\n\n$\n\n18,713.5\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLIABILITIES\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent liabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent portion of long-term debt\n\n​\n\n$\n\n—\n\n​\n\n$\n\n499.8\n\nAccounts payable (including related parties 2025 - $138.4 and 2024 - $49.2)\n\n​\n\n​\n\n861.5\n\n​\n\n​\n\n615.2\n\nAccrued income taxes\n\n​\n\n \n\n634.4\n\n​\n\n \n\n635.2\n\nAccrued workers’ participation\n\n​\n\n \n\n404.6\n\n​\n\n \n\n280.8\n\nAccrued interest\n\n​\n\n \n\n115.0\n\n​\n\n \n\n97.1\n\nLease liabilities current\n\n​\n\n​\n\n86.5\n\n​\n\n​\n\n81.8\n\nOther accrued liabilities\n\n​\n\n \n\n43.0\n\n​\n\n \n\n38.1\n\nTotal current liabilities\n\n​\n\n \n\n2,145.1\n\n​\n\n \n\n2,248.1\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLong-term debt, net of current portion\n\n​\n\n \n\n6,750.7\n\n​\n\n \n\n5,758.5\n\nLease liabilities\n\n​\n\n​\n\n576.3\n\n​\n\n​\n\n657.6\n\nDeferred income taxes\n\n​\n\n \n\n130.5\n\n​\n\n \n\n124.5\n\nNon-current taxes payable\n\n​\n\n​\n\n97.1\n\n​\n\n​\n\n104.9\n\nOther liabilities and reserves\n\n​\n\n \n\n105.7\n\n​\n\n \n\n35.6\n\nAsset retirement obligation\n\n​\n\n \n\n471.1\n\n​\n\n \n\n546.1\n\nTotal non-current liabilities\n\n​\n\n \n\n8,131.4\n\n​\n\n \n\n7,227.3\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommitments and contingencies (Note 13)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nSTOCKHOLDERS’ EQUITY (NOTE 14)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommon stock par value $0.01; shares authorized, 2025 and 2024–2,000; shares issued, 2025 and 2024–884.6\n\n​\n\n \n\n8.8\n\n​\n\n \n\n8.8\n\nAdditional paid-in capital\n\n​\n\n \n\n7,257.9\n\n​\n\n \n\n5,026.0\n\nRetained earnings\n\n​\n\n \n\n5,797.2\n\n​\n\n \n\n6,839.6\n\nAccumulated other comprehensive income\n\n​\n\n \n\n8.3\n\n​\n\n \n\n(2.2)\n\nTreasury stock, at cost, common shares\n\n​\n\n \n\n(2,034.2)\n\n​\n\n \n\n(2,700.7)\n\nTotal Southern Copper Corporation stockholders’ equity\n\n​\n\n \n\n11,038.1\n\n​\n\n \n\n9,171.6\n\nNon-controlling interest\n\n​\n\n \n\n66.8\n\n​\n\n \n\n66.6\n\nTotal equity\n\n​\n\n \n\n11,104.9\n\n​\n\n \n\n9,238.1\n\nTotal liabilities and equity\n\n​\n\n$\n\n21,381.4\n\n​\n\n$\n\n18,713.5\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n131\n\n[Table of Contents](#TOC)\n\n**Southern Copper Corporation**\n\n**and Subsidiaries**\n\n​\n\n**CONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the Year Ended December 31, **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n​\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOPERATING ACTIVITIES\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income\n\n​\n\n$\n\n4,348.2\n\n​\n\n$\n\n3,388.6\n\n​\n\n$\n\n2,434.7\n\nAdjustments to reconcile net earnings to net cash provided from operating activities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDepreciation, amortization and depletion\n\n​\n\n \n\n868.4\n\n​\n\n \n\n845.9\n\n​\n\n \n\n833.6\n\nEquity earnings of affiliate, net of dividends received\n\n​\n\n \n\n(22.6)\n\n​\n\n \n\n(3.7)\n\n​\n\n \n\n2.6\n\nLoss on foreign currency transaction effect\n\n​\n\n \n\n42.9\n\n​\n\n \n\n13.7\n\n​\n\n \n\n10.4\n\nBenefit for deferred income taxes\n\n​\n\n \n\n(33.9)\n\n​\n\n \n\n(52.2)\n\n​\n\n \n\n(59.1)\n\nNet charges for asset retirement obligations, including accretion\n\n​\n\n​\n\n(24.0)\n\n​\n\n​\n\n(24.4)\n\n​\n\n​\n\n26.1\n\nOther, net\n\n​\n\n \n\n85.9\n\n​\n\n \n\n15.2\n\n​\n\n \n\n14.8\n\nChange in operating assets and liabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Increase) decrease in accounts receivable trade\n\n​\n\n \n\n(761.6)\n\n​\n\n \n\n(48.5)\n\n​\n\n \n\n253.0\n\nDecrease (increase) in inventories\n\n​\n\n \n\n22.1\n\n​\n\n \n\n(56.1)\n\n​\n\n \n\n(60.4)\n\nIncrease in accounts payable and accrued liabilities\n\n​\n\n \n\n326.2\n\n​\n\n \n\n385.7\n\n​\n\n \n\n152.1\n\n(Increase) in other operating assets and liabilities\n\n​\n\n \n\n(99.4)\n\n​\n\n \n\n(42.4)\n\n​\n\n \n\n(34.7)\n\nNet cash provided by operating activities\n\n​\n\n \n\n4,752.1\n\n​\n\n \n\n4,421.7\n\n​\n\n \n\n3,573.1\n\nINVESTING ACTIVITIES\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCapital expenditures\n\n​\n\n \n\n(1,325.3)\n\n​\n\n \n\n(1,027.3)\n\n​\n\n \n\n(1,008.6)\n\nPurchase of short-term investments\n\n​\n\n \n\n(2,053.6)\n\n​\n\n \n\n(611.8)\n\n​\n\n \n\n(808.7)\n\nProceeds on sale of short-term investments\n\n​\n\n \n\n1,694.3\n\n​\n\n \n\n965.8\n\n​\n\n \n\n417.7\n\nOther, net\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1.2\n\nNet cash used in investing activities\n\n​\n\n \n\n(1,684.6)\n\n​\n\n \n\n(673.3)\n\n​\n\n \n\n(1,398.4)\n\nFINANCING ACTIVITIES\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProceeds from issuance of debt\n\n​\n\n​\n\n993.8\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nPayments of debt issuance costs\n\n​\n\n​\n\n(6.4)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nRepayments of debt\n\n​\n\n \n\n(500.0)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nCash dividends paid to common stockholders\n\n​\n\n \n\n(2,485.1)\n\n​\n\n \n\n(1,637.2)\n\n​\n\n \n\n(3,092.4)\n\nDistributions to non-controlling interest\n\n​\n\n \n\n(9.9)\n\n​\n\n \n\n(8.3)\n\n​\n\n \n\n(9.1)\n\nOther, net\n\n​\n\n \n\n0.3\n\n​\n\n \n\n0.4\n\n​\n\n \n\n0.3\n\nNet cash used in financing activities\n\n​\n\n \n\n(2,007.2)\n\n​\n\n \n\n(1,645.2)\n\n​\n\n \n\n(3,101.2)\n\nEffect of exchange rate changes on cash and cash equivalents\n\n​\n\n \n\n(13.7)\n\n​\n\n \n\n3.4\n\n​\n\n \n\n8.3\n\nIncrease (decrease) in cash and cash equivalents\n\n​\n\n \n\n1,046.5\n\n​\n\n \n\n2,106.6\n\n​\n\n \n\n(918.2)\n\nCash and cash equivalents, at beginning of year\n\n​\n\n \n\n3,258.1\n\n​\n\n \n\n1,151.5\n\n​\n\n \n\n2,069.7\n\nCash and cash equivalents, at end of year\n\n​\n\n$\n\n4,304.6\n\n​\n\n$\n\n3,258.1\n\n​\n\n$\n\n1,151.5\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n​\n\n​\n\n**(in millions)**\n\n*Supplemental disclosure of cash flow information:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash paid during the year for:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest\n\n​\n\n$\n\n388.2\n\n​\n\n$\n\n369.7\n\n​\n\n$\n\n369.7\n\nIncome taxes:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPeru\n\n​\n\n$\n\n1,512.2\n\n​\n\n$\n\n831.2\n\n​\n\n$\n\n823.5\n\nMexico\n\n​\n\n$\n\n987.7\n\n​\n\n$\n\n759.6\n\n​\n\n$\n\n610.5\n\nWorkers’ participation\n\n​\n\n$\n\n328.0\n\n​\n\n$\n\n262.2\n\n​\n\n$\n\n258.2\n\n*Supplemental schedule of non-cash operating, investing and financing activities:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDecrease in pension and other post-retirement benefits\n\n​\n\n$\n\n5.7\n\n​\n\n$\n\n5.8\n\n​\n\n$\n\n1.0\n\nCapital expenditures incurred but not yet paid\n\n​\n\n$\n\n85.0\n\n​\n\n$\n\n19.8\n\n​\n\n$\n\n16.1\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n132\n\n[Table of Contents](#TOC)\n\n**Southern Copper Corporation**\n\n**and Subsidiaries**\n\n​\n\n**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n​\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTOTAL EQUITY, beginning of year\n\n​\n\n$\n\n9,238.1\n\n​\n\n$\n\n7,481.2\n\n​\n\n$\n\n8,146.9\n\nSTOCKHOLDERS’ EQUITY, beginning of year\n\n​\n\n \n\n9,171.6\n\n​\n\n \n\n7,418.1\n\n​\n\n \n\n8,084.2\n\nCAPITAL STOCK:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning and end of year:\n\n​\n\n \n\n8.8\n\n​\n\n \n\n8.8\n\n​\n\n \n\n8.8\n\nADDITIONAL PAID-IN CAPITAL:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning of year\n\n​\n\n \n\n5,026.0\n\n​\n\n \n\n3,532.8\n\n​\n\n \n\n3,489.7\n\nDividends paid in common stock\n\n​\n\n​\n\n2,184.3\n\n​\n\n​\n\n1,510.2\n\n​\n\n​\n\n—\n\nOther activity of the period\n\n​\n\n \n\n47.5\n\n​\n\n \n\n(17.0)\n\n​\n\n \n\n43.1\n\nBalance at end of year\n\n​\n\n \n\n7,257.9\n\n​\n\n \n\n5,026.0\n\n​\n\n \n\n3,532.8\n\nTREASURY STOCK:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nSouthern Copper common shares\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning of the year\n\n​\n\n \n\n(2,337.3)\n\n​\n\n \n\n(2,766.6)\n\n​\n\n \n\n(2,766.9)\n\nDividends paid in common stock\n\n​\n\n \n\n711.6\n\n​\n\n \n\n428.9\n\n​\n\n \n\n—\n\nUsed for corporate purposes\n\n​\n\n \n\n0.3\n\n​\n\n \n\n0.4\n\n​\n\n \n\n0.3\n\nBalance at end of year\n\n​\n\n \n\n(1,625.4)\n\n​\n\n \n\n(2,337.3)\n\n​\n\n \n\n(2,766.6)\n\nParent Company common shares\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning of year\n\n​\n\n \n\n(363.4)\n\n​\n\n \n\n(382.4)\n\n​\n\n \n\n(340.7)\n\nOther activity, including dividend, interest and foreign currency transaction effect\n\n​\n\n \n\n(45.4)\n\n​\n\n \n\n19.0\n\n​\n\n \n\n(41.7)\n\nBalance at end of year\n\n​\n\n \n\n(408.8)\n\n​\n\n \n\n(363.4)\n\n​\n\n \n\n(382.4)\n\nTreasury stock balance at end of year\n\n​\n\n \n\n(2,034.2)\n\n​\n\n \n\n(2,700.7)\n\n​\n\n \n\n(3,149.0)\n\nRETAINED EARNINGS:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning of year\n\n​\n\n \n\n6,839.7\n\n​\n\n \n\n7,033.5\n\n​\n\n \n\n7,702.3\n\nNet earnings\n\n​\n\n \n\n4,334.9\n\n​\n\n \n\n3,376.8\n\n​\n\n \n\n2,425.2\n\nCash dividends declared and paid, common stock, per share, 2025- $3.10, 2024– $2.10, 2023 - $4.00\n\n​\n\n \n\n(2,485.1)\n\n​\n\n \n\n(1,637.2)\n\n​\n\n \n\n(3,092.4)\n\nDividends paid in common stock\n\n​\n\n​\n\n(2,895.9)\n\n​\n\n​\n\n(1,939.2)\n\n​\n\n​\n\n—\n\nOther activity of the period\n\n​\n\n​\n\n3.7\n\n​\n\n​\n\n5.8\n\n​\n\n​\n\n(1.6)\n\nBalance at end of year\n\n​\n\n \n\n5,797.2\n\n​\n\n \n\n6,839.7\n\n​\n\n \n\n7,033.5\n\nACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance at beginning of year\n\n​\n\n \n\n(2.2)\n\n​\n\n \n\n(8.0)\n\n​\n\n \n\n(9.0)\n\nOther comprehensive income (loss)\n\n​\n\n \n\n10.5\n\n​\n\n \n\n5.8\n\n​\n\n \n\n1.0\n\nBalance at end of year\n\n​\n\n \n\n8.3\n\n​\n\n \n\n(2.2)\n\n​\n\n \n\n(8.0)\n\nSTOCKHOLDERS’ EQUITY, end of year\n\n​\n\n \n\n11,038.1\n\n​\n\n \n\n9,171.6\n\n​\n\n \n\n7,418.1\n\nNON-CONTROLLING INTEREST, beginning of year\n\n​\n\n \n\n66.6\n\n​\n\n \n\n63.1\n\n​\n\n \n\n62.7\n\nNet earnings\n\n​\n\n \n\n13.3\n\n​\n\n \n\n11.8\n\n​\n\n \n\n9.5\n\nDistributions paid\n\n​\n\n \n\n(9.9)\n\n​\n\n​\n\n(8.3)\n\n​\n\n​\n\n(9.1)\n\nOther activity\n\n​\n\n \n\n(3.2)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nNON-CONTROLLING INTEREST, end of year\n\n​\n\n \n\n66.8\n\n​\n\n \n\n66.6\n\n​\n\n \n\n63.1\n\nTOTAL EQUITY, end of year\n\n​\n\n$\n\n11,104.9\n\n​\n\n$\n\n9,238.1\n\n​\n\n$\n\n7,481.2\n\n​\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\n133\n\n[Table of Contents](#TOC)\n\n**NOTE 1—DESCRIPTION OF THE BUSINESS:**\n\n​\n\nThe Company is 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 the Company’s capital stock. The consolidated financial statements presented herein consist of the accounts of Southern Copper Corporation (\"SCC\", \"Southern Copper\" or the “Company”), a Delaware corporation, and its subsidiaries. The Company is an integrated producer of copper and other minerals, and operates mining, smelting and refining facilities in Peru and Mexico. The Company conducts its primary operations in Peru through a registered branch (the \"Peruvian Branch\" or “Branch” or “SPCC Peru Branch”). The Peruvian Branch is not a corporation separate from the Company. The Company's Mexican operations are conducted through subsidiaries. The Company also conducts exploration activities in Argentina, Chile, Mexico and Peru.\n\n​\n\n​\n\n​\n\n​\n\n**NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:**\n\n​\n\n*Principles of consolidation—*\n\n​\n\nThe consolidated financial statements include the accounts of subsidiaries of which the Company has voting control, in accordance with Accounting Standards Codification (“ASC”) 810 *Consolidation*. Such financial statements are prepared in accordance with accounting principles generally accepted in the United States (\"U.S. GAAP\").\n\n​\n\n*Use of estimates—*\n\n​\n\nThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the carrying value of mineral reserves that are the basis for future cash flow estimates and amortization calculations; environmental reclamation, closure and retirement obligations; estimates of recoverable copper in mill and leach stockpiles; asset impairments (including estimates of future cash flows); unrecognized tax benefits; valuation allowances for deferred tax assets; and fair value of financial instruments. Management bases its estimates on the Company's historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.\n\n​\n\n*Revenue recognition—*\n\n​\n\nThe Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company's revenues are measured based on consideration specified in the contract with each customer. Disclosures regarding disaggregation of revenues and contract balances are disclosed within Note 18 \"Segment and related information\".\n\n​\n\nThe Company’s marketing strategy and annual sales planning emphasize developing and maintaining long-term customer relationships. Generally, 80% to 90% of the Company’s metal production is sold under annual or longer-term contracts, which specify a volume of mineral to be sold over a stated period and delivery schedule; the price at which mineral will be sold at each delivery date is generally determined by the weekly or monthly average rate of the commodity published by major metal exchanges at specific dates stipulated within each contract. The Company considers each contract to be a single performance obligation, represented by the delivery of a series of distinct goods that are substantially the same, with the same pattern of transfer to the Company’s customers. The Company concluded this as, based on the nature of its contracts, customers receive the benefit of mineral sold as it is shipped per the terms of the contracts at each contractual delivery date. Likewise, each shipment of product represents the same measure of progress as other shipments within the contract. Accordingly, the Company recognizes revenues for each contract over the period of time in which the specified quantity of mineral is delivered. In doing so, the Company considers that it has a right to consideration from its customers in an amount that corresponds directly to the value transferred to those customers that being the quantity of mineral delivered at the price per unit delivered. Accordingly, the Company\n\n134\n\n[Table of Contents](#TOC)\n\nrecognizes revenue at the amount to which it has the right to invoice (the invoice practical expedient), as it believes that this method is a faithful depiction of the transfer of goods to its customers.\n\n​\n\nFor contracts with a term greater than one year, the Company is unable to disclose an allocation of the transaction price to the remaining unsatisfied performance obligation, given that unit prices of mineral sold are determined by published commodity prices at specified dates within the contract. The volume of mineral to be delivered after the first year of the contract is subject to annual volume negotiations in accordance with the terms of the contract. As of December 31, 2025, the Company had long-term contracts with promises to deliver in 2026 for a total of 166,500 metric tonnes of copper contained in concentrates; 24,000 metric tonnes of copper cathodes; 46,200 tonnes of copper rod; 22,700 tonnes of molybdenum concentrate; and 353,000 tonnes of sulfuric acid. These are estimates and may vary from actual deliveries in 2026 and 2027 depending on negotiations with customers, as mentioned above.\n\n​\n\nThe remainder of the Company’s revenues, including its by-product revenues, are generated by spot sales that are recognized at a point in time.\n\n​\n\nUnder both sales models, revenue is recognized when or as the performance obligations are satisfied, when the Company transfers control of the goods and title passes to the customer. Considering the International Commercial Terms (Incoterms) utilized by the Company, control is transferred generally upon the completion of loading the material at the point of origin. This is the point at which the customer obtains legal title to the product as well as the ability to direct the use of and obtain substantially all of the remaining benefits of ownership of the asset. Additionally, payment is generally due upon the delivery of the shipping and title documents at the point of origin, customers typically have 30 days to remit payment. Copper and non-copper revenues are measured based on the monthly average of prevailing commodity prices according to the terms of the contracts. The Company provides allowances for doubtful accounts based upon historical bad debt and claims experience and periodic evaluation of specific customer accounts.\n\n​\n\nSubstantially all of the Company’s sales are made under carriage and insurance paid to, or cost, insurance and freight Incoterms, whereby the Company is responsible for providing shipping and insurance after control of the inventory has been transferred to the customer. According to the terms of the Company’s contracts, these services are not distinct within the context of the contract, and they are not separately identifiable from the other promises within the contract. Additionally, it is the Company policy and it has a long-standing history of providing shipping and insurance services to its customers. Accordingly, shipping and insurance are not considered separate performance obligations. The related costs of shipping and insurance are presented within the cost of sales line in the accompanying consolidated statements of income.\n\n​\n\nFurthermore, the Company considered the impact of the shipping and insurance services on the determination of when control is transferred to its customers. It has concluded that the terms of these services do not impact its customers’ ability to sell, pledge, or otherwise use the products in shipment. Also, there is a small likelihood and minimal history of lost or damaged goods during shipment. Considering these factors, combined with the other indicators of control previously mentioned, the Company has concluded that these services do not impact the determination that control is transferred at the point of origin.\n\n​\n\nFor certain of the Company’s sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and occasionally in some cases a few additional months. In such cases, revenue is recorded at a provisional price at the time of shipment. The provisionally priced copper sales are adjusted to reflect forward LME or COMEX copper prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract. In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract.\n\n​\n\nThese provisional pricing arrangements are accounted for separately from the contract as an embedded derivative instrument under ASC 815-30 “Derivatives and Hedging—Cash Flow Hedges.” The Company sells copper in concentrate, anode, blister and refined form at industry standard commercial terms. Net sales include the invoiced value of copper, zinc, silver, molybdenum, sulfuric acid and other metals and the corresponding fair value adjustment of the\n\n135\n\n[Table of Contents](#TOC)\n\nrelated forward contract of copper and molybdenum. Disclosure regarding adjustments to sales for provisionally priced contracts is disclosed within Note 18 “Segment and related information”.\n\n​\n\n*Cash and cash equivalents—*\n\n​\n\nCash and cash equivalents include bank deposits, certificates of deposit and short-term investment funds with original maturities of three months or less at the date of purchase. The carrying value of cash and cash equivalents approximates fair value.\n\n​\n\n*Short-term investments—*\n\n​\n\nThe Company accounts for short-term investments in accordance with ASC 320-10 “Investments Debt and Equity Securities-Recognition.” The Company determines the appropriate classification of all short-term investments as held-to-maturity, available-for-sale or trading at the time of purchase and re-evaluates such classifications as of each balance sheet date. Unrealized gains and losses on trading investments, net of taxes, are reported as interest income in the consolidated statements of income. On the other hand, unrealized gains and losses on available-for-sale investments, net of taxes, are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, unless such loss is deemed to be other than temporary.\n\n​\n\n*Inventories—*\n\n​\n\nThe Company principally produces copper and, in the production process, obtains several by-products, including molybdenum, silver, zinc, sulfuric acid and other metals.\n\n​\n\nMetal inventories, consisting of work-in-process and finished goods, are carried at the lower of average cost or net realizable value (NRV). Costs of work-in-process inventories and finished goods mainly include power, labor, fuel, operating and repair materials, depreciation, amortization, depletion, and other necessary costs related to the extraction and processing of ore, including mining, milling, concentrating, smelting, refining, leaching and chemical processing. Costs incurred in the production of metal inventories exclude general and administrative costs. Once molybdenum, silver, zinc and other by-products are identified, they are transferred to their respective production facilities and the incremental cost required to complete production is assigned to their inventory value.\n\n​\n\nWork-in-process inventories represent materials that are in the process of being converted into a saleable product. Conversion processes vary depending on the nature of the copper ore and the specific mining operation. For sulfide ores, processing includes milling and concentrating and results in the production of copper and molybdenum concentrates.\n\n​\n\nFinished goods include saleable products (e.g., copper concentrates, copper anodes, copper cathodes, copper rod, molybdenum concentrate and other metallurgical products).\n\n​\n\nSupplies inventories are carried at the lower of average cost or net realizable value (NRV).\n\n​\n\n*Long-term inventory-Ore stockpiles on leach pads*\n\n​\n\nThe leaching process is an integral part of the mining operations carried out at the Company’s open-pit mines. The Company capitalizes the production cost of leachable material at its Toquepala, La Caridad and Buenavista mines, recognizing it as inventory. This cost includes mining and haulage costs incurred to deliver ore to leach pads, depreciation, amortization, depletion and site overhead costs. The estimates of recoverable mineral content contained in the leaching dumps are supported by engineering studies. As the production cycle of the leaching process is significantly longer than the conventional process of concentrating, smelting and electrolytic refining, the Company includes current leach inventory (included in work-in-process inventories) and long-term leach inventory on its balance sheet.\n\n​\n\nThe capitalization of long-term inventory-Ore stockpiles in leach pads is based on the allocation of copper content recoverable between ore and leach material. In addition, inventory consumption is valued at the average unit cost.\n\n​\n\n136\n\n[Table of Contents](#TOC)\n\n*Property—*\n\n​\n\nProperty is recorded at acquisition cost, net of accumulated depreciation and amortization. Cost includes major expenditures for improvements and replacements, which extend useful lives or increase capacity and interest costs associated with significant capital additions. Maintenance, repairs, normal development costs at existing mines and gains or losses on assets retired or sold are reflected in earnings as incurred.\n\n​\n\nBuildings and equipment are depreciated on the straight-line method over estimated lives from two to 50 years or the estimated life of the mine if shorter.\n\n​\n\n*Mine development**—*\n\n​\n\nMine development includes primarily the cost of acquiring land rights to an exploitable ore body, pre-production stripping costs at new mines that are commercially exploitable, costs associated with bringing new mineral properties into production, and removal of overburden to prepare unique and identifiable areas outside the current mining area for such future production. Mine development costs are amortized on a unit of production basis over the remaining life of the mines.\n\n​\n\nDiverse practices exist in the mining industry relative to the treatment of drilling and other related costs to delineate new mineral reserves. The Company follows the practices outlined in the next two paragraphs in its treatment of drilling and related costs.\n\n​\n\nDrilling and other associated costs incurred in the Company's efforts to delineate new resources, whether near-mine or Greenfield are expensed as incurred. These costs are classified as mineral exploration costs. Once the Company determines through feasibility studies that proven and probable reserves exist and that the drilling and other associated costs embody a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflow, then the costs are classified as mine development costs. These mine development costs incurred prospectively to develop the property are capitalized as incurred, until the commencement of production, and are amortized using the units of production method over estimated life of the ore body. During the production stage, drilling and other related costs incurred to maintain production are included in production cost in the period in which they are incurred.\n\n​\n\nDrilling and other related costs incurred in the Company’s efforts to delineate a major expansion of reserves at an existing production property are expensed as incurred. Once the Company determines through feasibility studies that proven and probable incremental reserves exist and that the drilling and other associated costs embody a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflow, then the costs are classified as mine development costs. These incremental mine development costs are capitalized as incurred, until the commencement of production and amortized using the units of production method over the estimated life of the ore body. A major expansion of reserves is one that increases total reserves at a property by approximately 10% or more.\n\n​\n\nFor the years ended December 31, 2025, 2024 and 2023, the Company did not capitalize any drilling and related costs.\n\n​\n\n*Asset retirement obligations (reclamation and remediation costs)—*\n\n​\n\nThe fair value of a liability for asset retirement obligations is recognized in the period in which the liability is incurred. The liability is measured at fair value and is adjusted to its present value in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset's useful life.\n\n​\n\n*Intangible assets—*\n\n​\n\nIntangible assets include primarily the excess amount paid over the book value for investment shares, which are presented as mining concessions, and mining and engineering development studies. Intangible assets are carried at\n\n137\n\n[Table of Contents](#TOC)\n\nacquisition costs, net of accumulated amortization and are amortized principally on a unit of production basis over the estimated remaining life of the mines. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.\n\n​\n\n*Debt issuance costs—*\n\n​\n\nDebt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the treatment of a debt discount.\n\n​\n\n*Mineral reserves—*\n\n​\n\nThe Company periodically reevaluates estimates of its mineral reserves, which represent the Company’s estimate as to the amount of unmined copper remaining in its existing mine locations that can be produced and sold at a profit. Such estimates are based on engineering evaluations derived from samples of drill holes and other openings, combined with assumptions about copper market prices and production costs at each of the respective mines.\n\n​\n\nThe Company updates its estimate of mineral reserves at the beginning of each year. In 2021, the Company adopted SEC’s mining property disclosure requirements (Regulation S-K, Subpart 1300). Consequently, in 2023, 2024 and 2025, the Company based its mineral reserve estimates on a long-term price assumption of $3.30 per pound of copper. The ore reserve estimates are used to determine the amortization of mine development and intangible assets.\n\n​\n\nOnce the Company determines through feasibility studies that proven and probable reserves exist and that drilling and other associated costs embody a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflow, then the costs are classified as mine development costs and the Company discloses the related mineral reserves.\n\n​\n\n*Exploration—*\n\n​\n\nTangible and intangible costs incurred in the search for mineral properties are charged against earnings when incurred.\n\n​\n\n*Income taxes—*\n\n​\n\nProvisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized and settled as prescribed in ASC 740 “Income taxes.” As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax assets are reduced by any benefits that, in the opinion of management, are more likely not to be realized.\n\n​\n\nThe Company’s operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with tax authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company follows the guidance of ASC 740 “Income taxes” to record these liabilities. (See Note 7 “Income taxes” of the consolidated financial statements for additional information). The Company adjusts these reserves with information on changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the tax liabilities. If its estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary.\n\n138\n\n[Table of Contents](#TOC)\n\n​\n\nThe Company classifies income tax-related interest and penalties as income taxes in the financial statements, as well as interest and penalties, if any, related to unrecognized tax benefits.\n\n​\n\n*Foreign exchange—*\n\n​\n\nThe Company’s functional currency is the U.S. dollar. As required by local law, both the Peruvian Branch and Minera Mexico maintain their books of accounts in Peruvian soles and Mexican pesos, respectively. Foreign currency assets and liabilities are remeasured into U.S. dollars at current exchange rates, except for non-monetary items such as inventory, property, intangible assets and other assets which are remeasured at historical exchange rates. Revenues and expenses are generally translated at actual exchange rates in effect during the period, except for those items related to balance sheet amounts that are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are included in earnings of the period.\n\n​\n\nGains and (losses) resulting from foreign currency transactions are included in \"Cost of sales (exclusive of depreciation, amortization and depletion).\"\n\n​\n\n*Asset impairments -*\n\n​\n\nThe Company evaluates long-term assets when events or changes in economic circumstances indicate that the carrying amount of such assets may not be recoverable. These evaluations are based on business plans that are prepared using a time horizon that is reflective of the Company’s expectations of metal prices over its business cycle. The Company is currently using a long-term average copper price and an average molybdenum price for impairment tests, reflective of what the Company believes is the lower level of the current price environment. The results of its impairment tests using these long-term copper and molybdenum prices show no impairment in the carrying value of their assets.\n\n​\n\nThe Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life to measure whether the assets are recoverable and measures any impairment by reference to fair value.\n\n​\n\n*Other comprehensive income—*\n\n​\n\nComprehensive income represents changes in equity during a period, except those resulting from investments by owners and distributions to owners. During the fiscal years ended December 31, 2025, 2024 and 2023, the component of \"other comprehensive income (loss)\" were the unrecognized gain (loss) on employee benefit obligations and the net loss recognized due to pension plan termination.\n\n​\n\n*Business segments-*\n\n​\n\nCompany management views Southern Copper as having three reportable segments and manages it on the basis of these segments. The segments identified by the Company are: 1) the Peruvian operations, which include the two open-pit copper mines in Peru and the plants and services supporting such mines, 2) the Mexican open-pit copper mines, which include La Caridad and Buenavista mine complexes and their supporting facilities and 3) the Mexican underground mining operations, which include five underground mines that produce zinc, lead, copper, silver and gold, a coal mine and a zinc refinery. Please see Note 18 “Segment and Related Information.”\n\n​\n\nThe Chief Operating Decision Maker of the Company focuses on operating income as measure of performance to evaluate different segments, and to make decisions to allocate resources to the reported segments. This is a common measure in the mining industry.\n\n​\n\n*Leases -*\n\n​\n\nThe Company determined if a contract is or contained a lease at its inception. The Company evaluated if a contract gave the right to obtain substantially all of the economic benefits from use of an identified asset and the right to direct the use of the asset, in order to determine if a contract contained a lease. All of the Company’s existing lease contracts are\n\n139\n\n[Table of Contents](#TOC)\n\noperating lease contracts. For these leases, the Company recognized right-of-use assets and the corresponding operating lease liabilities on its consolidated balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation by the Company to make lease payments which arise from the lease. Lease right-of-use assets and liabilities are recognized at the inception date based on the present value of lease payments over the lease term. As the Company’s lease contracts do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the inception date in order to determine the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term, in the cost of sales and operating expenses. The Company elected the transition approach whereby it applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected the short-term lease recognition exemption (short-term lease practical expedient) by class of underlying asset (which results in off-balance-sheet accounting for the lease).\n\n​\n\nADOPTION OF INCOME TAX DISCLOSURES STANDARD\n\n​\n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The guidance enhances the transparency and decision usefulness of income tax disclosures by requiring, among other things, expanded disclosures related to the effective tax rate reconciliation and income taxes paid.\n\n​\n\nAdoption of ASU 2023-09 requires public entities to:\n\n●Present a tabular reconciliation of the statutory federal income tax rate to the effective income tax rate using specified categories, including a requirement to disaggregate reconciling items that exceed a quantitative threshold;\n\n●Disclose income (loss) before income taxes disaggregated between domestic and foreign operations; and\n\n●Disclose in the supplemental disclosures within the statement of cash flows, income taxes paid, net of refunds received, disaggregated by federal, state, and foreign jurisdictions, including further disaggregation for individual jurisdictions that are significant.\n\n​\n\nThe Company adopted ASU 2023-09 effective January 1, 2025, on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows, as the amendments primarily affect disclosure requirements. The Company has also updated its supplemental disclosure within the statement of cash flows beginning in the year ended December 31, 2025.\n\n​\n\n​\n\n​\n\n**NOTE 3—SHORT-TERM INVESTMENTS:**\n\n​\n\nShort-term investments were as follows ($ in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n** **\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nTrading securities\n\n​\n\n$\n\n604.5\n\n​\n\n$\n\n245.2\n\n​\n\nWeighted average interest rate\n\n​\n\n \n\n4.1\n\n%  \n\n \n\n4.7\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAvailable-for-sale\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.2\n\n​\n\nWeighted average interest rate\n\n​\n\n \n\n0.9\n\n%  \n\n \n\n0.9\n\n%\n\nTotal\n\n​\n\n$\n\n604.6\n\n​\n\n$\n\n245.3\n\n​\n\n​\n\nTrading securities consist of bonds issued by public companies and are publicly traded. Each financial instrument is independent of the others. The Company has the intention to sell these bonds in the short-term.\n\n​\n\nAvailable-for-sale investments consist of securities issued by public companies. Each security is independent of the others and, as of December 31, 2025 and 2024, included asset and mortgage backed obligations. As of December 31, 2025 and 2024, gross unrealized gains and losses on available-for-sale securities were not material.\n\n​\n\n140\n\n[Table of Contents](#TOC)\n\nThe Company earned interest related to these investments, which was recorded as interest income in the consolidated statement of earnings. Also the Company redeemed some of these securities and recognized gains (losses) due to changes in fair value, which were recorded as other income (expense) in the consolidated statement of earnings.\n\n​\n\nThe following table summarizes the activity of these investments by category (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Years ended**\n\n** **\n\n​\n\n​\n\n**December 31, **\n\n​\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nTrading:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest earned\n\n​\n\n$\n\n30.1\n\n​\n\n$\n\n25.7\n\n​\n\nUnrealized gain (loss) at the end of the period\n\n​\n\n$\n\n(*)  \n\n​\n\n$\n\n(*)  \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAvailable-for-sale:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest earned\n\n​\n\n$\n\n(*)  \n\n​\n\n$\n\n(*)  \n\n​\n\n(*)   Less than $0.1 million\n\n​\n\nAs of December 31, 2025 and 2024, contractual maturities of the available-for-sale debt securities are as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nDue after 10 years\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.2\n\nTotal debt securities\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.2\n\n​\n\n​\n\n​\n\n**NOTE 4—INVENTORIES:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nInventory, current:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMetals at average cost:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFinished goods\n\n​\n\n$\n\n68.3\n\n​\n\n$\n\n55.9\n\nWork-in-process\n\n​\n\n \n\n327.9\n\n​\n\n \n\n343.8\n\nOre stockpiles on leach pads  \n\n​\n\n​\n\n238.6\n\n​\n\n​\n\n217.2\n\nSupplies at average cost\n\n​\n\n \n\n423.3\n\n​\n\n \n\n431.9\n\nTotal current inventory\n\n​\n\n$\n\n1,058.1\n\n​\n\n$\n\n1,048.9\n\nInventory, long-term:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOre stockpiles on leach pads\n\n​\n\n$\n\n1,114.5\n\n​\n\n$\n\n1,145.8\n\n​\n\nTotal leaching costs added as long-term inventory of ore stockpiles in leach pads amounted to $245.2 million, $249.5 million and $291.6 million in 2025, 2024 and 2023, respectively. Long-term leaching inventories recognized as cost of sales amounted to $255.2 million, $239.0 million and $263.0 million in 2025, 2024 and 2023, respectively.\n\n​\n\n​\n\n​\n\n​\n\n141\n\n[Table of Contents](#TOC)\n\n**NOTE 5—PROPERTY:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nBuildings and equipment\n\n​\n\n$\n\n18,778.2\n\n​\n\n$\n\n18,013.5\n\nConstruction in progress\n\n​\n\n \n\n1,822.5\n\n​\n\n \n\n1,579.1\n\nMine development\n\n​\n\n \n\n353.0\n\n​\n\n \n\n348.8\n\nMineral assets\n\n​\n\n​\n\n83.2\n\n​\n\n​\n\n83.2\n\nLand, other than mineral\n\n​\n\n \n\n377.5\n\n​\n\n \n\n340.1\n\nTotal property\n\n​\n\n \n\n21,414.4\n\n​\n\n \n\n20,364.7\n\nAccumulated depreciation, amortization and depletion\n\n​\n\n \n\n(11,142.2)\n\n​\n\n \n\n(10,481.4)\n\nTotal property and mine development, net\n\n​\n\n$\n\n10,272.2\n\n​\n\n$\n\n9,883.3\n\n​\n\nDepreciation and depletion expense for the years ended December 31, 2025, 2024 and 2023 totaled $860.9 million, $836.8 million and $825.7 million, respectively.\n\n​\n\n​\n\n**NOTE 6—INTANGIBLE ASSETS:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nMining concessions\n\n​\n\n$\n\n121.2\n\n​\n\n$\n\n121.2\n\nMine engineering and development studies\n\n​\n\n \n\n19.8\n\n​\n\n \n\n19.8\n\nSoftware\n\n​\n\n \n\n83.0\n\n​\n\n \n\n77.8\n\n​\n\n​\n\n \n\n224.0\n\n​\n\n \n\n218.8\n\nAccumulated amortization:\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\nMining concessions\n\n​\n\n​\n\n(48.4)\n\n​\n\n​\n\n(46.4)\n\nMine engineering and development studies\n\n​\n\n​\n\n(19.8)\n\n​\n\n​\n\n(19.8)\n\nSoftware\n\n​\n\n​\n\n(75.4)\n\n​\n\n​\n\n(69.9)\n\n​\n\n​\n\n​\n\n(143.6)\n\n​\n\n​\n\n(136.1)\n\nGoodwill\n\n​\n\n \n\n41.9\n\n​\n\n \n\n41.9\n\nIntangible assets, net\n\n​\n\n$\n\n122.4\n\n​\n\n$\n\n124.6\n\n​\n\nAmortization of intangibles for the years ended December 31, 2025, 2024 and 2023 totaled $7.5 million, $9.1 million and $7.9 million, respectively. Estimated amortization is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Estimated amortization expense (in millions):**\n\n  ​ ​ ​\n\n​\n\n​\n\n2026\n\n​\n\n$\n\n5.4\n\n2027\n\n​\n\n​\n\n3.4\n\n2028\n\n​\n\n​\n\n2.4\n\n2029\n\n​\n\n​\n\n2.3\n\n2030\n\n​\n\n​\n\n2.2\n\nTotal 2026 - 2030\n\n​\n\n$\n\n15.7\n\nAverage annual\n\n​\n\n$\n\n3.1\n\n​\n\nGoodwill includes $17.0 million generated in 1997 as a result of purchasing a third party interest in the Buenavista mine. It also includes $24.9 million representing the amount of the purchase price in excess of the fair value of the net assets acquired from El Pilar mine. This goodwill is attributable to future benefits that the Company expects to realize from the mine and will not be deductible for income tax purposes.\n\n​\n\n​\n\n​\n\n142\n\n[Table of Contents](#TOC)\n\n**NOTE 7—INCOME TAXES:**\n\n​\n\nSince March 2009, Grupo Mexico, through its wholly-owned subsidiary AMC, owns an interest in excess of 80% of SCC. Accordingly, SCC’s results are included in the consolidated tax return for AMC for U.S. federal income tax reporting.\n\n​\n\nFollowing its policy regarding the use of estimates, the Company estimates income taxes currently payable or receivable as well as deferred income tax assets and liabilities attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company provides current and deferred income taxes, as if it were filing a separate U.S. federal income tax return.\n\n​\n\nThe components of the provision for income taxes for the three years ended December 31, 2025, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nU.S. federal and state:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent\n\n​\n\n$\n\n—\n\n​\n\n$\n\n(4.8)\n\n​\n\n$\n\n4.6\n\nDeferred\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nUncertain tax positions\n\n​\n\n \n\n—\n\n​\n\n \n\n(0.6)\n\n​\n\n \n\n0.6\n\n​\n\n​\n\n \n\n—\n\n​\n\n \n\n(5.4)\n\n​\n\n \n\n5.2\n\nForeign (Peru and Mexico):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent\n\n​\n\n \n\n2,463.3\n\n​\n\n \n\n1,985.8\n\n​\n\n \n\n1,491.0\n\nDeferred\n\n​\n\n​\n\n(33.9)\n\n​\n\n \n\n(52.2)\n\n​\n\n \n\n(59.1)\n\nUncertain tax positions\n\n​\n\n \n\n40.7\n\n​\n\n \n\n47.1\n\n​\n\n \n\n81.8\n\n​\n\n​\n\n \n\n2,470.1\n\n​\n\n \n\n1,980.7\n\n​\n\n \n\n1,513.7\n\nTotal provision for income taxes\n\n​\n\n$\n\n2,470.1\n\n​\n\n$\n\n1,975.3\n\n​\n\n$\n\n1,518.9\n\n​\n\nThe source of income is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nEarnings by location:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nU.S.\n\n​\n\n$\n\n40.7\n\n​\n\n$\n\n31.5\n\n​\n\n$\n\n23.3\n\nForeign\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPeru\n\n​\n\n \n\n2,319.2\n\n​\n\n \n\n1,796.4\n\n​\n\n \n\n1,151.3\n\nMexico\n\n​\n\n \n\n4,424.4\n\n​\n\n \n\n3,529.5\n\n​\n\n \n\n2,781.2\n\n​\n\n​\n\n \n\n6,743.6\n\n​\n\n \n\n5,325.9\n\n​\n\n \n\n3,932.5\n\nEarnings before taxes on income\n\n​\n\n$\n\n6,784.3\n\n​\n\n$\n\n5,357.4\n\n​\n\n$\n\n3,955.8\n\n​\n\n143\n\n[Table of Contents](#TOC)\n\nThe reconciliation of the statutory income tax rate to the effective tax rate for the three years ended December 31, 2025, was retrospectively changed with the adoption of Accounting Standards Update 2023-09 and is presented below in both percentage points and dollar amounts.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**2025**\n\n​\n\n​\n\n**2024**\n\n​\n\n​\n\n**2023**\n\n** **\n\n**($ in millions)**\n\n**  ​ ​ ​**\n\n**Rounding**\n\n​\n\n**Percent**\n\n**  ​ ​ ​**\n\n​\n\n**Rounding**\n\n​\n\n**Percent**\n\n**  ​ ​ ​**\n\n​\n\n**Rounding**\n\n​\n\n**Percent**\n\n** **\n\nU.S. federal statutory rate\n\n$\n\n1,424.7\n\n​\n\n21.0\n\n%  \n\n$\n\n1,125.1\n\n​\n\n21.0\n\n%  \n\n$\n\n830.7\n\n​\n\n21.0\n\n%\n\n**Foreign tax effects**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*Peru*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTax rate differential\n\n \n\n696.2\n\n​\n\n10.3\n\n​\n\n​\n\n539.2\n\n​\n\n10.1\n\n​\n\n​\n\n346.5\n\n​\n\n8.8\n\n​\n\nPeruvian tax on net income deemed distributed (dividend tax) plus royalty tax\n\n​\n\n85.1\n\n​\n\n1.3\n\n​\n\n​\n\n68.9\n\n​\n\n1.3\n\n​\n\n​\n\n48.8\n\n​\n\n1.2\n\n​\n\nPeruvian royalty tax\n\n​\n\n79.6\n\n​\n\n1.2\n\n​\n\n​\n\n57.5\n\n​\n\n1.1\n\n​\n\n​\n\n44.6\n\n​\n\n1.1\n\n​\n\nSpecial mining tax\n\n​\n\n111.8\n\n​\n\n1.6\n\n​\n\n​\n\n86.9\n\n​\n\n1.6\n\n​\n\n​\n\n71.7\n\n​\n\n1.8\n\n​\n\nNon-deductible interest expense\n\n​\n\n90.4\n\n​\n\n1.3\n\n​\n\n​\n\n94.3\n\n​\n\n1.8\n\n​\n\n​\n\n94.3\n\n​\n\n2.4\n\n​\n\nOther\n\n​\n\n(89.9)\n\n​\n\n(1.3)\n\n​\n\n​\n\n(32.5)\n\n​\n\n(0.6)\n\n​\n\n​\n\n(20.7)\n\n​\n\n(0.5)\n\n​\n\n*Mexico*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTax rate differential\n\n​\n\n398.2\n\n​\n\n5.9\n\n​\n\n​\n\n317.7\n\n​\n\n5.9\n\n​\n\n​\n\n250.3\n\n​\n\n6.3\n\n​\n\nMexican royalty\n\n​\n\n233.5\n\n​\n\n3.4\n\n​\n\n​\n\n142.9\n\n​\n\n2.7\n\n​\n\n​\n\n118.6\n\n​\n\n3.0\n\n​\n\nTax inflation effect, net\n\n​\n\n(55.8)\n\n​\n\n(0.8)\n\n​\n\n​\n\n(30.3)\n\n​\n\n(0.6)\n\n​\n\n​\n\n(75.2)\n\n​\n\n(1.9)\n\n​\n\nOther\n\n​\n\n(48.8)\n\n​\n\n(0.7)\n\n​\n\n​\n\n(52.1)\n\n​\n\n(1.0)\n\n​\n\n​\n\n(30.9)\n\n​\n\n(0.8)\n\n​\n\n**Tax credits**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nForeign tax credits\n\n​\n\n(495.9)\n\n​\n\n(7.3)\n\n​\n\n​\n\n(523.3)\n\n​\n\n(9.8)\n\n​\n\n​\n\n(389.0)\n\n​\n\n(9.8)\n\n​\n\n**Valuation allowance**\n\n​\n\n203.3\n\n​\n\n3.0\n\n​\n\n​\n\n244.4\n\n​\n\n4.6\n\n​\n\n​\n\n248.0\n\n​\n\n6.3\n\n​\n\n**Nontaxable or Nondeductible Items**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPercentage depletion\n\n​\n\n(129.6)\n\n​\n\n(1.9)\n\n​\n\n​\n\n(112.0)\n\n​\n\n(2.1)\n\n​\n\n​\n\n(93.2)\n\n​\n\n(2.4)\n\n​\n\nOther permanent differences\n\n​\n\n(44.1)\n\n​\n\n(0.7)\n\n​\n\n​\n\n(31.1)\n\n​\n\n(0.6)\n\n​\n\n​\n\n(22.6)\n\n​\n\n(0.6)\n\n​\n\n**Changes in unrecognized tax benefits**\n\n​\n\n10.9\n\n​\n\n0.2\n\n​\n\n​\n\n61.7\n\n​\n\n1.2\n\n​\n\n​\n\n76.9\n\n​\n\n2.0\n\n​\n\n**Other adjustments**\n\n​\n\n0.5\n\n​\n\n(0.1)\n\n​\n\n​\n\n18.0\n\n​\n\n0.3\n\n​\n\n​\n\n20.1\n\n​\n\n0.5\n\n​\n\n​\n\n$\n\n2,470.1\n\n​\n\n36.4\n\n%  \n\n$\n\n1,975.3\n\n​\n\n36.9\n\n%  \n\n$\n\n1,518.9\n\n​\n\n38.4\n\n%\n\n​\n\nThe Company files income tax returns in three jurisdictions; Peru, Mexico and the United States. For the three years presented above, the statutory income tax rate for Mexico was 30%, the United States tax rate was 21%, and the Peruvian tax rate was 29.5%. While the largest components of income taxes are the Peruvian and Mexican taxes, the Company is a domestic U.S. entity. Therefore, the rate used in the above reconciliation is the U.S. statutory rate.\n\n​\n\nFor all of the years presented, both the Peruvian branch and Minera Mexico filed separate tax returns in their respective tax jurisdictions. Although the tax rules and regulations imposed in the separate tax jurisdictions may vary significantly, similar permanent items exist, such as items that are nondeductible or nontaxable. Some permanent differences relate specifically to SCC, such as the allowance in the United States for percentage depletion.\n\n​\n\nOn May 31, 2019, the Organization for Economic Cooperation and Development (“OECD”) published a two-pillar system designed to address the tax challenges created by an increasing digitalized economy. Pillar One focuses on the allocation of group profits among taxing jurisdictions based on a market-based concept rather than on historic “permanent establishment” concepts, but includes explicit exclusions for Extractives and as such, is not expected to have a material impact on the Company. Pillar Two addresses the remaining Base Erosion and Profit Shifting (“BEPS”) risk of profit shifting to entities in low tax jurisdictions by introducing a global minimum tax of 15% and a proposed tax on base eroding payments. Certain aspects of Pillar Two took effect January 1, 2024, while other aspects went into effect January 1, 2025. If jurisdictions want to implement the GloBE rules, these rules will need to be implemented through domestic legislation. The countries in which the Company has significant operations have yet to enact Pillar Two into law and have not formally announced plans to implement these rules. The Company will continue to monitor the situation and analyze the potential impact that Pillar Two will have on future results.\n\n​\n\n144\n\n[Table of Contents](#TOC)\n\nDeferred taxes include the U.S., Peruvian and Mexican tax effects of the following types of temporary differences and carryforwards:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**At December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**Assets:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInventories\n\n​\n\n$\n\n87.2\n\n​\n\n$\n\n57.2\n\nCapitalized exploration expenses\n\n​\n\n \n\n17.7\n\n​\n\n \n\n19.2\n\nU.S. foreign tax credit carryforward, net of Uncertain Tax Positions\n\n​\n\n \n\n2,379.9\n\n​\n\n \n\n2,171.3\n\nU.S. tax effect of Peruvian deferred tax liability\n\n​\n\n \n\n75.5\n\n​\n\n \n\n85.7\n\nU.S. tax effect of Peruvian Uncertain Tax Positions\n\n​\n\n​\n\n47.0\n\n​\n\n​\n\n59.6\n\nReserves\n\n​\n\n \n\n268.2\n\n​\n\n \n\n284.3\n\nDeferred workers participation\n\n​\n\n​\n\n8.4\n\n​\n\n​\n\n12.2\n\nAccrued salaries, wages and vacations\n\n​\n\n​\n\n10.0\n\n​\n\n​\n\n8.4\n\nSales price adjustment (PUI)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4.2\n\nValuation allowance on U.S. deferred tax assets, foreign tax credits and U.S. tax effect of Peruvian deferreds\n\n​\n\n​\n\n(2,748.1)\n\n​\n\n​\n\n(2,545.9)\n\nAccrued royalty and special mining tax\n\n​\n\n​\n\n25.7\n\n​\n\n​\n\n14.1\n\nLeach reserve\n\n​\n\n​\n\n226.4\n\n​\n\n​\n\n201.2\n\nOther\n\n​\n\n \n\n12.8\n\n​\n\n \n\n11.3\n\nTotal deferred tax assets\n\n​\n\n \n\n410.7\n\n​\n\n \n\n382.8\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**At December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**Liabilities:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProperty, plant and equipment\n\n​\n\n \n\n(111.0)\n\n​\n\n \n\n(114.5)\n\nSocial responsibility expenses\n\n​\n\n \n\n(11.7)\n\n​\n\n \n\n(10.3)\n\nSales price adjustment (PUI)\n\n​\n\n​\n\n(14.9)\n\n​\n\n​\n\n—\n\nDeferred charges\n\n​\n\n \n\n(67.3)\n\n​\n\n \n\n(71.9)\n\nTotal deferred tax liabilities\n\n​\n\n \n\n(204.9)\n\n​\n\n \n\n(196.7)\n\nTotal net deferred tax (liabilities) / assets\n\n​\n\n$\n\n205.8\n\n​\n\n$\n\n186.1\n\n​\n\nDeferred tax assets related to leach are disclosed separately to provide greater transparency of significant components. The valuation allowance increased by $202.2 million in 2025, which was primarily due to the valuation of unutilized Foreign Tax Credits generated in 2025 and the valuation of the anticipatory foreign tax credits for the U.S. Tax effect of Peruvian deferred tax related to uncertain tax position liabilities. The Peru branch operations are taxed in the U.S. as a flow through entity to SCC. Since the Peruvian tax rate of 29.5% now exceeds the U.S. tax rate of 21%, management expects that it is more likely than not that the benefit of excess credits generated in the current year will not be realizable. \n\n​\n\n*U.S. Tax Matters—*\n\n​\n\nOn July 4, 2025, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” (the “Act”) – and commonly referred to as the “One Big Beautiful Bill Act” (“OBBBA”) was passed. The Act includes changes to both international and domestic tax provisions but did not change the overall corporate tax rate. The Act reduces the deduction percentages for some income inclusions as well as foreign income taxes deemed paid and limits the deductions that are allocated and apportioned to the foreign tax credit limitation within the Global Intangible Low-Taxed Income (“GILTI”) renamed Net CFC Tested Income (“NCTI”) effective January 1, 2026. The Act increases the Base Erosion and Anti-Abuse Tax (“BEAT”) rate. The Act makes changes to the foreign tax credit provisions regarding the allocation and apportionment of expenses, the treatment of certain dividends, and the inclusion of income from Controlled Foreign Corporations (CFC’s). There was no material impact from the tax law changes on the financial statements of the Company.\n\n​\n\n145\n\n[Table of Contents](#TOC)\n\nAs of December 31, 2025, the Company considers its ownership of the stock of Minera Mexico to be essentially permanent in duration. Income from subsidiaries, such as Minera Mexico, is included in the GILTI on a current year basis.\n\n​\n\nGILTI imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has not had U.S. tax liability from the GILTI inclusion since the introduction of this tax in 2018 and does not anticipate a tax in the future because of the Mexican tax rate of 30%. No U.S. deferred taxes have been recorded as the Company has elected that if GILTI were to apply in the future, a current period expense would be recorded when incurred.\n\n​\n\nThe Base Erosion Anti-Abuse Tax (“BEAT”) is a 10% minimum tax for the years 2019 through 2025 and 10.5% in years thereafter. It is calculated on a base equal to the Company’s income determined without the tax benefit arising from base erosion payments. Since this tax was imposed in 2018 the Company has had no U.S. tax liability for BEAT since it has met the safe harbor rule that provides a Company is not to be subject to the BEAT if related party payments from the U.S. to foreign entities do not exceed 3% of expenses, excluding cost of goods sold. The Company will continue to analyze the applicability of the BEAT provisions yearly.\n\n​\n\nAs of December 31, 2025, $1,620.1 million of the Company´s total cash and cash equivalents, and short-term investments of $4,909.3 million were held in foreign subsidiaries. The cash and cash equivalents and short-term investments maintained in our foreign operations are generally used to cover local operating and investment expenses. The Company has determined that as of December 31, 2025, a deferred tax asset of approximately $566 million exists with respect to its investment in foreign subsidiaries. Tax accounting guidance provided in ASC 740 requires this asset to be recognized only if the basis difference will reverse in the foreseeable future. Management has no plans that would result in the reversal of this temporary difference and consequently, no deferred tax asset has been recorded. Future dividends from these subsidiaries may not be subject to federal income tax in the U.S., and the Company incurs no state income tax liability. Additionally, there are no withholding taxes due to the tax treaty between the United States and Mexico. Distributions of earnings from the Company's Peruvian branch to the United States are not subject to U.S. taxes on repatriation. The Company's branch operations are not foreign corporations. They are mainly comprised of operations that are branches of the Company's U.S. operations and are taxed on a current basis.\n\n​\n\nAs of December 31, 2025, there were $2,377.2 million of foreign tax credits available for carryback or carryforward. These credits have a one-year carryback and a ten-year carryforward period and can be used to reduce U.S. income tax on foreign earnings. There were no other unused U.S. tax credits as of December 31, 2025. These credits will expire if not utilized by the end of the years listed below:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year**\n\n**  ​ ​ ​**\n\n**Amount**\n\n2026\n\n​\n\n​\n\n109.9\n\n2027\n\n​\n\n​\n\n-\n\n2028\n\n​\n\n \n\n189.4\n\n2029\n\n​\n\n​\n\n257.1\n\n2030\n\n​\n\n​\n\n261.2\n\n2031\n\n​\n\n​\n\n553.6\n\n2032\n\n​\n\n​\n\n161.2\n\n2033\n\n​\n\n​\n\n244.0\n\n2034\n\n​\n\n​\n\n300.0\n\n2035\n\n​\n\n​\n\n300.8\n\nTotal\n\n​\n\n$\n\n2,377.2\n\n​\n\n146\n\n[Table of Contents](#TOC)\n\nThese foreign tax credits are presented above on a gross basis and have not been adjusted for any unrecognized tax benefits. In accordance with ASC 740, the Company has recorded a $2.7 million asset, which represents additional foreign tax credits for the U.S. jurisdiction for unrecognized tax benefits. Both the foreign tax credit asset and the additional foreign tax credit asset for unrecognized tax benefits have a full valuation allowance against them as of December 31, 2025. It is the expectation of management that, given that the U.S. corporate tax rate has been reduced to 21%, and considering that the corporate tax rate in Mexico is 30% and 29.5% in Peru, it is unlikely the excess foreign tax credits can be utilized. Additionally, foreign dividends may no longer be taxed in the U.S. due to the GILTI rules, now renamed Net CFC Tested Income (“NCTI”), which will reduce U.S. tax on foreign source income and limit the ability to utilize foreign tax credit carryforwards.\n\n​\n\n*Peruvian Tax Matters—*\n\n​\n\nMining royalty charge: The royalty charge is based on operating income margins with graduated rates ranging from 1% to 12% of operating profits, with a minimum royalty charge assessed at 1% of net sales. The minimum royalty charge is recorded as cost of sales and those amounts assessed at higher rates are included in the income tax provision. The Company accrued $131.5 million, $103.4 million and $84.8 million of royalty charges in 2025, 2024 and 2023, respectively, of which $79.6 million, $57.5 million and $44.6 million were included in income taxes in 2025, 2024 and 2023, respectively.\n\n​\n\nPeruvian special mining tax: This tax is based on operating income with graduated rates increasing from 2% to 8.4%. The Company recognized $111.8 million, $86.9 million and $71.7 million in 2025, 2024 and 2023, respectively for this tax. These amounts were included as income taxes in the Consolidated Statement of Earnings.\n\n​\n\n*Mexican Tax Matters—*\n\n​\n\nSince 2014, Mexican mining entities have been required to pay a mining royalty and an extraordinary tax. Starting 2025, the mining royalty rate is 7.5% on taxable earnings before taxes, depreciation, and interest; and the extraordinary tax rate is 1% over gross receipts from sales of gold, silver and platinum. In 2025, the mining royalty was $137.9 million, and the extraordinary tax was $1.8 million.\n\n​\n\n*Accounting for Uncertainty in Income Taxes—*\n\n​\n\nThe total amount of unrecognized tax benefits in 2025, 2024 and 2023, was as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nUnrecognized tax benefits, opening balance\n\n​\n\n$\n\n92.7\n\n​\n\n$\n\n111.0\n\n​\n\n$\n\n56.0\n\nGross decreases—tax positions in prior period\n\n​\n\n \n\n(11.4)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nGross increases—tax positions in prior period\n\n​\n\n​\n\n15.2\n\n​\n\n​\n\n23.7\n\n​\n\n​\n\n50.2\n\nGross increases—current-period tax positions\n\n​\n\n \n\n18.4\n\n​\n\n \n\n12.9\n\n​\n\n \n\n8.6\n\nDecreases related to settlements with taxing authorities\n\n​\n\n \n\n(42.2)\n\n​\n\n \n\n(62.9)\n\n​\n\n \n\n(15.7)\n\nLapse in statute of Limitations\n\n​\n\n​\n\n(27.2)\n\n​\n\n​\n\n12.3\n\n​\n\n​\n\n10.8\n\nForeign Currency Effects\n\n​\n\n​\n\n(1.1)\n\n​\n\n​\n\n(4.3)\n\n​\n\n​\n\n1.1\n\n​\n\n​\n\n \n\n(48.3)\n\n​\n\n \n\n(18.3)\n\n​\n\n \n\n55.0\n\nUnrecognized tax benefits, ending balance\n\n​\n\n$\n\n44.4\n\n​\n\n$\n\n92.7\n\n​\n\n$\n\n111.0\n\n​\n\nThe Company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes within the Consolidated Statements of Earnings. For the Peruvian jurisdiction, the Company recorded $27.6 million and $17.2 million of accrued interest and penalties in 2025 and 2024, respectively. For the Mexican jurisdiction, the Company removed $1.4 million and accrued $5.9 million of accrued interest and penalties in 2025 and 2024, respectively. There were no interest or penalties accrued in the U.S. jurisdiction for uncertain tax positions in any of the years presented above.\n\n​\n\n147\n\n[Table of Contents](#TOC)\n\nThe amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $44.4 million as of December 31, 2025 and relates to the Peruvian and Mexican jurisdictions.\n\n​\n\nUnrecognized tax benefits in the U.S. jurisdiction entails an asset of $2.7 million, which represents a fully valued additional foreign tax credit carryforward that would be generated by uncertain tax positions. Offsetting expense related to the change in liability for uncertain tax positions within the U.S. jurisdiction and the change in valuation allowance of the U.S. deferred tax asset for foreign tax credits was presented as a net amount in the components of income taxes.\n\n​\n\nThe Company expects that foreign exchange rates will have an impact on the amount of unrecognized tax benefits in the Peruvian and Mexican jurisdictions.\n\n​\n\nAs of December 31, 2025, the Company’s liability for uncertain tax positions included penalties and interest of $3.2 million in the Peruvian jurisdiction and $2.8 million in the Mexican jurisdiction. There was no liability for uncertain tax positions penalties and interest for the U.S. jurisdiction as of December 31, 2025. Interest and penalties are not included in the table of unrecognized tax benefits above.\n\n​\n\nThe following tax years remain open to examination and adjustment in the Company’s three major tax jurisdictions:\n\n​\n\n​\n\n​\n\n​\n\nPeru:\n\n  ​ ​ ​\n\n2020 and all subsequent years\n\nU.S.:\n\n​\n\n2022 and all subsequent years\n\nMexico:\n\n​\n\n2020 and all subsequent years\n\n​\n\nManagement does not expect that any of the open years will result in a cash payment within the U.S. or Mexican jurisdictions in the upcoming twelve months ending December 31, 2026. Management expects to make cash payments of $13.6 million within the Peruvian jurisdiction in the upcoming twelve months ending December 31, 2026.\n\n​\n\n**NOTE 8—WORKERS’ PARTICIPATION:**\n\n​\n\nThe Company's operations in Peru and Mexico are subject to statutory workers' participation. In Peru, the provision for workers' participation is calculated at 8% of pre-tax earnings. The current portion of this participation, which is accrued during the year, is based on the Peruvian Branch's taxable income and is distributed to workers following determination of final results for the year. The annual amount payable to an individual worker is capped at the worker’s salary for an 18 month period. Amounts determined in excess of the 18 months of worker’s salary is no longer made as a payment to the worker and is levied first for the benefit of the “Fondo Nacional de Capacitacion Laboral y de Promocion del Empleo” (National Workers’ Training and Employment Promotion Fund) until this entity receives from all employers in its region an amount equivalent to 2,200 Peruvian taxable units (approximately $3.5 million in 2025). Any remaining excess is levied as payment for the benefit of the regional governments. These levies fund worker training, employment promotion, entrepreneurship and various other programs.\n\n​\n\nIn Mexico, workers' participation is determined using the guidelines established in the Mexican income tax law at a rate of 10% of pre-tax earnings as adjusted by the tax law. In 2021, there was a change in the Ley Federal del Trabajo (\"Federal Labor Law\"), effective in 2022. Under this change, the amount payable to a worker cannot be higher than the maximum between the worker’s salary for a three-month period and the average of the participation received in the last three years.\n\n​\n\nThe provision for workers’ participation is allocated to “Cost of sales (exclusive of depreciation, amortization and depletion)”. Workers’ participation expense (benefit) for the three years ended December 31, 2025 was as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nCurrent\n\n​\n\n$\n\n376.1\n\n​\n\n$\n\n317.9\n\n​\n\n$\n\n265.0\n\nDeferred\n\n​\n\n \n\n8.8\n\n​\n\n \n\n(21.4)\n\n​\n\n \n\n(11.8)\n\n​\n\n​\n\n$\n\n384.9\n\n​\n\n$\n\n296.5\n\n​\n\n$\n\n253.2\n\n​\n\n​\n\n​\n\n​\n\n148\n\n[Table of Contents](#TOC)\n\n​\n\n**NOTE 9—LEASES:**\n\n​\n\nThe Company has operating leases for power generating facilities, vehicles and properties. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some of the Company’s leases include both lease and non-lease components which are accounted for separately. The Company’s leases have remaining lease terms of less than one year to seven years, and do not include options to extend the leases. The Company’s lease agreements do not contain options to purchase the leased assets or to terminate the leases before the expiration date. In addition, the Company’s lease contracts do not have any material residual value guarantees or material restrictive covenants. As none of the Company’s leases provides an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.\n\n​\n\nThe weighted average remaining lease term for the Company’s leases is six years, and the weighted average discount rate for these leases is 5.08%.\n\n​\n\nThe operating lease expense recognized in the years ended December 31, 2025, 2024 and 2023 was classified as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Classification**\n\n**  ​ ​ ​**\n\n**2025**\n\n** **\n\n**2024**\n\n​\n\n**2023**\n\nCost of sales (exclusive of depreciation, amortization and depletion)\n\n \n\n$\n\n112.6\n\n​\n\n$\n\n106.0\n\n​\n\n$\n\n115.4\n\nSelling, general and administrative\n\n​\n\n \n\n0.1\n\n​\n\n \n\n0.1\n\n​\n\n \n\n0.1\n\nExploration\n\n​\n\n \n\n0.1\n\n​\n\n \n\n0.1\n\n​\n\n \n\n0.1\n\nTotal lease expense\n\n \n\n$\n\n112.8\n\n​\n\n$\n\n106.2\n\n​\n\n$\n\n115.6\n\n​\n\nMaturities of lease liabilities are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Lease liabilities**\n\n**Year**\n\n**  ​ ​ ​**\n\n**(in millions)**\n\n2026\n\n \n\n$\n\n116.4\n\n2027\n\n​\n\n \n\n115.8\n\n2028\n\n​\n\n \n\n115.2\n\n2029\n\n​\n\n \n\n113.2\n\n2030\n\n​\n\n \n\n105.5\n\nAfter 2030\n\n​\n\n \n\n211.9\n\nTotal lease payments\n\n \n\n$\n\n778.0\n\nLess: interest on lease liabilities\n\n​\n\n \n\n(115.2)\n\nPresent value of lease payments\n\n \n\n$\n\n662.7\n\n​\n\n​\n\n**NOTE 10—ASSET RETIREMENT OBLIGATION:**\n\n​\n\nPeruvian operations:\n\n​\n\nThe Company maintains an asset retirement obligation for its mining properties in Peru, as required by the Peruvian Mine Closure Law. In accordance with the requirements of this law the Company’s closure plans were approved by the Peruvian Ministry of Energy and Mines (“MINEM”). The closure cost recognized for this liability includes the cost, as outlined in its closure plans, of dismantling the Toquepala and Cuajone concentrators, the Ilo smelter and refinery, and the shops and auxiliary facilities at the three units. As part of the closure plans, the Company is required to provide annual guarantees over the estimated life of the mines, based on a present value approach, and to furnish the funds for the asset retirement obligation. This law requires a review of closing plans every five years. Currently, the Company has pledged the value of its Lima office complex for 26% of the guarantee and with a stand-by letter of credit for the other 74% as security for this obligation. Through January 2026, the Company has provided total guarantees of $110.1 million.\n\n​\n\n149\n\n[Table of Contents](#TOC)\n\nOn July 20, 2021, the Peruvian Government published Law 31347, which requires companies in the production stage to set aside additional guarantees for progressive closure of its operations. The resources that back these guarantees will be returned to the Company when activities cease and the regulatory agency verifies that all closure measures have been satisfactorily completed. Under this Law, companies must include activities for environmental remediation within the closure schedule and assume costs associated with environmental impacts that are identified during audits. On March 19, 2025, the regulation attached to this Law was published. This new regulation establishes a three-year period to update the guarantee constitution table, including the main components of progressive closure. The Company is initiating the corresponding actions to comply with this new requirement within the established time frame, but does not expect this Law to have a material effect on its financial statements.\n\n​\n\nIn April 2024, the Company adjusted its estimate for the asset retirement obligation due to an update to the closure plan for its Ilo facility. The effect was a decrease of $3.2 million in the asset retirement obligation. Additionally, in December 2025, the Company updated estimates for all of its facilities; the effect was a $5.7 million decrease in the asset retirement obligation and a $2.6 million reduction in the retirement asset; the difference of $3.1 million was recorded as a reduction in cost of goods sold.\n\n​\n\nMexican operations:\n\n​\n\nThe Company has recognized an estimated asset retirement obligation for its mining properties in Mexico as part of its environmental commitment. Even though there is currently no enacted law, statute, ordinance, written or oral contract requiring the Company to carry out mine closure and environmental remediation activities, the Company believes that an obligation presently exists based on historical government requirements for the closure of any facility. The overall cost recognized for mining closure in Mexico includes the estimated costs of dismantling concentrators, smelter and refinery plants, shops and other facilities.\n\n​\n\nIn 2025 and 2024, the Company adjusted its estimate for the asset retirement obligation for its Mexican operations, mainly due to a detailed review of the closing activities required and an update to life-of-mine plans for the Buenavista operations. The effect of this change in 2025 was a $106.7 million decrease in the asset retirement obligation and a $48.8 million reduction in the retirement asset; the difference of $57.9 million was recorded as a reduction in cost of goods sold. The effect in 2024 was a $119.2 million decrease in the asset retirement obligation and a $53.9 million reduction in the retirement asset; the difference of $65.3 million was recorded as a reduction in cost of goods sold.\n\n​\n\nThe following table summarizes the asset retirement obligation activity for the years ended December 31, 2025 and 2024 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nBalance as of January 1,\n\n​\n\n$\n\n546.1\n\n​\n\n$\n\n612.5\n\nChanges in estimates\n\n​\n\n \n\n(112.4)\n\n​\n\n \n\n(116.6)\n\nAdditions\n\n​\n\n \n\n5.3\n\n​\n\n \n\n24.6\n\nClosure payments\n\n​\n\n \n\n(1.0)\n\n​\n\n \n\n—\n\nAccretion expense\n\n​\n\n \n\n33.0\n\n​\n\n \n\n25.7\n\nBalance as of December 31, \n\n​\n\n$\n\n471.1\n\n​\n\n$\n\n546.1\n\n​\n\n​\n\n150\n\n[Table of Contents](#TOC)\n\n​\n\n**NOTE 11—FINANCING:**\n\n​\n\n*Long-term debt (in millions):*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Carrying**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**value as**** ****of**\n\n​\n\n​\n\n**Face**\n\n​\n\n**Issuance**\n\n​\n\n**Issuance**\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**amount**\n\n**  ​ ​ ​**\n\n**discount**\n\n**  ​ ​ ​**\n\n**costs**\n\n**  ​ ​ ​**\n\n**2025**\n\n9.250% Yankee bonds due 2028\n\n \n\n$\n\n51.2\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n51.2\n\n5.250% Minera Mexico Senior unsecured notes due 2032\n\n \n\n \n\n1,000\n\n​\n\n​\n\n(5.5)\n\n​\n\n​\n\n(5.7)\n\n​\n\n \n\n988.8\n\n7.500% Senior unsecured notes due 2035\n\n​\n\n​\n\n1,000\n\n​\n\n​\n\n(9.3)\n\n​\n\n​\n\n(6.1)\n\n​\n\n​\n\n984.6\n\n6.750% Senior unsecured notes due 2040\n\n \n\n \n\n1,100\n\n​\n\n​\n\n(5.9)\n\n​\n\n​\n\n(4.7)\n\n​\n\n \n\n1,089.4\n\n5.250% Senior unsecured notes due 2042\n\n​\n\n​\n\n1,200\n\n​\n\n​\n\n(16.0)\n\n​\n\n​\n\n(5.3)\n\n​\n\n​\n\n1,178.7\n\n5.875% Senior unsecured notes due 2045\n\n \n\n \n\n1,500\n\n​\n\n​\n\n(14.4)\n\n​\n\n​\n\n(7.6)\n\n​\n\n \n\n1,478.1\n\n4.500% Minera Mexico Senior unsecured notes due 2050\n\n​\n\n​\n\n1,000\n\n​\n\n​\n\n(11.3)\n\n​\n\n​\n\n(8.8)\n\n​\n\n \n\n979.9\n\nTotal\n\n​\n\n$\n\n6,851.2\n\n​\n\n$\n\n(62.3)\n\n​\n\n$\n\n(38.2)\n\n​\n\n \n\n6,750.7\n\nLess, current portion\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n—\n\nTotal long-term debt\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n6,750.7\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Carrying**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**value as of**\n\n​\n\n​\n\n**Face**\n\n​\n\n**Issuance**\n\n​\n\n**Issuance**\n\n​\n\n**December 31, **\n\n​\n\n​\n\n**amount**\n\n​\n\n**discount**\n\n​\n\n**costs**\n\n​\n\n**2024**\n\n3.875% Senior unsecured notes due 2025\n\n​\n\n$\n\n500\n\n​\n\n$\n\n(0.1)\n\n​\n\n$\n\n(0.1)\n\n​\n\n$\n\n499.8\n\n9.250% Yankee bonds due 2028\n\n​\n\n \n\n51.2\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n \n\n51.2\n\n7.500% Senior unsecured notes due 2035\n\n​\n\n \n\n1,000\n\n​\n\n​\n\n(9.9)\n\n​\n\n​\n\n(6.6)\n\n​\n\n \n\n983.5\n\n6.750% Senior unsecured notes due 2040\n\n​\n\n \n\n1,100\n\n​\n\n​\n\n(6.1)\n\n​\n\n​\n\n(4.9)\n\n​\n\n​\n\n1,089.0\n\n5.250% Senior unsecured notes due 2042\n\n​\n\n​\n\n1,200\n\n​\n\n​\n\n(16.6)\n\n​\n\n​\n\n(5.5)\n\n​\n\n \n\n1,177.9\n\n5.875% Senior unsecured notes due 2045\n\n​\n\n \n\n1,500\n\n​\n\n​\n\n(14.7)\n\n​\n\n​\n\n(7.8)\n\n​\n\n​\n\n1,477.5\n\n4.500% Minera Mexico Senior unsecured notes due 2050\n\n​\n\n \n\n1,000\n\n​\n\n​\n\n(11.6)\n\n​\n\n​\n\n(9.0)\n\n​\n\n \n\n979.4\n\nTotal\n\n​\n\n$\n\n6,351.2\n\n​\n\n$\n\n(59.0)\n\n​\n\n$\n\n(33.9)\n\n​\n\n \n\n6,258.3\n\nLess, current portion\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n(499.8)\n\nTotal long-term debt\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n$\n\n5,758.5\n\n​\n\nThe bonds, referred above as “Yankee bonds”, contain a covenant requiring Minera Mexico to maintain a ratio of EBITDA to interest expense of not less than 2.5 to 1.0 as such terms are defined in the debt instrument. At December 31, 2025, Minera Mexico was in compliance with this covenant.\n\n​\n\nBetween July 2005 and April 2015, the Company issued fixed-rate senior unsecured notes eight times for a total of $6.2 billion, as listed above. Interest on the notes is paid semi-annually in arrears. The notes rank *pari passu* with each other and rank *pari passu* in right of payment with all of the Company’s other existing and future unsecured and unsubordinated indebtedness. Net proceeds are being used for general corporate purposes, including the financing of the Company´s capital investment program. The notes were issued with an underwriters’ discount. The unamortized balance of the discount and the costs of these notes are presented net of the carrying value of the debt issued and are amortized as interest expense over the life of the loan.\n\n​\n\nThe indentures relating to the notes contain certain restrictive covenants, including limitations on liens, limitations on sale and leaseback transactions, rights of the holders of the notes upon the occurrence of a change of control triggering event, limitations on subsidiary indebtedness and limitations on consolidations, mergers, sales or conveyances. Certain of these covenants cease to be applicable before the notes mature if the Company obtains an investment grade rating. The Company obtained investment grade rating in 2005. The Company has registered these notes under the Securities\n\n151\n\n[Table of Contents](#TOC)\n\nAct of 1933, as amended. The Company may issue additional debt from time to time pursuant to certain of the indentures.\n\n​\n\nIf the Company experiences a “Change of Control Triggering Event”, the Company must offer to repurchase the notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any. A Change of Control Trigger Event means a Change of Control (as defined) and a rating decline (as defined), that is, if the rating of the notes, by at least one of the rating agencies shall be decreased by one or more gradations.\n\n​\n\nAt December 31, 2025, the Company was in compliance with the covenants of the notes.\n\n​\n\nIn 2019, SCC’s subsidiary Minera Mexico S.A. de C.V. issued an aggregate of $1.0 billion of fixed-rate senior notes. The notes constitute general unsecured obligations of Minera Mexico and were issued in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933.\n\n​\n\nThe indenture related to the notes contains covenants that limit Minera Mexico's ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all of Minera Mexico's assets.\n\n​\n\nIn February 2025, SCC’s subsidiary, Minera Mexico S.A. de C.V., issued $1.0 billion of fixed-rate senior notes. This debt was issued in one tranche, due in 2032 at an annual fixed interest rate of 5.625%. Accrued interest on the notes will be paid semi-annually in arrears. The Company is using the net proceeds from this offering (i) to finance Minera Mexico’s capital expenditures and (ii) for general corporate purposes, in each case in compliance with applicable law. The notes were issued with an underwriters’ discount of $6.2 million. Additionally, issuance costs of $6.4 million associated with these notes were paid and deferred. The unamortized balance of the discount and the costs are presented net of the carrying value of the debt issued and are amortized as interest expense over the life of the loan.\n\n​\n\nThe notes constitute general unsecured obligations of Minera Mexico.\n\n​\n\nIn connection with the transaction, in February 2025, Minera Mexico entered into a supplemental indenture with Computershare Trust Company N.A., as trustee, which provides for the issuance and sets forth the terms of the notes described above. The indenture contains covenants that limit Minera Mexico's ability to, among other things, incur certain liens securing indebtedness; engage in certain sale and leaseback transactions; and enter into certain consolidations, mergers, conveyances or transfers of all or substantially all of Minera Mexico's assets.\n\n​\n\nIn February 2025, Moody’s investors service assigned its Baa1 as the debt rating on the new notes issued. The same month, Fitch and Standard & Poor’s ratings services assigned its ‘BBB+’ rating for new notes issued.\n\n​\n\n*Debt repayment:*\n\n​\n\nOn April 22, 2025, the Company settled the 3.875% senior unsecured notes due 2025. The settlement included principal of $500 million and accrued interest of $9.7 million.\n\n​\n\n152\n\n[Table of Contents](#TOC)\n\nAggregate maturities of the outstanding borrowings as of December 31, 2025, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Principal**\n\n**Years**\n\n​\n\n**Due(*)**\n\n​\n\n​\n\n**(in millions)**\n\n2026\n\n \n\n$\n\n—\n\n2027\n\n​\n\n​\n\n—\n\n2028\n\n​\n\n \n\n51.2\n\n2029\n\n​\n\n \n\n—\n\n2030\n\n​\n\n​\n\n—\n\nThereafter\n\n​\n\n \n\n6,800.0\n\nTotal\n\n​\n\n$\n\n6,851.2\n\n(*)Total debt maturities do not include the debt discount valuation account of $100.5 million.\n\n​\n\n​\n\n**NOTE 12—BENEFIT PLANS:**\n\n​\n\n*Mexican operations:*\n\n​\n\n*Defined contribution plan***\n\n​\n\nThe Company’s Mexican subsidiaries have a defined contribution pension plan for salaried employees and a non-contributory defined benefit pension plan for union employees (the “Mexican Plan”).\n\n​\n\n​\n\nThe components of net periodic benefit costs calculated in accordance with ASC 715 “Compensation retirement benefits,” using December 31 as a measurement date, consist of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nService cost\n\n​\n\n$\n\n2.7\n\n​\n\n$\n\n2.2\n\n​\n\n$\n\n2.3\n\nInterest cost\n\n​\n\n \n\n3.7\n\n​\n\n \n\n3.0\n\n​\n\n \n\n3.2\n\nExpected return on plan assets\n\n​\n\n \n\n(7.7)\n\n​\n\n \n\n(5.1)\n\n​\n\n \n\n(5.5)\n\nAmortization of net actuarial loss\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n—\n\n​\n\n​\n\n0.1\n\nAmortization of prior service cost / (credit)\n\n​\n\n \n\n(0.4)\n\n​\n\n \n\n0.2\n\n​\n\n \n\n0.7\n\nAmortization of net loss/(gain)\n\n​\n\n \n\n0.2\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nNet periodic benefit cost\n\n​\n\n$\n\n(1.4)\n\n​\n\n$\n\n0.3\n\n​\n\n$\n\n0.8\n\n​\n\n153\n\n[Table of Contents](#TOC)\n\nThe change in benefit obligation and plan assets and a reconciliation of funded status are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Change in benefit obligation:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProjected benefit obligation at beginning of year\n\n​\n\n$\n\n36.1\n\n​\n\n$\n\n39.7\n\nService cost\n\n​\n\n \n\n2.7\n\n​\n\n \n\n2.2\n\nInterest cost\n\n​\n\n \n\n3.7\n\n​\n\n \n\n3.0\n\nBenefits paid\n\n​\n\n \n\n(3.4)\n\n​\n\n \n\n(3.7)\n\nActuarial loss\n\n​\n\n \n\n2.6\n\n​\n\n \n\n1.6\n\nInflation adjustment\n\n​\n\n \n\n4.2\n\n​\n\n \n\n(6.7)\n\nProjected benefit obligation at end of year\n\n​\n\n$\n\n45.9\n\n​\n\n$\n\n36.1\n\n*Change in plan assets:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair value of plan assets at beginning of year\n\n​\n\n$\n\n68.8\n\n​\n\n$\n\n64.0\n\nActual return on plan assets\n\n​\n\n \n\n23.9\n\n​\n\n \n\n16.0\n\nEmployer contributions\n\n​\n\n \n\n(0.9)\n\n​\n\n \n\n(0.6)\n\nCurrency exchange rate adjustment\n\n​\n\n \n\n8.8\n\n​\n\n \n\n(10.6)\n\nFair value of plan assets at end of year\n\n​\n\n$\n\n100.6\n\n​\n\n$\n\n68.8\n\nFunded status at end of year:\n\n​\n\n$\n\n54.7\n\n​\n\n$\n\n32.7\n\n*ASC-715 amounts recognized in statement of financial position consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNon-current assets\n\n​\n\n$\n\n54.7\n\n​\n\n$\n\n32.7\n\nTotal\n\n​\n\n$\n\n54.7\n\n​\n\n$\n\n32.7\n\n*ASC-715 amounts recognized in accumulated other comprehensive income (net of income taxes of**$7.5**million and**$1.7**million in 2025 and 2024, respectively) consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet loss (gain)\n\n​\n\n$\n\n(12.1)\n\n​\n\n$\n\n(3.4)\n\nPrior service cost\n\n​\n\n \n\n0.8\n\n​\n\n \n\n0.8\n\nTotal\n\n​\n\n$\n\n(11.3)\n\n​\n\n$\n\n(2.6)\n\n​\n\nThe following table summarizes the changes in accumulated other comprehensive income for the years ended December 31, related to the defined benefit pension plan, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Reconciliation of accumulated other comprehensive income:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccumulated other comprehensive income at beginning of plan year\n\n​\n\n$\n\n(2.6)\n\n​\n\n$\n\n3.8\n\nNet (gain) loss occurring during the year\n\n​\n\n \n\n(8.2)\n\n​\n\n \n\n(5.6)\n\nSettlement/curtailment\n\n​\n\n​\n\n(0.1)\n\n​\n\n​\n\n(0.1)\n\nCurrency exchange rate adjustment\n\n​\n\n \n\n(0.5)\n\n​\n\n \n\n(0.6)\n\nNet adjustment to accumulated other comprehensive income (net of income taxes of $5.8 million and $4.3 million in 2025 and 2024, respectively)\n\n​\n\n \n\n(8.8)\n\n​\n\n \n\n(6.4)\n\nAccumulated other comprehensive income at end of plan year\n\n​\n\n$\n\n(11.3)\n\n​\n\n$\n\n(2.6)\n\n​\n\nThe following table summarizes the amounts in accumulated other comprehensive income amortized and recognized as a component of net periodic benefit cost in 2025 and 2024, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nNet loss / (gain)\n\n​\n\n$\n\n(8.2)\n\n​\n\n$\n\n(5.6)\n\nAmortization of net (loss) gain\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal amortization expenses\n\n​\n\n$\n\n(8.2)\n\n​\n\n$\n\n(5.6)\n\n​\n\n154\n\n[Table of Contents](#TOC)\n\nThe assumptions used to determine the pension obligations are:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican Plan(*)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nDiscount rate\n\n \n\n9.31\n\n%  \n\n10.19\n\n%  \n\n9.98\n\n%\n\nExpected long-term rate of return on plan asset\n\n \n\n9.31\n\n%  \n\n10.19\n\n%  \n\n9.98\n\n%\n\nRate of increase in future compensation level\n\n \n\n4.75\n\n%  \n\n4.75\n\n%  \n\n5.00\n\n%\n\n(*)These rates are based on Mexican pesos as pension obligations are denominated in this currency.\n\n​\n\nThe scheduled maturities of the benefits expected to be paid in each of the next five years, and thereafter, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Expected**\n\n**Years**\n\n​\n\n**Benefit Payments**\n\n​\n\n​\n\n**(in millions)**\n\n2026\n\n​\n\n$\n\n9.0\n\n2027\n\n​\n\n \n\n3.4\n\n2028\n\n​\n\n \n\n4.0\n\n2029\n\n​\n\n \n\n3.8\n\n2030\n\n​\n\n \n\n4.1\n\n2031 to 2035\n\n​\n\n \n\n26.2\n\nTotal\n\n​\n\n$\n\n50.5\n\n​\n\n*Funding policy*\n\n​\n\nMinera Mexico’s policy for determining asset mix targets includes periodic consultation with recognized third-party investment consultants. The expected long-term rate of return on plan assets is updated periodically, taking into consideration assets allocations, historical returns and the current economic environment. The fair value of plan assets is impacted by general market conditions. If actual returns on plan assets vary from the expected returns, actual results could differ.\n\n​\n\nThe plan assets are managed by two financial institutions, Actinver S.A. and GBM Grupo Bursatil Mexicano, S.A. 70% of the funds are invested in Mexican government securities, including treasury certificates and development bonds of the Mexican government. The remaining 30% is invested in common shares of Grupo Mexico. The plan assets are invested without restriction in active markets that are accessible when required and are therefore considered as level 1, in accordance with ASC 820 “Fair Value Measurement.”\n\n​\n\nThese plans accounted for approximately 100% of benefit obligations. The following table represents the asset mix of the investment portfolio as of December 31:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n** **\n\nAsset category:\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTreasury bills\n\n​\n\n70\n\n%  \n\n75\n\n%\n\nEquity securities\n\n​\n\n30\n\n%  \n\n25\n\n%\n\n​\n\n \n\n100\n\n%  \n\n100\n\n%\n\n​\n\nThe amount of contributions that the Company expects to pay to the plan in 2026 totals $9.0 million.\n\n​\n\n*Mexican Health Plan*\n\n​\n\nStarting in 2011, the Mexican Institute of Social Security began providing health care services to retired workers of the Buenavista unit and their families. These services are free of charge to the retired workers, and their costs are covered by the Company.\n\n​\n\n155\n\n[Table of Contents](#TOC)\n\nThe components of net period benefit costs for the three years ended December 31, 2025 are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nInterest cost\n\n​\n\n$\n\n2.3\n\n​\n\n$\n\n1.8\n\n​\n\n$\n\n2.2\n\nAmortization of net loss (gain)\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nNet periodic benefit cost\n\n​\n\n$\n\n2.3\n\n​\n\n$\n\n1.8\n\n​\n\n$\n\n2.2\n\n​\n\nThe change in benefit obligation and a reconciliation of funded status are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Change in benefit obligation:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProjected benefit obligation at beginning of year\n\n​\n\n$\n\n21.2\n\n​\n\n$\n\n22.7\n\nInterest cost\n\n​\n\n \n\n2.3\n\n​\n\n \n\n1.8\n\nBenefits paid\n\n​\n\n \n\n(1.9)\n\n​\n\n \n\n(1.4)\n\nActuarial (gain)\n\n​\n\n \n\n1.5\n\n​\n\n \n\n1.8\n\nInflation adjustment\n\n​\n\n \n\n2.5\n\n​\n\n \n\n(3.7)\n\nProjected benefit obligation at end of year\n\n​\n\n$\n\n25.6\n\n​\n\n$\n\n21.2\n\nFunded status at end of year:\n\n​\n\n$\n\n25.6\n\n​\n\n$\n\n21.2\n\n*ASC-715 amounts recognized in statement of financial position consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent liabilities\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\nNon-current liabilities\n\n​\n\n \n\n(25.6)\n\n​\n\n \n\n(21.2)\n\nTotal\n\n​\n\n$\n\n(25.6)\n\n​\n\n$\n\n(21.2)\n\n*ASC-715 amounts recognized in accumulated other comprehensive income consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet loss (gain)\n\n​\n\n$\n\n3.2\n\n​\n\n$\n\n2.0\n\nTotal (net of income taxes of $(1.4) million and $(0.8) million in 2025 and 2024, respectively)\n\n​\n\n$\n\n3.2\n\n​\n\n$\n\n2.0\n\n​\n\nThe following table summarizes the changes in accumulated other comprehensive income for the years ended December 31, related to the post-retirement health care plan, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Reconciliation of accumulated other comprehensive income:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccumulated other comprehensive income at beginning of plan year\n\n​\n\n$\n\n2.0\n\n​\n\n$\n\n0.9\n\nNet loss/(gain) occurring during the year\n\n​\n\n \n\n1.0\n\n​\n\n \n\n1.2\n\nCurrency exchange rate adjustment\n\n​\n\n \n\n0.2\n\n​\n\n \n\n(0.1)\n\nNet adjustment to accumulated other comprehensive income (net of income taxes of $0.5 million and $0.5 million in 2025 and 2024, respectively)\n\n​\n\n \n\n1.2\n\n​\n\n \n\n1.1\n\nAccumulated other comprehensive income at end of plan year\n\n​\n\n$\n\n3.2\n\n​\n\n$\n\n2.0\n\n​\n\nThe following table summarizes the amounts in accumulated other comprehensive income amortized and recognized as a component of net periodic benefit cost in 2025 and 2024, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nNet loss / (gain)\n\n​\n\n$\n\n1.0\n\n​\n\n$\n\n1.2\n\nAmortization of net (loss) gain\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal amortization expenses\n\n​\n\n$\n\n1.0\n\n​\n\n$\n\n1.2\n\n​\n\n156\n\n[Table of Contents](#TOC)\n\nThe discount rates used in the calculation of other post-retirement benefits and cost as of December 31 were:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nMexican health plan\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWeighted average discount rate\n\n \n\n9.31\n\n%  \n\n10.19\n\n%  \n\n9.98\n\n%\n\n​\n\nThe benefits expected to be paid in each of the next five years, and thereafter, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Expected**\n\n**Year**\n\n​\n\n**Benefit Payments**\n\n​\n\n​\n\n**(in millions)**\n\n2026\n\n​\n\n$\n\n1.9\n\n2027\n\n​\n\n​\n\n2.0\n\n2028\n\n​\n\n \n\n2.0\n\n2029\n\n​\n\n \n\n2.1\n\n2030\n\n​\n\n \n\n2.2\n\n2031 to 2035\n\n​\n\n \n\n11.6\n\nTotal\n\n​\n\n$\n\n21.8\n\n​\n\nFor measurement purposes, a 5.0% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2025 and remains at that level thereafter.\n\n​\n\nAn increase in other benefit cost trend rates has a significant effect on the amount of the reported obligations, as well as component cost of the other benefit plan. One percentage-point change in assumed other benefits cost trend rates would have the following effects:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**One Percentage**\n\n​\n\n​\n\n**Point**\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**Increase**\n\n**  ​ ​ ​**\n\n**Decrease**\n\nEffect on total service and interest cost components\n\n​\n\n$\n\n2.5\n\n​\n\n$\n\n2.0\n\nEffect on the post-retirement benefit obligation\n\n​\n\n$\n\n26.4\n\n​\n\n$\n\n24.2\n\n​\n\n​\n\n​\n\n​\n\n​\n\n157\n\n[Table of Contents](#TOC)\n\n*Corporate operations:*\n\n​\n\n*Post-retirement defined benefit plan*\n\n​\n\nThe Company had a noncontributory defined benefit pension plan covering former salaried employees in the United States and certain former expatriate employees in Peru (the “Expatriate Plan”). On July 24, 2025, the Board of Directors of the Company authorized the termination of the Expatriate Plan. This termination became effective December 1, 2025. The termination was a standard termination. The Expatriate Plan had been frozen and closed to new participants and accruals of benefits since November of 2000.\n\n​\n\nThe Expatriate Plan’s benefit obligation was settled by the purchase of annuity contracts to transfer the plan’s remaining obligations to third parties. The settlement of the obligation was funded with plan assets, and the Company made a cash contribution of $0.3 million to fully fund the plan. Pension settlement charges related to the Expatriate Plan termination were recorded in the fourth quarter of 2025 and included the recognition of approximately $4.9 million as “other income (expense)” within the Company's consolidated statements of earnings, net of income tax of $2.1 million. This represented the plan losses previously recognized within accumulated other comprehensive loss on the Company’s consolidated balance sheet. The Expatriate Plan termination had no material impact on the Company’s financial statements, and the termination process is expected to be completed by April 30, 2026. As of December 31, 2025, there were no remaining balances on the Company’s consolidated balance sheet related to the Expatriate Plan.\n\n​\n\nThe components of net periodic benefit costs calculated in accordance with ASC 715 “Compensation retirement benefits,” using December 31 as a measurement date, consist of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nInterest cost\n\n​\n\n$\n\n0.2\n\n​\n\n$\n\n0.3\n\n​\n\n$\n\n0.4\n\nExpected return on plan assets\n\n​\n\n \n\n(0.2)\n\n​\n\n \n\n(0.4)\n\n​\n\n \n\n(0.4)\n\nAmortization of net loss/(gain)\n\n​\n\n \n\n0.2\n\n​\n\n \n\n0.3\n\n​\n\n \n\n0.3\n\nNet periodic benefit cost\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.2\n\n​\n\n$\n\n0.3\n\n​\n\n​\n\n158\n\n[Table of Contents](#TOC)\n\nThe change in benefit obligation and plan assets and a reconciliation of funded status are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Change in benefit obligation:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProjected benefit obligation at beginning of year\n\n​\n\n$\n\n6.9\n\n​\n\n$\n\n7.7\n\nInterest cost\n\n​\n\n \n\n0.2\n\n​\n\n \n\n0.3\n\nBenefits paid\n\n​\n\n \n\n(0.5)\n\n​\n\n \n\n(0.7)\n\nAnnuity purchases (paid)\n\n​\n\n​\n\n(8.7)\n\n​\n\n​\n\n—\n\nActuarial loss - plan termination\n\n​\n\n​\n\n2.0\n\n​\n\n​\n\n—\n\nActuarial loss (gain)\n\n​\n\n \n\n0.1\n\n​\n\n \n\n(0.1)\n\nActuarial loss (gain) assumption changes\n\n​\n\n \n\n—\n\n​\n\n \n\n(0.3)\n\nProjected benefit obligation at end of year\n\n​\n\n$\n\n0.0\n\n​\n\n$\n\n6.9\n\n*Change in plan assets:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair value of plan assets at beginning of year\n\n​\n\n$\n\n8.6\n\n​\n\n$\n\n9.2\n\nActual return on plan assets\n\n​\n\n \n\n0.4\n\n​\n\n \n\n0.1\n\nEmployer contributions\n\n​\n\n \n\n0.3\n\n​\n\n \n\n—\n\nBenefits paid\n\n​\n\n \n\n(0.5)\n\n​\n\n \n\n(0.7)\n\nAnnuity purchases (paid)\n\n​\n\n​\n\n(8.7)\n\n​\n\n​\n\n—\n\nFair value of plan assets at end of year\n\n​\n\n$\n\n0.0\n\n​\n\n$\n\n8.6\n\nFunded status at end of year:\n\n​\n\n$\n\n0.0\n\n​\n\n$\n\n1.7\n\n*ASC-715 amounts recognized in statement of financial position consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNon-current assets\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1.7\n\nTotal\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1.7\n\n*ASC-715 amounts recognized in accumulated other comprehensive income (net of income taxes of**$0.0**million and**$(2.1)**million in 2025 and 2024, respectively) consists of:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet loss (gain)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n3.1\n\nTotal\n\n​\n\n$\n\n—\n\n​\n\n$\n\n3.1\n\n​\n\nThe following table summarizes the changes in accumulated other comprehensive income for the years ended December 31, related to the defined benefit pension plan, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n*Reconciliation of accumulated other comprehensive income:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccumulated other comprehensive income at beginning of plan year\n\n​\n\n$\n\n3.1\n\n​\n\n$\n\n3.5\n\nNet (gain) loss occurring during the year\n\n​\n\n \n\n2.0\n\n​\n\n \n\n(0.2)\n\nNet (gain) amortized during the year\n\n​\n\n \n\n(0.1)\n\n​\n\n \n\n(0.3)\n\nSettlement\n\n​\n\n​\n\n(4.9)\n\n​\n\n​\n\n—\n\nNet adjustment to accumulated other comprehensive income (net of income taxes of $2.1 million and $0.0 million in 2025 and 2024, respectively)\n\n​\n\n \n\n(3.1)\n\n​\n\n \n\n(0.5)\n\nAccumulated other comprehensive income at end of plan year\n\n​\n\n$\n\n—\n\n​\n\n$\n\n3.1\n\n​\n\nThe following table summarizes the amounts in accumulated other comprehensive income amortized and recognized as a component of net periodic benefit cost in 2025 and 2024, net of income tax:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n**(in millions)**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nNet loss / (gain)\n\n​\n\n$\n\n2.0\n\n​\n\n$\n\n(0.2)\n\nAmortization of net (loss) gain\n\n​\n\n \n\n(0.1)\n\n​\n\n \n\n(0.3)\n\nTotal amortization expenses\n\n​\n\n$\n\n1.9\n\n​\n\n$\n\n(0.5)\n\n​\n\n​\n\n159\n\n[Table of Contents](#TOC)\n\nThe assumptions used to determine the pension obligations are:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Expatriate Plan**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nDiscount rate\n\n \n\n5.30\n\n%  \n\n5.30\n\n%  \n\n4.65\n\n%\n\nExpected long-term rate of return on plan asset\n\n \n\n4.00\n\n%  \n\n4.00\n\n%  \n\n4.50\n\n%\n\nRate of increase in future compensation level\n\n \n\nN/A\n\n​\n\nN/A\n\n​\n\nN/A\n\n​\n\n​\n\n​\n\n**NOTE 13—COMMITMENTS AND CONTINGENCIES:**\n\n​\n\n**Environmental matters:**\n\n​\n\nThe Company has established comprehensive environmental conservation programs at its mining facilities in Peru and Mexico. The Company’s environmental programs include water recovery systems to conserve water and minimize the impact on nearby streams, reforestation programs to stabilize the surface of the tailings dams and the implementation of scrubbing technology in the mines to reduce dust emissions, among others.\n\n​\n\nEnvironmental capital investments in years 2025, 2024 and 2023 were as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nPeruvian operations\n\n​\n\n$\n\n22.1\n\n​\n\n$\n\n4.4\n\n​\n\n$\n\n7.7\n\nMexican operations\n\n​\n\n \n\n193.6\n\n​\n\n \n\n173.0\n\n​\n\n \n\n100.6\n\n​\n\n​\n\n$\n\n215.7\n\n​\n\n$\n\n177.4\n\n​\n\n$\n\n108.3\n\n​\n\nPeruvian operations: The Company’s operations are subject to applicable Peruvian environmental laws and regulations. The Peruvian government, through the Ministry of Environment (“MINAM”) conducts annual audits of the Company’s Peruvian mining and metallurgical operations. Through these environmental audits, matters relating to environmental and legal compliance, atmospheric emissions, effluent monitoring and waste management are reviewed. The Company believes that it is in material compliance with applicable Peruvian environmental laws and regulations. Peruvian law requires that companies in the mining industry provide assurances for future mine closure and remediation. In accordance with the requirements of this law, the Company’s closure plans were approved by MINEM. See Note 10 “Asset retirement obligation” for further discussion of this matter.\n\n​\n\n*Air Quality Standards (“AQS”):* In June 2017, MINAM enacted a supreme decree which defined new AQS for daily sulfur dioxide in the air. As of December 31, 2025, the Company maintains the daily average level of µg/m3 of SO2, which falls below the requirement of the AQS.\n\n​\n\nIn November 2023, MINAM enacted a new *AQS* for Cadmium, Arsenic and Chromium in particulate matter less than ten microns (PM10). A review of the Company´s chemical monitoring results has determined that the Company´s operations will not be significantly impacted by the new standards and concentration values in place. Our results are expected to continue to fall below regulatory *AQS*.\n\n​\n\n*Soil Environmental Quality Standards (“SQS”):* In 2013, the Peruvian government enacted Soil Quality Standards. In accordance with the regulatory requirements of the law, the Company prepared Soil Decontamination Plans (“SDP”) for environmentally impacted sites at each of its operation units (Toquepala, Cuajone and Ilo) with the assistance of consulting companies. The costs of these SDPs are not material, either individually or in aggregated form, for the financial statements of the Company.\n\n​\n\n160\n\n[Table of Contents](#TOC)\n\n*Climate change:* On April 17, 2018, the Peruvian government enacted Law N. 30754, which promotes public and private investments in climate change management and establishes a Climate Change Framework. The law proposes creating an institutional framework to address climate change in Peru and outlines new measures for climate change mitigation, such as provisions to address an increase in carbon capture and use of carbon sinks; afforestation and reforestation practices; land use changes; sustainable systems of transportation, solid waste management, and energy systems. This climate change framework law incorporates obligations from the Paris Agreement. Supreme Decree 013-2019 published on December 31, 2019, enacted statutory regulations, which are applicable to all Peruvian institutions and agencies. It is expected that additional Peruvian regulations will be applicable to non-governmental entities. However, no carbon pricing mechanism is currently applicable to the Company’s operations in Peru.\n\n​\n\nMexican operations: The Company’s operations are subject to applicable Mexican federal, state and municipal environmental laws, to Mexican official standards, and to regulations for the protection of the environment, including regulations relating to water supply, water quality, air quality, noise levels and hazardous and solid waste.\n\n​\n\nThe principal legislation applicable to the Company’s Mexican operations is the Federal General Law of Ecological Balance and Environmental Protection (the “General Law”), which is enforced by the Federal Bureau of Environmental Protection (“PROFEPA”). PROFEPA monitors compliance with environmental legislation and enforces Mexican environmental laws, regulations and official standards. It may also initiate administrative proceedings against companies that violate environmental laws, which in the most extreme cases may result in the temporary or permanent shutdown of non-complying facilities, the revocation of operating licenses and/or other sanctions or fines.\n\n​\n\nIn 2011, the General Law was amended to provide an individual or entity the ability to contest administrative acts, including environmental authorizations, permits or concessions granted, without the need to demonstrate the actual existence of harm to the environment as long as it can be argued that the harm may be caused. Additionally, amendments to the Civil Federal Procedures Code (“CFPC”) were enacted in 2011 and established three categories of collective actions under which a group of 30 or more individuals can be considered sufficient to prove a “legitimate interest” to file civil actions for injuries arising out of alleged violations of environmental, consumer protection, financial services and Antitrust laws. The group can seek restitution or economic compensation for the alleged injuries or suspension of the activities which allegedly caused the injuries in question. The amendments to the CFPC may result in more litigation, with plaintiffs seeking remedies, including suspension of the activities alleged to cause harm.\n\n​\n\nIn 2013, the Environmental Liability Federal Law was enacted. The law establishes general guidelines for actions considered likely to cause environmental harm. If a possible determination regarding harm occurs, environmental clean-up and remedial actions sufficient to restore the environment to a pre-existing condition must be taken. If restoration is not possible, compensation measures should be provided. Criminal penalties and monetary fines can be imposed under this law.\n\n​\n\n*Guaymas sulfuric acid spill:*In July 2019, there was an incident at the Company´s Marine Terminal in Guaymas, Sonora, that caused the discharge of approximately three cubic meters of sulfuric acid into the sea in the industrial port area. PROFEPA, after two inspections, declared a partial shutdown of the storage process and transportation of sulfuric acid at the terminal arguing the absence of an authorization of environmental impact, despite the fact that the Company’s exempt to the permit because these facilities have been in operation since 1979, prior to the 1988 Mexican General Law of Ecological Balance and the Protection of the Environment. The Company has resolved this issue and expects to restart operations in the future.\n\n​\n\n161\n\n[Table of Contents](#TOC)\n\n*Climate change:*Several taxes are applicable to the Company’s mining operations in Mexico, including federal and state fossil fuel taxes, and the requirements associated with Mexico’s emission trading scheme. These taxes range from $US9/tCO2 to $US18/tCO2 in 2023, approximately. These regional taxes are applicable in the States of Baja California, Zacatecas and San Luis Potosí, as well as a federal tax linked to the import of fuels. In addition, an emission trading scheme (ETS) in Mexico is currently available to the Company which is only applicable to two business units, the metallurgic and lime plants in Sonora, which both generate annual GHG emissions levels above the threshold of 100,000 tCO2 per year contemplated by the scheme. These two units are required to report and verify their emissions once a year with average costs of less than $6,000 per unit. Units that emit more than 25,000 tonnes CO2 equivalent per year (all our Mexican units) are required to report their emissions to the National Emissions Registry (RENE) annually and to verify the reported emissions every three years. Total expenses to ensure annual compliance with climate change regulations in Mexico are not material to the Company.\n\n​\n\nOn May 9, 2023, Mexican Congress approved several changes effective immediately to the Mining Law, National Waters Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Integral Management of Waste. The main changes are reducing mining concession terms from 50 to 30 years; new restrictions and conditions on water use; requirements to provide guarantees for closure and remediation of operations; and a requirement to contribute 5% of net earnings to indigenous communities for new projects and significant changes to exploration rules.\n\n​\n\nThese amendments to the law have been challenged and are being reviewed by the Supreme Court. The Company is not expecting any negative impacts on its operations.\n\n​\n\nThe Company believes that all of its facilities in Peru and Mexico are in material compliance with environmental, mining and other applicable laws and regulations. The Company also believes that continued compliance with environmental laws of Mexico and Peru will have no material adverse effects on the Company’s business, properties, or operating results.\n\n​\n\n**Litigation matters**:\n\n​\n\nPeruvian operations:\n\n​\n\n*Peruvian Labor Shares*\n\n​\n\nIn 1996, Edgardo García Ataucuri and other former employees filed a lawsuit against the Company seeking the delivery of “labor shares” (*acciones laborales*), which were issued by the Peruvian Branch pursuant to the legal requirements of a Peruvian Law issued in 1979 (which has since been repealed), which mandated that mining workers receive a 10% share of their employer enterprises’ pre-tax profits. This participation was distributed 40% in cash and 60% in equity interest in the enterprise. The Twenty-Second Civil Court of Lima ruled in favor of the plaintiffs and ordered the delivery of labor share certificates. The ruling was upheld by the Civil Chamber Court in 2000 and by the Supreme Court in 2009.\n\n​\n\nThe proceedings are currently in the judgment execution stage. The Court ordered a registered lien on 10,501,857 “investment shares” (formerly referred to as “Labor Shares”) held by the Peruvian Branch and by its Peruvian affiliate, Compañía Minera Los Tolmos S.A. At this stage, the Civil Chamber Court annulled the expert report that underpinned the execution of the judgment and ordered a new appraisal report that must consider the investment share account, capital increases and contributions, and the current value of the total shares, setting a technical prerequisite before any physical delivery can occur.\n\n​\n\nOn December 22, 2025, the Company learned through the Judicial Branch's online case file consultation system that the First Civil Court of Lima had issued Resolutions No. 739, 740, 742, and 743, which ordered the physical delivery of 8,488,383 investment shares held by Compañía Minera Los Tolmos and instructing the Securities and Settlement Registry (“CAVALI”) to register the ownership of the investment shares in favor of the plaintiffs. The rulings\n\n162\n\n[Table of Contents](#TOC)\n\ndetermined that a labor share’s current value is equivalent to an investment share prior to the finalization of the appraisal ordered by the Civil Chamber Court, which is essential to determine the current value of the labor shares.\n\n​\n\nConsequently, on December 30, 2025, the Company filed appeals against these rulings, seeking an injunction to prevent a title transfer prior to the finalization of the expert appraisal report, and filed a lawsuit seeking constitutional protection challenging the Court’s interpretation of the value of the labor share. It is estimated that the Superior Court of Lima will rule on the appeals filed by the Company during 2026. At this time, the Company cannot predict the outcome of these appeals.\n\n​\n\nIn relation to the writ of protection filed by the Company to challenge the interpretation adopted at the enforcement stage (i.e., the automatic assimilation between “labor shares” and “investment shares”), such action was resolved by a Ruling (Resolution No. 4) dated February 11, 2026, issued by the 9th Constitutional Court of Lima in Case No. 11956‑2025‑0‑1801‑JR‑DC‑09, which declared the claim well‑founded. Accordingly, the ruling declared the nullity of the resolutions issued in the civil enforcement proceedings: (i) Resolution No. 505 (September 23, 2015), (ii) Resolution No. 518 (October 23, 2015), and (iii) Resolution No. 08 (May 16, 2025), which ordered the attachment by registration over shares held by Compañia Minera Los Tolmos S.A. and the Peruvian Branch and served as the basis for the order to deliver investment shares. The Company requested the immediate enforcement of the first‑instance judgment, which was resolved by Resolution No. 01, notified on February 24, 2026, declaring the request well‑founded and ordering the First Civil Court to provisionally refrain from executing any acts of registration, transfer, or change of ownership based on the attachment ordered by Resolutions No. 505 and No. 518, as well as by Appellate Resolution No. 08.\n\n​\n\n*The Tia Maria Mining Project*\n\n​\n\nThere are seven lawsuits filed against the Peruvian Branch of the Company related to the Tia Maria project. The lawsuits seek (i) to declare null and void the resolution that approved the Environmental Impact Assessment of the project; (ii) the cancellation of the project and the withdrawal of mining activities in the area; (iii) to annul the mining concession application for the Tia Maria project; (iv) to annul the resolution that approved the construction license; (v) to suspend construction work on the project; and (vi) to declare the expiration of the Environmental Impact Assessment. The lawsuits were filed by Messrs. Ernesto Mendoza Padilla (filed May 26, 2015), Juan Alberto Guillen Lopez (filed June 18, 2015), Junta de Usuarios del Valle del Tambo (filed April 30, 2015), Gobierno Regional de Arequipa (filed December 16, 2019), Municipalidad Distrital de Dean Valdivia (filed January 24, 2020), Cristhian Torres Quispe et al. (filed March 20, 2025) and Juan Miguel Meza Igme et al. (filed March 28, 2025).\n\n​\n\nIt should be noted that the Supreme Court of Justice of Peru has already issued a final ruling on the Carpio Lazo case challenging the approval of the Environmental Impact Assessment (EIA) of the Tía Maria project (notified on February 22, 2022), which ratified the legality of said Environmental Impact Assessment. The Judiciary recognized SPCC's strict compliance with all applicable environmental regulations during the approval stages of the Tía María EIA. This decision should have a favorable impact on the cases described below:\n\n​\n\nThe Mendoza Padilla case was initially rejected by the lower court on July 8, 2015. This ruling was confirmed by the Superior Court on June 14, 2016. On July 12, 2016, the case was appealed before the Constitutional Court. On November 20, 2018, the Constitutional Court reversed the previous decisions and remanded the case to the lower court for further action. In the third quarter of 2020, the Company was notified that the complaint had been reinstated. The Company answered the complaint on September 15, 2020. On December 2, 2020, the lower court issued a resolution, considering the complaint answered. On September 27, 2021, the Court ordered to temporarily archive the case. As of December 31, 2025, the case remains pending resolution.\n\n​\n\nThe Guillen Lopez case is currently before the lower court. Oral arguments took place on July 19, 2019. On January 7, 2020, the Judge decided to suspend the proceedings until the del Carpio Lazo case is concluded. On March 8, 2022, the Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On September 7, 2023, the Judge cancelled the suspension and declared the case ready for a resolution. On May 18, 2024, the Judge declared, once again, that the case was ready for resolution. As of December 31, 2025, the case remains pending resolution.\n\n​\n\n163\n\n[Table of Contents](#TOC)\n\nThe Junta de Usuarios del Valle del Tambo case is currently before the lower court. In May 2016, the Company was included in the process after the Ministry of Energy and Mines filed a civil complaint. On March 6, 2019, the Company was formally notified of the lawsuit and answered the complaint on March 20, 2019. On July 8, 2019, the Company requested the suspension of the proceeding until the del Carpio Lazo case is concluded. On March 11, 2022, the Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On January 5, 2024, the Peruvian Branch reiterated its petition to continue the process given that a final decision has already been handed down in Carpio Lazo case. As of December 31, 2025, the case remains pending resolution.\n\n​\n\nThe Gobierno Regional de Arequipa case is currently before the Superior court. The Company answered the complaint on September 15, 2020. On February 8, 2021, the Judge decided to suspend the proceeding until the del Carpio Lazo case was concluded. On March 24, 2022, SCC’s Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On March 28, 2022, the Judge cancelled the suspension. On May 24, 2022, the parties presented their closing arguments. On March 15, 2023, the Judge dismissed the lawsuit. The plaintiff missed the chance to appeal the ruling, therefore, the Judge declared the case had concluded in favor of the Peruvian Branch. On April 20, 2023 the plaintiff appealed this ruling. On October 20, 2023, the Superior Court declared that the plaintiff had not been properly informed of the ruling and ordered issuance of a new notification of the First Instance ruling. The Superior Court instructed the First Instance Court to inform the *Gobierno Regional de Arequipa* that it must establish a new address to ensure proper notification. On April 16, 2024, the *Gobierno Regional de Arequipa* filed an appeal against the first instance decision. The Superior Court notified the Company of the appeal, and the Peruvian Branch responded on June 10, 2024. On August 7, 2024, an oral hearing took place. On May 30, 2025, the Superior court vacated the ruling that dismissed the lawsuit and remanded for a new judgment. On January 23, 2026, the lower court ruled in favor of SPCC. The Company expects the other party to file an appeal. As of January 29, 2026, the case was pending resolution.\n\n​\n\nThe Municipalidad Distrital de Dean Valdivia case is currently before the lower court. On August 17, 2022, the Company was formally notified of the lawsuit and answered the complaint on September 2, 2022. The Peruvian Branch informed the Court the result of the del Carpio Lazo case. As of December 31, 2025, the case is pending resolution.\n\n​\n\nThe Torres Quispe case is currently before the lower court. On May 20, 2025, the Company was formally served with the lawsuit and filed and answered the complaint on June 2, 2025. On July 11, 2025, the Court ruled in favor of SPCC. The plaintiff filed an appeal. As of December 31, 2025, the case was pending resolution.\n\n​\n\nThe Juan Miguel Meza Igme case is currently before the lower court. On August 28, 2025, SPCC was formally served with the lawsuit. On September 10, 2025, the Company answered the complaint. As of December 31, 2025, the case was pending resolution.\n\n​\n\nThe Company asserts that these lawsuits are without merit and is vigorously defending against them. The potential contingency amount for these cases cannot be reasonably estimated by management at this time.\n\n​\n\n*Special Regional Pasto Grande Project (“Pasto Grande Project”)*\n\n​\n\nIn 2012, the Pasto Grande Project, an entity of the Regional Government of Moquegua, filed a lawsuit against SCC’s Peruvian Branch alleging property rights over a certain area used by the Peruvian Branch and seeking the demolition of the tailings dam where SCC’s Peruvian Branch has deposited its tailings from the Toquepala and Cuajone operations since 1995. The Peruvian Branch has had title to use the area in question since 1960 and has constructed and operated the tailings dams with proper governmental authorization since 1995. Following a motion filed by the Peruvian Branch, the lower court included MINEM as a defendant in this lawsuit. MINEM has answered the complaint and denied the validity of the claim. On July 2, 2022, the case was temporarily archived. On May 26, 2023, the Judge ordered termination of the proceeding due to the lack of interest of the plaintiff. On June 2, 2023, the plaintiff appealed the termination of the proceeding. On September 18, 2023, the Superior Court reversed the termination and ordered the Judge to continue the proceeding. As of December 31, 2025, the case was pending resolution.\n\n​\n\nThe Peruvian Branch asserts that the lawsuit is without merit and is vigorously defending against it. The amount of this contingency cannot be reasonably estimated by management at this time.\n\n​\n\n164\n\n[Table of Contents](#TOC)\n\nMexican operations\n\n​\n\n*The Accidental Spill at Buenavista Mine of 2014*\n\n​\n\nRegarding the 2014 accidental spill of copper sulfate solution at a leaching pond in the Buenavista mine, the following legal procedures are pending against the Company:\n\n​\n\nOn August 19, 2014, PROFEPA, as part of the administrative proceeding initiated after the spill, announced the filing of a criminal complaint against Buenavista del Cobre S.A. de C.V. (“BVC”), a subsidiary of the Company to determine those responsible for environmental damages. During the second quarter of 2018, the criminal complaint was dismissed. This decision was appealed and was pending resolution as of December 31, 2025.\n\n​\n\nOn October 12, 2023, SEMARNAT publicly announced the filing of another criminal complaint regarding the Sonora River spill, arguing that remediation of damages to the river was incomplete and compensation for said damages was insufficient. The Company has been directed to provide information regarding remediation activities and compensation for damages. The Company strongly believes that it has duly completed all remediation and compensation-related activities as required by the competent Mexican authorities and as such, this new complaint lacks merit.\n\n​\n\nThrough the first half of 2015, six collective action lawsuits were filed in federal courts in Mexico City and Sonora against two subsidiaries of the Company seeking economic compensation, clean up and remedial activities in order to restore the environment to its pre-existing conditions. Three of the collective action lawsuits have been dismissed by the court. The remaining three lawsuits are still pending: two were filed by Acciones Colectivas de Sinaloa, A.C. and one, by Defensa Colectiva, A.C.; requesting precautionary measures about construction of facilities for monitoring public health services and prohibiting the closure of the Rio Sonora Trust. As of December 31, 2025, these cases remain in the same stage.\n\n​\n\nSimilarly, during 2015, eight civil action lawsuits were filed against BVC in the state courts of Sonora seeking damages for alleged injuries and for moral damages as a consequence of the spill. The plaintiffs in the state court lawsuits are: Jose Vicente Arriola Nunez et al; Santana Ruiz Molina et al; Andres Nogales Romero et al; Teodoro Javier Robles et al; Gildardo Vasquez Carvajal et al; Rafael Noriega Souffle et al; Grupo Banamichi Unido de Sonora El Dorado, S.C. de R.L. de C.V; and Marcelino Mercado Cruz. In 2016, three additional civil action lawsuits, claiming similar damages, were filed by Juan Melquicedec Lebaron; Blanca Lidia Valenzuela Rivera et al and Ramona Franco Quijada et al. In 2017, BVC was served with thirty-three additional civil action lawsuits, claiming similar damages. The lawsuits were filed by Francisco Javier Molina Peralta et al; Anacleto Cohen Machini et al; Francisco Rafael Alvarez Ruiz et al; Jose Alberto Martinez Bracamonte et al; Gloria del Carmen Ramirez Duarte et al; Flor Margarita Sabori et al; Blanca Esthela Ruiz Toledo et al; Julio Alfonso Corral Dominguez et al; Maria Eduwiges Bracamonte Villa et al; Francisca Marquez Dominguez et al; Jose Juan Romo Bravo et al; Jose Alfredo Garcia Leyva et al; Gloria Irma Dominguez Perez et al; Maria del Refugio Romero et al; Miguel Rivas Medina et al; Yolanda Valenzuela Garrobo et al; Maria Elena Garcia Leyva et al; Manuel Alfonso Ortiz Valenzuela et al; Francisco Alberto Arvayo Romero et al; Maria del Carmen Villanueva Lopez et al; Manuel Martin Garcia Salazar; Miguel Garcia Arguelles et al; Dora Elena Rodriguez Ochoa et al; Honora Eduwiges Ortiz Rodriguez et al; Francisco Jose Martinez Lopez et al; Maria Eduwiges Lopez Bustamante; Rodolfo Barron Villa et al, Jose Carlos Martinez Fernandez et al, Maria de los Angeles Fabela et al; Rafaela Edith Haro et al; Luz Mercedes Cruz et al; Juan Pedro Montaño et al; and Juana Irma Alday Villa. In the first quarter of 2018, BVC was served with another civil action lawsuit, claiming similar damages. The lawsuit was filed by Alma Angelina Del Cid Rivera et al. On October 3, 2024, BVC was served with another civil action lawsuit, claiming similar damages. The lawsuit was filed by María Lourdes Martínez Navarro et al. As of December 31, 2025, all these cases were pending resolution.\n\n​\n\nIn 2015, four constitutional lawsuits (juicios de amparo) were filed before Federal Courts against various authorities and against a subsidiary of the Company, arguing; (i) the alleged lack of a waste management program approved by SEMARNAT; (ii) the alleged lack of a remediation plan approved by SEMARNAT with regard to the August 2014 spill; (iii) the alleged lack of community approval regarding the environmental impact authorizations granted by SEMARNAT to one subsidiary of the Company; and (iv) the alleged inactivity of the authorities with regard of the spill in August 2014. The plaintiffs of these lawsuits are: Francisca Garcia Enriquez, et al filed two lawsuits, Francisco Ramon Miranda,\n\n165\n\n[Table of Contents](#TOC)\n\net al and Jesus David Lopez Peralta et al. In the third quarter of 2016, four additional constitutional lawsuits, claiming similar damages were filed by Mario Alberto Salcido et al; Maria Elena Heredia Bustamante et al; Martin Eligio Ortiz Gamez et al; and Maria de los Angeles Enriquez Bacame et al. In the third quarter of 2017, BVC was served with another constitutional lawsuit filed by Francisca García Enriquez et al. In 2018, BVC was served with two additional constitutional lawsuits that were filed against SEMARNAT by Norberto Bustamante et al. With regard to the constitutional lawsuit filed by Maria Elena Heredia Bustamante et al; in which it was claimed the lack of community approval regarding the authorization granted by SEMARNAT to build the new BVC tailings dam, on September 5, 2018, the Supreme Court of Justice issued a resolution establishing that such authorization was granted to BVC in compliance with the applicable legislation. However, SEMARNAT must carry out a public meeting to inform the community of the technical aspects required to build the dam, potential impacts and prevention measures. This public meeting will have no material effects to BVC’s operations. SEMARNAT has carried out the consultation ordered by the Supreme Court. As a result, it has informed the corresponding Judge about its compliance with the resolution, in which BVC was required to implement additional measures of environmental impact prevention, such as: (i) the building of at least three monitoring wells downstream from the curtain of the contingency dam in a period of six months; (ii) monitoring of the groundwater level and water quality every six months; (iii) carrying out rain collection work in order to restore water to the Sonora River basin, with six months granted to present the execution program; (iv) determine the location of wildlife conservation and protection areas and define the need to establish biological corridors; (v) obtain photographic or videographic evidence every six months; (vi) submitting to SEMARNAT two years before the closure and abandonment of the site, or earlier if necessary, the closure program that includes the cleaning and restoration of the soil including Mexican regulation NOM-141; (vii) include the measures in the Environmental Monitoring Program according to the environmental components impacted; and (viii) hiring an external environmental consultant to validate compliance with the current and new conditions imposed. The foregoing does not impact BVC’s operations. Additionally, the lawsuits filed by Maria de los Angeles Enriquez Bacame and Norberto Bustamante have been dismissed and closed without prejudice to the Company. As of December 31, 2025, the remaining cases were pending resolution.\n\n​\n\nIt is currently not possible to determine the extent of the damages sought in these state and federal lawsuits but the Company believes that these lawsuits are without merit. Accordingly, the Company is vigorously defending against them. Nevertheless, the Company believes that none of the legal proceedings resulting from the spill, individually or in the aggregate, would have a material effect on its financial position or results of operations.\n\n​\n\n**Labor matters**:\n\n​\n\nPeruvian operations: 50.8% of the Company's 5,432 Peruvian employees were unionized as of December 31, 2025. Currently, there are six separate unions, none of which represents the majority of workers, as defined by current Peruvian labor legislation.\n\n​\n\nIn the fourth quarter of 2024, the Company signed long-term extensions of the collective bargaining agreements with five of its six unions, each lasting six years and commencing on the day after the expiration of the prior agreements, in accordance with the law. As a result of these agreements, the Company made a signing payment to each worker, totaling $62 million approximately.\n\n​\n\nIn February 2025, the Company signed a three-year extension of the collective bargaining agreement with the remaining union. The Company made a signing payment to each worker of the union, totaling approximately $6.3 million. This allows the Company to ensure that economic benefits and working conditions are consistently applied to all unionized workers. Additionally, the Company reached agreements with the six unions to ensure uninterrupted operation of its facilities, preventing stoppages by the unions and workers during extension periods for collective bargaining.\n\n​\n\nIn the second quarter of 2025, the Company began implementing the collective bargaining agreements with the six unions. Meetings have been held with the unions to coordinate the execution of the agreed provisions as well as additional agreements, ensuring that operations can develop normally until at least 2027.\n\n​\n\nThe Company maintains regular dialogue with union representatives to ensure labor harmony and proper management of labor relations. SPCC Peru Branch has collective bargaining agreements with each of the six unions, the earliest of\n\n166\n\n[Table of Contents](#TOC)\n\nwhich expires in 2027 and the latest, in 2033. These agreements regulate benefits related to compensation and working conditions.\n\n​\n\nMexican operations: In recent years, the Mexican operations have experienced a positive improvement in their labor environment, as workers opted to change their affiliation from the Sindicato Nacional de Trabajadores Mineros, Metalurgicos y Similares de la Republica Mexicana (the “National Mining Union”) to other less politicized unions.\n\n​\n\nThe workers of the San Martin mine were on strike since July 2007. On February 28, 2018, the striking workers of the San Martín mine of IMMSA held an election to vote on the union that would hold the collective bargaining agreement at the San Martin mine. The Federacion Nacional de Sindicatos Independientes (the National Federation of Independent Unions) won the vote by a majority. Nevertheless, the vote was challenged by the National Mining Union. On June 26, 2018, the Federal Mediation and Arbitration Board issued a ruling recognizing the election results. Due to the agreement between workers and the Company to end the protracted strike, on August 22, 2018, the Federal Mediation and Arbitration Board authorized the restart of operations of the San Martin mine. Such authorization was challenged by the National Mining Union. On April 4, 2019, the Federal Mediation and Arbitration Board recognized, once again, the election results from February 28, 2018, by which the National Federation of Independent Unions won by a majority. In the last quarter of 2019, a Federal Court issued a resolution that established that the Labor Court should analyze the list of workers with the right to vote in the union election. The Company and the National Federation of Independent Unions challenged such determination before the Supreme Court of Justice. Such challenges were dismissed by the Supreme Court. Consequently, on September 6, 2021, the Federal Mediation and Arbitration Board issued a new resolution determining that, based on the documents submitted by the National Federation of Independent Unions and given the status of the strike until 2018, it was not possible to create a registry of workers holding a right to vote. Therefore, in case of a strike, any collective bargaining proceedings shall remain suspended. On June 9, 2023, the Federal Mediation and Arbitration Board, in a ruling that veered from its previous stance, did not recognize the common representatives of the coalition workers and consequently ruled that the agreement which such representatives had made with the Company to lift the strike in 2018 lacked validity. Notwithstanding, on June 14, 2023, in an arbitration proceeding initiated at IMMSA's request, the Federal Mediation and Arbitration Board handed down a ruling that terminated the strike and ordered workers to resume activities within 15 days. The Mining Union filed a protective action (Amparo) against this resolution, which was pending resolution as of December 31, 2025.\n\n​\n\nAdditionally, the Mining Union has filed a complaint before the Government of the United States of America under the rules of the Rapid Response Mechanism contained in the Mexico-United States-Canada Treaty (“T-MEC”), alleging denial of free association rights. On April 26, 2024, the arbitration panel of the Labor Rapid Response Mechanism ruled in favor of the Government of Mexico, determining that they did not have jurisdiction to rule on the denial of union rights at the mine. The Company collaborated by providing background information on the case and followed up every stage of the arbitration.\n\n​\n\nThe Company´s operations at the San Martin unit continue to evolve normally and the conflict is expected to be resolved in accordance with the legal framework set by labor authorities; any actions taken will respect the will of the workers.\n\nIn the case of the Taxco mine, its workers have been on strike since July 2007. After several legal procedures, in August 2015, the Supreme Court decided to assert jurisdiction over the case and to rule on it directly. As of December 31, 2025, the case was pending resolution without further developments.\n\n​\n\nIt is expected that operations at the Taxco mine will remain suspended until the labor issues are resolved. In view of the lengthy strike, the Company has reviewed the carrying value of the Taxco mine to ascertain whether impairment exists. The Company concluded that there is a non-material impairment of the assets located at this mine.\n\n​\n\n**Other legal matters**:\n\n​\n\nThe Company is involved in various other legal proceedings incidental to its operations, but the Company does not believe that decisions adverse to it in any such proceedings, individually or in the aggregate, would have a material effect on its financial position or results of operations.\n\n​\n\n167\n\n[Table of Contents](#TOC)\n\n**Other commitments:**\n\n​\n\nPeruvian Operations:\n\n​\n\n*Michiquillay:*\n\n​\n\nIn June 2018, the Company signed a contract for the acquisition of the Michiquillay copper project in Cajamarca, Peru, at a purchase price of $400 million. Michiquillay is a world-class mining project with estimated inferred mineral resources of 2,288 million tonnes with an estimated copper grade of 0.43%. It is expected to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years.\n\n​\n\nIn 2021, the Company signed social agreements with the Michiquillay and La Encañada communities. In addition, in October 2021, the Peruvian Ministry of Energy and Mines approved the semi-detailed environmental impact study for the project. In the last quarter of 2022, the Company informed MINEM that exploration activities had begun and that it initiated an in-depth assessment of existing mineral resources. In 2023, in accordance with the social agreements with the Michiquillay and La Encañada communities, the Company has hired unskilled labor and is paying for the use of surface land. The Company is supporting social programs in both communities. Additionally, the Company will use the geological information employed to estimate of the project’s mineral resources to estimate mineral reserves and develop the corresponding mine plan. Hydrological, hydrogeological, and geotechnical studies, which will provide data for feasibility studies, are ongoing.\n\n​\n\nSocial agreements with the Michiquillay and La Encañada communities represent an opportunity to improve quality of life for their residents through the Company´s strong social programs, backed by a solid framework for technical work at the project level. The main commitments signed by the Company regarding the social agreements are related to providing support for agricultural and livestock activities, financial support for local initiatives, and social programs in favor of education, water management, waste disposal, and healthcare for vulnerable groups.\n\n​\n\nAs per the purchase agreement, the Company paid $12.5 million at the signing of the contract and $12.5 million in June 2021. The remaining balance of $375.0 million will be paid if the Company decides to develop the project. Therefore, it is not a present obligation. In June 2022, the Company notified the Peruvian authorities of the end of the suspension period and the start of the preoperational period that lasts 12 years, but can be automatically extended for three more years, provided that the Feasibility Study of the project has been approved. The start of the preoperational period does not imply a payment obligation, but the Company must support an investment of $20 million during the first five years of this period, which includes exploration activities as well as the development of social programs.\n\n​\n\nIn April 2025, considering the challenges of the development of the Michiquillay Project, the Company entered into an agreement with the Peruvian authorities to extend the preoperational period by three additional years, without prejudice of the Company’s right to extend it for three more years, as initially established in the Contract. This extension also deferred by three years the payment term to pay the $375.0 million outstanding balance of the purchase price. The Company was required to pay $21.0 million cash consideration for this extension and commit an additional $15 million in social investments between the fourth and sixth years of the preoperational period.\n\n​\n\n*Corporate Social Responsibility:*\n\n​\n\nThe Company has a corporate social responsibility policy to maintain and promote the continuity of its mining operations while obtaining the best results. The main objective of this policy is to integrate the Company´s operations with local communities in the areas of influence of its operations by creating permanent positive relationships to develop optimum social conditions and promote sustainable development in the area. Accordingly, the Company has made the following commitments:\n\n​\n\nTacna Region: In connection with the Toquepala concentrator expansion, the Company has committed to fund various social and infrastructure improvement projects in Toquepala’s neighboring communities. The total amount committed for these purposes is S/445.0 million (approximately $132.1 million as of December 31, 2025). In relation to this commitment, the Company has completed the construction of a school with an investment of S/18.8 million\n\n168\n\n[Table of Contents](#TOC)\n\n(approximately $5.6 million as of December 31, 2025) and agricultural infrastructure projects and studies with an investment of S/112.4 million (approximately $33.4 million as of December 31, 2025). Among the most important projects are the construction of the Cularjahuira dam for S/15.6 million (approximately $4.6 million as of December 31, 2025) and the engineering study for the Callazas dam for S/2.6 million (approximately $0.8 million as of December 31, 2025). Aditionally, the Company has committed S/60.4 million ($17.9 million as of December 31, 2025) to basic infrastructure projects, including a drinking water project for S/9.6 million (approximately $2.9 million as of December 31, 2024).\n\n​\n\nAs the Toquepala expansion project was completed, the Company considers that these commitments constitute present obligations of the Company and consequently has recorded a liability of $30.3 million in its consolidated financial statements as of December 31, 2025.\n\n​\n\nIn addition, the Company has allocated S/102.1 million (approximately $30.3 million as of December 31, 2025) for the construction of a high-achievement school, and has allocated S/ 81.9 million (approximately $24.3 million as of December 31, 2025) for four infrastructure projects in the Tacna region under the “Works for Taxes” (*obras por impuestos*) program, which allows the Company to use these amounts as an advance payment of taxes.\n\n​\n\nMoquegua Region: In the Moquegua region, the Company participates in a “development roundtable” with local municipal authorities and community representatives to discuss social needs to determine how the Company can contribute to sustainable development in the region. Although the development roundtable is not currently meeting, during previous sessions it discussed the possibility of creating a Moquegua Region Development Fund, for which the Company has offered a contribution of S/1,000 million (approximately $296.9 million as of December 31, 2025). While the final funding agreement has yet to be signed, the Company has already committed to contributing S/256.9 million (approximately $76.3 million as of December 31, 2025) to different projects, including S/108.8 million (approximately $32.3 million as of December 31, 2025) to fund an educational project for which S/108.4 million (approximately $32.2 million as of December 31, 2025) has already been invested; this project already has approved resolutions from the provinces of Ilo and Sánchez Cerro. Additionally, construction of the water treatment plant in Ilo continues, which entails a total investment of S/105.5 million (approximately $31.3 million as of December 31, 2025). As of December 31, 2025, the project had advanced 64%. On the education front, S/18.2 million (approximately $5.4 million as of December 31, 2025) has been executed to build three schools in Moquegua, all of which have been completed, and S/3.4 million (approximately $1.0 million as of December 31, 2025) has been committed for two additional schools. On the agricultural front, S/6.9 million (approximately $2.0 million as of December 31, 2025) has been invested to develop two infrastructure projects.\n\n​\n\nIn addition, the Company has allocated S/229 million (approximately $68.0 million as of December 31, 2025) to build four educational infrastructure projects and one basic sanitation project, and has allocated S/3.9 million (approximately $1.2 million as of December 31, 2025) to conduct pre-investment studies in the Moquegua region, all of that under the “Works for Taxes” (*obras por impuestos*) program, which allows the Company to use these amounts as an advance payment of taxes.\n\n​\n\nApurimac Region: The Company has allocated S/84.7 million (approximately $25.1 million as of December 31, 2025) to build two educational infrastructure projects and S/38.0 million (approximately $11.3 million as of December 31, 2025) to build one health infrastructure project, all of that under the “Works for Taxes” (*obras por impuestos*) program, which allows the Company to use these amounts as an advance payment of taxes.\n\n​\n\nArequipa Region: The Company has allocated S/168.2 million (approximately $49.9 million as of December 31, 2025) to build three educational infrastructure projects and S/6.3 million (approximately $1.9 million as of December 31, 2025) to finance previous studies for infrastructure projects, under the “Works for Taxes” (*obras por impuestos*) program, which allows the Company to use these amounts as an advance payment of taxes.\n\n​\n\nCajamarca Region: The Company has allocated S/0.7 million (approximately $0.2 million as of December 31, 2025) to finance the pre-investment studies of a health project under the “Works for Taxes” (*obras por impuestos*) program, which allows the Company to use these amounts as an advance payment of taxes.\n\n​\n\n169\n\n[Table of Contents](#TOC)\n\n*Power purchase agreements:*\n\n​\n\n●*Electroperu S.A.:* In June 2014, the Company entered into a power purchase agreement for 120 megawatt (“MW”) with the state power company Electroperu S.A., under which Electroperu S.A. began supplying energy for the Peruvian operations for twenty years starting on April 17, 2017.\n\n​\n\n●*Kallpa Generacion S.A. (“Kallpa”):* In July 2014, the Company entered into a power purchase agreement for 120MW with Kallpa, an independent Israeli owned power company, under which Kallpa will supply energy for the Peruvian operations for ten years starting on April 17, 2017 and ending on April 30, 2027. In May 2016, the Company signed an additional power purchase agreement for a maximum of 80MW with Kallpa, under which Kallpa began supplying energy for the Peruvian operations related to the Toquepala Expansion and other minor projects starting on May 1, 2017 and ending on April 30, 2029.\n\n​\n\nMexican operations\n\n​\n\n*Solidarity contribution for social and development programs in Sonora, Mexico:*\n\n​\n\nIn January 2026, the Board of Directors of SCC approved a voluntary and solidarity contribution of up to 1.5 billion Mexican pesos (approximately $87 million) with the aim of strengthening and supporting government plans and programs for the economic progress and wellbeing of the population of the state of Sonora, Mexico, to be made through Minera Mexico and its subsidiaries. In accordance with this, on February 9, 2026, the Company contributed 500 million Mexican pesos (approximately $29 million) to the Mexican Institute of Social Security in Sonora, Mexico.\n\n​\n\n*Power purchase agreements:*\n\n​\n\n●MGE: In 2012, the Company signed a power purchase agreement with MGE, an indirect subsidiary of Grupo Mexico, to supply power to some of the Company’s Mexican operations through 2032. For further information, please see Note 17 “Related party transactions”.\n\n​\n\n●Eolica el Retiro, S.A.P.I. de C.V.: In 2013, the Company signed a power purchase agreement with Eolica el Retiro, S.A.P.I de C.V. a windfarm energy producer that is an indirect subsidiary of Grupo Mexico, to supply power to some of the Company’s Mexican operations. For further information, please see Note 17 “Related party transactions”.\n\n​\n\n●*Parque Eolico de Fenicias, S. de R.L. de C.V.:* On February 20, 2020, the Company signed a power purchase agreement with Parque Eolico de Fenicias, S. de R.L. de C.V., an 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. In the third quarter of 2024, Parque Eolico de Fenicias began supplying energy to the IMMSA unit. For further information, please see Note 17 “Related party transactions”.\n\n​\n\nCorporate operations\n\n​\n\n*Commitment for Capital projects:*\n\n​\n\nAs of December 31, 2025, the Company has committed approximately $1,310.5 million for the development of its capital investment projects.\n\n​\n\n**Tax contingency matters:**\n\n​\n\nTax contingencies are provided for under ASC 740-10-50-15 Uncertain tax position (see Note 7 “Income taxes”).\n\n​\n\n​\n\n170\n\n[Table of Contents](#TOC)\n\n**NOTE 14—STOCKHOLDERS’ EQUITY**\n\n​\n\n*Treasury Stock:*\n\n​\n\nActivity in treasury stock in the years 2025 and 2024 was as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nSouthern Copper common shares\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of January 1,\n\n​\n\n$\n\n2,337.3\n\n​\n\n$\n\n2,766.6\n\nDividends paid in common stock\n\n​\n\n \n\n(711.6)\n\n​\n\n \n\n(428.9)\n\nUsed for corporate purposes\n\n​\n\n \n\n(0.3)\n\n​\n\n \n\n(0.4)\n\nBalance as of December 31, \n\n​\n\n \n\n1,625.4\n\n​\n\n \n\n2,337.3\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nParent Company (Grupo Mexico) common shares\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of January 1,\n\n​\n\n \n\n363.4\n\n​\n\n \n\n382.4\n\nOther activity, including dividend, interest and foreign currency transaction effect\n\n​\n\n \n\n45.4\n\n​\n\n \n\n(19.0)\n\nBalance as of December 31, \n\n​\n\n \n\n408.8\n\n​\n\n \n\n363.4\n\nTreasury stock balance as of December 31, \n\n​\n\n$\n\n2,034.2\n\n​\n\n$\n\n2,700.7\n\n​\n\n*Common Stock:*\n\n​\n\n*Dividends paid in common stock:*\n\n​\n\nStock dividend activity in 2025 was as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Total**\n\n​\n\n**Effect in**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Common stock**\n\n​\n\n**Average**\n\n​\n\n**Number of**\n\n​\n\n**Additional**\n\n​\n\n**Effect in**\n\n​\n\n​\n\n**dividend**\n\n​\n\n**Market price**\n\n​\n\n**Shares Paid**\n\n​\n\n**Paid-in capital**\n\n​\n\n**Treasury Stock**\n\n**Date of payment**\n\n​\n\n**per share**\n\n​\n\n**per share**\n\n​\n\n**as Dividends**\n\n​\n\n**($ in millions)**\n\n​\n\n**($ in millions)**\n\nFebruary 27, 2025\n\n** **\n\n0.0073\n\n​\n\n$\n\n95.86\n\n \n\n5,769,600\n\n \n\n$\n\n409.9\n\n \n\n$\n\n143.2\n\nMay 19, 2025\n\n \n\n0.0099\n\n​\n\n$\n\n81.13\n\n \n\n7,881,820\n\n \n\n​\n\n443.9\n\n \n\n​\n\n195.6\n\nSeptember 4, 2025\n\n​\n\n0.0101\n\n​\n\n$\n\n99.47\n\n​\n\n8,120,705\n\n​\n\n​\n\n606.2\n\n​\n\n​\n\n201.5\n\nNovember 28, 2025\n\n \n\n0.0085\n\n​\n\n$\n\n129.74\n\n \n\n6,903,252\n\n \n\n​\n\n724.3\n\n \n\n​\n\n171.3\n\nTotal\n\n \n\n0.0358\n\n​\n\n​\n\n​\n\n \n\n28,675,377\n\n \n\n$\n\n2,184.3\n\n​\n\n$\n\n711.6\n\n​\n\nOn December 31, 2025, and on December 31, 2024, 65,497,804 shares and 94,185,981 shares of SCC’s common stock were in Treasury, respectively. These shares are used for the Director’s stock award plans and are available for general corporate purposes.\n\n​\n\n*SCC share repurchase program:*\n\n​\n\nIn 2008, the Board of Directors authorized a $500 million share repurchase program that has since been increased by the Board of Directors and is currently authorized to $3 billion. Pursuant to this program, the Company has purchased 119.5 million shares of common stock at a cost of $2.9 billion. These shares are available for general corporate purposes. The Company may purchase additional shares of its common stock from time to time, based on market conditions and other factors. This repurchase program has no expiration date and may be modified or discontinued at any time.\n\n​\n\nThere has been no activity in the SCC share repurchase program since the third quarter of 2016. The NYSE closing price for SCC common shares as of December 31, 2025 was $143.47 and the maximum number of shares that the Company could purchase at that price was 0.6 million.\n\n​\n\nGrupo Mexico’s direct and indirect ownership remains at 88.9% as of December 31, 2025.\n\n171\n\n[Table of Contents](#TOC)\n\n​\n\n*Directors’ Stock Award Plan:*\n\n​\n\nThe Company established a Director´s Stock Award Plan for certain non-employee directors. Southern Copper has reserved 600,000 shares of common stock for the plan. Under this plan, participants are entitled to an award of 1,600 shares of common stock upon election to the Board of Directors and are eligible to receive 1,600 additional shares of common stock per year thereafter. Commencing with the second quarter of 2021, Directors receive quarterly awards of 400 shares, contingent upon attendance of each quarterly Board meeting. The fair value of the award is measured each year at the date of the grant. On May 27, 2022, the Company’s stockholders approved a five-year extension of the Plan until January 27, 2028. On May 23, 2025, the Company’s stockholders approved an extension of the Plan for three years until January 27, 2031, and an amendment to the Plan to provide an annual grant of 200 additional shares to each eligible Director, contingent upon their attendance of all meetings of the Board of Directors scheduled for the year. The award is not subject to vesting requirements.\n\n​\n\nFor 2025 and 2024, the stock-based compensation expense associated with this plan totaled $1.7 million and $0.4 million, respectively.\n\n​\n\nThe activity of this plan for the years ended December 31, 2025 and 2024 was as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nTotal SCC shares reserved for the plan\n\n \n\n600,000\n\n \n\n600,000\n\nTotal shares granted at January 1,\n\n \n\n(444,400)\n\n \n\n(428,800)\n\nGranted in the period\n\n \n\n(12,800)\n\n \n\n(15,600)\n\nTotal shares granted at December 31, \n\n \n\n(457,200)\n\n \n\n(444,400)\n\nRemaining shares reserved\n\n \n\n142,800\n\n \n\n155,600\n\n​\n\n*Parent Company common shares:*\n\n​\n\nAs of December 31, 2025, and 2024, there were in treasury 52,355,259 and 61,972,864 of Grupo Mexico’s common shares, respectively.\n\n​\n\n*Employee Stock Purchase Plan:*\n\n​\n\n2018 Plan: In November 2018, the Company offered to eligible employees a new stock purchase plan (the \"New Employee Stock Purchase Plan\") through a trust that acquires series B shares of Grupo Mexico stock for sale to its employees, and employees of subsidiaries, and certain affiliated companies. The purchase price was established at 37.89 Mexican pesos (approximately $1.86) for the initial subscription, which expires in October 2026. Every two years employees will be able to acquire title to 50% of the shares paid in the previous two years. The employees will pay for shares purchased through monthly payroll deductions over the eight-year period of the plan. At the end of the eight-year period, the Company will grant the participant a bonus of 1 share for every 10 shares purchased by the employee. Any future subscription will be at the average market price at the date of acquisition or the grant date.\n\n​\n\nIf Grupo Mexico pays dividends on shares during the eight-year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares.\n\n​\n\nIn the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price at the date of resignation of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan.\n\n​\n\nIn case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes.\n\n​\n\n172\n\n[Table of Contents](#TOC)\n\nThe stock-based compensation expense for the years ended December 31, 2025, 2024 and 2023 and the unrecognized compensation expense under this plan were as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n**2024**\n\n​\n\n**2023**\n\nStock based compensation expense\n\n​\n\n$\n\n0.7\n\n \n\n$\n\n0.7\n\n \n\n$\n\n0.7\n\nUnrecognized compensation expense\n\n​\n\n$\n\n0.3\n\n \n\n$\n\n1.0\n\n \n\n$\n\n1.7\n\n​\n\nThe following table presents the stock award activity of this plan for the years ended December 31, 2025 and December 31, 2024:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Unit Weighted Average**\n\n​\n\n**  ​ ​ ​**\n\n**Shares**\n\n​\n\n**  ​ ​ ​Grant Date Fair Value**\n\nOutstanding shares at January 1, 2025\n\n \n\n1,901,089\n\n​\n\n$\n\n1.86\n\nGranted\n\n \n\n—\n\n​\n\n​\n\n—\n\nExercised\n\n \n\n(698,146)\n\n​\n\n$\n\n1.86\n\nForfeited\n\n \n\n—\n\n​\n\n \n\n—\n\nOutstanding shares at December 31, 2025\n\n \n\n1,202,943\n\n​\n\n$\n\n1.86\n\nOutstanding shares at January 1, 2024\n\n​\n\n1,962,936\n\n​\n\n$\n\n1.86\n\nGranted\n\n​\n\n—\n\n​\n\n​\n\n—\n\nExercised\n\n​\n\n(61,847)\n\n​\n\n$\n\n1.86\n\nForfeited\n\n​\n\n—\n\n​\n\n \n\n—\n\nOutstanding shares at December 31, 2024\n\n \n\n1,901,089\n\n​\n\n$\n\n1.86\n\n​\n\n2025 Plan: In April 2025, the Company offered a new stock purchase plan (the “New Employee Stock Purchase Plan”) to eligible employees through a trust that acquires series B shares of Grupo Mexico stock for sale to its employees, and employees of subsidiaries, and certain affiliated companies. The purchase price was established at 92.52 Mexican pesos (approximately $4.51) for the initial subscription, which expires in April 2033. Every two years employees will be able to acquire title to 50% of the shares paid in the previous two years. The employees will pay for shares purchased through monthly payroll deductions over the eight-year period of the plan. At the end of the eight-year period, the Company will grant the participant a bonus of 1 share for every 10 shares purchased by the employee. Any future subscription will be at the average market price at the date of acquisition or the grant date.\n\n​\n\nIf Grupo Mexico pays dividends on shares during the eight-year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares.\n\n​\n\nIn the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price on the date of resignation of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan.\n\n​\n\nIn case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes.\n\n​\n\nThe stock-based compensation expense for the year ended December 31, 2025 and the unrecognized compensation expense under this plan was as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\nStock based compensation expense\n\n​\n\n$\n\n0.4\n\n​\n\nUnrecognized compensation expense\n\n​\n\n$\n\n4.1\n\n​\n\n173\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\nThe following table presents the stock award activity of this plan for the year ended December 31, 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Unit Weighted Average**\n\n​\n\n​\n\n**Shares**\n\n​\n\n**Grant Date Fair Value**\n\nOutstanding shares at January 1, 2025\n\n \n\n—\n\n​\n\n$\n\n—\n\nGranted\n\n \n\n2,514,986\n\n​\n\n$\n\n4.51\n\nExercised\n\n \n\n—\n\n​\n\n​\n\n—\n\nForfeited\n\n \n\n(18,328)\n\n​\n\n$\n\n4.51\n\nOutstanding shares at December 31, 2025\n\n \n\n2,496,658\n\n​\n\n$\n\n4.51\n\n​\n\n*Executive Stock Purchase Plan:*\n\n​\n\nGrupo Mexico also offers a stock purchase plan for certain members of its executive management and the executive management of its subsidiaries and certain affiliated companies. Under this plan, participants will receive incentive cash bonuses which are used to purchase shares of Grupo Mexico which are deposited in a trust.\n\n​\n\n*Non-controlling interest:*\n\n​\n\nFor all the years presented, in the consolidated statement of earnings the income attributable to non-controlling interest is based on the earnings of the Company's Peruvian Branch.\n\n​\n\nThe non-controlling interest of the Company’s Peruvian Branch is for investment shares. These shares were generated by legislation in place in Peru from the 1970s through 1991; such legislation provided for the participation of mining workers in the profits of the enterprises for which they worked. This participation was divided between equity and cash. The investment shares included in the non-controlling interest on the consolidated balance sheets reflect outstanding equity distributions made to the Peruvian Branch’s employees.\n\n​\n\nIn prior years, the Company acquired some Peruvian investment shares in exchange for newly issued common shares of the Company and through purchases at market value. These acquisitions were accounted for as purchases of non-controlling interests. The excess paid over the carrying value was assigned to intangible assets and is being amortized based on production. As a result of these acquisitions, the remaining investment shareholders hold a 0.71% interest in the Peruvian Branch and are entitled to a pro rata participation in the cash distributions made by the Peruvian Branch. The shares are recorded as a non-controlling interest in the Company's financial statements.\n\n​\n\n​\n\n​\n\n​\n\n174\n\n[Table of Contents](#TOC)\n\n**NOTE 15—FAIR VALUE MEASUREMENT:**\n\n​\n\nSubtopic 820-10 of ASC “Fair value measurement and disclosures -Overall” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under Subtopic 820-10 are described below:\n\n​\n\nLevel 1 -Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.\n\n​\n\nLevel 2 -Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs. (i.e., quoted prices for similar assets or liabilities).\n\n​\n\nLevel 3 -Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).\n\n​\n\nThe carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable (other than accounts receivable associated with provisionally priced sales) and accounts payable approximate fair value due to their short maturities. Consequently, such financial instruments are not included in the following table that provides information about the carrying amounts and estimated fair values of other financial instruments that are not measured at fair value in the consolidated balance sheet as of December 31, 2025 and December 31, 2024 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**At December 31, 2025**\n\n​\n\n**At December 31, 2024**\n\n​\n\n**  ​ ​ ​**\n\n**Carrying Value**\n\n**  ​ ​ ​**\n\n**Fair Value**\n\n**  ​ ​ ​**\n\n**Carrying Value**\n\n**  ​ ​ ​**\n\n**Fair Value**\n\nLiabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent portion of long-term debt level 1\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n499.8\n\n​\n\n$\n\n498.4\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLong-term debt level 1\n\n​\n\n$\n\n6,699.5\n\n​\n\n$\n\n7,009.5\n\n​\n\n$\n\n5,707.3\n\n​\n\n$\n\n5,653.6\n\nLong-term debt level 2\n\n​\n\n​\n\n51.2\n\n​\n\n​\n\n55.1\n\n​\n\n​\n\n51.2\n\n​\n\n​\n\n53.1\n\nTotal long-term debt\n\n​\n\n$\n\n6,750.7\n\n​\n\n$\n\n7,064.6\n\n​\n\n$\n\n5,758.5\n\n​\n\n$\n\n5,706.7\n\n​\n\nLong-term debt is carried at amortized cost and its estimated fair value is based on quoted market prices classified as Level 1 in the fair value hierarchy except for the case of the Yankee bonds, which qualify as Level 2 in the fair value hierarchy as they are based on quoted prices in markets that are not active.\n\n​\n\n175\n\n[Table of Contents](#TOC)\n\nFair values of assets and liabilities measured at fair value on a recurring basis were calculated as of December 31, 2025 and 2024, as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value at Measurement Date Using:**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Significant**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value**\n\n​\n\n**Quoted prices in**\n\n​\n\n**other**\n\n​\n\n**Significant**\n\n​\n\n​\n\n**as of**\n\n​\n\n**active markets for**\n\n​\n\n**observable**\n\n​\n\n**unobservable**\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**identical assets**\n\n​\n\n**inputs**\n\n​\n\n**inputs**\n\n**Description**\n\n​\n\n**2025**\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n*Assets:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*Short term investment:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n—Trading securities\n\n​\n\n$\n\n604.5\n\n​\n\n$\n\n604.5\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n—Available-for-sale debt securities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAsset backed securities\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nMortgage backed securities\n\n​\n\n \n\n0.1\n\n​\n\n​\n\n—\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n—\n\n*Accounts receivable:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n—Embedded derivatives—Not classified as hedges:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProvisionally priced sales:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCopper\n\n​\n\n \n\n1,297.5\n\n​\n\n \n\n1,297.5\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nMolybdenum\n\n​\n\n​\n\n383.8\n\n​\n\n​\n\n383.8\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nZinc\n\n​\n\n \n\n80.3\n\n​\n\n \n\n80.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\nTotal\n\n​\n\n$\n\n2,366.3\n\n​\n\n$\n\n2,366.2\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value at Measurement Date Using:**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Significant**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n**Fair Value**\n\n​\n\n**Quoted prices in**\n\n​\n\n**other**\n\n​\n\n**Significant**\n\n​\n\n​\n\n**as of**\n\n​\n\n**active markets for**\n\n​\n\n**observable**\n\n​\n\n**unobservable**\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**identical assets**\n\n​\n\n**inputs**\n\n​\n\n**inputs**\n\n**Description**\n\n​\n\n**2024**\n\n​\n\n**(Level 1)**\n\n​\n\n**(Level 2)**\n\n​\n\n**(Level 3)**\n\n*Assets:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*Short term investment:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n—Trading securities\n\n​\n\n$\n\n599.1\n\n​\n\n$\n\n599.1\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n—Available-for-sale debt securities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAsset backed securities\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nMortgage backed securities\n\n​\n\n \n\n0.1\n\n​\n\n​\n\n—\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n—\n\n*Accounts receivable:*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n—Embedded derivatives-Not classified as hedges:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProvisionally priced sales:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCopper\n\n​\n\n \n\n589.5\n\n​\n\n \n\n589.5\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nMolybdenum\n\n​\n\n \n\n274.5\n\n​\n\n \n\n274.5\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\nTotal\n\n​\n\n$\n\n1,463.2\n\n​\n\n$\n\n1,463.1\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n—\n\n​\n\nThe Company’s short-term trading securities investments are classified as Level 1 because they are valued using quoted prices of the same securities as they consist of bonds issued by public companies and publicly traded. The Company’s short-term available-for-sale investments are classified as Level 2 because they are valued using quoted prices for similar investments.\n\n​\n\nThe Company’s accounts receivables associated with provisionally priced copper sales are valued using quoted market prices based on the forward price on the LME or on the COMEX. Such value is classified within Level 1 of the fair value hierarchy. Molybdenum prices are established by reference to the publication Platt’s Metals Week and are considered Level 1 in the fair value hierarchy. The Company’s accounts receivables associated with provisionally priced zinc sales are valued using quoted market prices based on the forward price on the LME and are considered Level 1 in the fair value hierarchy.\n\n​\n\n​\n\n​\n\n176\n\n[Table of Contents](#TOC)\n\n**NOTE 16—CONCENTRATION OF RISK:**\n\n​\n\nThe Company operates five open-pit copper mines, three underground poly-metallic mines, two smelters and nine refineries in Peru and Mexico and substantially all of its assets are located in these countries. No assurances can be made that any operations and assets of the Company that are subject to the jurisdiction of the governments of Peru and Mexico will not be adversely affected by future actions of such governments. Much of the Company’s products are exported from Peru and Mexico to customers principally in the United States, Europe, Asia and South America.\n\n​\n\nFinancial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. The Company invests or maintains available cash with various banks, principally in the United States, Canada, Mexico, Europe and Peru, or in commercial papers of highly-rated companies. As part of its cash management process, the Company regularly monitors the relative credit standing of these institutions. As of December 31, 2025, SCC had invested its cash and cash equivalents and short-term investments as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**$ in**\n\n​\n\n**% of total**\n\n​\n\n**% in one institution**\n\n** **\n\n**Country**\n\n**  ​ ​ ​**\n\n**million**\n\n**  ​ ​ ​**\n\n**cash (1)**\n\n**  ​ ​ ​**\n\n**of country**\n\n**  ​ ​ ​**\n\n**of total cash**\n\n** **\n\nUnited States\n\n​\n\n$\n\n3,346.1\n\n​\n\n68.2\n\n%  \n\n17.3\n\n%  \n\n11.8\n\n%\n\nCanada\n\n​\n\n​\n\n404.8\n\n​\n\n8.2\n\n%  \n\n100.0\n\n%  \n\n8.2\n\n%  \n\nSwitzerland\n\n​\n\n​\n\n368.1\n\n​\n\n7.5\n\n%  \n\n100.0\n\n%  \n\n7.5\n\n%\n\nPeru\n\n​\n\n \n\n37.3\n\n​\n\n0.8\n\n%  \n\n62.9\n\n%  \n\n0.5\n\n%\n\nMexico\n\n​\n\n \n\n752.9\n\n​\n\n15.3\n\n%  \n\n78.4\n\n%  \n\n12.0\n\n%\n\nTotal cash and short-term investment\n\n​\n\n$\n\n4,909.3\n\n \n\n100.0\n\n%  \n\n​\n\n​\n\n​\n\n​\n\n(1)97.5% of the Company’s cash is in U.S. dollars.\n\n​\n\nDuring the normal course of business, the Company provides credit to its customers. Although the receivables resulting from these transactions are not collateralized, the Company has not experienced significant problems with the collection of receivables.\n\n​\n\nThe Company’s largest customers as percentage of accounts receivable and total sales were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n** **\n\nAccounts receivable trade as of December 31, \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFive largest customers\n\n \n\n34.6\n\n%  \n\n33.4\n\n%  \n\n32.6\n\n%\n\nLargest customer\n\n \n\n19.0\n\n%  \n\n12.1\n\n%  \n\n9.7\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal sales in year\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFive largest customers\n\n \n\n24.2\n\n%  \n\n23.5\n\n%  \n\n24.7\n\n%\n\nLargest customer\n\n \n\n8.7\n\n%  \n\n7.9\n\n%  \n\n7.7\n\n%\n\n​\n\n​\n\n​\n\n**NOTE 17—RELATED PARTY TRANSACTIONS:**\n\n​\n\nThe Company has entered into certain transactions in the ordinary course of business with parties that are controlling shareholders or their affiliates. These transactions include the lease of office space, air and railroad transportation, construction services, energy supply, and other products and services related to mining and refining. The Company lends and borrows funds among affiliates for acquisitions and other corporate purposes. These financial transactions bear interest and are subject to review and approval by senior management, as are all related party transactions. Article Nine of the Amended and Restated Certificate of Incorporation of the Company prohibits the Company from engaging in a Material Affiliate Transaction that was not the subject of prior review by a committee of the Board of Directors with at least three members, each of whom is independent, and defines a Material Affiliate Transaction as a transaction or series of related transactions between Grupo Mexico or one of its affiliates (other than the Company or its subsidiaries), on the one hand, and the Company or one of its subsidiaries, on the other hand, that involves consideration of more than $10.0 million in the aggregate. It is the Company’s policy that (i) a Material Affiliate Transaction not be entered into or continued without the review and approval by the Audit Committee or its subcommittee of related party transactions\n\n177\n\n[Table of Contents](#TOC)\n\ncomprised of independent directors,(ii) any potential related party transaction process with aggregate consideration between $8.0 million and $10.0 million be authorized by the General Counsel and Chief Financial Officer of the Company and (iii) all related party transactions, including any Material Affiliate Transaction, be reported to the Audit Committee of the Board of Directors or to its subcommittee of related party transactions.\n\n​\n\nReceivable and payable balances with related parties are shown below (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**At December 31, **\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nRelated parties receivable current:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Grupo Mexico and affiliates:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAsarco LLC\n\n$\n\n7.1\n\n​\n\n$\n\n7.1\n\nAMMINCO Apoyo Administrativo, S.A. de C.V. (“AMMINCO”)\n\n​\n\n(*)\n\n​\n\n​\n\n(*)\n\nFerrocarril Mexicano, S.A. de C.V.\n\n \n\n(*)\n\n​\n\n \n\n(*)\n\nMexico Generadora de Energia S. de R.L. (\"MGE\")\n\n​\n\n7.6\n\n​\n\n​\n\n5.4\n\nMexico Compania Constructora S.A de C.V.\n\n​\n\n(*)\n\n​\n\n​\n\n(*)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Related to the controlling group:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nEmpresarios Industriales de Mexico, S.A. de C.V.\n\n​\n\n1.5\n\n​\n\n​\n\n0.9\n\nOperadora de Cinemas S.A. de C.V.\n\n​\n\n0.1\n\n​\n\n​\n\n0.1\n\n​\n\n$\n\n16.2\n\n​\n\n$\n\n13.5\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRelated parties payable:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Grupo Mexico and affiliates:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAMMINCO\n\n$\n\n15.9\n\n​\n\n$\n\n6.0\n\nAsarco LLC\n\n​\n\n61.1\n\n​\n\n​\n\n6.0\n\nEolica El Retiro, S.A.P.I. de C.V.\n\n \n\n0.3\n\n​\n\n \n\n0.4\n\nFerrocarril Mexicano S.A. de C.V.\n\n \n\n4.0\n\n​\n\n \n\n2.9\n\nGrupo Mexico Servicios\n\n​\n\n3.3\n\n​\n\n​\n\n4.3\n\nMGE\n\n​\n\n30.2\n\n​\n\n​\n\n15.9\n\nMexico Compania Constructora S.A de C.V.\n\n​\n\n12.4\n\n​\n\n​\n\n8.0\n\nParque Eolico de Fenicias, S. de R.L. de C.V.\n\n​\n\n7.5\n\n​\n\n​\n\n2.6\n\nGrupo Mexico Servicios de Ingenieria, S.A. de C.V.\n\n​\n\n2.3\n\n​\n\n​\n\n2.1\n\n**Related to the controlling group:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBoutique Bowling de Mexico S.A. de C.V.\n\n \n\n0.8\n\n​\n\n \n\n0.5\n\nMexico Transportes Aereos S.A. de C.V. (“Mextransport”)\n\n \n\n0.4\n\n​\n\n \n\n0.1\n\nOperadora de Cinemas S.A. de C.V.\n\n​\n\n0.3\n\n​\n\n​\n\n0.4\n\n​\n\n$\n\n138.4\n\n​\n\n$\n\n49.2\n\n(*)   Less than $0.1 million.\n\n178\n\n[Table of Contents](#TOC)\n\n**Purchase and sale activity:**\n\n​\n\n**Grupo Mexico and affiliates:**\n\n​\n\nThe following table summarizes the purchase and sale activities with Grupo Mexico and its affiliates in 2025, 2024 and 2023 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nPurchase activity\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAsarco LLC\n\n​\n\n$\n\n71.5\n\n​\n\n$\n\n4.7\n\n​\n\n$\n\n30.4\n\nAMMINCO\n\n​\n\n​\n\n12.5\n\n​\n\n​\n\n10.0\n\n​\n\n​\n\n10.0\n\nEolica El Retiro, S.A.P.I. de C.V.\n\n​\n\n \n\n2.9\n\n​\n\n \n\n4.9\n\n​\n\n \n\n2.3\n\nFerrocarril Mexicano, S.A. de C.V.\n\n​\n\n \n\n48.1\n\n​\n\n \n\n48.4\n\n​\n\n \n\n53.0\n\nGrupo Mexico Servicios\n\n​\n\n​\n\n20.1\n\n​\n\n​\n\n20.1\n\n​\n\n​\n\n20.1\n\nMGE\n\n​\n\n \n\n207.0\n\n​\n\n \n\n172.6\n\n​\n\n \n\n224.6\n\nMexico Compania Constructora S.A de C.V.\n\n​\n\n​\n\n52.6\n\n​\n\n​\n\n75.3\n\n​\n\n​\n\n59.8\n\nParque Eolico de Fenicias, S. de R.L. de C.V.\n\n​\n\n​\n\n41.1\n\n​\n\n​\n\n12.4\n\n​\n\n​\n\n—\n\nGrupo Mexico Servicios de Ingenieria, S.A. de C.V.\n\n​\n\n​\n\n17.3\n\n​\n\n​\n\n18.8\n\n​\n\n​\n\n18.0\n\nTotal purchases\n\n​\n\n$\n\n473.0\n\n​\n\n$\n\n367.2\n\n​\n\n$\n\n418.2\n\nSales activity\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAsarco LLC\n\n​\n\n$\n\n51.8\n\n​\n\n$\n\n38.0\n\n​\n\n$\n\n39.6\n\nAMMINCO\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n(*)\n\nFerrocarril Mexicano, S.A. de C.V.\n\n​\n\n \n\n—\n\n​\n\n \n\n(*)\n\n​\n\n \n\n—\n\nMGE\n\n​\n\n​\n\n47.6\n\n​\n\n​\n\n35.8\n\n​\n\n​\n\n66.3\n\nTotal sales\n\n​\n\n$\n\n99.4\n\n​\n\n$\n\n73.9\n\n​\n\n$\n\n105.9\n\n(*)   Less than $0.1 million\n\n​\n\nGrupo Mexico, the parent and the majority indirect stockholder of the Company, and its affiliates provide various services to the Company. These services are primarily related to accounting, legal, tax, financial, treasury, human resources, price risk assessment and hedging, purchasing, procurement and logistics, sales and administrative and other support services. The Company pays AMMINCO and Grupo Mexico Servicios, both subsidiaries of Grupo Mexico, for these services and expects to continue requiring these services in the future.\n\n​\n\nIn 2025, 2024 and 2023, the Company donated $0.5 million, $2.6 million and $4.3 million, respectively, to Fundacion Grupo Mexico, A.C., an organization dedicated to promote the social and economic development of the communities close to the Company’s Mexican operations.\n\n​\n\nThe Company’s Mexican operations paid fees for freight services provided by Ferrocarril Mexicano, S.A de C.V., which is a subsidiary of Grupo Mexico. Additionally, the Company´s Peruvian and Mexican operations paid fees for engineering services provided by Grupo Mexico Servicios de Ingenieria, S.A. de C.V., and the Company’s Mexican operations paid fees for construction services provided by Mexico Compania Constructora S.A. de C.V. Both companies are subsidiaries of Mexico Proyectos y Desarrollos, S.A. de C.V., which is a subsidiary of Grupo Mexico.\n\n​\n\nThe Company’s Mexican operations purchased copper concentrates, starter sheets, cathodes, bars and a fixed asset from Asarco LLC and also paid fees for tolling services. Additionally, the Company´s Mexican operations purchased power from MGE. Both companies are subsidiaries of Grupo Mexico.\n\n​\n\nIn 2012, the Company signed a power purchase agreement with MGE, whereby MGE will supply some of the Company’s Mexican operations with power through 2032. MGE has two natural gas-fired combined cycle power generating units, with a net total capacity of 516.2 megawatts and has been supplying power to the Company since December 2013. In 2025, MGE supplied 11.5% of its power output to third-party energy users; compared to 20.2% in 2024.\n\n​\n\n179\n\n[Table of Contents](#TOC)\n\nIn 2014, Mexico Generadora de Energia Eolica, S. de R.L. de C.V, an indirect subsidiary of Grupo Mexico, located in Oaxaca, Mexico, acquired Eolica el Retiro, a windfarm with 37 wind turbines. This company started operations in January 2014 and began to sell power to Industrial Minera Mexico, S.A. de C.V. and subsidiaries (IMMSA) and other subsidiaries of Grupo Mexico in the third quarter of 2014. In 2025, Eolica el Retiro supplied approximately 16.5% of its power output to IMMSA and Mexcobre; compared to 25.5% in 2024.\n\n​\n\nIn 2020, the Company signed a power purchase agreement with Parque Eolico de Fenicias, S. de R.L. de C.V. (“Parque Eolico de Fenicias”), an indirect subsidiary of Grupo Mexico, located in Nuevo Leon, Mexico. This contract commits to supply 611,400 MWh of power per year to some of the Company´s Mexican operations for 20 years. This agreement started in the third quarter of 2024. In 2025, Parque Eolico de Fenicias supplied approximately 98.1% of its power output to IMMSA; compared to 58.6% in 2024.\n\n​\n\nThe Company sold copper starter sheets, sulfuric acid and lime to Asarco LLC. The Company´s Mexican operations received fees for transportation and administrative services that were provided to Asarco and also received fees for natural gas and services provided to MGE, a subsidiary of Grupo Mexico. In addition, the Company´s Mexican operations received fees for rental services provided to AMMINCO.\n\n​\n\n**Companies with relationships with the controlling group:**\n\n​\n\nThe following table summarizes the purchase and sales activities with other Larrea family companies in 2025, 2024 and 2023 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\nPurchase activity\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBoutique Bowling de Mexico S.A. de C.V.\n\n​\n\n$\n\n0.7\n\n​\n\n$\n\n0.6\n\n​\n\n$\n\n0.7\n\nMextransport\n\n​\n\n​\n\n2.6\n\n​\n\n​\n\n2.5\n\n​\n\n​\n\n2.8\n\nOperadora de Cinemas S.A. de C.V.\n\n​\n\n​\n\n0.4\n\n​\n\n​\n\n0.3\n\n​\n\n​\n\n0.4\n\nTotal purchases\n\n​\n\n$\n\n3.7\n\n​\n\n$\n\n3.4\n\n​\n\n$\n\n3.9\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nSales activity\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBoutique Bowling de Mexico S.A. de C.V.\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.1\n\n​\n\n$\n\n0.1\n\nEmpresarios Industriales de Mexico, S.A. de C.V.\n\n​\n\n​\n\n0.3\n\n​\n\n​\n\n0.4\n\n​\n\n​\n\n0.5\n\nMextransport\n\n​\n\n​\n\n2.3\n\n​\n\n​\n\n2.3\n\n​\n\n​\n\n2.3\n\nOperadora de Cinemas S.A. de C.V.\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n0.1\n\n​\n\n​\n\n0.1\n\nTotal sales\n\n​\n\n$\n\n2.9\n\n​\n\n$\n\n2.9\n\n​\n\n$\n\n3.0\n\n​\n\nThe Larrea family controls a majority of the capital stock of Grupo Mexico, and has extensive interests in other businesses, including transportation, real estate and entertainment. The Company engages in certain transactions in the ordinary course of business with other entities controlled by the Larrea family relating to the lease of office space, air transportation and entertainment.\n\n​\n\nThe Company’s Mexican operations paid fees for entertainment services provided by Boutique Bowling de Mexico, S.A de C.V. and Operadora de Cinemas, S.A. de C.V. Both companies are controlled by the Larrea family. Mextransport provides aviation services to the Company’s Mexican operations. This is a company controlled by the Larrea family.\n\n​\n\nIn addition, the Company received fees for building rental and maintenance services provided to Boutique Bowling de Mexico, S.A de C.V. and Operadora de Cinemas, S.A. de C.V. The Company´s Mexican operations received fees from Mextransport for reimbursement of maintenance expenses for rental services and also received fees from Empresarios Industriales de Mexico S.A. de C.V. for security services.\n\n​\n\n**Equity Investment in Affiliate:** The Company has a 44.2% participation in Compañia Minera Coimolache S.A. (“Coimolache”), which it accounts for on the equity method. Coimolache owns Tantahuatay, a gold mine located in northern Peru.\n\n​\n\nIn addition, the Company has a 30.0% participation in Apu Coropuna S.R.L. (“Apu Coropuna”), which it accounts for\n\n180\n\n[Table of Contents](#TOC)\n\non the equity method. Apu Coropuna is a company which undertakes exploration activities in the Pucay prospect, located in Arequipa, Peru. The exploration results were not favorable; consequently, the Company is evaluating selling its participation in this company.\n\n​\n\nIt is anticipated that in the future the Company will enter into similar transactions with these same parties.\n\n​\n\n​\n\n**NOTE 18—SEGMENT AND RELATED INFORMATION:**\n\n​\n\nCompany management views Southern Copper as having three reportable segments and manages it on the basis of these segments. The reportable segments identified by the Company are: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations segment identified as the IMMSA unit.\n\n​\n\nThe three reportable segments identified are groups of mines, each of which constitute an operating segment, with similar economic characteristics, type of products, processes and support facilities, similar regulatory environments, similar employee bargaining contracts and similar currency risks. In addition, each mine within the individual group earns revenues from similar type of customers for their products and services and each group incurs expenses independently, including commercial transactions between groups.\n\n​\n\nIntersegment 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. Added to the segment data is information regarding the Company’s sales. The segments identified by the Company are:\n\n​\n\n1.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. The Peruvian operations produce copper, with production of by-products of molybdenum, silver and other material.\n\n​\n\n2.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. The Mexican open-pit operations produce copper and zinc, with production of by-products of molybdenum, silver and other material.\n\n​\n\n3.Mexican underground mining operations, which include five underground mines that produce zinc, copper, silver and gold, and a zinc refinery. This group is identified as the IMMSA unit.\n\n​\n\nThe Peruvian operations include two open-pit copper mines whose mineral output is transported by rail to Ilo, Peru where it is processed at the Company’s Ilo smelter and refinery, without distinguishing between the products of the two mines. The resulting product, anodes and refined copper, are then shipped to customers throughout the world. These shipments are recorded as revenue of the Company’s Peruvian mines.\n\n​\n\nThe Mexican open-pit segment includes two copper mines whose mineral output is processed in the same smelter and refinery without distinguishing between the products of the two mines. The resultant product, anodes and refined copper, are then shipped to customers throughout the world. These shipments are recorded as revenues of the Company’s Mexican open-pit mines.\n\n​\n\nThe Company has determined that it is necessary to classify the Peruvian operations as an operating segment that is separate from the Mexican open-pit operations due to the very distinct regulatory and political environments in which they operate. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Chief Executive Officer of the Company presides over the executive committee that also includes the Chief Financial Officer, the Directors of each operating unit, and the heads of the supply chain, commercial, human resources, and investment projects departments. The CODM of the Company must consider the operations in each country separately when analyzing results of the Company and making key decisions. The open-pit mines in Peru must comply with stricter environmental rules and must deal with a political climate that has a very distinct vision of the mining industry than that\n\n181\n\n[Table of Contents](#TOC)\n\nseen in Mexico. In addition, the collective bargaining agreement contracts are negotiated differently in each of the countries. These key differences result in the Company taking varying decisions with regard to open-pit operations in the two countries.\n\n​\n\nThe IMMSA segment includes five mines whose minerals are processed in the same refinery. Sales of product from this segment are recorded as revenues of the Company’s IMMSA unit. While the Mexican underground mines are subject to a regulatory environment that is very similar to that applicable to Mexican open-pit mines, the nature of the products and processes of the two Mexican operations vary considerably. These differences cause the Company’s CODM to take a very different approach when analyzing results and making decisions regarding the two Mexican operations.\n\n​\n\nFinancial information is regularly prepared for each of the three segments and the results of the Company’s operations are regularly reported to the CODM on the segment basis. The CODM of the Company focuses on operating income and on total assets as measures of performance to evaluate different segments and to make decisions to allocate resources to the reported segments. These are common measures in the mining industry. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included in the amounts shown.\n\n​\n\nAnnually, the CODM of the Company reviews the operating results and submits the budgets for sales, costs, operating expenses, capital expenditures and production for each segment to the Board of Directors for approval. 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.\n\n​\n\n​\n\nFinancial information relating to Company’s segments is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2025**\n\n​\n\n​\n\n**(in millions)**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Mexican**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Corporate,**** ****other**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n**IMMSA **\n\n​\n\n**Peruvian **\n\n​\n\n**Segment**\n\n​\n\n**and**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**eliminations**\n\n​\n\n**Consolidated**\n\nNet sales to external customers\n\n​\n\n$\n\n7,574.4\n\n​\n\n​\n\n598.0\n\n​\n\n​\n\n5,247.6\n\n​\n\n$\n\n13,420.0\n\n​\n\n$\n\n—\n\n​\n\n$\n\n13,420.0\n\nIntersegment sales\n\n​\n\n \n\n48.6\n\n​\n\n​\n\n209.9\n\n​\n\n​\n\n—\n\n​\n\n \n\n258.5\n\n​\n\n \n\n(258.5)\n\n​\n\n \n\n0.0\n\nCost of sales (exclusive of depreciation, amortization and depletion)\n\n​\n\n \n\n2,868.9\n\n​\n\n​\n\n536.0\n\n​\n\n​\n\n2,244.7\n\n​\n\n \n\n5,649.6\n\n​\n\n \n\n(290.4)\n\n​\n\n \n\n5,359.2\n\nSelling, general and administrative\n\n​\n\n \n\n73.5\n\n​\n\n​\n\n14.0\n\n​\n\n​\n\n41.1\n\n​\n\n \n\n128.6\n\n​\n\n \n\n9.2\n\n​\n\n \n\n137.8\n\nDepreciation, amortization and depletion\n\n​\n\n \n\n399.7\n\n​\n\n​\n\n83.6\n\n​\n\n​\n\n335.8\n\n​\n\n \n\n819.1\n\n​\n\n \n\n49.3\n\n​\n\n \n\n868.4\n\nExploration\n\n​\n\n \n\n5.7\n\n​\n\n​\n\n11.9\n\n​\n\n​\n\n25.3\n\n​\n\n \n\n42.9\n\n​\n\n \n\n10.0\n\n​\n\n \n\n52.8\n\nOperating income\n\n​\n\n**$**\n\n**4,275.2**\n\n​\n\n**$**\n\n**162.4**\n\n​\n\n**$**\n\n**2,600.7**\n\n​\n\n**$**\n\n**7,038.3**\n\n​\n\n**$**\n\n**(36.6)**\n\n​\n\n​\n\n**7,001.7**\n\nLess:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n(169.7)\n\nOther income (expense)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n(47.7)\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**$**\n\n**6,784.3**\n\nCapital investment\n\n​\n\n$\n\n700.7\n\n​\n\n$\n\n118.1\n\n​\n\n$\n\n488.7\n\n​\n\n$\n\n1,307.5\n\n​\n\n$\n\n17.8\n\n​\n\n$\n\n1,325.3\n\nProperty and mine development, net\n\n​\n\n$\n\n4,921.7\n\n​\n\n$\n\n799.6\n\n​\n\n$\n\n3,957.3\n\n​\n\n$\n\n9,678.7\n\n​\n\n$\n\n593.6\n\n​\n\n$\n\n10,272.2\n\nTotal assets\n\n​\n\n$\n\n9,560.9\n\n​\n\n$\n\n1,380.6\n\n​\n\n$\n\n5,664.5\n\n​\n\n$\n\n16,606.0\n\n​\n\n$\n\n4,775.4\n\n​\n\n$\n\n21,381.4\n\n​\n\n182\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2024**\n\n​\n\n​\n\n**(in millions)**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Mexican**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n**Corporate,**** ****other**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n**IMMSA **\n\n​\n\n**Peruvian **\n\n​\n\n**Segment**\n\n​\n\n**and**\n\n​\n\n​\n\n​\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**eliminations**\n\n​\n\n**Consolidated**\n\nNet sales to external customers\n\n​\n\n$\n\n6,305.1\n\n​\n\n$\n\n523.6\n\n​\n\n$\n\n4,604.6\n\n​\n\n$\n\n11,433.4\n\n​\n\n$\n\n—\n\n​\n\n$\n\n11,433.4\n\nIntersegment sales\n\n​\n\n \n\n11.9\n\n​\n\n​\n\n180.5\n\n​\n\n \n\n—\n\n​\n\n \n\n192.4\n\n​\n\n \n\n(192.4)\n\n​\n\n \n\n(0.0)\n\nCost of sales (exclusive of depreciation, amortization and depletion)\n\n​\n\n \n\n2,447.5\n\n​\n\n \n\n479.1\n\n​\n\n \n\n2,111.4\n\n​\n\n \n\n5,038.0\n\n​\n\n \n\n(196.5)\n\n​\n\n \n\n4,841.4\n\nSelling, general and administrative\n\n​\n\n \n\n70.9\n\n​\n\n \n\n12.4\n\n​\n\n \n\n38.1\n\n​\n\n \n\n121.4\n\n​\n\n \n\n9.1\n\n​\n\n \n\n130.5\n\nDepreciation, amortization and depletion\n\n​\n\n \n\n405.8\n\n​\n\n \n\n72.9\n\n​\n\n \n\n329.5\n\n​\n\n \n\n808.2\n\n​\n\n \n\n37.7\n\n​\n\n \n\n845.9\n\nExploration\n\n​\n\n \n\n8.7\n\n​\n\n \n\n10.5\n\n​\n\n \n\n33.2\n\n​\n\n \n\n52.4\n\n​\n\n \n\n8.5\n\n​\n\n \n\n60.9\n\nOperating income\n\n​\n\n**$**\n\n**3,384.1**\n\n​\n\n**$**\n\n**129.2**\n\n​\n\n**$**\n\n**2,092.5**\n\n​\n\n**$**\n\n**5,605.8**\n\n​\n\n**$**\n\n**(51.1)**\n\n​\n\n​\n\n**5,554.7**\n\nLess:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n(202.7)\n\nOther income (expense)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n5.5\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**$**\n\n**5,357.4**\n\nCapital investment\n\n​\n\n$\n\n621.9\n\n​\n\n$\n\n122.6\n\n​\n\n$\n\n271.2\n\n​\n\n$\n\n1,015.8\n\n​\n\n$\n\n11.5\n\n​\n\n$\n\n1,027.3\n\nProperty and mine development, net\n\n​\n\n$\n\n4,735.4\n\n​\n\n$\n\n801.0\n\n​\n\n$\n\n3,759.7\n\n​\n\n$\n\n9,296.1\n\n​\n\n$\n\n587.2\n\n​\n\n$\n\n9,883.3\n\nTotal assets\n\n​\n\n$\n\n8,605.1\n\n​\n\n$\n\n1,204.5\n\n​\n\n$\n\n5,278.3\n\n​\n\n$\n\n15,087.9\n\n​\n\n$\n\n3,625.6\n\n​\n\n$\n\n18,713.5\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2023**\n\n​\n\n​\n\n**(in millions)**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Mexican**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Corporate,**** ****other**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n**IMMSA **\n\n​\n\n**Peruvian **\n\n​\n\n**Segment**\n\n​\n\n**and**\n\n​\n\n​\n\n​\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**eliminations**\n\n​\n\n**Consolidated**\n\nNet sales to external customers\n\n​\n\n$\n\n5,562.3\n\n​\n\n$\n\n479.2\n\n​\n\n$\n\n3,854.3\n\n​\n\n$\n\n9,895.8\n\n​\n\n$\n\n—\n\n​\n\n$\n\n9,895.8\n\nIntersegment sales\n\n​\n\n​\n\n—\n\n​\n\n​\n\n151.6\n\n​\n\n \n\n—\n\n​\n\n \n\n151.6\n\n​\n\n \n\n(151.6)\n\n​\n\n \n\n—\n\nCost of sales (exclusive of depreciation, amortization and depletion)\n\n​\n\n \n\n2,325.1\n\n​\n\n \n\n545.6\n\n​\n\n \n\n1,974.7\n\n​\n\n \n\n4,845.4\n\n​\n\n \n\n(157.7)\n\n​\n\n \n\n4,687.7\n\nSelling, general and administrative\n\n​\n\n \n\n70.1\n\n​\n\n \n\n10.4\n\n​\n\n \n\n38.4\n\n​\n\n \n\n118.9\n\n​\n\n \n\n8.3\n\n​\n\n \n\n127.2\n\nDepreciation, amortization and depletion\n\n​\n\n \n\n386.1\n\n​\n\n \n\n70.4\n\n​\n\n \n\n338.7\n\n​\n\n \n\n795.2\n\n​\n\n \n\n38.4\n\n​\n\n \n\n833.6\n\nExploration\n\n​\n\n​\n\n6.2\n\n​\n\n \n\n8.6\n\n​\n\n \n\n29.1\n\n​\n\n \n\n43.9\n\n​\n\n \n\n11.1\n\n​\n\n \n\n55.0\n\nOperating income\n\n​\n\n**$**\n\n**2,774.8**\n\n​\n\n**$**\n\n**(4.2)**\n\n​\n\n**$**\n\n**1,473.4**\n\n​\n\n**$**\n\n**4,244.0**\n\n​\n\n**$**\n\n**(51.7)**\n\n​\n\n​\n\n**4,192.3**\n\nLess:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n(240.1)\n\nOther income (expense)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n3.6\n\nIncome before income taxes\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**$**\n\n**3,955.8**\n\nCapital investment\n\n​\n\n$\n\n521.8\n\n​\n\n$\n\n147.7\n\n​\n\n$\n\n322.7\n\n​\n\n$\n\n992.2\n\n​\n\n$\n\n16.4\n\n​\n\n$\n\n1,008.6\n\nProperty and mine development, net\n\n​\n\n$\n\n4,590.1\n\n​\n\n$\n\n751.0\n\n​\n\n$\n\n3,624.2\n\n​\n\n$\n\n8,965.3\n\n​\n\n$\n\n817.6\n\n​\n\n$\n\n9,782.9\n\nTotal assets\n\n​\n\n$\n\n8,695.6\n\n​\n\n$\n\n1,166.1\n\n​\n\n$\n\n4,635.5\n\n​\n\n$\n\n14,497.2\n\n​\n\n$\n\n2,228.1\n\n​\n\n$\n\n16,725.3\n\n​\n\n​\n\n183\n\n[Table of Contents](#TOC)\n\nThe following table presents information regarding the opening and closing balances of receivables by reporting segment of the Company for the two years ended December 31, 2025 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**Mexican**\n\n  ​ ​ ​\n\n**IMMSA**\n\n  ​ ​ ​\n\n**Peruvian**\n\n  ​ ​ ​\n\n**Segment**\n\n​\n\n**Corporate &**\n\n  ​ ​ ​\n\n​\n\n​\n\n​\n\n​\n\n**Open-Pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**Elimination**\n\n​\n\n**Consolidated**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*As of December 31, 2025:*\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nTrade receivables\n\n​\n\n$\n\n1,149.9\n\n​\n\n$\n\n91.9\n\n​\n\n$\n\n709.5\n\n​\n\n$\n\n1,951.2\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1,951.2\n\nRelated parties, current\n\n​\n\n \n\n47.9\n\n​\n\n \n\n52.6\n\n​\n\n \n\n0.1\n\n​\n\n \n\n100.6\n\n​\n\n \n\n(84.3)\n\n​\n\n \n\n16.2\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*As of December 31, 2024:*\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nTrade receivables\n\n​\n\n$\n\n623.0\n\n​\n\n$\n\n59.7\n\n​\n\n$\n\n506.9\n\n​\n\n$\n\n1,189.6\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1,189.6\n\nRelated parties, current\n\n​\n\n​\n\n39.7\n\n​\n\n \n\n25.1\n\n​\n\n \n\n1.3\n\n​\n\n \n\n66.2\n\n​\n\n \n\n(52.7)\n\n​\n\n​\n\n13.5\n\n​\n\n**SALES VALUE PER SEGMENT:**\n\n​\n\nThe following table presents information regarding the sales value by reporting segment of the Company’s significant products for the three years ended December 31, 2025 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2025**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n**  ​ ​ ​**\n\n**IMMSA **\n\n**  ​ ​ ​**\n\n**Peruvian**\n\n​\n\n**Segment**\n\n**  ​ ​ ​**\n\n**Corporate, Other**** ****&**\n\n**  ​ ​ ​**\n\n**Total**\n\n**(in millions)**\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**Eliminations**\n\n​\n\n**Consolidated**\n\nCopper\n\n​\n\n$\n\n5,810.6\n\n​\n\n$\n\n142.2\n\n​\n\n$\n\n4,182.3\n\n​\n\n$\n\n10,135.1\n\n​\n\n$\n\n(101.2)\n\n​\n\n$\n\n10,033.8\n\nMolybdenum\n\n​\n\n \n\n729.3\n\n​\n\n \n\n—\n\n​\n\n \n\n675.8\n\n​\n\n \n\n1,405.1\n\n​\n\n \n\n—\n\n​\n\n \n\n1,405.1\n\nZinc\n\n​\n\n \n\n283.2\n\n​\n\n \n\n280.7\n\n​\n\n \n\n—\n\n​\n\n \n\n563.9\n\n​\n\n \n\n(34.0)\n\n​\n\n \n\n529.9\n\nSilver\n\n​\n\n \n\n556.9\n\n​\n\n \n\n299.4\n\n​\n\n \n\n236.3\n\n​\n\n \n\n1,092.5\n\n​\n\n \n\n(118.6)\n\n​\n\n \n\n973.9\n\nOther\n\n​\n\n \n\n243.0\n\n​\n\n \n\n85.6\n\n​\n\n \n\n153.3\n\n​\n\n \n\n481.8\n\n​\n\n \n\n(4.6)\n\n​\n\n \n\n477.2\n\nTotal\n\n​\n\n$\n\n7,623.0\n\n​\n\n$\n\n807.8\n\n​\n\n$\n\n5,247.6\n\n​\n\n$\n\n13,678.4\n\n​\n\n$\n\n(258.5)\n\n​\n\n$\n\n13,420.0\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2024**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n**  ​ ​ ​**\n\n**IMMSA **\n\n**  ​ ​ ​**\n\n**Peruvian**\n\n​\n\n**Segment**\n\n**  ​ ​ ​**\n\n**Corporate, Other**** ****&**\n\n**  ​ ​ ​**\n\n**Total**\n\n**(in millions)**\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**Eliminations**\n\n​\n\n**Consolidated**\n\nCopper\n\n​\n\n$\n\n4,981.1\n\n​\n\n$\n\n127.7\n\n​\n\n$\n\n3,726.2\n\n​\n\n$\n\n8,835.1\n\n​\n\n$\n\n(81.4)\n\n​\n\n$\n\n8,753.7\n\nMolybdenum\n\n​\n\n \n\n674.5\n\n​\n\n \n\n—\n\n​\n\n \n\n571.9\n\n​\n\n \n\n1,246.4\n\n​\n\n \n\n—\n\n​\n\n \n\n1,246.4\n\nZinc\n\n​\n\n \n\n137.3\n\n​\n\n \n\n306.2\n\n​\n\n \n\n—\n\n​\n\n \n\n443.6\n\n​\n\n \n\n(8.7)\n\n​\n\n \n\n434.9\n\nSilver\n\n​\n\n \n\n342.6\n\n​\n\n \n\n191.2\n\n​\n\n \n\n151.1\n\n​\n\n \n\n684.9\n\n​\n\n \n\n(96.9)\n\n​\n\n \n\n588.0\n\nOther\n\n​\n\n \n\n181.5\n\n​\n\n \n\n78.9\n\n​\n\n \n\n155.4\n\n​\n\n \n\n415.8\n\n​\n\n \n\n(5.4)\n\n​\n\n \n\n410.4\n\nTotal\n\n​\n\n$\n\n6,317.0\n\n​\n\n$\n\n704.1\n\n​\n\n$\n\n4,604.6\n\n​\n\n$\n\n11,625.8\n\n​\n\n$\n\n(192.4)\n\n​\n\n$\n\n11,433.4\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2023**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n**  ​ ​ ​**\n\n**IMMSA **\n\n**  ​ ​ ​**\n\n**Peruvian**\n\n​\n\n**Segment**\n\n**  ​ ​ ​**\n\n**Corporate, Other**** ****&**\n\n**  ​ ​ ​**\n\n**Total**\n\n**(in millions)**\n\n​\n\n**Open-pit**\n\n​\n\n**Unit**\n\n​\n\n**Operations**\n\n​\n\n**Total**\n\n​\n\n**Eliminations**\n\n​\n\n**Consolidated**\n\nCopper\n\n​\n\n$\n\n4,442.2\n\n​\n\n$\n\n89.1\n\n​\n\n$\n\n3,129.1\n\n​\n\n$\n\n7,660.4\n\n​\n\n$\n\n(69.3)\n\n​\n\n$\n\n7,591.1\n\nMolybdenum\n\n​\n\n \n\n689.4\n\n​\n\n \n\n—\n\n​\n\n \n\n440.3\n\n​\n\n \n\n1,129.7\n\n​\n\n \n\n—\n\n​\n\n \n\n1,129.7\n\nZinc\n\n​\n\n \n\n—\n\n​\n\n \n\n300.9\n\n​\n\n \n\n—\n\n​\n\n \n\n300.9\n\n​\n\n \n\n0.5\n\n​\n\n \n\n301.4\n\nSilver\n\n​\n\n \n\n233.7\n\n​\n\n \n\n158.3\n\n​\n\n \n\n100.2\n\n​\n\n \n\n492.2\n\n​\n\n \n\n(74.6)\n\n​\n\n \n\n417.6\n\nOther\n\n​\n\n \n\n197.0\n\n​\n\n \n\n82.5\n\n​\n\n \n\n184.7\n\n​\n\n \n\n464.2\n\n​\n\n \n\n(8.2)\n\n​\n\n \n\n456.0\n\nTotal\n\n​\n\n$\n\n5,562.3\n\n​\n\n$\n\n630.8\n\n​\n\n$\n\n3,854.3\n\n​\n\n$\n\n10,047.4\n\n​\n\n$\n\n(151.6)\n\n​\n\n$\n\n9,895.8\n\n​\n\n184\n\n[Table of Contents](#TOC)\n\n**NET SALES AND GEOGRAPHICAL INFORMATION:**\n\n​\n\nThe geographic breakdown of the Company’s sales for the three years ended December 31, 2025, is attributed to countries based on location of customer, and is summarized as follows (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n**Mexican **\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican **\n\n​\n\n**IMMSA**\n\n​\n\n**Peruvian **\n\n​\n\n**Segment**\n\n​\n\n**Corporate & **\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**Open-Pit**\n\n  ​ ​ ​\n\n**Unit**\n\n  ​ ​ ​\n\n**Operations**\n\n​\n\n**Total**\n\n  ​ ​ ​\n\n**Elimination**\n\n  ​ ​ ​\n\n**Consolidated**\n\nThe Americas:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMexico\n\n​\n\n$\n\n2,816.6\n\n​\n\n$\n\n692.8\n\n​\n\n$\n\n0.2\n\n​\n\n$\n\n3,509.5\n\n​\n\n$\n\n(257.6)\n\n​\n\n$\n\n3,251.9\n\nUnited States\n\n​\n\n \n\n1,456.1\n\n​\n\n \n\n0.2\n\n​\n\n \n\n410.3\n\n​\n\n \n\n1,866.6\n\n​\n\n \n\n—\n\n​\n\n \n\n1,866.6\n\nPeru\n\n​\n\n \n\n—\n\n​\n\n \n\n1.0\n\n​\n\n \n\n864.2\n\n​\n\n \n\n865.2\n\n​\n\n \n\n(0.9)\n\n​\n\n \n\n864.3\n\nBrazil\n\n​\n\n \n\n—\n\n​\n\n \n\n41.1\n\n​\n\n \n\n517.0\n\n​\n\n \n\n558.1\n\n​\n\n \n\n—\n\n​\n\n \n\n558.1\n\nChile\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n548.4\n\n​\n\n \n\n548.4\n\n​\n\n \n\n—\n\n​\n\n \n\n548.4\n\nOther American countries\n\n​\n\n \n\n51.7\n\n​\n\n \n\n—\n\n​\n\n \n\n32.1\n\n​\n\n \n\n83.7\n\n​\n\n \n\n—\n\n​\n\n \n\n83.7\n\nEurope:\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nSwitzerland\n\n​\n\n \n\n1,058.1\n\n​\n\n \n\n53.0\n\n​\n\n \n\n741.4\n\n​\n\n \n\n1,852.5\n\n​\n\n \n\n—\n\n​\n\n \n\n1,852.5\n\nItaly\n\n​\n\n \n\n—\n\n​\n\n \n\n17.9\n\n​\n\n \n\n376.9\n\n​\n\n \n\n394.8\n\n​\n\n \n\n—\n\n​\n\n \n\n394.8\n\nSpain\n\n​\n\n \n\n502.5\n\n​\n\n \n\n—\n\n​\n\n \n\n163.0\n\n​\n\n \n\n665.5\n\n​\n\n \n\n—\n\n​\n\n \n\n665.5\n\nOther European countries\n\n​\n\n \n\n63.8\n\n​\n\n \n\n1.9\n\n​\n\n \n\n630.3\n\n​\n\n \n\n696.0\n\n​\n\n \n\n—\n\n​\n\n \n\n696.0\n\nAsia:\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nChina\n\n​\n\n​\n\n1,153.6\n\n​\n\n​\n\n—\n\n​\n\n​\n\n123.2\n\n​\n\n​\n\n1,276.9\n\n​\n\n​\n\n—\n\n​\n\n​\n\n1,276.9\n\nSingapore\n\n​\n\n \n\n41.0\n\n​\n\n \n\n—\n\n​\n\n \n\n230.5\n\n​\n\n \n\n271.5\n\n​\n\n \n\n—\n\n​\n\n \n\n271.5\n\nJapan\n\n​\n\n \n\n415.2\n\n​\n\n \n\n—\n\n​\n\n \n\n569.8\n\n​\n\n \n\n985.0\n\n​\n\n \n\n—\n\n​\n\n \n\n985.0\n\nOther Asian countries\n\n​\n\n \n\n64.3\n\n​\n\n \n\n—\n\n​\n\n \n\n40.4\n\n​\n\n \n\n104.7\n\n​\n\n \n\n—\n\n​\n\n \n\n104.7\n\nTotal\n\n​\n\n$\n\n7,623.0\n\n​\n\n$\n\n807.8\n\n​\n\n$\n\n5,247.6\n\n​\n\n$\n\n13,678.4\n\n​\n\n$\n\n(258.5)\n\n​\n\n$\n\n13,420.0\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2024**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n**IMMSA**\n\n​\n\n**Peruvian**\n\n​\n\n**Segment**\n\n​\n\n**Corporate &**\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**Open-Pit**\n\n  ​ ​ ​\n\n**Unit**\n\n  ​ ​ ​\n\n**Operations**\n\n​\n\n**Total**\n\n  ​ ​ ​\n\n**Elimination**\n\n  ​ ​ ​\n\n**Consolidated**\n\nThe Americas:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMexico\n\n​\n\n$\n\n2,481.5\n\n​\n\n$\n\n503.0\n\n​\n\n$\n\n33.9\n\n​\n\n$\n\n3,018.4\n\n​\n\n$\n\n(163.5)\n\n​\n\n$\n\n2,854.9\n\nUnited States\n\n​\n\n \n\n1,129.9\n\n​\n\n \n\n2.4\n\n​\n\n \n\n339.1\n\n​\n\n \n\n1,471.4\n\n​\n\n \n\n—\n\n​\n\n​\n\n1,471.4\n\nPeru\n\n​\n\n \n\n—\n\n​\n\n \n\n28.6\n\n​\n\n \n\n661.6\n\n​\n\n \n\n690.2\n\n​\n\n \n\n(28.9)\n\n​\n\n​\n\n661.4\n\nBrazil\n\n​\n\n \n\n—\n\n​\n\n \n\n39.4\n\n​\n\n \n\n474.1\n\n​\n\n \n\n513.5\n\n​\n\n \n\n—\n\n​\n\n​\n\n513.5\n\nChile\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n452.3\n\n​\n\n \n\n452.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n452.3\n\nOther American countries\n\n​\n\n \n\n43.1\n\n​\n\n \n\n—\n\n​\n\n \n\n27.1\n\n​\n\n \n\n70.2\n\n​\n\n \n\n—\n\n​\n\n​\n\n70.2\n\nEurope:\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\nSwitzerland\n\n​\n\n​\n\n735.2\n\n​\n\n \n\n92.5\n\n​\n\n \n\n613.0\n\n​\n\n \n\n1,440.7\n\n​\n\n \n\n—\n\n​\n\n​\n\n1,440.7\n\nItaly\n\n​\n\n​\n\n—\n\n​\n\n \n\n24.9\n\n​\n\n \n\n344.2\n\n​\n\n \n\n369.0\n\n​\n\n \n\n—\n\n​\n\n​\n\n369.0\n\nSpain\n\n​\n\n​\n\n461.0\n\n​\n\n \n\n—\n\n​\n\n \n\n88.1\n\n​\n\n \n\n549.1\n\n​\n\n \n\n—\n\n​\n\n​\n\n549.1\n\nOther European countries\n\n​\n\n​\n\n163.9\n\n​\n\n \n\n10.4\n\n​\n\n \n\n552.0\n\n​\n\n \n\n726.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n726.3\n\nAsia:\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\nChina\n\n​\n\n​\n\n921.8\n\n​\n\n​\n\n3.5\n\n​\n\n​\n\n257.8\n\n​\n\n​\n\n1,183.1\n\n​\n\n​\n\n—\n\n​\n\n​\n\n1,183.1\n\nSingapore\n\n​\n\n​\n\n104.4\n\n​\n\n \n\n(0.6)\n\n​\n\n \n\n151.9\n\n​\n\n \n\n255.7\n\n​\n\n \n\n—\n\n​\n\n​\n\n255.7\n\nJapan\n\n​\n\n​\n\n185.1\n\n​\n\n \n\n—\n\n​\n\n \n\n541.1\n\n​\n\n \n\n726.2\n\n​\n\n \n\n—\n\n​\n\n​\n\n726.2\n\nOther Asian countries\n\n​\n\n​\n\n91.1\n\n​\n\n \n\n—\n\n​\n\n \n\n68.6\n\n​\n\n \n\n159.7\n\n​\n\n \n\n—\n\n​\n\n​\n\n159.7\n\nTotal\n\n​\n\n$\n\n6,317.0\n\n​\n\n$\n\n704.1\n\n​\n\n$\n\n4,604.6\n\n​\n\n$\n\n11,625.8\n\n​\n\n$\n\n(192.4)\n\n​\n\n$\n\n11,433.4\n\n​\n\n185\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ended December 31, 2023**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Mexican**\n\n​\n\n**IMMSA**\n\n​\n\n**Peruvian**\n\n​\n\n**Segment**\n\n​\n\n**Corporate &**\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**Open-Pit**\n\n  ​ ​ ​\n\n**Unit**\n\n  ​ ​ ​\n\n**Operations**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n**Elimination**\n\n  ​ ​ ​\n\n**Consolidated**\n\nThe Americas:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMexico\n\n​\n\n$\n\n2,329.3\n\n​\n\n$\n\n475.3\n\n​\n\n$\n\n—\n\n​\n\n$\n\n2,804.6\n\n​\n\n$\n\n(133.5)\n\n​\n\n$\n\n2,671.1\n\nUnited States\n\n​\n\n \n\n1,086.6\n\n​\n\n \n\n18.3\n\n​\n\n \n\n515.4\n\n​\n\n \n\n1,620.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n1,620.3\n\nPeru\n\n​\n\n \n\n—\n\n​\n\n \n\n18.4\n\n​\n\n \n\n394.6\n\n​\n\n \n\n413.0\n\n​\n\n \n\n(18.1)\n\n​\n\n​\n\n394.9\n\nBrazil\n\n​\n\n \n\n—\n\n​\n\n \n\n34.5\n\n​\n\n \n\n355.8\n\n​\n\n \n\n390.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n390.3\n\nChile\n\n​\n\n \n\n(8.4)\n\n​\n\n \n\n—\n\n​\n\n \n\n407.9\n\n​\n\n \n\n399.5\n\n​\n\n \n\n—\n\n​\n\n​\n\n399.5\n\nOther American countries\n\n​\n\n \n\n39.3\n\n​\n\n \n\n0.5\n\n​\n\n \n\n20.7\n\n​\n\n \n\n60.5\n\n​\n\n \n\n—\n\n​\n\n​\n\n60.5\n\nEurope:\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\nSwitzerland\n\n​\n\n​\n\n520.2\n\n​\n\n \n\n29.8\n\n​\n\n \n\n535.4\n\n​\n\n \n\n1,085.4\n\n​\n\n \n\n—\n\n​\n\n​\n\n1,085.4\n\nItaly\n\n​\n\n​\n\n1.1\n\n​\n\n \n\n18.9\n\n​\n\n \n\n394.4\n\n​\n\n \n\n414.4\n\n​\n\n \n\n—\n\n​\n\n​\n\n414.4\n\nSpain\n\n​\n\n​\n\n397.0\n\n​\n\n \n\n—\n\n​\n\n \n\n75.9\n\n​\n\n \n\n472.9\n\n​\n\n \n\n—\n\n​\n\n​\n\n472.9\n\nOther European countries\n\n​\n\n​\n\n163.5\n\n​\n\n \n\n24.4\n\n​\n\n \n\n219.8\n\n​\n\n \n\n407.7\n\n​\n\n \n\n—\n\n​\n\n​\n\n407.7\n\nAsia:\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\nChina\n\n​\n\n​\n\n631.7\n\n​\n\n​\n\n2\n\n​\n\n​\n\n115.2\n\n​\n\n​\n\n749.2\n\n​\n\n​\n\n—\n\n​\n\n​\n\n749.2\n\nSingapore\n\n​\n\n​\n\n155.5\n\n​\n\n \n\n8.1\n\n​\n\n \n\n200.7\n\n​\n\n \n\n364.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n364.3\n\nJapan\n\n​\n\n​\n\n160.3\n\n​\n\n \n\n—\n\n​\n\n \n\n508.0\n\n​\n\n \n\n668.3\n\n​\n\n \n\n—\n\n​\n\n​\n\n668.3\n\nOther Asian countries\n\n​\n\n​\n\n86.2\n\n​\n\n \n\n0.3\n\n​\n\n \n\n110.5\n\n​\n\n \n\n197.0\n\n​\n\n \n\n—\n\n​\n\n​\n\n197.0\n\nTotal\n\n​\n\n$\n\n5,562.3\n\n​\n\n$\n\n630.8\n\n​\n\n$\n\n3,854.3\n\n​\n\n$\n\n10,047.4\n\n​\n\n$\n\n(151.6)\n\n​\n\n$\n\n9,895.8\n\n​\n\n**PROVISIONAL SALES PRICE:**\n\n​\n\nAt December 31, 2025, the Company has recorded provisionally priced sales of copper and zinc at average forward prices per pound, and molybdenum at the year-end market price per pound. These sales are subject to final pricing based on the average monthly copper prices on the London Metal Exchange (“LME”) or New York Commodities Exchange (“COMEX”) copper prices, LME zinc prices and Dealer Oxide molybdenum prices in the future month of settlement.\n\n​\n\nFollowing are the provisionally priced copper, molybdenum and zinc sales outstanding as of December 31, 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Sales**** ****volume**\n\n**  ​ ​ ​**\n\n**Priced at**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n**(million**** ****lbs.)**\n\n​\n\n**(per pound)**\n\n​\n\n**Month of settlement**\n\nCopper\n\n​\n\n237.0\n\n​\n\n5.65\n\n​\n\nJanuary through June 2026\n\nMolybdenum\n\n​\n\n16.9\n\n​\n\n22.70\n\n​\n\nJanuary through April 2026\n\nZinc\n\n​\n\n57.0\n\n​\n\n1.41\n\n​\n\nJanuary through March 2026\n\n​\n\nProvisional sales price adjustments included in accounts receivable and net sales were as follows as of December, 31 (in millions):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**At December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\nCopper\n\n​\n\n$\n\n159.3\n\n​\n\n$\n\n(27.5)\n\nMolybdenum\n\n​\n\n​\n\n(12.7)\n\n​\n\n​\n\n(14.1)\n\nZinc\n\n​\n\n \n\n9.7\n\n​\n\n \n\n—\n\nTotal\n\n​\n\n$\n\n156.2\n\n​\n\n$\n\n(41.6)\n\n​\n\nManagement believes that the final pricing of these sales will not have a material effect on the Company’s financial position or results of operations.\n\n​\n\n186\n\n[Table of Contents](#TOC)\n\n**LONG-TERM SALES CONTRACTS:**\n\n​\n\nThe following are the significant outstanding long-term contracts:\n\n​\n\nIn 2025, SPCC Peru Branch signed a two-year contract copper cathode sales agreement with Hartree Partners, with shipments beginning in 2026. Hartree and the Company will negotiate market terms and conditions for 2027 no later than November 30, 2026. The contract considers an annual volume of copper cathodes of 24,000 tonnes. Failure to reach an agreement on market terms would trigger termination of the annual contract but not the long-term agreement. Under the terms of the agreement all shipments would be to the U.S. and no exclusivity rights for Hartree or commissions are included. This contract may be renewed for additional years, upon the agreement of both parties.\n\n​\n\nIn 2025, Minera Mexico signed a two-year contract copper rod sales agreement with COFICAB Mexico, with shipments beginning in 2026. COFICAB and the Company will negotiate market terms and conditions for 2027 no later than November 30, 2026. The contract considers an annual volume of 46,200 tonnes of copper rod. Failure to reach an agreement on market terms would trigger termination of the annual contract but not the long-term agreement. Under the terms of the agreement all shipments would be within Mexico and no exclusivity rights for COFICAB or commissions are included. This contract may be renewed for additional years, upon the agreement of both parties.\n\n​\n\nAs of December 31, 2025, SPCC Peru Branch has outstanding long-term sales contracts for copper concentrates with two customers. The total annual volume committed for delivery for 2026 is 80,000 tonnes with a 25% copper content, equivalent to 10,000 fine metric tonnes (“FMT”). For 2027, these contracts contemplate a committed volume of 140,000 tonnes with a copper content of 25%, equivalent to 35,000 FMT.\n\n​\n\nAs of December 31, 2025, Operadora de Minas e Instalaciones Mineras, S.A. de C. V has outstanding long-term sales contracts for copper concentrates with nine customers. The total annual volume committed for delivery for 2026 is 680,000 tonnes with a 25% copper content, equivalent to 170,000 FMT.\n\n​\n\nUnder the terms of a sales contract with Molymet Group, SPCC Peru Branch is required to supply approximately 70% of the molybdenum concentrates production from 2026 through 2028. The sale price of the molybdenum concentrate is based on the average of the High and Low “Daily Dealer Oxide” as published in “Platt’s Metals Daily”. The roasting charge deduction is agreed based on international market terms.\n\n​\n\nUnder the terms of a sales contract with Molymex, S.A. de C.V., Operadora de Minas de Nacozari, S.A. de C.V. and Operadora de Minas e Instalaciones Mineras, S.A. de C. V. are required to supply at least 80% of their molybdenum concentrates production from 2024 through 2026. The sale price of the molybdenum concentrate is based on the average of the High and Low “Daily Dealer Oxide” as published in “Platt’s Metals Daily.” The roasting charge deduction is negotiated based on international market terms.\n\n​\n\nIn 2024, a two-year sulfuric acid sales agreement was signed between SPCC Peru Branch and Marcobre, with shipments scheduled to begin in 2025. Marcobre and the Company will negotiate market terms and conditions for annual contracts no later than the last day of October of the year prior to shipment. The contract considers annual volumes that could make Marcobre the Company’s most important customer for sulfuric acid. This contract may be renewed for additional years, upon agreement by both parties.\n\n​\n\nIn 2022, a five-year sulfuric acid sales agreement was signed between Metalúrgica del Cobre and Cobre del Mayo. Shipments were scheduled to begin in 2022 and continue through December 2026. Cobre del Mayo and the Company agreed to negotiate market terms and conditions for annual contracts yearly, prior to shipment. This contract may be renewed for additional years, upon agreement by both parties.\n\n​\n\n​\n\n187\n\n[Table of Contents](#TOC)\n\n**NOTE 19 – EARNINGS PER SHARE:**\n\n​\n\nThe following table sets forth the computation of basic and diluted earnings per share (dollars and shares in millions except per share data):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**2025**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2023**\n\n​\n\n​\n\n**(in millions, except for per share amounts)**\n\nNet income\n\n​\n\n \n\n4,348.2\n\n​\n\n \n\n3,388.6\n\n​\n\n \n\n2,434.7\n\nLess: Net income attributable to the non-controlling interest\n\n​\n\n \n\n13.3\n\n​\n\n \n\n11.8\n\n​\n\n \n\n9.5\n\nNet income attributable to SCC\n\n​\n\n$\n\n4,334.9\n\n​\n\n$\n\n3,376.8\n\n​\n\n$\n\n2,425.2\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWeighted average common shares outstanding-basic and diluted\n\n​\n\n​\n\n826.6\n\n​\n\n​\n\n802.9\n\n​\n\n​\n\n795.3\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Basic and diluted net income per share:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommon shares-basic and diluted\n\n​\n\n$\n\n5.24\n\n​\n\n$\n\n4.21\n\n​\n\n$\n\n3.05\n\n​\n\nOn May 19, 2025, the Company paid a stock dividend of 0.0099 shares per common share. Additionally, on September 4, 2025, and November 28, 2025, the Company paid stock dividends of 0.0101 shares and 0.0085 shares per common share, respectively. Earnings per share have been adjusted retroactively to reflect these changes in capital structure, in accordance with GAAP.\n\n​\n\n​\n\n**NOTE 20—SUBSEQUENT EVENTS:**\n\n​\n\nDividends:\n\n​\n\nOn January 22, 2026, the Board of Directors authorized a quarterly cash dividend of $1.00 per share of common stock and a stock dividend of 0.0085 shares of common stock per share of common stock, payable on February 27, 2026, for shareholders of record at the close of business on February 10, 2026.\n\n​\n\nIn lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $179.93, which is the average of the high and low share price on January 22, 2026.\n\n​\n\n​\n\n​\n\n​\n\n188\n\n[Table of Contents](#TOC)\n\n**OTHER COMPANY INFORMATION:**\n\n​\n\n**ANNUAL MEETING**\n\n​\n\nThe annual stockholders meeting of Southern Copper Corporation will be held on Friday, May 29, 2026, at 9:00 am, Mexico City time. This year’s meeting will be held via a live audio webcast.\n\n​\n\n**TRANSFER AGENT, REGISTRAR AND STOCKHOLDERS’ SERVICES**\n\n​\n\nComputershare\n\n480 Washington Boulevard\n\nJersey City, NJ 07310-1900\n\nPhone: (866) 230-0172\n\n​\n\n**DIVIDEND REINVESTMENT PROGRAM**\n\n​\n\nSCC stockholders can have their dividends automatically reinvested in SCC common shares. SCC pays all administrative and brokerage fees. This plan is administered by Computershare. For more information, contact Computershare at (866) 230-0172.\n\n​\n\n**STOCK EXCHANGE LISTING**\n\n​\n\nThe principal markets for SCC’s common stock are the NYSE and the Lima Stock Exchange (BVL). SCC’s common stock symbol is SCCO on both the NYSE and the Lima Stock Exchange.\n\n​\n\n**OTHER SECURITIES**\n\n​\n\nThe Branch in Peru has issued, in accordance with Peruvian Law, “investment shares” (formerly named labor shares) that are quoted on the Lima Stock Exchange under symbols SPCCPI1 and SPCCPI2. Transfer Agent, registrar and stockholders services are provided by Credicorp Capital, Avenida EI Derby 055, Torre 4, Piso 10, Santiago de Surco, Cod postal 15039, Peru.\n\n​\n\nTelephone (51-1) 416-3333, Extensions 32478 and 32441.\n\n​\n\n**OTHER CORPORATE INFORMATION**\n\n​\n\nFor other information on the Company or to obtain, free of charge, additional copies of the Annual Report on Form 10-K, contact the Investor Relations Department at:\n\n​\n\n7310 North 16th St, Suite 135 Phoenix, AZ 85020, USA\n\nTelephone: (602) 264-1375\n\n​\n\n**SOUTHERN COPPER CORPORATION**\n\n​\n\nUSA\n\n7310 North 16th St, Suite 135\n\nPhoenix, AZ 85020, USA\n\nPhone: (602) 264-1375\n\nFax: (602) 264-1397\n\n​\n\nMexico\n\nCampos Eliseos 400\n\nColonia Lomas de Chapultepec\n\nDelegacion Miguel Hidalgo\n\n189\n\n[Table of Contents](#TOC)\n\nC.P. 11000—MEXICO\n\nPhone: (5255) 1103-5000\n\nFax: (5255) 1103-5567\n\n​\n\nPeru\n\nAv. Caminos del Inca 171\n\nUrb. Chacarilla del Estanque\n\nSantiago de Surco\n\nCod postal 15038—PERU\n\nPhone: (511) 512-0440 Ext 6-3181\n\nFax: (511) 512-0492\n\n​\n\nWebsite: **www.southerncoppercorp.com**\n\nEmail address: **southerncopper@southernperu.com.pe**\n\n​\n\n190\n\n[Table of Contents](#TOC)\n\n​"}