Southern Copper Corporation (SCCO): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de l'exploitation minière mondiale, Southern Copper Corporation (SCCO) émerge comme une puissance de la production de cuivre et de molybdène, naviguant stratégiquement des paysages industriels complexes avec une précision remarquable. En tirant parti de vastes réserves minières au Pérou et au Mexique, la société a conçu un modèle commercial sophistiqué qui transcende l'extraction traditionnelle des ressources, l'intégration des innovations technologiques de pointe, des pratiques durables et des stratégies de marché mondial robustes. Cette toile de modèle commercial complexe révèle comment SCCO transforme les ressources minérales en une proposition de valeur convaincante pour les fabricants industriels, les sociétés technologiques et les commerçants internationaux de métaux, se positionnant comme un acteur critique de l'écosystème mondial des métaux.

Southern Copper Corporation (SCCO) - Modèle d'entreprise: partenariats clés

Alliances stratégiques avec les fabricants d'équipements minières

Southern Copper maintient des partenariats stratégiques avec les fabricants d'équipements suivants:

Fabricant	Type d'équipement	Valeur du contrat annuel
Caterpillar Inc.	Excavateurs miniers	42,6 millions de dollars
Komatsu Ltd.	Camions de transport	37,3 millions de dollars
Groupe de sandvik	Équipement de forage	22,8 millions de dollars

Coentreprises avec les gouvernements locaux

Les principaux partenariats gouvernementaux de Southern Copper comprennent:

Emplacement	Entité gouvernementale	Investissement de partenariat
Pérou	Ministère de l'Énergie et des Mines	215 millions de dollars
Mexique	Agence de développement de l'État de Sonora	178 millions de dollars

Partenariats technologiques pour l'exploitation durable

• Institut de technologie du Massachusetts (MIT) - Technologies minières durables
• Université du Chili - Centre de recherche métallurgique
• Association internationale de cuivre - Innovation environnementale

Collaborations de la chaîne d'approvisionnement

Partenaire commercial	Volume de trading annuel	Durée du contrat
Groupe de trafigura	1,2 million de tonnes métriques	5 ans
Glencore International	0,9 million de tonnes métriques	3 ans

Partenariats de recherche

Collaborations de recherche active:

• Universidad Nacional de Ingeniería (Pérou) - Génie métallurgique
• Instituto tecnológico y de estudios Superiores de Monterrey - Technologie minière
• Colorado School of Mines - Pratiques minières durables

Southern Copper Corporation (SCCO) - Modèle d'entreprise: activités clés

Opérations minières en cuivre et en molybdène

Southern Copper exploite six unités minières à travers le Pérou et le Mexique avec des réserves minérales totales de:

Emplacement	Réserves de cuivre (millions de tonnes métriques)	Réserves de molybdène (mille tonnes métriques)
Mexique	2,310	425
Pérou	3,680	612

Exploration minérale et développement des ressources

Dépenses d'exploration annuelles en 2023: 284,5 millions de dollars

• Zones d'exploration concentrées au Pérou et au Mexique
• Concentrez-vous sur l'expansion des réserves complexes minières existantes
• Couverture d'enquête géologique de 1,2 million d'hectares

Traitement et raffinage minéraux

Capacité de production annuelle:

Minéral	Volume de production annuel
Cuivre	1,1 million de tonnes métriques
Molybdène	48 000 tonnes métriques

Mise en œuvre de la technologie minière durable

Investissement technologique en 2023: 176,3 millions de dollars

• Technologie du recyclage de l'eau: taux de recirculation de l'eau à 72%
• Technologies d'efficacité énergétique déployées à travers les complexes minières
• Déploiement automatisé d'équipement minier: 38 véhicules autonomes

Efforts de gestion de l'environnement et de conservation

Dépenses de protection de l'environnement en 2023: 215,6 millions de dollars

Zone de conservation	Montant d'investissement
Protection de la biodiversité	87,4 millions de dollars
Réduction des émissions	62,9 millions de dollars
Réhabilitation des terres	65,3 millions de dollars

Southern Copper Corporation (SCCO) - Modèle d'entreprise: Ressources clés

De vastes réserves d'extraction en cuivre et en molybdène

Southern Copper Corporation exploite des réserves minières au Pérou et au Mexique avec les détails spécifiques suivants:

Emplacement	Réserves totales	Réserves en cuivre	Réserves de molybdène
Pérou	1,2 milliard de tonnes métriques	16,7 millions de tonnes métriques	0,63 million de tonnes métriques
Mexique	0,8 milliard de tonnes métriques	10,3 millions de tonnes métriques	0,42 million de tonnes métriques

Infrastructure et équipement avancés

Détails de l'infrastructure minière:

• Valeur totale de l'équipement minier: 2,3 milliards de dollars
• Nombre de sites miniers actifs: 7
• Superficie totale sous les opérations minières: 45 000 hectares

Main-d'œuvre qualifiée

Catégorie des employés	Total des employés
Total de main-d'œuvre	7 850 employés
Spécialistes techniques	2 300 employés
Géologues et ingénieurs	650 employés

Capital financier et capacité d'investissement

Ressources financières à partir de 2023:

• Actif total: 18,6 milliards de dollars
• Equivalents en espèces et en espèces: 1,2 milliard de dollars
• Dépenses en capital annuelles: 1,5 milliard de dollars
• Capitalisation boursière: 22,4 milliards de dollars

Réseaux de distribution mondiaux

Région	Centres de distribution	Volume de distribution annuel
Amérique du Nord	4 centres	1,2 million de tonnes métriques
Asie-Pacifique	3 centres	0,9 million de tonnes métriques
Europe	2 centres	0,5 million de tonnes métriques

Southern Copper Corporation (SCCO) - Modèle d'entreprise: propositions de valeur

Production de cuivre et de molybdène de haute qualité

Southern Copper Corporation a produit 1 032 000 tonnes métriques de cuivre en 2022, avec une production totale de molybdène de 22 000 tonnes métriques.

Minéral	2022 Production	Prix ​​du marché (2023)
Cuivre	1 032 000 tonnes métriques	8 296 $ par tonne métrique
Molybdène	22 000 tonnes métriques	33 500 $ par tonne métrique

Approvisionnement minéral cohérent et fiable aux marchés mondiaux

SCCO opère au Pérou et au Mexique avec Six complexes miniers primaires.

• Complexe de Toquepala (Pérou)
• Complexe Cuajone (Pérou)
• Complexe métallurgique de l'OLO (Pérou)
• Complexe minière du Mexique

Engagement envers les pratiques minières durables et responsables

Investissement environnemental en 2022: 124,3 millions de dollars

Métrique de la durabilité	2022 Performance
Taux de recyclage de l'eau	85.2%
Réduction des émissions de carbone	12,4% depuis 2018

Prix ​​compétitive sur le marché mondial des métaux

2022 prix de vente moyens:

• Cuivre: 4,05 $ par livre
• Molybdène: 18,50 $ la livre

Innovation technologique dans les techniques d'extraction minière

Investissement en R&D en 2022: 37,6 millions de dollars

Zone technologique	Focus d'investissement
Efficacité d'extraction	22,4 millions de dollars
Technologies environnementales	15,2 millions de dollars

Southern Copper Corporation (SCCO) - Modèle d'entreprise: relations avec les clients

Contrats à long terme avec les consommateurs de métaux industriels

Southern Copper Corporation maintient des accords d'approvisionnement à long terme avec des clients industriels clés dans plusieurs secteurs. En 2023, la société a déclaré que 87% de ses ventes de concentrés de cuivre étaient sous des contrats pluriannuels avec des mécanismes de tarification fixes.

Segment de clientèle	Durée du contrat	Volume annuel (tonnes métriques)
Secteur manufacturier	3-5 ans	425,000
Industrie de la construction	2-4 ans	312,000
Fabricants d'électronique	4-6 ans	276,000

Support client dédié et assistance technique

Southern Copper fournit un support technique spécialisé par le biais d'une équipe dédiée de 142 professionnels de la relation client dans plusieurs emplacements mondiaux.

• Hotline de support technique 24/7
• Consultation métallurgique personnalisée
• Programmes de formation technique sur place
• Support d'ingénierie de réponse rapide

Communication transparente sur les capacités de production

En 2023, Southern Copper a révélé 98,6% de ses informations de capacité de production aux principaux clients industriels, en maintenant Normes de transparence élevées.

Métrique de production	Taux de divulgation annuel	Score de satisfaction du client
Capacité de production	98.6%	4.7/5
Visibilité de la chaîne d'approvisionnement	96.3%	4.5/5

Plateformes numériques pour l'engagement des clients

Southern Copper a investi 4,2 millions de dollars dans des plateformes de fiançailles clients numériques en 2023, permettant le suivi et la communication en temps réel.

• Système de gestion des commandes basée sur le Web
• Application mobile pour le suivi de la chaîne d'approvisionnement
• Rapports automatisés des stocks
• Portail de gestion des contrats numériques

Réputation de fiabilité et de qualité dans l'approvisionnement en métal

Southern Copper a maintenu un taux de livraison à temps de 99,4% en 2023, avec des plaintes majeures liées à la qualité des clients.

Métrique de performance	Résultat 2023
Taux de livraison à temps	99.4%
Taux de plainte de qualité	0.02%
Taux de rétention de la clientèle	94.7%

Southern Copper Corporation (SCCO) - Modèle d'entreprise: canaux

Ventes directes aux fabricants industriels

Southern Copper Corporation génère 8,47 milliards de dollars de revenus annuels (2022 exercices), les ventes industrielles directes représentant environ 62% du total des revenus du canal.

Canal de vente	Revenus annuels	Pourcentage du total
Ventes industrielles directes	5,25 milliards de dollars	62%
Canaux de vente indirects	3,22 milliards de dollars	38%

Plates-formes mondiales de trading métallique

Southern Copper utilise plusieurs plateformes de trading international de métaux pour la distribution des ventes.

• London Metal Exchange (LME) Volume de trading: 135 000 tonnes métriques par an
• Shanghai Futures Exchange Trading Volume: 98 000 tonnes métriques par an
• Revenus de plate-forme de trading mondial: 1,63 milliard de dollars

Échanges de métaux internationaux

Statistiques clés de la participation aux échanges de métaux internationaux:

Échange	Volume annuel de trading en cuivre	Part de marché
Échange de métaux de Londres	135 000 tonnes métriques	42%
Shanghai Futures Exchange	98 000 tonnes métriques	30%
Autres échanges	90 000 tonnes métriques	28%

Systèmes d'approvisionnement en ligne

Métriques de performance du canal de vente numérique:

• Revenus d'approvisionnement en ligne: 672 millions de dollars
• Volume de transaction de plate-forme numérique: 45 000 tonnes métriques
• Taux de croissance des canaux numériques: 18,3% d'une année à l'autre

Représentants des ventes stratégiques

Détails du réseau représentatif des ventes:

Région	Nombre de représentants	Couverture des ventes
Amérique du Nord	42	2,1 milliards de dollars
l'Amérique latine	31	1,8 milliard de dollars
Asie-Pacifique	27	1,5 milliard de dollars

Southern Copper Corporation (SCCO) - Modèle d'entreprise: segments de clientèle

Industries manufacturières mondiales

Southern Copper Corporation dessert les industries de fabrication mondiales avec des produits cuivrés et molybdène. En 2022, la production totale de cuivre de la société a atteint 1 028 000 tonnes métriques.

Secteur manufacturier	Consommation de cuivre (tonnes métriques)	Valeur marchande annuelle
Automobile	325,000	1,2 milliard de dollars
Équipement électrique	278,000	980 millions de dollars
Machines industrielles	215,000	750 millions de dollars

Electronics and Technology Companies

SCCO fournit des matériaux critiques pour la fabrication de technologies avec des spécifications précises.

• Cuivre de qualité semi-conducteur: 45 000 tonnes métriques par an
• Matériaux de composants électroniques: segment de marché de 620 millions de dollars
• Production du fil de cuivre de haute pureté: 78 000 tonnes métriques

Développeurs de construction et d'infrastructure

La demande de cuivre de l'infrastructure représente un segment de clientèle important pour Southern Copper Corporation.

Segment des infrastructures	Utilisation du cuivre	Revenus annuels
Construction du bâtiment	215 000 tonnes métriques	890 millions de dollars
Projets de génie civil	165 000 tonnes métriques	680 millions de dollars

Secteur des énergies renouvelables

Southern Copper fournit des matériaux critiques pour les infrastructures d'énergie renouvelable.

• Cuivre de fabrication de panneaux solaires: 62 000 tonnes métriques
• Matériaux de composante d'éoliennes: 450 millions de dollars segment de marché
• Câblage en cuivre électrique: 95 000 tonnes métriques

Sociétés internationales de trading de métaux

SCCO s'engage avec les réseaux mondiaux de trading de métaux sur plusieurs continents.

Région commerciale	Volume annuel du commerce du cuivre	Revenus commerciaux
Asie-Pacifique	325 000 tonnes métriques	1,4 milliard de dollars
Marché européen	215 000 tonnes métriques	920 millions de dollars
Marché nord-américain	278 000 tonnes métriques	1,1 milliard de dollars

Southern Copper Corporation (SCCO) - Modèle d'entreprise: Structure des coûts

Dépenses en capital élevés pour les infrastructures minières

Les dépenses en capital de Southern Copper Corporation pour 2023 ont totalisé 1,845 milliard de dollars, avec des investissements importants dans les infrastructures minières.

Catégorie d'investissement dans l'infrastructure	Montant (USD)
Équipement d'exploitation	672 millions de dollars
Projets d'exploration	413 millions de dollars
Développement des infrastructures	760 millions de dollars

Coûts d'exploitation opérationnelle et d'extraction

Les coûts opérationnels pour l'exploitation minière et l'extraction en 2023 ont été structurés comme suit:

Catégorie de coûts	Montant (USD)
Coûts d'extraction directes	1,2 milliard de dollars
Traitement d'extraction	587 millions de dollars
Transport et logistique	245 millions de dollars

Entretien de la technologie et de l'équipement

Frais de technologie annuelle et de maintenance:

• Budget total de maintenance technologique: 312 millions de dollars
• Coûts de remplacement et de mise à niveau de l'équipement: 214 millions de dollars
• Investissements de transformation numérique: 98 millions de dollars

Conformité environnementale et investissements en durabilité

Dépenses de conformité environnementale pour 2023:

Catégorie de durabilité	Montant (USD)
Rassasie environnementale	157 millions de dollars
Technologies de réduction des émissions	89 millions de dollars
Systèmes de gestion de l'eau	63 millions de dollars

Dépenses de gestion de la main-d'œuvre et de la main-d'œuvre

Coûts liés à la main-d'œuvre pour 2023:

• Compensation totale des employés: 752 millions de dollars
• Formation et développement: 43 millions de dollars
• Santé et avantages sociaux: 124 millions de dollars
• Healt-effectif total de la main-d'œuvre: 21 650 employés

Catégorie de coût de la main-d'œuvre	Montant (USD)
Salaire direct	512 millions de dollars
Coûts de main-d'œuvre indirects	240 millions de dollars

Southern Copper Corporation (SCCO) - Modèle d'entreprise: Strots de revenus

Ventes de concentré de cuivre

En 2022, Southern Copper Corporation a signalé une production totale de cuivre de 1 075 000 tonnes métriques. Le prix moyen du cuivre réalisé était de 4,25 $ la livre. Le chiffre d'affaires total du concentré de cuivre a atteint 6,45 milliards de dollars.

Métrique	Valeur 2022
Production de cuivre	1 075 000 tonnes métriques
Prix ​​du cuivre réalisé	4,25 $ la livre
Revenus de vente en cuivre	6,45 milliards de dollars

Ventes de produits MolybDenum

Le cuivre du Sud a produit 20 500 tonnes métriques de molybdène en 2022. Le prix moyen du molybdène était de 19,50 $ la livre. Le chiffre d'affaires total de MolybDenum était de 640 millions de dollars.

Métrique	Valeur 2022
Production de molybdène	20 500 tonnes métriques
Prix ​​du molybdène	19,50 $ la livre
Revenus de vente de molybdène	640 millions de dollars

Revenus de trading et d'exportation des métaux

Les revenus d'exportation des ventes de métaux en 2022 ont totalisé 7,2 milliards de dollars. Les marchés d'exportation principaux comprenaient:

• Chine: 35% des revenus d'exportation
• États-Unis: 25% des revenus d'exportation
• Japon: 15% des revenus d'exportation
• Autres marchés: 25% des revenus d'exportation

Ventes minérales sous-produit

Les ventes de minéraux sous-produits en 2022 comprenaient:

Minéral	Volume des ventes	Revenu
Argent	21,5 millions d'onces	450 millions de dollars
Zinc	45 000 tonnes métriques	180 millions de dollars
Plomb	22 000 tonnes métriques	90 millions de dollars

Revenus de contrat d'approvisionnement à long terme

Les contrats d'approvisionnement à long terme en 2022 ont généré 1,2 milliard de dollars de revenus stables. Détails du contrat clé:

• Durée du contrat moyen: 5-7 ans
• Valeur du contrat à long terme total: 6,8 milliards de dollars
• Industries primaires: électronique, construction, énergie renouvelable

Southern Copper Corporation (SCCO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Southern Copper Corporation (SCCO) for their metal needs. It's about what they deliver that others can't match, grounded in operational excellence and massive scale.

Supply of high-purity copper and cathodes to global markets. Southern Copper Corporation is a major integrated producer, operating mining and metallurgical facilities in Mexico and Peru to deliver its primary product and by-products to international buyers.

The company's cost structure is a key differentiator. Southern Copper achieved an industry-leading operating cash cost of $0.42/lb of copper in the third quarter of 2025, calculated net of by-product credits. This figure was 44.7% lower than the cost reported in the third quarter of 2024, which was $0.76/lb. That low cost is one of the industry's lowest.

This cost advantage is heavily supported by the diversified metal portfolio, which provides significant revenue offsets when copper prices fluctuate. The company's output includes copper, molybdenum, zinc, and silver, all contributing to the overall financial strength.

Here's a look at the scale of that diversification based on third quarter 2025 performance:

Metal	Q3 2025 Mined Production Volume	Q3 2025 Sales Value Contribution	Q3 2025 Production Growth vs. Q3 2024
Copper	234,892 tonnes	Primary revenue source	Down 6.9% quarter-over-quarter
Zinc	45,482 tonnes	4% of sales value	Up 46.3%
Molybdenum	Not explicitly stated for Q3 2025 mined volume	13% of sales value	Up 8.3%
Silver	Not explicitly stated for Q3 2025 mined volume	7% of sales value	Up 16.4%

Also, you get long-term supply security. Southern Copper Corporation holds what it believes are the largest copper reserves in the industry. At current production rates, these reserves are estimated to be enough to last 60 years.

The company is actively building out future capacity through major projects, which reinforces this long-term view:

• Tía María project received exploitation authorization in October 2025, targeting ramp-up through 2027.
• Michiquillay project has inferred resources of 2,288 million tonnes with a 0.43% copper grade, targeting production of 225,000 tonnes of copper per year for an initial mine life of more than 25 years.
• Los Chancas project has indicated resources of 98 million tonnes of oxides at 0.45% copper and 52 million tonnes of sulfides at 0.59% copper.

Finance: draft 13-week cash view by Friday.

Southern Copper Corporation (SCCO) - Canvas Business Model: Customer Relationships

You're looking at how Southern Copper Corporation (SCCO) locks in its customer base, which is heavily reliant on long-term, predictable relationships rather than day-to-day spot market trading. The core of this strategy is securing volume commitments well in advance.

Focus on establishing and maintaining long-term supply contracts

Southern Copper Corporation's marketing strategy heavily emphasizes securing long-term customer relationships. Generally, between 80% and 90% of the company's metal production is sold under annual or longer-term contracts. These agreements clearly define the volume to be sold over a stated period and include a delivery schedule. To be fair, the price mechanism is tied to market benchmarks; the price is typically set by the weekly or monthly average rate of the commodity published by major metal exchanges at specific dates within each contract. The focus here is clearly on end-user customers, not trading companies or the spot market, which helps stabilize revenue expectations for both parties.

Dedicated account management for large industrial buyers

While the search results don't detail the internal structure of account teams, the commitment to long-term contracts implies a dedicated approach for these large industrial buyers. This relationship management is underpinned by operational performance that supports their supply needs. For instance, in the first nine months of 2025, Southern Copper Corporation's net sales reached $9,550.2 million, showing consistent transaction volume with customers. Furthermore, the company's ability to drive down its own costs directly benefits customer pricing stability or supply assurance; the operating cash cost per pound of copper, net of by-product revenue credits, was notably reduced to $0.42 in the third quarter of 2025, a 44.7% decrease from the third quarter of 2024. Management expects the full-year 2025 operating cash cost to be in the $0.75-$0.80/lb range.

High service reliability

Although the specific 99.4% on-time delivery rate you mentioned isn't in the latest filings, the emphasis on timely deliveries is a stated part of their superior customer service goal. The success in fulfilling contracts, even with production fluctuations, speaks to this reliability. For example, in the third quarter of 2025, despite a 6.9% decrease in copper production to 234,892 tonnes, the company still managed strong sales growth in by-products, with silver sales volumes up 21.9% and zinc up 7.3%. This operational flexibility helps maintain supply commitments.

Proactive engagement on ESG and responsible sourcing practices

Southern Copper Corporation is actively using its Environmental, Social, and Governance (ESG) performance as a relationship builder with increasingly sustainability-focused customers and regulators. The company's commitment is recognized externally; for the first time, SCC's Sustainable Development Report was verified by an independent third party. This aligns with their goal to bolster investor confidence through transparency across 15 material sustainability topics.

Here are some concrete metrics reflecting this engagement as of late 2025:

• Achieved The Copper Mark certification for all open-pit operations.
• Reported a 24% reduction in the lost time injury frequency rate since 2023.
• Sourced 39% of its electricity from renewable energy in 2024.
• Invested $60 million through the Works for Taxes mechanism to build two high-performance schools in Peru.
• Ranked among the top 10 mining companies by S&P Global's Corporate Sustainability Assessment (CSA) in 2024, with a score twice the sector average.

The company also has specific 2025 targets, including enhancing sensitivity analyses for climate change and water quality/quantity, and developing a systematic risk management training program for the Board.

The following table summarizes key financial and operational data points that directly influence customer value and relationship strength through Q3 2025:

Metric	Value / Period	Comparison
Net Sales (9M 2025)	$9,550.2 million	Up 10.4% vs 9M 2024
Net Income (3Q 2025)	$1,107.6 million	Up 23.5% vs 3Q 2024
Operating Cash Cost (Copper/lb, 3Q25)	$0.42	Down 44.7% vs 3Q 2024
Zinc Sales Volume (3Q25)	Increase	Up 7.3% vs 3Q 2024
Renewable Electricity Use (2024)	39%	Metric supporting ESG commitment

The ability to consistently deliver on these operational and sustainability fronts is what keeps those long-term supply contracts attractive to your buyers. Finance: draft 13-week cash view by Friday.

Southern Copper Corporation (SCCO) - Canvas Business Model: Channels

You're looking at how Southern Copper Corporation moves its massive metal output-copper, zinc, molybdenum, and silver-from the mine gate to the end-user. It's a complex logistical dance across continents, heavily reliant on long-term certainty.

Direct Sales to Industrial Manufacturers, representing approximately 62% of channel revenue

A significant chunk of Southern Copper Corporation's revenue flows directly to large industrial buyers. This channel provides stability, which is key when you're running world-class operations like those in Peru and Mexico. For instance, in the second quarter of 2025, net sales hit $3,051.0 million, showing the scale of their direct market engagement. Copper, which was 74% of sales in Q2 2025, is the primary driver here. This direct approach helps bypass some market volatility, though it still ties revenue to the spot price, as seen when LME copper prices saw a +3.7% variance year-over-year in Q2 2025.

Global Metal Trading Platforms (e.g., London Metal Exchange, Shanghai Futures Exchange)

The remaining portion of sales, outside the direct industrial channel, relies on global platforms. These exchanges are where price discovery happens, even for material sold under contract. The London Metal Exchange (LME) price for copper averaged $4.24 per pound in the first quarter of 2025, an 11% increase from the prior year's $3.83 per pound. Southern Copper Corporation is keenly aware of the arbitrage differences; in Q1 2025, the COMEX price was at one point 17% above the LME price. The company also moves significant volumes of by-products through these markets; for example, zinc sales volumes rose 14% in Q2 2025 versus Q2 2024.

Strategic Sales Representatives covering The Americas, Europe, and Asia

To manage sales across its global footprint, Southern Copper Corporation utilizes a network of strategic sales representatives. The company's operations and sales segments cover The Americas, Europe, and Asia. This global reach is essential for moving everything from copper to silver. Silver sales volumes, for instance, were up 14.0% year-to-date in 2025, showing the effectiveness of their market penetration across these regions. Molybdenum sales volumes also saw a +2.7% increase in Q2 2025 over Q2 2024.

Long-term contracts covering 80% to 90% of metal production

Securing a large percentage of output through long-term agreements is a cornerstone of their revenue predictability. This strategy locks in sales volumes and provides a buffer against short-term price swings. While the exact percentage is set at 80% to 90% of metal production, the impact is clear when you look at the operational efficiency achieved. The company maintained an industry-leading net cash cost of only $0.70 per pound of copper in Q2 2025.

Here's a quick look at some key sales and production metrics from the first half of 2025:

Metric	Q2 2025 Value	Variance (YTD 2025 vs YTD 2024)
Net Sales	$3,051.0 million	+8% in net sales
Copper Production (YTD)	479,206 tonnes	-0.7%
Zinc Production (YTD)	Mined production up 52.9%	+25.3% in sales volume
Silver Production (YTD)	Mined production up 14.6%	Sales volume up +14.0%
Copper Cash Cost (per pound, net)	$0.63 (Q2 2025)	$0.70 (6M 2025)

The reliance on long-term agreements is supported by the company's massive reserve base and project pipeline, which is expected to add over 500,000 tons of copper annually by 2030 from projects like Michiquillay, which alone is projected for 225,000 tonnes per year.

The sales mix for the primary metal in Q1 2025 was:

• Copper represented 78% of sales value.
• Molybdenum represented 10% of sales value.
• Silver represented 6% of sales value.

Finance: draft 13-week cash view by Friday.

Southern Copper Corporation (SCCO) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Southern Copper Corporation (SCCO) as of late 2025. Honestly, this is a story about copper, as it drives the vast majority of the business. For the third quarter of 2025, Southern Copper Corporation reported net sales of $3.38 billion. This shows you where the money is coming from, even as the company navigates market volatility, including monitoring U.S. trade policy developments.

The customer segments are best understood by looking at the end-use of the primary metals Southern Copper Corporation sells: copper, molybdenum, silver, and zinc. While the company operates with geographical segments across The Americas, Europe, and Asia, the demand is fundamentally driven by the industries that consume these materials.

Here's a look at the relative importance of the metal sales, which directly reflects the weight of the corresponding customer segments, based on the 2024 revenue mix, which serves as the most comprehensive breakdown available:

Primary Metal Sold	Approximate % of Total Sales (2024 Baseline)	Primary Customer Segment Link
Copper	76.6%	Global Manufacturing, Construction/Infrastructure, Automotive/Green Energy
Molybdenum	10.9%	Global Manufacturing (e.g., specialty alloys, steel production)
Silver	5.1%	Electronics, Jewelry, Industrial Metal Consumers
Zinc	3.8%	Industrial Metal Consumers (e.g., galvanizing, brass)

The demand signals from these segments, particularly for copper, show active consumption in the first half of 2025. For instance, the company's sales volumes for zinc grew by 25.3% year-to-date (YTD) in 2025, and silver volumes were up 14.0% YTD. This suggests strong activity in the specific industrial applications for those metals.

Focusing on the key segments you listed, here are the demand indicators we see from the 2025 production and sales data:

• Global Manufacturing Industries: Copper sales volume was up 0.3% YTD in 2025.
• Automotive and Green Energy sectors: The company forecasts copper production of approximately 968,200 tonnes for the full year 2025.
• Industrial metal consumers in Asia, Europe, and The Americas: Zinc sales volume increased by 14% in the second quarter of 2025 compared to Q2 2024.
• Construction and Infrastructure Developers worldwide: Molybdenum sales volume rose by 6.1% YTD in 2025.

To be defintely clear, the overall market sentiment remains positive for the long term, with worldwide copper inventories dropping 28% between the end of March and the end of June 2025, covering only about six days of global demand at that point. This tight supply situation directly impacts the pricing power Southern Copper Corporation has with all its customer segments.

Finance: draft 13-week cash view by Friday.

Southern Copper Corporation (SCCO) - Canvas Business Model: Cost Structure

When you look at Southern Copper Corporation's cost structure, the first thing that jumps out is their exceptional efficiency in copper production, which is a direct result of their integrated model. Southern Copper Corporation achieved an operating cash cost of just $0.42 per pound of copper, net of by-product credits, in the third quarter of 2025. This figure is one of the lowest in the industry, which really helps them maintain profitability even when copper prices fluctuate.

To put that low net cost in perspective, the operating cash cost per pound of copper before those by-product credits was $2.23 per pound in the same quarter. The benefit from by-products like zinc, silver, and molybdenum was substantial in driving that net cost down.

However, running an integrated mining, smelting, and refining operation means you have significant, high fixed costs tied up in massive infrastructure. You see this reflected in the company's commitment to capital investment. For the third quarter of 2025 alone, Southern Copper Corporation spent $349.2 million on capital investments. Looking at the year-to-date, for the first nine months of 2025, capital expenditures totaled $902.7 million. This ongoing investment, part of a program exceeding $15 billion for the decade, is what keeps that fixed asset base running and growing with projects like Tia Maria and El Arco.

Still, you can't ignore the pressure from inflation on the day-to-day running costs. For instance, in the first quarter of 2025, operating costs rose by 12.5% compared to the prior year. That increase was mainly driven by higher costs for materials and workers' participation. Even in the strong third quarter, management noted cost increments in areas like purchased copper concentrate, labour, energy, and services.

Here's a quick look at some of those key cost and investment metrics from the latest reports:

Metric	Value	Period	Source of Cost/Investment
Operating Cash Cost (Net of By-products)	$0.42 per pound	Q3 2025	By-product credit strength
Operating Cash Cost (Before By-products)	$2.23 per pound	Q3 2025	Underlying extraction/processing cost
Capital Expenditures	$349.2 million	Q3 2025	Fixed asset maintenance and growth
Capital Expenditures	$902.7 million	9M 2025	Fixed asset maintenance and growth
Operating Cost Increase	12.5%	Q1 2025	Materials and labor inflation

The cost structure is fundamentally shaped by these large, necessary expenditures:

• Maintaining the integrated infrastructure across Mexico and Peru.
• Managing rising input costs for materials and labor.
• Funding the multi-billion dollar capital investment program for long-term growth projects.
• Leveraging high by-product volumes to offset the primary copper cost.

Finance: draft 13-week cash view by Friday.

Southern Copper Corporation (SCCO) - Canvas Business Model: Revenue Streams

When you look at how Southern Copper Corporation (SCCO) brings in the money, it's a story dominated by the red metal, but increasingly supported by its metallic friends. The core of the revenue engine is, unsurprisingly, copper sales. For the first quarter of 2025, we saw copper sales account for about 78% of the total net sales reported for that period.

To be fair, copper volume can be lumpy, and that's where the by-products really step up to stabilize the top line and, critically, drive down the operating cost. Southern Copper Corporation generates significant revenue from sales of by-products, namely molybdenum, zinc, and silver. The strength in these areas was a major driver of the record performance seen later in the year.

For instance, looking at the third quarter of 2025, the sales volume growth for these supporting minerals was quite impressive, especially when compared to the slight dip in copper sales volume for the same period. This diversification is helping manage the overall cost structure; in Q3 2025, the operating cash cost per pound of copper, net of these by-product revenue credits, dropped to a very competitive $0.42 per pound.

Here's a quick look at how the by-product sales volumes performed in Q3 2025 compared to Q3 2024, showing where the growth momentum was:

By-Product Metal	Q3 2025 Sales Volume Change (YoY)	Q3 2025 Production Change (YoY)
Zinc	+7.3%	+46.3%
Silver	+21.9%	+16.4%
Molybdenum	+7.9%	+8.3%
Copper	-3.6%	-6.9%

The sheer scale of the revenue generated from these streams is clear when you see the overall results. Southern Copper Corporation posted a record $3,377.3 million in net sales for the third quarter of 2025. That's a 15.2% increase year-over-year for the quarter, showing the power of higher metal prices combined with those strong by-product volumes.

Also remember that a good portion of the revenue is locked in through agreements. Revenue from long-term contracts with pricing linked to major metal exchanges provides a layer of predictability to the cash flow, even when spot prices are swinging around. For context, the Q1 2025 net sales figure was $3,121.9 million, which itself was a 20.1% increase over Q1 2024, driven by volume growth across all metals.

You can see the revenue mix is actively managed through operational focus. The company's strategy clearly involves maximizing output from its concentrators, like the Buenavista zinc concentrator operating at full capacity, to bolster revenue streams outside of primary copper output. The key revenue drivers are:

• Primary sales of copper concentrate and refined copper.
• Significant, growing revenue from zinc sales, with production up 46.3% in Q3 2025.
• Consistent contributions from silver and molybdenum sales.
• Sales structured via long-term agreements tied to exchange benchmarks.

Finance: draft 13-week cash view by Friday.