Southern Copper Corporation (SCCO): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da mineração global, a Southern Copper Corporation (SCCO) surge como uma potência da produção de cobre e molibdênio, navegando estrategicamente paisagens industriais complexas com precisão notável. Ao alavancar extensas reservas de mineração no Peru e no México, a empresa criou um modelo de negócios sofisticado que transcende a extração tradicional de recursos, integrando inovações tecnológicas de ponta, práticas sustentáveis ​​e estratégias robustas de mercado global. Esse modelo de modelo de negócios intrincado revela como a SCCO transforma os recursos minerais em uma proposta de valor convincente para fabricantes industriais, empresas de tecnologia e comerciantes internacionais de metal, se posicionando como um participante crítico no ecossistema de metais globais.

Southern Copper Corporation (SCCO) - Modelo de Negócios: Principais Parcerias

Alianças estratégicas com fabricantes de equipamentos de mineração

O sul de cobre mantém parcerias estratégicas com os seguintes fabricantes de equipamentos:

Fabricante	Tipo de equipamento	Valor anual do contrato
Caterpillar Inc.	Escavadeiras de mineração	US $ 42,6 milhões
Komatsu Ltd.	Caminhões de transporte	US $ 37,3 milhões
Grupo Sandvik	Equipamento de perfuração	US $ 22,8 milhões

Joint ventures com governos locais

As principais parcerias governamentais do sul de cobre incluem:

Localização	Entidade governamental	Investimento em parceria
Peru	Ministério da Energia e Minas	US $ 215 milhões
México	Agência de Desenvolvimento do Estado da Sonora	US $ 178 milhões

Parcerias tecnológicas para mineração sustentável

• Instituto de Tecnologia de Massachusetts (MIT) - Tecnologias de Mineração Sustentável
• Universidade do Chile - Centro de Pesquisa Metalúrgica
• Associação Internacional de Copper - Inovação Ambiental

Colaborações da cadeia de suprimentos

Parceiro comercial	Volume de negociação anual	Duração do contrato
Grupo Trafigura	1,2 milhão de toneladas métricas	5 anos
Glencore International	0,9 milhão de toneladas	3 anos

Parcerias de pesquisa

Colaborações de pesquisa ativa:

• Universidade Nacional de Ingeniería (Peru) - Engenharia Metalúrgica
• Instituto Tecnológico y de Estudios Superiores de Monterrey - Tecnologia de Mineração
• Escola de Minas do Colorado - Práticas de Mineração Sustentável

Southern Copper Corporation (SCCO) - Modelo de negócios: Atividades -chave

Operações de mineração de cobre e molibdênio

O sul de cobre opera seis unidades de mineração no Peru e no México com reservas minerais totais de:

Localização	Reservas de cobre (milhão de toneladas)	Reservas de molibdênio (mil toneladas métricas)
México	2,310	425
Peru	3,680	612

Exploração mineral e desenvolvimento de recursos

Despesas de exploração anuais em 2023: US $ 284,5 milhões

• Áreas de exploração concentradas no Peru e no México
• Concentre -se na expansão de reservas complexas de mineração existentes
• Cobertura da pesquisa geológica de 1,2 milhão de hectares

Processamento e refino minerais

Capacidade anual de produção:

Mineral	Volume anual de produção
Cobre	1,1 milhão de toneladas métricas
Molibdênio	48.000 toneladas métricas

Implementação de tecnologia de mineração sustentável

Investimento de tecnologia em 2023: US $ 176,3 milhões

• Tecnologia de reciclagem de água: 72% de taxa de recirculação de água
• Tecnologias de eficiência energética implantadas em complexos de mineração
• Implantação automatizada de equipamentos de mineração: 38 veículos autônomos

Esforços de gestão e conservação ambiental

Despesas de proteção ambiental em 2023: US $ 215,6 milhões

Área de conservação	Valor do investimento
Proteção à biodiversidade	US $ 87,4 milhões
Redução de emissões	US $ 62,9 milhões
Reabilitação da terra	US $ 65,3 milhões

Southern Copper Corporation (SCCO) - Modelo de negócios: Recursos -chave

Reservas extensas de mineração de cobre e molibdênio

A Southern Copper Corporation opera reservas de mineração no Peru e no México com os seguintes detalhes específicos:

Localização	Reservas totais	Reservas de cobre	Reservas de molibdênio
Peru	1,2 bilhão de toneladas métricas	16,7 milhões de toneladas métricas	0,63 milhão de toneladas
México	0,8 bilhão de toneladas métricas	10,3 milhões de toneladas métricas	0,42 milhão de toneladas

Infraestrutura e equipamento avançados de mineração

Detalhes da infraestrutura de mineração:

• Valor total do equipamento de mineração: US $ 2,3 bilhões
• Número de sites de mineração ativa: 7
• Área total da terra sob operações de mineração: 45.000 hectares

Força de trabalho qualificada

Categoria de funcionários	Total de funcionários
Força de trabalho total	7.850 funcionários
Especialistas técnicos	2.300 funcionários
Geólogos e engenheiros	650 funcionários

Capital financeiro e capacidade de investimento

Recursos Financeiros a partir de 2023:

• Total de ativos: US $ 18,6 bilhões
• Caixa e equivalentes em dinheiro: US $ 1,2 bilhão
• Despesas com capital anual: US $ 1,5 bilhão
• Capitalização de mercado: US $ 22,4 bilhões

Redes de distribuição global

Região	Centros de distribuição	Volume anual de distribuição
América do Norte	4 centros	1,2 milhão de toneladas métricas
Ásia-Pacífico	3 centros	0,9 milhão de toneladas
Europa	2 centros	0,5 milhão de toneladas

Southern Copper Corporation (SCCO) - Modelo de Negócios: Proposições de Valor

Produção de cobre e molibdênio de alta qualidade

A Southern Copper Corporation produziu 1.032.000 toneladas de cobre em 2022, com uma produção total de molibdênio de 22.000 toneladas.

Mineral	2022 Produção	Preço de mercado (2023)
Cobre	1.032.000 toneladas métricas	US $ 8.296 por tonelada
Molibdênio	22.000 toneladas métricas	US $ 33.500 por tonelada

Suprimento mineral consistente e confiável para os mercados globais

A SCCO opera no Peru e no México com Seis complexos de mineração primários.

• Complexo Toquepala (Peru)
• Complexo CuaJone (Peru)
• ILO Complexo metalúrgico (Peru)
• Complexo de mineração do México

Compromisso com práticas de mineração sustentáveis ​​e responsáveis

Investimento ambiental em 2022: US $ 124,3 milhões

Métrica de sustentabilidade	2022 Performance
Taxa de reciclagem de água	85.2%
Redução de emissões de carbono	12,4% desde 2018

Preços competitivos no mercado de metais globais

2022 Preços médios de venda:

• Cobre: ​​US $ 4,05 por libra
• Molibdênio: US $ 18,50 por libra

Inovação tecnológica em técnicas de extração de mineração

Investimento de P&D em 2022: US $ 37,6 milhões

Área de tecnologia	Foco de investimento
Eficiência de extração	US $ 22,4 milhões
Tecnologias ambientais	US $ 15,2 milhões

Southern Copper Corporation (SCCO) - Modelo de Negócios: Relacionamentos do Cliente

Contratos de longo prazo com consumidores de metais industriais

A Southern Copper Corporation mantém acordos de fornecimento de longo prazo com clientes industriais importantes em vários setores. A partir de 2023, a empresa registrou 87% de suas vendas de concentrado de cobre estavam sob contratos de vários anos com mecanismos de preços fixos.

Segmento de clientes	Duração do contrato	Volume anual (toneladas métricas)
Setor de manufatura	3-5 anos	425,000
Indústria da construção	2-4 anos	312,000
Fabricantes de eletrônicos	4-6 anos	276,000

Suporte ao cliente dedicado e assistência técnica

O Southern Copper fornece suporte técnico especializado por meio de uma equipe dedicada de 142 profissionais de relacionamento com clientes em vários locais globais.

• 24/7 de suporte técnico Linha direta
• Consulta metalúrgica personalizada
• Programas de treinamento técnico no local
• Suporte de engenharia de resposta rápida

Comunicação transparente sobre recursos de produção

Em 2023, o sul de cobre divulgou 98,6% de suas informações de capacidade de produção para os principais clientes industriais, mantendo Altos padrões de transparência.

Métrica de produção	Taxa de divulgação anual	Pontuação de satisfação do cliente
Capacidade de produção	98.6%	4.7/5
Visibilidade da cadeia de suprimentos	96.3%	4.5/5

Plataformas digitais para envolvimento do cliente

A Southern Copper investiu US $ 4,2 milhões em plataformas de engajamento digital de clientes durante 2023, permitindo rastreamento e comunicação em tempo real.

• Sistema de gerenciamento de pedidos baseado na Web
• Aplicativo móvel para rastreamento da cadeia de suprimentos
• Relatórios de inventário automatizado
• Portal de Gerenciamento de Contratos Digital

Reputação de confiabilidade e qualidade no suprimento de metal

O Southern Copper manteve uma taxa de entrega de 99,4% no tempo em 2023, com zero grandes reclamações de clientes relacionadas à qualidade.

Métrica de desempenho	2023 resultado
Taxa de entrega no tempo	99.4%
Taxa de reclamação de qualidade	0.02%
Taxa de retenção de clientes	94.7%

Southern Copper Corporation (SCCO) - Modelo de Negócios: Canais

Vendas diretas para fabricantes industriais

A Southern Copper Corporation gera US $ 8,47 bilhões em receita anual (2022 ano fiscal), com vendas industriais diretas representando aproximadamente 62% da receita total do canal.

Canal de vendas	Receita anual	Porcentagem de total
Vendas industriais diretas	US $ 5,25 bilhões	62%
Canais de vendas indiretos	US $ 3,22 bilhões	38%

Plataformas globais de negociação de metal

O Southern Copper utiliza várias plataformas internacionais de negociação de metal para distribuição de vendas.

• London Metal Exchange (LME) Volume de negociação: 135.000 toneladas métricas anualmente
• Volume de negociação de troca de futuros de Xangai: 98.000 toneladas métricas anualmente
• Receita da plataforma de negociação global: US $ 1,63 bilhão

Intercâmbios internacionais de metal

Principais estatísticas de participação em troca de metal internacional:

Intercâmbio	Volume anual de negociação de cobre	Quota de mercado
London Metal Exchange	135.000 toneladas métricas	42%
Exchange de futuros de Xangai	98.000 toneladas métricas	30%
Outras trocas	90.000 toneladas métricas	28%

Sistemas de compras on -line

Métricas de desempenho do canal de vendas digitais:

• Receita de compras on -line: US $ 672 milhões
• Volume de transação da plataforma digital: 45.000 toneladas métricas
• Taxa de crescimento do canal digital: 18,3% ano a ano

Representantes estratégicos de vendas

Detalhes da rede representativa de vendas:

Região	Número de representantes	Cobertura de vendas
América do Norte	42	US $ 2,1 bilhões
América latina	31	US $ 1,8 bilhão
Ásia-Pacífico	27	US $ 1,5 bilhão

Southern Copper Corporation (SCCO) - Modelo de negócios: segmentos de clientes

Indústrias de Manufatura Globais

A Southern Copper Corporation atende indústrias de fabricação global com produtos de cobre e molibdênio. A partir de 2022, a produção total de cobre da empresa atingiu 1.028.000 toneladas métricas.

Setor de manufatura	Consumo de cobre (toneladas métricas)	Valor de mercado anual
Automotivo	325,000	US $ 1,2 bilhão
Equipamento elétrico	278,000	US $ 980 milhões
Máquinas industriais	215,000	US $ 750 milhões

Empresas eletrônicas e de tecnologia

A SCCO fornece materiais críticos para a fabricação de tecnologia com especificações precisas.

• Cobre semicondutores: 45.000 toneladas métricas anualmente
• Materiais de componentes eletrônicos: segmento de mercado de US $ 620 milhões
• Produção de fios de cobre de alta pureza: 78.000 toneladas métricas

Desenvolvedores de construção e infraestrutura

A demanda de cobre de infraestrutura representa um segmento significativo de clientes para a Southern Copper Corporation.

Segmento de infraestrutura	Uso de cobre	Receita anual
Construção de edifícios	215.000 toneladas métricas	US $ 890 milhões
Projetos de engenharia civil	165.000 toneladas métricas	US $ 680 milhões

Setor de energia renovável

O sul de cobre fornece materiais críticos para a infraestrutura de energia renovável.

• Painel solar Fabricação de cobre: ​​62.000 toneladas métricas
• Materiais de componentes da turbina eólica: segmento de mercado de US $ 450 milhões
• Fiação de cobre da grade elétrica: 95.000 toneladas métricas

Empresas internacionais de comércio de metal

A SCCO se envolve com redes globais de negociação de metais em vários continentes.

Região comercial	Volume anual de comércio de cobre	Receita de negociação
Ásia-Pacífico	325.000 toneladas métricas	US $ 1,4 bilhão
Mercado europeu	215.000 toneladas métricas	US $ 920 milhões
Mercado norte -americano	278.000 toneladas métricas	US $ 1,1 bilhão

Southern Copper Corporation (SCCO) - Modelo de negócios: estrutura de custos

Altos gastos de capital para infraestrutura de mineração

As despesas de capital da Southern Copper Corporation para 2023 totalizaram US $ 1,845 bilhão, com investimentos significativos em infraestrutura de mineração.

Categoria de investimento em infraestrutura	Quantidade (USD)
Equipamento de mineração	US $ 672 milhões
Projetos de exploração	US $ 413 milhões
Desenvolvimento de infraestrutura	US $ 760 milhões

Custos operacionais de mineração e extração

Os custos operacionais de mineração e extração em 2023 foram estruturados da seguinte forma:

Categoria de custo	Quantidade (USD)
Custos de mineração direta	US $ 1,2 bilhão
Processamento de extração	US $ 587 milhões
Transporte e logística	US $ 245 milhões

Manutenção de tecnologia e equipamento

Despesas anuais de tecnologia e manutenção:

• Orçamento total de manutenção de tecnologia: US $ 312 milhões
• Custos de substituição e atualização de equipamentos: US $ 214 milhões
• Investimentos de transformação digital: US $ 98 milhões

Investimentos de conformidade ambiental e sustentabilidade

Despesas de conformidade ambiental para 2023:

Categoria de sustentabilidade	Quantidade (USD)
Remediação ambiental	US $ 157 milhões
Tecnologias de redução de emissões	US $ 89 milhões
Sistemas de gerenciamento de água	US $ 63 milhões

Despesas de gerenciamento de mão -de -obra e força de trabalho

Custos relacionados à força de trabalho para 2023:

• Compensação total dos funcionários: US $ 752 milhões
• Treinamento e desenvolvimento: US $ 43 milhões
• Saúde e benefícios: US $ 124 milhões
• Total Workforce Headcount: 21.650 funcionários

Categoria de custo de mão -de -obra	Quantidade (USD)
Salários diretos	US $ 512 milhões
Custos trabalhistas indiretos	US $ 240 milhões

Southern Copper Corporation (SCCO) - Modelo de negócios: fluxos de receita

Vendas de concentrado de cobre

Em 2022, a Southern Copper Corporation relatou uma produção total de cobre de 1.075.000 toneladas. O preço médio do cobre realizado foi de US $ 4,25 por libra. A receita total de vendas de concentrado de cobre atingiu US $ 6,45 bilhões.

Métrica	2022 Valor
Produção de cobre	1.075.000 toneladas métricas
O preço do cobre foi realizado	US $ 4,25 por libra
Receita de vendas de cobre	US $ 6,45 bilhões

Vendas de produtos de molibdênio

O sul de cobre produziu 20.500 toneladas de molibdênio em 2022. O preço médio do molibdênio foi de US $ 19,50 por libra. A receita total de vendas de molibdênio foi de US $ 640 milhões.

Métrica	2022 Valor
Produção de molibdênio	20.500 toneladas métricas
Preço de molibdênio	US $ 19,50 por libra
Receita de vendas de molibdênio	US $ 640 milhões

Receitas de negociação e exportação de metal

As receitas de exportação de vendas de metal em 2022 totalizaram US $ 7,2 bilhões. Os mercados de exportação primários incluídos:

• China: 35% das receitas de exportação
• Estados Unidos: 25% das receitas de exportação
• Japão: 15% das receitas de exportação
• Outros mercados: 25% das receitas de exportação

Vendas minerais de subproduto

As vendas minerais de subproduto em 2022 incluíram:

Mineral	Volume de vendas	Receita
Prata	21,5 milhões de onças	US $ 450 milhões
Zinco	45.000 toneladas métricas	US $ 180 milhões
Liderar	22.000 toneladas métricas	US $ 90 milhões

Receita de contrato de fornecimento de longo prazo

Os contratos de fornecimento de longo prazo em 2022 geraram US $ 1,2 bilhão em receita estável. Detalhes do contrato -chave:

• Duração média do contrato: 5-7 anos
• Valor total do contrato de longo prazo: US $ 6,8 bilhões
• Indústrias primárias: eletrônica, construção, energia renovável

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.