SCCO

​ The following discussion provides information that management believes is relevant to an assessment and understanding of the condensed consolidated financial condition and results of operations of Southern Copper Corporation and its subsidiaries (collectively, “SCC”, “the Company”, “our”, and “we”). This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with the Management Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements included in Part II of our annual report on Form 10-K for the year ended December 31, 2025. ​ EXECUTIVE OVERVIEW ​ Business: Our business is primarily the production and sale of copper. In the process of producing copper, a number of valuable metallurgical by-products are recovered, which we also produce and sell. Market forces outside of our control largely determine the sale prices for our products. Our management, therefore, focuses on value creation through copper production, cost control, production enhancement and maintaining a prudent capital structure to remain profitable. We endeavor to achieve these goals through capital spending programs, exploration efforts and cost reduction programs. Our aim is to remain profitable during periods of low copper prices and to maximize financial performance in periods of high copper prices. ​ We are one of the world’s largest copper mining companies in terms of production and sales and our principal operations are in Peru and Mexico. We also have exploration programs in Chile and Argentina. In addition to copper, we produce significant amounts of other metals, either as a by-product of the copper process or through a number of dedicated mining facilities in Mexico. ​ Outlook: Various key factors will affect our outcome. These include, but are not limited to, the following: ​ ● Sales structure: In the second quarter of 2026, 72.7% of our revenue came from the sale of copper; 11.1% from molybdenum; 8.8% from silver; 3.5% from zinc; and 3.9% from other products, including gold, sulfuric acid, and other materials. ​ ● Copper: In the second quarter of 2026, copper prices per pound reported a strong performance. The LME price increased from $4.32 to $6.04 (+39.8%) and the COMEX price rose from $4.72 to $6.16 (+30.5%). Based on current supply and demand dynamics, we estimate a slight copper market deficit for 2026. Copper inventories worldwide stood at 1,125,000 tonnes as of July 17, 2026. We estimate that this inventory can currently cover approximately 15 days of global demand. ​ ● Molybdenum: Accounted for 11.1% of our sales in the second quarter of 2026, and became our most significant by-product during the period. Prices for molybdenum averaged $29.44 per pound in the second quarter of 2026, compared to $20.57 in the same period of 2025, representing a 43.1% increase. ​ Molybdenum is mainly used in the production of special alloys for stainless steel that require significant hardness, corrosion and heat resistance. New uses for this metal are associated with lubricants, sulfur filtering of heavy oils and shale gas production. ​ ● Silver: Represented 8.8% of our sales in the second quarter of 2026. Prices averaged $73.49 per ounce in the second quarter of 2026, compared to $33.62 in the same period of 2025 (+118.6%). We believe that industrial demand will strongly support silver prices. ​ ● Zinc: Average zinc prices increased 30.8% in the second quarter of 2026 versus the same period of 2025. Zinc represented 3.5% of our sales in the second quarter of 2026. ​ 41 Table of Contents ● Production: In 2026, we expect our copper production to reach 917,000 tonnes, which is 0.6% above our planned target of 911,400 tonnes. ​ Regarding by-products, we expect to produce 163,900 tonnes of zinc in 2026, which is 0.9% below our initial plan. We also expect to produce 27,900 tonnes of molybdenum in 2026, which represents an increase of 7% compared to our initial plan. For silver, we expect to comply with our plan to produce 24 million ounces of this metal. ​ ● Capital Investments: In the first six months of 2026, we spent $864.7 million on capital investments; this represented 26.6% of net income and an increase of 56.2% compared to the amount registered in the same period of 2025. ​ KEY MATTERS ​ Below, we discuss several matters that we believe are important to understand the results of our operations and financial condition. These matters include, (i) our earnings, (ii) our production, (iii) our “operating cash costs” as a measure of our performance, (iv) metal prices, (v) business segments, (vi) the effect of inflation and other local currency issues, and (vii) our capital investment and exploration program. ​ Earnings: The table below highlights key financial and operational data of our Company for the three-month and six-month periods ended June 30, 2026 and 2025 (in millions, except copper price, percentages and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ Six months ended June 30, ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ % Change ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ % Change ​ Copper price LME ​ ​ 6.04 ​ ​ 4.32 ​ ​ 1.72 ​ ​ ​ 39.8 % ​ ​ 5.94 ​ ​ 4.28 ​ ​ 1.66 ​ ​ ​ 38.8 % ​ Copper price COMEX ​ ​ 6.16 ​ ​ 4.72 ​ ​ 1.44 ​ 30.5 % ​ ​ 5.98 ​ ​ 4.65 ​ ​ 1.33 ​ 28.6 % ​ Pounds of copper sold ​ ​ 486.6 ​ ​ 494.0 ​ ​ (7.4) (1.5) % ​ ​ 997.6 ​ ​ 1,031.0 ​ ​ (33.5) (3.2) % ​ Net sales ​ $ 4,289.0 ​ $ 3,051.0 ​ $ 1,237.9 40.6 % ​ $ 8,540.4 ​ $ 6,172.9 ​ $ 2,367.5 38.4 % ​ Operating income ​ $ 2,623.2 ​ $ 1,587.0 ​ $ 1,036.2 65.3 % ​ $ 5,103.6 ​ $ 3,122.5 ​ $ 1,981.0 63.4 % ​ Net income attributable to SCC ​ $ 1,670.0 ​ $ 973.4 ​ $ 696.5 ​ 71.6 % ​ $ 3,246.8 ​ $ 1,919.4 ​ $ 1,327.5 ​ 69.2 % ​ Earnings per share ​ $ 2.01 ​ $ 1.17 ​ $ 0.84 ​ 71.6 % ​ $ 3.93 ​ $ 2.33 ​ $ 1.61 ​ 69.2 % ​ Cash dividends paid ​ $ 1.00 ​ $ 0.70 ​ $ 0.30 ​ 42.9 % ​ $ 2.00 ​ $ 1.40 ​ $ 0.60 ​ 42.9 % ​ Stock dividends paid ​ $ 1.87 ​ $ 0.80 ​ $ 1.07 ​ 133.8 % ​ $ 3.40 ​ $ 1.50 ​ $ 1.90 ​ 126.7 % ​ ​ Net sales in the second quarter of 2026 totaled $4,289.0 million, which represented a 40.6% increase compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +39.8%; COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%), occurred despite a decrease in sales volumes of copper (-1.5%), molybdenum (-13.1%), silver (-8.7%) and zinc (-8.8%). ​ Net income attributable to SCC for the second quarter of 2026 reached $1,670.0 million, which represented a 71.6% increase compared to the same period in 2025. This increase was primarily driven by higher net sales (+40.6%), reflecting higher metal prices across all our products, while operating costs increased at a considerably lower rate (+13.8%). ​ Net sales for the first half of 2026 increased by 38.4% compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of silver (+1.1%) and zinc (+2.6%), as well as higher prices for copper (LME, +38.8%; COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%), occurred despite a drop in the sales volumes of copper (-1.5%) and molybdenum (-8.0%). ​ 42 Table of Contents Net income attributable to SCC for the first half of 2026 increased by 69.2% compared to the same period in 2025. This increase was primarily driven by higher net sales (+38.4%), which reflected higher metal prices across all our products, while operating costs increased at a considerably lower rate (+12.7%). ​ Production: The table below highlights our mine production data for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ Six months ended June 30, ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Copper (in million pounds) 508.5 526.9 (18.3) (3.5) % 1,016.8 1,056.5 (39.7) (3.8) % Molybdenum (in million pounds) 15.5 17.5 (1.9) (11.0) % 32.1 34.4 (2.3) (6.7) % Silver (in million ounces) 5.8 6.0 (0.2) (3.8) % 11.8 11.4 0.4 3.3 % Zinc (in million pounds) 86.5 101.2 (14.6) (14.5) % 175.1 188.0 (12.9) (6.9) % ​ The table below highlights our copper mine production data for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ Copper (in million pounds): ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Toquepala 121.9 142.8 (20.9) (14.7) % ​ 250.6 283.3 (32.7) (11.5) % Cuajone 82.1 89.0 (6.9) (7.8) % ​ 162.5 180.2 (17.8) (9.9) % La Caridad 65.9 63.5 2.5 3.9 % ​ 130.3 124.5 5.8 4.7 % Buenavista 232.8 226.2 6.5 2.9 % ​ 462.2 457.4 4.7 1.0 % IMMSA 5.9 5.3 0.5 9.9 % ​ 11.3 11.0 0.3 2.4 % Total mined copper 508.5 526.9 (18.3) (3.5) % ​ 1,016.8 1,056.5 (39.7) (3.8) % ​ Second quarter: Copper mine production in the second quarter of 2026 stood at 508.5 million pounds, reflecting a 3.5% decrease compared to the same period in 2025. This decline was mainly attributed to lower production at Toquepala (-14.7%; which was due to a decrease in ore grades and mineral milled) and Cuajone (-7.8%; due to lower ore grades). These declines were partially offset by higher production at our Buenavista (+2.9%; due to increased SX-EW production), La Caridad (+3.9%; due to improved recoveries, higher ore grades, and increased SX-EW production) and IMMSA operations (+9.9%; due to higher ore grades). ​ Molybdenum production decreased 11.0% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at all of our operations, Toquepala (-21.9%), Cuajone (-1.4%), Buenavista (-12.4%), and La Caridad (-3.5%), primarily due to lower ore grades. ​ Silver mine production decreased 3.8% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at all our operations: Toquepala (-12.4%), Cuajone (-7.6%), and Buenavista (-6.8%) mines, primarily due to lower ore grades. These declines were partially offset by higher production at our La Caridad (+3.4%) and IMMSA (+2.6%) operations, driven by improved ore grades and recoveries. ​ Zinc production decreased 14.5% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at our Buenavista zinc concentrator (-18.6%) and the IMMSA operations (-5.9%). ​ Six months: Mined copper production in the first half of 2026 was 1,016.8 million pounds, which represented a 3.8% decrease compared to the same period in 2025. This decline was primarily attributable to lower production at Toquepala (-11.5%; due to lower ore grades, mineral milled, and SX-EW production) and Cuajone (-9.9%; due to lower ore grades and mineral milled). These declines were partially offset by higher production at our Buenavista (+1.0%; due to increased SX-EW production), La Caridad (+4.7%; due to improved recoveries, higher ore grades, and increased SX-EW production), and IMMSA operations (+2.4%; due to higher ore grades). ​ 43 Table of Contents Molybdenum production decreased by 6.7% in the first half of 2026 compared to the same period in 2025. This decline was primarily attributable to lower production at our Toquepala (-8.5%), Cuajone (-0.2%), Buenavista (-15.8%), and La Caridad (-2.2%) mines, driven by lower ore grades. ​ Silver mine production increased by 3.3% in the first half of 2026, primarily driven by higher production at our Buenavista (+5.6%), La Caridad (+12.3%), and IMMSA (+6.7%) operations. This increase was partially offset by lower production at our Toquepala (-7.2%) and Cuajone (-7.6%) mines. ​ Zinc production decreased by 6.9% in the first half of 2026. This decline was primarily attributable to lower production at our Buenavista zinc concentrator (-11.1%), which was partially offset by higher production at our IMMSA (+1.4%) operations. ​ Operating Cash Costs: An overall benchmark that we use, which is a common industry metric to measure performance is operating cash costs per pound of copper produced. Operating cash cost is a non-GAAP measure that does not have a standardized meaning and may not be comparable to similarly titled measures provided by other companies. This non-GAAP information should not be considered in isolation or as substitute for measures of performance determined in accordance with GAAP. A reconciliation of our operating cash cost per pound of copper produced to the cost of sales (exclusive of depreciation, amortization and depletion) as presented in the consolidated statement of earnings is presented under the subheading, “Non-GAAP Information Reconciliation” on page 62. We disclose operating cash cost per pound of copper produced, both before and net of by-product revenues. ​ We define operating cash cost per pound of copper produced before by-product revenues as cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines. ​ In our calculation of operating cash cost per pound of copper produced, we exclude depreciation, amortization and depletion, which are considered non-cash expenses. Exploration is considered a discretionary expenditure and is also excluded. Workers’ participation provisions are determined on the basis of pre-tax earnings and are also excluded. Additional exclusions from operating cash costs are items of a non-recurring nature and the mining royalty charge as it is based on various calculations of taxable income, depending on which jurisdiction, Peru or Mexico, is imposing the charge. We believe these adjustments allow our management and stakeholders to more fully visualize our controllable cash cost, which we believe is one of the lowest of all copper-producing companies of similar size. ​ We define operating cash cost per pound of copper produced net of by-product revenues as operating cash cost per pound of copper produced, as defined in the previous paragraph, less by-product revenues and net revenue (loss) on sale of metal purchased from third parties. ​ In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost. ​ We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential 44 Table of Contents contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile. ​ Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three-month and six-month periods ended June 30, 2026 and 2025: ​ Operating cash cost per pound of copper produced (1) (In millions, except cost per pound and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Total operating cash cost before by‑product revenues ​ $ 1,128.5 ​ $ 1,078.3 ​ $ 50.2 4.7 % ​ $ 2,264.5 ​ $ 2,128.4 ​ $ 136.1 6.4 % ​ Total by‑product revenues ​ $ (1,106.2) ​ $ (755.9) ​ $ (350.3) 46.3 % ​ $ (2,294.8) ​ $ (1,414.4) ​ $ (880.4) 62.2 % ​ Total operating cash cost net of by‑product revenues ​ $ 22.4 ​ $ 322.4 ​ $ (300.0) (93.1) % ​ $ (30.2) ​ $ 714.0 ​ $ (744.3) (104.2) % ​ Total pounds of copper produced(2) ​ 493.3 ​ 510.4 ​ (17.1) (3.4) % ​ 986.1 ​ 1,022.1 ​ (36.0) (3.5) % ​ Operating cash cost per pound before by‑product revenues ​ $ 2.29 ​ $ 2.11 ​ $ 0.18 8.3 % ​ $ 2.30 ​ $ 2.08 ​ $ 0.21 10.3 % ​ By‑product revenues per pound ​ $ (2.24) ​ $ (1.48) ​ $ (0.76) 51.4 % ​ $ (2.33) ​ $ (1.38) ​ $ (0.94) 68.1 % ​ Operating cash cost per pound net of by‑product revenues ​ $ 0.05 ​ $ 0.63 ​ $ (0.59) (92.7) % ​ $ (0.03) ​ $ 0.70 ​ $ (0.73) (104.4) % ​ (1) These are non-GAAP measures. Please see page 62 for reconciliation to GAAP measure. (2) Net of metallurgical losses. ​ In the second quarter of 2026, the operating cash cost per pound before by-product revenues increased from $2.11 in 2Q25 to $2.29 (+8.3%). This increase was primarily attributable to the unit cost effect of lower copper production (-3.4%) and higher production costs (+4.7%), which reflected an increase in costs for fuel and operating material costs that was partially offset by a decrease in treatment and refining charges due to market conditions. By-product revenues per pound increased by 51.4%, from $1.48 to $2.24. As a result, the operating cash cost per pound net of by-product revenues improved significantly and decreased from a cost of $0.63 per pound to $0.05 per pound, bolstered mainly by higher by-product revenues from silver and molybdenum. ​ For the first half of 2026, the operating cash cost per pound before by-product revenues increased from $2.08 in 2Q25 to $2.30 (+10.3%). This increase was primarily attributable to the unit effect of lower copper production (-3.5%) and higher production costs (+7.1%), mainly reflecting increases in fuel, labor, and operating material costs, which were partially offset by lower treatment and refining charges due to market conditions. By-product revenues per pound increased by 68.1%, from $1.38 to $2.33. As a result, the operating cash cost per pound net of by-product revenues improved significantly and decreased from a cost of $0.70 per pound to a credit of $(0.03) per pound, supported mainly by higher by-product revenues from silver and molybdenum. ​ Metal Prices: The profitability of our operations is dependent on, and our financial performance is significantly affected by, the international market prices for the products we produce, and for copper, molybdenum, zinc and silver in particular. ​ We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining six months of 2026, assuming that expected metal production and sales are achieved; tax rates remain unchanged and giving no 45 Table of Contents effects relative to potential cost changes, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper ​ ​ ​ Molybdenum ​ ​ ​ Zinc ​ ​ ​ Silver Change in metal prices (per pound except silver—per ounce) ​ $ 0.10 ​ $ 1.00 ​ $ 0.10 ​ $ 1.00 Change in net earnings (in millions) ​ $ 59.6 ​ $ 18.0 ​ $ 13.3 ​ $ 7.1 ​ Business Segments: We view our Company as having three reportable segments and manage it on the basis of these segments. These segments are (1) our Peruvian operations, (2) our Mexican open-pit operations and (3) our Mexican underground operations, known as our IMMSA unit. Our Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities that service both mines. The Peruvian operations produce copper, with significant by-product production of molybdenum, silver and other material. Our Mexican open-pit operations include the La Caridad-Pilares and Buenavista mine complexes, the smelting and refining plants and support facilities, which service these mines. The Mexican open-pit operations produce copper, with significant by-product production of molybdenum, silver and other material. Our IMMSA unit includes three operating underground mines and several industrial processing facilities. ​ Segment information is included in our review of “Results of Operations” in this item and also in Note 14 “Segment and Related Information” of our condensed consolidated financial statements. ​ Inflation and Exchange Rate Effect of the Peruvian Sol and the Mexican Peso: Our functional currency is the U.S. dollar and our revenues are primarily denominated in U.S. dollars. Significant portions of our operating costs are denominated in Peruvian sol and Mexican pesos. Accordingly, when inflation and currency devaluation/appreciation of the Peruvian currency and Mexican currency occur, our operating results can be affected. In recent years, exchange rate volatility has been high but has had a limited effect on our results. Please see Item 3 “Quantitative and Qualitative Disclosures about Market Risk” for more detailed information. ​ Capital Investment Programs: We made capital investments of $864.7 million in the first six months of 2026, compared to $553.5 million in the same period of 2025. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments. ​ Set forth below are descriptions of some of our current expected capital investment programs. We expect to meet the cash requirements for these projects by utilizing cash on hand; internally generated funds and additional external financing, including funding received in June 2026. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions. ​ Projects in Peru: ​ Our investments in Peruvian projects that are being built or for which basic or detail engineering or environmental studies are being conducted could surpass $10.3 billion in the next decade. ​ The openness of the Peruvian government and institutions to private investment; strong support from local communities; and respect for the rule of law underpin our aggressive investment program. With the backing and assistance of Peruvian authorities, the Company is moving forward to secure the administrative permits and licenses required before initiating investment. The projects’ construction and subsequent operating phases will generate new poles of development; create significant job opportunities; and drive growth in tax revenues at both, national and regional levels. ​ Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology that meets the highest international environmental standards and has the capacity to produce 120,000 tonnes of SX- EW copper cathodes per year. Operations are expected to begin in the second half of 2027. ​ Project update: As of June 30, 2026, the Company has committed $1,101 million across various project activities, of which $693 million has already been invested. Mass earthworks have moved 13.85 million tonnes of material from La 46 Table of Contents Tapada deposit (a 71% progress). Most purchase orders for the project’s major equipment have been issued. With respect to the leaching process, purchase orders have been placed for key state-of-the-art equipment, and procurement activities for the remaining major equipment continue. ​ Regarding the power supply, electromechanical works are underway at the main electrical substations and efforts continue to build the 220-kV transmission line. Concurrently, the mass earthworks required to develop both the dry and wet areas are in their final stage. Civil works and steel structure assembly have commenced in key facilities, including the primary, secondary, and tertiary crushing circuits (dry area), as well as the Solvent Extraction (SX) and Electrowinning (EW) facilities (wet area), among others. ​ As of June 30, 2026, the Tia Maria project had reached 42% completion, and 5,817 new jobs had been created. Of these positions, 1,254 have been filled by local applicants. To the greatest extent possible, we intend to fill the approximately 6,000 jobs expected to be required during the construction phase of Tia Maria by giving priority to workers from the Islay province. ​ Projects in Mexico: ​ SCC has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate. We are engaged in talks with the current administration to continue rolling out SCC’s Mexican investments for $10.2 billion. ​ El Pilar - Sonora: This new copper project has obtained the necessary environmental permits and will begin early site preparation works in September 2026 to develop energy lines, water pipelines, roads, workers accommodation, etc. Project construction will commence in the first quarter of 2027, and production is expected to begin in the second half of 2029. ​ This project is located in Sonora, Mexico, approximately 45 kilometers from Cananea and Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249% and a life of mine of 18 years. It will operate as an open-pit mine with an annual production capacity of 36,000 tonnes of copper cathode, utilizing cost-efficient and environmentally friendly SX-EW (Solvent Extraction and Electrowinning) technology. With an investment of $551 million, this project will employ a direct workforce of 450 people during the construction phase and 300 during the operational phase. ​ Potential projects: ​ We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, expected return on investment, environmental concerns, required investment and estimated production, among other considerations. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions. ​ Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes that are expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin operating in 2031. ​ Project update: As of June 30, 2026, the presence of illegal miners within the project area continues despite the State’s on-site enforcement efforts through the Environmental Prosecutor’s Office; this has hindered the project's progress. Meanwhile, community development and environmental management programs remain underway in the communities of Tiaparo and Tapayrihua, both located within our direct area of influence. ​ Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world-class mining project with inferred mineral resources of 47 Table of Contents 2,288 million tonnes and an estimated copper grade of 0.43%. When developed, we expect Michiquillay 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. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. ​ Project update: Studies to estimate mineral reserves and develop the mine plan, as well as hydrological and hydrogeological assessments, are currently underway. In addition, geotechnical research is progressing and entering its final phase. ​ El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes of sulfides with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpy SX-EW operations. ​ Under the Mexican constitution, the government is solely responsible for electric energy transmission. The Comisión Federal de Electricidad (CFE), as the competent government entity, must interconnect the Baja California peninsula with the rest of the country. In this context, our project’s initiation is dependent on action at the Mexican government level. ​ Additional projects in the Mexican pipeline are Angangueo and Chalchihuites (which are part of the Mexican copper circuit) and the Empalme Smelter, which are expected to bolster our position as a fully integrated copper producer. ​ The aforementioned information is based solely on estimates. We cannot make any assurances that we will undertake any of these projects or that the information noted is accurate. ​ ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) PRACTICES ​ Cularjahuira dam improves agricultural results in Candarave. Over the last five years, the Cularjahuira dam, located in Candarave in southern Peru, has transformed the lives of 18% of farmers of the area and their families by providing year-round access to water. According to the Ministry of Agricultural Development, crop yields in the area have risen around 20%. This infrastructure, with a capacity of 2.5 million cubic meters, was built by our company through an alliance with the Peruvian state and local farmers. We continue to work with authorities to build the Callazas and Calientes dams, also located in Candarave. With these additional dams, more than 90% of farmers’ water needs will be covered. ​ SCC students’ performance in science and mathematics makes Sonora proud. Students from the Nacozari and Esqueda schools, both in Sonora, Mexico, performed admirably in national and international competitions, including the Mexican Mathematics Olympics and Infomatrix 2026. These achievements reflect the Company’s commitment to education and the development of STEM skills. The Company currently benefits 3,000 students through the 11 education centers it operates in Mexico and Peru. ​ Sports drive community integration and wellbeing. To promote integration and wellbeing through sports, our company joined the Global Social Initiative of the Mexican Government. Our efforts, which focus on communities neighboring our operations, have brought together 2,629 participants who are organized into 206 teams of employees and community members, with categories for children and youth. Alongside these initiatives, 580 volunteers worked to create 14 community murals and recondition sports venues, which strengthens harmonious relations, inclusion and the social fabric. These sports and cultural programs cover approximately 41% of the young population close to our Mexican operations. ​ ACCOUNTING ESTIMATES ​ Our discussion and analysis of financial condition and results of operations, as well as quantitative and qualitative disclosures about market risks, are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. Preparation of these consolidated financial statements requires our management to make 48 Table of Contents estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We make our best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: ore reserves, revenue recognition, ore stockpiles on leach pads and related amortization, estimated impairment of assets, asset retirement obligations, determination of discount rates related to the financial lease liabilities, classification of operating leases versus finance leases, valuation allowances for deferred tax assets, unrecognized tax benefits and fair value of financial instruments. We base our estimates on historical experience and on various other assumptions that we believe reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. ​ BENEFIT PLANS ​ At the Company’s July 2025 Board of Directors meeting, approval was granted by the Board to terminate the Retirement Benefit Plan for Salaried Employees of Southern Copper Corporation (the “Plan”) effective December 1, 2025. The Termination proceeded as a standard termination. Since November of 2000, the Plan has been frozen and closed to new participants and accruals of benefits. Retirees who received their monthly benefits from The Metropolitan Life Insurance Company (“MetLife”) will continue to receive their monthly benefit from MetLife. Plan participants that begin drawing their benefits for the first time after October 1, 2025, will receive their benefit from Midland Insurance Company. ​ Settlement charges related to the Plan termination, which included the recognition of accumulated gains and losses recorded within other comprehensive income on the Company’s balance sheet, were recorded in the fourth quarter of 2025. The Plan’s termination had no material impact on the Company’s financial statements; the termination process was completed on April 30, 2026. ​ 49 Table of Contents RESULTS OF OPERATIONS ​ The following highlights key financial results for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ June 30, ​ ​ Statement of Earnings Data ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Net sales ​ $ 4,289.0 ​ $ 3,051.0 ​ $ 1,237.9 ​ $ 40.6 % ​ $ 8,540.4 ​ $ 6,172.9 ​ $ 2,367.5 ​ $ 38.4 % ​ Operating costs and expenses ​ (1,665.8) ​ (1,464.0) ​ (201.8) ​ 13.8 % ​ (3,436.8) ​ (3,050.4) ​ (386.4) ​ 12.7 % ​ Operating income ​ 2,623.2 ​ 1,587.0 ​ 1,036.2 ​ 65.3 % ​ 5,103.6 ​ 3,122.5 ​ 1,981.0 ​ 63.4 % ​ Non‑operating income (expense) ​ (23.8) ​ (43.1) ​ 19.3 ​ (44.9) % ​ (60.0) ​ (100.1) ​ 40.1 ​ (40.0) % ​ Income before income taxes ​ 2,599.4 ​ 1,543.9 ​ 1,055.5 ​ 68.4 % ​ 5,043.5 ​ 3,022.4 ​ 2,021.1 ​ 66.9 % ​ Income taxes ​ (945.3) ​ ​ (576.0) ​ ​ (369.4) ​ ​ 64.1 % ​ ​ (1,836.3) ​ ​ (1,108.7) ​ ​ (727.6) ​ ​ 65.6 % ​ Equity earnings of affiliate ​ 20.5 ​ ​ 8.8 ​ ​ 11.8 ​ ​ 134.3 % ​ ​ 49.2 ​ ​ 12.1 ​ ​ 37.1 ​ ​ 306.8 % ​ Net income attributable to non‑controlling interest ​ (4.6) ​ (3.2) ​ (1.4) ​ 43.4 % ​ (9.6) ​ (6.4) ​ (3.2) ​ 49.4 % ​ Net income attributable to SCC ​ $ 1,670.0 ​ $ 973.4 ​ $ 696.5 ​ $ 71.6 % ​ $ 3,246.8 ​ $ 1,919.4 ​ $ 1,327.5 ​ $ 69.2 % ​ ​ Net sales in the second quarter of 2026 totaled $4,289.0 million, which represented a 40.6% increase compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +39.8%; COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%), occurred despite a decrease in the sales volumes of copper (-1.5%), molybdenum (-13.1%), silver (-8.7%) and zinc (-8.8%). ​ Net income attributable to SCC for the second quarter of 2026 reached $1,670.0 million, which represented a 71.6% increase compared to the same period in 2025. This increase was primarily driven by higher net sales (+40.6%), reflecting higher metal prices across all our products, while operating costs increased at a considerably lower rate (+13.8%). ​ Net sales for the first half of 2026 increased 38.4% compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of silver (+1.1%) and zinc (+2.6%), as well as higher prices for copper (LME, +38.8%; COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%), occurred despite a drop in sales volumes of copper (-1.5%) and molybdenum (-8.0%). ​ Net income attributable to SCC for the first half of 2026 increased 69.2% compared to the same period in 2025. This increase was primarily driven by growth in net sales (+38.4%), which were buoyed by higher metal prices across all our products, while operating costs increased at a considerably lower rate (+12.7%). ​ 50 Table of Contents The table below outlines the average published market metal prices for our metals for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ ​ Six Months Ended June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ % Change ​ ​ Copper price ($per pound—LME) ​ $ 6.04 ​ $ 4.32 ​ 39.8 % ​ $ 5.94 ​ $ 4.28 ​ 38.8 % ​ Copper price ($per pound—COMEX) ​ $ 6.16 ​ $ 4.72 ​ 30.5 % ​ $ 5.98 ​ $ 4.65 ​ 28.6 % ​ Molybdenum price ($per pound)(1) ​ $ 29.44 ​ $ 20.57 ​ 43.1 % ​ $ 27.40 ​ $ 20.50 ​ 33.7 % ​ Zinc price ($per pound—LME) ​ $ 1.57 ​ $ 1.20 ​ 30.8 % ​ $ 1.52 ​ $ 1.24 ​ 22.6 % ​ Silver price ($per ounce—COMEX) ​ $ 73.49 ​ $ 33.62 ​ 118.6 % ​ $ 78.41 ​ $ 32.96 ​ 137.9 % ​ (1) Platts Metals Week Dealer Oxide ​ The table below provides our metal sales as a percentage of our total net sales for the three-month and six-months periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Six Months Ended ​ ​ ​ ​ June 30, ​ ​ June 30, ​ Sales as a percentage of total net sales ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Copper 72.7 % 74.1 % 71.4 % 76.0 % Molybdenum 11.1 % 11.6 % 10.8 % 10.6 % Silver 8.8 % 6.6 % 10.6 % 6.1 % Zinc 3.5 % 4.0 % 3.5 % 3.8 % Other by‑products 3.9 % 3.7 % 3.7 % 3.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % ​ ​ The table below provides our copper sales by type of product for the three-month and six-month periods ended June 30, 2026 and 2025. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ ​ ​ Six Months Ended June 30, ​ ​ ​ ​ Copper Sales (million pounds) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Refined (including SX‑EW) ​ 269.9 ​ 234.0 ​ 35.9 ​ 15.3 % ​ 557.1 ​ 484.4 ​ 72.7 ​ 15.0 % ​ Rod ​ 87.3 ​ 86.3 ​ 1.1 ​ 1.2 % ​ 168.8 ​ 177.8 ​ (9.0) ​ (5.0) % ​ Concentrates and other ​ 129.3 ​ 173.7 ​ (44.3) ​ (25.5) % ​ 271.7 ​ 368.9 ​ (97.2) ​ (26.4) % ​ Total ​ 486.6 ​ 494.0 ​ (7.4) ​ (1.5) % ​ 997.6 ​ 1,031.0 ​ (33.5) ​ (3.2) % ​ ​ The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ Six months ended June 30, Copper Sales by product type ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Refined (including SX‑EW) 55.5 % 47.4 % 55.8 % 47.0 % Rod 17.9 % 17.5 % 16.9 % 17.2 % Concentrates and other 26.6 % 35.1 % 27.2 % 35.8 % Total 100.0 % 100.0 % 100.0 % 100.0 % ​ 51 Table of Contents OPERATING COSTS AND EXPENSES ​ The table below summarizes the production cost structure by major components as a percentage of total production cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ ​ ​ Six months ended June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ 2026 ​ ​ ​ 2025 ​ Power 9.4 % 11.2 % 11.3 % 12.1 % Labor 13.6 % 12.3 % 13.5 % 12.1 % Fuel 18.0 % 14.4 % 16.6 % 14.8 % Maintenance 16.9 % 26.2 % 20.4 % 25.5 % Operating material 24.9 % 18.8 % 21.3 % 18.8 % Other 17.2 % 17.1 % 16.9 % 16.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % ​ Second quarter: Operating costs and expenses were $1,665.8 million for the second quarter of 2026, compared to $1,464.0 million for the same period of 2025. The increase of $201.8 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating cost and expenses for the second quarter of 2025 ​ ​ ​ $ 1,464.0 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 125.1 ​ ​ - Operating materials 71.2 ​ ​ ​ ​ - Fuel 49.8 ​ ​ ​ ​ - Workers participation 35.2 ​ ​ ​ ​ - Exchange rate variance 23.1 ​ ​ ​ ​ - Labor expenses 19.9 ​ ​ ​ ​ - Leachable material 12.0 ​ ​ ​ ​ - Other net, partially offset by 29.0 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts (83.0) ​ ​ ​ ​ - Inventory variance (32.2) ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 52.8 ​ • Increase in depreciation, amortization and depletion expense. ​ ​ ​ 19.8 ​ • Increase in selling, general and administrative expenses. ​ 2.9 ​ • Increase in exploration expense. ​ ​ 1.2 ​ Operating cost and expenses for the second quarter of 2026 ​ $ 1,665.8 ​ ​ 52 Table of Contents Six months: Operating costs and expenses were $3,436.8 million for the first six months of 2026, compared to $3,050.4 million for the same period of 2025. The increase of $386.4 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating cost and expenses for the first six months of 2025 ​ ​ ​ $ 3,050.4 Plus: ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 227.2 ​ - Operating materials 70.9 ​ ​ ​ - Fuel 56.6 ​ ​ ​ - Workers participation 53.2 ​ ​ ​ - Labor expenses 40.5 ​ ​ ​ - Leachable material 29.0 ​ ​ ​ - Solidarity contribution for social and development programs in Sonora, Mexico 28.7 ​ ​ ​ - Sales expenses 21.9 ​ ​ ​ - Other net, partially offset by 6.6 ​ ​ ​ - Repairing materials, principally heavy equipment spare parts (80.3) ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 130.2 • Increase in depreciation, amortization and depletion expense. ​ ​ 21.7 • Increase in selling, general and administrative expenses. ​ ​ 7.0 • Increase in exploration expense. ​ ​ 0.3 Operating cost and expenses for the first six months of 2026 ​ $ 3,436.8 ​ NON-OPERATING INCOME (EXPENSE) ​ Non-operating income (expense) represented a net expense of $(23.8) million and $(60.0) million for the three and six months ended June 30, 2026, compared to a net expense of $(43.1) million and $(100.1) million for the three and six months ended June 30, 2025. ​ Second quarter: The $19.3 million decrease in the expense level was due to: ● $9.1 million decrease in net miscellaneous expenses, principally due to an increase in income received for the sale of fixed assets at our Mexican operations. ● $5.9 million decrease in interest expense, net of capitalized interest; and partially offset by ● $4.3 million increase in interest income due to higher cash balances. ​ Six months: The $40.1 million decrease in the expense level was due to: ● $29.6 million decrease in net miscellaneous expenses, due to an increase in income received for the sale of fixed assets at our Mexican operations. Additionally, the 2025 figure included a $9.9 million asset impairment at Tia Maria project. ● $8.0 million decrease in interest expense, net of capitalized interest, partially offset by ● $2.5 million increase in interest income due to higher cash balances. ​ INCOME TAXES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Provision for income taxes ($ in millions) ​ $ 1,836.3 ​ $ 1,108.7 ​ Effective income tax rate ​ 36.4 % 36.7 % ​ In addition to the income taxes of Peru, Mexico and the United States, the provision for income taxes also includes the mining royalties from Peru and Mexico and the Peruvian special mining tax. ​ ​ ​ 53 Table of Contents SEGMENT RESULT ANALYSIS ​ We have three segments: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations. ​ The table below presents information regarding the volume of our copper sales by segment for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ ​ ​ Six Months Ended June 30, ​ ​ ​ ​ Copper Sales (million pounds) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Peruvian operations ​ 196.1 209.8 ​ (13.7) (6.5) % ​ 403.9 456.1 ​ (52.2) (11.4) % ​ Mexican open‑pit ​ 288.6 282.4 ​ 6.1 2.2 % ​ 589.1 572.6 ​ 16.5 2.9 % ​ Mexican IMMSA unit ​ 7.9 8.2 ​ (0.2) (3.0) % ​ 15.4 13.4 ​ 2.0 14.9 % ​ Other and intersegment elimination ​ (6.0) (6.4) ​ 0.4 (6.3) % ​ (10.9) (11.1) ​ 0.2 (2.0) % ​ Total copper sales ​ 486.6 494.0 ​ (7.4) (1.5) % ​ 997.6 1,031.0 ​ (33.5) (3.2) % ​ ​ The table below presents information regarding the volume of sales by segment of our significant by-products for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ ​ ​ By‑product Sales (million pounds, except silver—million ounces) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ ​ Peruvian operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate ​ 6.5 ​ 8.1 ​ (1.6) (19.9) % ​ 14.6 ​ 15.8 ​ (1.3) (8.0) % Silver ​ 1.2 ​ 1.6 ​ (0.4) (27.0) % ​ 2.4 ​ 3.3 ​ (0.8) (25.6) % Mexican open‑pit operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate ​ 8.6 ​ 9.2 ​ (0.7) (7.1) % ​ 17.0 ​ 18.5 ​ (1.5) (8.0) % Zinc ​ 44.9 ​ 64.3 ​ (19.4) (30.2) % ​ 86.9 ​ 97.3 ​ (10.4) ​ (10.7) % ​ Silver ​ 3.3 ​ 3.4 ​ (0.1) (3.0) % ​ 7.2 ​ 6.5 ​ 0.7 10.2 % IMMSA unit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Zinc‑refined and in concentrate ​ 46.9 ​ 46.7 ​ 0.2 0.4 % ​ 98.6 ​ 94.2 ​ 4.3 4.6 % Silver ​ 1.7 ​ 1.8 ​ (0.1) (3.6) % ​ 3.5 ​ 3.4 ​ 0.1 4.4 % Other and intersegment elimination ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver ​ (0.7) ​ (0.7) ​ 0.1 (9.1) % ​ (1.3) ​ (1.5) ​ 0.1 (10.3) % Zinc ​ (2.3) ​ (12.9) ​ 10.6 (82.0) % ​ (2.3) ​ (12.9) ​ 10.6 (82.0) % ​ Total by‑product sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum contained in concentrate ​ 15.0 ​ 17.3 ​ (2.3) (13.1) % ​ 31.6 ​ 34.3 ​ (2.7) (8.0) % Zinc‑refined and in concentrate ​ 89.4 ​ 98.1 ​ (8.6) (8.8) % ​ 183.2 ​ 178.6 ​ 4.6 2.6 % Silver ​ 5.5 ​ 6.0 ​ (0.5) (8.7) % ​ 11.8 ​ 11.7 ​ 0.1 1.1 % ​ ​ 54 Table of Contents Peruvian Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ ​ ​ Six Months Ended June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ % Change ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ ​ ​ % Change ​ Net sales ​ $ 1,584.4 ​ $ 1,178.2 ​ $ 406.2 ​ ​ 34.5 % ​ $ 3,165.8 ​ $ 2,444.2 ​ $ 721.5 ​ ​ 29.5 % Operating costs and expenses ​ (648.6) ​ (595.1) ​ (53.4) ​ 9.0 % ​ (1,306.1) ​ (1,299.6) ​ (6.6) ​ ​ 0.5 % Operating income ​ $ 935.9 ​ $ 583.1 ​ $ 352.7 ​ ​ 60.5 % ​ $ 1,859.6 ​ $ 1,144.6 ​ $ 715.0 ​ ​ 62.5 % ​ Net sales in the second quarter of 2026 increased $406.2 million compared to the same period in 2025. This increase was primarily driven by higher prices for copper (LME, +39.8%), molybdenum (+43.1%), and silver (+118.6%), despite lower sales volumes of copper (-6.5%), molybdenum (-19.9%), and silver (-27.0%). ​ Operating costs and expenses were $648.6 million for the second quarter of 2026 compared to $595.1 million for the same period of 2025. The increase of $53.4 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for the second quarter of 2025 ​ ​ ​ $ 595.1 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 52.6 ​ ​ - Operating materials 71.2 ​ ​ ​ ​ - Fuel 33.2 ​ ​ ​ ​ - Workers participation 27.1 ​ ​ ​ ​ - Inventory variance 10.1 ​ ​ ​ ​ - Labor expenses 8.5 ​ ​ ​ ​ - Exchange rate variance 6.3 ​ ​ ​ ​ - Other net, partially offset by 2.9 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts (106.6) ​ ​ ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 3.5 ​ • Increase in selling, general and administrative expenses. ​ ​ 0.8 ​ Less: ​ ​ ​ ​ • Decrease in exploration expenses. ​ ​ (3.3) ​ • Decrease in cost of metals purchased from third parties. ​ ​ (0.3) ​ Operating costs and expenses for the second quarter of 2026 ​ $ 648.6 ​ Net sales in the first six months of 2026 increased $721.5 million compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +38.8%), molybdenum (+33.7%), and silver (+137.9%), occurred despite a drop in the sales volumes of copper (-11.4%), molybdenum (-8.0%), and silver (-25.6%). ​ ​ 55 Table of Contents Operating costs and expenses were $1,306.1 million for the first six months of 2026 compared to $1,299.6 million for the same period of 2025. The increase of $6.6 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for the first six months of 2025 ​ ​ ​ $ 1,299.6 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), mainly attributable to: ​ 14.1 ​ ​ - Operating materials 70.9 ​ ​ ​ ​ - Workers participation 58.8 ​ ​ ​ ​ - Fuel 36.1 ​ ​ ​ ​ - Labor expenses 14.7 ​ ​ ​ ​ - Other, net, partially offset by 7.2 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts (115.3) ​ ​ ​ ​ - Inventory variance (58.3) ​ ​ ​ • Increase in selling, general and administrative expenses. ​ ​ 2.1 ​ Less: ​ ​ ​ • Decrease in depreciation, amortization and depletion expense. ​ ​ (5.1) ​ • Decrease in exploration expenses. ​ ​ (3.6) ​ • Decrease in cost of metals purchased from third parties. ​ ​ (1.0) ​ Operating costs and expenses for the first six months of 2026 ​ $ 1,306.1 ​ Mexican Open-pit Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ % Change ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ % Change ​ ​ Net sales $ 2,511.9 ​ $ 1,754.8 ​ $ 757.2 ​ ​ 43.1 % ​ $ 4,955.5 ​ $ 3,504.2 ​ $ 1,451.3 ​ ​ 41.4 % ​ Operating costs and expenses (901.2) ​ (765.9) ​ (135.4) ​ 17.7 % ​ (1,917.2) ​ (1,549.7) ​ (367.5) ​ 23.7 % ​ Operating income $ 1,610.7 ​ $ 988.9 ​ $ 621.8 ​ ​ 62.9 % ​ $ 3,038.2 ​ $ 1,954.4 ​ $ 1,083.8 ​ ​ 55.5 % ​ ​ Net sales in the second quarter of 2026 increased $757.2 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+2.2%), as well as by higher prices for copper (COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%); the improvement in net sales occurred despite a drop in the sales volumes of molybdenum (-7.1%), silver (-3.0%) and zinc (-30.2%). ​ Operating costs and expenses were $901.2 million for the second quarter of 2026 compared to $765.9 million for the same period of 2025. The increase of $135.4 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for the second quarter of 2025 ​ ​ ​ $ 765.9 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 69.3 ​ ​ - Exchange rate variance 29.2 ​ ​ ​ ​ - Leachable material 27.1 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 22.1 ​ ​ ​ ​ - Fuel 15.4 ​ ​ ​ ​ - Workers participation 15.1 ​ ​ ​ ​ - Other net, partially offset by 8.7 ​ ​ ​ ​ - Inventory variance (35.0) ​ ​ ​ ​ - Energy costs (13.2) ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 41.5 ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 18.9 ​ • Increase in selling, general and administrative expenses. ​ ​ 6.2 ​ Less: ​ ​ ​ ​ • Decrease in exploration expense. ​ ​ (0.6) ​ Operating costs and expenses for the second quarter of 2026 ​ $ 901.2 56 Table of Contents ​ Net sales in the first six months of 2026 increased $1,451.3 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+2.9%) and silver (+10.2%), as well as higher prices for copper (COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%); net sales rose despite a decrease in sales volumes of molybdenum (-8.0%) and zinc (-10.7%). ​ Operating costs and expenses were $1,917.2 million for the first six months of 2026 compared to $1,549.7 million for the same period of 2025. The increase of $367.5 million was primarily due to: ​ ​ ​ ​ ​ ​ ​ ​ Operating costs and expenses for the first six months of 2025 ​ ​ ​ $ 1,549.7 ​ Plus: ​ ​ ​ ​ • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 194.6 ​ ​ - Leachable material 49.3 ​ ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 29.9 ​ ​ ​ ​ - Solidarity contribution for social and development programs in Sonora, Mexico 28.7 ​ ​ ​ ​ - Sales expenses 19.3 ​ ​ ​ ​ - Fuel 18.9 ​ ​ ​ ​ - Labor expenses 15.8 ​ ​ ​ ​ - Exchange rate variance 14.0 ​ ​ ​ ​ - Inventory variance 9.7 ​ ​ ​ ​ - Other net 8.9 ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 136.4 ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 30.8 ​ • Increase in selling, general and administrative expenses. ​ ​ 6.3 ​ Less: ​ ​ ​ ​ • Decrease in exploration expense. ​ ​ (0.5) ​ Operating costs and expenses for the first six months of 2026 ​ $ 1,917.2 ​ Mexican Underground Operations (IMMSA): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ % Change ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Variance ​ % Change ​ ​ ​ ​ Net sales $ 267.9 ​ $ 179.3 ​ $ 88.7 ​ ​ 49.5 % ​ $ 586.5 ​ $ 334.7 ​ $ 251.7 ​ ​ 75.2 % ​ Operating costs and expenses (179.9) ​ (161.5) ​ (18.4) ​ 11.4 % ​ (357.7) ​ (298.5) ​ (59.2) ​ 19.8 % ​ Operating income $ 88.0 ​ $ 17.8 ​ $ 70.2 ​ ​ 395.0 % ​ $ 228.8 ​ $ 36.2 ​ $ 192.6 ​ ​ 531.6 % ​ ​ Net sales in the second quarter of 2026 increased $88.7 million compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of zinc (+0.4%) and higher prices for copper (COMEX, +30.5%), silver (+118.6%), and zinc (+30.8%), occurred despite a drop in the sales volumes of copper (-3.0 %) and silver (-3.6%). ​ ​ 57 Table of Contents Operating costs and expenses were $179.9 million for the second quarter of 2026 compared to $161.5 million for the same period of 2025. The increase of $18.4 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for the second quarter of 2025 ​ ​ ​ $ 161.5 Plus: ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 20.3 • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 1.3 ​ - Operations contractors 4.9 ​ ​ ​ - Labor expenses 3.8 ​ ​ ​ - Sales expenses 2.5 ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 1.6 ​ ​ ​ - Other net, partially offset by 3.5 ​ ​ ​ - Exchange rate variance (8.3) ​ ​ ​ - Inventory variance (6.8) ​ ​ • Increase in exploration expense. ​ ​ 1.1 • Increase in depreciation, amortization and depletion expense. ​ ​ 0.1 Less: ​ ​ ​ • Decrease in selling, general and administrative expenses. ​ ​ (4.3) Operating costs and expenses for the second quarter of 2026 ​ $ 179.9 ​ Net sales in the first six months of 2026 increased $251.7 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+14.9%), silver (+4.4%), and zinc (+4.6%), as well as higher prices for copper (COMEX, +28.6%), silver (+137.9%), and zinc (+22.6%). ​ Operating costs and expenses were $357.7 million for the first six months of 2026 compared to $298.5 million for the same period of 2025. The increase of $59.2 million was primarily due to: ​ ​ ​ ​ ​ ​ Operating costs and expenses for the first six months of 2025 ​ ​ ​ $ 298.5 Plus: ​ ​ ​ • Increase in volume and cost of metals purchased from third parties. ​ ​ 41.9 • Increase in other cost of sales (exclusive of depreciation, amortization and depletion), which is mainly attributable to: 17.4 ​ - Operations contractors 12.6 ​ ​ ​ - Labor expenses 10.0 ​ ​ ​ - Sales expenses 4.2 ​ ​ ​ - Repairing materials, principally heavy equipment spare parts 5.1 ​ ​ ​ - Other net, partially offset by 1.4 ​ ​ ​ - Workers participation (16.0) ​ ​ • Increase in depreciation, amortization and depletion expense. ​ ​ 0.8 • Increase in exploration expense. ​ ​ 0.5 Less: ​ ​ ​ • Decrease in selling, general and administrative expenses. ​ ​ (1.5) Operating costs and expenses for the first six months of 2026 ​ $ 357.7 ​ Intersegment Eliminations and Adjustments: ​ The net sales, operating costs and expenses and operating income discussed above will not be directly equal to amounts in our condensed consolidated statement of earnings because the adjustments of intersegment operating revenues and expenses must be taken into account. Please see Note 14 “Segment and Related Information” of the condensed consolidated financial statements. 58 Table of Contents ​ LIQUIDITY AND CAPITAL RESOURCES ​ Cash flow: ​ The following table shows the cash flow for the six-month periods ended June 30, 2026 and 2025 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ Net cash provided by operating activities ​ $ 3,683.0 ​ $ 1,698.2 ​ $ 1,984.9 ​ Net cash used in investing activities ​ $ (1,925.0) ​ $ (983.6) ​ $ (941.4) ​ Net cash used in financing activities ​ $ (401.6) ​ $ (627.5) ​ $ 225.9 ​ ​ Net cash provided by operating activities: ​ The change in net cash from operating activities for the six-month periods ended June 30, 2026 and 2025 include, in millions, the following significant items: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Variance ​ ​ ​ % Change ​ Net income ​ $ 3,256.5 ​ $ 1,925.8 ​ $ 1,330.7 ​ ​ 69.1 % Depreciation, amortization and depletion ​ 451.7 ​ 430.0 ​ 21.7 ​ 5.1 % (Benefit) provision for deferred income taxes ​ (18.7) ​ 53.2 ​ (71.8) ​ (135.1) % Loss on foreign currency transaction effect ​ 9.8 ​ 17.8 ​ (8.0) ​ (44.9) % Other adjustments to net income ​ 7.9 ​ 14.2 ​ (6.2) ​ (43.9) % Change in operating assets and liabilities ​ (24.2) ​ (742.7) ​ 718.5 ​ (96.7) % Net cash provided by operating activities ​ $ 3,683.0 ​ $ 1,698.2 ​ $ 1,984.9 ​ ​ 116.9 % ​ Six-month period ended June 30, 2026: Net income was $3,256.5 million, which represented approximately 88.4% of the net operating cash flow. The cash flow from operating assets and liabilities dropped $24.2 million due to the following: ● $(44.5) million increase in trade accounts receivable, which was mainly attributable to an increase in metal prices in the first half of 2026. ● $(2.2) million decrease in accounts payable and accrued liabilities. ● $46.8 million net decrease in inventory, which was primarily driven by a reduction in the leachable material inventory. ● $(24.3) million increase in other operating assets and liabilities, net. ​ Six months ended June 30, 2025: Net income was $1,925.8 million, which represented approximately 113.4% of the net operating cash flow. The cash flow from operating assets and liabilities dropped by $742.7 million due to the following: ● $(368.1) million increase in trade accounts receivable, which was mainly attributable to an increase in metal prices and in reported sales volumes in the first six months of 2025. ● $(394.9) million decrease in accounts payable and accrued liabilities, which was primarily driven by payments of income tax and workers’ participation at our Peruvian and Mexican operations. ● $40.2 million net decrease in inventory, which was primarily driven by a $40.0 million reduction in the work in process inventory. ● $(19.9) million increase in other operating assets and liabilities, net. ​ ​ 59 Table of Contents Net cash used in investing activities: ​ Six-month period ended June 30, 2026: Net cash used in investing activities included $864.7 million for capital investments. The capital investments included: ​ ● $382.1 million of investments at our Mexican operations: ● $70.5 million for the IMMSA unit, ● $45.5 million for the tailings deposits of the new concentrator at Buenavista, ● $42.2 million for land for new projects, ● $26.4 million for wells and recovered water conduction, ● $193.6 million for replacement, maintenance expenditures and other projects, and ● $3.9 million decrease in capital expenditures incurred but not yet paid. ​ ● $482.6 million of investments at our Peruvian operations: ● $238.5 million for the Tia Maria project, ● $10.8 million for the relocation of the leaching crusher at Toquepala, ● $8.3 million for the relocation of the electrical room and conveyor belt at the Cuajone concentrator, ● $7.3 million for the new concentrator maintenance workshop ● $6.8 million for the cathode stripping machine at the Ilo refinery, ● $116.3 million for replacement, maintenance expenditures and other projects, ● $43.9 million for other minor projects with a budget below $1 million, and ● $50.7 million decrease in capital expenditures incurred but not yet paid. ​ Investment activities in the first six months of 2026 included $1,060.3 million of net purchase of short-term investments. ​ Six months ended June 30, 2025: Net cash used in investing activities included $553.5 million for capital investments. The capital investments included: ​ ● $331.4 million of investments at our Mexican operations: ● $86.4 million for the new tailings disposal deposit at Buenavista mine, ● $45.3 million for the IMMSA unit, ● $18.5 million for the water supply system at La Churea, ● $12.3 million for wells and recovered water conduction, ● $12.1 million for land for new projects, ● $164.7 million for replacement and maintenance expenditures, and ● $(7.9) million increase in capital expenditures incurred but not yet paid. ​ ● $222.1 million of investments at our Peruvian operations: ● $43.7 million for the purchase of land at the Los Chancas project, ● $16.0 million for the relocation of the leaching crusher at Toquepala, ● $14.2 million for the Tia Maria project, ● $5.2 million for the cathode stripping machine at the Ilo refinery, ● $4.3 million for the modernization of the delamination machine at Toquepala, ● $4.0 million for the electric cogeneration at Ilo smelter, ● $33.5 million for other minor projects with a budget below $1 million, ● $86.4 million for replacement and maintenance expenditures, and ● $14.8 million decrease in capital expenditures incurred but not yet paid. ​ Investment activities in the first six months of 2025 included $430.1 million of net purchase of short-term investments. 60 Table of Contents ​ Dividends: ​ On July 16, 2026, the Board of Directors authorized a quarterly cash dividend of $1.10 per share of common stock and a stock dividend of 0.0120 shares of common stock per share of common stock, payable on August 27, 2026 to shareholders of record at the close of business on August 11, 2026. ​ In 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 $177.32, which is the average of the high and low share price on July 16, 2026. ​ Factoring in both the cash dividend and the equivalent value of the stock dividend (calculated at $2.13 based on the average high and low share price of $177.32 per share on July 16, 2026), the total estimated dividend payment is $3.23 per share. ​ Capital Investment and Exploration Programs: ​ A discussion of our capital investment programs is an important part of understanding our liquidity and capital resources. We expect to meet the cash requirements for these capital investments from cash on hand, internally generated funds and from additional external financing, including funding received in June 2026. For information regarding our capital investment programs, please see the discussion under the caption “Capital Investment Programs” under this Item 2. ​ Contractual Obligations: ​ The following information updates our significant contractual obligations disclosed in Part II, Item 7 of our 2025 annual report on Form 10-K as filed with the SEC on February 27, 2026: ​ In May 2026, the Company entered into a power purchase agreement for a total of 200MW with Orygen Perú S.A.A. (“Orygen”), under which Orygen will supply energy for the Peruvian operations for ten years starting on May 1, 2027 and ending on April 30, 2037. Orygen will initially supply 120MW of power to the Company, effective between May 1, 2027 and April 30, 2029. Beginning on May 1, 2029, and until the contract end date on April 30, 2037, the contract amount will increase to 200MW. It is projected this new contract will reduce power costs for the Peruvian operations by approximately 22%. ​ ​ ​ 61 Table of Contents NON-GAAP INFORMATION RECONCILIATION ​ Operating cash cost: Following is a reconciliation of “Operating Cash Cost” (see page 44) to cost of sales (exclusive of depreciation, amortization and depletion) as reported in our condensed consolidated statement of earnings, in millions of dollars and dollars per pound of copper in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ ​ June 30, 2026 ​ June 30, 2025 ​ June 30, 2026 ​ June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound ​ Cost of sales (exclusive of depreciation, amortization and depletion) ​ $ 1,389.5 ​ $ 2.82 ​ $ 1,211.7 ​ $ 2.37 ​ $ 2,888.3 ​ $ 2.93 ​ $ 2,530.9 ​ $ 2.48 ​ Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 35.3 ​ 0.07 ​ 32.5 ​ 0.06 ​ 71.1 ​ 0.07 ​ 64.1 ​ 0.06 ​ Sales premiums, net of treatment and refining charges ​ (46.5) ​ (0.09) ​ (36.5) ​ (0.07) ​ (94.0) ​ (0.10) ​ (71.5) ​ (0.07) ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers’ participation ​ (132.3) ​ (0.27) ​ (97.1) ​ (0.19) ​ (257.3) ​ (0.26) ​ (204.1) ​ (0.20) ​ Cost of metals purchased from third parties ​ (111.1) ​ (0.23) ​ (63.4) ​ (0.12) ​ (232.0) ​ (0.24) ​ (114.0) ​ (0.11) ​ Royalty charge and other, net ​ (80.0) ​ (0.16) ​ (15.4) ​ (0.03) ​ (107.6) ​ (0.11) ​ (37.8) ​ (0.04) ​ Inventory change ​ 73.6 ​ 0.15 ​ 46.5 ​ 0.09 ​ (3.9) ​ (0.00) ​ (39.2) ​ (0.04) ​ Operating Cash Cost before by‑product revenues ​ $ 1,128.5 ​ $ 2.29 ​ $ 1,078.3 ​ $ 2.11 ​ $ 2,264.5 ​ $ 2.30 ​ $ 2,128.4 ​ $ 2.08 ​ Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ By‑product revenues(1) ​ (1,099.5) ​ ​ (2.23) ​ (750.8) ​ ​ (1.47) ​ (2,278.9) ​ ​ (2.31) ​ (1,403.2) ​ ​ (1.37) ​ Net revenue on sale of metal purchased from third parties ​ (6.6) ​ ​ (0.01) ​ (5.2) ​ ​ (0.01) ​ (15.9) ​ ​ (0.02) ​ (11.1) ​ ​ (0.01) ​ Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total by‑product revenues ​ (1,106.2) ​ (2.24) ​ (755.9) ​ (1.48) ​ (2,294.8) ​ (2.33) ​ (1,414.4) ​ (1.38) ​ Operating Cash Cost net of by‑product revenues ​ $ 22.4 ​ $ 0.05 ​ $ 322.4 ​ $ 0.63 ​ $ (30.2) ​ $ (0.03) ​ $ 714.0 ​ $ 0.70 ​ Total pounds of copper produced (in millions) (2) ​ 493.3 ​ ​ ​ 510.4 ​ ​ ​ 986.1 ​ ​ ​ 1,022.1 ​ ​ ​ ​ (1) By-product revenues included in our presentation of operating cash cost contain the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ ​ ​ June 30, 2026 ​ ​ June 30, 2025 ​ ​ June 30, 2026 ​ ​ June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ ​ ​ ​ ​ ​ $ per ​ ​ ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound ​ $ millions ​ pound ​ Molybdenum ​ $ (475.8) ​ $ (0.96) ​ $ (354.7) ​ $ (0.69) ​ $ (921.3) ​ $ (0.93) ​ $ (655.2) ​ $ (0.64) ​ Silver ​ (338.5) ​ (0.69) ​ (177.6) ​ (0.35) ​ (816.7) ​ (0.83) ​ (334.2) ​ (0.33) ​ Zinc ​ (126.3) ​ (0.26) ​ (115.0) ​ (0.23) ​ (247.9) ​ (0.25) ​ (215.9) ​ (0.21) ​ Sulfuric Acid ​ (85.2) ​ (0.17) ​ (66.3) ​ (0.13) ​ (171.8) ​ (0.17) ​ (124.7) ​ (0.12) ​ Gold and others ​ (73.8) ​ (0.15) ​ (37.2) ​ (0.07) ​ (121.3) ​ (0.12) ​ (73.3) ​ (0.07) ​ Total ​ $ (1,099.5) ​ $ (2.23) ​ $ (750.8) ​ $ (1.47) ​ $ (2,278.9) ​ $ (2.31) ​ $ (1,403.2) ​ $ (1.37) ​ ​ (2) Net of metallurgical losses. ​ ​ 62 Table of Contents Item 3. Quantitative and Qualitative Disclosure about Market Risk ​ Commodity price risk: ​ For additional information on metal price sensitivity, refer to “Metal Prices” in Part I, Item 2 of this quarterly report on Form 10-Q for the period ended June 30, 2026. ​ Foreign currency exchange rate risk: ​ Our functional currency is the U.S. dollar. Portions of our operating costs are denominated in Peruvian soles and Mexican pesos. Given that our revenues are primarily denominated in U.S. dollars, when inflation or deflation in our Mexican or Peruvian operations is not offset by a change in the exchange rate of the sol or the peso to the dollar, our financial position, results of operations and cash flows could be affected by local cost conversion when expressed in U.S. dollars. In addition, the dollar value of our net monetary assets denominated in soles or pesos can be affected by an exchange rate variance of the sol or the peso, resulting in a re-measurement gain or loss in our financial statements. Recent inflation and exchange rate variances are provided in the table below for the three-month and six-month periods ended June 30, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ June 30, ​ ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Peru: ​ ​ ​ ​ Peruvian inflation rate 0.6 % 0.4 % 3.8 % 1.3 % Initial exchange rate 3.495 3.677 3.386 3.770 Closing exchange rate 3.415 3.549 3.415 3.549 Appreciation/(devaluation) 2.3 % 3.5 % (0.9) % 5.9 % Mexico: ​ ​ ​ ​ Mexican inflation rate (0.3) % 0.9 % 1.5 % 1.8 % Initial exchange rate 18.067 20.318 17.967 20.268 Closing exchange rate 17.470 18.893 17.470 18.893 Appreciation/(devaluation) 3.3 % 7.0 % 2.8 % 6.8 % ​ Change in monetary position: ​ Assuming an exchange rate variance of 10% at June 30, 2026, we estimate our net monetary position in Peruvian sol and Mexican peso would increase (decrease) our net earnings as follows: ​ ​ ​ ​ ​ ​ ​ ​ Effect in net ​ earnings ​ ($ in millions) Appreciation of 10% in U.S. dollar vs. Peruvian sol ​ $ 30.3 Devaluation of 10% in U.S. dollar vs. Peruvian sol ​ $ (37.1) Appreciation of 10% in U.S. dollar vs. Mexican peso ​ $ 9.9 Devaluation of 10% in U.S. dollar vs. Mexican peso ​ $ (12.1) ​ Open sales risk: ​ Our provisional copper and molybdenum sales contain an embedded derivative that is required to be separate from the host contract for accounting purposes. The host contract is the receivable from the sale of copper and molybdenum concentrates at prevailing market prices at the time of the sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to settlement. See Note 13 to our condensed consolidated financial statements for further information about these provisional sales. ​ 63 Table of Contents Short-term Investments: ​ For additional information on our trading securities and available-for-sale investments, refer to “Short-term Investments” in Part I, Item 1 of this quarterly report on Form 10-Q for the period ended June 30, 2026. ​ Cautionary Statement: ​ Forward-looking statements in this report and in other Company statements include statements regarding expected commencement dates of mining or metal production operations, projected quantities of future metal production, anticipated production rates, operating efficiencies, costs and expenditures as well as projected demand or supply for the Company’s products. Actual results could differ materially depending upon factors including the risks and uncertainties relating to general U.S. and international economic and political conditions, the cyclical and volatile prices of copper, other commodities and supplies, including fuel and electricity, availability of materials, insurance coverage, equipment, required permits or approvals and financing, the occurrence of unusual weather or operating conditions, lower than expected ore grades, water and geological problems, the failure of equipment or processes to operate in accordance with specifications, failure to obtain financial assurance to meet closure and remediation obligations, labor relations, litigation and environmental risks as well as political and economic risk associated with foreign operations. Results of operations are directly affected by metal prices on commodity exchanges that can be volatile. ​ ​ ​ ​ ​ 64 Table of Contents