| SEGMENT AND RELATED INFORMATION: |
NOTE 14 — SEGMENT AND RELATED INFORMATION: Company management views Southern Copper as having three reportable segments and manages it on the basis of these segments. The reportable segments identified by the Company are: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations segment identified as the IMMSA unit. The three reportable segments identified are groups of mines, each of which constitute an operating segment, with similar economic characteristics, types of products, processes and support facilities, similar regulatory environments, similar employee bargaining contracts and similar currency risks. In addition, each mine within the individual group earns revenues from similar types of customers for their products and services and each group incurs expenses independently, including commercial transactions between groups. Financial information is regularly prepared for each of the three segments and the results of the Company’s operations are regularly reported to the Chief Operating Decision Maker (“CODM”) on the segment basis. The CODM of the Company focuses on operating income and on total assets as measures of performance to evaluate different segments and to make decisions to allocate resources to the reported segments. These are common measures in the mining industry. Financial information relating to Southern Copper Corporation’s segments is as follows: | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2025 | | | (in millions) | | | | | Mexican | | | | | | | | Corporate, other | | | | | | Mexican | | IMMSA | | Peruvian | | Segment | | and | | | | | | Open-pit | | Unit | | Operations | | Total | | eliminations | | Consolidated | Net sales to external customers | | $ | 1,749.4 | | $ | 106.5 | | $ | 1,266.0 | | $ | 3,121.9 | | $ | — | | $ | 3,121.9 | Intersegment sales | | | | | | 48.9 | | | | | | 48.9 | | | (48.9) | | | 0.0 | Cost of sales (exclusive of depreciation, amortization and depletion) | | | 668.0 | | | 112.0 | | | 597.1 | | | 1,377.2 | | | (58.0) | | | 1,319.2 | Selling, general and administrative | | | 16.9 | | | 2.7 | | | 9.0 | | | 28.7 | | | 3.0 | | | 31.7 | Depreciation, amortization and depletion | | | 97.7 | | | 19.8 | | | 94.5 | | | 212.0 | | | 11.7 | | | 223.8 | Exploration | | | 1.3 | | | 2.4 | | | 3.8 | | | 7.5 | | | 4.2 | | | 11.7 | Operating income | | $ | 965.5 | | $ | 18.4 | | $ | 561.5 | | $ | 1,545.5 | | $ | (9.9) | | | 1,535.5 | Less: | | | | | | | | | | | | | | | | | | | Interest, net | | | | | | | | | | | | | | | | | | (43.2) | Other income (expense) | | | | | | | | | | | | | | | | | | (13.7) | Income before income taxes | | | | | | | | | | | | | | | | | $ | 1,478.5 | Capital investment | | $ | 134.6 | | $ | 21.4 | | $ | 160.1 | | $ | 316.1 | | $ | 1.7 | | $ | 317.8 | Property and mine development, net | | $ | 4,951.1 | | $ | 794.9 | | $ | 3,816.9 | | $ | 9,562.9 | | $ | 371.7 | | $ | 9,934.6 | Total assets | | $ | 9,185.2 | | $ | 1,214.5 | | $ | 5,295.6 | | $ | 15,695.3 | | $ | 4,096.0 | | $ | 19,791.2 |
| | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2024 | | | (in millions) | | | | | Mexican | | | | | | | | Corporate, other | | | | | | Mexican | | IMMSA | | Peruvian | | Segment | | and | | | | | Open-pit | | Unit | | Operations | | Total | | eliminations | | Consolidated | Net sales to external customers | | $ | 1,466.0 | | $ | 105.1 | | $ | 1,028.7 | | $ | 2,599.8 | | $ | — | | $ | 2,599.8 | Intersegment sales | | | — | | | 41.3 | | | | | | 41.3 | | | (41.3) | | | — | Cost of sales (exclusive of depreciation, amortization and depletion) | | | 594.6 | | | 129.7 | | | 474.6 | | | 1,198.9 | | | (41.3) | | | 1,157.6 | Selling, general and administrative | | | 17.1 | | | 2.6 | | | 9.4 | | | 29.1 | | | 1.8 | | | 30.8 | Depreciation, amortization and depletion | | | 99.7 | | | 19.2 | | | 81.4 | | | 200.3 | | | 8.7 | | | 209.0 | Exploration | | | 3.6 | | | 1.8 | | | 5.8 | | | 11.2 | | | 1.5 | | | 12.7 | Operating income | | $ | 751.0 | | $ | (6.8) | | $ | 457.5 | | $ | 1,201.7 | | $ | (12.0) | | | 1,189.7 | Less: | | | | | | | | | | | | | | | | | | | Interest, net | | | | | | | | | | | | | | | | | | (53.2) | Other income (expense) | | | | | | | | | | | | | | | | | | 19.0 | Income before income taxes | | | | | | | | | | | | | | | | | $ | 1,155.5 | Capital investment | | $ | 107.1 | | $ | 31.8 | | $ | 70.5 | | $ | 209.4 | | $ | 4.4 | | $ | 213.8 | Property and mine development, net | | $ | 4,836.2 | | $ | 765.0 | | $ | 3,771.2 | | $ | 9,372.4 | | $ | 410.8 | | $ | 9,783.2 | Total assets | | $ | 9,242.2 | | $ | 1,193.0 | | $ | 5,353.1 | | $ | 15,788.3 | | $ | 1,001.0 | | $ | 16,789.3 |
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