Southern Copper Corp (SCCO) 2023 Q2 法說會逐字稿

Good morning, and welcome to Southern Copper Corporation's Second Quarter 2023 Results Conference Call.

早上好，歡迎參加南方銅業公司 2023 年第二季度業績電話會議。

With us this morning, we have Southern Copper Corporation's Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter 2023 as well as answer any questions that you may have.

今天早上，南方銅業公司的財務副總裁、財務主管兼首席財務官 Raul Jacob 先生將與我們一起討論公司 2023 年第二季度的業績，並回答您可能提出的任何問題。

The information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements. Southern Copper Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

今天的電話會議討論的信息可能包括有關公司業績和前景的前瞻性陳述，這些陳述存在風險和不確定性。實際結果可能存在重大差異，公司警告不要過度依賴這些前瞻性陳述。南方銅業公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來事件還是其他原因。

All results are expressed in full U.S. GAAP.

所有結果均以完整的美國公認會計原則表示。

Now I will pass the call to Mr. Raul Jacob.

現在我將把電話轉給勞爾·雅各布先生。

Thank you very much, Carmen. Good morning, everyone, and welcome to Southern Copper's Second Quarter of 2023 Results Conference Call. At today's conference, I'm joined by Mr. Oscar Gonzalez Rocha, CEO of Southern Copper and Board Member; as well as Mr. Leonardo Contreras, also a fellow Board Member.

非常感謝你，卡門。大家早上好，歡迎參加南方銅業 2023 年第二季度業績電話會議。出席今天的會議的還有南方銅業公司首席執行官兼董事會成員 Oscar Gonzalez Rocha 先生；以及同為董事會成員的 Leonardo Contreras 先生。

In today's call, we will begin with an update on our view of the copper market and then review Southern Copper's key results related to production, sales, operating cost, financial results, expansion projects and ESG. After this, we will open the session for questions.

在今天的電話會議中，我們將首先介紹我們對銅市場的最新看法，然後回顧南方銅業在生產、銷售、運營成本、財務業績、擴張項目和 ESG 方面的主要業績。之後，我們將開始提問環節。

Now let us focus on the copper market. In the second quarter of this year, the London Metal Exchange copper price decreased 11% from an average of $4.32 per pound in the second quarter of 2022, down to $3.85 per pound at the close in average for the second quarter. This reflects concerns about the impact of a slowdown of the Chinese economy, a possible recession in Europe and a soft landing or minor recession in the U.S. Current prices for copper at around $3.90 per pound, reflecting a less optimistic market than that seen in the last few quarters.

現在讓我們關注銅市場。今年第二季度，倫敦金屬交易所銅價較2022年第二季度平均每磅4.32美元下跌11%，降至第二季度收盤時平均每磅3.85美元。這反映出對中國經濟放緩、歐洲可能出現衰退以及美國軟著陸或小幅衰退影響的擔憂。目前銅價約為每磅 3.90 美元，反映出市場不如去年那麼樂觀幾個季度。

At this point, we see the following factors affecting the copper market: a reduction in global inflation, which may portend the end of the interest rate hike cycle led by the Fed and the ECB; a strong recovery of mining production of Peru, who have a 19% growth for the period January-May of this year. This is reducing the uncertainty on current production.

目前，我們看到以下因素影響銅市：全球通脹下降，可能預示著美聯儲和歐洲央行主導的加息週期結束；秘魯礦業生產強勁復甦，今年1-5月增長19%。這減少了當前生產的不確定性。

Chile is still lagging with a 5% reduction in copper production for the same period. Investments for future growth are still affected by expectations of economic changes in Chile and social unrest in Peru. These 2 countries, as you know, represent about 40% of the global supply. The most relevant market intelligent houses for the copper market are now expecting a market in surplus of about 100,000 tons for this year. This assumes a growth in demand of about 1% this year and also about the same level for the supply.

智利同期銅產量下降 5%，仍落後於其他國家。未來增長投資仍受到智利經濟變化預期和秘魯社會動蕩的影響。如您所知，這兩個國家約佔全球供應量的 40%。銅市場最相關的市場專家目前預計今年市場過剩量約為10萬噸。假設今年需求增長約 1%，供應水平也大致相同。

Low copper inventories is another factor that is affecting the copper market. At the closing of March 31 -- or as of March 31, this -- the sum of the London Metal Exchange, the COMEX Exchange, the Shanghai warehouse and the bundled warehouses in China add up to 411,000 tons of copper in inventories. That number has dropped to about 235,000 tons. This 42% reduction in inventories represents the largest dip since 2005. It is important to emphasize that copper plays a leading role in the global shift to clean energy, which correlates positively with our assertion that the underlying demand for copper will be strong in the long term.

銅庫存低是影響銅市場的另一個因素。截至3月31日收盤，即截至3月31日，倫敦金屬交易所、COMEX交易所、上海倉庫以及中國捆綁倉庫的銅庫存總計為41.1萬噸。這一數字已降至約 235,000 噸。庫存下降 42% 是自 2005 年以來的最大降幅。需要強調的是，銅在全球向清潔能源轉型中發揮著主導作用，這與我們關於銅的潛在需求在長期內將保持強勁的觀點正相關。學期。

Now let's look at Southern Copper's production for the past quarter. Copper represented 78% of our sales in the second quarter of 2023. Copper production registered an increase of 9% in the second quarter in a quarter-on-quarter terms to stand at 227,533 tons. Our quarterly result reflects a 20% increase in production in Peru, driven by higher recoveries, the return to full capacity -- full operating capacity of the Cuajone mine and higher ore grades at Toquepala. So the return of the Cuajone at full speed and higher ore grades and mineral production at Toquepala are the drivers of the growth of 20% in Peruvian production.

現在讓我們看看南方銅業上一季度的產量。 2023 年第二季度，銅占我們銷售額的 78%。第二季度銅產量環比增長 9%，達到 227,533 噸。我們的季度業績反映了秘魯產量增長了 20%，這是由於回收率提高、Cuajone 礦全面恢復運營以及 Toquepala 礦石品位提高的推動。因此，Cuajone 的全速回歸以及礦石品位的提高和托克帕拉的礦產產量是秘魯產量增長 20% 的驅動力。

Production at our Mexican operations increased 3% in a quarter-on-quarter terms. For 2023, we expect to produce 932,000 tons of copper, an increase of 4% over the 2022 final print. This growth will unfold as we get Peruvian production back on track and will be complemented with new production at our Mexican operations through our Pilares and Buenavista Zinc concentrator projects.

我們墨西哥工廠的產量環比增長 3%。 2023年，我們預計銅產量為93.2萬噸，較2022年最終產量增加4%。隨著我們使秘魯生產重回正軌，並將通過我們的 Pilares 和 Buenavista 鋅選礦項目在墨西哥業務中實現新的生產，這種增長將得以實現。

Molybdenum represented 11% of the company's sales value in the second quarter of this year and is currently our first by-product. Molybdenum prices averaged $20.80 per pound in the quarter compared to $18.30 in the second quarter of last year. This represents an increase of 14%.

鉬占公司今年第二季度銷售額的 11%，目前是我們的第一個副產品。本季度鉬平均價格為每磅 20.80 美元，而去年第二季度為每磅 18.30 美元。這意味著增長了 14%。

Molybdenum production increased by 0.2% in the second quarter compared to the same period of 2022. This was mainly driven by an increase in production at the Cuajone, Caridad and Buenavista mines due to higher ore grades at our Mexico operations and the Cuajone's return to full operating capacity. These results were partially offset by lower production at Toquepala mine. In 2023, we expect to produce 24,200 tons of molybdenum, which represents a decrease of 8% over our 2022 production level.

與 2022 年同期相比，第二季度鉬產量增長了 0.2%。這主要是由於我們墨西哥業務礦石品位較高以及 Cuajone 礦全面恢復生產，導致 Cuajone、Caridad 和 Buenavista 礦產量增加。經營能力。這些結果被托克帕拉礦產量下降部分抵消。 2023年，我們預計鉬產量為24,200噸，比2022年產量水平減少8%。

Silver represented 4% of our sales value in the second quarter of 2023 with an average price of $24.26 per ounce in the quarter, which reflected an increase of 7%. Silver is currently our second by-product. Mined silver production increased 8% in the second quarter versus the same period of 2022 after production rose at all our operations.

白銀佔 2023 年第二季度銷售額的 4%，該季度平均價格為每盎司 24.26 美元，增長了 7%。白銀目前是我們的第二副產品。在我們所有業務的產量增加後，第二季度礦銀產量比 2022 年同期增長了 8%。

Refined silver production fell by 31% quarter-on-quarter, and this was mainly driven by a drop in production at our IMMSA and La Caridad units. In 2023, we expect to produce 20 million -- 20.1 million ounces of silver, an increase of 8% compared to 2022 and 6% higher than the 19 million ounces produced in 2021.

精煉銀產量環比下降 31%，這主要是由於我們的 IMMSA 和 La Caridad 裝置產量下降所致。 2023年，我們預計白銀產量將達到2000萬至2010萬盎司，比2022年增加8%，比2021年生產的1900萬盎司增加6%。

Zinc represented 3% of our sales value in the second quarter of 2023 with an average price of $1.15 per pound in the quarter, which represents a 35% decrease with regard to the second quarter of 2022 figure. Zinc is currently our third by-product. Zinc mine production increased 14% quarter-on-quarter and totaled 17,223 tons. This was driven primarily by an increase in production at the Santa Barbara and Charcas mines.

鋅佔 2023 年第二季度銷售額的 3%，該季度平均價格為每磅 1.15 美元，較 2022 年第二季度下降 35%。鋅目前是我們的第三種副產品。鋅礦產量環比增長14%，總計17,223噸。這主要是由於聖巴巴拉和查卡斯礦山產量增加所致。

Refined zinc production increased by 10% in the second quarter vis-à-vis the second quarter of last year. For 2023, we expect to produce 108,000 tons of zinc, which represents an increase of 80% over our 2022 production level. This growth will be driven by the production and start-up of the Buenavista Zinc concentrator and by the recovery at the IMMSA mines where better ore grade areas has been identified. For 2024 and on, we expect to produce over 200,000 tons of zinc per year.

第二季度精煉鋅產量比去年第二季度增長了 10%。 2023 年，我們預計鋅產量為 108,000 噸，比 2022 年產量水平增加 80%。這一增長將由布埃納維斯塔鋅選礦廠的生產和啟動以及已確定礦石品位更好的 IMMSA 礦山的恢復推動。 2024 年及以後，我們預計每年鋅產量將超過 20 萬噸。

Financial results. For the second quarter of 2023, sales were $2.3 billion. This is almost the same that we sold in the second quarter of 2022. Copper sales volume increased by 12%, while value decreased 1% in a scenario of prices lower by 11%.

財務業績。 2023 年第二季度銷售額為 23 億美元。這與我們在 2022 年第二季度的銷售量幾乎相同。銅銷量增長了 12%，而在價格下跌 11% 的情況下，價值下降了 1%。

Regarding our main by-products, we reported higher sales of molybdenum that grew 28% due to better prices. Zinc sales, in turn, were down 22% due mainly to -- due to lower prices because we had a volume increase of 13% in silver -- excuse me, on zinc sales. Silver sales were down due to a decrease in volume, which was partially offset by better prices.

關於我們的主要副產品，由於價格上漲，我們的鉬銷量增長了 28%。反過來，鋅銷量下降了 22%，主要是由於——由於我們的白銀銷量增加了 13%，導致價格下降——對不起，是鋅銷量。白銀銷量因數量減少而下降，但價格上漲部分抵消了這一影響。

Our total operating cost and expenses decreased by $98 million or 7% when compared to the second quarter of last year. The main cost reductions were reported for workers' participation, purchased copper and other factors. These cost reductions were partially offset by higher costs for repair materials, operating materials, inventory consumption, labor cost and operation contractors and services. It should be noted that year-to-date, we registered unit cost reductions for grinding media, explosives and power costs.

與去年第二季度相比，我們的總運營成本和費用減少了 9800 萬美元，即 7%。據報告，成本降低主要是由於工人參與、購買銅等因素。這些成本降低被修理材料、運營材料、庫存消耗、勞動力成本以及運營承包商和服務的成本上升部分抵消。值得注意的是，今年迄今為止，我們的研磨介質、炸藥和電力成本的單位成本有所下降。

Our second quarter of 2023 EBITDA was $1,115 million, which represents an increase of 9% with regard to the $1,021 million registered in the second quarter of last year. The EBITDA margin in the second quarter stood at 48% versus 44% in the second quarter of 2022. EBITDA in the 6 months of this year was $2,683 million. This is 1% lower than the same -- and EBITDA for the 6 months of 2022. The EBITDA margin in the 6 months of this year stood at 53%, which was the same as the 2022 mark.

2023 年第二季度 EBITDA 為 11.15 億美元，較去年第二季度的 10.21 億美元增長 9%。第二季度的 EBITDA 利潤率為 48%，而 2022 年第二季度為 44%。今年 6 個月的 EBITDA 為 26.83 億美元。這比 2022 年 6 個月的 EBITDA 低 1%。今年 6 個月的 EBITDA 利潤率為 53%，與 2022 年持平。

Operating cash cost per pound of copper before by-product credits was $2.19 per pound in the second quarter of this year. That is $0.10 higher than the value for the first quarter of this year, which was $2.09. Even though copper production volumes increased 2% between the second quarter and the first quarter, a 5% increase in operating cash cost is attributable to higher cost per pound from production cost, treatment and refining charges and to lower premium.

今年第二季度，扣除副產品抵免前，每磅銅的運營現金成本為每磅 2.19 美元。這比今年第一季度的 2.09 美元高出 0.10 美元。儘管第二季度與第一季度的銅產量增長了 2%，但由於生產成本、處理和精煉費用的每磅成本增加以及溢價降低，運營現金成本增加了 5%。

Regarding our by-products, we had a total credit of $517 million or $1.07 per pound in the second quarter of 2023. These figures represent a 20% decrease when compared to the credit of $631 million or $1.33 per pound that we had in the first quarter of 2023.

關於我們的副產品，2023 年第二季度我們的信貸總額為 5.17 億美元，即每磅 1.07 美元。與第一季度的信貸總額 6.31 億美元，即每磅 1.33 美元相比，這些數字下降了 20% 2023 年第四季度。

By-product volumes increased for zinc, 14%; for silver, 9%; but decreased for molybdenum by 2%. Prices have decreased for molybdenum, 35%; for zinc, 19%; and increased for silver by 8%. As a consequence, total credits have decreased for all of our by-products.

鋅副產品產量增加 14%；白銀為 9%；但鉬則下降了 2%。鉬價格下跌 35%；鋅為19%；白銀上漲 8%。因此，我們所有副產品的總積分都減少了。

Southern Copper operating cash cost, including the benefit of by-product credits, was $1.12 per pound in the second quarter of this year. This cash cost was $0.36 higher than the cash cost of $0.76 registered in the first quarter of 2023. And as you have noticed, mainly we had a $0.05 increase in cash cost -- a 5% increase in operating cash cost, but a significant reduction in by-product credit, and that basically explains the main change that we have in the cash cost.

今年第二季度，南方銅業的運營現金成本（包括副產品信貸的收益）為每磅 1.12 美元。該現金成本比 2023 年第一季度記錄的 0.76 美元現金成本高出 0.36 美元。正如您所注意到的，我們的現金成本主要增加了 0.05 美元——運營現金成本增加了 5%，但顯著減少副產品信貸，這基本上解釋了我們現金成本的主要變化。

2023 net income was [$547 million], which represents a 27% increase with regard to the $432 million registered in the second quarter of 2022. The net income margin of the second quarter stood at 24% versus 19% in the second quarter of 2022. This increase was mainly the result of a 7% reduction in operating costs, which was mainly attributable to a decrease in lower third-party copper concentrate purchases. On a year-on-year basis, net income was 12% higher than in 2022 for similar reasons.

2023 年淨利潤為 [5.47 億美元]，較 2022 年第二季度的 4.32 億美元增長 27%。第二季度淨利潤率為 24%，而 2022 年第二季度為 19%這一增長主要是由於運營成本下降了7%，而運營成本下降主要是由於第三方銅精礦採購量減少所致。出於類似原因，淨利潤比 2022 年同比增長了 12%。

SCC's second quarter of 2023 net income fell below the $813 million reported in the first quarter of 2023. This dynamic reflects significant differences in copper prices in the period-over-period comparison. In the second quarter of 2023, copper sales dropped $365 million due to lower price. That alone represented an adjustment of $213 million.

SCC 2023 年第二季度淨利潤低於 2023 年第一季度報告的 8.13 億美元。這一動態反映了銅價與同期相比的顯著差異。 2023 年第二季度，由於價格下跌，銅銷售額下降了 3.65 億美元。僅此一項就意味著 2.13 億美元的調整。

Volume decreased 4%, volume of sales -- or sales volume, I should say, decreased by 4%, and that's another $92 million. And we had an adjustment -- an accounting adjustment on open sales for 104,000 tons of copper that represents about $59 million.

銷量下降了 4%，銷量——我應該說銷量下降了 4%，又增加了 9200 萬美元。我們進行了一項調整——對 104,000 噸銅的公開銷售進行了會計調整，價值約為 5900 萬美元。

For the second half of this year, we have a very positive view on the company's sales volumes. And we are expecting that looking at our current operation plans, the ramping up of the new zinc concentrator in Buenavista and the Pilares project, we're expecting to produce 481,300 tons of copper, 11,400 tons of molybdenum, 76,000 tons of zinc and 10.9 million ounces of silver. An uptick in production for copper, zinc and silver in the second half of this year should support our sales through this period.

對於今年下半年，我們對公司的銷量持非常積極的看法。我們預計，根據我們目前的運營計劃、布埃納維斯塔新鋅選礦廠和皮拉雷斯項目的擴產，我們預計將生產 481,300 噸銅、11,400 噸鉬、76,000 噸鋅和 1090 萬噸。盎司銀。今年下半年銅、鋅和銀產量的增加應該會支撐我們這一時期的銷售。

Cash from operations. Cash flow from operating activities in the 6 months of this year was $1,982 million, which represents an increase of 75% over the $1,131 million posted in the 6 months of last year. Cash flow in the first half was affect -- of last year was affected by a significant reduction in working capital, which was attributable to the Cuajone mine stoppage.

經營活動產生的現金。今年 6 個月的經營活動現金流量為 19.82 億美元，比去年 6 個月的 11.31 億美元增長了 75%。上半年的現金流受到影響——去年的現金流受到營運資金大幅減少的影響，這是由於 Cuajone 礦停產造成的。

Our current capital investment program for this decade exceeds $15 billion and includes investments in the Buenavista Zinc, Pilares, El Pilar and El Arco projects in Mexico and in the Tia Maria, Los Chancas and Michiquillay projects in Peru. This capital forecast includes several infrastructure investments, including key investments to bolster the competitiveness of the El Arco project.

我們當前十年的資本投資計劃超過 150 億美元，包括對墨西哥的 Buenavista Zinc、Pilares、El Pilar 和 El Arco 項目以及秘魯的 Tia Maria、Los Chancas 和 Michiquillay 項目的投資。該資本預測包括多項基礎設施投資，其中包括增強 El Arco 項目競爭力的關鍵投資。

Since there is a short description of our main capital projects in SCC's press release, I'm going to update new developments for each of them. For the Mexican projects, in the case of the Buenavista Zinc concentrator in Sonora, this is a project that is located within the Buenavista deposit where, as you know, we have built a new concentrator. This facility has a production capacity of 100,000 tons of zinc and 20,000 tons of copper per year. The capital budget of the project is $416 million, most of which has already been invested. Progress is 98%, and we have initiated vacuum testing at the plant and expect to initiate operations in August of this year.

由於 SCC 的新聞稿中對我們的主要資本項目進行了簡短描述，因此我將更新每個項目的新進展。對於墨西哥項目，以索諾拉州的布埃納維斯塔鋅選礦廠為例，該項目位於布埃納維斯塔礦床內，如您所知，我們在那裡建造了一個新的選礦廠。該工廠的生產能力為每年10萬噸鋅和2萬噸銅。該項目的資本預算為4.16億美元，其中大部分已投入。進度為 98%，我們已在工廠啟動真空測試，預計今年 8 月開始運營。

For the project Pilares, also in Sonora, the budget for Pilares is $176 million, of which $131 million has been invested. Pilares is currently operating and delivering copper mineral to the facilities of the La Caridad operation.

同樣位於索諾拉州的 Pilares 項目，Pilares 的預算為 1.76 億美元，其中已投資 1.31 億美元。 Pilares 目前正在運營並向 La Caridad 運營設施運送銅礦物。

In the case of El Pilar, the results from experimental pads in the leaching process have confirmed adequate levels of copper recovery. Basic engineering study has been completed, and the company continues to develop the project and engage in on-site environmental activities. Project engineering is being developed by top-tier engineering and technology firms. We expect production to begin in 2025, and mine life is estimated at 13 years.

就 El Pilar 而言，浸出過程中的實驗墊的結果證實了銅的回收率達到了足夠的水平。基礎工程研究已完成，公司將繼續開發項目並從事現場環保活動。項目工程由頂級工程和技術公司開發。我們預計將於 2025 年開始生產，礦山壽命預計為 13 年。

El Arco, which is a project in Baja California, the company has completed the environmental baseline study for the mine, concentrator and industrial facilities, and will proceed to submit the Environmental Impact Statement or Manifestacion de Impacto Ambiental, MIA, to the Secretary of Environment and Natural Resources, SEMARNAT, to request the respective environmental impact permits. The company is currently preparing studies for the port, power pipelines, town sites and auxiliary facilities.

El Arco是位於下加利福尼亞州的一個項目，該公司已完成礦山、選礦廠和工業設施的環境基線研究，並將繼續向環境部長提交環境影響報告書或Manifestacion de Impacto Ambiental，MIA自然資源部、SEMARNAT ，請求相應的環境影響許可證。該公司目前正在準備港口、電力管道、城鎮用地和附屬設施的研究。

For the Peruvian projects, for Tia Maria, Southern Copper has been consistently working to promote the welfare of the population of the Islay province. As part of these efforts, we have implemented successful social programs in education, health care and productive development to improve the quality of life in the region. We have also promoted agricultural and livestock activities in the Tambo Valley and supported growth in manufacturing, fishing and tourism in Islay.

對於秘魯項目，對於 Tia Maria，南方銅業一直致力於促進艾萊島省人民的福祉。作為這些努力的一部分，我們在教育、醫療保健和生產發展方面實施了成功的社會計劃，以提高該地區的生活質量。我們還促進了坦博谷的農業和畜牧業活動，並支持艾萊島製造業、漁業和旅遊業的增長。

The Los Chancas project in the Apurimac region in Peru, as of June 30 of this year, part of the project's land continued to be occupied by illegal miners, about 75 of them -- of those persons have irregularly registered their stakes in the Integral Registry of Mining Formalization or known as REINFO. The company requested and the authority subsequently ordered that the aforementioned miners be excluded from REINFO and be qualified as illegal miners. The company has also filed criminal complaints and other legal remedies to physically expel the illegal miners from the project and confiscated illegal mined ore.

秘魯阿普里馬克地區的Los Chancas項目，截至今年6月30日，該項目的部分土地繼續被非法採礦者佔用，其中約有75人——這些人已在整體登記處違規登記其股份採礦正規化或稱為REINFO。該公司要求當局隨後下令將上述礦工排除在 REINFO 之外，並認定其為非法礦工。該公司還提起刑事訴訟和其他法律補救措施，將非法採礦者逐出項目，並沒收非法開采的礦石。

The third project that we have in Peru is the Michiquillay project in the Cajamarca region. In 2023, in accordance with our social agreements with the Michiquillay and La Encañada communities, the company has hired unskilled labor and is paying for the use of surface land. We're also supporting social programs in both communities. In addition, we continue exploration activities on this project. And currently, we have installed 10 drilling platforms.

我們在秘魯的第三個項目是卡哈馬卡地區的 Michiquillay 項目。到 2023 年，根據我們與 Michiquillay 和 La Encañada 社區簽訂的社會協議，該公司已僱用非熟練勞動力並支付地表使用費。我們還支持這兩個社區的社會項目。此外，我們還將繼續對該項目進行勘探活動。目前，我們已經安裝了10個鑽井平台。

For environmental, social and governance, or ESG investments, Southern Copper is committed to improving its ESG record by adopting best practices and informing the investment community and other stakeholders about our progress in these matters. For risk prevention and management of risk, by the second quarter of the year, all of Southern Copper's operating units had hit a milestone set in 2018 to obtain the ISO 14001 certification for environmental management and the ISO 45001 for occupational health and safety management.

對於環境、社會和治理或 ESG 投資，南方銅業致力於通過採用最佳實踐並向投資界和其他利益相關者通報我們在這些問題上的進展來改善其 ESG 記錄。在風險防範和風險管理方面，截至今年第二季度，南銅所有運營單位均實現了2018年設定的里程碑，獲得了ISO 14001環境管理認證和ISO 45001職業健康安全管理認證。

Our efforts to prevent environmental and security risks are supported by our ISO systems and reflect our alignment with best international practices. The aforementioned represents a significant step in our quest to obtain accreditation for responsible copper production in the framework of The Copper Mark certification.

我們為預防環境和安全風險所做的努力得到了 ISO 體系的支持，並反映了我們與最佳國際實踐的一致性。上述內容是我們在銅標誌認證框架內尋求獲得負責任銅生產認證的重要一步。

We continue to make progress in the development of our Critical Risk Registry. This tool strengthens environmental and safety risk management by increasing the visibility of these components at all levels of the organization. The registry creates a knowledge base for informed decision-making and ensures rigorous follow-up on controls for prevention and mitigation to avoid or respond to unwanted events.

我們在關鍵風險登記冊的開發方面繼續取得進展。該工具通過提高組織各級這些組件的可見性來加強環境和安全風險管理。該登記處為知情決策創建了一個知識庫，並確保嚴格跟進預防和緩解控制措施，以避免或應對意外事件。

This quarter, in line with our corporate environmental policy, we formalized our protocols for sustainable water management, biodiversity and closure of operations to establish our priorities and the means by which our operations address increasingly demanding environmental challenges.

本季度，根據我們的企業環境政策，我們正式製定了可持續水管理、生物多樣性和關閉運營的協議，以確定我們的優先事項以及我們的運營應對日益嚴峻的環境挑戰的方式。

In the ambit of biodiversity, in the second quarter of this year, we reforested 464 hectares in the state of Sonora in Mexico. This represents 10x the area affected in the period. With these effort, we have successfully met an objective set 2 years ago to reduce our historic environmental footprint by reversing the net loss of biodiversity and achieving a net positive impact for the area. In the first half of this year, the reforested area totaled 934 hectares, which is 5.6x the affected area year-to-date.

在生物多樣性方面，今年第二季度，我們在墨西哥索諾拉州重新造林了 464 公頃。這相當於該時期受影響面積的 10 倍。通過這些努力，我們成功實現了兩年前設定的目標，即通過扭轉生物多樣性的淨損失並對該地區產生淨積極影響來減少我們的歷史環境足跡。今年上半年，重新造林面積總計934公頃，是年初至今受影響面積的5.6倍。

The implementation and promotion of best practices such as the aforementioned has helped Southern Copper secure and maintain a place on the S&P Peru General ESG Sustainability Index of the Lima Stock Exchange. On April 28, 2023, Grupo Mexico issued its 2022 Sustainability Development Annual Report, which includes detailed information about Southern Copper's efforts on the social, environmental and corporate governance fronts.

上述最佳實踐的實施和推廣幫助南方銅業在利馬證券交易所標準普爾秘魯通用 ESG 可持續發展指數中獲得併保持了一席之地。 2023年4月28日，墨西哥集團發布了2022年可持續發展年度報告，其中詳細介紹了南方銅業在社會、環境和公司治理方面所做的努力。

Positive impact on the communities in which we operate. We have served more than 900 women from communities close to our operations in Southern Peru via our Community Wellbeing Program, which we conducted a mobile health campaign to prevent breast and uterine cancer.

對我們經營所在的社區產生積極影響。我們通過社區福祉計劃為秘魯南部業務附近社區的 900 多名婦女提供了服務，我們開展了一項流動健康運動來預防乳腺癌和子宮癌。

SCC has been recognized by the Peruvian state agency Pro Inversión for its execution of a drinking water and rural sanitation program in Poblado Yacango, district of Torata. This project, which has benefited 137 families, entailed an investment of $2.8 million. Similarly, in Mexico, we invested 5.6 -- $5.7 million this quarter to improve water distribution in Nacozari and Cananea, benefiting 53,800 residents.

SCC 因在托拉塔區 Poblado Yacango 執行飲用水和農村衛生項目而獲得秘魯國家機構 Pro Inversión 的認可。該項目投資280萬美元，使137個家庭受益。同樣，在墨西哥，我們本季度投資了 5.6 至 570 萬美元，用於改善納科扎里和卡納尼亞的供水，使 53,800 名居民受益。

The Youth Orchestras promoted by Southern Copper were recognized at the Mexican Polymetallic Seminar in 2023. These orchestras support 1,646 students in Mexico and Peru. Additionally, in collaboration with the Instituto de Cultura del Estado, we held our first exhibition of the Traveling Workshop for Documentary Film at the Cineteca in the state of Sonora in Mexico. During this event, 17 original short films were screened. They were produced by some of the 747 students for communities that participated in the workshop.

Southern Copper 推廣的青年管弦樂團在 2023 年墨西哥多金屬研討會上獲得認可。這些管弦樂團為墨西哥和秘魯的 1,646 名學生提供支持。此外，我們與國家文化研究所合作，在墨西哥索諾拉州的電影院舉辦了首屆紀錄片巡迴研討會展覽。本次活動共放映了17部原創短片。它們是由 747 名學生中的一些學生為參加研討會的社區製作的。

Regarding dividends, as you know, it is the company's policy to review our cash position, expected cash flow generation from operations, capital investment plans and other financial needs at each Board meeting to determine the appropriate quarterly dividend. Accordingly, as announced to the market on July 20, the Board of Directors authorized a cash dividend of $1 per share of common stock payable on August 23 to shareholders of record at the close of business on August 9 of this year.

關於股息，如您所知，公司的政策是在每次董事會會議上審查我們的現金狀況、預期運營現金流量、資本投資計劃和其他財務需求，以確定適當的季度股息。因此，正如 7 月 20 日向市場宣布的那樣，董事會授權於 8 月 23 日向今年 8 月 9 日收盤時在冊的股東派發每股普通股 1 美元的現金股息。

Ladies and gentlemen, with these comments, we would like to end our presentation today. Thank you very much for joining us, and we would like to now open up the forum for questions.

女士們、先生們，我們以這些評論結束今天的演講。非常感謝您加入我們，我們現在開放論壇供您提問。

(Operator Instructions) Our first question comes from the line of Matthew Murphy with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的馬修·墨菲（Matthew Murphy）。

Raul, thanks for your comments on the projects in the pipeline. I'm interested in Peru, your take on the situation. I guess we've seen the economy in contraction, but we've also seen a bit less disruption to the mining sector. So I guess the first part of the question is, are you seeing improvement in the mining sector's ability to operate in Peru? And the second part of that is just the implications for Tia Maria. You're still, I guess, waiting for the conditions locally and at the federal level to improve. And do you see scope for that to happen this year? And if nothing changes, could this project still be going forward in 2024?

Raul，感謝您對正在進行的項目的評論。我對秘魯感興趣，你對這種情況的看法。我想我們已經看到經濟萎縮，但我們也看到採礦業受到的干擾有所減輕。所以我想問題的第一部分是，您是否看到秘魯採礦業的運營能力有所改善？第二部分就是對蒂亞·瑪麗亞的影響。我想，你仍在等待當地和聯邦層面的情況改善。您認為今年有可能實現這一目標嗎？如果沒有任何變化，這個項目到 2024 年還能繼續進行嗎？

Okay. Let me -- thank you for your question, Matt. Well, first, let me say, as a general concept that social circumstance have improved in Peru. Politically speaking, we have -- we are seeing also a significant improvement. The police is doing their activities and on working with the companies to solve the problems that we have that require their intervention. In other cases, we're -- such as the case in Tia Maria, we are working with the local population. We believe that we have been making progress on this matter. And basically, we're relatively much more optimistic than what we were a year ago.

好的。讓我——謝謝你的問題，馬特。好吧，首先，讓我說，作為一個普遍概念，秘魯的社會環境有所改善。從政治上來說，我們也看到了顯著的進步。警方正在開展他們的活動，並與公司合作解決我們遇到的需要他們干預的問題。在其他情況下，我們正在與當地居民合作，例如蒂亞瑪麗亞的情況。我們相信我們在這個問題上一直在取得進展。基本上，我們比一年前相對樂觀得多。

As I mentioned, the copper production year-to-date has increased 19% in Peru. I should add that in May, the increase has been over 30%. And that is basically comparing a normal operation plus Quellaveco with last year where we had in May, we had Las Bambas' stoppage and the production at Cuajone coming back, but not as strong as we were anticipating at that time. So in general terms, circumstances have improved, and we're seeing Tia Maria moving forward slowly but doing so.

正如我提到的，秘魯的銅產量今年迄今已增長 19%。我要補充的是，5月份的增幅已經超過30%。這基本上是將正常運營加上 Quellaveco 與去年 5 月份的情況進行比較，Las Bambas 停工，Cuajone 生產恢復，但沒有我們當時預期的那麼強勁。因此，總的來說，情況有所改善，我們看到蒂亞·瑪麗亞正在緩慢地前進，但正在這樣做。

One moment for our next question, please, (Operator Instructions), and it comes from the line of Jens Spiess with Morgan Stanley.

請稍等一下我們的下一個問題（操作員說明），它來自摩根士丹利的 Jens Spiess。

I just wanted to ask on cash cost guidance for 2023, what do you expect before by-products for the year?

我只是想問一下 2023 年的現金成本指導，在今年的副產品之前您有何預期？

For the second quarter, we're expecting a better cash cost than what we have had in the first part of the year, and the reason for that is two-fold. We're seeing some cost reductions. I mentioned grinding media, explosives and some other materials. But on top of that, we have more production of copper for the second half of the year. That should improve our cost per pound before by-product credits. And also, we should have more credits coming from the volumes, the much better volumes that we're expecting for the second half of the year that I mentioned while doing the company presentation.

對於第二季度，我們預計現金成本將高於今年上半年，其原因有兩個。我們看到成本有所下降。我提到了研磨介質、炸藥和其他一些材料。但最重要的是，今年下半年我們的銅產量有所增加。這應該會提高我們在扣除副產品信用額之前的每磅成本。而且，我們應該從銷量中獲得更多的積分，我們預計下半年的銷量會好得多，正如我在做公司演示時提到的那樣。

Okay. And just to clarify, for silver, you expect 20.1 million ounces for 2023, is that what you said?

好的。澄清一下，對於白銀，您預計 2023 年白銀產量為 2010 萬盎司，是您所說的嗎？

Yes, let me repeat the volumes that I mentioned. For the second half, we're expecting to produce 481,300 tons of copper, 1,400 (sic) [11,400] tons of molybdenum, 76,000 tons of zinc and 10.9 million ounces of silver. That's for the second quarter. And I believe that your question was specifically for silver production for the year, right?

是的，讓我重複一下我提到的幾卷。下半年，我們預計將生產 481,300 噸銅、1,400（原文如此）[11,400] 噸鉬、76,000 噸鋅和 1090 萬盎司銀。這是第二季度的情況。我相信您的問題專門針對當年的白銀產量，對嗎？

Yes.

是的。

For the year, for silver, we're expecting 20 million -- 20.1 million ounces of silver.

今年，我們預計白銀產量為 2000 萬至 2010 萬盎司。

Okay. Perfect. And last one, are you factoring in any commercial production from Buenavista Zinc for this year or will be coming online until next year, mainly?

好的。完美的。最後一個問題，您是否考慮了布埃納維斯塔鋅公司今年的商業生產，或者主要是明年才會上線？

No, no, we're expecting to increase our zinc production coming from the new concentrator in Buenavista for about 43,000 tons of zinc.

不，不，我們預計布埃納維斯塔新選礦廠的鋅產量將增加約 43,000 噸。

43,000? Okay. Perfect.

43,000？好的。完美的。

43,000, yes, which, by the way, will come in with a very competitive cash cost, given the fact that the copper production of Buenavista will be absorbing the fixed cost. This production will basically enter our cost system at a very, very competitive value.

43,000，是的，順便說一句，鑑於布埃納維斯塔的銅生產將吸收固定成本，這將具有非常有競爭力的現金成本。這種生產基本上將以非常非常有競爭力的價值進入我們的成本系統。

One moment for our next question, please, and it comes from the line of Arthur Biscuola with Santander.

請稍等一下我們的下一個問題，它來自桑坦德銀行的亞瑟·比斯庫拉 (Arthur Biscuola)。

Just a follow-up on transaction. So your guidance is to reach a total corporate position of roughly 480,000 tons in the second half. But in your view, what would be the main risks for the company to not reach this guidance? And what is -- I mean, what is [worth the innovations] here? Also, what to expect in terms of third-party volumes into year-end?

只是交易的後續。所以你們的指導是下半年公司總持倉量達到大約48萬噸。但您認為，公司達不到這一指導的主要風險是什麼？我的意思是，這裡[值得創新]的是什麼？另外，到年底第三方銷量會如何？

I'm so sorry, Arthur, I couldn't get the second part of your question. Could you repeat, please?

很抱歉，亞瑟，我聽不懂你問題的第二部分。請問你可以重複一遍嗎？

Yes, sure. So I just want to know what to expect in terms of third-party volumes into year-end?

是的，當然。所以我只想知道年底第三方銷量會如何？

For the second half? We don't get copper...

下半場？我們沒有銅...

Yes, for the second half.

是的，下半場。

Yes, copper purchases from third parties will be basically 0. We are -- we will be -- we are long in copper concentrates now, and we want to process 100% of our copper in our own smelters.

是的，從第三方購買的銅將基本上為0。我們現在——我們將會——我們現在做多銅精礦，我們希望在我們自己的冶煉廠加工100%的銅。

Arthur, does that answer your question?

亞瑟，這能回答你的問題嗎？

Yes.

是的。

And Mr. Jacob, I don't see any further questions. I will pass it back to you for any final comments.

雅各布先生，我沒有看到任何其他問題。我會將其傳回給您以徵求最終意見。

Okay. Thank you very much...

好的。非常感謝...

There's one more that just showed up, if you want to pick it up?

還有一個剛剛出現，你想買嗎？

Please, please.

拜託，拜託。

One moment please, and it does come from the line of Matheus Moreira with Bradesco BBI.

請稍等一下，它確實來自 Matheus Moreira 和 Bradesco BBI 的血統。

So you mentioned copper production for this year at about 999,000 tons. Do we also have a guidance on copper production for next year and onwards?

所以你提到今年的銅產量約為99.9萬噸。我們是否還有明年及以後的銅產量指南？

Sure. Thank you very much for your question, Matheus. For this year, I'm going to repeat the goal for the year, for the full 2023 for all the metals, the relevant ones that we produce. For copper, for 2023, we're expecting to produce 932,000 tons; for molybdenum, 24,200 tons; for zinc, 108,000 tons; silver, 20.1 million ounces.

當然。非常感謝你的提問，馬修斯。今年，我將重申今年的目標，即 2023 年所有金屬，以及我們生產的相關金屬。對於銅，我們預計 2023 年產量為 932,000 噸；鉬24,200噸；鋅10.8萬噸；白銀，2010萬盎司。

With that, our expectation is that we should have a cash cost slightly lower than what we're seeing. Well, obviously, this is a continuing of by-product prices. Volumes, we know that we will be better in zinc and silver than what we were last year, I'm talking about the by-products. For copper, obviously, there is a 4% expected growth in production vis-à-vis 2022.

因此，我們的預期是我們的現金成本應該略低於我們所看到的。顯然，這是副產品價格的持續上漲。就產量而言，我們知道鋅和銀的產量將比去年更好，我說的是副產品。顯然，與 2022 年相比，銅產量預計將增長 4%。

For next year, we will have the positive full benefit of the zinc concentrator that has -- we expect to produce about 120,000 tons of zinc coming from the Buenavista Zinc concentrator, that's for next year. In total, for zinc next year, it's going to be 108,000 tons -- I'm sorry, 207 -- 208,000 tons. Let me please -- let me correct that, what I just said is 2,000 -- 8,000 tons for -- 208,000 tons for zinc.

明年，我們將充分受益於鋅選礦廠，我們預計布埃納維斯塔鋅選礦廠明年將生產約 120,000 噸鋅。明年的鋅總量將是 108,000 噸——對不起，是 207——208,000 噸。請允許我糾正一下，我剛才說的是 2,000 - 8,000 噸 - 208,000 噸鋅。

For silver, next year, it's going to be 27 million ounces; for molybdenum, 26,300 tons; and for copper, 1,026,000 tons. But let me repeat the forecast for 2024 at this point. For copper, 1,000 and 26,000 tons -- 1,026,000 tons; for molybdenum, 26,300 tons; for zinc, 208,000 tons; for silver, 27.1 million ounces, and that's basically it.

明年白銀的需求量將達到 2700 萬盎司；鉬26,300噸；銅1,026,000噸。但現在讓我重複一下對 2024 年的預測。銅1,000噸和26,000噸——1,026,000噸；鉬26,300噸；鋅20.8萬噸；白銀為 2710 萬盎司，基本上就是這樣。

And I am not showing any further questions, sir.

先生，我不會提出任何進一步的問題。

Okay. So with this, we conclude our conference call for Southern Copper's second quarter of 2023 results. We certainly appreciate your participation and hope to have you back with us when we report the third quarter of this year results.

好的。我們的南方銅業 2023 年第二季度業績電話會議到此結束。我們當然感謝您的參與，並希望在我們報告今年第三季度業績時再次與我們合作。

Thank you very much, and have a nice day.

非常感謝，祝您有愉快的一天。

Thank you. And with that, ladies and gentlemen, we thank you all for participating, and you may now disconnect.

謝謝。女士們先生們，我們感謝大家的參與，現在您可以斷開連接了。