Southern Copper Corp (SCCO) 2023 Q4 法說會逐字稿

Good day, and welcome to Southern Copper Corporation's Fourth Quarter and Year 2023 Results Conference Call. With us today, we have Southern Copper Corporation, Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the past quarter and year 2023 as well as answer any questions that you may have.

美好的一天，歡迎參加南方銅業公司 2023 年第四季和全年業績電話會議。今天，南方銅業公司財務副總裁、財務主管兼財務長 Raul Jacob 先生將與我們一起討論公司上一季和 2023 年的業績，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. All results are expressed in full U.S. GAAP.

今天的電話會議討論的資訊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聲明的義務，無論是由於新資訊、未來事件或其他原因。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 Fourth Quarter of 2023 and full year 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 Leonardo Contreras who is also a board member. 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.

非常感謝你，卡門。大家早安，歡迎參加南方銅業2023年第四季及2023年全年業績電話會議。出席今天的會議的還有南方銅業公司執行長兼董事會成員 Oscar Gonzalez Rocha 先生以及董事會成員 Leonardo Contreras。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、營運成本、財務表現、擴張項目和 ESG 方面的主要業績。之後，我們將開始提問環節。

Before we get into the details of this past quarter, I'd like to make some comments regarding the company results in 2023. Even though 2023 was a challenging year of Southern Copper, we believe the company achieved good results. 2023 net sales were $9,896 million. This is $152 million or 1.5% lower than 2022 net sales. This result was driven by higher sales volumes for copper of 2.2% and molybdenum of 2.3%, better prices for molybdenum by 28% and silver. This situation was partially offset by a decrease in metal prices for copper and zinc and by a reduction in the sales volume of silver and zinc.

在詳細介紹上一季的情況之前，我想對公司 2023 年業績發表一些評論。儘管 2023 年對南方銅業來說是充滿挑戰的一年，但我們相信公司取得了良好的業績。 2023 年淨銷售額為 98.96 億美元。這比 2022 年淨銷售額低 1.52 億美元，即 1.5%。這一結果是由銅銷量增加 2.2% 和鉬銷量增加 2.3%、鉬和銀價格上漲 28% 所推動的。這種情況被銅和鋅金屬價格下跌以及銀和鋅銷售減少部分抵消。

Net sales in 2023 were negatively impacted by a year accounting adjustment of $406 million for lower metal prices on sales. In addition to this, we estimate that 2023 sales were affected by a larger copper anode inventory in process at year-end. If we exclude these two effects, the sales for 2023 would have been 3% higher than the 2022 mark. The 2023 copper production increased 1.8% year-on-year to 911,000 tonnes of copper.

2023 年的淨銷售額受到因銷售金屬價格下跌而進行的 4.06 億美元年度會計調整的負面影響。除此之外，我們估計 2023 年的銷售受到年底在製品銅陽極庫存增加的影響。如果排除這兩種影響，2023 年的銷售額將比 2022 年高出 3%。 2023年銅產量年增1.8%至91.1萬噸銅。

The yearly result was mainly attributable to higher production at our Peruvian operations a result that was partially offset by a reduction in production of our Mexican operations, which was mainly fueled by a drop in mineral processing and recovery at the Buenavista mine. In the second half of last year, we experienced a reduction of fresh water at our Buenavista operation, which was generated by the fact that we lacked the permit we expect to receive for building a pipeline of approximately 20 kilometers to transport water from the wells to the operations and nearby townsites. For 2024, the company has decided to transport the water through other means to secure the supplies required to ensure that Buenavista can operate at full capacity for copper production and the ramp-up of new zinc concentrator operations.

年度業績主要歸因於我們秘魯業務的產量增加，但部分被我們墨西哥業務的產量減少所抵消，而墨西哥業務的產量減少主要是由於布埃納維斯塔礦的礦物加工和回收率下降所致。去年下半年，我們在布埃納維斯塔工廠經歷了淡水減少，這是因為我們缺乏預期獲得的建造一條約 20 公里管道將水從水井輸送到業務和附近的城鎮。到 2024 年，該公司決定以其他方式輸送水，以確保布埃納維斯塔能夠滿載生產銅和擴大新鋅選礦廠的營運所需的水量。

For our byproducts, molybdenum production totaled 26,836 tons in 2023, which was 2.3% higher than the figure of 2022. This increase was due to higher production at 3 of our 4 mines, the exception was Toquepala. Mine zinc production rose 9.2% year-on-year due to higher production at the Charcas and Santa Barbara man. Mined silver production was less than 1% in 2023, primarily driven by lower production at the Buenavista mine. This decrease was partially offset by higher production at our Peruvian operations.

對於我們的副產品，2023 年鉬產量總計 26,836 噸，比 2022 年增加 2.3%。這一增長是由於我們 4 個礦山中的 3 個礦山產量增加（托克帕拉除外）。由於查卡斯和聖塔芭芭拉礦產量增加，礦山鋅產量年增 9.2%。 2023 年，礦產白銀產量低於 1%，這主要是由於布埃納維斯塔礦產量下降所致。這一下降被我們秘魯工廠產量的增加部分抵消。

In 2023, the operating cash cost per pound of copper, including by-product revenue credits was $1.03, a $0.25 increase in cash cost reported versus $0.78 per pound in 2022 was mainly attributable to $0.17 per pound increase in the production cost and $0.08 in by-product revenue credits.

2023 年，每磅銅的營運現金成本（包括副產品收入抵免）為1.03 美元，與2022 年每磅0.78 美元相比，報告的現金成本增加了0.25 美元，主要歸因於生產成本每磅增加0.17美元，以及每磅銅增加0.08 美元。- 產品收入積分。

At this point, we believe we are seeing the end of the inflation-related cost. Our cash cost before by-product trade credits evolved from $2.09 per pound in the first quarter of 2023 to $2.23 per pound in the fourth quarter. It is important to note that levels were pretty stable through the second half of last year.

目前，我們相信通膨相關成本即將結束。我們在副產品貿易信貸之前的現金成本從 2023 年第一季的每磅 2.09 美元演變為第四季的每磅 2.23 美元。值得注意的是，去年下半年的水平相當穩定。

For 2024, we expect our cash cost before by-product credits to be $2.20 per pound. We expect zinc and silver to contribute positivity to growth in 2024 on the back of an uptick in volumes. For zinc, we expect a growing introduction of 80%, 80%. For silver, 13%. Nonetheless, we also expect molybdenum prices to remain at the level that they are now, which is about $19 per pound. In this scenario, all in company cash cost credit for 2024 will total $1.03 per count. Therefore, our cash cost after by-product credits is estimated at $1.17 per pound for this year 2024. This increase in value was driven primarily by a 13% reduction in by-product sales.

到 2024 年，我們預計副產品抵免前的現金成本為每磅 2.20 美元。我們預計，隨著產量的增加，鋅和銀將為 2024 年的成長做出積極貢獻。對於鋅，我們預計引入量將成長 80%、80%。對於白銀來說，為13%。儘管如此，我們也預期鉬價將維持在目前的水平，即每磅約 19 美元。在這種情況下，2024 年公司的所有現金成本抵免額將總計為每次 1.03 美元。因此，2024 年扣除副產品抵扣後的現金成本預計為每磅 1.17 美元。這一價值增長主要是由於副產品銷售額減少 13%。

Adjusted EBITDA in 2023 was $5,029 million. This is 6% lower or $320 million below the figure of 2022. The drop in adjusted EBITDA year-on-year was primarily attributable to a reduction in sales equivalent to $152 million, a $113 million nonrecurring variance in other income due to 2022 insurance and tax refunds and a $54 million uptick in operating costs. The adjusted EBITDA margin in 2023 was 50.8% versus 53.2% in 2022.

2023 年調整後 EBITDA 為 50.29 億美元。這比 2022 年的數字低了 6%，即 3.2 億美元。調整後 EBITDA 年比下降的主要原因是銷售額減少了 1.52 億美元，以及 2022 年保險和其他收入造成的 1.13 億美元非經常性差異退稅和營運成本增加5400 萬美元。 2023 年調整後 EBITDA 利潤率為 50.8%，而 2022 年為 53.2%。

For net income, last year, we had $2,425 million, that's 8% lower than the mark for 2022. The net income margin was 24.5% last year versus 26.3% in 2022.

就淨利潤而言，去年我們的淨利潤為 24.25 億美元，比 2022 年的水準低 8%。去年的淨利潤率為 24.5%，而 2022 年為 26.3%。

Now let us focus on the copper market. The London Metal Exchange copper price increased 2.2% from an average of $3.63 per pound in the fourth quarter of 2022, up to $3.71 per pound in the fourth quarter of 2023. At the beginning of last quarter, we were expecting a market surplus for this year. However, after a significant reduction in copper production was announced by some producers, market expectations for surplus ceased and were replaced by concerns about potential deficits due to the extremely low available inventory. Even though there are significant uncertainties this year for the world economy, such as the slow recovery of China, a recession in Europe and a soft landing or minor recession in the U.S., we believe copper prices should have good support through 2024.

現在讓我們關注銅市場。倫敦金屬交易所銅價從 2022 年第四季的平均每磅 3.63 美元上漲 2.2%，上漲至 2023 年第四季的每磅 3.71 美元。上季初，我們預計該銅價將出現市場過剩。年。然而，在一些生產商宣布大幅削減銅產量後，市場對過剩的預期不再，取而代之的是對由於可用庫存極低而導致的潛在短缺的擔憂。儘管今年世界經濟存在重大不確定性，例如中國緩慢復甦、歐洲衰退以及美國軟著陸或小幅衰退，但我們認為銅價在2024年之前應該會受到良好支撐。

Now let's look at Southern Copper's production for the past quarter. For copper, it represented 77.8% of our sales in the fourth quarter of last year. Copper production registered a decrease of 3% in the fourth quarter in a quarter-on-quarter terms to stand at 234,089 tonnes. Our quarterly results reflect a 9.6% decrease in production in Mexico, driven by our Buenavista mine, which was partially offset by higher production at La Caridad mine due to better ore grades. Production at our Peruvian operations increased 6.6% in a quarter-on-quarter terms, which was mainly due to higher production at our Toquepala operations. Compared to the third quarter of last year, copper production increased 3.5%, which was mainly attributable to higher production at the Cuajone, Toquepala and Caridad mine.

現在讓我們來看看南方銅業上一季的產量。就銅而言，它占我們去年第四季銷售額的 77.8%。第四季銅產量較上季下降3%至234,089噸。我們的季度業績反映出，在 Buenavista 礦場的推動下，墨西哥產量下降了 9.6%，但 La Caridad 礦場因礦石品位提高而產量增加，部分抵消了這一下降。秘魯工廠的產量較上季成長 6.6%，這主要是由於托克帕拉工廠的產量增加。與去年第三季相比，銅產量增加了3.5%，這主要歸功於Cuajone、Toquepala和Caridad礦的產量增加。

For this year, we expect to produce 936,000 tonnes of copper, an increase of 3% over the 2023 production. Last year, we drove our Pilares project to full capacity and initiated a ramp-up at the Buenavista zinc concentrator. For 2024, we expect these 2 projects to contribute with 44,000 tonnes of copper to our production.

今年，我們預計銅產量為 936,000 噸，比 2023 年產量增加 3%。去年，我們讓 Pilares 計畫滿載運轉，並啟動了 Buenavista 鋅選礦廠的產能提升。到 2024 年，我們預計這兩個項目將為我們的生產貢獻 44,000 噸銅。

Molybdenum represented 10% of the company's sales value in the fourth quarter of 2023 and is currently our best seller. Molybdenum prices averaged $18.41 per pound in the quarter compared to $21.17 in the fourth quarter of 2022. This represents a decrease of 13%. Molybdenum production increased 6.6% in the fourth quarter compared to the same quarter of 2022. This was mainly driven by an increase in production at Toquepala and Caridad mine due to higher ore grades in both operations. These results were partially offset by lower production at the Cuajone and Buenavista mine. Molybdenum production increased 2.3% year-on-year in 2023 after production grew at La Caridad, Cuajone and Buenavista. This was partially offset by lower production at Toquepala. For this year 2024, we expect to produce 25,500 tonnes of molybdenum.

鉬占公司 2023 年第四季銷售額的 10%，目前是我們最暢銷的產品。本季鉬平均價格為每磅 18.41 美元，而 2022 年第四季為每磅 21.17 美元。下降了 13%。與 2022 年同季相比，第四季鉬產量增加了 6.6%。這主要是由於 Toquepala 和 Caridad 礦的礦石品位較高而產量增加所致。這些結果被 Cuajone 和 Buenavista 礦產量下降部分抵消。繼 La Caridad、Cuajone 和 Buenavista 產量成長後，2023 年鉬產量年增 2.3%。這被托克帕拉產量下降部分抵消。 2024 年，我們預計鉬產量為 25,500 噸。

For silver, it represented 4.3% of our sales value in the fourth quarter of 2023, with an average price of $23.25 per ounce in the quarter, which reflected an increase of 9%. Silver is currently our second by-product. Mined silver production decreased 3.2% in the fourth quarter versus the same mark of 2022 after production reduced Buenavista and -- after production reduced in Buenavista and Cuajone. This was partially offset by higher production at the Toquepala, Caridad and in IMMSA operations. Refined production fell by 40% quarter-on-quarter, which was mainly driven by a drop in all of our refineries. And this, I'd like to comment that we're expecting -- we're having a different -- a change in commercial conditions and that has somehow altered the purchases of material for silver production at the refineries in Mexico.

對於白銀來說，它占我們 2023 年第四季銷售額的 4.3%，該季度的平均價格為每盎司 23.25 美元，成長了 9%。白銀目前是我們的第二副產品。在布埃納維斯塔產量減少以及布埃納維斯塔和誇霍內產量減少後，第四季度礦產銀產量與 2022 年同期相比下降了 3.2%。這被托克帕拉、Caridad 和 IMMSA 工廠產量的增加部分抵消。成品油產量較上季下降40%，主要是因為我們所有煉油廠產量下降所致。我想評論的是，我們預計——我們正在經歷一個不同的——商業條件的變化，這在某種程度上改變了墨西哥煉油廠白銀生產材料的採購。

In 2024, we expect to produce 20.7 million ounces of silver, an increase of 13% compared to 2023. Zinc represented 3.3% of our sales value in the fourth quarter of 2023. Zinc prices averaged $1.14 per pound in the quarter. This is a 17% decrease regarding the fourth quarter of 2022 figure. Zinc mined production increased 11% quarter-on-quarter and totaled 16,930 tonnes. This was driven primarily by an increase in production at the Santa Barbara and Charcas mine. Refined zinc production increased by 1% in the fourth quarter.

2024 年，我們預期白銀產量為 2,070 萬盎司，比 2023 年成長 13%。鋅佔 2023 年第四季銷售額的 3.3%。該季度鋅價平均為每磅 1.14 美元。與 2022 年第四季的數字相比，下降了 17%。鋅礦產量較上季增加 11%，總計 16,930 噸。這主要是由於聖塔芭芭拉和查卡斯礦產量增加所致。第四季精煉鋅產量成長1%。

In 2023, we produced 65,509 tonnes of zinc, an increase of 9.2% compared to 2022. This was mainly driven by an uptick in production at the Santa Barbara and Charcas operations. This was partially offset by a decreased production at the San Martin mine. Refined zinc production increased by 1% in 2023 compared to 2022.

2023 年，我們生產了 65,509 噸鋅，比 2022 年成長了 9.2%。這主要是由於聖塔芭芭拉和查卡斯業務的產量增加所致。聖馬丁礦產量下降部分抵消了這一影響。 2023年精煉鋅產量較2022年成長1%。

For this year, we expected to produce 113,800 tonnes of zinc, which represents an increase of 80% over our 2023 production level. This growth will be driven by the start-up of the Buenavista zinc concentrator that will contribute with 54,400 tonnes of zinc. For the year 2025 and on, we expect to produce over 170,000 tonnes per year of zinc.

今年，我們預計鋅產量為 113,800 噸，比 2023 年的產量水準增加 80%。這一增長將由布埃納維斯塔鋅選礦廠的啟動推動，該選礦廠將生產 54,400 噸鋅。 2025 年及以後，我們預計每年鋅產量將超過 17 萬噸。

Financial results. For the fourth quarter of 2023 sales were $2.3 billion which is $525 million lower than sales for the fourth quarter or 19% -- or a 19% reduction. Even though copper prices were 2% higher than in the fourth quarter of 2022, sales of this metal decreased almost 10%. Net sales in the past quarter were negatively impacted by a quarterly adjustment -- accounting assessment of $62.3 million for copper sales, and this was basically for lower metal prices and sales.

財務業績。 2023 年第四季的銷售額為 23 億美元，比第四季的銷售額減少 5.25 億美元，即 19%，即減少 19%。儘管銅價比 2022 年第四季上漲 2%，但這種金屬的銷量卻下降了近 10%。上一季的淨銷售額受到季度調整的負面影響——銅銷售額的會計評估為 6,230 萬美元，基本上是因為金屬價格和銷售額下降。

In addition to this, at the end of the past quarter we have a larger copper anode inventory in process and that also affected copper. Regarding our byproducts, despite a 6% increase in the volume of molybdenum sold, growth of our main byproduct decreased 54% due to lower prices and an important accounting adjustment of $106.2 million of molybdenum sales. Zinc sales decreased 18% due to lower prices and volumes. For silver, sales fell 10% due to lower volume, which was partially offset by better price. So the fourth quarter of last year, sales reduction was mainly affected by an increase in copper inventory and adjustments on sales of copper and molybdenum for $168.4 million.

除此之外，在上個季度末，我們有更大的加工中的銅陽極庫存，這也影響了銅。關於我們的副產品，儘管鉬銷量增長了 6%，但由於價格下降以及鉬銷售額 1.062 億美元的重要會計調整，我們的主要副產品增長下降了 54%。由於價格和銷量下降，鋅銷量下降 18%。對於白銀，由於銷量下降，銷量下降了 10%，但價格上漲部分抵消了這一影響。因此，去年第四季銷售額減少主要是受到銅庫存增加以及銅和鉬銷售額調整1.684億美元的影響。

Operating cost. Our total operating costs and expenses decreased by $23.5 million or 2% when compared to the fourth quarter of 2022. The main cost reduction has been in inventory consumption, capitalized leachable material, workers participation and tenders. These cost reductions were partially offset by higher contractor costs, labor, exchange rate variances, raw materials, water, fuel and other costs.

營運成本。與 2022 年第四季相比，我們的總營運成本和費用減少了 2,350 萬美元，即 2%。主要成本降低體現在庫存消耗、資本化可浸出材料、工人參與和招標方面。這些成本降低被較高的承包商成本、勞動力、匯率差異、原材料、水、燃料和其他成本所部分抵消。

The fourth quarter of 2023 adjusted EBITDA was $1,055 million, which came 35.3% under the $1,631 million registered in the fourth quarter of 2022. The adjusted EBITDA margin for the fourth quarter was 46% versus 58% in the fourth quarter 2022. Cash flows. Southern Copper operating cash cost, including the benefit of byproduct sales was $1.25 per pound in the fourth quarter of 2023. This cash cost was $0.27 higher than the cash cost of $0.98 in the third quarter of this year -- of this past year.

2023 年第四季調整後EBITDA 為10.55 億美元，比2022 年第四季的16.31 億美元成長35.3%。第四季調整後EBITDA 利潤率為46%，而2022 年第四季為58%。第四季現金調整後EBITDA 利潤率為46%，而2022 年第四季為58%。第四季現金調整流。 2023 年第四季度，南方銅業的營運現金成本（包括副產品銷售收益）為每磅 1.25 美元。這筆現金成本比去年第三季的現金成本 0.98 美元高出 0.27 美元。

Operating cash cost per ton of copper before by-product credit was $2.23 per pound in the fourth quarter of 2023. That is $0.01 lower than the value for the third quarter. This 1% decrease in operating cash cost is a result of lower cost per pound from production and lower administrative expenses were partially offset by lower premiums on cathode sales and higher treatment and refining charges on concentrate pay.

2023 年第四季度，在副產品信貸之前，每噸銅的營運現金成本為每磅 2.23 美元。這比第三季度的價值低 0.01 美元。營運現金成本下降 1% 的原因是每磅生產成本降低，管理費用降低，但部分被陰極銷售溢價降低以及精礦處理和精煉費用提高所抵消。

Regarding by-products, we recorded a $0.28 reduction in credits. This fourth quarter production in 2023 had -- we had a credit of -- for the fourth quarter of last year, we had a credit of $491 million or $0.984 per pound. These figures represent a 22% decrease when compared to a credit of $604 million or $1.26 per pound in the third quarter of last year. Total credits increased 16% but decreased for molybdenum 33% and sulfuric acid to 11%.

關於副產品，我們的信用額減少了 0.28 美元。 2023 年第四季的產量——我們的信用額——去年第四季的信用額為 4.91 億美元，即每磅 0.984 美元。與去年第三季 6.04 億美元或每磅 1.26 美元的信貸額相比，這些數字下降了 22%。總積分增加了 16%，但鉬下降了 33%，硫酸下降至 11%。

Net income in the fourth quarter was $445 million, which represented a 51% decrease versus the fourth quarter of 2022 figures. The net income margin in the fourth quarter of 2023 was 19% versus 32% in the fourth quarter of 2023. Net income was affected by lower sales as explained earlier and by year-end non-recurrent adjustments in nonoperating costs as well as tax.

第四季淨利為 4.45 億美元，較 2022 年第四季下降 51%。 2023 年第四季的淨利潤率為 19%，而 2023 年第四季為 32%。淨利潤受到前面解釋的銷售額下降以及年底非營運成本和稅收的非經常性調整的影響。

Cash from operations. Cash flow from operating activities in 2023 was $3,572 million, which represented an increase of 27% over the $2,802 million posted in 2022. This result was mainly driven by a reduction in working capital.

經營活動產生的現金。 2023 年經營活動現金流量為 35.72 億美元，比 2022 年的 28.02 億美元增加 27%。這一結果主要是由於營運資本減少所致。

For capital investments, our current capital investment program for this decade exceeds $15 billion and it currently includes investments in the Buenavista zinc and Pilares project in Mexico and in the Tia Maria, Los Chancas and Michiquillay projects in Peru. In 2023, we spent $1 billion on capital investments, which reflected a 6% increase year-on-year and represented 41% of net income in 2023.

在資本投資方面，我們目前十年的資本投資計畫超過 150 億美元，目前包括對墨西哥 Buenavista 鋅礦和 Pilares 計畫以及秘魯 Tia Maria、Los Chancas 和 Michiquillay 計畫的投資。 2023年，我們的資本投資支出為10億美元，年增6%，佔2023年淨利的41%。

Since there is a description of our main capital project in Southern Copper's press release, I'm going to focus on updating new development for each. For the Buenavista zinc concentrator in Sonora, the capital budget for the project is $439 million, most of which has already been invested. We have initiated the commissioning process and progress is 99%. Ramping up of the plant began in the first quarter of this year, this quarter after technical adjustments to the concentrator. We expect to produce 54,500 tonnes of zinc and 11,900 tonnes of copper in 2024 and an average of 90,200 tonnes of zinc and 20,700 tonnes of copper per year in the next 5 years.

由於南方銅業的新聞稿中描述了我們的主要資本項目，因此我將重點關注每個項目的最新開發。索諾拉州的布埃納維斯塔鋅選礦廠，該項目的資本預算為4.39億美元，其中大部分已投資。我們已經啟動調試過程，進度為 99%。該工廠於今年第一季開始加產，本季對選礦廠進行了技術調整。我們預計2024年將生產54,500噸鋅和11,900噸銅，未來5年平均每年生產90,200噸鋅和20,700噸銅。

For the Pilares project in Sonora, Mexico, the budget for this project is $176 million, of which $145 million has been invested. Pilares is currently operating at full capacity and delivering copper ore to La Caridad operation. Since Pilares is fully integrated into our operations, this will be the last time we are reporting on it as a project. In other words, Pilares graduated from the project stage and is now part of the La Caridad operations.

墨西哥索諾拉州皮拉雷斯項目，該項目預算為1.76億美元，其中已投資1.45億美元。 Pilares 目前正在滿載運營，並向 La Caridad 營運部門輸送銅礦石。由於 Pilares 已完全融入我們的運營，這將是我們最後一次將其作為專案進行報告。換句話說，Pilares 從專案階段畢業，現在是 La Caridad 營運的一部分。

For the Peruvian project, in the case of the Tia Maria project in Arequipa, we reiterate our view that the initiation of construction activities at Tia Maria will generate significant economic opportunities for Islay province and the Arequipa region. Given the current Peruvian economic situation, it is crucial to move ahead on projects that will stimulate a sustainable growth cycle. We expect to begin the construction phase of the project in the near future. We will make it a priority to hire local labor to fill the 9,000 jobs that we expect to generate during Tia Maria's construction. Additionally, from day one of our operations, we will generate significant contribution to revenues in the Arequipa region by paying royalties and later on income tax.

對於秘魯項目，就阿雷基帕的 Tia Maria 項目而言，我們重申我們的觀點，即 Tia Maria 建設活動的啟動將為艾萊省和阿雷基帕地區帶來重大的經濟機會。鑑於秘魯當前的經濟形勢，推動能夠刺激永續成長週期的專案至關重要。我們預計將在不久的將來開始該項目的建設階段。我們將優先僱用當地勞動力來填補 Tia Maria 建設期間預計將產生的 9,000 個就業機會。此外，從我們營運的第一天起，我們將透過支付特許權使用費和隨後的所得稅，為阿雷基帕地區的收入做出重大貢獻。

The Los Chancas project in Apurimac it's a greenfield project in which we are in a coordinated effort with the Peruvian authorities of the company, making significant progress in eradicating the illegal mining activities at our concession. Once this process is complete, we will restart environmental impact assessment, conduct a diamond drilling campaign for 40,000 meters and initiate hydrogeological and geotechnical studies to gather additional information on the characteristics of the Los Chancas deposit.

阿普里馬克的 Los Chancas 項目是一個綠地項目，我們與該公司的秘魯當局協調努力，在根除我們特許權的非法採礦活動方面取得了重大進展。一旦這個過程完成，我們將重新啟動環境影響評估，進行 40,000 公尺的鑽石鑽探活動，並啟動水文地質和岩土工程研究，以收集有關 Los Chancas 礦床特徵的更多資訊。

The Michiquillay project in Cajamarca as of December 31 of last year, we have drilled 63,000 meters from a total program of 110,000 meters and obtained 20,137 core samples for chemical analysis. Geological modeling, cross section interpretation and drilling logging are currency underway. For 2024, the company expects to complete the diamond drilling product, geological modeling and resource evaluation. We will also begin hydrogeological and geotechnical studies and assess results of metallurgical testing at the deposit. The company continues working with the Michiquillay and La Encañada communities following the guidelines of the social agreements signed with them.

截至去年12月31日，卡哈馬卡Michiquillay計畫已鑽探63,000米，總計畫11萬米，取得20,137個岩心樣本進行化學分析。地質建模、剖面解釋和鑽井測井正在進行中。 2024年，公司預計完成鑽石鑽探產品、地質建模和資源評估。我們也將開始水文地質和岩土工程研究，並評估礦床冶金測試的結果。該公司繼續按照與 Michiquillay 和 La Encañada 社區簽署的社會協議的指導方針與他們合作。

For environmental, social and corporate governance, or ESG practices, major improvement -- we have a major improvement in water recovery that we want to report on.

對於環境、社會和公司治理或 ESG 實踐的重大改進——我們在水回收方面取得了重大改進，我們希望對此進行報告。

Over the last 4 years, we have improved the use of water at our operations going from 0.64 cubic meters, less than 1 cubic meter, 0.64 of water to a milled ton of mineral in 2020 to 0.53 cubic meters in 2023. This represents an increase in efficiency of 17%. Improvement has primarily been driven by the company's initiatives to recover water from our Quebrada Honda tailings dam in Peru and by an uptick in the water volume recovered at the Buenavista del Cobre mine in Mexico.

在過去 4 年裡，我們提高了營運用水量，從 2020 年的 0.64 立方米（不到 1 立方米），每研磨一噸礦物的用水量為 0.64 立方米，到 2023 年為 0.53 立方米。效率為17%。改善的主要原因是該公司從秘魯布拉達本田尾礦壩回收水的舉措以及墨西哥布埃納維斯塔德爾科布雷礦回收水量的增加。

We continue to make progress in our sustainability ratings. S&P Global results in its Corporate Sustainability Assessment or CSA, indicate that Southern Copper Corporation has achieved a place among the top 10 performers in the mining sector with a rating that exceed the industry average by 100%. These results reflect our ongoing commitment to improving our sustainability practices and maintaining the company's inclusion in the Dow Jones Sustainability Index for the Latin American region. This year marked our fifth consecutive year in the Dow Jones Sustainability Index. In 2023, SCC achieved some of the highest scores in the sector for key CSA indicators, including transparency and disclosure, occupational safety and health, operations closure and human capital development.

我們在永續發展評級方面繼續取得進展。標準普爾全球公司永續發展評估 (CSA) 的結果表明，南方銅業公司已躋身採礦業前 10 名，其評級超出行業平均 100%。這些結果反映了我們對改善永續發展實踐和維持公司在拉丁美洲地區道瓊斯永續發展指數的持續承諾。今年是我們連續第五年入選道瓊永續指數。 2023 年，SCC 在關鍵 CSA 指標上取得了業內最高分，包括透明度和揭露、職業安全與健康、營運關閉和人力資本開發。

We obtained a score of 90 out of 100 on CSA's climate governance index. This attests to the progress the company has made in this area. Additionally, we achieved a score of 100 in the Task Force on Climate-Related Disclosures which focus on management and disclosure of financial risks and opportunities related to climate change. Additionally, investor-led Climate Action 100 plus initiative recognized our efforts to develop an emissions reduction roadmap and awarded us a full compliance rating in the TCFD category. Furthermore, the rating agency Sustainalytics reduced the company's risk by two levels between 2020 and 2023.

我們在 CSA 的氣候治理指數中獲得了 90 分（滿分 100 分）。這證明了公司在這一領域所取得的進展。此外，我們在氣候相關揭露工作小組中獲得了 100 分，該小組重點關注與氣候變遷相關的金融風險和機會的管理和揭露。此外，投資者主導的氣候行動 100+ 倡議認可了我們制定減排路線圖的努力，並授予我們 TCFD 類別的完全合規評級。此外，評級機構Sustainalytics在2020年至2023年間將該公司的風險降低了兩個等級。

In 2023, we registered a 97% increase in year-to-date -- year-to-year investment in social infrastructure. In Mexico, $35.9 million was allocated to these efforts. A project that was particularly noteworthy this year focused on improving water infrastructure for the communities of Cananea and Nacozari. In Peru, $45.7 million was invested in social infrastructure, including the progress in building the wastewater treatment plant or PTAR in Ilo.

2023 年，我們對社會基礎設施的投資年增了 97%。在墨西哥，為這些工作撥款了 3,590 萬美元。今年特別值得注意的一個項目重點是改善卡納尼亞和納科扎里社區的供水基礎設施。在秘魯，4,570萬美元投資於社會基礎設施，包括伊洛污水處理廠（PTAR）的建設進展。

The company also prioritized educational infrastructure development in Peru and will build upon successful previous initiatives in Moquegua and Tacna. Continuing our commitment, the company is actively expanding educational infrastructure to benefit the community under the Works for Taxes modality. This effort includes setting up 5 high-performance schools of COAR that is the acronym in Spanish for 1,500 students to strengthen the capacities of outstanding students in the state educational circuit. Two schools are currently under construction in Moquegua and Tacna. These investments have made Southern Copper the primary private investor in Peru's national educational infrastructure.

該公司還優先考慮秘魯的教育基礎設施發展，並將以先前在莫克瓜和塔克納成功舉措為基礎。繼續我們的承諾，該公司正在積極擴大教育基礎設施，以在「稅收工程」模式下造福社區。這項努力包括建立 5 所 COAR 高績效學校，COAR 是西班牙語的縮寫，可容納 1,500 名學生，以加強國家教育體系中優秀學生的能力。莫克瓜和塔克納目前正在建造兩所學校。這些投資使南方銅業成為秘魯國家教育基礎設施的主要私人投資者。

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 January 25, the Board of Directors authorized a cash dividend of $0.80 per share of common stock payable on February 29 to shareholders of record at the close of business on February 13, 2024.

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、預期營運現金流量、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 1 月 25 日向市場宣布的那樣，董事會授權於 2 月 29 日向 2024 年 2 月 13 日收盤時在冊的股東派發每股普通股 0.80 美元的現金股息。

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

女士們、先生們，我們以這些評論來結束今天的演講。非常感謝您加入我們，我們現在開始接受提問。

(Operator Instructions) It comes from the line of Timna Tanners with Wolfe Research.

（操作員說明）它來自 Timna Tanners 和 Wolfe Research 的產品線。

Good day and happy Friday. Can you hear me okay?

美好的一天，快樂的星期五。你聽得到我說話嗎？

Yes.

是的。

I had a bunch of questions. First off, I wanted to hear about how you are guiding to lower costs? And just if you could provide some more color on how the costs come down, just given broader inflation that we've been seeing prevalent in the last couple of years?

我有很多問題。首先，我想聽聽您如何指導降低成本？考慮到過去幾年我們普遍看到的更廣泛的通貨膨脹，您能否提供更多有關成本如何下降的資訊？

Okay. Basically, what we're seeing is that after enough uptick in prices, saying after the Russian invasion to Ukraine, we saw a combination of the impact that it has on energy and some key materials for us, such as ammonia that is used as a material for explosive production as well as steel, for instance, and obviously oil. And we had some cost push. Well, we react to that. We are signing -- changing the mix of explosives, changing -- making more research to improve our cost on steel as well as looking into some other ways to save energy, both at power and at fuel. And that somehow has helped us and made us stabilize our cash cost before credits at about $2.23, $2.24 last year, and we have the expectation of decreasing it a little bit more through 2024.

好的。基本上，我們看到的是，在價格大幅上漲之後，例如俄羅斯入侵烏克蘭之後，我們看到了它對能源和我們的一些關鍵材料（例如用作氨的氨）的綜合影響。例如，用於爆炸生產的材料以及鋼鐵，當然還有石油。我們有一些成本推動。好吧，我們對此做出反應。我們正在簽署——改變炸藥的組合，改變——進行更多的研究，以提高我們的鋼鐵成本，並研究其他一些節省能源的方法，包括電力和燃料。這在某種程度上幫助了我們，使我們將信貸前的現金成本穩定在去年的 2.23 美元、2.24 美元左右，我們預計到 2024 年會再降低一點。

Okay. That's helpful. Regarding Tia Maria, you sounded more constructive in the release this time and in the remarks. And I'm just wondering if it's actually time to put it in our estimates coming forward. And if so, if you could elaborate on timing. Also, that $1.4 billion amount in light of all the cost inflation around miners globally. Can you just remind us if that's an updated number and what that entails?

好的。這很有幫助。關於蒂亞·瑪麗亞，你在這次的新聞稿和言論中聽起來更有建設性。我只是想知道是否真的到了將其納入我們未來預測的時候了。如果是這樣，您能否詳細說明一下時間安排。此外，考慮到全球礦商成本上漲，這一數字為 14 億美元。您能否提醒我們這是否是更新的數字以及這意味著什麼？

Sure. Regarding the CapEx, we already have spent a little bit north of $350 million on equipment that is stored with the proper care nearby the Tia Maria deposit. And we are more positive for sure on Tia Maria and we are moving forward with some actions that -- and we will report on progress as we get better news on it. But yes, we are much more positive regarding the project. But we will like to give good news when we have something relevant to report.

當然。關於資本支出，我們已經花費了超過 3.5 億美元購買設備，這些設備存放在蒂亞瑪麗亞礦床附近並妥善保管。我們對蒂亞瑪麗亞肯定更加積極，我們正在採取一些行動——當我們得到更好的消息時，我們將報告進展。但是，是的，我們對該專案更加積極。但當我們有相關內容需要報導時，我們很樂意提供好消息。

It comes from the line of Gabriel Simoes with Goldman Sachs.

它來自加布里埃爾·西蒙斯 (Gabriel Simoes) 與高盛 (Goldman Sachs) 的家族。

So the first one if you could provide some more details on the gap that we observed in production versus copper sales in this quarter. So you mentioned this is due to the anode inventory...

因此，第一個問題是，您能否提供更多關於我們在本季度觀察到的生產與銅銷售之間的差距的詳細資訊。所以你提到這是由於陽極庫存造成的...

I can't copy you Gabriel, I can't copy you at all, could you get closer to...

我無法模仿你 加布里埃爾，我根本無法模仿你，你能靠近一點嗎...

Is it better?

好點嗎？

Yes, much better now.

是的，現在好多了。

Sorry, sorry. I'm sorry about that. So the first question is about the gap that we observed this quarter in production versus sales for copper. So you mentioned that this is due to the anode inventory situation, but any additional detail that you could provide us on the market here would be interesting. And in addition, would you expect this gap to be reversed in the coming quarters, so that the excess inventory that you accumulated due to the higher production that will be interesting to know as well.

實在抱歉。對此我很抱歉。因此，第一個問題是關於我們本季觀察到的銅生產與銷售之間的差距。所以你提到這是由於陽極庫存情況造成的，但是你可以在市場上向我們提供的任何其他細節都會很有趣。此外，您是否預計這種差距在未來幾季會得到扭轉，因此您因產量增加而累積的過剩庫存也將很有趣。

And my second question is regarding the comment that you guys made on the Buenavista water situation. So I just wanted to have some more color on how this is going. And if it has already impacted some of your costs in some way, it should affect your cost in a meaningful way in the short term? And if there is a longer-term solution for this already underway? Or could it structurally increase the cost of the mine in the future? If this is a relevant metaphor for the costs?

我的第二個問題是關於你們對布埃納維斯塔水情的評論。所以我只是想對事情的進展有更多的了解。如果它已經以某種方式影響了您的一些成本，那麼它應該在短期內以有意義的方式影響您的成本？是否已經有針對此問題的長期解決方案？或者未來是否會結構性地增加礦場成本？這是成本的相關隱喻嗎？

Okay. Thank you very much for your questions, Gabriel. Okay. Well, we have an inventory built up at the -- related to Minera Mexico refinery. At the end of the past quarter, we had about 7,800 tonnes of copper in process that should be sold I believe this quarter in the first quarter of this year. So this is not like -- it's more like one thing. Obviously, inventories have not -- are bearing all the time. But in this case, we had some repairs that were scheduled for the end of the year that generated this uptick in inventories in process.

好的。非常感謝你的提問，加布里埃爾。好的。嗯，我們在與 Minera 墨西哥煉油廠相關的地方建立了庫存。上個季度末，我們有大約 7,800 噸加工中的銅，我相信應該在今年第一季的這個季度出售。所以這不像——這更像是一件事。顯然，庫存並沒有——一直在承受。但在這種情況下，我們計劃在年底進行一些維修，導致在建庫存增加。

Regarding the Buenavista water situation, well, we have -- as I mentioned, we -- the company has taken action on solving this program for this year. We're basically moving water using water tankers, trucks. And obviously, it has an impact in cost. We'll see that -- it's about $29 million that we're expecting. And in terms of production, it created a problem in production at Buenavista. If you look at the metrics that we're reporting for Buenavista, we're mentioning that there was a reduction in mineral process as well as recovery.

關於布埃納維斯塔的水狀況，正如我所提到的，我們公司已採取行動解決今年的該計劃。我們基本上是使用水罐車、卡車來運水。顯然，它會對成本產生影響。我們拭目以待——我們預計的金額約為 2900 萬美元。在生產方面，它給布埃納維斯塔的生產帶來了問題。如果您查看我們為布埃納維斯塔報告的指標，我們會提到礦物加工和回收量減少。

That's directly related to the lack of orders. So that's why the company has made us -- evaluated different ways to solve this. And we finally took a decision and are implementing it since this month -- I'm sorry, since January.

這與訂單不足有直接關係。這就是為什麼公司讓我們評估不同的方法來解決這個問題。我們最終做出了決定，並從本月開始實施——對不起，從一月開始。

Our next question comes from Alfonso Salazar with Scotiabank.

我們的下一個問題來自豐業銀行的阿方索·薩拉查。

I have three questions. The first one is regarding the water concessions. And I want to understand how this water from Cananea relates with a new law in Mexico that requires a mining concession for use of water, specifically for mining activities. So I just want to understand if there is a link between these two things. If I'm not mistaken, I remember correctly back in November 2022, there was a misunderstanding between the government and the company because of some concessions -- water concessions granted to the company at Buenavista, which I think the company clarified that there were no such concessions granted.

我有三個問題。第一個是關於用水優惠。我想了解來自卡納尼亞的水與墨西哥的一項新法律有何關係，該法律要求獲得採礦特許權才能使用水，特別是採礦活動。所以我只是想了解這兩件事之間是否有關聯。如果我沒記錯的話，我沒記錯的話，早在2022 年11 月，政府和公司之間就因為一些讓步而產生了誤解——在布埃納維斯塔向公司授予水權特許權，我認為該公司澄清說沒有給予這種讓步。

And the second question was regarding El Arco. I didn't see the details in the press release about this project. I just want to understand why is that? And the third question that I have is regarding the blended grade that we should expect at La Caridad and basically because it's going to be using Pilares as a satellite mine, so I would imagine that we should increase the La Caridad mine as more production comes from Pilares. So I just want to understand what to expect in terms of the blended grade there. And these are the three questions that I have.

第二個問題是關於埃爾阿科的。我沒有在新聞稿中看到有關該項目的詳細資訊。我只是想了解為什麼？我的第三個問題是關於我們應該在 La Caridad 期待的混合品位，基本上是因為它將使用 Pilares 作為衛星礦，所以我想我們應該增加 La Caridad 礦的產量，因為更多的產量來自皮拉雷斯。所以我只是想了解那裡的混合等級會發生什麼。這是我的三個問題。

Thank you very much, Alfonso, good hearing from you. Okay. In the water concessions, well, basically, we do have the concession for the wells. What we don't have, it's the final permit to build a pipeline. So that is something that we expect to have when we finish working on the construction for the wells, but we haven't received it yet. So this is what has created this. This plus some lower rain than expected this year -- this past year, I should say. That is basically what we have in the wells will solve the problem in terms of water availability, no matter how the weather affects rains in the area.

非常感謝你，阿方索，很高興收到你的來信。好的。在水特許權方面，基本上，我們確實擁有水井的特許權。我們沒有的是建造管道的最終許可證。所以這是我們期望在完成油井施工後得到的東西，但我們還沒有收到。所以這就是創造這個的原因。再加上今年的降雨量比預期少——我應該說是去年。基本上，無論天氣如何影響該地區的降雨，我們在井中所擁有的設施都將解決可用水的問題。

Now in the case of El Arco, we haven't made any reference to the project because we have not much progress to report. We will do that when we have something relevant to share with the financial community. At this point, we're advancing the project, but there is nothing relevant to report. And then on the blended rate expected for La Caridad, let me explain what's happening in -- when we initiated the production of mineral at La Caridad -- the Pilares project, we found that there was an oxide layer that had to be removed before getting into full force, which are the feed for the concentrator. So the first month, this was at the end of 2022 and the first quarter of 2023.

現在，就 El Arco 而言，我們還沒有提及該項目，因為我們沒有太多進展可報告。當我們有相關內容可以與金融界分享時，我們就會這樣做。目前，我們正在推進該項目，但沒有任何相關資訊需要報告。然後，關於 La Caridad 的預期混合率，讓我解釋一下當我們在 La Caridad 啟動礦物生產時，Pilares 項目中發生的情況，我們發現有一層氧化層必須在獲得之前去除。全力以赴，這是濃縮機的進料。第一個月是 2022 年底和 2023 年第一季。

We basically removed these oxides from the Pilares deposits and send it to our SX-EW leaching areas. That material is being processed. So we will expect to have some more refined SX-EW copper coming from Pilares in the near future. And then we look at the prices -- relative prices of molybdenum vis-a-vis copper. This was by mid-2023, molybdenum had very good prices and copper not as good as we had say in the year before. And after making some numbers, some financial reviews, we conclude that it was interesting to increase the molybdenum production of La Caridad, which is from our 4 open pit mines, the ones that have the best ore grade for molybdenum.

我們基本上從 Pilares 礦床中去除了這些氧化物，並將其發送到我們的 SX-EW 浸出區。該材料正在處理中。因此，我們預計在不久的將來將有一些來自 Pilares 的精煉 SX-EW 銅。然後我們來看看價格——鉬相對於銅的相對價格。到 2023 年中期，鉬的價格非常好，而銅的價格則不如我們前一年所說的那麼好。在做了一些數據和一些財務審查之後，我們得出結論，增加 La Caridad 的鉬產量很有趣，該產量來自我們的 4 個露天礦，這些礦具有最好的鉬礦石品位。

So the company favored the production of molybdenum at La Caridad and that was sold taking the opportunity of much higher prices for molybdenum. That has passed the last quarter, we had a price that was reported lower than what we had before. And consequently, we're coming back to sending ore from Pilares to La Caridad. Our expectation is that we should be producing about 35,000 tons of copper from Pilares in the mix at the Caridad concentrator with Caridad material.

因此，該公司傾向於在 La Caridad 生產鉬，並利用鉬價格大幅上漲的機會出售。上個季度已經過去了，我們報告的價格低於之前的價格。因此，我們將重新將礦石從皮拉雷斯運送到拉卡里達。我們的預期是，我們應該在 Caridad 選礦廠與 Caridad 材料混合的 Pilares 中生產約 35,000 噸銅。

Okay. And if I understand, in case moly prices soar again, you may reduce the input from Pilares to produce more molybdenum, right?

好的。如果我理解的話，萬一鉬價再次飆升，你可能會減少皮拉雷斯的投入來生產更多的鉬，對嗎？

If prices make -- if the prices make sense to do that, we'll consider it.

如果價格合理的話，我們會考慮它。

And just to confirm, the problem with water that you have at Buenavista does not relate with the changes to the mining law and the water concessions?

只是為了確認一下，布埃納維斯塔的水問題與採礦法和水特許權的變化無關？

I don't think so. I think that this is a different matter. It's just a pipeline permit that is taking longer than what we belief when we initiated this -- the work in these two wells.

我不這麼認為。我認為這是另一回事。這只是一個管道許可，比我們開始這項工作時所想像的要長——這兩口井的工作。

Comes from the line of John Tumazos with John Tumazos Very Independent Research.

來自 John Tumazos 和 John Tumazos Very Independent Research 的血統。

Thank you very much. I apologize if I have any construction noise in the background. Southern Copper had 24,500 tonnes less output from purchased ores in 2023 and $113.5 million less other income. Could you describe whether the purchased ores were in Sonora or Southern copper? And if it's a regular sustainable or sort of an episodic thing and what had been the other income, which declined?

非常感謝。如果背景中有任何建築噪音，我深表歉意。 2023 年，南方銅業的外購礦石產量減少了 24,500 噸，其他收入減少了 1.135 億美元。您能否描述一下購買的礦石是索諾拉礦還是南方銅礦？如果這是一個定期的、可持續的或某種偶發性的事情，那麼其他下降的收入是多少？

Okay. Let me address the last question. Other income was the expected one in 2023, other income/spend was the proper one, the usual trend of the company in 2023. The anomaly was in 2022. And it was a positive thing for the company. We had some insurance refunds as well as tax refund that we had in 2022. So more than having lower other income in 2023, we had an exceptional, very good 2022 in that regard.

好的。讓我回答最後一個問題。其他收入是 2023 年的預期收入，其他收入/支出是適當的收入，這是公司 2023 年的常見趨勢。異常情況發生在 2022 年。這對公司來說是一件積極的事情。我們在 2022 年獲得了一些保險退款和退稅。因此，除了 2023 年其他收入較低之外，我們在這方面度過了一個特殊、非常好的 2022 年。

Getting into the ore purchases, basically, we have to purchase an unusual amount of copper concentrate in 2022 to fill up our smelter in Peru due to the Cuajone mine stoppage of 54 days. We had a committee that blockaded the water supply for Cuajone for, as I say, 54 days that was in 2022. So in 2023, Cuajone operated at full capacity, which is excellent for us.

說到礦石採購，基本上，由於 Cuajone 礦停產 54 天，我們必須在 2022 年購買異常數量的銅精礦，以填補我們在秘魯的冶煉廠的空缺。正如我所說，我們有一個委員會在 2022 年封鎖了 Cuajone 的供水 54 天。因此，在 2023 年，Cuajone 滿載運行，這對我們來說非常好。

And that's why we reduced significantly our purchases of third-party's material. Generally speaking, we are buying third-party's copper for technical reasons because as you know, John, we are low in copper concentrates, so we keep using just our own material, fill up our smelters and refineries. But sometimes, we want to acquire third-party material that has technical characteristics that improve our process, and that's why we are buying some of that as our report shows.

這就是我們大幅減少購買第三方材料的原因。一般來說，我們出於技術原因購買第三方銅，因為約翰，你知道，我們的銅精礦含量較低，所以我們繼續使用我們自己的材料，填滿我們的冶煉廠和精煉廠。但有時，我們希望獲得具有改進我們流程的技術特徵的第三方材料，這就是我們購買其中一些材料的原因，正如我們的報告所示。

Our next question comes from Sofia Martin with GBM.

我們的下一個問題來自 GBM 的 Sofia Martin。

I was just wondering if you could share your production guidance going forward for the next couple of years?

我只是想知道您是否可以分享您未來幾年的製作指導？

Certainly, Sofia. Okay. I already mentioned that for 2024, it's 935,000 -- 936,000. For 2025, 956,000; 2026, 985,000; 2027, 1,001,000; 2028, 1,018,000. I also mentioned that from this year, we're increasing our zinc production from 65,500 last year, up to 118,000 this year, and then over 170,000 for the next foreseeable future.

當然，索菲亞。好的。我已經提到過，到 2024 年，這個數字是 935,000 - 936,000。 2025 年，956,000； 2026 年，985,000； 2027 年，1,001,000； 2028 年，1,018,000。我還提到，從今年開始，我們的鋅產量將從去年的 65,500 輛增加到今年的 118,000 輛，然後在下一個可預見的未來增加到 170,000 輛以上。

It's a follow-up from Timna Tanners with Wolfe Research.

這是 Timna Tanners 與 Wolfe Research 的後續研究。

I just had two more questions. One was related to the reported interest of Grupo management...

我還有兩個問題。其中之一與據報導的集團管理層的興趣有關…

We cannot -- we don't hear -- we couldn't hear you at the beginning.

我們不能──我們聽不到──我們一開始就聽不到你的聲音。

Sorry. So just two quick questions. One is related to the reported interest in Las Cruces from Grupo Mexico. Is that anything you can comment on? And the second one, just is there anything that you can provide in terms of color on the Board's decision to cut the dividend?

對不起。所以只有兩個簡單的問題。其中之一與墨西哥集團對拉斯克魯塞斯的興趣有關。有什麼可以評論的嗎？第二個問題，您能否就董事會削減股利的決定提供任何資訊？

The first one, I couldn't get your question. I am so sorry.

第一個問題，我沒聽懂你的問題。我很抱歉。

Sorry about that. My connection might be kind of rough. So it's been reported that Grupo Mexico is looking at Las Cruces, the Spanish mine owned by First Quantum. So I was just wondering if you have any comment on that or if it's relevant for Southern Copper?

對於那個很抱歉。我的連接可能有點粗糙。據報道，墨西哥集團正在關注第一量子擁有的西班牙拉斯克魯塞斯礦場。所以我想知道您對此有何評論或這是否與南方銅業相關？

It's a relevant question for Grupo Mexico actually. But just what we do, if there is a good opportunity to generate value for our shareholders through an acquisition, we dive into these alternatives. In this case, the company is not directly involved. It's through AMC that the Las Cruces evaluation is being done.

這實際上對墨西哥集團來說是一個相關的問題。但正是我們所做的，如果有一個很好的機會透過收購為我們的股東創造價值，我們就會深入研究這些替代方案。在本案中，公司沒有直接參與。拉斯克魯塞斯的評估是透過 AMC 進行的。

In the case of the dividend, well, it's -- as we explained, in each board meeting, the company, the Board looks at how the market is, what are the next payments that the company has to do, what are the investment requirements? And in this case, if you see our cash generation from operations was somehow lower. So the Board decided to cut a little bit the copper -- I'm sorry, the dividend in order to maintain a solid cash position for the company.

就股利而言，正如我們所解釋的，在每次董事會會議上，公司董事會都會研究市場狀況、公司下一步必須支付的款項是什麼、投資要求是什麼？在這種情況下，如果你看到我們的營運產生的現金在某種程度上較低。因此，董事會決定削減一點銅——對不起，股息，以保持公司穩固的現金狀況。

And sir, I'm not showing any further questions in the queue.

先生，我不會在隊列中顯示任何其他問題。

Okay. Thank you very much, Carmen. Well, with this, we conclude our conference call for Southern Copper's fourth quarter and full year results for 2023. We certainly appreciate your participation and hope to have you back with us when we report the first quarter of 2024 results. Thank you very much for being with us, and have a very nice day.

好的。非常感謝你，卡門。好的，我們關於南方銅業 2023 年第四季度和全年業績的電話會議到此結束。我們非常感謝您的參與，並希望在我們報告 2024 年第一季度業績時您能回來與我們一起。非常感謝您與我們在一起，並祝您有個愉快的一天。

And thank you all for joining our call today, and you may now disconnect.

感謝大家今天加入我們的通話，現在您可以斷開連線了。