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    Jonathan Brandt • HSBC

    Jonathan Brandt's questions to Southern Copper Corp (SCCO) leadership

    Jonathan Brandt's questions to Southern Copper Corp (SCCO) leadership • Q3 2024

    Question

    Jonathan Brandt asked if the revised, higher CapEx for the Tia Maria project could lead to other changes, such as increased production capacity. He also requested an update on the Los Chancas project and a potential timeline for resolving the illegal mining issues.

    Answer

    Executive Raul Jacob stated that the Tia Maria production forecast remains unchanged, with an updated cash cost of $1.16/lb, which is still highly profitable. For Los Chancas, he confirmed they are working with national police to remove illegal miners and hope for a resolution by Q1 2025, but could not provide a firm timeline.

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    Jonathan Brandt's questions to Southern Copper Corp (SCCO) leadership • Q2 2024

    Question

    Jonathan Brandt of HSBC asked for an update on the Tia Maria project's timeline and the risk of it slipping into 2028. He also requested more details on the potential expansion of the Cuajone mine and any other similar brownfield projects.

    Answer

    Executive Raul Jacob affirmed the Tia Maria timeline, targeting project completion in H1 2027 and full capacity between Q2 and Q3 2027. He detailed that the potential Cuajone expansion aims to increase milling capacity by a third, from 90,000 to 120,000 tons per day, but emphasized that the project has not yet received Board approval.

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    Jonathan Brandt's questions to Southern Copper Corp (SCCO) leadership • Q1 2024

    Question

    Jonathan Brandt of HSBC asked if Southern Copper would consider partnering on its greenfield projects to accelerate growth, questioned the construction timeline for the Tia Maria project, and asked if a cash dividend would resume next quarter.

    Answer

    Executive Raul Jacob stated that the company is not currently considering partnerships for its projects, preferring to develop them as wholly-owned operations. He confirmed the Tia Maria project has an estimated two-year construction timeline but did not provide a start date. Regarding future dividends, Mr. Jacob reiterated that the Board evaluates the dividend policy each quarter based on various factors and could not predict the next quarter's decision.

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    Jonathan Brandt's questions to Suzano SA (SUZ) leadership

    Jonathan Brandt's questions to Suzano SA (SUZ) leadership • Q2 2024

    Question

    Jonathan Brandt followed up on the pulp market, asking about the feasibility of shifting volumes from China to stronger markets like Europe and the U.S., and at what price point Suzano would consider production curtailments. He also questioned the long-term strategy for the tissue and packaging segments and sought clarification on the share buyback cancellation.

    Answer

    Executive Leonardo Grimaldi explained that shifting significant volumes to Europe or the U.S. is difficult in the short term due to existing contracts. Executive Marcelo Bacci reiterated the methodology of evaluating marginal cost versus marginal price for production decisions. CEO Beto Abreu clarified that tissue is not a focus for investment, while packaging is a key growth area, though he declined to set a specific EBITDA target for the segment.

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