NOTE 15-CONCENTRATION OF RISK:

The Company operates four open-pit copper mines, five underground poly-metallic mines, two smelters and ten refineries in Peru and Mexico and substantially all of its assets are located in these countries. There can be no assurances that the Company’s operations and assets that are subject to the jurisdiction of the governments of Peru and Mexico will not be adversely affected by future actions of such governments. Much of the Company’s products are exported from Peru and Mexico to customers principally in the United States, Europe, Asia and South America.

Financial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents, short-term investments and trade accounts receivable. The Company invests or maintains available cash with various banks, principally in the United States, Mexico, Europe and Peru, or in commercial papers of highly-rated companies. As part of its cash management process, the Company regularly monitors the relative credit standing of these institutions. At December 31, 2018, SCC had invested its cash and cash equivalents and short-term investments as follows:


	$ in		% of total		% in one institution
Country	million		cash (1)		of country		of total cash
United States	$	697.1	65.9	%	27.7	%	18.3	%
Switzerland		315.7	29.8	%	61.2	%	18.3	%
Peru		7.6	0.7	%	75.6	%	0.5	%
Mexico		38.0	3.6	%	89.3	%	3.2	%
Total cash and short-term investment	$	1,058.4	100.0	%

(1) 95.8% of the Company’s cash is in U.S. dollars.

During the normal course of business, the Company provides credit to its customers. Although the receivables resulting from these transactions are not collateralized, the Company has not experienced significant problems with the collection of receivables.

The Company is exposed to credit loss in cases where the financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and currency/interest rate swaps) are unable to pay when they owe funds as a result of protection agreements with them. To minimize the risk of such losses, the Company only uses highly-rated financial institutions that meet certain requirements. The Company also periodically reviews the creditworthiness of these institutions to ensure that they are maintaining their ratings. The Company does not anticipate that any of the financial institutions will default on their obligations.

The Company’s largest customers as percentage of accounts receivable and total sales were as follows:


	2018		2017		2016
Accounts receivable trade as of December 31,
Five largest customers	34.2	%	28.4	%	31.1	%
Largest customer	10.9	%	8.2	%	11.9	%

Total sales in year
Five largest customers	28.4	%	25.1	%	30.4	%
Largest customer	9.3	%	8.8	%	8.4	%