CONCENTRATION OF RISK:

12 Months Ended

Dec. 31, 2024

CONCENTRATION OF RISK:

CONCENTRATION OF RISK:

NOTE 17—CONCENTRATION OF RISK:

The Company operates five open-pit copper mines, three underground poly-metallic mines, two smelters and nine refineries in Peru and Mexico and substantially all of its assets are located in these countries. No assurances can be made that any operations and assets of the Company 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, Canada, 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, 2024, 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	$	2,494.4	71.2	%	15.0	%	10.7	%
Canada		373.1	10.6	%	100.0	%	10.6	%
Switzerland		353.0	10.1	%	100.0	%	10.1	%
Peru		20.5	0.6	%	46.8	%	0.3	%
Mexico		262.4	7.5	%	61.1	%	4.6	%
Total cash and short-term investment	$	3,503.4	100.0	%

(1) 98.1% 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’s largest customers as percentage of accounts receivable and total sales were as follows:

	2024		2023		2022
Accounts receivable trade as of December 31,
Five largest customers	33.4	%	32.6	%	34.2	%
Largest customer	12.1	%	9.7	%	10.4	%
Total sales in year
Five largest customers	23.5	%	24.7	%	25.7	%
Largest customer	7.9	%	7.7	%	6.8	%