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Southern Copper Corporation 11 July 2008

Company News Alert

1:3 stock split comes into effect

NYSE HOLD Direct access to the full report free of charge at

On 10 July 2008, Southern Copper Corporation (Southern Copper) completed a 1:3 split of its common
shares, as per an initial announcement by the company on 19 June 2008. In line with this, we have
Common http://www.iirgroup.com/researchoracle/viewreport/show/20299
adjusted our common stock and Peruvian stock target prices, which were originally derived in our 1Q
08 update report, dated 06 June 2008. Going forward, we continue to expect lower profitability in FY
Stock 2008, due to falling zinc prices and rising operating expenses. However, as our current target price no
longer supports a SELL, we upgrade the NYSE common stock to a HOLD.
Ticker: PCU
Target price: US$30.42
Current price: US$33.46
Price change We will reassess our NYSE common stock rating for Southern Copper after it releases its 2Q 08 results
(8.4%) in July 2008.
since last report

Peruvian HOLD We assume no currency impact on the Peruvian stock, as it trades in US dollars. Given that our target
price no longer supports a SELL, we upgrade the Peruvian stock to a HOLD.
Stock

Ticker: SPC.LM
Target price: US$30.42
Current price: US$33.60
We will reassess our Peruvian stock rating for Southern Copper after it releases its 2Q 08 results in July
Price change
(7.9%) 2008.
since last report

Analyst: Bhavesh Chauhan

Editor: James Smithies Investment horizon - short term actionable trading strategies
Global Research Director: This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
Satish Betadpur, CFA report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
Next news due: readers with a shorter trading horizon. These are available on-line only at www.researchoracle.com.
2Q 08 results, July 2008
On 10 July 2008, Southern Copper completed a 1:3 split of its common shares, in accordance with its
initial announcement on 19 June 2008. We have adjusted our target prices, originally derived in our
1Q 08 update report, dated 06 June 2008, to reflect this move.

We continue to expect lower profitability in FY 2008, due to falling zinc prices and rising operating
expenses. However, following the recent decline in the NYSE common stock price, our target price no
longer supports a SELL. Therefore, we upgrade the NYSE common stock to a HOLD.

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