Southern Copper (NYSE:SCCO) Q2 2026 Earnings Call

0:01 Good morning and welcome to Southern Copper Corporation's Second Quarter and Six Months twenty twenty six Results Conference Call. With us this morning, we have Southern Copper Corporation's Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter and six months twenty twenty six, as well as answer any questions that you may have. The information discussed on today's call may include

0:31 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. Now I'll pass the call on to Mr. Raul Jacob. Thank you very much, Carmen. Good morning, everyone, and welcome to Southern Copper's Third Second Quarter of twenty twenty six Results Conference Call.

1:17 At today's conference, I'm accompanied by Mr. Leonardo Contreras, CEO of Southern Copper and also a Board member. Let me first begin by mentioning that Southern Copper delivered another exceptional quarter, registering record breaking results in sales, adjusted EBITDA and net income. These outstanding achievements are driven by operating excellence and reflect our commitment to creating long term value for our stakeholders in a context marked by sustained demand for copper and the other minerals we produce. Today, 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 costs, financial results, expansion projects, and ESG.

2:06 After this, we will open the session for questions. The Orlando Metal Exchange copper price increased 40% from an average of $4.32 per pound in the second quarter of twenty twenty five to $6.04 this past quarter. In the COMEX market, we saw a 31% increase with an average of 6.16 per pound this quarter. Based on current supply and demand dynamics, we estimate a slight copper market deficit for 2026. Copper inventories worldwide, the total combining stock of the London Metal Exchange, Comet, Shanghai, and London warehouses, but the sum of these inventories stood at 1,123,000 tons as of yesterday, July 21.

3:06 We estimate that this inventory can currently cover approximately fifteen days of global demand. Now let's look at Southern Copper's production for the past quarter. Copper represented 73% of our sales in the second quarter of twenty twenty six. Copper production registered a decrease of 3.5% compared to the print in the second quarter of last year, standing at 230,662 tons this past quarter. Our quarterly result reflects a 12% drop in production in Peru, mainly attributable to lower ore grades and recoveries at both Pochepala and Cojon.

3:53 However, these results were partially offset by an increase in production at our Mexican operation of 3.2%, which was driven by higher production at our Buena Vista, La Caridad and Inca mines. For 2026, we expect to produce 917,000 tons of copper, an increase of about 1% over our initial plant. For molybdenum, it represented 11% of our sales in the second quarter and is currently our first effect. Molybdenum prices averaged $29.44 per pound this quarter compared to $20.57 in the second quarter of twenty twenty five.

4:42 This represents an increase of 43%. Molybdenum production dropped 11% in the second quarter of this year compared to the same period of last year. This was mainly driven by a decrease in production at all our mines due to lower ore grade. In 2026, we expect to produce 27,900 tons of molybdenum. This is 7% above our initial plan. For silver, it represented nine percent of the company's value in the second quarter of this year. Silver prices averaged $73.49 per ounce this quarter compared to $33.62 in the second quarter of last year.

5:36 This represents an increase of 118% in price. Silver is currently our second by product. Despite higher production at our La Cabidad and Inca mines, silver production fell 4% in the second quarter of twenty twenty six, driven by the lowest production at the Pochepala, Coajone, and Buena Vista mines. Refined silver production decreased 0.3 quarter over quarter, driven mainly by a drop in production at the Ilo refinery in Peru. In 2026, we expect to comply with our plan to produce 24,000,000 ounces of silver. Zinc was 4% of our sales value in the second quarter of twenty twenty six with an average price of $1.57 per pound in the quarter, which represents a 31% increase compared to last year's second quarter.

6:40 Mined zinc production decreased 14% quarter on quarter to total 39,257 tons. This decrease was mainly driven by lower production at Buena Vista, San Martin, and Charcas mines. Refined zinc production decreased 6% in second quarter of this year vis a vis the same second quarter of twenty twenty five. This was principally due to lower ore grades. For this year, 2026, we expect to produce 163,900 tons of zinc. Financial results. For the second quarter of twenty twenty six, sales were $4,300,000,000 This is $1,200,000,000 higher than the print in the second quarter of twenty twenty five, a 41% increase.

7:35 Copper sales increased 38% while the volume fell 1.5%. In a scenario the mentioned better prices. Regarding our main by products, we registered higher sales for molybdenum by 34% zinc sales in turn rose 24% silver were up 86% in the three cases of feastide products due to higher prices. And these sales were partially offset by a decrease in volume. Our total operating costs and expenses increased $2.00 $2,000,000 or 14% compared to the second quarter of twenty twenty five. The main cost increments were in operating materials, purchased copper, diesel and fuel, workers' participation and translation difference, as well as other factors. These cost increments were partially offset by a decrease in repair materials and inventory consumption.

8:45 The second quarter twenty twenty six adjusted EBITDA hit a record high of 2,856 million dollars which represented an increase of 60% with regard to the $1,791,000,000 dollars registered in the second quarter of twenty twenty five. Adjusted EBITDA margin in the second quarter of this year stood at 67% versus 59% in the second quarter of last year. Adjusted EBITDA year to date was 5,569 million dollars which is 58% higher than the print in the six months of twenty twenty five. Adjusted EBITDA margin in the six months of this year stood at 65% versus 57% for the six months of twenty twenty five.

9:40 Operating cash cost per pound of copper before by product credits was $2.29 per pound in the second quarter of twenty twenty six. That is $02 lower than the value for the third quarter of this year. 1% decrease in operating cash cost is a result of lower cost per pound from production and administrative expenses and higher premiums. This result was partially offset by a decrease in treatment and refining charges. Southern Copper operating cash costs, including the benefit of byproduct service, was $05 per pound in the second quarter of twenty twenty six. Even though this cash cost was $0.15 higher than the cash cost of minus zero one one dollars for the first quarter, we think that this is an excellent mark for the company.

10:35 Regarding byproducts, we had a total credit of $11.00 6,000,000 or $2.24 per pound in the second quarter of twenty twenty six. These figures represent a seven percent decrease compared to a credit of $1,189,000,000 dollars or $2.41 per pound reported in the first quarter of twenty twenty six. Total credit has increased for molybdenum and zinc and decreased for silver and sulfuric acid. The second quarter of twenty twenty six net income hit a record high of $1,670,000,000 dollars up 72% versus the $973,000,000 registered in the second quarter of last year.

11:27 This was the result of higher net sales, mainly the result of higher net sales and the cost control measures that we imposed in our operations. The net income margin in the second quarter of twenty twenty six stood at 39% versus 32% in the second quarter of twenty twenty five. On a year to date basis, net income was 69% higher than in 2025 due to higher net sales. Cash flow from operating activities in the six months of this year was 3,682 million dollars which represents an increase of 117% compared to the $1,698,000,000 dollars post in the six months of last year.

12:15 This improvement was attributable to a strong cash generation at our operations, which was driven by higher sales and a decrease of $719,000,000 in operating assets and liability requirements. This year, on June 24, company issued 1,250,000,000 in a ten year fixed rate senior unsecured notes. This debt is due in 2036 with an annual interest rate of 5.35%. Demand for the notes was $4,000,000,000 which was 3.2 times greater than the total issuance amount. Proceeds will be used exclusively by Southern Copper Corporation, our Peruvian branch, to develop the Tia Maria project, finance its capital expenditure program, as well as general corporate purposes for Southern Copper Corporation.

13:16 Regarding capital investment, Southern Copper's current capital investment program for this decade exceeds 20,500,000,000 and includes investments in projects in Peru and Mexico. In the second quarter of this year, we spent $423,000,000 on capital investments, which reflected a 79% increase over the figure reported in the second quarter of twenty twenty five and represents 25% of this quarter's net income. In the first half of the year, we spent $865,000,000 in capital investments, which represents a 27% net income and reflects the impact of a 56% increase in capital expenses year on year.

14:11 Looking at our Peruvian employees, as Peru is poised to begin a new executive cycle, we're encouraged by the initial statements made by President-elect, Mrs. Keiko Fujimori. Accordingly, SEC reiterates its commitment to work with incoming administration to promote economic growth and social development in Peru through the advancement of our Peruvian projects Pia Maria, Los Chancas, and Michiquillas, which represent a combined investment of approximately $10,300,000,000 Given that there is a description of our main capital project in Southern Copper's press release, I am going to focus on updating new developments for each of them. In the case of the Tia Maria project located in the Peruvian region of Arequipa, as of June of this year, June 30, the company has committed $11.00 $1,000,000 to various project activities, of which $693,000,000 has already been invested.

15:16 Mass Air Work has moved 13,800,000 metric tons of material from La Tapa deposit. This is a 71% progress. And also, most purchase orders for the project's major equipment have been issued.

15:35 Regarding the leaching process, Purchase orders have been placed for key state of the art equipment and procurement activities for the remaining major equipment continues. Regarding the power supply, electromechanical works are underway at the main electrical substations and efforts continue to build the two twenty kilowatt transmission line. Concurrently, the mass air works required to develop both the dry and wet areas are in their final stage. Seeded works and steel structure assembly have commenced in key facilities, including the primary, secondary, and tertiary crushing circuit, as well as the Southern Structures and Electro Wheeling facilities, among others.

16:26 At the close of June, the Tia Maria project had reached 42% completion and 5,817 new jobs have been created. Of these positions, twelve fifty four have been filled with local applicants.

16:45 For the Los Chancas project in the region of Aquilina in Peru, As of June 30, the presence of illegal miners within the project area continues despite the state's on-site enforcement efforts through the environmental prosecutor's office. This has hindered the project's progress. Meanwhile, community development and environmental management programs continue in the communities of Te Aparo and Papayivo, both located within our direct area of influence. In the case of the Michiquillay project in the Peruvian region of Cajamarca, targets to estimate near our reserves and develop the mine plan coupled with hydrological and hydrogeological assessments are currently underway.

17:35 In addition, the technical research is progressing and entering its final phase.

17:43 Focusing on our Mexican projects, Southern Copper has several projects in its Mexican pipeline that may boost organic growth if they are found to yield value for both stakeholders and the communities in which we operate. These projects are Anganguello and Chachihuites, which are part of the Mexican copper circuit, and the Empalme smelter, which are expected to bolster our position as a fully integrated copper producer. We're engaged in talks with the current administration to continue rolling out SEC's Mexican investment for $10,200,000,000 El Pilar in the Sonora state is a greenfield project that has to obtain the necessary environmental permits and will begin very tight preparation work in September of this year, next September in other words, to develop energy lines, water pipelines, roads, workers' accommodation, and some other facilities.

18:45 Project construction will commence in the first quarter of twenty twenty seven and production is expected to begin in the second half of twenty twenty nine. This project is located in Sonora, Mexico, approximately 45 kilometers away from the Camania and Buenavista mines. Its copper oxide mineralization contains estimated proven and probable reserves of three seventeen million tons of ore with an average copper grade of 0.249%

19:21 and a life mine of eighteen years. It will operate as an open pit mine with annual production capacity of 36,000 tons of copper cattle utilizing cost efficient and environmentally friendly SX EW technology. Effective W stands for Sovereign Structure and Electro Weaning. With an investment of $551,000,000 this project will employ a direct workforce of four fifty people during the construction phase and 300 during the operational phase.

20:01 For environmental, social, and corporate governance, or ESG, practices, Over the last five years, we have reported several times on the Curajawira Dam located in the Candelari area in Southern Peru. This is in the Takna region in Peru. This dam has transformed the late life of 18% farmers of the area and their facilities by providing year round access to water. According to the Ministry of Agricultural Development, crop yields in the area have risen around 20%. This infrastructure with a capacity of 2,500,000 cubic meters was built by our company through an alliance with the Peruvian state and local farmers.

20:51 We continue to work with authorities to build the Callazas and Calientes dams also in the Calderabad area and with these additional dams, more than 90% of farmers' water needs will be covered. Moving to Mexico. Students from Nacosari and Skela schools both in Sonora, Mexico performed at Neroville national and international competitions, including the Mexican Mathematics Olympics and Informatics twenty twenty six. These achievements reflect the company's commitment to education and the development of its team skills. The company currently benefits 3,000 students through 11 education centers it operates in

21:40 Mexico, Banteros. Community Integration and To promote integration and through sports, our company joined the global social initiative of the Mexican government. Our efforts, which focus on communities neighboring our operations, have brought together 2,629 participants who are organized into two sixteen of employees and community members with categories for children and youth. Alongside this initiative, five eighty volunteers worked to create 14 community murals and recognition sports venues, which strengthens harmonious relations, inclusion, and the social fabric.

22:25 These sports and cultural programs cover approximately 41% of the young population close to our Mexican operation.

22:36 Dividend announcements. 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, on July sixteen of this year, Southern Copper Corporation announced a quarterly cash dividend of $1.10 per share of common stock and a stock dividend of 0.012 shares of common stock per share. This will be payable on 08/27/2026, to shareholders of record at the close of business on 08/11/2026.

23:24 Let me mention that factoring in both the cash dividend and the equivalent value of the stock dividend, the total estimated dividend payment is $3.23 per share. Ladies and gentlemen, with these comments, we end our presentation today. Thank you very much for joining us. And now we would like to open the phone for questions. Thank you so much. And as a reminder to ask a question, press 11 on your telephone and wait for your name to be announced.

24:02 One moment for our first question. It's from Richard Garcia Torena with Barclays. Please proceed. Great. Thank you for taking my question. Just want to talk about copper production in the quarter was down 3.5% year over year. Can you just talk about how the grades progressed at Toquepala and Kwahone? And what do you see that doing in the second half of this year?

24:36 And is that impacting your full year production expectations at all? Thank you very much for your question, Richard. Well, we have been reporting and we mentioned this at the beginning of the year that our station was at the first part of the year we were expecting to produce in 2026 about 910,000 tons of copper.

25:06 Now we're expecting for this year 917,000 tons of copper. So we're improving a little bit on our plan. But the main reason for the change or for the lower production vis a vis last year It's at ore grades, particularly at Guajone Mine where we had a reduction that translates into about 35,000 tons of lower copper production and the difference comes from Tocopala. As I mentioned, we have been at the same time doing some important efforts to increase production for the Mexican operations and that has allowed us to maintain our production levels in Mexico but having a lower volume in the range of 40,000 tons in total at the Peruvian sites.

26:09 Great. And if I can just ask a bigger picture question. You talked about $10,300,000,000 in CapEx required for your Peruvian projects. And with the new administration, is it expectations that there'll be some additional funding incentives that could be potentially in place for local production growth? And then relative to that, you did issue $1,250,000,000 of debt for Tia Maria. Is funding going to be the main expectation for financing these new projects? Or how do you think about financing the remainder of the projects? The latest bond issue, the one that we mentioned in our press release for $1,250,000,000 was mainly for financing the Tia Maria project. As you know, we expect to spend in total $1,800,000,000 in Tia Maria. So with this bond, we should cover a significant portion of it.

27:14 If by any reason we have we finished Pia Maria before spending this money, we'll have some other projects that could absorb a portion of the funds. If that will be the case, that will be a very small amount. For the Peruvian projects, we are indicating the expected capital expenditures for each of them for Los Chancas and Michiquillay. Those numbers will be reviewed and updated when we have a goal for the project as we have done in this past quarter with LPR where we have already a budget that is what we expect to spend in the construction of LPR.

28:04 Generally speaking, the company considers use of some debt at certain point in the developing of the projects of the company. Well, it's a good practice to have a balance or a better balance debt capital structure in our financial statements. That's basically it. So even though I cannot assure you that we will issue bonds or some other forms of financing at each time that we go on with the project, this is what we have been doing in the last few years. So I believe that we could move on in the same direction for the future projects as well.

28:52 Thank you. Thank you. Our next question is from Emerson Viera with Goldman Sachs. Please proceed. Hello, good morning everyone. I have two questions. The first the first the first, ma'am, wanted to speak a little bit more about your project. I understand that I'm sorry. I just had Amazon. I I I can't I can't copy you well. Can you hear better now? Yes. Okay. Go on, please. Thank you. So, yeah, I have two questions. The first of them, this is regarding your project.

29:38 I understand that the difficult progress is advancing right, but that is a critical component which is the the foundation plan. So I just wanted to to double check. Emerson, please. I think that sorry for for saying this, but could you separate a little bit your your what was from from the microphone because it's it doesn't copy you. Okay. About now? Better? Excellent. Excellent. Thank you. Thank you. I got an issue here with with the mic. So, yeah, I have two questions. First of them, on the project. On Chimaera specifically, it's good to see that physical progress is advancing.

30:25 But but I understand there's a critical component, which is the the solar mission point. So I wanna just keep a double check if the the order to purchase that equipment has already happened. And if not, if there is a risk for delaying the project. If I recall, well, last quarter, we started off in the third quarter of twenty twenty seven. And in this press release, the company mentioned it starts up in the second half. So just try to understand if you guys see risk of some delays in the project. That's for Tia Maria. Also on the Mexican project, Pilar.

31:13 Just try to listen here if the company was able to obtain the water license that was expired. You mentioned that all in one of the license have been updated, but just double check double checking if everything is indeed well placed to start the early works. So these are the projects, and then I'm happy to see another question, but I'll do it later on. Okay. Let me start by EPLR because that's the easiest way the easiest to answer. We already have the license, the water license renewed, so we're ready to go and that's why we are reporting it, beginning initial works of construction in September and then a full construction processing in the first quarter of next year.

32:05 For Tia Maria, are several we are putting purchase orders and doing the proper contacts to different suppliers of the major parts of equipment. Among them, the diesel plant. For now, we don't expect that delay in the project. That's what we are reporting. But if there is a perception that the project will delay a little bit, we will certainly report that to the market. But for now, we don't have nothing to report on this. All right. Thank you. Just a second one right now on sales, right? There was a gap this quarter. Sales was a little bit below production.

32:57 So just trying to understand if you guys expect to see a reversal in the second half. I don't know, maybe inventories are being consumed so that we see sales coming above production for the second half of this year? Thank you. No. I think we we should do a little bit better in terms of volume in the second half. The reason for that is that we have been increasing a little bit our maturing process at our at our operations in in the first half of the year. So I expect that metal to show up and being available for for sales at certain points in the second half of this year. So that's my personal view. For now, we are advising the market on 917,000 tons of total production for the year.

34:04 So that's basically what we're thinking now. Okay. Thank you. Very helpful. Thank you. Our next question comes from Rafael Barcelos with Bradesco PBI. Please proceed. Good morning and thanks for taking my questions. So the first question, I just wanted to get your views on the overall political environment in Peru. I mean, we are about to start a new government. So if you can give your broad view on what can change going forward on the regulatory backdrop. And on top of that, if you can comment specifically about two projects, right, of course, the first one, Tia Maria, what any change for the project?

34:55 And I understood from last question that you see Tia Maria on track. I just wanted to get more insights on where are the main risks for us to keep an eye on here on the execution of the project, particularly because 2027 is a key year in terms of CapEx disbursement, right? So I just wanted to understand what do you see the risks? In the case of Lucianca's also in these contexts on the political environment, I mean, you've been facing these illegal mining activities, right? So just wanted also to understand how Kendall's things changed given the new government.

35:43 And And as a second question, can you comment a bit more on the outlook that you see for copper and byproducts production for the second half for the second half of the year and 2027? I mean, understanding that you can, you know, you have a chance to beat the previous guidance for the year, which was 911,000 tons, right? But I just wanted to understand how does it change your view for '27 as well? Thank you. Okay. Thank you for your questions, Rafael. On the political environment, well, we see we have to review the the plan that was presented by the the elected president for the elections, for Keiko Fujimori.

36:39 He was very they they are considering several initiatives that we believe will be positive for the mining industry in Peru. In general, for the economy, but particularly in the mining industry. I think that at the same time, the priorities that the incoming administration have mentioned are important because one of them is the fight to illegal mining, which is something that is affecting us on the Chancas. So we believe that some initiatives that are twofold. A new law for artisan mining, which is something that is widespread in Peru and have centuries of activities being through a strong mining country.

37:34 So for that, I think that we'll see some positive developments. Some of them will be favorable for Los Chancas, we believe so. For the Tia Maria project deployment, I think that the risks are the usual ones that you may expect for a project under construction. Even though we have reviewed very very strong detail, all the matters that may impact the project, Well, sometimes things are not as expected, but for now, we don't see anything like that showing up. The social environment is positive for the project. We are working with the local population in several initiatives.

38:25 There are, as we reported, a significant amount of people from the area. In many cases, were former protesters of the project or family of those persons and they are okay. We are fine in that regard. I already commented on the the on the what we're seeing, how we're seeing right now with. On the outlook for corporate by product for the second half, I mentioned already for this year our goals for the four materials that we copper, moly, silver, and zinc and sulfuric acid. So you already have this information.

39:22 Next year, for copper, we are expecting to produce more or less the same that we have this year. For now, that's what we have to report. In 2028, have we for next year some help for we expect to have it some some help from Tia Maria's tonnage, hopefully, the in the part of 2027. For 2028 and on, we expect the Tia Maria to fill in and increase our production level to about 970,000 tons.

40:08 In 2029, our copper production should over 1,000,000 tons, 1,060,000 tons. That's our current expectation. A portion of that will come from Tia Maria and from recoveries in ore grades at Pocapala and Guajuan. Basically, in 2029 we will have the positive benefit Utilard and some other better grades at the Mexican operation. We are very positive. As you know, our goal is to be over 1,600,000 tons of copper by 2033, 2034, and that's what we're heading towards with organic growth in projects pretty much fully owned by the company.

41:11 And just as follow-up, can can you be more specific when when you say the you know, about expectations for a a new or revision on the mining law in Peru, which sort of aspects you believe could improve in the medium term? No. It's more than reviewing the mining law. It's improving the safety, the security environment in the country, that by itself would be very useful for mining projects in Peru. Besides that, we expect the government to maintain the account order. On top of that, there has been some changes in the institutional arrangement of the country. We will have a senate in Peru that we have in capital over thirty years and some other changes that will make the political environment much more stable. That's our expectations.

42:16 We have to see what the elected president, Fusimori, proposes in in her speech in July 28 when she will take over the position of president. That's when we'll see specifically what their their goals are and and have more clarity on this. But, you know, view is it's a positive one, as I mentioned. Okay. Very clear. Thank you. Thank you very much. Thank you. Our next question is from David Feng with CICC. Please proceed. Hi, good morning. For taking my question. My first question is a follow-up question on the new administration.

43:07 We saw that the incoming administration has proposed distributing up to 40% of the mining canon directly to their presenting producing areas. So based on your experience in local communities in Peru, do you believe this would materially improve community acceptance or could it make the existing community agreements more complicated? In this case, David, we will not comment on this until we see it specifically what's the proposal. If it holds, that's the very first thing, if it will hold or they have to review it and we will know that as the policies of the new administration are deployed. So for now, we don't have anything to comment on this.

44:06 Okay, understood. And I have another question on GMRE. The So we saw that you have provided a cash cost estimate of 1.96 per pound dollar per pound. Just would like to double confirm if it's cost or byproduct credits and if so, what's byproduct price assumptions on the team does estimate? And should we expect it to be lot of my average cost or cost can be reached at the initial years of the project, let's say, 2008 or '29? Okay, well, Pia Maria has no byproducts.

44:56 So it's just copper that we will reproduce. And as you mentioned, the cash cost estimate that we have is a dollar and 16¢. So it's 1.16. That's the cash cost that we have as an estimate right now. Hopefully, well, we have seen some changes in in in few prices and some other materials, but so far, this is the estimate that we're looking at right now. Thank you so much. I'll pass it on. You're welcome. Thank you. And our next question is from John Tumazos with John Tumazos Very Independent Research. Please proceed.

45:44 Thank you very much. I want to try to understand a little better some of the project delays and maybe LPVAR is a simple one just 36,000 tons copper production smaller open pit. The predecessor Mercator bought it in 2009 for 40,000,000 from Stingray. You bought it out for a 100,000,000 in 2015 from the Mercator bankruptcy. It's now eleven years that you've had it. Please explain the delays in engineering and permitting and why it takes so long. This seems to be much easier than Tia Maria or Michiquillay or at Larka or some of the other projects.

46:39 Thank you for your question, John. Each project has its own challenges. And in the case of FDR, we had review in order to be absolutely sure that we were getting the recoveries on copper that we were expecting for the project. That was something that took us a little bit longer than what we leave when we acquired the project you mentioned already a year. Besides this, in the meantime, we had to renew some of the permits that we have for the project, and we have finishing this process recently and that's why our last board meeting, the project was presented for approval and we got it. So that's why we're moving forward with it.

47:41 So usually, projects have different challenges. In this case, it was the very beginning, as I say, some technical issues that have to be quite clear before we go into the investment. And the second is well, some some permitting that given the time time that we spend in in solving technical issues took a little bit longer as well. How much was the impact when Obrador wanted to halt the open pits in Mexico? Is that the way it? For for us, it has no impact since we already have our concessions, including the open pit ones. And so there's no point on this. For instance, the Pilares open pit and we are we are fine moving forward with it with all the permitting for the project.

48:38 Thank you. I just I wait many years and I hope God gives me enough years to see everything get built. We hope so. Thank you. And thank you. And this concludes our q and a session. I will pass it back to Raul Jacob for closing comments. Thank you, Carmen. So, this will conclude our conference call for Southern Copper's second quarter twenty twenty six results. We certainly appreciate your participation and hope to have you back with us when we report the third quarter of this year results. Thank you very much for being with us today and have a nice day. And this concludes today's conference. Thank you for participating and you may now disconnect.