Edgar Filing: SOUTHERN COPPER CORP/

e425

Filed by Americas Mining Corporation
Filed by Grupo México, S.A.B. de C.V.
Pursuant to Rule 425 under the Securities Act of 1933

Subject Company: Southern Copper Corporation
Commission File No.: 001-14066

ADDITIONAL INFORMATION AND WHERE TO FIND IT

Americas Mining Corporation (AMC) and Southern Copper Corporation (Southern Copper) will file an Information Statement/Prospectus with the Securities and Exchange Commission. Investors and security holders are urged to read carefully the Information Statement/Prospectus regarding the proposed transaction when it becomes available, because it will contain important information. Investors and security holders may obtain a free copy of the Information Statement/Prospectus (when it is available) and other documents containing information about Southern Copper, without charge, at the SEC’s web site at http://www.sec.gov. Free copies of the Information Statement/Prospectus may be obtained by directing a request to Americas Mining Corporation, 1150 North 7^th Avenue, Tucson, AZ 85705, USA, Attention: General Counsel. Free copies of Southern Copper Corporation’s filings may be obtained by directing a request to Southern Copper Corporation, 11811 North Tatum Blvd., Suite 2500, Phoenix, AZ 85028, USA, Attention: Investor Relations Department.

FORWARD-LOOKING STATEMENTS

Statements in this transcript that are “forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: AMC’s ability to enter into definitive agreements with respect to the proposed transaction; the results of a due diligence review of Southern Copper; AMC’s ability to achieve the synergies and value creation contemplated by the proposed transaction; AMC’s ability to promptly and effectively integrate the businesses of Southern Copper and ASARCO; the costs associated with the proposed transaction; the timing to consummate the proposed transaction; any necessary actions to obtain required regulatory approvals; the ability to obtain existing lender and other required third-party consents; increased costs; metal prices; unfavorable economic conditions; changes in the legal and regulatory environment; and unstable political conditions, civil unrest or other developments. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Neither Grupo México nor AMC undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

*****

The following is a press release issued by Grupo México on February 4, 2011.

Fourth Quarter 2010 Results

Mexico City, February 4, 2011 — Grupo México, S.A.B. de C.V. (“Grupo México” — BMV: GMEXICOB) reports its results for the fourth quarter (“4Q10”) and full year 2010.

Contacto
Inversionistas:

Jorge Pulido
(55) 1103-5320

Correo electrónico
ir@mm.gmexico.com

Portal
www.gmexico.com

Grupo México
Financial Highlights in Dollars¹

•

Cumulative consolidated sales for 2010 were US$8.083 billion, a 67% increase over the previous year. Sales for 4Q10 were US$2.251 billion, compared to US$1.484 billion for 4Q09, a 52% increase attributable to additional production by the Mining Division, the incorporation of Asarco, and better metals prices. The Transportation Division reported a significant increase in sales of 28% over 2009 and 19% comparing 4Q10 to 4Q09.

•

Cost of sales for 2010 was US$3.904 billion and for 4Q10 was US$928 million, only a 25% increase from 4Q09, despite the incorporation of Asarco and increased energy costs.

•

The cumulative EBITDA for 2010 was US$4.016 billion, a 90% increase over the previous year. The EBITDA for 4Q10 was US$1.235 billion, which compares favorably with the US$688 million for 4Q09, representing a 79% increase. 4Q10 improved considerably compared to the first three quarters of the year, posting an increase of 28% over 3Q10. Consequently, the EBITDA margin for 4Q10 increased significantly to reach 55% of sales.

•

Net consolidated earnings for 2010 totaled US$1.637 billion, 84% more than in the previous year. Net consolidated earnings for 4Q10 were US$527 million, 53% higher than the US$343 million posted in 4Q09, equivalent to 23% of sales.

•

Total consolidated debt as of December 31 was US$3.947 billion, which after taking account of US$3.000 billion in cash and banks balance, represents a net debt of US $947 million. During 2010 US$1.027 billion in debt was paid.

•

On January 28, 2011, the Board of Directors approved a dividend payment in cash of $0.30 pesos per outstanding share, to be paid on single exhibition on February 18, 2011.

Financial Highlights for Grupo México


	Fourth Quarter						Variance				January – December						Variance
(Thousand US Dollars)	2010			2009			US$000		%		2010			2009			US$000		%
Sales		2,250,910			1,484,289			766,621		51.6		8,083,041			4,827,344			3,255,697		67.4
Cost of Sales		928,385			744,075			184,310		24.8		3,903,952			2,574,088			1,329,864		51.7
Operating Income		1,068,964			586,724			482,240		82.2		3,341,180			1,688,538			1,652,642		97.9
EBITDA		1,235,167			688,459			546,708		79.4		4,015,747			2,115,387			1,900,360		89.8
*EBITDA Margin (%)*		*54.9*	%		*46.4*	%						*49.7*	%		*43.8*	%
Net Income		526,538			343,231			183,307		53.4		1,636,976			887,997			748,979		84.3
*Profit Margin (%)*		*23.4*	%		*23.1*	%						*20.3*	%		*18.4*	%
Investments / Capex		240,389			161,654			78,735		48.7		604,286			599,563			4,723		0.8
Employees		23,931			23,002			929		4.0		23,931			23,002			929		4.0

Number of Shares Outstanding 7,785,000,000 as of December 31, 2010


¹		All figures are expressed in US dollars following GAAP accounting principles, unless otherwise stated.



Fourth Quarter 2010 Results

Highlights

Mining Division
Americas Mining Corporation

	•		Combination of Operations of Asarco and Southern Copper Corporation (SCC) under Common Ownership.- The special committee of independent directors, formed August 10, 2010 by SCC, continues to evaluate the AMC proposal to combine on behalf of the public stockholders of SCC and Asarco. The special committee has retained the services of a mining advisor to assist with this transaction and help the special committee with the evaluation of the proposal. GMéxico believes that the combination of SCC and Asarco will provide important synergies, including reductions in operating, transportation, and overhead, and capital expenditure savings, which would benefit all shareholders of the combined entity.

	•		Buenavista del Cobre (formerly Cananea).- During 2010, the Company restarted operations at the Cananea mine. To reflect the start of a new era, and to pursue this asset to its maximum capacity, the company operating Cananea changed its name to Buenavista del Cobre, SA de CV. The SX/EW Plant produced 15,711 tons of copper cathode in 4Q10, for a 2010 total of 20,696 tons of copper cathode. Operations began at the Concentrator Plant in October and maximum capacity is expected to be reached during 1Q11. The current capacity of both plants is 180,000 tons per year. The implementation of community works and infrastructure, health, and education programs continues to benefit the surrounding area.

			At year-end 2010, SCC spent US$71 million in the rehabilitation of mine and plants at the Buenavista property and expects to spend US$37 million in 2011.

	•		Record Production of Molybdenum.- During 2010, AMC reached a record production of 20,519 tons of molybdenum, a 9.8% increase over the 18,687 tons produced in 2009.

	•		Cost Reduction.- The consolidated operating cost (cash cost) for AMC was US$ 57 cents in 2010. SCC reduced its cost to US $16.8 cents per pound in 2010, compared to US $35.8 cents in 2009. Asarco continued to reduced its operating cost (cash cost), down from US$1.58 in 2009 to US$1.50 per pound in 2010. This improvement reflects greater productivity and operating efficiency, and also greater contributions from byproducts.

	•		Capital Expenditures.- The Board of Directors reviewed its capital program, approving a capital budget of US$1.907 billion for 2011. The Company intends to allocate US$881 million for projects in Mexico, US$862 million for projects in Peru, and US$164 million for Asarco’s operations in the US. This program considers the potential of the reserves and is an important part of the Company’s five-year capital program, which aims to significantly increase the production capacity of both copper and molybdenum. The capital program for 2011 includes US$524 million for the Buenavista expansion in Mexico, US$324 million for the Tía María project, and US$271 million for the Toquepala expansion in Peru.

	•		Copper Hedging.- Taking advantage of record high copper prices and to reduce revenue volatility, AMC has engaged swaps for 32% of the estimated production for 2011. AMC also acquired zero cost collars for 36% of the estimated production for 2011 and 3% for 2012. For 2011, SCC has hedged 28% of its copper production through swaps at an average price of US $4.00 and 31% of its production through zero-cost collars with an average floor price of US $3.02 per pound and an average cap price of US $4.84 per pound; Asarco has hedged 45% of its copper production through swaps at an average price of US $3.77 and 50% of its production



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Fourth Quarter 2010 Results

			through zero-cost collars with an average floor price of US $3.00 per pound and an average cap price of US $4.53 per pound.

			For 2012, SCC it has hedged 2% of its copper production through zero-cost collars with an average floor price of US $3.50 per pound and an average cap price of US $5.01 per pound; Asarco it has hedged 6% of its copper production through zero-cost collars with an average floor price of US $3.50 per pound and an average cap price of US $5.03 per pound .

	•		Best Corporate Bond 2010 Award.- The financial publication LatinFinance awarded this prize to the bond released in April 2010 for US$1.500 billion. The award recognizes excellence in execution and pricing based on the Company’s risk rating, which is based on its strong ore reserves, high quality of assets, leadership in low cost structures, and conservative financial policies, which led to an oversubscription of more than US$9.000 billion.

	•		Best Syndicated Loan 2010 Award.- LatinFinance also awarded this prize to AMC’s syndicated loan for US $1.500 billion secured for the successful reorganization of Asarco. This award recognizes the amount and complexity of the operation (multi-currency and multi-tranche), given the uncertainty in the markets, lack of liquidity in the financial system, and the complexity of the loan structure.

	•		IMMSA recognized with an “Equal Opportunity Employer” Distinction.- The Secretaria del Trabajo y Previsión Social (STPS) (Department of Labor and Social Welfare) awarded Industrial Minera México’s Nueva Rosita Plant an Inclusive Company Distinction for its outstanding work in hiring marginalized persons.

	•		“OHSAS 18001:2007” Certification.- In 2010, all the Mexican operation units received this certification to its Sistema de Gestión de la Salud y Seguridad Laboral (Medicare and Security Labor.) We expect to obtain Buenavista del Cobre certification in the coming months.

	•		Investor Relation Award.- The Institutional Investor magazine recognize SCC Investor Relations as one of the top-three mining teams in Latin-America.

Transportation Division

	•		Ferromex.- In 4Q10, Ferromex again reported a historic high for both loaded cars and net tons/km, surpassing the previous record set in 4Q09 by 11%. The Intermodal segment reported the most dynamic growth during the year, with a 30% increase in the number of containers transported, as a result of new record traffic with their origin or destination in Manzanillo (12.5% more than 2009) and the InterPacific service, which posted a growth of 71%.

			In terms of Railroad Safety, Ferromex had its best performance in November 2010, while 2010 was also its best year historically, with a rate of 0.73 events per billion gross tons/km, increasing 12.1% from the previously record set in 2009.

	•		Ferrosur.- Railroad service was affected in October by Hurricane Karl and Tropical Storm Matthew. Traffic from Mexico City to Coatzacoalcos was cancelled for over 25 days, including the traffic representing the greatest volume for Ferrosur, this being the traffic from Coatzacoalcos to San Martín Texmelucan, Pue. The comparison for October 2010 against the same month the previous year showed significant reductions in revenue (25%), cars (14%), and net tons/km (38%). Despite this, Ferrosur ended the year with increases of 11.1% in revenue, 5.8% in cars, and maintain the same level of net tons/km as 2009.



4Q10	www.gmexico.com	Page 3



Fourth Quarter 2010 Results

	•		Capital Expenditures Railroad.- Capital expenditures in 4Q10 were US$108.2 million, and reached US$174.3 million invested in 2010. The amount reflects investments mainly in expansions, construction of new sidings and growth of locomotive fleet. During 2010 the fleet reached 711 locomotives, allowing to handle increased volumes from new Pemex traffic of fuel and oil. The new locomotives, which will improve efficiency and reliability as they facilitate tracking and improve performance on curves. Pollutant emissions will also be reduced and fuel performance will improve.

			Investments of US$400 million are planned for 2011, including the purchase of 59 new locomotives and with this addition fleet increases to 770 locomotives, and the completion of sidings which will increase track capacity and reach a higher speed. This investment amount will be the highest in the history of the railroad division.

Financing

The net financing cost as of December 31, 2010 was US$281.6 million.

Debt Profile


	As of December 31
	2010							2009
	Gross		Cash &		Net			Gross		Var.
(US$000)	Debt		Banks		Debt			Debt		Debt
Grupo Mexico		—		420,326		(420,326	)		—		—
Americas Mining Corporation		836,526		109,787		726,739			1,489,740		(43.8	)
Southern Copper Corporation		2,760,401		2,192,677		567,724			1,280,252		115.6
Asarco		—		38,338		(38,338	)		280,000		(100.0	)
Infraestructura y Transportes Mexico (ITM)		—		86,207		(86,207	)		—		—
GFM — Ferromex		350,269		152,288		197,981			368,118		(4.8	)
Grupo Mexico (Consolidated)		3,947,196		2,999,623		947,573			3,418,110		15.5

During 2010, US$1.027 billion in debt was paid. It is worth noting that the prepayments amounted to US$650 million for the US$1.500 billion syndicated loan that AMC entered into on December 9, 2009 in connection with the reorganization of Asarco, and the prepayment on the US$280 million asbestos note, due December 9, 2010.

Ferrosur’s debt was US$139.1 million as of December 31, 2010, which after taking account of US$69.7 million in cash and banks balance, represents a net debt of US$69.3 million.

In December 2010, Fitch Ratings upgrade its rating for Grupo Mexico, Americas Mining Corporation, and Grupo Ferroviario Mexicano (GFM) from BBB- to BBB. In addition, Fitch upgraded its rating for Ferromex from AA(mex) to AA+(mex). The improved rating for GMexico incorporates the favorable decisions for Asarco and Buenavista del Cobre, and also the solid financial position of the mining and transportation subsidiaries.



4Q10	www.gmexico.com	Page 4



Fourth Quarter 2010 Results

Mining Division
Americas Mining Corporation

Metals Market

Metals prices remain volatile, although there is a clear upward trend, supported by consumption in Asia, which represents 60% of the world’s copper consumption. In addition, a weak dollar against most currencies, and the expectation there will be a copper production deficit this year also push prices up.

We believe the fundamentals are in place to sustain the high copper prices; however, we are not ruling out additional volatility in prices in the short term. We believe that the constrained supply in the mining industry will continue into 2011, along with low inventory levels, declining ore grades, a sustained growth among emerging economies, and the gradual economic recovery of the developed countries.

Average Metals Prices


		3Q		Fourth Quarter				Var.			Var. %			January – December				Var.
		2010		2010		2009		%			4Q10-3Q10			2010		2009		%
Copper	($cts/Pound)		328.53		391.75		301.57		29.9			19.2			341.77		233.59		46.3
Molybdenum	($dlls/Pound)		14.86		15.69		11.29		38.9			5.6			15.60		10.91		43.0
Zinc	($cts/Pound)		91.32		105.00		100.41		4.6			15.0			98.01		75.07		30.5
Silver	($dlls/Ounce)		18.98		26.47		17.56		50.7			39.5			20.18		14.67		37.5
Gold	($dlls/Ounce)		1,226.58		1,367.49		1,101.64		24.1			11.5			1,224.66		972.98		25.9
Lead	($cts/Pound)		92.18		108.40		103.99		4.2			17.6			97.45		77.98		25.0
Sulfuric Acid	($dlls/Ton)		56.31		53.41		54.57		(2.1	)		(5.1	)		53.73		50.50		6.4


Source:		Copper, Zinc & Gold — LME; Silver — COMEX; Molybdenum — Metals Week Dealer Oxide Sulfuric Acid — AMC

Mining Production and Sales

Copper production in 4Q10 was 184,266 tons, 46% higher than same period 2009. The reincorporation of Asarco contributed with 53,712 tons, while Southern Copper’s copper production increased 4,466 tons, due mainly to production of 15,711 tons of copper cathode at Buenavista del Cobre (formerly Cananea). Copper production in 2010 was 687,980 tons, a 39% increase over 2009.

Copper production for 2011 is expected to be 830,000 tons, of which 630,000 tons will be produced by SCC mines and 200,000 tons by Asarco mines.



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Fourth Quarter 2010 Results


		Fourth Quarter				Variance						January – December				Variance
Mining Division		2010		2009		US$000			%			2010		2009		US$000			%
Copper	(m.t.)
Production			184,266		126,087		58,179			46.1			687,980		496,022		191,958			38.7
Sales			186,144		134,428		51,716			38.5			701,708		515,206		186,502			36.2
Molybdenum*	(m.t.)
Production			5,246		5,052		194			3.8			20,519		18,687		1,832			9.8
Sales			5,183		5,024		159			3.2			20,508		18,589		1,919			10.3
Zinc*	(m.t.)
Production			22,444		27,926		(5,482	)		(19.6	)		99,194		110,430		(11,236	)		(10.2	)
Sales			23,661		25,873		(2,212	)		(8.5	)		93,964		103,840		(9,876	)		(9.5	)
Silver	(Koz)
Production			3,945		3,363		582			17.3			15,242		13,324		1,918			14.4
Sales			4,184		5,251		(1,067	)		(20.3	)		19,584		18,473		1,111			6.0
Gold*	(Oz)
Production			4,916		3,966		950			24.0			17,204		15,072		2,132			14.1
Sales			13,654		17,663		(4,009	)		(22.7	)		69,690		63,478		6,212			9.8


*		Asarco does not produce this mineral.

Molybdenum production was 5,246 tons in 4Q10 and posted a record high of 20,519 tons cumulative for 2010, compared to the production of 5,052 tons and 18,687 tons for the same periods in 2009. The 10% increase in production is mainly due to improved ore grades and recoveries at the Toquepala and La Caridad mines.

Sales Distribution

The following chart reflects AMC’s cumulative sales share by metal as of December 31, 2010:



4Q10	www.gmexico.com	Page 6



Fourth Quarter 2010 Results

Southern Copper Corporation
Financial Highlights


	Fourth Quarter						Variance				January – December						Variance
(Thousand US Dollars)	2010			2009			US$000		%		2010			2009			US$000			%
Sales		1,498,991			1,136,004			362,987		32.0		5,149,500			3,734,280			1,415,220			37.9
Cost of Sales		535,439			498,849			36,590		7.3		2,099,438			1,823,673			275,765			15.1
Operating Income		852,112			529,093			323,019		61.1		2,604,204			1,485,148			1,119,056			75.3
EBITDA		926,778			615,930			310,848		50.5		2,906,707			1,813,815			1,092,892			60.3
*EBITDA Margin (%)*		*61.8*	%		*54.2*	%						*56.4*	%		*48.6*	%
Net Income		492,249			363,270			128,979		35.5		1,554,051			929,381			624,670			67.2
Profit Margin (%)		*32.8*	%		*32.0*	%						*30.2*	%		*24.9*	%
Investments / Capex		127,561			98,082			29,479		30.1		408,734			414,822			(6,089	)		(1.5	)

SCC sales for 2010 reached US$5.1495 billion, an increase of 37.9% over 2009. Sales for 4Q10 were US$1.4989 billion, compared to US$1.1360 billion for the same period the previous year. This increase is due to improved prices for the metals that SCC produces and the restarting of production at Buenavista del Cobre (formerly Cananea).

Projects and Exploration

Construction continues on the new SX/EW plant and its Quebalix III (conveyor belt crushing and transport system) at Buenavista. The detailed engineering studies started in January 2011, and when completed, equipment will be purchased and the infrastructure construction will begin. The budget for these projects is US$236 million, of which US$37.3 million had been disbursed as of December 31, 2010.

Basic engineering studies are underway for the Molybdenum plant at Buenavista, and are expected to be completed in 1Q11. Subsequently the metallurgic tests will be conducted and the detailed engineering studies will be started, followed by the purchase of equipment.

US $123.1 million has been invested in the expansion of the concentrator at the Toquepala mine in Peru. The approval of the use of high pressure grinding rolls (HPGR) and a wet process for the tertiary grinding stage will reduce capital and operating costs. The milling process is being reevaluated as this may increase the mine’s copper production capacity to 125,000 tons per year. The presentation of the Environmental Impact Study has been rescheduled for 2Q11 because of this reevaluation. The project is now expected to start in 1Q13.

Work continues on the expansion project at Cuajone and US$41.3 million of the US$350 million allotted had been invested as of close 2010. The project includes a variable cut-off grade methodology that will increase copper production by 147,000 tons and molybdenum by 3,000 tons over the next 10 years.

Regarding Tía María, the Company has sent additional information on the project to the government, including the possibility of using seawater. The government is expected to release a decision on the environmental impact study in April 2011, following which construction will begin in 2Q11 and production in 4Q12. The estimated investment is $934.0 million, of which $432.5 million had been disbursed as of December 31, 2010.



4Q10	www.gmexico.com	Page 7


Fourth Quarter 2010 Results

Asarco²
Financial Highlights


	Fourth Quarter						Variance						January – December						Variance
(Thousand US Dollars)	2010			2009			US$000			%			2010			2009			US$000			%
Sales		476,317			371,106			105,211			28.4			1,703,690			1,164,942			538,748			46.2
Cost of Sales		203,793			239,727			(35,934	)		(15.0	)		953,770			802,135			151,635			18.9
Operating Income		174,818			89,736			85,082			94.8			509,324			274,049			235,275			85.9
EBITDA		272,906			140,819			132,087			93.8			817,966			362,123			455,843			125.9
*EBITDA Margin (%)*		*57.3*	%		*37.9*	%								*48.0*	%		*31.1*	%
Net Income		139,892			266,243			(126,351	)		(47.5	)		386,494			267,612			118,882			44.4
*Profit Margin (%)*		*29.4*	%		*71.7*	%								*22.7*	%		*23.0*	%
Investments / Capex		26,508			8,783			17,725			201.8			45,565			57,328			(11,763	)		(20.5	)


²		The Asarco operation consolidated again with GMéxico results as of December 10, 2009. The figures for 4Q09 are provided for comparative purposes only.

Asarco’s copper production in 4Q10 was 53,712 tons, which represents an increase of 16% over 4Q09. Copper production in 2010 was 209,453 tons, 13% more than the 185,894 tons produced in 2009. This increase is mainly stems from an improved ore grade at the Mission and Ray mines, and also improved recovery at Ray.

Asarco sales in 4Q10 were US$476.3 million, compared to US$371.1 million in 4Q09, an increase of 28.4%, attributable to greater copper production and improved metals prices. Cumulative sales for 2010 were US$1.7037 billion, 46.2% more than in 2009.

The cost of sales for 4Q10 was US$203.7 million, 15% less than the US$239.7 million of 4Q09, mainly as there is no effect of the inventory reevaluation conducted after December 10, 2009 when Asarco reincorporated into GMexico.

EBITDA for 4Q10 was US$272.9 million, equivalent to 57.3% of sales, and representing a growth of 93.8% compared to 4Q09. EBITDA for 2010 amounted to US$817.9 million.

Capital expenditures in 4Q10 were US$26.5 million, mainly attributable to the payment of four new 400-ton Liebbher trucks, which were received and put into operation in 3Q10 for the Ray mine.



4Q10	www.gmexico.com	Page 8


Fourth Quarter 2010 Results

Transportation Division

ITM/Ferromex
Financial Highlights


	Fourth Quarter						Variance						January – December						Variance
(Thousand US Dollars)	2010			2009			US$000			%			2010			2009			US$000		%
Load Volume (MillionTons/Km)		11,133			10,313			820			8.0			45,277			39,205			6,072		15.5
Sales		300,283			251,909			48,374			19.2			1,177,522			920,056			257,466		28.0
Cost of Sales		203,870			160,061			43,809			27.4			773,301			608,937			164,364		27.0
Operating Income		60,688			58,864			1,824			3.1			269,299			190,130			79,169		41.6
EBITDA		79,526			80,205			(679	)		(0.8	)		370,568			272,813			97,755		35.8
*EBITDA Margin (%)*		*26.5*	%		*31.8*	%								*31.5*	%		*29.7*	%
Net Income		48,165			33,463			14,702			43.9			185,484			121,107			64,377		53.2
*Profit Margin (%)*		*16.0*	%		*13.3*	%								*15.8*	%		*13.2*	%
Investments / Capex		77,274			47,503			29,771			62.7			131,993			124,233			7,760		6.2

Note: ITM does not consolidate Ferrosur as the resolution from the CFC is still pending.

The volume transported during 2010 increased 15.5%, moving 45.277 billion net tons/km, compared to 39.205 billion moved in 2009. The sectors that reported the greatest increase were: intermodal 39%, metals 27%, automotive 24%, agriculture 20%, and steel products 15%.

Transportation Division revenue increased 28% to US$1.178 billion in 2010, compared to US$920.0 million in 2009. This increase is explained by the mentioned increase in volume as a result of the economic recovery and a more favorable mix of rates and traffic.

The following chart shows the revenue contribution by segment as of December 31, 2010:

The operating cost for 2010 was US$773.3 million, 27% above that of 2009. This increase is explained by additional freight volume, a 9.8% peso increase in the price of diesel, increases in labor, maintenance, connection and terminal services, locomotive leasing, and exchange rates. These effects were mitigated by better performance by our locomotives.

EBITDA for 2010 was US$370.5 million (equivalent to 31% of sales), increasing 35.8% over 2009.



4Q10	www.gmexico.com	Page 9


Fourth Quarter 2010 Results

Ferrosur
Financial Highlights


	Fourth Quarter						Variance						January – December						Variance
(Thousand US Dollars)	2010			2009			US$000			%			2010			2009			US$000		%
Load Volume (MilionTons/Km)		1,513			1,695			(182	)		(10.7	)		6,840			6,833			7		0.1
Sales		61,215			58,377			2,838			4.9			265,070			223,433			41,637		18.6
Cost of Sales		47,199			42,093			5,106			12.1			187,700			156,912			30,788		19.6
Operating Income		5,145			8,022			(2,877	)		(35.9	)		42,175			35,299			6,876		19.5
EBITDA		10,900			17,925			(7,025	)		(39.2	)		65,504			62,121			3,383		5.4
*Margin EBITDA (%)*		*17.8*	%		*30.7*	%								*24.7*	%		*27.8*	%
Net Income		3,119			1,625			1,494			91.9			23,100			18,502			4,598		24.9
*Margin Profit (%)*		*5.1*	%		*2.8*	%								*8.7*	%		*8.3*	%
Investments / Capex		35,457			29,221			6,236			21.3			47,374			42,205			5,170		12.2

Ferrosur’s revenue for 2010 was US$265 million, 18.6% higher than that posted in 2009; despite a marginal growth of 0.1%, the net tons/km transported increased from 6.833 billion in 2009 to 6.840 billion in 2010.

EBITDA for Ferrosur in 2010 was US$65.5 million, 5.4% higher than in 2009, representing a margin of 24.7%, due mainly to railroad service being affected during October because of Hurricane Karl and the effect of the exchange rate.

The following chart shows the revenue contribution by segment as of December 31, 2010:

The average exchange rate in 4Q10 was $12.39, compared to $13.07 for the same period in 2009, while for the twelve month period, the average in 2010 was $12.63, compared to $13.50 in 2009, resulting in a positive effect of 6.5%.

* * * * *



4Q10	www.gmexico.com	Page 10



Fourth Quarter 2010 Results

Company Profile

Grupo México (“GMéxico”) is a holding company whose main activities are: (i) mining, being one of the world’s largest integrated copper producers; (ii) railroad service with the most extensive network in Mexico; and (iii) drilling, engineering, procurement, and construction services. These lines of business are grouped under the following subsidiaries:

The mining division of GMéxico is represented by its subsidiary Americas Mining Corporation (“AMC”), whose principal subsidiaries are Southern Copper Corporation (“SCC”) in Mexico and Peru, and Asarco in the United States. The sum of both Ccompanies holds the world’s largest copper reserves. SCC trades on the New York and Lima stock exchanges. Its stockholders, directly or through subsidiaries, are: GMéxico (80%) and other stockholders (20%). The Company has mines, metallurgic plants, and exploration projects in Peru, Mexico, and Chile. Asarco, our wholly-owned US subsidiary, was reincorporated into GMéxico on December 9, 2009. Asarco has 3 mines and 1 smelting plant in Arizona and 1 refinery in Texas.

The transportation division of GMéxico is represented by its subsidiary Infraestructura y Transportes México, S.A. de C.V. (“ITM”), whose principal subsidiaries are (i) Grupo Ferroviario Mexicano, S.A. de C.V. (“GFM”), (ii) Ferrocarril Mexicano, S.A. de C.V. (“Ferromex”), (iii) Intermodal México, S.A. de C.V., and (iv) Texas Pacifico, LP, Inc. Ferromex is the largest railroad company with the most extensive coverage in Mexico. Ferromex has a network of 8,111 kilometers of track that cover approximately 71% of Mexico. Ferromex’s lines connect to five border points with the United States, four ports on the Pacific Coast and two on the Gulf of Mexico. Ferromex is controlled by GMéxico, holding 55.5%, with the remaining participation split between Union Pacific(26%) and Grupo Carso-Sinca Inbursa (18.5%). On November 24, 2005, GMéxico incorporated Ferrosur through Infraestructura y Transportes Ferroviarios, S.A. de C.V. (“ITF”); this acquisition is reported in the financial statements under the participation method. Ferrosur has a track network of 1,813 kilometers covering the central and southeastern part of the country, serving principally the states of Tlaxcala, Puebla, Veracruz, and Oaxaca, and has access to the ports of Veracruz and Coatzacoalcos on the Gulf of Mexico. Ferrosur is controlled by GMéxico, holding 74.99%, with Grupo Carso-Sinca Inbursa holding the remaining 25.01%.

The infrastructure and construction division of GMéxico is represented by its subsidiaries (i) México Proyectos y Desarrollos, S.A. de C.V. (“MPD”), (ii) México Constructora Industrial, SA de C.V. (“MCI”), (iii) México Compañía Constructora, S.A. de C.V. (“MCC”), (iv) Servicios de Ingeniería Consutec, S.A. de C.V.(“Consutec”), and (v) Compañía Perforadora México, S.A.P.I de C.V. (“PEMSA”). MPD, PEMSA, MCI, and MCC are wholly-owned by GMéxico. MPD, MCI and MCC are active in engineering, procurement, and infrastructure works construction projects. PEMSA offers oil and water drilling services and related value added services such as cementation engineering and directional or slated drilling. Consutec engages in integral project engineering activities.

This report includes forward-looking statements. In addition to the risk and uncertainties noted in the report, there are certain factors that could cause results to differ materially from those anticipated by some of the statements made. Many of these risks and uncertainties are related to factors beyond the reasonable control of Grupo México or that cannot be accurately estimated, such as future market conditions, metals prices, the behavior of other market stakeholders and the actions of government regulators, which are described in Grupo México’s annual report. Grupo México does not assume any obligation whatsoever regarding the updating of these projections to reflect events or circumstances occurring after the date of this report



4Q10	www.gmexico.com	Page 11



Fourth Quarter 2010 Results

GRUPO MEXICO, S.A.B. DE C.V. (GM)
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)


	Quarters									Accumulated
(Thousands of US Dollars)	Q4-10			Q4-09			Variance			2010			2009			Variance

STATEMENT OF EARNINGS
Net sales		2,250,910			1,484,289			766,621			8,083,041			4,827,344			3,255,697
Cost of sales		928,385			744,075			184,310			3,903,952			2,574,088			1,329,864

Gross profit		1,322,525			740,214			582,311			4,179,089			2,253,256			1,925,833
Gross margin		59	%		50	%					52	%		47	%
Administrative expenses		51,654			43,002			8,651			196,026			154,168			41,858
EBITDA		1,235,167			688,459			546,708			4,015,747			2,115,387			1,900,360
Depreciation and amortization		201,907			110,487			91,419			641,883			410,551			231,332

Operating income		1,068,964			586,724			482,240			3,341,180			1,688,538			1,652,643
Operating margin		47	%		40	%					41	%		35	%
Interest expense		71,505			38,214			33,291			300,137			131,380			168,758
Interest income		(7,875	)		(22,957	)		15,082			(18,472	)		(97,329	)		78,857
Financial coverage		(571	)		(386	)		(185	)		2,886			(4,695	)		7,581
Other (income) expense, net		55,125			(10,954	)		66,079			64,606			(38,520	)		103,126

Earnings before Tax		950,781			582,808			367,974			2,992,023			1,697,702			1,294,321
Taxes		292,898			137,979			154,918			935,893			556,502			379,391
Participation in subsidiary not consolidated and associated		(4,232	)		1,858			(6,090	)		(27,453	)		(17,326	)		(10,127	)

Net Earnings		662,116			442,971			219,145			2,083,583			1,158,526			925,057
Net income attributable to the non-controlling interest		135,577			99,740			35,837			446,607			270,528			176,079

Net income attributable to GM		526,538			343,231			183,307			1,636,976			887,997			748,978


BALANCE SHEET
Cash and cash equivalents		2,999,623			1,160,012			1,839,611			2,999,623			1,160,012			1,839,611
Marketable securities		76,209			24,900			51,309			76,209			24,900			51,309
Restricted cash		210,483			196,351			14,132			210,483			196,351			14,132
Notes and accounts receivable		968,507			629,524			338,983			968,507			629,524			338,983
Inventories		903,303			904,320			(1,017	)		903,303			904,320			(1,017	)
Prepaid and others current assets		335,027			1,289,420			(954,393	)		335,027			1,289,420			(954,393	)

Total Current Assets		5,493,151			4,204,527			1,288,624			5,493,151			4,204,527			1,288,624
Property, plant and equipment, Net		6,714,344			6,575,469			138,875			6,714,344			6,575,469			138,875
Leachable material, net		149,666			168,698			(19,032	)		149,666			168,698			(19,032	)
Other long term assets		1,919,583			1,513,245			406,337			1,919,583			1,513,245			406,337

Total Assets		14,276,743			12,461,939			1,814,804			14,276,743			12,461,939			1,814,804

Liabilities and Stockholders’ Equity
Current portion of long-term debt		218,345			570,039			(351,695	)		218,345			570,039			(351,695	)
Accumulated liabilities		1,811,284			1,090,736			720,547			1,811,284			1,090,736			720,547

Current Liabilities		2,029,628			1,660,776			368,853			2,029,628			1,660,776			368,853
Long-term debt		3,738,852			2,848,071			890,781			3,738,852			2,848,071			890,781
Other non-current liabilities		1,069,849			1,379,470			(309,621	)		1,069,849			1,379,470			(309,621	)

Total Liabilities		6,838,330			5,888,317			950,013			6,838,330			5,888,317			950,013
Stockholders equity		2,000,446			2,000,448			(2	)		2,000,446			2,000,448			(2	)
Other equity accounts		(563,445	)		(92,769	)		(470,677	)		(563,445	)		(92,769	)		(470,677	)
Retaining earnings		4,486,467			3,180,909			1,305,559			4,486,467			3,180,909			1,305,559

Total Stockholders’ equity		5,923,468			5,088,588			834,880			5,923,468			5,088,588			834,880
Non-controlling interest		1,514,946			1,485,035			29,911			1,514,946			1,485,035			29,911

Total Liabilities and Equity		14,276,743			12,461,939			1,814,804			14,276,743			12,461,939			1,814,804


CASH FLOW
Net earnings		662,116			442,971			219,145			2,083,583			1,158,526			925,057
Depreciation and amortization		201,907			110,488			91,419			641,883			410,551			231,332
Deferred income taxes		(32,187	)		(2,196	)		(29,991	)		(103,577	)		24,086			(127,663	)
Capitalized leachable material		(25,903	)		—			(25,903	)		(93,520	)		—			(93,520	)
Participation in subsidiary not consolidated and associated		(4,232	)		1,858			(6,090	)		(27,453	)		(17,326	)		(10,127	)
Other Net		18,443			75,032			(56,589	)		87,662			26,140			61,522
Changes in assets and liabilities		(41,391	)		275,334			(316,726	)		550,637			138,703			411,934

Cash generated by operating activities		778,753			903,487			(124,735	)		3,139,215			1,740,680			1,398,535
Capital expenditures		(240,389	)		(161,654	)		(78,735	)		(604,286	)		(599,563	)		(4,723	)
Purchase of marketable securities		(27,992	)		7,899			(35,891	)		(51,309	)		147,502			(198,811	)
Restricted cash		13,879			(196,351	)		210,230			(14,132	)		(196,351	)		182,219
Investment in ASARCO		—			(2,152,489	)		2,152,489			—			(2,152,489	)		2,152,489
Other — Net		12,589			(86,518	)		99,107			(258,238	)		(343,904	)		85,666
Cash used in investing activities		(241,913	)		(2,589,113	)		2,347,200			(927,965	)		(3,144,805	)		2,216,840
Debt incurred		138			1,499,790			(1,499,652	)		1,500,149			1,500,000			149
Debt amortization		(66,614	)		(8,932	)		(57,682	)		(1,026,699	)		(57,139	)		(969,560	)
Dividends paid		(239,089	)		(131,778	)		(107,310	)		(795,048	)		(455,668	)		(339,380	)
Other		—			—			—			—			(124,332	)		124,332

Cash used in financing activities		(305,565	)		1,359,080			(1,664,644	)		(321,598	)		862,861			(1,184,459	)
Effect of exchance rate changes on cash and cash equivalents		(57,830	)		(50,943	)		(6,887	)		(50,041	)		(84,137	)		34,096

Net increase (decrease) cash & cash equivalents		173,445			(377,489	)		550,934			1,839,611			(625,401	)		2,465,012
Cash & cash equivalents at begin yr.		2,826,178			1,537,501			1,288,677			1,160,012			1,785,413			(625,401	)

Cash & cash equivalents at yr. end		2,999,623			1,160,012			1,839,611			2,999,623			1,160,012			1,839,611



4Q10	www.gmexico.com	Page 12



Fourth Quarter 2010 Results

AMERICAS MINNING CORPORATION (AMC)

CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)


	Quarters									Accumulated
(Thousands of US Dollars)	Q4-10			Q4-09			Variance			2010			2009			Variance
STATEMENT OF EARNINGS
Net sales		1,931,658			1,201,582			730,076			6,803,189			3,799,858			3,003,331
Cost of sales		693,140			549,506			143,634			2,999,109			1,874,330			1,124,779
Exploration		9,327			7,165			2,162			38,240			24,663			13,577

Gross profit		1,229,192			644,911			584,280			3,765,841			1,900,865			1,864,976
Gross margin		64	%		54	%					55	%		50	%
Administrative expenses		30,534			22,522			8,012			117,626			86,558			31,068
EBITDA		1,184,256			609,318			574,939			3,662,999			1,790,601			1,872,399
Depreciation and amortization		177,092			93,344			83,748			547,235			332,546			214,689

Operating income		1,021,566			529,046			492,520			3,100,979			1,481,761			1,619,218
Operating margin		53	%		44	%					46	%		39	%
Interest expense		65,798			34,579			31,219			272,751			108,907			163,844
Interest income		(3,693	)		(547	)		(3,146	)		(10,458	)		(7,076	)		(3,382	)
Financial coverage		—			(92	)		92			—			(4,236	)		4,236
Other (income) expense, net		33,252			13,072			20,180			85,391			23,706			61,685

Earnings before Tax		926,209			482,033			444,176			2,753,295			1,360,459			1,392,836
Taxes		310,600			104,435			206,165			889,073			480,750			408,323

Net Earnings		615,609			377,598			238,011			1,864,222			879,709			984,513
Net income attributable to the non-controlling interest		108,434			75,634			32,801			345,842			192,245			153,597

Net income attributable to AMC		507,175			301,965			205,210			1,518,380			687,464			830,916


BALANCE SHEET
Cash and cash equivalents		2,302,464			888,375			1,414,090			2,302,464			888,375			1,414,090
Marketable securities		76,209			24,900			51,309			76,209			24,900			51,309
Restricted cash		210,483			196,351			14,132			210,483			196,351			14,132
Notes and accounts receivable		796,797			492,315			304,481			796,797			492,315			304,481
Inventories		863,034			869,518			(6,484	)		863,034			869,518			(6,484	)
Prepaid and others current assets		611,652			1,169,059			(557,408	)		611,652			1,169,059			(557,408	)

Total Current Assets		4,860,638			3,640,518			1,220,120			4,860,638			3,640,518			1,220,120
Property, plant and equipment, Net		5,500,675			5,475,398			25,277			5,500,675			5,475,398			25,277
Leachable material, net		149,666			168,699			(19,033	)		149,666			168,699			(19,033	)
Other long term assets		1,160,786			918,133			242,653			1,160,786			918,133			242,653

Total Assets		11,671,765			10,202,748			1,469,017			11,671,765			10,202,748			1,469,017

Liabilities and Stockholders’ Equity		—			—			—			—			—			—
Long-term debt		175,473			537,931			(362,458	)		175,473			537,931			(362,458	)
Other non-current liabilities		1,509,649			1,042,361			467,288			1,509,649			1,042,361			467,288

Current Liabilities		1,685,123			1,580,292			104,830			1,685,123			1,580,292			104,830
Long term debt		3,421,454			2,512,061			909,393			3,421,454			2,512,061			909,393
Other long term liabilities		1,063,891			1,401,084			(337,193	)		1,063,891			1,401,084			(337,193	)

Total Liabilities		6,170,467			5,493,437			677,030			6,170,467			5,493,437			677,030
Stockholders equity		2,561,499			2,561,499			—			2,561,499			2,561,499			—
Other equity accounts		(687,615	)		(396,766	)		(290,849	)		(687,615	)		(396,766	)		(290,849	)
Retained earnings		2,750,158			1,673,685			1,076,472			2,750,158			1,673,685			1,076,472

Total Stockholders’ equity		4,624,042			3,838,418			785,624			4,624,042			3,838,418			785,624
Non-controlling interest		877,256			870,892			6,363			877,256			870,892			6,363

Total Liabilities and Equity		11,671,765			10,202,748			1,469,017			11,671,765			10,202,748			1,469,017


Cash Flow
Net earnings		615,609			377,598			238,011			1,864,222			879,709			984,513
Depreciation and amortization		177,091			93,344			83,748			547,235			332,546			214,689
Deferred income taxes		(14,216	)		(13,916	)		(300	)		(19,887	)		26,200			(46,087	)
Capitalized leachable material		(25,903	)		—			(25,903	)		(93,520	)		—			(93,520	)
Others Net		(4,075	)		62,438			(66,513	)		73,497			11,800			61,697
Changes in assets and liabilities		(413,814	)		337,663			(751,477	)		(118,859	)		(56,080	)		(62,779	)

Cash generated by operating activities		334,693			857,127			(522,434	)		2,252,689			1,194,175			1,058,514
Capital expenditures		(154,069	)		(99,832	)		(54,237	)		(454,299	)		(416,573	)		(37,726	)
Current investments		(2,183	)		1,986			(4,169	)		(51,909	)		39,428			(91,337	)
Restricted cash		13,879			(234,680	)		248,559			(14,132	)		(234,680	)		220,548
Capital reimbursement		32,212			(2,102,506	)		2,134,718			14,269			(2,168,137	)		2,182,406

Cash used in investing activities		(110,162	)		(2,435,032	)		2,324,870			(506,071	)		(2,779,962	)		2,273,891
Debt incurred		138			1,499,790			(1,499,652	)		1,490,149			1,500,000			(9,851	)
Debt amortization		(57,382	)		(17,500	)		(39,882	)		(994,163	)		(17,500	)		(976,663	)
Dividends paid		(86,911	)		(78,745	)		(8,166	)		(765,337	)		(258,047	)		(507,290	)
Capital increase		—			717,724			(717,724	)		—			717,724			(717,724	)
Other		—			(5,183	)		5,183			—			(22,684	)		22,684

Cash used in financing activities		(144,155	)		2,116,086			(2,260,241	)		(269,351	)		1,847,590			(2,116,941	)
Effect of exchance rate changes on cash and cash equivalents		(60,203	)		(65,047	)		4,844			(63,179	)		(90,303	)		27,124

Net increase (decrease) cash & cash equivalents		20,174			473,134			(452,960	)		1,414,088			171,500			1,242,588
Cash & cash equivalents at begin yr.		2,282,289			415,241			1,867,048			888,375			716,874			171,501

Cash & cash equivalents at yr. end		2,302,464			888,375			1,414,088			2,302,464			888,375			1,414,089



4Q10	www.gmexico.com	Page 13



Fourth Quarter 2010 Results

SOUTHERN COPPER CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)


	Quarters									Accumulated
(Thousands of US Dollars)	Q4-10			Q4-09			Variance			2010			2009			Variance
STATEMENT OF EARNINGS
Net sales		1,498,991			1,136,004			362,987			5,149,500			3,734,280			1,415,220
Cost of sales		535,439			498,849			36,590			2,099,438			1,823,673			275,765
Exploration		6,912			7,080			(168	)		34,313			24,578			9,735

Gross profit		956,640			630,075			326,565			3,015,749			1,886,029			1,129,720
Gross margin		64	%		55	%					59	%		51	%
Administrative expenses		23,361			17,594			5,767			88,305			78,291			10,014
EBITDA		926,779			615,930			310,848			2,906,708			1,813,815			1,092,892
Depreciation and amortization		81,167			83,388			(2,221	)		323,240			322,590			650

Operating income		852,112			529,093			323,019			2,604,204			1,485,148			1,119,056
Operating margin		57	%		47	%					51	%		40	%
Interest expense		49,295			25,391			23,904			167,949			99,793			68,156
Interest capitalized		(7,462	)		—			(7,462	)		(7,462	)		(2,156	)		(5,306	)
Interest income		(2,405	)		(592	)		(1,813	)		(7,800	)		(6,610	)		(1,190	)
Financial coverage		—			(92	)		92			—			(4,236	)		4,236
Other (income) expense, net		6,501			(3,449	)		9,950			20,737			(6,077	)		26,814

Earnings before tax		806,183			507,835			298,348			2,430,780			1,404,434			1,026,346
Taxes		311,212			142,762			168,450			868,071			469,861			398,210

Net Earnings		494,971			365,073			129,898			1,562,709			934,573			628,136
Net income attributable to the non-controlling interest		2,722			1,803			919			8,658			5,192			3,466

Net income attributable to SCC		492,249			363,270			128,979			1,554,051			929,381			624,670


BALANCE SHEET
Cash and cash equivalents		2,192,677			772,306			1,420,371			2,192,677			772,306			1,420,371
Marketable securities		76,209			22,948			53,261			76,209			22,948			53,261
Notes and accounts receivable		671,745			407,979			263,766			671,745			407,979			263,766
Inventories		504,937			456,122			48,815			504,937			456,122			48,815
Prepaid and others current assets		243,510			118,774			124,736			243,510			118,774			124,736

Total Current Assets		3,689,078			1,778,129			1,910,949			3,689,078			1,778,129			1,910,949
Property, plant and equipment, Net		4,094,993			3,969,558			125,435			4,094,993			3,969,558			125,435
Leachable material, net		65,719			107,262			(41,543	)		65,719			107,262			(41,543	)
Other long term assets		348,967			207,623			141,344			348,967			207,623			141,344

Total Assets		8,198,757			6,062,572			2,136,185			8,198,757			6,062,572			2,136,185

Liabilities and Stockholders’ Equity
Current portion of long-term debt		10,000			10,000			—			10,000			10,000			—
Accumulated liabilities		1,088,471			592,425			496,046			1,088,471			592,425			496,046

Current Liabilities		1,098,471			602,425			496,046			1,098,471			602,425			496,046
Long-term debt		2,750,401			1,270,252			1,480,149			2,750,401			1,270,252			1,480,149
Other non-current liabilities		443,842			296,241			147,601			443,842			296,241			147,601

Total Liabilities		4,292,714			2,168,918			2,123,796			4,292,714			2,168,918			2,123,796
Stockholders equity		8,846			8,846			—			8,846			8,846			—
Other equity accounts		412,042			409,913			2,129			412,042			409,913			2,129
Retaining earnings		3,465,194			3,456,869			8,325			3,465,194			3,456,869			8,325

Total Stockholders’ equity		3,886,082			3,875,628			10,454			3,886,082			3,875,628			10,454
Non-controlling interest		19,961			18,026			1,935			19,961			18,026			1,935

Total Liabilities and Equity		8,198,757			6,062,572			2,136,185			8,198,757			6,062,572			2,136,185


CASH FLOW
Net earnings		494,971			365,073			129,898			1,562,709			934,573			628,136
Depreciation and amortization		81,167			83,388			(2,221	)		323,240			322,590			650
Deferred Income taxes		6,397			1,115			5,282			-40,426			41,231			(81,657	)
Capitalized leachable material		—			—			—			0			0			—
Other Net		-580			1,604			(2,184	)		12,565			-49,034			61,599
Changes in assets and liabilities		-51,569			215,269			(266,838	)		41,156			-286,182			327,338

Cash generated by operating activities		530,386			666,449			(136,063	)		1,899,244			963,178			936,066
Capital expenditures		-127,561			-98,082			(29,479	)		-408,734			-414,822			6,088
Other Net		(14,464	)		13,118			(27,582	)		-43,570			55,536			(99,106	)

Cash used in investing activities		(142,025	)		(84,964	)		(57,061	)		(452,304	)		(359,286	)		(93,018	)
Debt incurred		—			—			—			1,489,674			—			1,489,674
Debt amortization		(5,000	)		(5,000	)		—			(10,000	)		(10,000	)		—
Dividends paid		-367,335			-152,420			(214,915	)		-1,434,493			-377,118			(1,057,375	)
Purchase of share SCC		(48	)		—			(48	)		(271	)		(71,903	)		71,632
Other		205			8			197			-8,300			998			(9,298	)

Cash used in financing activities		(372,178	)		(157,412	)		(214,766	)		36,610			(458,023	)		494,633
Effect of exchance rate changes on cash and cash equivalents		-60,203			-65,047			4,844			-63,179			-90,303			27,124

Net increase (decrease) cash & cash equivalents		(44,020	)		359,026			(403,046	)		1,420,371			55,566			1,364,805
Cash & cash equivalents at begin yr.		2,236,697			413,280			1,823,417			772,306			716,740			55,566

Cash & cash equivalents at yr. end		2,192,677			772,306			1,420,371			2,192,677			772,306			1,420,371



4Q10	www.gmexico.com	Page 14


Fourth Quarter 2010 Results

ASARCO LLC
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)


	Quarters									Accumulated
(Thousands of US Dollars)	Q4-10			Q4-09			Variance			2010			2009			Variance
STATEMENT OF EARNINGS
Net Sales		476,317			371,106			105,211			1,703,690			1,164,942			538,748
Cost of sales		201,378			239,361			(37,983	)		949,842			801,043			148,800
Exploration		2,415			366			2,049			3,928			1,092			2,836

Gross profit		272,524			131,380			141,144			749,920			362,808			387,112
Gross margin		57	%		35	%					44	%		31	%
Administrative expenses		1,782			7,251			(5,470	)		16,600			20,328			(3,728	)
EBITDA		272,906			140,819			132,088			817,966			362,123			455,844
Depreciation and amortization		95,925			34,393			61,533			223,995			68,431			155,565

Operating Income		174,817			89,736			85,082			509,324			274,049			235,275
Operating margin		37	%		24	%					30	%		24	%
Interest expense		286			651			(365	)		4,842			116,914			(112,072	)
Interest income		(1,648	)		(19,013	)		17,365			(4,148	)		(22,937	)		18,790
Financial coverage		18,849			(241,937	)		260,786			19,315			(178,190	)		197,505
Other (income) expense, net		(2,163	)		3,964			(6,127	)		(3,786	)		1,012			(4,798	)

Earnings before tax		159,493			346,071			(186,577	)		493,101			357,251			135,851
Taxes		12,339			74,748			(62,409	)		80,234			75,632			4,602

Net Earnings		147,154			271,323			(124,169	)		412,868			281,619			131,249
Net income attributable to the non-controlling interest		7,263			5,080			2,183			26,374			14,007			12,367

Net income attributable to ASARCO		139,891			266,243			(126,351	)		386,494			267,612			118,882


BALANCE SHEET
Cash and cash equivalents		38,338			115,905			(77,567	)		38,338			115,905			(77,567	)
Restricted cash		139,079			193,426			(54,348	)		139,079			193,426			(54,348	)
Notes and accounts receivable		125,052			84,336			40,716			125,052			84,336			40,716
Inventories		358,097			413,397			(55,299	)		358,097			413,397			(55,299	)
Prepaid and others current assets		562,020			233,820			328,200			562,020			233,820			328,200

Total Current Assets		1,222,586			1,040,883			181,703			1,222,586			1,040,883			181,703
Property, plant and equipment, Net		1,405,682			1,501,634			(95,952	)		1,405,682			1,501,634			(95,952	)
Leachable material, net		83,946			71,273			12,673			83,946			71,273			12,673
Other long term assets		1,003,722			899,165			104,557			1,003,722			899,165			104,557

Total Assets		3,715,937			3,512,956			202,980			3,715,937			3,512,956			202,980

Liabilities and Stockholders’ Equity		—			—			—			—			—			—
Long-term debt		—			280,000			(280,000	)		—			280,000			(280,000	)
Other non-current liabilities		442,506			222,929			219,577			442,506			222,929			219,577
Environmental remediation obligations-current		8,123			21,532			(13,409	)		8,123			21,532			(13,409	)

Current Liabilities		450,629			524,461			(73,832	)		450,629			524,461			(73,832	)
Other long term liabilities		620,050			548,570			71,480			620,050			548,570			71,480

Total Liabilities		1,070,679			1,073,031			(2,352	)		1,070,679			1,073,031			(2,352	)
Stockholders equity		2,352,524			2,352,524			(0	)		2,352,524			2,352,524			(0	)
Other equity accounts		(171,068	)		11,806			(182,874	)		(171,068	)		11,806			(182,874	)
Retained earnings		383,724			(2,764	)		386,488			383,724			(2,764	)		386,488

Total Stockholders’ equity		2,565,180			2,361,566			203,614			2,565,180			2,361,566			203,614
Non-controlling interest		80,079			78,359			1,720			80,079			78,359			1,720

Total Liabilities and Equity		3,715,937			3,512,956			202,981			3,715,937			3,512,956			202,981


Cash Flow
Net earnings		147,155			271,323			(124,168	)		412,868			281,619			131,249
Depreciation and amortization		95,925			34,393			61,533			223,995			68,431			155,565
Deferred income taxes		(7,661	)		187,946			(195,607	)		79,771			187,946			(108,175	)
Capitalized leachable material		(25,903	)		—			(25,903	)		(93,520	)		—			(93,520	)
Others Net		(5,533	)		—			(5,533	)		(506	)		—			(506	)
Changes in assets and liabilities		38,478			(3,221,098	)		3,259,576			107,606			(3,219,470	)		3,327,076

Cash generated by operating activities		242,461			(2,727,436	)		2,969,897			730,213			(2,681,475	)		3,411,689
Capital expenditures		(26,508	)		(8,783	)		(17,726	)		(45,565	)		(57,328	)		11,764
Current investments		—			—			—			—			—			—
Restricted cash		12,066			2,779			9,287			50,471			(911	)		51,382
Others Net		(226,011	)		(206,645	)		(19,366	)		(507,182	)		(206,312	)		(300,870	)

Cash used in investing activities		(240,453	)		(212,648	)		(27,805	)		(502,276	)		(264,551	)		(237,724	)
Debt — Net		(133	)		(447,974	)		447,841			(280,754	)		(449,290	)		168,536
Debt amortization		—			—			—			—			—			—
Capital increase		—			2,205,100			(2,205,100	)		—			2,205,100			(2,205,100	)
Dividends paid		(8,250	)		(8,750	)		500			(24,750	)		(15,000	)		(9,750	)

Cash used in financing activities		(8,383	)		1,748,376			(1,756,759	)		(305,504	)		1,740,810			(2,046,314	)

Net increase (decrease) cash & cash equivalents		(6,375	)		(1,191,708	)		1,185,333			(77,566	)		(1,205,216	)		1,127,650
Cash & cash equivalents at begin yr.		44,713			1,307,614			(1,262,901	)		115,905			1,321,121			(1,205,217	)

Cash & cash equivalents at yr. end		38,338			115,905			(77,568	)		38,338			115,905			(77,567	)



4Q10	wwww.gmexico.com	Page 15



Fourth Quarter 2010 Results

INFRAESTRUCTURA Y TRANSPORTES MEXICO, S.A. DE C.V.
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)


	Quarters									Accumulated
(Thousands of US Dollars)	Q4-10			Q4-09			Variance			2010			2009			Variance
STATEMENT OF EARNINGS
Net sales		300,283			251,909			48,374			1,177,522			920,056			257,466
Cost of sales		203,870			160,061			43,809			773,301			608,937			164,364

Gross profit		96,413			91,848			4,565			404,221			311,119			93,102
Gross margin		32	%		36	%					34	%		34	%
Administrative expenses		14,171			12,928			1,243			52,333			45,289			7,044
EBITDA		79,526			80,205			(679	)		370,568			272,813			97,755
Depreciation and amortization		21,554			20,056			1,498			82,589			75,700			6,889

Operating Income		60,688			58,864			1,824			269,299			190,130			79,169
Operating margin		20	%		23	%					23	%		21	%
Interest expense		3,196			4,272			(1,076	)		20,756			22,155			(1,399	)
Interest income		(2,746	)		(2,151	)		(595	)		(11,387	)		(7,956	)		(3,431	)
Financial coverage		(571	)		(294	)		(277	)		2,886			(459	)		3,345
Other (income) expense — Net		1,466			(3,712	)		5,178			(23,769	)		(10,177	)		(13,592	)

Earnings before Tax		59,343			60,750			(1,407	)		280,813			186,567			94,246
Taxes		322			12,956			(12,634	)		68,475			47,100			21,375
Participation in subsidiary not consolidated and associated		(4,229	)		1,848			(6,077	)		(27,451	)		(17,325	)		(10,126	)

Net Earnings		63,250			45,946			17,304			239,789			156,792			82,997
Net income attributable to the non-controlling interest		(15,085	)		(12,482	)		(2,603	)		(54,305	)		(35,685	)		(18,620	)

Net income attributable to ITM		48,165			33,464			14,701			185,484			121,107			64,377


BALANCE SHEET
Cash and cash equivalents		238,495			252,621			(14,126	)		238,495			252,621			(14,126	)
Notes and accounts receivable		140,931			107,890			33,041			140,931			107,890			33,041
Inventories		26,984			21,163			5,821			26,984			21,163			5,821
Prepaid and others current assets		64,488			48,832			15,656			64,488			48,832			15,656

Total Current Assets		470,898			430,506			40,392			470,898			430,506			40,392
Property, plant and equipment — Net		1,107,229			995,890			111,339			1,107,229			995,890			111,339
Other long term assets		620,534			457,203			163,331			620,534			457,203			163,331

Total Assets		2,198,661			1,883,599			315,062			2,198,661			1,883,599			315,062

Liabilities and Stockholders’ Equity
Current portion of long-term debt		32,871			32,108			763			32,871			32,108			763
Accumulated liabilities		171,650			150,951			20,699			171,650			150,951			20,699

Current Liabilities		204,521			183,059			21,462			204,521			183,059			21,462
Long-term debt		317,398			336,010			(18,612	)		317,398			336,010			(18,612	)
Other non-current liabilities		(20,108	)		(18,088	)		(2,020	)		(20,108	)		(18,088	)		(2,020	)
Other liabilities		5,265			4,295			970			5,265			4,295			970

Total Liabilities		507,076			505,276			1,800			507,076			505,276			1,800
Stockholders equity		89,290			89,290			—			89,290			89,290			—
Other equity accounts		117,366			36,827			80,539			117,366			36,827			80,539
Retaining earnings		1,198,944			1,013,460			185,484			1,198,944			1,013,460			185,484

Total Stockholders’ equity		1,405,600			1,139,577			266,023			1,405,600			1,139,577			266,023
Non-controlling interest		285,985			238,746			47,239			285,985			238,746			47,239

Total Liabilities and Equity		2,198,661			1,883,599			315,062			2,198,661			1,883,599			315,062


CASH FLOW
Net earnings		63,250			45,945			17,305			239,789			156,792			82,997
Depreciation and amortization		21,554			20,056			1,498			82,589			75,700			6,889
Deferred income taxes		9,491			717			8,774			(973	)		(10,402	)		9,429
Participation in subsidiary not consolidated and associated		(4,229	)		1,848			(6,077	)		(27,451	)		(17,325	)		(10,126	)
Other Net		(1,538	)		10,517			(12,055	)		(2,804	)		12,371			(15,175	)
Changes in assets and liabilities		(9,695	)		34,058			(43,753	)		(30,917	)		54,199			(85,116	)

Cash generated by operating activities		78,833			113,141			(34,308	)		260,233			271,335			(11,102	)
Capital expenditures		(77,274	)		(47,503	)		(29,771	)		(131,993	)		(124,233	)		(7,760	)
Purchase shares		(26,336	)		—			(26,336	)		(99,007	)		(3,843	)		(95,164	)

Other		—			812			(812	)		—			812			(812	)

Cash used in investing activities		(103,610	)		(46,691	)		(56,919	)		(231,000	)		(127,264	)		(103,736	)
Debt incurred		—			—			—			—			—			—
Debt amortization		(9,029	)		(8,932	)		(97	)		(32,536	)		(39,639	)		7,103
Dividends received (paid) — Net		193			3,282			(3,089	)		(23,961	)		3,282			(27,243	)

Cash used in financing activities		(8,836	)		(5,650	)		(3,186	)		(56,497	)		(36,357	)		(20,140	)
Effect of exchance rate changes on cash and cash equivalents		2,175			5,854			(3,679	)		13,138			6,166			6,972

Net increase (decrease) cash & cash equivalents		(31,438	)		66,654			(98,092	)		(14,126	)		113,880			(128,006	)
Cash & cash equivalents at begin yr.		269,933			185,967			83,966			252,621			138,741			113,880

Cash & cash equivalents at yr. end		238,495			252,621			(14,126	)		238,495			252,621			(14,126	)



4Q10	www.gmexico.com	Page 16