Southern Copper Director Arrigunaga Gomez del Campo Acquires 400 Shares Through Stock Award Plan

Director Compensation Through Stock Awards at Southern Copper

Southern Copper Corporation disclosed that director Javier Arrigunaga Gomez del Campo received 400 shares of common stock as part of the company's Directors' Stock Award Plan. The transaction occurred on July 24, 2026, and represents compensation for his service on the board of directors. This type of award is a standard mechanism through which publicly traded companies compensate board members, aligning director interests with shareholder interests by providing equity stakes in the company.

The filing indicates that the award was granted pursuant to an exempt transaction under Rule 16b-3(d) of the Securities Exchange Act. This classification means the transaction is exempt from the short-swing profit rules that typically apply to officers and directors, allowing the company to grant equity awards without restriction periods that would otherwise apply to executive transactions. The exemption reflects the SEC's recognition that non-discretionary director compensation awards serve legitimate governance purposes.

Arrigunaga Gomez del Campo's Updated Beneficial Ownership Position

Following the acquisition of 400 shares, Arrigunaga Gomez del Campo's direct beneficial ownership in Southern Copper totals 5,548 shares. The disclosure indicates this is the complete count of shares held directly by the director in his own name, as opposed to shares held indirectly through trusts, family members, or other entities. The filing does not indicate whether the director holds any indirect beneficial ownership in the company beyond this direct position.

Understanding insider ownership levels provides investors with insight into the commitment of board members to the company's performance. Directors who maintain meaningful equity stakes in the companies they oversee have financial incentives aligned with long-term shareholder value creation. The specific share count allows shareholders to track changes in director holdings over time and assess whether insiders are increasing or decreasing their stakes.

SEC Reporting Requirements for Director Stock Acquisitions

The disclosure filed by Southern Copper represents compliance with Section 16(a) of the Securities Exchange Act of 1934, which requires officers, directors, and beneficial owners of more than 10 percent of a company's securities to report changes in their holdings. Directors at publicly traded companies must file reports within two business days of any transaction involving company securities, ensuring transparency in insider trading activity and providing investors with timely information about board member transactions.

The reporting deadline for director transactions is strictly enforced by the SEC and investment professionals closely monitor these filings for signals about insider confidence or concerns regarding company prospects. Late filings are tracked and disclosed on the SEC's website, and repeated violations can lead to regulatory scrutiny. Southern Copper's filing, signed on July 28, 2026, meets the requirement to disclose the July 24 transaction within the prescribed timeframe.

Directors' Stock Award Plan as Component of Board Compensation

Southern Copper maintains a Directors' Stock Award Plan through which the company compensates non-employee directors with equity grants. This approach has become increasingly common among large corporations as a method to provide directors with ongoing incentives tied to stock performance while avoiding cash compensation expenses. The plan structure allows the company to attract and retain experienced board members while fostering a sense of ownership in the organization's long-term strategic direction.

Stock-based director compensation offers tax advantages to companies and helps preserve cash that might otherwise be spent on cash-based board fees. For directors, equity awards provide an opportunity to build wealth in alignment with shareholder returns. The automatic nature of awards granted pursuant to such plans removes discretion from individual compensation decisions and provides predictability in the director compensation process, which investors and proxy advisors view favorably in governance assessments.

Nature of Arrigunaga Gomez del Campo's Role at Southern Copper

The filing confirms that Javier Arrigunaga Gomez del Campo serves as a director of Southern Copper Corporation and maintains his address at the company's headquarters in Phoenix, Arizona. Beyond the information provided in this disclosure, the filing does not detail the director's tenure on the board, committee assignments, or other roles he may hold at Southern Copper or its affiliates. Additional biographical and governance information regarding this director may be available in the company's proxy statements and annual reports filed with the SEC.

Directors at mining and metals companies like Southern Copper typically bring expertise in operations, finance, regulatory compliance, safety, and environmental management—sectors critical to the company's business success. The board's role includes oversight of strategy, risk management, executive compensation, and shareholder communications. Individual director transactions reported on regulatory filings do not typically disclose their specific expertise areas or board committee assignments, which would be found in proxy materials.

Mining Industry Context for Southern Copper

Southern Copper Corporation operates as a major integrated copper producer, engaged in mining, milling, smelting, and refining copper and molybdenum products. The company maintains significant operations in Peru and Mexico and holds a market position as one of the world's leading copper producers. Copper demand is closely tied to global economic conditions and construction activity, making the company's performance sensitive to macroeconomic trends and commodity price movements.

Director transactions at copper producers warrant investor attention given the cyclical nature of metals markets and the long-term capital requirements of mining operations. Board members' equity holdings signal their confidence in management's ability to navigate commodity cycles and execute capital projects that generate shareholder returns. Southern Copper's director compensation through equity grants indicates the company's strategy to align board member interests with operational excellence and shareholder value creation across market cycles.

Compliance and Verification of Director Transaction Filing

The Form 4 disclosure was signed on July 28, 2026, by Andres C. Ferrero, identified as Attorney-in-Fact for Arrigunaga Gomez del Campo. The use of a power of attorney to execute regulatory filings is a common practice that allows directors and officers to delegate the administrative responsibility for regulatory compliance while maintaining accountability for the accuracy of the information disclosed. The filing includes standard certifications regarding the accuracy of statements and warnings regarding the criminal penalties associated with intentional misstatements or omissions.

Investors accessing this disclosure through the SEC's EDGAR database can verify the authenticity of the filing through the SEC's digital signatures and can cross-reference the transaction details against other Southern Copper filings. The SEC maintains systems to track all insider transactions reported by publicly traded companies, allowing investors and analysts to monitor cumulative trading activity by insiders at any given company. This transparency mechanism is designed to prevent hidden trading by corporate insiders and to provide the market with information relevant to assessing corporate governance quality.

Broader Implications of Director Equity Participation

Director stock acquisition through awards reinforces alignment between board members and shareholder interests, a principle widely endorsed by institutional investors and governance advocates. When directors hold meaningful equity stakes, their financial outcomes move in tandem with those of ordinary shareholders, reducing potential conflicts of interest and incentivizing careful stewardship of the company's assets and strategic direction. The ongoing nature of director stock awards ensures that board members continuously refresh their equity stakes and maintain cumulative exposure to share price movements.

From an investment perspective, tracking director acquisitions can provide supplementary insights into insider assessments of company value and prospects. However, director compensatory awards—as distinguished from open market purchases or sales—do not necessarily reflect an insider's view of whether shares are undervalued or overvalued. Such awards are typically predetermined in amount and timing, making them less indicative of insider confidence or concern than discretionary insider trades would be. Investors should interpret director compensatory transactions as evidence of board commitment rather than as signals regarding stock valuation.