FINANCING:	9 Months Ended
Sep. 30, 2019
FINANCING:
FINANCING:	NOTE 7 — FINANCING: New Minera Mexico S.A. de C.V. Notes: On September 26, 2019, SCC’s subsidiary Minera Mexico S.A. de C.V. issued $1.0 billion of fixed-rate senior notes with a discount of $12.7 million, which is being amortized over the term of the related debt. This debt was issued in one tranche, due in 2050 at an annual interest rate of 4.5%. Interest on the notes will be paid semi-annually in arrears. The Company intends to use the net proceeds from this offering (i) to finance Minera Mexico expansion program, including the Buenavista Zinc, Pilares and El Pilar projects, (ii) for other capital expenditures and (iii) for general corporate purposes. The notes will constitute Minera Mexico general unsecured obligations. The Company capitalized the costs associated with the issuance of this facility, which are included as part of the amortized cost of the long-term debt in the condensed consolidated balance sheet. In connection with the transaction, on September 26, 2019, Minera Mexico entered into a supplemental indenture with Wells Fargo Bank, National Association, as trustee, which provide for the issuance, and set forth the terms of the notes described above. The indenture contains covenants that limit Minera Mexico's ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Minera Mexico's assets. Credit risk rating: On September 19, 2019 Moody’s investors service assigned Baa2 as debt rating on the new notes issued. Also on September 19, 2019 Fitch and Standard & Poor’s ratings services assigned its ‘BBB+’, as debt rating on the new notes issued.

FINANCING:

9 Months Ended

Sep. 30, 2019

NOTE 7 — FINANCING:

New Minera Mexico S.A. de C.V. Notes:

On September 26, 2019, SCC’s subsidiary Minera Mexico S.A. de C.V. issued $1.0 billion of fixed-rate senior notes with a discount of $12.7 million, which is being amortized over the term of the related debt. This debt was issued in one tranche, due in 2050 at an annual interest rate of 4.5%. Interest on the notes will be paid semi-annually in arrears. The Company intends to use the net proceeds from this offering (i) to finance Minera Mexico expansion program, including the Buenavista Zinc, Pilares and El Pilar projects, (ii) for other capital expenditures and (iii) for general corporate purposes.

The notes will constitute Minera Mexico general unsecured obligations.

The Company capitalized the costs associated with the issuance of this facility, which are included as part of the amortized cost of the long-term debt in the condensed consolidated balance sheet.

In connection with the transaction, on September 26, 2019, Minera Mexico entered into a supplemental indenture with Wells Fargo Bank, National Association, as trustee, which provide for the issuance, and set forth the terms of the notes described above. The indenture contains covenants that limit Minera Mexico's ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Minera Mexico's assets.

Credit risk rating:

On September 19, 2019 Moody’s investors service assigned Baa2 as debt rating on the new notes issued. Also on September 19, 2019 Fitch and Standard & Poor’s ratings services assigned its ‘BBB+’, as debt rating on the new notes issued.