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SQM(SQM) - 2023 Q1 - Earnings Call Transcript
2023-05-18 19:30
Financial Data and Key Metrics Changes - The first quarter of 2023 saw lower sales volumes in Lithium and Specialty Plant Nutrition business lines, partially offset by higher average prices compared to the same period last year [8] - Global electric vehicle sales increased nearly 30% year-over-year, with significant growth in China, Europe, and the U.S. [16] - The company expects a steady increase in sales volume throughout the year, quarter-over-quarter [17] Business Line Data and Key Metrics Changes - Lithium demand declined at the beginning of the year, particularly in China, leading to lower sales volumes [15] - The Iodine business has seen increased production volumes, particularly in the contrast media segment, which is expected to grow close to 7% annually [11] - Specialty Plant Nutrition (SPN) volumes are anticipated to slightly exceed 2022 levels in the next three quarters [61] Market Data and Key Metrics Changes - The Lithium market is expected to remain tight throughout the year due to new supply coming to the market and stricter environmental requirements affecting high-cost suppliers [10] - The contrast media market is expected to maintain strong demand, contributing to stable pricing for Iodine [78] Company Strategy and Development Direction - The company is focused on expanding production capacity and maintaining strong relationships with strategic customers [17] - There is an ongoing interest in exploring new projects in regions such as Argentina, Brazil, and Mexico, with Australia being the primary focus for development [33][84] - Sustainability remains a core focus, with commitments to reduce carbon and water intensity in operations [27] Management's Comments on Operating Environment and Future Outlook - Management believes the fundamentals of Lithium demand remain strong despite recent fluctuations in market conditions [9] - The company anticipates good volumes in the second semester and expects pricing to follow supply-demand dynamics [73][74] - The management is optimistic about the recovery of customer purchasing activity and the conclusion of destocking in the market [86] Other Important Information - The company plans to increase capital expenditures (CapEx) for new projects in the Lithium industry, with no current plans to reduce CapEx [25][39] - The company is preparing to start negotiations with CODELCO regarding the National Lithium Policy, emphasizing the importance of confidentiality in discussions [21][114] Q&A Session Summary Question: What is the outlook for Lithium supply in the coming years? - Management is analyzing potential projects in Argentina, Brazil, and Mexico, while focusing on Australia as the primary area for development [20][33] Question: Can you provide an update on the National Lithium Policy negotiations? - Management stated that discussions with CODELCO will begin in the coming weeks, emphasizing the need for a mutually beneficial agreement [21][101] Question: What are the expectations for Lithium volumes in the second quarter? - Management expects volumes in the second quarter to be substantially higher than the first quarter and better than the second quarter of the previous year [38] Question: How is the pricing trend for Lithium in Q2 compared to Q1? - Management noted that Q1 sales were concentrated towards the end of the quarter, and they expect a more stable volume pattern in Q2 [112] Question: What is the company's stance on potential joint ventures in Canada and the U.S.? - The company remains open to exploring opportunities globally, with a strong focus on Australia due to existing operations there [84] Question: How does the company view the current pricing environment for potash and potassium nitrate? - Management indicated that while potash prices are down, the pricing environment for potassium nitrate remains stable, and they expect demand to improve in the coming quarters [80][61]
SQM(SQM) - 2023 Q1 - Earnings Call Presentation
2023-05-18 06:24
1Q2023 RESULTS PRESENTATION Customary note regarding forward-looking statements SQM – Corporate Presentation 2 Gross Profit Contribution per Business Line Earnings per Share US$2.63 Trend US$ million Iodine: Record-high sales prices (40%) and high sales volumes (12%) SPN: Lower sales volumes (-20%), flat year-on-year average sales prices SQM – Corporate Presentation 4 May 2023 Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that refle ...
SQM(SQM) - 2022 Q4 - Annual Report
2023-04-25 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECT ...
SQM(SQM) - 2022 Q4 - Annual Report
2023-04-25 16:00
[Report of Foreign Private Issuer (Form 6-K)](index=1&type=section&id=Report%20of%20Foreign%20Private%20Issuer) This report outlines the filing of Form 20-F for FY2022, covering company details and administrative contacts [Filing of Annual Report (Form 20-F)](index=2&type=section&id=Filing%20of%20Annual%20Report%20%28Form%2020-F%29) SQM filed its Annual Report on Form 20-F for FY2022 with the SEC, making it publicly accessible online - SQM has filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2022, with the SEC[3](index=3&type=chunk) - The Form 20-F can be accessed on the SEC's website (www.sec.gov) or the investor relations section of the company's website (www.sqm.com)[3](index=3&type=chunk) [Company Overview](index=2&type=section&id=About%20SQM) SQM is a dual-listed global company focused on essential industries, aiming for leadership in key chemical markets - SQM is a dual-listed company on the New York Stock Exchange (NYSE: SQM) and the Santiago Stock Exchange (SQM-B, SQM-A)[4](index=4&type=chunk) - The company's products serve key industries including health, nutrition, renewable energy, and technology[4](index=4&type=chunk) - SQM's strategic goal is to be a world leader in the markets for lithium, potassium nitrate, iodine, and thermo-solar salts[4](index=4&type=chunk) [Administrative Information](index=2&type=section&id=Administrative%20Information) This section provides contact details for investor relations and media, formally signed by the CFO on April 25, 2023 - The document lists specific contacts for investor relations and media inquiries[5](index=5&type=chunk) - The report was duly authorized and signed by Gerardo Illanes, CFO, on April 25, 2023[7](index=7&type=chunk)
SQM(SQM) - 2022 Q4 - Earnings Call Transcript
2023-03-02 18:58
Financial Data and Key Metrics Changes - The company reported a significant increase in lithium production capacity, reaching 180,000 metric tons and aiming for 210,000 metric tons by the end of the year [50][96] - The total global lithium demand is expected to reach 1.5 million metric tons by 2025, with a projected growth of at least 20% in 2023 [49][56] Business Line Data and Key Metrics Changes - The lithium business contributed to almost 80% of the gross profit for the year, driven by higher sales volumes and average prices [48] - The company is expanding its iodine and nitrate production, with a focus on developing seawater projects to increase production capacity [24][25] Market Data and Key Metrics Changes - Electric vehicle sales have increased significantly in recent weeks in China, and the U.S. market is seeing a doubling of electric vehicle sales compared to last year [49] - The company expects strong demand for iodine, with prices remaining high due to healthy demand outpacing supply [79] Company Strategy and Development Direction - The company is focused on expanding lithium production globally, with a capital expenditure plan that includes investments in lithium, iodine, and nitrates capacity expansion in Chile [72][57] - The company is actively exploring new lithium mining opportunities worldwide and is committed to sustainable practices in its operations [57][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the lithium market, anticipating a demand growth of more than 20%, potentially reaching 25% [31] - The company is preparing for supply in the market and is optimistic about the future of its projects in Chile, China, and Australia [2][10] Other Important Information - The company has a strong financial position, with cash and cash equivalents exceeding total financial interest-bearing debt, indicating readiness for future projects [41][89] - The company is working on the Salar Futuro project, with plans to submit the final project for environmental assessment in the second half of 2024 [14][16] Q&A Session Summary Question: What are the production targets for 2023? - The company targets a sales volume of around 200,000 metric tons, with China accounting for roughly 10% [37][39] Question: How will the CapEx program be financed? - The company has a strong cash position and does not foresee any issues in financing its CapEx, which includes potential partnerships and new projects [41][89] Question: What is the outlook for lithium pricing? - Management believes that lithium pricing will depend on the supply-demand balance and is structuring contracts accordingly [18][83] Question: What is the company's strategy regarding new capacity in iodine? - The company is investing in new iodine capacity, but new projects take time to get permits and environmental conditions [80] Question: How does the company view the lithium market balance? - The company expects a continued deficit in the lithium market, with demand growth outpacing supply [20][31]
SQM(SQM) - 2022 Q3 - Earnings Call Transcript
2022-11-17 16:16
Sociedad QuÃmica y Minera de Chile S.A. (NYSE:SQM) Q3 2022 Earnings Conference Call November 17, 2022 10:00 AM ET Company Participants Kelly O'Brien - Head of Investor Relations Ricardo Ramos - Chief Executive Officer Gerardo Illanes - Chief Financial Officer Felipe Smith - Senior Commercial Vice President-Lithium Pablo Altimiras - Executive Vice President-Iodine & Nitrates Carlos Diaz - Executive Vice President, Lithium Business Conference Call Participants Joel Jackson - BMO Capital Markets P.J. Juvekar - ...
SQM(SQM) - 2022 Q2 - Earnings Call Presentation
2022-08-19 19:19
Financial Performance - Q2 2022 - SQM's revenue reached $2,599 million, a 29% increase compared to Q1 2022 and a 342% increase compared to Q2 2021[7] - Lithium revenue was $1,847 million, showing a 28% increase Q-on-Q and a significant 1,033% increase Y-on-Y[7] - Net income was $82d million, up 8% Q-on-Q and 857% Y-on-Y[7] - Adjusted EBITDA was $1,325 million, a 12% increase Q-on-Q and a 237% increase Y-on-Y[7] Business Line Performance - Lithium average price increased by approximately 701% Y-on-Y, while sales volumes increased by approximately 41%[10] - Iodine average price increased by approximately 58% Y-on-Y, and sales volumes increased by approximately 11%[10] - SPN average price increased by approximately 96% Y-on-Y, but sales volumes decreased by approximately 22%[10] - Potassium average price increased by approximately 222% Y-on-Y, while sales volumes increased by approximately 4%[10] Market Outlook - The global lithium chemical market is expected to grow by over 35% in 2022[19] - SQM anticipates selling at least approximately 145,000 tons of lithium in 2022[20] - The global iodine market is expected to grow by approximately 1-2% in 2022[23] - Agricultural potassium nitrate market demand is expected to decrease by approximately 10% in 2022 due to high prices[25]
SQM(SQM) - 2022 Q2 - Earnings Call Transcript
2022-08-18 17:31
Sociedad QuÃmica y Minera de Chile S.A. (NYSE:SQM) Q2 2022 Earnings Conference Call August 18, 2022 12:00 PM ET Company Participants Kelly OÂ'Brien - Head, Investor Relations Ricardo Ramos - Chief Executive Officer Felipe Miranda - Head of Business Intelligence Felipe Smith - Vice President of Lithium & Iodine Asia Pacific Conference Call Participants Corinne Blanchard - Deutsche Bank Joel Jackson - BMO Capital Markets Guilherme Palhares - Bank of America César Pérez-Novoa - BTG Pactual Operator Good day, a ...
SQM(SQM) - 2022 Q1 - Earnings Call Transcript
2022-05-19 19:43
Financial Data and Key Metrics Changes - The first quarter results were a milestone for the company, reflecting higher prices across all business lines, particularly in lithium, which has significantly benefited from a successful long-term operational and commercial strategy [6][7] - The company reported payments related to the agreement with CORFO and tax provisions totaling approximately $800 million, which is similar to the earnings reported by all business lines during the first quarter [9] Business Line Data and Key Metrics Changes - The lithium business has almost tripled production levels in three years while significantly decreasing extraction of brines, positioning the company as a leader in the lithium industry [7] - The iodine market is on target to increase capacity by 1,000 metric tons next year and 2,500 metric tons in 2024, while nitrate production is set to increase by 320,000 metric tons to meet future demand [10] Market Data and Key Metrics Changes - Approximately 50% of lithium sales are contracted with fully variable price indexes, with expectations for prices in Q2 to be somewhat higher than Q1 [14] - Sales and production were aligned in Q1, but a drop in sales was noted in April due to Shanghai lockdowns, with a recovery expected in May [15] Company Strategy and Development Direction - The company is committed to reviewing its investment plan in the coming months, likely increasing resources for business development in Chile and abroad [9] - The company is exploring new business opportunities, including potential partnerships for lithium production and recycling initiatives with LG [44][56] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the ongoing lockdowns in China but expressed optimism about demand recovery in May [21][28] - The company emphasized the importance of recognizing the long-term efforts of its workforce in achieving current milestones, highlighting a commitment to sustainable development and innovation [29][31] Other Important Information - The company is open to M&A opportunities that can generate value for shareholders, with a focus on ensuring any potential investments align with its financial strategy [36][52] - The company is facing inflationary pressures on costs due to local currency fluctuations and global logistic disturbances but aims to control costs effectively [51] Q&A Session Summary Question: Outlook on lithium pricing for Q2 and inventory sentiment in China - Management indicated that predicting prices is challenging, but they expect Q2 prices to be higher than Q1, with a recovery in demand noted in May after April's lockdowns [14][15] Question: Clarification on sales volume expectations - The company maintains an expectation of around 140,000 metric tons in sales for the year, despite lower volumes anticipated in Q2 due to lockdown impacts [21][26] Question: Impact of lockdowns on supply chain and sales volume - Management confirmed expectations of lower volumes in Q2 but anticipates recovery in the second half of the year, assuming no further lockdowns [26][28] Question: Dividend policy and potential payout levels - The company reiterated its commitment to a conservative financial strategy, reviewing its dividend policy quarterly based on financial performance and cash position [52] Question: Investment plans and potential M&A activity - The company is considering increasing capacity at its Mt. Holland project and remains open to M&A opportunities that align with its strategic goals [36][52] Question: Demand erosion due to high fertilizer prices - Management indicated a potential reduction in fertilizer demand of around 10%, but noted it is too early to make definitive predictions [57]
SQM(SQM) - 2021 Q4 - Annual Report
2022-04-25 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April 2022. Commission File Number 33-65728 CHEMICALAND MINING COMPANY OF CHILE INC. (Translation of registrant's name into English) El Trovador 4285, Santiago, Chile (562) 2425-2000 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports un ...