Financial Data and Key Metrics Changes - The company reported an EBITDA of BRL 2.6 billion with a margin of 23.5%, reflecting a 5% increase and a 1.4 percentage point expansion compared to Q1 2025 [5] - Gross debt was reduced by BRL 5.7 billion year-to-date, with a reduction of BRL 2.1 billion in the current quarter, leading to a leverage ratio decrease from 3.33x to 3.24x [5][12][13] Business Line Data and Key Metrics Changes - **Mining**: Achieved second highest sales volume in history, but EBITDA dropped by 36% due to falling iron ore prices [6][20] - **Steel**: Despite a 11.5% drop in sales volume, EBITDA increased by 79% year-on-year, with a margin of 10.08% [10][18] - **Cement**: Sales volume grew by 8% quarter-on-quarter, with a 10% increase in net revenue compared to Q1 2025, resulting in an EBITDA margin of 24% [8][23] - **Logistics**: Achieved a record EBITDA of BRL 519 million with a margin of 41.4% [9][24] Market Data and Key Metrics Changes - The steel market faced significant competition from imported materials, leading to a loss of market share for the company [16][33] - The company noted a 40-50% penetration of imported products in certain segments, particularly in tinplate and prepainted products [56][81] Company Strategy and Development Direction - The company is focusing on operational excellence, cost reduction, and enhancing productivity across all segments [31][84] - A strategy prioritizing value over volume in the steel segment has been adopted to improve profitability despite market challenges [7][57] - The company is actively seeking partnerships in infrastructure to reduce leverage and improve cash flow [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the chaotic influx of imported products affecting the domestic market and emphasized the need for government intervention [33][81] - The company remains optimistic about demand in Brazil, projecting a recovery in steel production and profitability in the coming quarters [58][60] Other Important Information - The company is committed to ESG initiatives, reporting a 30% reduction in occupational health and safety incidents compared to 2020 [26] - The company is also focusing on decarbonization efforts, achieving an 11% reduction in GHG emissions compared to the baseline year 2020 [28] Q&A Session Summary Question: Details on potential infrastructure partner and Usiminas stake sale - The company is in discussions regarding infrastructure assets, with potential liquidity injection of BRL 8 billion and has not yet defined the next steps for the Usiminas stake sale [42][46] Question: Impact of recent dumping decisions on margins - The company highlighted ongoing issues with imports and the need for government action on anti-dumping measures, while maintaining a focus on product diversification and higher value products [50][57] Question: Measures for cost efficiency in steel production - The company has implemented changes in production processes and is optimistic about cost reductions in the second half of the year [62][65] Question: Expectations for CapEx flexibility and asset sales - The company aims to maintain a lower CapEx focus while exploring asset monetization opportunities, including energy partnerships [66][68] Question: Long steel market dynamics and government conversations - The company noted a decline in long steel sales and emphasized the need for protective measures against imports to stabilize the market [72][78]

Financial Data and Key Metrics Changes - The company reported the strongest quarter of the year with significant EBITDA growth and cost control, achieving nearly BRL 25 billion in cash, the highest in its history [6][7] - The leverage ratio was impacted by exchange rate variations, with an adjusted leverage closer to 3.2 times without these effects [7][25] - EBITDA for Q4 2024 increased by more than BRL 1 billion compared to the previous quarter, driven by strong performance in mining, cement, and steel [19][20] Business Line Data and Key Metrics Changes - In mining, the company achieved production guidance with a 35% price increase compared to the previous quarter, resulting in an EBITDA margin above 50% [9][35] - Steel sales increased by 10% year-over-year, with an EBITDA margin reaching 11%, marking the first time it surpassed double digits in the year [10][32] - Cement segment achieved a record EBITDA margin of 33%, the highest since acquiring Lafarge Holcim, despite typical seasonal challenges [12][38] Market Data and Key Metrics Changes - The company noted a favorable trend in steel consumption, with a 10% increase in sales compared to the same period last year, indicating strong market demand [10][29] - The logistics segment experienced a drop in invoicing and EBITDA due to seasonal factors, but overall performance improved with higher cargo volumes throughout the year [40] Company Strategy and Development Direction - The company is focusing on deleveraging and capital recycling, with significant actions including the sale of a stake in CMIN to enhance cash reserves [13][18] - Future CapEx will prioritize growth projects, particularly in mining and steel, with over 60% of CapEx allocated to priority projects in 2025 [51][83] - The company is exploring organic growth opportunities in cement and has plans for several greenfield projects [54][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational efficiency and market conditions, expecting continued growth in EBITDA for 2025 [94] - The company is committed to maintaining a flexible investment strategy while focusing on deleveraging and operational excellence [96][100] - Management acknowledged challenges from international competition and trade policies but remains confident in the company's competitive position [60][82] Other Important Information - The company decided not to distribute dividends in Q1 2025 to reinforce its commitment to deleveraging [18][116] - The company has made significant progress in ESG initiatives, achieving a 63% reduction in lost days and a 7% reduction in CO2 emissions [42][43] Q&A Session Summary Question: Overview of expansion projects in mining and cement - Management highlighted that over 60% of CapEx in 2025 will focus on priority projects, with P15 being a significant priority expected to start operations by the end of 2027 [51][52] Question: Update on steel production and pricing strategy - Management indicated that the steel segment is expected to maintain a two-digit EBITDA margin, with price adjustments anticipated in the first quarter [77][78] Question: Strategic plan amidst trade wars and investment flexibility - Management confirmed that while the focus remains on mining and steel, there is flexibility in postponing less critical projects depending on market conditions [82][83] Question: Antidumping measures and market dynamics - Management discussed ongoing efforts to address antidumping issues and the competitive landscape in the Brazilian market, emphasizing the need for protective measures against unfair imports [60][61] Question: Future of cement business and IPO plans - Management confirmed readiness for a cement IPO but noted challenges due to market conditions, indicating a desire to proceed when favorable [127]

Financial Data and Key Metrics Changes - Tronox generated revenue of $3.1 billion in 2024, an increase of 8% compared to the prior year, driven primarily by higher TiO2 and zircon sales volumes, partially offset by unfavorable price and product mix [10] - The company reported a net loss attributable to Tronox of $48 million for the full year, with adjusted EBITDA of $564 million and an adjusted EBITDA margin of 18.3% [10] - In Q4 2024, revenue was $676 million, a decrease of 1% year-over-year, with a net loss of $30 million and adjusted EBITDA of $129 million, achieving an adjusted EBITDA margin of 19.1% [11][10] Business Line Data and Key Metrics Changes - TiO2 revenues increased by 3% year-over-year in Q4, with sales volumes improving by 4%, but were partially offset by a 1% decline due to price and product mix [11] - Zircon revenues surged by 32% year-over-year in Q4, driven by a 43% increase in sales volumes, despite an 11% headwind from price and product mix [12] - Revenue from other products decreased by 38% year-over-year due to opportunistic sales that did not repeat in Q4 2024 [13] Market Data and Key Metrics Changes - Stronger TiO2 commercial performance in Asia Pacific and Latin America helped mitigate lagging demand in Europe, while North America performed in line with expectations [6] - The company noted competitive dynamics affecting pricing across all products, with expectations for price recovery in the second half of 2025 [30][29] Company Strategy and Development Direction - Tronox is focusing on sustainability projects, including converting 40% of its power in South Africa to solar, which avoided $17 million in electricity costs in 2024 [8] - The company launched a new business strategy in the second half of 2024, emphasizing cost efficiency, optimizing asset reliability, and driving operational excellence [9] - Tronox identified $125 million to $175 million of additional cost improvement opportunities achievable by the end of 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 revenue to range from $3 billion to $3.4 billion, with adjusted EBITDA between $525 million and $625 million, considering market recovery and competitive dynamics [18] - The company anticipates a stronger second half of 2025, with pricing expected to improve as market conditions stabilize [19] - Management highlighted ongoing challenges with mining production costs, projecting a negative impact of $50 million to $60 million in 2025 due to transitioning to new mines [40][41] Other Important Information - Tronox's total debt stood at $2.9 billion, with a net leverage ratio of 4.8 times at year-end [15] - The company returned $80 million to shareholders in dividends during 2024 [16] Q&A Session Summary Question: What is driving the softer pricing in the first half of the year? - Management noted competitive activity in certain regions and a slow recovery period, with expectations for price increases in the second half of the year as market conditions improve [26][30] Question: How much of the cost improvement program relies on volumes versus efficiency? - The cost improvement program focuses primarily on cost efficiencies rather than volume increases, with expectations to achieve $25 million to $30 million of improvements in 2025 [31][32] Question: What is the expected impact of mining costs in 2025? - The majority of the $50 million to $60 million negative impact is expected in the first half of 2025, with recovery anticipated in 2026 as new mines come online [40][41] Question: How are raw material costs trending for 2025? - Raw material costs are expected to decline in the low single digits year-over-year, with specific increases in electricity and coal costs [84][85] Question: What is the outlook for TiO2 market share? - Management indicated that while some share has been lost to Chinese competitors, there are opportunities for recovery, particularly in regions benefiting from trade duties [68][69]