SQM(US:SQM)2025-08-20 17:00Financial Data and Key Metrics Changes - Revenues decreased by more than 3% year on year due to lower lithium prices compared to earlier in the year [7] - Lithium sales volumes from the Salar De Atacama were almost flat compared to last year, impacted by lower prices triggering contract floors [8] - The company expects yearly sales volume from Chilean operations to increase by at least 10% versus 2024 [9] Business Line Data and Key Metrics Changes - Iodine was the most profitable segment in Q2 with an adjusted gross margin of 57%, contributing over 50% to total company gross profit [9] - The specialty plant nutrition business remained stable, reflecting resilient demand across key markets [10] - Potassium volumes were lower as guided, but prices remained firm [11] Market Data and Key Metrics Changes - Strong demand growth for lithium is observed from EV and BEST sectors, particularly in China and Europe [7] - Lithium carbonate prices in China have been recovering, with expectations for higher sales prices in Q3 compared to Q2 [33] - The company anticipates that sales in the second semester of the year will be higher than the first semester and higher than the second semester of last year [33] Company Strategy and Development Direction - The company is confident in capturing strong fundamentals of the lithium market while delivering solid results across all businesses [11] - The expansion decision for Mt. Holland will not be made in 2025, with periodic reviews planned for the following year [16] - The company aims to maintain production at full capacity and expand in line with expected market growth [34] Management's Comments on Operating Environment and Future Outlook - Management noted a change in market dynamics with recent price improvements and strong demand growth [7] - The iodine market is expected to see solid fundamentals, with demand growth anticipated next year if capacity is available [20] - The company remains optimistic about the business outlook, citing strong demand and a positive price environment despite volatility [70] Other Important Information - The Tijuana refinery is now complete and has delivered its first product on spec, on budget, and on time [8] - The company is working on the Salar Futuro project, with environmental studies expected to be submitted next year [43][44] - The company is investing significantly to increase iodine supply to meet customer needs [51] Q&A Session Summary Question: What is the midterm or long-term goal for SPN? - The strategy involves growing volume and adding services and products to maintain a solid brand and pricing [14] Question: What is the current thinking on the Mt. Holland expansion? - The expansion decision will not be made in 2025, with ongoing engineering studies and approvals [16] Question: What will break iodine prices? - Demand is expected to grow, but supply constraints due to environmental restrictions may limit growth [52] Question: What is the current status of the deal with Codelco? - The process is moving positively, with expectations for completion in the next few weeks [66] Question: What is the current lithium inventory level? - The company expects to have close to 230,000 metric tons of lithium inventory, aligning with projected sales [68]