Q2 2023 Sociedad Química y Minera de Chile SA Earnings Call

So Cory this is Kurt.

I want to go back on the China refinery and the timing of the product shelf. So this has been delayed by a few months could you just walk us through maybe some of the difficulty that should have been faced and then and then if there is anything you can share in terms of expectation into 2024.

Yes, we have some.

Some delayed in China, because we have been focusing more in and to get it to the best CEO in our conversion plan in China, you know that it's a new process to start them further reduced sulfur from the seller of the camera to the Mcdonough hydroxide.

Mm bye with Paypal The commission Russo is already done and now with respect to start producing in the coming months.

Sure.

While the <unk> and the volume coming from China.

And to be a full production next year.

Hi, sorry, I was on mute.

So nice to hear you like he'd be.

<unk>, yes, we have some some delaying time on because we have been focusing more in <unk>.

Capacity, if everything goes well.

Yes, good idea is to produce in our plan around 25000 metric ton or sell it on a go for them on probably to do some more drilling with Barclays.

The best year in our commercial planning in China, even though there is a new process may start them for the lithium sulfate from this allow the camera to the Daytona aggregate site.

Okay.

Bye with Paypal. The Commission also is already done and now with respect to the self producing in the coming months.

Hey.

So quick follow up the first one can you give us I know I know.

On Mount Holland is it stayed on track you know I think you had mentioned 2000 Twenty's thought you would be sending some some volume while jewelry a tolling agreement that's right and the other question would be given where the spot price and pricing are falling down again is there a path where you would maybe call today.

And to be a full production next year.

Hi, sorry, I was on mute.

So nice to hear you I think he'd be at full capacity if everything goes away.

Yes.

All these projects and the spending into the market or are we not there yet.

<unk> reviews, and our plan around 25000 metric ton as a leader in our group.

Thank you.

I am probably to do some more tolling with Barclays.

Okay.

And then maybe.

Two.

Yeah, what are our ideas through to a study where I want the party. The mcallen is advancing well and according to the peripheral T for women boom timeline.

So quick photo of the Fas one can you give us an update on month Heartland is it stayed on track I think you had mentioned 2024, you will be spending some.

With respect to first broker from the constant greater plan by the last quarter of this year.

Volume all jewelry touring agreement, that's right and the other question would be given where the spot price and pricing are falling down again in that pond, where you would maybe call today, Oh welding projects in that setting into the market or are we not there yet.

For the refinery, we expect to start producing.

Yeah middle of 'twenty five.

But with respect to top producing a full capacity as soon as we can.

And that could be at the end of this year early next year.

Thank you.

Yeah.

Hum.

And I've been regarded with it with a price we're just eh.

For comfort and there we're going to produce.

Yes, well our JDSU to study what I wanted the party the mcallen is advancing well and according to the priority for a moment the timeline.

I'll come back to this when I was in the first week.

As we can.

Thank you I appreciate it.

Our next question from Lukas for Larry.

With Victor first broker from the constant greater plan by the last quarter of this year.

P Morgan.

Go ahead.

For the refinery, we expect to start producing.

Hi, Good afternoon, everyone. So my question is about the ramp up to 210000.

Middle of 'twenty five.

With respect to start producing a full capacity as soon as we can and that could be at the end of this year early next year.

In Florida Tacoma.

Correct me, if I'm wrong, but I had the the views that this could be done faster than the end of 2024.

No.

No I'm.

And I've been regarded with it with a price it would just for.

And so if I'm right are you seeing any bottlenecks in both the carbon plant or in terms of our yields and extraction data alone.

We're confident that we're going to produce a full capacity as we go through again.

Thank you my question.

There's a lot of Tacoma.

Our next question will come from Lucas.

Are you considering maybe slowing down that depending on the market demands them. So how you see the pace of growth towards 210.

For audio with Jpmorgan you may.

Oh go ahead.

Hi, Good afternoon, everyone. So my question is about the ramp up to 210000.

And then my my my second question is regarding.

The SPN market. So if you have any views on prices going forward, we started to see.

In Florida Tacoma.

Correct me, if I'm wrong, but I had the view that this could be done faster than at the end of 2024.

Sort of a rebound in fertilizer prices, depending on the type of fertilizers, but in the case of SDN.

And so if I'm right are you seeing any bottlenecks in both of the Carmen plant or in terms of our yields and extraction data alone.

You see already sort of a bottom for prices and should have an expectation for for prices in the second half of the year. Thank you.

There's a lot of Tacoma.

Okay regarding your first question Luca for them, where we're fully working to expand our capacity to lend to Rishi as soon as possible the 210000.

Are you considering maybe slowing down that depending on the market demands them. So how you see the pace of growth towards 210.

And then my my my second question is regarding the.

We're focusing.

Focusing in deferred in the area of Dominion proving our quality to get into best brought Oregon for the marketing goes into yields in order to get more production with Lithia resources on them.

The SPN market. So if you have any views on prices going forward, we started to see.

Sort of a rebound in fertilizer prices, depending on the type of fertilizers, but in the case of SDN.

We're well on our schedule on that on a with breakthrough through to Quebec or about to be next year.

If you see already sort of a bottom for prices and should have an expectation for for prices in the second half of the year. Thank you.

In time, where we're working to expand our capacity lithium hydroxide on respect to Rumble. Therefore line in there in the last quarter of this year and EMEA really start to expand the capacity in order to reach the 1000 metric ton unless we were have been planned for the year 'twenty five 'twenty six.

Okay regarding your first question Luca.

We're we're fully working to expand our capacity in Chilean qureshi as soon as possible. The 210000 were.

Focus having deferred in the area of Dominion proving our quality to get into the best <unk> for the market increase in the yields in order to get more production with less resources.

Okay.

Okay.

Okay, Paolo altimeter speaking with regarding to the SPN question.

We're well on our schedule on that on a worst breakthrough through two public about to be made next year at the same time, we're working to expand our capacity in lithium hydroxide on respect to run the four line being the last quarter of this year and EMEA may start to.

Well you you know that the first semester the demand it's been lower than what happened last year at the same to you.

The reason is because it will.

Uncertainty high prices of fertilizers and also.

On weather difficult conditions in some markets.

We expect the demand will start growing in the cyclical.

Finally, the capacity in order to reach in their 100000 metric go unless we were have been planned for the year 'twenty five 'twenty six.

A year. So we will see more demand so that means that we should be able to increase our volumes.

Okay.

Okay.

However regarding to prices, we see that we will continue if theyre seeing some price decrease that also we will have also to the to the sales increase in demand increase but we expect to start seeing some some decrease in prices.

Okay Bolus altimeter speaking with regarding to the SPN a questions.

Will you you know that the first semester the demand it's been lower than what have been less last year at the St.

The reason is because it will.

Perfect. Thank you.

Uncertainty high prices for fertilizers and also.

Some weather difficult conditions in some markets.

That concludes our question and answer session I would like to turn the conference back over to Irina actually Novo for any closing remarks.

We expect that the demand will start growing in the cyclical host of the of the year. So we will see more demand. So that means that we should be able to increase our volumes.

Thank you for joining our call today, and we're looking forward to having given our next call have a great day, everyone by them.

However regarding to prices, we see that we will continue assessing so some price decrease that also we will have also to the to the say to see increase in demand increase but we expect to start seeing some some decrease on prices.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Perfect. Thank you.

That concludes our question and answer session I would like to turn the conference back over to Irina <unk> for any closing remarks.