Q3 2023 ICL Group Ltd Earnings Call

Speaker 1: Ladies and gentlemen, thank you for standing by. We will give it another minute for those who are still trying to connect. We will begin shortly. Thank you for your patience.

Ladies and gentlemen, thank you for standing by and we will give it another minute for those who are still trying to connect we will begin shortly thank you for your patience.

This meeting is being recorded.

Speaker 1: Ladies and gentlemen, thank you for standing by and welcome to the ICL analyst conference.

Ladies and gentlemen, thank you for standing by and welcome to the ICL Analyst Conference call. Our presentation today will be followed by a question and answer session at which time if you wish to ask the question you will need to raise your hand.

Speaker 1: Our presentation today will be followed by a question and answer session, at which time, if you wish to ask a question, you'll need to raise your hand using your mobile or desktop application and wait for your name to the amount. I must advise you that this call is being recorded today. I would like to hand over the call to our first speaker today, Peggy Riley Stark, Vice President of Global Investor Relations. Please go ahead.

Using your mobile or desktop application and wait for your name to be announced I must advise you that this call is being recorded today I would like to hand over the call to our first speaker today, Peggy Reilly Tharp, Vice President of Global Investor Relations. Please go ahead.

Speaker 2: Thank you. Hello, everyone. I'm Peggy Riley Tharpe, Vice President of Global Investor Relations.

Thank you Hello, everyone I'm, Peggy Reilly Tharp, Vice President of Global Investor Relations I'd like to welcome you and thank you for joining us today for our quarterly earnings call. The event is being webcast live on our website at ICL Dash group Dotcom.

Speaker 2: I'd like to welcome you and thank you for joining us today for our quarterly earnings.

Speaker 2: The event is being webcast live on our website at icl-group.com.

Speaker 2: Earlier today, we filed our reports with the securities authorities and the stock exchanges in the US and in Israel.

Earlier today, we filed our reports with the securities authorities and the stock exchanges in the U S and in Israel.

Speaker 2: Those reports, as well as the press release, are available on our website.

These reports as well as the press release are available on our website.

Speaker 2: There will be a replay of the webcast available after the meeting and a transcript will be available shortly thereafter.

There will be a replay of the webcast available after the meeting and a transcript will be available shortly thereafter.

The presentation, which will be reviewed today was also filed with the securities authorities and is available on our website. Please be sure to review the disclaimer on slide two our comments today will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Speaker 2: Our comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Speaker 2: statements are based on management's current expectations and are not guaranteed to future performance. The company undertakes no obligation to update any financial information discussed on this call at any time.

These statements are based on management's current expectations and are not guarantees of future performance. The company undertakes no obligation to update any financial information discussed on this call at any time.

Speaker 2: We will begin with the presentation by our CEO , Mr. Rive Zolder, followed by Mr. Aviyar Amlahav, our CFO . Following the presentation, we will open the line for the Q&A session. Rive, please.

We will begin with a presentation by our CEO, Mr. Rajiv Zoller, followed by Mr. Avi and I'm Gonna have our CFO.

Following the presentation, we will open the line for the Q&A session Raviv. Please.

Thanks, Maggie and welcome everyone.

Speaker 3: I'd like to begin by recognizing all the expressions of concern we've received since October 7.

Like to begin by recognizing all the expressions of concern we've received since October seven.

Speaker 3: In addition to hearing from you, our investors, we've also heard from our customers, suppliers, competitors, and so many others.

In addition to hearing from you our investors. We've also heard from our customers suppliers competitors on so many hours.

Speaker 3: These heart-zone messages are greatly appreciated as we navigate the current situation. And as...

These heartfelt messages are greatly appreciated as we navigate the current situation in Israel.

Speaker 3: While I will provide more detail later in this call, I would like to assure you that while there are some challenges, our operations in Israel continue without significant disruption. For the third quarter, you can see a quick overview of the results on slide 3.

While I will provide more detail later in the call I would like to assure you that while there are some challenges our operations in Israel continue without significant disruption for the third quarter you can see a quick overview of results on slide three.

Speaker 3: sales of $1.86 billion were slapped sequentially, as we saw the beginning signs of stabilization in many of our end marks.

Sales of $1 83 billion.

$1 billion were flat sequentially as we saw the beginning signs of stabilization in many of our end markets.

Speaker 3: Adjusted EBITDA of $346 million was down versus the prior record a year as expected.

Adjusted EBITDA of $346 million was down versus the prior record year as expected.

Speaker 3: During the quarter, we completed significant destocking efforts, which in part helped contribute to our strong castionry.

During the quarter, we completed significant destocking efforts, which in part helped contribute to our strong cash generation.

Speaker 3: For the third quarter, it generated more than $400 million operating cash flow and $217 million of free cash.

For the third quarter, we generated more than $400 million of operating cash flow and $217 million of free cash flow.

Speaker 3: We delivered 11 cents of earnings for share and distributed nearly $70 million in dividends to our shareholders as part of our long-standing policy to pay out 50% of adjusted net income each quarter.

We delivered 11 cents of earnings per share and distributed nearly $70 million in dividends to our shareholders as part of our long standing policy to pay out 50% of adjusted net income each quarter.

Speaker 3: While I will discuss each of our businesses in more detail, I would like to call out our strong, put out deliveries in the third order, and we are now sold out for the year.

While I will discuss each of our businesses in more detail I would like to call out our strong courthouse deliveries in the third quarter and we are now sold out for the year.

Speaker 3: For our Fox fake special fees, we have another solid quarter and are in the process of board approvals, the first Fox fake agreement for our new battery and material facility, which is now under construction in St. Louis.

Phosphate specialties, we had another solid quarter and we're in the process of board approvals for first off take agreement Guarani, rather material facility, which is now under construction in St. Louis.

Speaker 3: I would ask you to now turn to slide four and a three year look at our key financial

I would ask you to now turn to slide four and a three year look at our key financial metrics.

Speaker 3: Well, fairs were down here over year as expected. They were up versus 2021 on both a quarter and year to day base.

While sales were down year over year as expected they were up versus 2021 on both the quarter and year to date basis adjusted.

Speaker 3: I just did even that was down to the quarter due to lower pricing across all of our businesses. However, we saw some increases in volume.

Adjusted EBITDA was down for the quarter due to lower pricing across all of our businesses. However, we saw some increases in volumes.

Speaker 3: During the quarter, we benefited from better raw material prices and transportation rates and saving efficiencies overall. However, this was obviously not enough to us to decline in prices from 2022. On slide five, you can see our special pieces.

During the quarter, we benefited from better raw material prices and transportation rates and fading efficiencies. Overall. However, this was obviously not enough to offset the decline in prices from 2022 on.

On slide five you can see our specialty sales.

Speaker 3: So, 2022 was an exceptional year. You can see that our year to date, 2023 specialty sales remain ahead of our more normalized 2021 reasons.

While 2022 was an exceptional year you can see that our year to date 2023 specialty sales remain ahead of a more normalized 2021 rebuilds.

Speaker 3: Overall specialty sales were higher versus the first 9 months in 2021.

Overall specialty sales were higher versus the first nine months of 2021.

Speaker 3: Similarly, while down year over year are adjusted EPS for the first nine months of the year, exceeded the same time frame in 2021. In the center of the slide, you can see our third quarter operating cash flow, which was up versus the second quarter of this year, and our free cash flow, which was roughly flat for the same time.

Similarly, while down year over year, our adjusted EPS for the first nine months of the year exceeded the same timeframe in 2021.

In the center of the Slide you can see our third quarter operating cash flow, which was up versus the second quarter of this year and our free cash flow, which was roughly flat to the same timeframe.

Speaker 3: When compared to 2021, you can see we experienced significant growth in both operating and free cash growth on both the quarterly and year to date.

When compared to 2021, you can see we experienced significant growth in both operating and free cash flow on both the quarterly and year to date basis.

Speaker 3: I would now like to begin our second review with industrial product on slide.

I would now like to begin our segment review with industrial products on slide six.

Speaker 3: Third quarter sales were 267 million dollars. Well, even though it was 42 million dollars.

Third quarter sales were $267 million, while EBITDA was $42 million.

Speaker 3: As we indicated in June , the recovery and demand for flame retardants has been much lower than predicted.

As we indicated in June the recovery in demand for flame Retardants had been much lower than predicted.

Speaker 3: During the third quarter, the boning price has hit bottom, and we also completed some additional destocking it.

During the third quarter bromine prices hit bottom and we also completed some additional destocking efforts.

Speaker 3: demand is now slowly picking up in the fourth quarter and our unique cross position and focus on long-term customer partnerships is allowing us to gain market.

Demand is now slowly picking up in the fourth quarter and our unique cost position and focus on long term customer partnerships is allowing us to gain market share.

Speaker 3: Demand for clear buying for goods as the main strong as oil drilling activity has increased. Our specialty minerals business unit targeting food, pharma and other end markets performed in accordance with our expectations and research.

Demand for clear brine fluids as it remains strong and oil drilling activity has increased our specialty minerals business unit targeting food pharma and other end markets performed in accordance with our expectations in the third quarter.

Speaker 3: Overall, our industrial product division started gaining market share toward the end of the quarter.

Overall, our industrial products division start gaining market share towards the end of the quarter.

Speaker 3: As the leading global producer of bromine, we have been able to leverage our efficient cost position and remain profitable.

As the leading global producer of bromine, we have been able to leverage our efficient cost position and remain profitable. Despite the unique challenges, which may have significant impact on smaller manufacturers.

Speaker 3: By unique challenges which may have significant impact on a smaller any start.

Speaker 3: As I said last quarter, our industrial product business remains on track for the long term. And we do not expect recent developments, which are predominantly external, to have an accurate impact on the execution of our five-year.

As I said last quarter, our industrial products business remains on track for the long term and we do not expect leasing developments, which are predominantly external to have a material impact on the execution of our five year plan.

Speaker 3: We are beginning to see demand recovery becoming visible in some end market and expect to gain benefits from cost savings initiatives launched in recent months.

We are beginning to see demand recovery and becoming visible in some end markets and expect to gain benefits from cost savings initiatives launched in recent months.

Speaker 3: Turning to slide seven in our Foxy Solutions division, where we've got strong results relative to current global market conditions.

Turning to slide seven and our phosphate solutions Division, where we reported strong results relative to current global market conditions.

Speaker 3: Third-core sales of $620 million were up sequentially, while EBITDAQ came in at $117 million, and was substantially impacted by lower prices in the market, mainly on the commodity side of the bid.

Third quarter sales of $620 million were up sequentially, while EBITDA came in at $117 million and was substantially impacted by lower prices in the market mainly on the commodity side of the business.

Speaker 3: For the quarter, our phosphate specialties business demonstrated resilience and represented approximately 60% of phosphate solution sales and nearly 50% of eBidout. Specialties eBid the margin of 15% is in line with the third quarter of 2021.

For the quarter, our phosphate specialties business demonstrated resilience and represented approximately 60% of phosphate solutions sales and nearly 50% of EBITDA specialties EBITDA margin of 15% is in line with the third quarter of 2021.

Speaker 3: Street cash flow was very favorable in the third quarter as we improved our working capital positions for cross-shake solutions.

Free cash flow was very favorable in the third quarter as we improved our working capital position to processing solutions.

Speaker 3: We also benefited from low-eromaterial and transportation costs during the quarter as we leverage our supply chain capability.

We also benefited from lower raw material and transportation costs during the quarter as we leveraged our supply chain capabilities.

Speaker 3: Sales and volumes vary by end market and region. In our industrial specialty, showed strength and Asia-Pacific due to resurging demands of battery material.

Sales and volumes varied by end market and region and our industrial specialties showed strength in Asia Pacific due to the surging demand for battery materials.

Speaker 3: For our specialty food spots, we experience strong pricing in North America and overall, food prices continue to be elevated on the global.

Our specialty food phosphates, we experienced strong pricing in North America, and overall food prices continued to be elevated on a global basis.

Speaker 3: Europe remains challenging in general as it has for the past four quarters with increased competition from Chinese suppliers. And we continue to defend our market share where necessary in this region.

Europe remains challenging in general as it has for the past four quarters with increased competition from Chinese suppliers, and we continue to defend our market share where necessary in this region.

Chinese producers are also becoming more apparent in South America as China continues to export it excess supply.

Speaker 3: Chinese producers are also becoming more apparent in South America as China continues to export its excess supply.

Speaker 3: In both Europe and South America, we implemented targeted efficiency efforts to optimize our logistics, raw material costs, and energy.

In both Europe, and South America, we implemented targeted efficiency efforts to optimize our logistics raw material costs and energy costs.

Speaker 3: For our battery materials expansion in St. Louis, we are on track for this facility to be operational in late 2020.

For our battery materials expansion in St. Louis we are on track for this facility to be operational in late 2025.

Speaker 3: Well, there's been a lot of noise in the news about electric vehicles lately. We remain excited about the long-term potential of the overall energy storage and electric vehicle in this.

Well theres been a lot of noise in the news about electric vehicles lately, we remain excited about the long term potential of the overall energy storage and electric vehicle industry.

Speaker 3: We have always expected this to be a gradual ramp up and are pleased to be the first mover for essential battery materials produced and sourced in the United.

We have always expected this to be a gradual ramp up and are pleased to be the first mover for essential battery materials produced and sourced in the United States.

Speaker 3: As I mentioned earlier, we soon expect to announce our first long-term strategic partnership, which will help in creating the next generation of battery and energy storage solutions in North America.

As I mentioned earlier, we still expect to announce our first long term strategic partnership which will help in creating the next generation of battery and energy storage solutions in North America.

Speaker 3: We are also seeing growing traction and engagement from additional potential optics.

We are also seeing growing traction in engagement from additional potential optic white house.

Speaker 3: On slide 8, you will see our PODASH results. And note our supply is sold out for the remainder of 2020.

On slide eight you will see our put US results and note our supply is sold out for the remainder of 2023.

Speaker 3: For the third quarter, sales were $526 million, as quantities increased to approximately 1.28 million metric comes with higher volumes to Europe , Brazil, and China.

For the third quarter sales were $526 million of quantities increase to approximately $1 28 million metric tons with higher volumes to Europe, Brazil and China.

Speaker 3: EBITDA came in at $164 million and prices began to stabilize.

EBITDA came in at $164 million and prices began to stabilize.

Speaker 3: I put out CIS 5 of $342 with down versus the same quarter in 22, but up slightly versus a third quarter of 2021.

I put a cif price of $342 was down versus the same quarter in 'twenty, two but up slightly versus the third quarter of 2021.

Speaker 3: In Spain, our production continues to face geological constraints in the third quarter as we continue to transition away from a lower grade mineral geography, which will carry on over the next few months.

In Spain, our production continued to face geological constraint in the third quarter as we continue to transition away from our lower grade mineral geography, which will carry on over the next few months. This shift is in concert with other efficiency efforts there as we strive to increase output and decrease costs in Spain.

Speaker 3: This ship is in concert with other efficiency efforts there as we strive to increase output and decrease costs in the space.

Speaker 3: We also continue to pursue cross-saving across our entire pedestrian portfolio. We're on track with up.

We also continue to pursue cost savings across our entire potash portfolio and are on track with our plans.

Turning to slide nine and our growing solutions businesses, which delivered sequential improvement in both sales and EBITDA in the third quarter.

Speaker 3: Turning to slide 9 in our growing solutions business, which delivered sequential improvement in both fields and even in the third quarter.

Sales were $550 million, while EBITDA was $37 million during.

Speaker 3: Sales were $550 million, while EBITDA was $37 million.

Speaker 3: During the quarter, significant destocking was almost fully completed, driving higher quantities across the division and contributed in part to all-time record quarterly cash flow and some gains in market share.

During the quarter significant destocking was almost fully completed driving higher quantities across the division and contributed in part to all time record quarterly cash flow and some gains in market share in.

Speaker 3: In total, growing solutions has reduced this inventory by approximately $140 million since the beginning of the year, which is in line with our plan.

In total growing solutions has reduced its inventory by approximately $140 million since the beginning of the year, which is in line with our plans.

Speaker 3: Savings and efficiencies efforts for 2023 also remain on track with improvement in the third quarter. Our restocking efforts also helped our Brazilian business, where we saw record sales with strong volumes.

Savings and efficiencies efforts for 2023 also remain on track the improvement in the third quarter. Our Destocking efforts also helped our Brazilian business, where we saw record sales and strong volumes, we gained market share during the quarter and also broken all time sales record and our foliar business and remain focused on high.

Speaker 3: We gained market share during the quarter and also broke an all-time sales record in our foliar business as we remain focused on higher profit products.

Their profit products.

Speaker 3: For other key geographies, we see the man returning in Europe , especially for our fertilizer plus product, and the pickup and demand is also becoming visible in China as well.

The other key geographies, we see demand returning in Europe, especially for our fertilizer plus products and the pickup in demand is also becoming visible in China as well.

Speaker 3: I would now like to draw your attention despite 10 and I'll review the key areas where we're in A-fold.

I would now like to draw your attention to slide 10, and a review of the key areas, where we remain focused.

Efficiencies has been a theme throughout 2023 and each of the divisions enhance their efforts in the third quarter.

Speaker 3: Efficiencies have been a theme throughout 2023, and each of the divisions enhanced their efforts in the third quarter.

Speaker 3: Our industrial products team has leveraged its efficient cost position during a challenging industry recovery. While phosphate solutions is focused on optimizing its logistics and raw material efficiencies, along with its energy usage on a global basis.

Our industrial products team has leveraged efficient cost position during a challenging industry recovery.

Phosphate solutions is focused on optimizing its logistics and raw material efficiencies along with its energy usage on a global basis.

Speaker 3: In PUT-A, we have benefited from ongoing efficiency efforts at the Dead Sea and are looking for advances in spain to material.

In potash, we have benefited from ongoing efficiency effort to the density and are looking for advances in Spain to materialize.

Speaker 3: For growing solutions, efforts to efficiently destock high-priced inventory help drive their third-quarter cash flow and also leave the business well-positioned for additional growth as demand shows signs of beginning to improve.

So growing solutions efforts to efficiently destock high priced inventory helped drive a third quarter cash flow and also leaves the business well positioned for additional growth as demand showed signs of beginning to improve.

Speaker 3: In total, all of these efforts help drive a strong total operating cash flow of $1.18 billion a year to date, and I'll be around to discuss our efficiency efforts in more detail.

In total all of these efforts helped drive our strong total operating cash flow of $1 $18 billion year to date and have Ron will discuss our efficiency efforts in more detail.

Speaker 3: Growing our specialty spotter portfolio remains a key long term priority.

Growing our specialties product portfolio remains a key long term priority.

Speaker 3: Our investment in battery materials for energy storage and electric vehicles will help position the phosphate specialties business for the future and further diversify in market exposure.

Our investment in battery materials for energy storage and electric vehicles will help position the phosphate specialties business for the future and further diversified end market exposure.

Our industrial products business remains the leader in the global bromine market, which will continue to see long term growth as electronics become even more firmly embedded in our AI driven future.

Speaker 3: Our industrial products business remains the leader in the global growing market, which will continue to see long term growth as electronics become even more firmly embedded in our AI driven future.

Speaker 3: For growing solutions, we're excited about expanding our reaching growing markets, such as Brazil and India. And as we continue to develop new, more sustainable product to the future of Adelaide.

For growing solutions, we're excited about expanding our reach and growing markets, such as Brazil, and India and as we continue to develop new more sustainable products of the future of agriculture.

Speaker 3: Our innovation focus on sustainability has been rewarded by a robust high value new product portfolio and improved ties with third parties, as well as improved ratings, including our recent upgrade by MSCI to triple V.

Our innovation focus on sustainability has been rewarded by a robust high value new product portfolio and improved size with third parties as well as improved ratings, including our recent upgrade by MSCI to Triple B.

Speaker 3: we expect to continue to improve our various rankings. In terms of M&A, new opportunities have recently surfaced, and we've also recruited Uri Perlman to join our management team.

We expect to continue to improve our various rankings in terms of M&A new opportunities have recently surfaced and we have also recruited buoyed perlman to join our management team.

Speaker 3: We joined ICL as an executive vice president and as our chief business developed not.

Boeing joined ICL, as an executive Vice President and as our Chief business Development Officer.

Speaker 3: He will help accelerate our business development, M&A, and strategic partnership efforts.

He will help accelerate our business development M&A and strategic partnership efforts, we have an impressive track record in business development successfully leading growth processes and several companies and we're very excited to have him join the team.

Speaker 3: We have an impressive track record in business development, successful meeting growth processes in several companies. And we're very excited to have them join us.

Speaker 3: Finally, I would like to provide an update on the situation in Israel.

Finally, I would like to provide an update on the situation in Israel.

Speaker 3: I'm deeply saddened to share that we lost several members of our ICL family due to the tragic event that took place on October 7th and in the afternoon.

I'm deeply saddened to share that we lost several members of our ICL family due to the tragic events that took place on October seven and in the outcome.

Speaker 3: Our main focus has been on providing our employees and tacked by the hostilities with their most immediate needs.

Our main focus has been on providing our employees impacted by the hostilities with their most immediate needs.

Speaker 3: At the same time, we've been working to keep our employees safe, both at work and home, and continue to adopt all the necessary measures, both at the site and during transport to minimize any potential risk.

At the same time, we've been working to keep our employees safe both at work and home and continue to adopt all the necessary measures. Both at the site scan during transport to minimize any potential risks.

Speaker 3: From a business standpoint, we have faced various operational challenges caused by the war, but have succeeded in minimizing disruption and maintaining good production levels, thus meeting all of our customer movements.

From a business standpoint, we have faced various operational challenges caused by the war, but has succeeded in minimizing disruption and maintaining good production levels. Thus meeting all of our customer commitments.

Speaker 3: As of last week, approximately 600 of our more than 4,500 Israeli employees had been called to reserve duty, a situation that has required some adjustments, which have been working.

As of last week, approximately 600 of our more than 4500 Israeli employees had been called reserve duty.

A situation that is required from adjustments, which have been working effectively.

Speaker 3: As many of you have inquired, transportation of goods has become a unique challenge, but our teams have been managing quite well.

As many of you have inquired transportation of goods has become a unique challenge, but our teams have been managing quite well.

Speaker 3: We're doing our best to get back to our normal business routine. And as you can imagine, we are monitoring the situation on a constant basis.

We're doing our best to get back to our normal business routine and as you can imagine we are monitoring the situation on a constant basis.

Speaker 3: We will continue to make all the necessary decisions and take the required actions to guarantee our business continuity while keeping our employees and community safe.

We will continue to make all the necessary decisions and take the required actions to guarantee our business continuity, while keeping our employees and communities safe.

Speaker 3: I feel has been actively reaching out to the impact of communities and offering them support both material and emotional. And I cannot even put into words how proud I am of our employees who have been volunteering night and day to support the people and communities affected by the tragedy Israel's face.

ICL has been actively reaching out the impact of communities and offering support both material and emotional connection.

Can I cannot even put into words, how proud I am of our employees, who have been volunteering night and day to support the people and communities affected by the tragedy Israel space.

Speaker 3: While I always thank the entire ICO family of employees all around the world for their hard work and contributions each quarter, this is an especially heartfelt sentiment.

Will it always banking by ICL family of employees all around the world for their hard work and contributions each quarter.

This is an especially heartfelt sentiment today.

Speaker 3: The tenacity of the team in Israel has been inspiring and the unwavering support of our global colleagues has been hardworn.

The tenacity of the team in Israel and inspiring.

Unwavering support of our global colleagues who've been heartwarming.

Speaker 3: Yeah, we did it and we will prevail out before.

Our resilience and we will prevail as before.

Speaker 3: Again, we thoroughly appreciate all of your kind words and prayers in hope the situation will be improved by the time we report our forth for the result.

Again, we thoroughly appreciate all of your kind words and prayers and hope the situation will be improved by the time, we report our fourth quarter results.

Speaker 3: And with that, I would now like to turn the call over to Elina.

And with that I would now like to turn the call over to telecom.

Speaker 4: Thank you, Raviv, and to all of you for joining us today.

Thank you Louise and all of you for joining us today.

Speaker 4: Let us get started on slide 12, where you will see some very familiar external macro pressures. While many of these remain unchanged from the beginning of this year, as we just discussed, the war in Israel, which began in the fourth quarter, brings additional geopolitically.

Let us get started of like what where you will see some very familiar external macro pressures.

While many of these remain unchanged from the beginning of this year as Red have just discussed the Wuhan in Israel, which will begin in the fourth quarter brings additional geopolitical issues, both inflation rates and interest rates have moderated but remained mixed on a global basis.

Speaker 4: Both inflation rates and interest rates have moderated but remain mixed on a global basis.

Speaker 4: Overall, global growth remains subdued, and the economic recovery in China has been wheelchair than expected. From an agricultural perspective, grain prices are leveling off, and further laser prices have stabilized.

Overall global growth remains subdued and the economic recovery in China has been weaker than expected from an agricultural perspective grain prices are leveling off and fertilizer prices have stabilized.

Speaker 4: On slide 13, you can see some of the trends I just discussed. While inflation rates are generally trending down, they remain assistantly elevated on a sort of basis, as do interest rates. And on slide 14, you can see the trends in grains and fertiliser prices.

On slide 13, you can see some of the trends I just discussed.

While inflation rates are generally trending down they remain assistant Lee elevated on a historical basis as do interest rates and on slide 14, you can see the trends in grain and fertilizer prices.

Speaker 4: On flight 15, you can see the expected trend for electric vehicles over roughly the next day.

On Slide 15, you can see the expected trend for electric vehicles over roughly the next decade.

Speaker 4: As Raviv mentioned, there has been a great deal of noise about EVs lately, but as you can see, the rate of growth has always been expected to be gradual. Electrical vehicles sales are on track to hit 9% of all cars sold in the U.S. by the end of this year. That's a 50% year-over-year increase, and it is the second year in a row that EV sales have surged by that amount.

Rohit mentioned there has been a great deal of noise about EV lately, but as you can see the rate of growth has always been expected to be graduate electric vehicle sales are on track to eight 9% of whole car sold in the U S. By the end of this year.

That's a 50% year over year increase and it is the second year in a row that EV sales have surged by that amount.

Speaker 4: LFP bathroom materials we will be producing at our facilities and lois will be used not only in electrical vehicle but also by the energy storage industry.

NSP battery materials, we will be producing at our facility in St. Louis will be used not only in electrical vehicle, but also by the energy storage industry. It is important to remember that renewable energy needs to be captured and stope for use by evs and in other applications and the.

Speaker 4: is important to remember that renewable energy needs to be captured and stored for use by EVs and in other applications. And the investment we are making today will help advance such

<unk>, we are making today will help advance such efforts.

Speaker 4: If you now turn to slide 16, on the left side, you can see the sales bridge from the third quarter of last year to sales of $1.86 billion this year.

Let's turn to slide 16 on the left side you can see the sales bridge from the third quarter of last year sales of $1 $86 billion. This year.

Speaker 4: With each of our segments showing the year of the decline, importantly, on the right side of the slide, you can see that while quantities were up, prices had an overwhelming impact as commodities were at all time high last.

With each of our segments showing a year over year decline importantly on the right side of the slide you can see that wed quantities were up prices had an overwhelming impact as commodities were at all time high last year.

Speaker 4: Similarly, on slide 17, you can see the impact prices had on our third quarter adjusted EBITDA of $346 million. Once again, quantities contributed positively in the quarter, while lower prices, especially product prices, made a significant impact.

Similarly on slide 17, you can see the impact prices had on our third quarter adjusted EBITDA of $346 million.

Once again co architects contributed positively in the quarter, while oil prices, especially positive price. It made a significantly but we did benefit from lower raw material and transportation costs and also from the savings and efficiency program, we put in place in each business and on a corporate wide basis earlier this year.

Speaker 4: We did benefit from lower raw material and from transportation costs and also from the savings and efficiency programs that put in place in each business and on a corporate-like basis earlier this year. We expect benefits from our cost reduction and efficiency efforts to be even greater going forward.

We expect benefits from our cost reduction and efficiency efforts will be even greater going forward.

Speaker 4: As we showed you last quarter, from slide 18, you can see that not only is ICL a leader in terms of cost efficiency, we are also a leader in terms of pricing. While we are not as big as some of the voters produced out there, this is actually a benefit to ICL as it gives us the flexibility to quickly shift in and out of market based on profitability.

As we showed you last quarter on slide 18, you can see that not only is Ics a leader in terms of cost efficiency. We are also a leader in terms of pricing, while they're not as big as some of the potash producers out. There. This is actually a benefit bloodshed is it gives us the flexibility to quickly shift.

In and out of market based on profitability.

Speaker 4: I would now like to review a few highlights on slide 19. As a result of our savings and efficient activities were able to decrease SGA by approximately 11% year over year in the third quarter. Each of our businesses also worked to reduce working capital and high cost inventory. And as Aviv mentioned, our aggressive destocking efforts are now essentially...

I would now like to review a few highlights on slide 19, as a result of our savings and efficiency activities were able to decrease SG&A by approximately 11% year over year in the third quarter. Each of our businesses also work to reduce working capital and high cost inventory and as Avi mentioned, our aggressive <unk>.

<unk> effort I'll now essentially completed.

Speaker 4: These efforts were part of an orchestrated plan and while we did see some margin impact, we were able to gain market share as we reduced inventory. Our destocking also helped you part to drive our strong cash conversion at its quarter end, our available cash resources totaled $1.8 billion.

These efforts are part of an orchestrated plan and while we did see some margin impact we're able to gain market share as we reduced inventory. Our destocking also led in part to drive a strong cash conversion at the quarter end, our available cash resources totaled $1 8 billion.

Speaker 4: For the third quarter, I'll let that to adjust the living rate for the healthy point line.

For the third quarter, our net debt to adjusted EBITDA rate was a healthy point that.

Speaker 4: We also declared a dividend of five cents per share for the third quarter, resulting in a trailing 12 months, yield of five and a half percent. Texas was $43 million, reflecting an effective tax rate of 23% for the third quarter of this year. This relatively low rate was mainly due to the devaluation of the shake-up against the US dollar and the third taxes for carried forward losses related to the taxation of profits from naturalists.

We also declared a dividend of set five cents per share for the third quarter, resulting in a trailing 12 months and a five 5%, Texas with $43 million, reflecting an effective tax rate of 23% for the third quarter of this year. This relatively low rate was mainly due to.

The devaluation of the shekel against the U S dollar and deferred tax fiscal carryforward losses related to the taxation of profits from natural resources.

Speaker 4: Finally, you can see we reaffirmed our 2023 guidance calling for just an EBITDA of between 1.6 to 1.8 billion dollars. And as we stated in today's press release, we expect to be in the middle of that range. And with that, we can begin the Q&A.

Finally, you can see we reaffirmed our 2023 guidance, calling for adjusted EBITDA of between one six to one $8 billion and as we stated in today's press release, we expect to be in the middle of that range and with that we can begin the Q&A.

Okay.

Speaker 1: Thank you. In order to ask the question, please raise your hand using your mobile for desktop application, or press star nine on your telephone keypad, and wait for your name to be announced. Once again, please raise your hand using your mobile for desktop application, or press star nine on your telephone keypad, and wait for your name to be announced. Our first question today comes from the line of Alexander Jones, of Bank of America. Please go ahead.

Thank you in order to ask a question. Please raise your hand and using your mobile or desktop application for breast star nine on your telephone keypad and wait for your name to be announced once again. Please raise your hand, using your mobile or desktop application for press star nine on.

On your telephone keypad and wait for your name to be announced.

Our first question today comes from the line of Alexander Jones of Bank of America. Please go ahead.

Okay.

Speaker 5: Great, thank you very much for taking my questions. Two, if I may, just follow up on a couple of comments you made to revive. The first one on battery materials, you talked about this first customer contract or partnership that's near completion. Could you give us a little bit of an idea, the sort of criteria you're looking for when signing contracts with customers in terms of volume commitment or returns or margin levels or technology commitments that would be really helpful? And then the second one just on your products, you made a comment that demand is slowly picking up in Q4 so far. Could you expand a little bit on that in terms of?

Great. Thank you very much for taking my questions.

Two if I may just follow up on a couple of comments you made rajeev.

The first one on battery materials, you talked about this first customer contractual partnership is nearing completion could you give us a little bit of an idea sort of criteria. You are looking for when signing contracts with customers in terms of volume commitments or returns or margin levels will technology commitment and that would be really helpful.

And then the second one just on optical products.

<unk> made a comment that demand is slowly picking up.

In Q4, so far could you expand a little bit on that in terms of the different end markets you might be seeing that in all the magnitude of that fault. Thank you.

Speaker 5: different end markets you might be seeing that they know all the magnitude of that so far. Thank you.

Yeah.

Okay sure. Thanks, Alex.

Speaker 1: First of all, for battery materials, as you know, our plant is for 30,000 tons and we'll be ready to start supplying towards the second half of 2025. We're looking for customers that are either auto makers, battery makers or somewhere in between. And we're negotiating with quite a few potential customers.

First of all for battery materials as you know our plan has us at 30000 tonnes and.

We will be ready to start supplying towards the second half of 2025.

We're looking for customers at <unk> that are either automakers battery makers.

Or somewhere in between and.

We were negotiating with a quite a few potential customers.

Speaker 3: Some of the negotiations are closer than others. Some will take quite some more time so we can qualify and meet expectations. We're talking about potential customers for a few thousand tons of each.

Some of the.

Some of the negotiations are closer than others.

Some will take a quite some more time and so we cannot qualify qual.

Qualifying meet expectations.

We're talking about a potential customers for a few thousand tons each.

Speaker 3: And the reason we mentioned is that because we have the first agreement come to fruition and subject to board approval of both sides during the coming days, we should be able to announce in a few days.

And the reason we mentioned is that because we have the first.

Kremen come to fruition and subject to.

<unk> Board approval.

Both sides during the coming days are we should be able to announce in a few days.

Speaker 3: So that's what we are on battery materials, again, 30,000 times in total. We expect the facility can serve no more than two or three customers. And in the next few months, we expect to be able to discuss more than one customer.

So that's that's where we are in battery materials again 30000 tonnes in total we expect the facility can serve no more than.

Two or three customers and.

And in the next few months, we expect.

To be able to discuss more than one customer so that's.

Speaker 3: So that's on that. On industrial products, we're talking about demand.

That's on that.

On industrial products.

We're talking about the demand.

Speaker 3: for electronics construction is still.

For electronics construction is still.

Speaker 3: They're still away from us and I think the reason that we're seeing an electronic is that there is a level of demand that is lower or slower than you can see. But all the inventory in the supply chain is gone now. So we can actually feel the demand that exists and that means that volumes are going up now.

There's still away from us and I think the reason that we're seeing in electronics is that.

There is a level of demand that has a lower or slower than.

The new visual but all the all.

All the inventory in the supply chain is gone now so we can actually feel the demand that exists and that means that our volumes are going up now.

Speaker 3: And they will continue to go up in the coming months. And as you know, we have long-term contracts. So that means that when we want to increase the volume, we can. And that's what we're doing these days.

And it will continue to go up in AR in the coming months and as you know we have long term contracts. So that means that when we want to increase the volume are we can and that's what that's what we're doing these days in terms of.

Speaker 3: In terms of how fast the recovery will be, we think it will save.

How fast the recovery will be we think it will take quite some time, because there is yet to be seen a robust demand for electronics.

Speaker 3: quite some time because there is yet to be seen robust demand for electronics.

Speaker 3: Even electric vehicles, the demand is a little slower than was expected at this point. And also artificial intelligence, which is the next wave, is not something that we can feel at this minute. And I'm talking about increased demand for servers.

Even electric vehicles, the demand is a little slower than than was expected at this point and also artificial intelligence, which is the next wave is not something that we can field at this minute I'm talking about the increased demand for servers.

Speaker 3: And of course construction, construction related flame retardances is much farther away. So...

And of course construction, our construction related flame Retardants is a much farther way so.

Speaker 3: We see some of the demand recovery that we're seeing is because of the supply chain that is now not full of inventory. And additional demand will come from the market once interest rates start going down hopefully. Hopefully.

We see a.

Some of the demand recovery that we're seeing is because of the supply chain that are that is now not full of inventory and additional demand.

Will come from the market once interest rates start going downhole.

Hope that answers.

Keith.

Speaker 1: Thank you. Our next question today comes from a line of Ben, viewer of Varkley. Please go ahead.

Thank you. Our next question today comes from the line of Ben Theurer of Barclays. Please go ahead.

Speaker 6: Yeah, good afternoon evening. Until you guys. And thank you very much for taking my question. So also just two quick follow-ups. One to begin with.

Yeah. Good afternoon evening to you guys something thank you very much for taking my question.

So also just two quick follow ups one to begin with.

Speaker 6: on the growing solutions piece and you've talked about the destocking being significantly completed. Clearly, there was still, it seems there was still an impact in the third quarter. So help us understand like how should we think about the fourth quarter and then maybe looking into the first quarter of 2024, just as it relates to the match of demand where like actual demand versus what the supply is going to be. How do you?

On the growing solutions piece and you've talked about the destocking being significantly completed clearly there was still so it seems there was still an impact on deferred quarter. So help us understand like how should we think about the fourth quarter and then maybe looking into into the first quarter of 2024, just as it relates.

Two the match of demand, where it would make actual demand forces, but the supply is going to be.

Or how do you think about the cadence here and what's the kind of a normalized level of profitability you expect in that segment, particularly given the volatility we tend to get out of Brazil that would be my first question.

Speaker 6: think about the cadence here and what's like kind of an anomalies level of profitability you expect in that segment particularly given the volatility we tend to get out of Brazil that would be my first question.

Alright, Thanks, Ben in terms of them, we're seeing growing solution. The destocking is materially over.

Speaker 3: All right, thanks Ben. In terms of what we're seeing in growing solutions, the destocking is materially over. And what that means is that we're gonna see normalize margin, which is more like 2021 margin. Going into 2023, we're already growing volume.

And what that means is that we're going to see normalized margin, which is more like 'twenty 'twenty. One margin are going into 2023 we're already growing volume.

Speaker 3: We groove volume in Q3 even versus last year.

We grew volume in Q3, even versus the last year. So we expect growth of volume and a better margin given hydro prices and no need for this stock Destocking in Q3, we came in actually a little lower on EBITDA than we expected and I think we will see the same in Q4 some of that has.

Speaker 1: So we expect growth of volume and better margin given higher prices and no need for the stock to be stocking.

Speaker 3: In Q3 we came in actually a little lower on the other week expected.

Speaker 3: And I think we'll see the same in Q4. Some of that has to do with internal planning as some of the PODASH that we were going to supply internally to help promote.

To do with the.

With internal planning.

As some of the potash that we were going to supply internally to help promote.

Speaker 3: Some of our blends were going to need for external customers.

Some of our blends we're going to need for external customers.

Speaker 3: which means that some of the profitability that we expected in Q3 and Q4 we're not going to lose but we're going to see it in the putash

It means that some of the profitability that we expected in Q3 and Q4, we're not going to lose but we're going to see it and we put our sector.

Speaker 3: But coming first quarter of 2024, we're going to see normalized profitability as we did in 2021. Of course, 2022 doesn't measure up to anything that we know.

But coming for coming our first quarter of 2024, we're going to see normalized profitability. As we did in 2021 of course 2022 dozen gummies youre up to anything that we know.

Speaker 4: Hope that answers. Yeah. And then just notice that you have a dress one thing, they keep it high. So taking to account that this is a good culture and the seasonality part.

Hope that answers can I add a benefit than just the words of the hub.

Pest lumpy as Nathan said I or does it take into account that the visit agriculture and the seasonality part of it selectively in all Brazilian will be still a very strong quarter seasonally but less so than Q1 and in Q3, sorry, and and the northern hemisphere.

Speaker 4: So actually the normal really would be still a very strong quarter seasonally, but let's solve them Q1. And Q3, sorry. And the normal hemisphere has not yet started the season. So let's take what you asked about Q4. Take this also to account when you look at the current solution to basic level.

Has not yet started the season, so that could take when you asked about Q4 date. This also into account.

When you look at the <unk> solution suite basic level attention.

Speaker 6: Okay, perfect. And then actually one follow up for you, Aviram, just on like capital allocation, how should we think about it? You've talked about the dividend, and obviously what the CAPEX is. CAPEX is actually pretty strong still, but roughly 1.2 billion on a year-to-date basis. So how should we think about the priorities, M&A, versus CAPEX, dividends, LESH by VEX? What's like the kind of order, and where would you like to do more?

Alright, perfect and then actually 111 follow up for you ever I'm just on capital allocation, how should how should we think about it you talked about the dividend and obviously.

But the Capex is cash was actually pretty strong still at roughly one 2 billion on a year to date basis. So how should we think about the priorities M&A versus.

Capex dividends slash buybacks, what splits like what kind of order and where would you like to do more.

Speaker 4: Okay, that's a very broad question and probably a people want to choose him, especially on the M&A side, but I would say the following

Okay. That's a very broad question probably of equal to want to chip in especially on the M&A side, but I wouldn't say the following.

Speaker 4: We are generating very significant operating test notes.

Where we are generating very significant operating cash flow.

Speaker 4: and the fundraising to very healthy retraction as well. Part of it is this document, part of it.

And it translates into very healthy threat and free cash flow as well part of it is there destocking and bought the FID.

Speaker 4: And to work in capital has gone down another element is that we are really really operating the company very closely

The working capital has gone down and another element is that you are really are really operating the company very closely and then we've got the savings plan that it's all coming together into I believe that there is a very healthy.

Speaker 4: And we've got a saving plan that is all coming together into, I believe, is a very healthy cash flow. You calculate with our capabilities, which we also note in the market.

Cash flow, you'll calculate with our capabilities, which we also known in the market basically cash is not a barrier.

Speaker 4: Basically, Cash is not a barrier.

Speaker 4: to do in the NMNA introduction. So before MNA, I'll address it in a minute. We are...

To do an M&A transaction, so before M&A I'll address it in a minute we are really continuing to do everything we can internally.

Speaker 4: really continue to do everything we can internally in order to translate the performance from the PML to the best cash flow we can get. 2023 is not nearly one, 2024. We have quite a lot of challenges as the whole industry has but hopefully we will be able to project into a healthy financial financial. Let's say cash flow results. Good regards to M&A. Look, in the end of the...

In order to translate the performance on the P&L with the best cash flow, we can we can get.

2023 is not an easy one 2024.

We have collected all the challenges as the whole industry has.

But hopefully we would be able to translate that into a healthy financial let's say cash flow results with regards to M&A.

In the end on M&A.

Speaker 4: for the capability to do it. Also, we need to have relevance for a teaching target.

As the capability to do it that is also a need to add relevant strategic targets.

Speaker 4: that we want, that we are not buying and we said this oftentimes, we are not buying top line, we are not buying...

That said that we want and it's we're not buying and we said this oftentimes we're not buying top line you are not buying EBITDA.

Speaker 4: And what we're buying is if we go, we're trying to expand the horizon of the company, follow the strategy, go specifically in the specialty side of our businesses.

What we're buying is is if we go we're trying to expand the horizon of the company followed the strategy to go specifically in the specialty side of our businesses.

Speaker 4: An opportunity is as they come, I think of this as it is opening remarks that we are making the MN18 in the moral basket, the token of manager that has this and we're looking for opportunity.

And opportunities as they come luxury companies said they said it is a it is opening remarks.

That we all Macy's the M&A theme, even more robust with a top notch manager exits and we're looking for opportunities.

Speaker 3: When it becomes relevant, we would not have finances in Burberry if we do the M&H infection. We want to add something to that. Just to remind everybody that we have dividend policy that's been working well for us, which is distribution of 50% of our adjusted earnings every quarter, and our investors are seeing nice.

When it becomes relevant.

We would not have biomass is imperative to do an M&A transaction that we want to add something to that.

Just.

To remind everybody that we have a dividend policy that's been working well for us which is a distribution of <unk>, 50% of our adjusted earnings every quarter.

Our investors are seeing nice.

Speaker 3: dividend return and that still gives us ample cash to go through a transaction that to any transaction more or less that that we need.

Dividend return and that still gives us ample cash to <unk>.

You go through a transaction that though that to any transaction more or less that are that we need and.

Speaker 3: We were actually close to an M&A pretty lately.

We were actually close to an M&A pretty lately.

Speaker 7: They didn't go through because of valuation. Once again, we showed discipline given that

That didn't go through because of valuation once again, we showed discipline given that.

Speaker 7: At the end of the day, I want to make sure that we do the right transaction. We don't think that the share buyback is the right use for cash in a company that's targeting growth.

At the end of the day, we want to make sure that we do the right transaction, we don't think that the.

Share buyback is the right use for cash and a company that's targeting growth.

Speaker 7: We've also seen our competitors.

We've also seen our competitors are.

Speaker 7: acquire shares of very, very high valuations. So we may be closer than we were in the past, but we're not close yet.

Acquire acquire shares at very very high valuations. So we may be closer than we were in the past, but we're not we're not close yet.

Speaker 7: to actually approving such a program. Unless we see that it takes us a lot more time to go through the MNA that we've planned. MNA has first priority before other things. Also, I believe that a room didn't mention.

To to actually improving such a program unless we see that.

It takes us a lot more time to go through the M&A that will that we planned M&A has first priority before.

Before other things also.

I believe that have run didn't mention that.

Speaker 7: that in terms of capots, we expect capots to be more or less in line with 2023. There'll be somewhat of an addition because of our LSP plan.

In terms of Capex, we expect capex to be more or less in line with the 2023.

There'll be somewhat of an addition, because of our LSP plant.

Speaker 7: which is an important venture for the company's future, for our growth.

Which is a it's an important ventures to the company's future and for growth. So that's going to that's going to require another $100 million or so next year. So we expect the next year's capex to be circa $100 million more than the Capex. This year.

Speaker 7: So that's going to require another $100 million or so next year.

Speaker 7: So we expect the next year's CAPEX to be circa $100 million more than the CAPEX this year. And again, the targeted.

And again, the drilling targeting targeting MSP.

You very much.

Speaker 1: Thank you, Malcolm. Thank you. As a reminder, in order to ask a question, please raise your hands using your mobile or desktop application or press star nine on your telephone keypad and wait for your name to be announced. Our next question today comes from the line of Jill Jackson of BMO. Please go ahead.

Thank you you're welcome.

As a reminder, in order to ask a question. Please raise your hand, using your mobile or desktop application for press star nine on your telephone keypad and wait for your name to be announced.

Our next question today comes from the line of Joel Jackson of BMO. Please go ahead.

Speaker 8: Hey, everyone, this is Joseph Humphur Joel. So first of all, we just wanted to say we are shocked by all the events over the last month and hope that everyone at ICL is doing okay. So with that said for my first question, could you guys just please rank the outlook for the different major potash markets and how those views compare to your thoughts maybe three years ago. And also what are your initial thoughts on global demand for 2024 relative to 2023?

Hey, everyone. This is Joseph on for Joel.

So first of all we just wanted to say we are shocked baldi events over the last month and hope that everyone at ICL is doing okay.

So with that said for my first question could you guys. Just print please rank the outlook for the different major potash markets and how those views compared to your thoughts maybe three years ago.

And also what are your initial thoughts on global demand for 2024 relative to 2023.

Speaker 7: Okay, so first of all, thanks for your kind words. We appreciate it. Here's what means a lot.

Okay. So first of all thanks for your kind words, we appreciated your support means a lot.

Speaker 7: In terms of put ash market, currently we're expecting demand next year to be around 68 to 69 million tons of falling about 60 to 61 million tons last year and about 64 to 65 million tons this year.

In terms of potash market currently we're expecting demand next year to be.

Around 68 to 69 million tonnes of following about 60 to 61 million tons last year and about 64 to 65 million tons. This year.

Speaker 7: In general, in general, inventories are low in most regions.

In general in general our inventories are low in most regions.

Speaker 7: And there's a need for replenishment of inventory. Chinese inventory is relatively, I wouldn't say high, but it's not low. But at the same time, there's a lot of demand coming out of China.

And there is the need for replenishment of inventory.

<unk> inventory is relatively I wouldn't say high but its not low but it sustained signed there's a lot of demand coming out of China. So there's a healthy environment governance for next year as well as you know prices have stabilized.

Speaker 7: So there's a healthy environment for next year as well. As you know, prices are stabilized. And demand is this strong. We're sold out for the year. Of course, like I think everybody else. And we see strong demand in Brazil, strong demand and even rising prices in the US. India, very low inventory. We're not currently going to India in the past couple of months, vehicles thanks to your money for protection at this annual debilitating period where vaccine with digital bil? constantly outative, early colour testing.

And demand is strong we're sold out for a for the year of course like I think everybody else and we see strong demand in Brazil strong demand and even rising prices in the U S.

India very low inventory, we're not currently selling to India in the past couple of months, but.

Speaker 7: But I'm sure the man will be there. There's some...

But I'm sure demand will be there.

There are some.

Speaker 7: Substitute the issues, I guess both in Kodash and in phosphate and

Subsidy subsidy issues I guess, both in potash and phosphate and we'll.

Speaker 7: We'll see how that turns out. In terms of global supply, we still see Belarusian...

We'll see how that turns out in terms of global supply, we still see belorussian.

Speaker 7: Belarusian product being three or four million tons lower than capacity and

Bell Russian product being a three or 4 million tons lower than capacity and.

Speaker 7: Given the current demand, we think it's a healthy environment for next year. Longer term, we don't see any major disruption until potentially BHP comes to the market. They say in 26 it seems a little optimistic to us, but again, we don't have. We don't have detailed information to say anything intelligent about it.

Given the current demand we think it's a healthy environment for next year.

Longer term, we don't see any major disruption until potentially BHP comes to the market are they saying 26, it seems a little optimistic to us, but again, we don't have a.

We don't have detailed information to say anything intelligent about it a disappointment. So that's the demand as the need for replenishment.

Speaker 7: So that's the demand is the need for replenishment. The affordability is higher than average.

The affordability is is higher than a higher than average.

Speaker 7: The overall atmosphere is in most regions, is positive, European put assets still selling in around $400 and even more. We expect a fourth quarter average putash price to be almost at the level of a third quarter. In terms of selling price is nothing really has changed. Just at the beginning of the third quarter, we were still selling it higher prices and some regions.

The the overall atmosphere is in most regions as positive European put assets still selling at around $400.

And even more.

We expect our.

Fourth quarter average put ash price to be almost at the level of our third quarter in terms of selling prices nothing really has changed just at the beginning of the third quarter, we were still selling at higher prices in some regions.

Speaker 7: So that's pretty much what we're seeing at this point in terms of our production. We will be next year expecting 4.7 to 4.8 million tons is what our initial expectation is.

So that's pretty much what we're seeing at this point in terms of our production.

We will be next year expecting a 4.7 to 4.8 million tons is what our initial expectations.

Hope that answered.

Speaker 1: Joel, your line is muted. Please unmute yourself. We're not able to hear you. Hey.

Joel Your line is muted. Please on mute yourself are not able to hear you.

Hey, Yeah, that's it guys. Thank you.

Speaker 1: Thank you very much. You have no further questions. Please proceed.

Thank you very much we have no further questions. Please proceed.

Okay.

Alright, so thanks very much for joining us we appreciate it and.

Speaker 7: Alright, so thanks very much for joining us. We appreciate it and

Speaker 3: hope for the safety of all and looking forward to coming back and recording to you at the end of the next quarter, reporting for the year and by then we'll be able to come out and give you our forecast for next year. Thank you very much. Bye bye. Bye bye. Thank you very much.

Our hope for the safety of all and are looking forward to coming back and according to you at the end of the next quarter on our reporting for the year and by then we'll be able to come out with and give you.

Our forecast for next year.

Very much of a hero thank you very much.

Goodbye.