Q3 2025 Sociedad Quimica y Minera de Chile SA Earnings Call
Only mode. After the speaker's presentation, there will be a question answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again please be advised.
Lucas Ferreira: In other words, when you look at the free cash flow of the company, even though you most likely consolidate the full thing, is there any sort of adjustment effect or cash transfers that we should be aware of when the contract is fully signed? Thank you.
Today's conference is being recorded.
I'd now like to hand, the conference over to your Speaker today, Meghan suitor Investor Relations team. Please go ahead.
Mark Fones: Lucas, Ricardo speaking here. First, you're right in terms that we have to pay a dividend to Codelco during next year. This dividend will be in relation to the tonnage or volume that belongs to Codelco according to the joint venture agreement. We will put in our accounting this value as soon as we finish the agreement. It has been stated very clearly in our financial statements that we have to do it as soon as we have the agreement with Codelco. It is reflected, and you can calculate the number because it's quite clear in the agreement with SQM and Codelco. That is a public agreement.
Good day, and thank you for joining us Qm's, earning conference call for the third quarter of 2025. This call is being recorded and webcast live our earnings press release and accompanying results presentation are available on our website along with a link to the webcast.
Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.
Today's participants include Mr. Ricardo Ramos, Chief Executive Officer, Mr. Hu <unk>.
Chief Financial Officer Mr.
Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
Mr. Carlos.
CEO of the lithium Chile Division.
Mr. Paolo <unk> CEO of the iodine and plant Nutrition Division.
Mr. Mark <unk> CEO of the international lithium division.
Speaker #1: I would now like to hand the conference over to your speaker today, Megan Suder, investor relations team. Please go ahead.
Also joining us today are members of our commercial and business intelligence team Mr. Philippe Smith commercial Vice President of the lithium Chile Division.
Ricardo Ramos: Hello, Lucas. Carlos Díaz again. Respect to your first question, our production in China. Let me tell you first that we expect to produce this year 100,000 metric tons of lithium sulfate. When you convert to lithium carbonate hydroxide, you have to divide by two. It's equivalent to 50,000, around that. Twenty of those are going to be produced in our lithium plant in China, and 30 are going to be produced with third parties. For the coming year, we expect to keep increasing the production in lithium sulfate, and we're studying and evaluating to expand our capacity in China in our own plant. That is our plan.
Speaker #2: Good day, and thank you for joining SQM's earnings conference call for the third quarter of 2025. This call is being recorded and webcast live.
Mr. Pablo as member Vice President of strategy and development of the lithium Chile Division missed.
Speaker #2: Our earnings press release and accompanying results presentation are available on our website along with a link to the webcast. Today's participants include Mr. Ricardo Ramos, Chief Executive Officer; Mr. Gerardo Illanes, Chief Financial Officer; Mr. Carlos Diaz, CEO of the Lithium Chile Division; Mr. Pablo Azdemires, CEO of the Iodine and Plant Nutrition Division; and Mr. Mark Fons, CEO of the International Lithium Division.
Mr. Juan Pablo the loyal commercial Vice President plant nutrition, and specialty product and Mr. Andreas pumping up commercial Vice President of International Lithium Division.
Before we begin please note that statements made during this call regarding our business outlook future economic performance anticipated profitability revenues expenses and other financial items, along with expected cost synergies and product and service line growth are considered forward looking statements.
Speaker #2: Also joining us today are members of our Commercial and Business Intelligence teams. Mr. Felipe Smith, Commercial Vice President of the Lithium Chile Division; Mr. Pablo Hernandez, Vice President of Strategy and Development of the Lithium Chile Division; Mr. Juan Pablo Vellolio, Commercial Vice President, Plant Nutrition and Specialty Products; and Mr. Andres Fontenas, Commercial Vice President of International Lithium Division.
Lucas Ferreira: Perfect. Thank you very much.
Under U S Federal Securities laws.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Ben Isaacson from Scotiabank.
These statements are not historical facts and are subject to risks and uncertainties that could cause actual results to differ materially.
We assume no obligation to update these statements except as required by law.
Lucy Ong: Hi. This is Lucy Ong for Ben, and I have three questions. With the CapEx plant lowered and lithium prices start to rise, how should we think about the need to raise capital in 2026? Is it fair to say that the base case scenario is no capital raise? Thank you.
For full discussion of forward looking statements. Please refer to our earnings press release and presentation.
With that I will now turn the call over to our Chief Executive Officer, Mr. Ricardo Ramos.
Speaker #2: Before we begin, please note that statements made during this call regarding our business outlook, future economic performance, anticipated profitability, revenues, expenses, and other financial items along with expected cost synergies and product and service line growth are considered forward-looking statements under US federal securities laws.
Thank you good morning, everyone and thank you for joining US today, you had in the third quarter, we experienced a more favorable pricing environment for lithium compared with the previous period.
Ricardo Ramos: Hi, Lucy. This is Gerardo. Well, you can see our balance sheet. We have a very strong balance sheet, and we have had always a strong balance sheet. These days, even at the current pricing environment, some of our main KPIs are improving. We are deeply committed to maintaining a strong investment grade. There are several levers we believe can be pulled before pulling the last one, which is raising capital. We're working on several initiatives. As long as we keep on having a strong balance sheet, it may not be needed.
While the market remains highly volatile we're cautiously optimistic our realized average price increase and while we expect this positive trend to continue in the fourth quarter, we remain focused and high quality production being a reliable supplier increasing volumes and continue to advance our cost reduction.
Speaker #2: These statements are not historical facts and are subject to risks and uncertainties that could cause actual results to differ materially. We assume no obligation to update these statements except as required by law.
Initiatives demand demand fundamentals remained strong not only for electric vehicles, but also from energy storage systems was already accounted for more than 20% of global lithium demand.
Speaker #2: For a full discussion of forward-looking statements, please refer to our earnings press release and presentation. With that, I will now turn the call over to our Chief Executive Officer, Mr. Ricardo Ramos.
Lucy Ong: Thank you. For my second question, earlier this year, earlier this week, Quimcon suggested 30% to 40% lithium demand growth next year. Do you have any preliminary thoughts on demand growth next year? In particular, how do you see demand for ESS developing next year? Thank you.
Operationally the quarter was very strong we delivered the highest lithium sales volumes in <unk> history supported by low cost on a strong efficiencies and although.
Speaker #3: Thank you. Good morning, everyone, and thank you for joining us today. During the third quarter, we experienced a more favorable pricing environment for lithium compared with the previous period.
Although we're at to come operations, our Italian operation also continue to continue to progress as planned disposal men's sales increase significantly we initiated lithium hydroxide production and we reached record sales volumes of spodumene concentrate on important milestone from these projects, we expect commercial activity to <unk>.
Speaker #3: Although the market remains highly volatile, we are cautiously optimistic. Our realized average prices increased, and while we expect this positive trend to continue in the fourth quarter, we remain focused on high-quality production being a reliable supplier increasing volumes and continuing to advance our cost reduction initiatives.
Pablo Hernández: Hey, Lucy. Pablo Hernández here. Regarding MFANG, of course, we would need to look into their assumptions, but this looks like a good and optimistic projection for next year. In our case, regarding 2026, we're still assessing demand growth expectations, and we remain relatively conservative with the expectation to reach more than 1.7 million metric tons. The main driver will continue to be the EVs and, as you mentioned, the very strong demand that we've seen on the BSS side.
<unk> robust in the fourth quarter.
Outside the lithium segment performance was also solely in iodine in plant nutrition results remained strong iodine prices continue at high levels with a balanced supply demand environment construction construction of our seawater pipeline is now more than 80% complete even as the ability to bring.
Speaker #3: The demand fundamentals remain strong, not only for electric vehicles but also from energy storage systems, with already account for more than 20% of global lithium demand.
Speaker #3: Operationally, the quarter was very strong, delivering the highest lithium sales volumes in SQM history. Supported by low costs and strong efficiencies in our Atacama operations, our Australian operation also continued to progress as planned. Spodumene sales increased significantly, we initiated lithium hydroxide production, and we reached record sales volumes of spodumene concentrate, marking an important milestone for this project.
Lucy Ong: Perfect. Finally, how much iron-dom production growth do you expect to see in 2026 that is not from SQM? Is it all Chile-based? Thank you.
Additional layer into the market are the unexpected if required we are also expanding our production capacity through the development of a third operationally Maria Elena which will add one 5000 tons of iodine capacity is further strength, our long term supply position and reinforces our reputation.
Ricardo Ramos: Hello. Pablo Pinedas speaking. Well, regarding the third-party production, I mean, with the public information that we have, we believe that most of that will come from Chile, from Calicheor. We don't have the exact figure, but our expectation is that that amount will not surpass the growth of the total demand.
<unk> as a reliable supplier.
Speaker #3: We expect commercial activity to remain robust in the fourth quarter. Outside the lithium segment, performance was also solid. In iodine and plant nutrition, results remain strong.
Fertilizer, we continued to see healthy demand in a stable price across most key markets, our specialty plant nutrition business delivered discrete but sustainable growth compared with last year, both in volumes and revenues to shift to work tailor made solutions on how to get value blend continues to.
Speaker #3: Iodine prices continue at the high levels with a balanced supply-demand environment. Construction of our seawater pipeline is now more than 80% complete, giving us the ability to bring additional iodine to the market earlier than expected if required.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Andrés Castanos Müller from Berenberg.
Our product mix and supports our strategy of allocating products to the most attractive markets in iodine revenues increased 5% year on year with prices already averaging close to $73 per kilogram.
Speaker #3: We are also expanding our iodine production capacity through the development of a third operation in Maria Elena, which will add 1.5 thousand tons of iodine capacity.
Andrés Castanos Müller: Hey, thank you very much. Can you please update us on the progress to close on the deal with Codelco and remind us what the milestones are pending? What happens if it doesn't close by 2025? Is there a long stop close there? What will happen?
X-ray contrast media segment. The largest end use application continues to grow steadily and remains a key driver of long term demand.
Speaker #3: This further strengthens our long-term supply position and reinforces our reputation as a reliable supplier. Fertilizer, we continue to see healthy demand and stable price across most key markets.
We also completed a detailed review of our Capex program for the period 2025, 2027 total Capex is now estimated at $2 7 billion over the three year period. Our plan maintains a focus on increasing production capacity for serving low cost.
Speaker #3: Our specialty plant nutrition business delivered discreet but sustainable growth compared with last year. Both in volumes and revenues, the shift toward tailor-made solutions and higher-value blends continues to improve our product mix and supports our strategy of allocating products to the most attractive markets.
Mark Fones: Sorry. Ricardo speaking. First, as we announced, we closed with an agreement with the antitrust authority in China. That was the last remaining external authorization we needed. Now everything is under review, especially the agreements between SQM and Codelco under the review of Contraloría in Chile. Contraloría is like an internal auditing body of the government that needs to review this kind of contracts. We expect that this review will be positive and will be before the end of the year. There's no second one. We will close this year. That's for sure.
Ensuring high product quality and upholding strong sustainability standards, while some investment decisions has been delay this does not affect our ability to meet the production and sales of adaptive.
Speaker #3: In iodine, revenues increased 5% year on year, with prices averaging close to $73 per kilogram. The X-ray contrast media segment, the largest end-use application, continues to grow steadily and remains a key driver of long-term demand.
It set for each of our divisions finally, as announced last week by <unk> and Codelco will receive approval from China's antitrust authority, we look forward to advancing this joint venture before the end of the year. Thank you.
Speaker #3: We also completed a detailed review of our CAPEX program for the period 2025-2027. Total CAPEX is now estimated at $2.7 billion over the three-year period.
Okay.
Andrés Castanos Müller: Thank you. That's great. Another question, if I may. This would be asking on 2026 expected mix out of Australia. What mix of spodumene and hydroxide do you expect to get out of Australia in 2026? Thank you. If you can indicate something about this. Thank you.
Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again.
Speaker #3: Our plan maintains a focus on increasing production capacity, preserving low-cost, ensuring high product quality, and upholding strong sustainability standards. While some investment decisions have been delayed, this does not affect our ability to meet the production and sales objectives set for each of our divisions.
Please stand by while we compile the Q&A roster.
Mark Fones: Hi, Andrés. This is Mark Fones. We have not yet closed our budget for next year on production for Mount Holland. What I can tell you is that the mine and concentrator at Mount Holland, we expect to be producing at capacity. Of course, we will be expecting half of Mount Holland's capacity in terms of spodumene concentrate. What happens with the ramp-up on the refinery, on the other hand, is that we've announced the first product this year, as you well know, and we will be ramping up production until almost reaching nameplate capacity by the end of 2026. What's the exact amount of that lithium hydroxide, considering all the good work that has been performed by Covalent with farmers and SQM at the refinery, in addition to all the challenges, as any ramp-up in a capital project will happen next year, still remains to be seen.
Our first question comes from the line of Joel Jackson from BMO capital markets.
Good morning, I'll ask my questions one by one thanks for the updates.
Speaker #3: Finally, as announced last week by SQM and Codelco, we received approval from China's antitrust authority. We look forward to advancing this joint venture before the end of the year.
Can you talk about what Youre seeing right now in lithium demand.
Particularly I want to maybe <unk>.
<unk> it seems like inside China, the demand forecast for lithium are a lot higher like for forecast Theyre coming from Chinese forecasters as oppose people outside China in the western World seem to have lower demand forecast do you see this disconnect is it around energy storage in China can you talk about that thanks.
Speaker #3: Thank you.
Speaker #1: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Speaker #1: Please stand by while we compile the Q&A roster. Our first question comes from the line of Joel Jackson from BMO Capital Markets.
Pedro Pablo numbers here so.
So regarding 2025 demand expectations.
Mark Fones: We will let the market inform in due time.
<unk> recently improved since our last earning calls so driven by.
Andrés Castanos Müller: That's very clear. Thank you.
Speaker #4: Good morning. I'll ask my questions one by one. Thanks for the updates. Can you talk about what you're seeing right now in lithium demand?
Stronger than expected <unk> sales, particularly in Europe, and the sharp increase that you mentioned in BFS shipments.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Corinne Blanchard from Deutsche Bank.
We expect demand to reach over one 5 million metric tons. This year.
Speaker #4: Particularly, I want to maybe investigate it seems like inside China, the demand forecast for lithium is a lot higher, like for forecasts, they're coming from Chinese forecasters as opposed to people outside China, in the Western world, seem to have lower demand forecasts.
Representing over 25% growth.
Corinne Blanchard: Hey, good morning. Thank you for taking my question. The first question, I would like to get more colors on the CapEx reduction. You reduced it by about 22% versus what we had last year. I think in the price release, you stated that there will not be an impact on any capacity or project. I'm not sure how to think about it. Maybe if you can help us understand the reduction of CapEx and for which business or segment division it comes to, and maybe any project that has been pushed out of the 2027 range, that would be helpful.
In terms of China continues to maintain a significant lead in the EV market, we used an expected 30% to your percentage year on year growth.
Speaker #4: Do you see this disconnect? Is it around energy storage in China? Can you talk about that?
Presenting more than 60% of the global EV sales.
And regarding the other significant markets in Europe, and this year had a very strong first three quarters with more than 30% year over year growth.
Speaker #4: Thanks. Hey, Joel.
On the U S. They.
Speaker #5: Pablo Hernandez here. So regarding 2025 demand expectations, we have recently improved since our last earning calls. So driven by stronger-than-expected EV sales, particularly in Europe and the sharp increase that you mentioned in BSS shipments.
They still have them slower growth of 10% year over year, while the rest of the world of course.
Had strong numbers, reaching a 40% year over year growth.
Okay.
You on your last quarter talked about Chilean production for lithium to be up about 10% for you and then you have about 10000.
Speaker #5: So we expect demand to reach over 1.5 million metric tons this year. Representing an over 25% growth. In terms of China, it continues to maintain a significant lead in the EV markets.
20000 tons of your share at.
Ricardo Ramos: Hi, Corinne. This is Gerardo. Let me give you a breakdown of what we announced. Well, yesterday, we announced that our CapEx program for the years 2025-2027 will be somewhere around $2.7 billion. The breakdown, it's going to be somewhere around $1.3 billion for the lithium Chilean division. That basically has the main project that they have is to finish the expansion of lithium hydroxide to reach 100,000 metric tons that should be ready at the beginning of next year. The expansion to reach 260,000 metric tons of lithium carbonate capacity in Chile, while we keep on working on initiatives to keep on producing lithium sulfate that is quite relevant, as Carlos was mentioning before.
Not hauling or you still maintain that 10% year over year at about a comma and then should we now expect something closer to $24 25000 tons for the year out of Mcallen.
Speaker #5: We then expected 30% year-on-year growth, representing more than 60% of the global EV sales. And regarding the other significant EV markets, Europe this year had a very strong first three quarters with more than 30% year-over-year growth.
<unk>.
Okay.
Speaker #5: On the US, they still had slower growth of 10% year-over-year, while the rest of the world, of course, had strong numbers reaching 40% year-over-year growth.
Joe This is hit out of adjusted would be clear are you asking about production ourselves.
Well, Dave you.
Speaker #4: Okay. You, on your last quarter, talked about Chilean production for lithium to be up about 10% for you. And then you'd have about 10, excuse me, 20,000 tons for your share at Mount Holland.
You gave guidance last quarter, the arkoma production or sales at the local would be up 10%.
This year and then you'd have 20000 time got him in Holland in this particular quarter release, you said Q4 volume will be similar to Q3 at about Holland, which would imply a more than 20000 tons out of mcallen. So I mean.
Speaker #4: Are you still maintaining that 10% year-over-year at Atacama? And then should we now expect something closer to 24%, 25,000 tons for the year out of Mount Holland?
Ricardo Ramos: For the international lithium division, the total CapEx that is included within this $2.7 billion is approximately $700 million, which includes approximately $400 million between the expansion of Mount Holland and the first steps of ASUR. Of course, both projects are subject to approval with our partners, but that's what is included in this timeframe. Finally, in the iodine and plant nutrition business line, the total CapEx is approximately $800 million. That includes the seawater pipeline that should be ready next year, which is going to be critical to give us flexibility to produce more iodine, and also the Marielena iodine production site that should let us bring additional production or capacity of iodine as of this moment.
What do you expect out of auto <unk> like what production expect in Chile. This year, while production do you expect in Australia that it looks to do like that.
Speaker #4: Ms.
Speaker #4: Ms. Bajamin? Joel, this is Gerardo.
Hello, Joe This is <unk> here.
Speaker #6: Just to be clear, are you asking about production or sales?
While our project in Chile is going through a garden was scheduled we expect to produce this year close to 230000 bodies lithium coming from the fair value of the gamma.
Speaker #4: Well, you gave guidance last quarter that Atacama production or sales at the low could be up 10%. This year. And then you'd have 20,000 tons out of Mount Holland.
Or one ADR voltage per se is presenting to them 50 is going to be participating in China is targeted for our lithium sulfate production that it would have been very successful with that.
Speaker #4: In this particular quarter release, you said Q4 volumes would be similar to Q3 out of Mount Holland. Which would imply more than 20,000 tons out of Mount Holland.
We of course didn't work in there when legacy expansion for next year, then with victory to grow next year, we're still know how their final figure, but I'll continue to work and increase the production.
Speaker #4: So, I mean, maybe what are you expecting out of Atacama? What production do you expect in Chile this year? What production do you expect in Australia this year?
Corinne Blanchard: Thank you. Maybe the second question, coming back to the Codelco agreement, are you still waiting for the local group to be consulted? If so, can you provide an update of where you stand with them? Thank you.
Speaker #4: Let's do it like
Speaker #4: that. Hello, Joel.
But that is related to the lithium production in Chile.
Mhm.
Hi, Joe This is mark <unk> to answer the second part of your question.
Yes.
Speaker #5: This is Carlos Diaz. Well, our production in Chile is going to, according to our schedule, we expect to produce this year close to 230,000.
We maintain our production estimation or forecast for this year, which you may recall. It was between 151000 270000 tonnes of spodumene concentrate at five 5%. So that still holds and regarding the sales projection, which you were referring to of 20000 pounds LTE for this year.
Speaker #5: That is lithium coming from the Salar de Atacama. 180 of those is processed in Chile, and 50 is going to be processed in China starting for our lithium sulfate production.
Ricardo Ramos: No, no, no. Sorry. Regarding the communities, we had the agreement with the communities. That was, I think, a couple of months ago. It was publicly released that we had the final agreement in order to move forward. The only one that I already explained to you is the internal auditing body of the government that is reviewing the agreements between SQM and Codelco. After they finish the review and their approval, we will continue with the joint venture startup. Thank you.
Speaker #5: We have been very successful with that. We're continuing to work on the next expansion for next year, and we expect to grow next year. We still don't have the final figure, but I'll continue working on increasing production.
You're also right, we're increasing that to a range of between 23 and 24000 tons.
Okay. That's perfect and then my last question would be when we look at the different average selling price for lithium you get between Chile, and international and about a three to $4000 a ton discount should we think of that as that's the conversion costs that are basically embedded because you have to pay a toller.
Speaker #5: That is regarding to the lithium production in
Speaker #5: Chile.
Speaker #7: Hi, Joel. This
Speaker #7: is Mark Foles. To answer the second part of your question, yes, we maintain our production estimation and forecast for this year, which you may recall it was between 150,000 to 170,000 tons of spodumene concentrate at 5.5%.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Marcio Farid from Goldman Sachs.
As for Spodumene on an LTE basis, and then would we expect that international price discounts versus the Chilean price realized to decrease across 2026 as you ramp up the Kronos hydroxide conversion plant.
Marcio Farid: Hi, everyone. Thank you. A quick follow-up on my side, please. You mentioned the demand expectations. I think you mentioned 25% growth to 1.5 million tons. I wasn't sure if that was related to 2025 or 2026 because in the presentation, you mentioned 20% expectations for demand growth for 2025. If you can also detail how you're seeing demand for 2026 and maybe provide some more details around ESS demand, which has been calling the market potential for the last few weeks, that would be great. I'll have a few follow-ups as well. Thank you.
Speaker #7: So that still holds. And regarding the sales projection, which you were referring to of 20,000 tons LCE for this year, you're also right. We are increasing that to a range between 23 and 24,000
Hey, Joel this is Andreas Lumpiness regarding prices for this year I mean international lithium division.
Speaker #7: tons. Okay.
Please keep in mind that most of our sales are concentrated on spodumene, so more than 90% of our third quarter sales were explained by spodumene.
Speaker #4: That's perfect. And then my last question would be, when we look at the different average selling price for lithium that you get between Chile and international, it's about a 3 to 4 thousand dollar a ton discount.
And right now we are reporting all of our sales of lithium carbonate equivalents. So in order to compare those prices with the prices that we're getting in the Chilean operation during to take into consideration. The conversion factors and also the refining refining costs, so that would make a more vertical.
Speaker #4: Should we think of that as that's the conversion cost that are basically embedded because you have to pay a toll or for the spodumene and LCE basis?
Ricardo Ramos: Hi, Marcio. This is Gerardo. Give me one second before answering your question. Just to clarify something over the previous answer I gave, I mentioned 260,000 metric tons of lithium carbonate production capacity in Chile, but it refers to 260,000 metric tons of lithium production overall coming from Chile, from lithium chloride, or toll in China from lithium sulfate.
Speaker #4: And then would we expect that international price discount versus the Chilean price realized to decrease across 2026 as you ramp up the Quinana hydroxide conversion plant?
Hum.
Right. So my question is then across 2026 as Coronado ramps up Shouldnt the convert certain York Shouldnt the international price rise realized price on an LTE basis rise closer to the Chilean price as <unk> ramps up next year.
Speaker #7: Hey, Joel, this is Andres Fontanas. Regarding prices for the SQM international lithium division, please keep in mind that most of our sales are concentrated on spodumene, so more than 90% of our third-quarter sales were explained by spodumene.
Hey, Joel this is here out of the lower next year or starting from next quarter, we're going to report the numbers from a Australia off the product is sold so if he says bottoming or or lithium hydroxide you will see the breakdown. So you will not have this confusion.
Pablo Hernández: Hey, Marcio. This is Pablo Hernández. On your question, the information that I previously provided on the 1.5 million metric tons, over 1.5 million metric tons, and the 25% year-over-year growth was related to 2025. As I also mentioned, our expectations for 2026 is that this number is going to be reaching over 1.7 million metric tons. Specifically to BSS, as you well mentioned and has been mentioned during the call, there's been a strong growth in demand from BSS, which we estimate between 40% and 50% year-over-year growth this year. We expect those numbers to remain stable for next year as well.
Speaker #7: And right now, we are reporting all of our sales as lithium carbonate equivalent. So, in order to compare those prices with the prices that we are getting in the Chilean operation, you need to take into consideration the conversion factors and also the refining cost.
Confusion of prices without the commercial costs or not.
Okay. Thank you I'll pass it on.
Thank you one moment for our next question.
Speaker #7: So that would make more fair comparison.
Our next question comes from the line of Lucas Ferreira from JP Morgan.
Speaker #4: Right. So my question is then, across 2026, as Quinana ramps up, shouldn't the international price rise realized price on LCE basis rise closer to the Chilean price as Quinana ramps up
Hi, guys Hope you can hear me well my first question is this too to make sure I understand the part of our China production. So are you already running 50000 tonnes there because I remember the capacity was something around 30000 Thorn Ruth. Thank you totally of another 20000.
Marcio Farid: That's great. Thank you. Maybe another follow-up on the Codelco deal. Can you provide us what are the expectations in terms of you probably need a revision of your license if you go ahead with the plan to produce nearly 260,000 tons overall with Chilean assets? Obviously, in theory, it would be ideal that you defer as much CapEx as possible for when the JV becomes effective in 2030. I'm just thinking if there is any CapEx related to Salar Futuro that you can expect to be spent before 2030, or can you defer that to beyond 2030 when the JV becomes effective? That would be great. Thank you.
Speaker #4: next year? Hey,
Speaker #5: Joel, this is Gerardo. Don't worry. Next year or starting from next quarter, we're going to report the numbers from Australia as the product is sold.
So I was wondering if there is.
More capacity to be used in China next year, if the market remains good as it is right now in terms of prices.
Speaker #5: So if it's spodumene or lithium hydroxide, you will see the breakdown. So you will not have this confusion of prices without the conversion cost or not.
Is China already full capacity.
And the other question I have is also a follow up on the on the JV with Codelco.
Speaker #4: Okay. Thank you. I'll pass it on.
Speaker #1: Thank you. One moment for our next question. Our next question concerns the line of Lucas Ferreira from JP
If I.
Imagine the signing like Ricardo mentioned now by the end of the year, if theres any sort of a retroactive payments that as QM has to do.
Speaker #1: Morgan. Hi, guys.
Speaker #5: Hope you can hear me well. My first question is just to make sure I understand the part of China production. So are you already running 50,000 tons there?
For the year 2025, given that it took longer to sign the contract.
Ricardo Ramos: Okay. First, the agreement will go into effect the same day we sign the agreement. It's going to happen in the next few weeks. I hope so. After we sign the agreement, we sign with Codelco, the agreement is starting. We don't need to wait until 2030. You are right in terms that Salar Futuro is a great and a great, great project, and we are working very hard on it. We expect to submit the environmental study to the authorities and communities during next year. It's going to be a complex project, and probably we will reach the final agreement during 2029, 2030. It means that the initial investment in Salar Futuro, that is a big project and very interesting one, will be 2030 or 2031 starting investment. It means that it will not affect the CapEx in the next three or four years.
So in other words, when you look at the free cash flow of the company, even though you'll be consolidated most likely consolidate the full thing is there any any sort of adjust demand to fact or cash transfers that we should be aware of when the contract is fully fine. Thank you.
Speaker #5: Because I remember the capacity was something around 30,000 tons with potential tolling of another 20,000. So I was wondering if there is more capacity to be used in China next year, if the market remains good as it is right now in terms of prices.
Okay.
Yoga, regardless speaking here.
Speaker #5: Is China already full capacity? And the other question I have is also a follow-up on the JV with Coyoco. If imagine the signing like Ricardo mentioned now by the end of the year, if there is any sort of a retroactive payment that SQM has to do for the year 2025, given that it took long to sign the contract, so in other words, when you look at the free cash flow, the company, even though you consolidate most likely consolidate the full thing, is there any sort of adjustment effect or cash transfers that we should be aware of when the contract is fully signed?
Youre right in terms that we have to pay dividends to kalydeco during next year.
Eastern this dividend will be in relation of the tonnage of volume that belongs to gorilla. According to the joint <unk> joint venture agreement and we will booting in Iowa, our accounting these value as soon as we finish the agreement. That's it has been a stated.
As Dave stated very clearly in our financial statements that we have to do it as soon as we have the agreement with Cologuard.
Ricardo Ramos: It will not affect 2026, 2027, 2028. We will continue with our today plan of projects in the Salar de Atacama as usual. That's why this project will have a significant impact, yes, and a very positive one, starting, I hope, 2030, if not 2031.
And I know you need is reflected and you can calculate the number because it's quite clear you're in agreement with ischemic called Cosmic studies public agreement.
Speaker #5: Thank
Speaker #5: you.
Speaker #7: Lucas,
Speaker #7: Ricardo speaking here. First, you're right in terms that we have to pay a dividend to Coyoco during next year. It's this dividend will be in relation to the tonnage or volume that belongs to Coyoco according to the joint venture agreement.
Hello Luca.
Dan.
Respect to your first question where production in China.
Marcio Farid: That's great. Thank you. Maybe one last one on iodine. Obviously, the market's been strong for a couple of years now. I think you're going to be adding about 5,000 tons of capacity once the new pipeline in Marielena is ready. Can you talk a little bit about the overall supply and demand conditions on iodine, if you expect these prices above $70 per ton or $70 per kilo to remain sustainable? Where are the other areas of supply growth that could put some pressure on prices, if at all, in the next couple of years? Thank you.
Let me tell you the first with respect to peruse this year of about 100000 metric tons of lithium sulfate.
So when you convert to lithium carbonate or hydroxide, you'll have to divide by juice or is agree willing to 50000, a roundup on 20 of those is going to be produces in our <unk> plant in China on therapy is going to be Bruce it with third parties.
Speaker #7: And we will put in an hour accounting this value as soon as we finish the agreement. It has been stated very clearly in our financial statements that we have to do it as soon as we have the agreement with Coyoco.
So we for the mix for the coming year with Vic to keeping increasing the production of lithium sulfate and whether it's dirty and amyloid interest spun our capacity in China in our own plants that is our plan.
Speaker #7: And it is reflected and you can calculate the number because it's quite clear in the agreement with SQM and Coyoco. That is public agreement.
Perfect. Thank you very much.
Ricardo Ramos: Hi, Carlos speaking. Carlos Pimientas speaking. We have been said before, supply and demand for this year is tight because this year, we are not seeing additional supply. Actually, the demand of this year is not growing because of the lack of supply. We believe that demand for the next year will grow in a range of 3%. Why will the demand grow? Because we see more capacity arriving to the market next year. As I said before, it's coming from caliche ore mainly. We believe that we'll have more supply next year.
Speaker #5: Hello, Lucas. Carlos Diaz again. Regarding your first question, our production in China: let me tell you that we expect to produce this year around 100,000 metric tons of lithium sulfate.
Thank you one moment for our next question.
Our next question comes from the line of Ben Isaacson from Scotiabank.
Hi, This is Lucy on for Ben and I have three questions.
Speaker #5: So when you compare to lithium carbonate hydroxide, you have to divide by two. So it's equivalent to 50,000 around that. And 20 of those is going to be produced in our decision plant in China.
Wisdom, capex client lowered and lithium prices start to rise.
So we think about the need to raise capital in 2026.
Speaker #5: And 30 is going to be produced with third parties. So for the next for the coming year, we expect to keep increasing the production in lithium sulfate and we're studying and evaluating to expand our capacity in China and our own plant.
It's fair to say that our base case scenario with no capital raise thank you.
Hydro cdc's hit out of them.
Well you can see our balance sheet, we have a very strong balance sheet and we have had always a strong balance sheet.
Speaker #5: That is our plan. Perfect.
Marcio Farid: Okay, thank you.
Speaker #7: Thank you very much.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Mazahir Mamadli from Rothschild & Company Redburn.
On on these days, even at the current pricing environment. Some of our main kpis are improving.
Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Ben Isaacson from Scotiabank.
We are deeply committed to maintaining a strong investment grade.
And there are several levers we believe can be pool before.
Pablo Hernández: Thank you for taking my questions. My first question is, if we assume that lithium hydroxide and spodumene prices stay kind of at the same level as they are today for 2026, would you expect the standalone profitability of Kwinana conversion to be positive?
Speaker #8: Hi. This is Lucy Ong for Ben. And I have three questions. We still have that plant lowered and lithium prices start to rise. How should we think about the need to raise capital in 2026?
Pulling the last one which is raising capital. So we're working on several initiatives.
As long as we keep on having a strong balance sheet.
It may not be needed.
Okay.
Speaker #8: Is it fair to say that the base case scenario is no capital raise? Thank you.
Thank you and for my second question earlier. This year earlier this week Gangbang suggest that 30% to 40% lithium demand growth next year do you have any preliminary thoughts on demand growth next year and in particular, how do you see demand for it yeah. That's developing next year. Thank you.
Speaker #5: Hi, Lucy. This is Gerardo. Well, you can see our balance sheet. We have a very strong balance sheet. And we have had always a strong balance sheet.
Ricardo Ramos: Hi, Mazahir. This is Mark Fones. Yes, as we've said before, we continue to see the long-term profitability of Kwinana and the Mount Holland project to be positive. We still see ourselves committed with our partners, and we will continue to develop this project. That's the reason also we announced that we expect a final investment decision on the expansion for the mine and concentrator for somewhere next year.
Speaker #5: And on these days, even in the current pricing environment, some of our main KPIs are improving. We are deeply committed to maintaining a strong investment grade.
Hey, Lucy bolt on this year. So regarding them thing of course, we would need to look into our assumptions, but of course this looks like a good an optimistic projection for next year in our case regarding 26, we're still assessing demand growth expectations, and we remain relatively conservative with the expectation to reach more than $1 seven.
Speaker #5: And there are several levers we believe can be pulled before pulling the last one, which is raising capital. So we're working on several initiatives.
Pablo Hernández: Thank you. Maybe a follow-up on the Codelco deal. The 201 kilotons of lithium that's attributable to Codelco, do I understand that correctly, that will be paid as sort of revenue that's attributable to that amount of lithium, or is it gross profit, or is it some other metric?
Speaker #5: And as long as we keep on having a strong balance sheet, it may not be
Million metric tons and the main driver will continue to be the Evs and of course as you mentioned the very strong demand that we've seen on BFS side.
Speaker #5: needed. Thank you.
Speaker #8: And for my second question, earlier this year, earlier this week, Canton suggested 30% to 40% lithium demand growth next year. Do you have any preliminary thoughts on demand growth next year and in particular, how do you see demand for ESS developing next year?
Yeah.
And finally, how much the iron dome production growth do you expect to see in 2026 at a mall from ethanol.
And is this all Chile.
Thank you.
Hello, Paula speaking.
Speaker #8: Thank you.
We added to the third party production.
Speaker #5: Hey, Lucy. Paolo Hernandez here. So regarding MFANG, of course, we would need to look into their assumptions. But of course, this looks like a good and optimistic projection for next year.
I mean, we the public information that we have we believe the most of that will come from Chile from <unk>.
Ricardo Ramos: Hi, Mazahir. This is Gerardo. Yeah, the amount that is to be paid to Codelco is paid as a function of a certain amount of tonnage per year, which is 33.5, and it's paid as a dividend.
Speaker #5: In our case, regarding 2026, we're still assessing demand growth expectations. And we remain relatively conservative. With the expectation to reach more than 1.7 million metric tons, and the main driver will continue to be the EVs and, of course, as you mentioned, the very strong demand that we've seen on BSS side.
We don't have this figure, but our expectation is that that amount will not robust the growth of the total demand.
Yeah.
Okay.
Pablo Hernández: Yeah, I just want to clarify. Is it going to be the revenue that's derived from 33.5 kilotons or gross profit that's derived from that amount of lithium?
Thank you one moment for our next question.
Our next question comes from the line of Andreas <unk> bundles Moeller from Baron Berg.
Speaker #8: finally, how much iron production growth do you expect to see in 2026 that is not from SQM? And is it all chili-based? Thank you.
Hey, Thank you very much can you. Please just update us on the on the progress to close on the deal with Codelco and remind us what the milestones.
Ricardo Ramos: It's a profitability that we get from this tonnage, but the exact calculation and the exact way of how you can get to the number is described in the contracts that are publicly available on our website.
Speaker #5: Hello. Paolo Timiras speaking. Well, regarding to the third-party production, I mean, with the public information that we have, we believe that most of that will come from Chile, from Calicheor.
Our pending.
What happens if it doesn't close by 2025 is there a longest up close there what will happen.
Pablo Hernández: Okay, thank you.
Speaker #5: And we don't have the exact figure, but our expectation is that that amount will not surpass the growth of the total.
Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Sorry, regardless speaking it first is we are we are.
Speaker #5: demand. Thank
As we announced we closed with an agreement with the.
The antitrust authority in China that was a loss.
Speaker #1: you. One moment for our next question. Our next question comes from the line of Andres Castano's Mueller from
The remaining external alpha.
The recession, we needed and now everything is under review, especially the agreements between core for oncological under the reveal of Candelaria and <unk> I can tell you is like an internal auditing body of the government that needs to review these kind of contracts.
Speaker #1: Berenberg. Hey, thank
Speaker #9: you very much. Can you please update us on the progress to closing the deal with Coyoco and remind us what the milestones are pending?
We expect that this review will be positive it will be before the end of the year.
Speaker #9: What happens if it doesn't close by 2025? Is there a long-stop close there? What will happen?
There's no second one we will close this year that's for sure.
Thank you that's great and then another question if I may this would be asking on 2026 expected mix out of Australia. What makes all for spodumene on hydroxide, you expect to get out of Australia in 2026. Thank you.
Speaker #7: Sorry, Ricardo speaking. First, we are, as we announced, closing with an agreement with the antitrust authority in China, which was the last remaining external authorization we needed.
If you could indicate something about this thank you.
Hi, Andrew this is mark fones.
Speaker #7: And now everything is under review, especially the agreements between Corfo and Coyoco under the review of Contraloría in Chile. Contraloría is like an internal auditing body of the government that needs to review this kind of contracts.
We have not yet closed our budget for next year on production for on Harlan What I can tell you is that the minor concentrated on longhorn, we expect to be producing at capacity.
Of course, we will be expecting half of them on <unk> capacity in terms of spodumene concentrate.
Speaker #7: We expect that this review will be positive and will be before the end of the year. There's no second plan. We will close this year.
What happens with the ramp up on the refinery on their hand and is that we've announced the first book.
Speaker #7: That's for
Speaker #7: sure. Thank you.
Speaker #9: That's great. And another question, if I may. This would be asking on 2026 expected mix out of Australia. What mix of spodumene and hydroxide do you expect to get out of Australia in 2026?
This year as you will know and we will be ramping up production until almost reaching nameplate capacity by the end of 2026.
What's the exact amount of that lithium hydroxide considering.
The good work that has been performing covalent with with pharma Senneff Jim at the refinery. In addition to all the challenges of any ramp up in our capital predict it will happen next year still remains to be seen.
Speaker #9: Thank you. If you can indicate something about this. Thank you.
Speaker #5: Hi, Andres. This is Mark Foulkes. We have not yet closed our budget for next year on production for on Holland. What I can tell you is that the mine and concentrator I'm on Holland, we expect to be producing at capacity.
And we will let the marketing forming in due time.
Very clear thank you.
Sure.
Thank you one moment for our next question.
Speaker #5: So, of course, we will be expecting half of the Holland's capacity in terms of spodumene concentrate. What happens with the ramp-up on the refinery, on the other hand, is that we've announced the first product this year.
Our next question comes from the line of Corin Blanchard from Deutsche Bank.
Hey, good morning, and thank you for taking my question.
Speaker #5: As you well know, and we will be ramping up production until almost reaching nameplate capacity by the end of 2026. What's the exact amount of that lithium hydroxide considering all the good work that has been performing covalent with farmers and SQM at the refinery in addition to all the challenges, as any ramp-up in a capital project will happen next year, still remains to be seen.
First question I would like to get last quarter on the Capex reduction you reduce it by about 22% vis vis what we had last year.
But I think in the stat in the price for any of you stated that.
You would not have an impact on navy capacity of project. So I'm not sure how to think about it. So maybe if you can help US understand our addition of capex and for which business.
Speaker #5: And we will let the market inform in due
Speaker #5: time. That's very clear.
Speaker #9: Thank
Speaker #9: you. Thank
Business segment Division, he come to and maybe any protein that I'd been flushed out of the 2027.
Speaker #1: you. One moment for our next question. Our next question comes from the line of Corinne Blanchard from Deutsche
Arrange network will have fun.
Speaker #1: Bank. Hey, good morning.
Hi, Brian This is get out of a let me let me give you a breakdown of what we whether we announce well yesterday, we announced that our Capex program for the years 'twenty five 'twenty seven will be somewhere around $2 7 billion.
Speaker #8: Thank you for taking my question. The first question I would like to get more colors on the CapEx reduction you reduced by about 22% versus what we had last year.
The breakdown, it's going to be somewhere around $1 3 billion order for the lithium Julianne division.
Speaker #8: But I think in the price release, you stated that there will not be as you will not have an impact on any capacity or project.
That basically has the main projects that they have is to finish the expansion of lithium hydroxide to reach 100000 metric does that should be ready at the beginning of next year.
Speaker #8: So I'm not sure how to think about it. So maybe if you can help us understand the reduction of CapEx and for which business or segment division it comes to and maybe any project that has been pushed out of that 2027 range that would be helpful.
Then the expansion to reach 260000 metric tons of lithium carbonate capacity in Chile, while we keep on working on initiatives to keep on producing lithium sulfate that is quite relevant as Carlos was mentioning before.
Speaker #5: Hi, Corinne. This is Gerardo. Let me give you a breakdown of what we announced. Well, yesterday, we announced that our CapEx program for the years '25, '27 will be somewhere around 2.7 billion dollars.
Then.
For lithium for the international lithium division.
Total capex that is included within this $2 7 billion approximately $700 million, which includes approximately $400 million between the expansion of more colon.
Speaker #5: The breakdown, it's going to be somewhere around 1.3 billion dollars for the lithium Chilean division. That basically has the main projects that they have is to finish the expansion of lithium hydroxide to reach 100,000 metric tons.
The first steps of the.
Sure of course, both projects are subject to approval.
With our partners.
But that's the that's what is included in D. C. In this timeframe and finally in <unk> on plant nutrition business line. The total capex is approximately $800 million.
Speaker #5: That should be ready at the beginning of next year. Then the expansion to reach 260,000 metric tons of lithium carbonate capacity in Chile. While we keep on working on initiatives to continue producing lithium sulfate, which is quite relevant, as Carlos was mentioning before.
That includes the seawater pipeline that should be ready next year that is going to be critical to give us flexibility to produce more iron.
And also the Maria Elena I own production side that should let us bring additional production of or capacity of a fireeye as of this moment.
Speaker #5: Then for the international lithium division, the total CapEx that is included within this 2.7 billion is approximately 700 million dollars, which includes approximately 400 million dollars between the expansion of more Holland and the first steps of Assure.
Thank you.
Maybe the second question coming back to the Codelco agreement.
Speaker #5: Of course, both projects are subject to approval with our partners. But that's what is included in this time frame. And finally, in the ION and plant nutrition business line, the total CapEx is approximately 800 million dollars.
I have two waiting for.
The low cat and cope to be constantly and if so can you provide an update of where you stand with them. Thank you.
Speaker #5: That includes the seawater pipeline that should be ready next year. That is going to be critical to give us flexibility to produce more ION.
No no no it's sorry.
Regarding the communities we had agreement with the communities that was I think a couple of months ago. It was publicly released that we had the final agreement in order to move forward.
Speaker #5: And also, the Maria Elena ION production site that should let us bring additional production of our capacity of ION. As of this moment.
And the only one that has already explained to you is the internal auditing body of the government that is reviewing the agreements between code for an uncle they'll go.
Speaker #8: Thank you. Maybe the second question coming back to the Coyoco agreement. Are you still waiting for the local group to be consulted? And if so, can you provide an update of where you stand with them?
After they finish their review under approval, we will continue with the joint venture.
Start up thank you.
Yeah.
Thank you one moment for our next question.
Our next question comes from the line of Marciel forage from Goldman Sachs.
Speaker #8: Thank
Speaker #8: you. No, no,
Okay. Thank you.
Speaker #5: no. Sorry. Regarding the communities, we had the agreement with the communities that was, I think, a couple of months ago. It was publicly released that we had the final agreement in order to move forward.
A quick follow ups on my side. Please you mentioned the demand expectations I think commercial 25% growth to 1.5 million phones I wasn't sure if that was related to 2025 or 2026, because in the presentation, you mentioned, 20% expectations fundamentally grow form 10 as far as them. If you can also detail how you're seeing demand.
Speaker #5: And the only one that has already explained to you is the internal auditing body of the government that is reviewing the agreements between Corfo and Coyoco.
14, we can see some also maybe provide some more details around yes, as demand, which has been calling the market potential for the last few weeks would be great and then I'll hop out.
Speaker #5: And after they finish the review and their approval, we will continue with the joint venture. Startup. Thank
Speaker #5: you. Thank
Actual follow up that's helpful. Thank you.
Speaker #1: you. One moment for our next question. Our next question comes from the line of Marcio Farid from Goldman
Hi, Marci this is get out of or give me one second before answering your question on just to clarify something.
Over the previous answer I gave.
Speaker #1: Sachs. Hi, everyone.
Mentioned 260000 metric tons of lithium production. They can cover a production capacity in Chile, but it refers to the 600, I'm, sorry, 260000 metric tons of lithium production.
Speaker #3: Thank you. A quick follow-up on my side, please. You mentioned the demand expectations. I think you mentioned 25% growth to 1.5 million tons. I wasn't sure if that was related to 2025 or 2026 because in the presentation, you mentioned 20% expectation for demand growth or 25.
Overall coming from Chile.
From lithium chloride or at all in China from new consulting.
Okay.
Speaker #3: And if you can also detail how you're seeing demand for 2026. And also maybe provide some more details around ESS demand, which has been calling the market potential for the last few weeks would be great.
Hmm.
Hey, my cirrhosis borrowing under so on your question the information that I previously provided on the 1.5 million metric tons or over one third of our movements stance on the 25% year over year growth that was related to 2025 and as I also mentioned our expectations for 2026 is as this number is going to be reached.
Speaker #3: And then I'll have a few follow-ups as well. Thank you.
Speaker #5: Hi, Marcio. This is Gerardo. Give me one second before answering your question. And just to clarify something, over the previous answer I gave, I mentioned 260,000 metric tons of lithium carbonate production capacity in Chile.
<unk> over one 7 million metric tons, specifically to BFS.
As you well mentioned I think it's been mentioned during the call. There has been a strong growth in demand from BFS, which we estimate over between 40 and 50% year over year growth. This year and we expect those numbers to remain stable for for next year as well.
Speaker #5: But it refers to 600 and sorry, 260,000 metric tons of lithium production overall coming from Chile from lithium chloride or toll in China from lithium
Yeah.
That's great. Thank you.
Speaker #5: sulfate. Hey, Marcio.
And then maybe another follow up on the Codell code you can can you provide us what are the expectations in terms of.
Speaker #3: This is Paolo Hernandez. So on your question, the information that I previously provided on the 1.5 million metric tons over 1.5 million metric tons and the 25% year-to-year growth, that was related to 2025.
It probably needs a revision of your offer license issue go ahead with the plan to produce.
Speaker #3: And as I also mentioned, our expectations for 2026 is that this number is going to be reaching over 1.7 million metric tons. Specifically, to BSS, as you well mentioned, and has been mentioned during the call, there's been a strong growth in demand from BSS, which we estimate to be over 40% to 50% year-to-year growth this year.
Nearly 250000 tons overall with Chilean assets.
Although the theory it would be ideal.
For as much capex as possible for when did you view becomes effective in 2030, so I'm just thinking if there is any.
Capex related to sell off a tool that we can expect to be spent before 'twenty Tyler can we before that or beyond.
Speaker #3: And we expect those numbers to remain stable for next year as well. That's great. Thank you. And maybe another follow-up on the Coyoco deal.
331 degree becomes effective that would be great. Thank you.
First the agreement will go into effect. The same day, we signed the agreement that is going to happen in the next few weeks.
Speaker #3: Can you provide us what are the expectations in terms of you probably need a revision of your license if you go ahead with the plan to produce nearly 260,000 tons overall with Chilean assets?
Hope so on and after we signed the agreement we signed with Golar uncle that humans. Starting is no. We don't we need to wait until 2030, Budd you are riding trims that select for duties are great and a great great project and we are working very hard on it we expect to submit the environmental study two.
Speaker #3: Obviously, in theory, it would be ideal that you defer as much CapEx as possible for when the GV becomes effective in 2030. So I'm just thinking if there is any CapEx related to Salar Futuro that you can expect to be spent before 2030, or can you defer that to beyond 2030 when the GV becomes effective?
<unk> three D Sun communities and.
During next year.
It's going to be a complex project probably will reach the final agreement. During 2029 2013 means that the initial investment in <unk>. There is a big project can very interesting one will be 2030 or 2031 is starting investment it means that it will not affect the capex in the next three or four years. He was another factor.
Speaker #3: That would be great. Thank you.
Speaker #5: Okay. First, the agreement will go into effect the same day we sign the agreement. That is, it's going to happen in the next few weeks.
26, 27, 28, and we will continue with Huawei today plan of projects in the cerrado that come up as usual.
Speaker #5: I hope so. And after we sign the agreement, we sign with Coyoco, the agreement is starting. We don't need to wait until 2030. But you are right in terms that Salar Futuro is a great and a great, great project.
That's why this project will have a significant impact yes on a very positive one is starting I hope stood at 2030 or if not 2031.
Speaker #5: And we are working very hard on it. We expect to submit the environmental study to the authorities and communities. During next year, it's going to be a complex project.
That's great. Thank you and maybe one last one on <unk>, obviously markets being strong for a couple of years now.
Speaker #5: And probably we will reach the final agreement during 2029 or 2030. This means that the initial investment in Salar Futuro, which is a big and very interesting project, will be in 2030 or 2031.
I think youre going to be adding about.
About 5000 tons of capacity once the New Park line and Maria Lazarus is ready.
Can you talk a little bit about the overall supply and demand conditions on iodine. If you expect this price of above $70 per ton or $700 per kilo.
Speaker #5: It means that it will not affect the CapEx in the next three or four years. It will not affect 2026, 2027, 2028. And we will continue with our today plan of projects in the Salar de Atacama, as usual.
We remain sustainable where are the other areas of supply growth at <unk>.
That could put some pressure on prices if at all in the next couple of years. Thank you.
Speaker #5: That's why this project will have a significant impact, yes, and are very positive one, starting I hope 2030, if not 2031.
Yes.
Hi bonus peak productivity does this begin.
As we have been said before.
Speaker #3: That's great. Thank you. And maybe one last one on iodine. Obviously, markets have been strong for a couple of years now, and I think you're going to be adding about 5,000 tons of capacity once the new pipeline and marine land are ready.
So play on the matter for this year.
The study because we this year, we are not seeing additionally supply.
Actually the remainder of this year is not growing because of the lack of supply we believe that demand for the next few years next year will grow.
Speaker #3: So can you talk a little bit about the overall supply and demand conditions on IODINE, if you expect these prices above $70 per ton or $70 per kilo?
In the range of 3%.
And why the demand will grow because we see more capacity.
In arriving to the market next year as I said before it is coming from caliche or mainly.
Speaker #3: To remain sustainable, where are the other areas of supply growth that could put some pressure on prices, if at all, in the next couple of years?
So we believe that we have more supply next year.
Speaker #3: Thank you.
Thank you Lee.
Thank you one moment for our next question.
Speaker #5: Hi, Paolo speaking. Paolo, do you need us to speak in? Was as we have been said before, supply and demand for this year is tight because this year we are not seeing additional supply.
Our next question comes from the line of Mazda here, My modeling from Rothschild and company Redburn.
Thank you for taking my questions.
Speaker #5: Actually, the demand this year is not growing because of the lack of supply. We believe that the demand for the next year will grow in a range of 3%.
So my first question is if we assume that lithium hydroxide spodumene prices stay kind of at the same level as they are today for 2026 would you expect the standalone profitability of green on the conversion to be positive.
Speaker #5: And why the demand will grow? Because we see more capacity arriving to the market next year. As I said before, it's coming from Caliche or mainly.
Speaker #5: So we believe that we'll have more supply next
Hi, Mark this is mark fones.
Yes, we have said before we continue to see the long term profitability of quinine, and Omaha and predict to be positive.
Speaker #3: Okay. year. you.
Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Mazahir Mamadli from Rothschild and Company, Redburn.
We still see ourselves committed with our partners and we will continue to develop this spring and that's the reason also we announced.
We expect a final investment decision on the expansion for the mine and concentrator.
Speaker #3: Thank you for taking my questions. So my first question is, if we assume that lithium hydroxide and spodumene prices stay kind of at the same level as they are today, for 2026, would you expect the standalone profitability of Quinana conversion to be positive?
For somewhere next year.
Okay. Thank you.
And.
Maybe a follow up on the Codelco deal. So the 201 kilo tons of lithium that's attributable to codelco.
Do I understand that correctly that will be paid.
Sort of revenue that's attributable to that amount of lithium or is it gross profit or is it some other metric.
Speaker #5: Hi, Mazahir. This is Mark Falls. Yes, I will said before, we continue to see the long-term profitability of Quinana and the monoline project to be positive.
Speaker #5: And we still see ourselves committed with our partners. And we will continue to develop this project. And that's the reason also. We announced that we expect a final investment decision on the expansion for the mine and concentrator.
I'm also here as you see it out a little.
Yes.
The amount that is.
To be paid to codelco.
Is paid as a function of certain.
Speaker #5: For somewhere next year.
Certain amount of tonnage for you, which is 33.5 and it's paid off as a dividend.
Speaker #3: Okay. Thank you. And maybe a follow-up on the Coyoco deal. So the 201 kilotons of lithium that's attributable to Coyoco, do I understand that correctly that will be paid as sort of revenue that's attributable to that amount of lithium, or is it gross profit, or is it some other metric?
Alright, yes.
I'm just I just want to.
Clarify is it.
Going to be the revenue that's.
Derived from 33 and a half.
Kilotons or gross profit that's derived from that amount of lithium.
It is the profitability that we get from this tonnage, but the exact calculation on this exciting way of how you can get to the number it's a describing the contracts that are publicly.
Speaker #5: Hi, Mazahir. This is Gerardo. Yeah, the amount that is to be paid to Coyoco is paid as a function of a certain amount of tonnage per year, which is 33.5.
Available on our website.
Okay. Thank you.
Yes.
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Speaker #5: And it's paid as a dividend.
Speaker #3: Yeah. I'm just want to clarify, is it going to be the revenue that's derived from 33.5 kilotons or gross profit that's derived from that amount of lithium?
Speaker #5: It's a profitability that we get from this tonnage. But the exact calculation and the exact way of how you can get to the number, it's described in the contracts that are publicly available on our website.
Speaker #3: you.