Sociedad Quimica y Minera de Chile SA Q3 FY2024 earnings call

• Specialty Plant Nutrition: Solid dynamics with market size recovery, volumes up >20% YOY, revenues up >12%, stable prices midterm. - Iodine: Subtle price increase since年初, strong demand and limited supply, projects to increase efficiency, seawater pipeline on schedule. - Lithium: First revenue from Mt. Holland, first spodumene concentrate bidding event, refinery commissioning to start mid-2025, sales volumes up 18% YOY, prices down 24% QoQ due to oversupply but demand growing strongly.

Specialty Plant Nutrition: Volumes grew more than 20% year-on-year, increasing revenues by more than 12% despite lower prices during the period. Iodine: Subtle but continued price increase since the beginning of the year, strong demand growth and limited supply could lead to slight price increases in coming quarters. Lithium: First revenue from Mt. Holland, sales volumes of more than 51,000 metric tons of lithium products with 18% year-on-year growth, prices down 24% QoQ due to temporary oversupply but demand continues to grow strongly.

• Lithium: Sales guidance 190,000-195,000 tons for 2024, no curtailment planned for 2025, expected lithium demand to grow strongly with EV market driving demand. - Iodine: Demand expected to grow 7% in 2024, moderated growth next year, new supply in 2025-2026 but unlikely to meet demand.

• SEC investigation: Request for info and subpoena regarding FCPA and anticorruption laws, internal review ongoing. - Competitor actions: Australian competitors cutting capacity, potential impact on profitability.

Q: Joel Jackson asked about whether SQM needs to cut share or volume to support the market and guidance.

A: Felipe Smith said SQM is expecting to reach sales volumes close to 195,000 tons in 2024 and no curtailment planned for 2025.

Q: Joel Jackson asked about Australia operations, Mt. Holland sales, guidance, and conversion plant profitability.

A: Mark Fones said Mt. Holland 2024 production range is 110,000-130,000 tons of spodumene concentrate, tolling in China, and confident in refinery project.

Q: Ben Isaacson asked about lithium outlook for 2025 and iodine market.

A: Pablo Hernandez said lithium demand strong, expected to surpass 1.1 million tons in 2024, and Juan Pablo Bellolio said iodine market size ~38-39k tons, growth 7% in 2024, new supply in 2025-2026.

Q: Corinne Blanchard asked about Codelco agreement and SEC investigation.

A: Ricardo Ramos said Codelco agreement moving as expected, Gerardo Illanes said SEC investigation is nonpublic fact finding, internal review ongoing.

Q: Gabriel Simões asked about volumes and costs.

A: Carlos Diaz and Mark Fones provided details on production volumes and costs, Mark Fones on Mt. Holland production.

Q: César Pérez-Novoa asked about lithium sales volumes and iodine inventory.

A: Mark Fones said lithium sales volumes in third quarter, Pablo Altimiras said iodine demand growth and inventory usage.