Sociedad Quimica y Minera de Chile SA Q1 FY2025 earnings call

• Lithium: Achieved highest Q1 sales volumes, prices stable in Q1 but lower expected in Q2; Australia operations progressing, Chile capacity expansions ongoing.
• Iodine: Strong quarter, prices at record, seawater pipeline advancing, investing in operational efficiencies.
• Specialty Plant Nutrition: Healthy sales volume growth, favorable market dynamics across regions.
• Potassium: Volumes lower as strategy to prioritize high value-added products.
• Overall: SQM delivered strong commercial results in Q1 despite complex pricing, long-term fundamentals intact, confident in strategy, capacity, and innovation.

Lithium: Achieved highest first quarter lithium sales volumes in company history, with a 20% year-on-year increase driven by strong demand from electric vehicles in China and Europe and energy storage systems globally. Lithium prices were stable in Q1 2025 but expected to be lower in Q2. Australia's Mt. Holland spodumene concentrate production is progressing, and the Kwinana refinery commissioning is ongoing. Iodine: Strong quarter with prices at record average due to tight supply and steady demand for X-ray contrast media. Seawater pipeline construction is advancing. Specialty Plant Nutrition: Sales volumes grew healthily, with an upward trend in prices early in the year due to strong demand for potassium chloride and supply disruptions. Potassium: Volumes significantly lower than last year as part of strategy to reduce potassium production and focus on higher value-added products.

• Lithium demand globally expected to grow 17% in 2025, but Q2 volume expected similar or slightly lower than Q1.
• CapEx plan to be reviewed in upcoming months; working on lithium production expansions in Chile, Mt. Holland refinery commissioning, and Iodine seawater pipeline.
• Dividend policy: 30% of net income to be distributed, interim dividends not currently considered for Q1.

• Lithium price decline in recent weeks impacting Q2 ASP.
• Geopolitical and trade tensions affecting market conditions.
• Bushfires and equipment availability impacting Mt. Holland production.

Q: You talked about ASP in Q2 being lower than Q1. Do you expect operating cash flow to be breakeven or positive per metric ton in lithium in Q2?

A: We are far from breakeven costs, we are one of the lowest cost producers but not close to breakeven in Q2.

Q: Lithium prices lower than expected, how does this affect capital structure and funding future projects?

A: Company has strong other business lines generating cash, strong balance sheet, and will continue assessing projects, balance sheet not a constraint.

Q: Debate about Codelco JV in Chile, what's the status?

A: Process advancing, CORFO consulting near operations, documents submitted to regulatory authorities, transaction expected in second half of 2025.

Q: Lithium demand growth view, will SQM sales grow 15% Y/Y?

A: Current market conditions with geopolitical tensions haven't updated annual volume forecast, but Q2 volume expected similar or slightly lower than Q1.

Q: China price dynamics, customers fighting back on spot prices below floors?

A: Have over 200 customers worldwide with different price mechanisms, specifics confidential.

Q: CapEx requirements for this year and next, main projects?

A: CapEx plan to be reviewed, working on lithium production expansions in Chile, Mt. Holland refinery commissioning, Iodine seawater pipeline.

Q: Production cost of lithium, Atacama ramp-up and Mt. Holland costs?

A: Working on cost reduction initiatives in Chile, Mt. Holland operation is cash positive even at current prices, confident in long-term returns with attractive cost structure.