Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Your guidance indicates a 50% reduction in potash production this year. Is this due to growth in SPN and more efficient production at the Salar? Could you become a net buyer of potash in the future? A: Carlos Diaz Ortiz, General Manager Lithium Potassium Division: We have been producing less potash because our focus has shifted to lithium production. The production of potash is directly correlated with brine extraction, which has decreased as we prioritize lithium. This affects potash sales, primarily used for conversion to potassium nitrate.
Q: Given current lithium prices, will you need to raise capital to meet your capital requirements over the next few years? A: Gerardo Illanes, Chief Financial Officer: We have a strong balance sheet that supports our CapEx needs. While we are not planning to raise capital at this moment, we are monitoring the situation closely. In the past, we have adjusted our dividend policy or raised capital when necessary to maintain financial strength.
Q: Is there any possibility of spinning off the iodine business as a separate company? A: Gerardo Illanes, Chief Financial Officer: Iodine is a key component of our portfolio, and we are not planning to spin it off. We are focusing on expanding capacity and leveraging our strong market position in iodine, similar to our strategy in lithium.
Q: Can you elaborate on your optimism about lithium demand despite stable prices? A: Pablo Hernandez, Vice President, Strategy and Development: We expect lithium demand to grow by about 20% in 2025, driven by EV sales and energy storage systems. While supply is also increasing, the expected demand growth supports our optimistic outlook.
Q: Are you underproducing lithium, and can you increase production if demand improves? A: Carlos Diaz Ortiz, General Manager Lithium Potassium Division: We aim to produce as much as possible, with a target of 230,000 metric tonnes this year. We have been expanding capacity and are prepared to increase production if demand warrants it.
Q: What are the next steps for the Codelco JV, and when do you expect it to commence operations? A: Gerardo Illanes, Chief Financial Officer: We are working with Codelco and Corfo to meet the conditions for the joint venture, which we expect to be fulfilled in the second half of this year. The process involves significant coordination and takes time.
Q: Can you provide more details on your 2025 CapEx estimates and maintenance CapEx? A: Gerardo Illanes, Chief Financial Officer: For 2025, we estimate a total CapEx of $1.1 billion, with $550 million for lithium operations in Chile, $200 million abroad, and $350 million for Caliche operations. Maintenance CapEx is around $250 million to $280 million annually.
Q: Why did you achieve such high lithium volumes in the fourth quarter, and is there any stockpiling in China? A: Felipe Smith, Commercial Vice President: China accounted for 80% of our sales in 2024, reflecting strong demand. We do not see any unusual stockpiling or price speculation; the demand is genuine, and we maintain reasonable inventories to support growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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