Sociedad Química y Minera de Chile S.A. Q3 FY2025 earnings call

• Pricing and Volumes: Favorable lithium pricing environment, strong demand for electric vehicles and energy storage. Delivered highest lithium sales volumes in SQM history, supported by efficient Atacama operations and progressing Australian operation.
• Iodine and Plant Nutrition: Iodine prices high with balanced supply-demand, seawater pipeline over 80% complete, and expansion of iodine production capacity. Fertilizer had stable demand, and Specialty Plant Nutrition grew.
• CapEx: Total CapEx estimated at $2.7 billion over 3 years, focusing on increasing production capacity, preserving low cost, ensuring high quality, and strong sustainability.
• Joint Venture: Received China antitrust approval, looking forward to advancing JV with Codelco by end of year.

Lithium: Delivered highest lithium sales volumes in SQM history, with realized average prices increasing. Chile production expected to be close to 230,000 tons, with 180,000 processed in Chile and 50,000 in China for lithium sulfate production. Australian operation saw significant spodumene sales increase, initiated lithium hydroxide production, and reached record spodumene concentrate sales. Iodine and Plant Nutrition: Results remained strong with iodine prices high, seawater pipeline over 80% complete, and expansion of iodine production capacity with a third operation adding 1,500 tons. Fertilizer had healthy demand, and Specialty Plant Nutrition showed discrete but sustainable growth. International Lithium: Spodumene sales were significant, and ramping up lithium hydroxide production at Kwinana.

• Lithium demand expected to grow, with production in Chile and Australia planned. Chile production expected close to 230,000 tons, and Australia maintaining spodumene production estimates.
• Iodine demand expected to grow next year with more supply from caliche ore.
• CapEx plans outlined with focus on ongoing projects like lithium hydroxide expansion in Chile and iodine production expansion.

• Forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially.
• Market volatility affecting lithium prices.
• Risks associated with JV approval and implementation with Codelco.

Q: Can you talk about what you're seeing right now in lithium demand?

A: Pablo Hernandez mentioned 2025 demand expected to reach over 1.5 million metric tons, with strong growth in EV sales in Europe and BSS shipments. China has significant lead in EV market with 30% year-on-year growth.

Q: What production do you expect in Chile and Australia this year?

A: Carlos Diaz Ortiz said Chile production expected close to 230,000 tons of lithium from Salar de Atacama, with 180,000 processed in Chile and 50,000 in China. Mark Fones said Australia production estimate for spodumene concentrate remains between 150,000 to 170,000 tons at 5.5%, with sales projection for lithium carbonate equivalent increased to 23,000-24,000 tons.

Q: With the CapEx plan lower and lithium prices start to rise, how should we think about the need to raise capital in 2026?

A: Gerardo Illanes said SQM has a strong balance sheet and working on initiatives, so capital raise may not be needed.

Q: Update on progress to closing the deal with Codelco?

A: Ricardo Ramos said received China antitrust approval, and now waiting for internal auditing body in Chile to review agreements, expecting to close JV by end of year.

Q: What's the expectation on iodine supply and demand?

A: Pablo Altimiras said iodine demand expected to grow next year with more supply from caliche ore, but details on price sustainability discussed.