MOS - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to The Mosaic Company's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Jason Tremblay. Please go ahead.

Jason Tremblay

to quarter welcome earnings and you, our XXXX fourth call. Thank Bruce will and be comments Bodine, provided Opening by President Officer. Chief Executive Jenny Commercial, of update. Vice cover Executive market will the Wang, then President and and Luciano Pires, Officer, financial Executive President capital Siani Chief progress. allocation Vice will Financial review results

then floor will for We questions. open the

management's not as may statements results. from about statements are future our Exchange today's and operating with the those differ making in Actual published We in conference are significant Factors Commission. results The to, will forward-looking from subject be expectations results statements risks reports limited filed call. are statements beliefs forward-looking release based materially date and in included that actual and on could They and and cause the this materially of during include, Securities and but our results. are differ to to financial press projected today uncertainties.

financial We will also be non-GAAP presenting measures. certain

and performance important press information Our measures. non-GAAP data release these on contain also

to the call Bruce. I'd turn Now over to like

Bruce Bodine

like morning, I'd joining on on for Mosaic's we're to long We've him thanks start by his team. for call our our have CFO. known call. Luciano Mosaic's as his through Board, and service time a first welcoming and Good him to thrilled to

taking We're a different approach this quarter.

with your an for performance start business part questions. During take and you I'll the strategic on strategy. and performance our After high-level on today. then key followed our our progress, more this that, Wang by our capital context financial of give update first cover Luciano messages I'll markets, Jenny will call, we'll allocation providing

in and and constructive ag XXXX. have we markets fertilizer improved, agriculture First, expect fundamentals

and we good shape. this assets progress, are operational to Second, capital from And positioned is the and is well at shed year. finally, noncore markets to reallocate work taking benefit strategic our business and Mosaic, making

performance EBITDA adjusted performance million, stripping We despite prices $XXX net in underlying came fourth prices low million. income numbers, potash and the was saw quarter cover excellent strong solid in and To and $XXX phosphate at Brazil. margins, business

In continues Let's complex, strong among efficient, generate we the Potash, across cash the talk and and world's segments optimize commodity the flow the potash continuing largest is to most mine are it. cycle, about which first. to Esterhazy the

potash XXXX. capacity operating Our drive to electrical are costs We in XXX% issues third Belle and experienced the production Plaine will and milling in mine rate now, resolved down. continue full us record the delivered and we hoisting quarter, let which operating we at

we a XXX,XXX us clearly to and to to every the Last tonnes. It And year, that. investing produce do project capacity we tonne additional provide to tonnes project Hydrofloat benefits we're an we capacity compaction year. finished of by complete XXX,XXX our can to this per year, increase at expect Esterhazy, just

We of expect caused crop trends and in Belarus prices and Russia. combined China, out potash coming Laos, reductions demand to remain supply recent the news strong by given with affordability

uncertainty around accounting we There's affordable. closely. expect could geopolitics we're impact tariffs a remain There situation of of prices Canadian potash markets. quite that a Therefore, potash lot no Even is demand in bit and the destruction. going tariffs, that watching major will impact on for

on for these give you about detail The little global potash potential resolution in The impact to little supply. of very have in a supply. the Belarus the sanctions, will impact Jenny Ukraine goes few would war very dynamics same minutes. more

competitive I several end very has tight demand remains rates. historic have our in years long-term no for and late and levels led we last to locked above remains of supply supply last sight. X year, supply In the strong, supply. that margins note remaining Phosphate, ammonia past have at signed stripping prices so should which we contracts secured significantly up the We with reliable

Fourth top Milton. was our Most lower the storm-related levels downtime quarter. a of historical our a than quarter and production remains expected from to was phosphate U.S. challenging production recovery in Helene Restoring hurricanes fourth priority. because of

tonnes to finished to We've reliability often million have to to Early accelerating and levels said is improve Louisiana. year. million at by we to are this address have we production the and X.X work year. we Overall, the and more expect and not improve X.X Florida the pathway spending Wales, the turnarounds capital higher of and issues that we year, this expect up. straight Bartow end, reach New to middle volumes throughout be these for to To do asset our work year the in

business in well and very with credit market is even the Our performing headwinds. Brazil

quarter Mosaic business of fourth for Fertilizantes adjusted underlying Our million $XX EBITDA strong segment the performance. shows

margins Our are in Brazil healthy.

the the end at our trended was in margin range of the production fourth high distribution quarter. tonne Our down annual cost per normalized and

XXXX, dynamics in feel business With in ahead we Mosaic's market constructive about see the Brazil. we good

by solid I'll operating reduction progress supported leave our but is Our performance cost details toward cost the good making discipline. We're targets, good to Luciano.

assets of returns. strategic I'll that us better told to of capital that better you work before Now owners our basis the progress. redeploy we're returns for capital. their facilities on and of on We've The find are about analyzing underperforming talk our outcomes allowing

gain transaction. already $XXX possibility. of Brazil the gave us value announced long-term billion including Patos transparent conclusion redeployment as as our for Ma'aden in pending of investment, the site a the about sale as and a our de Minas That is several $X.X today, deals, deal of capital a which million in We've well

strategic works, for other in New our alternatives potash the mine Carlsbad, of moves Mexico. in pursuit including our have We

making our stronger, and core portfolio strengths areas. We're investing also in focused new just on our in business not in we're our growing

to and mentioned million in addition almost new the project I blending In is plant Palmeirante, our compaction tonne X earlier, Hydrofloat Brazil finished.

New expect applied and join our on Day revenues have a a growth person York were We'll on at We is in lot more similar in Biosciences accelerating. XX. Mosaic XXXX. on doubled rate which in we growth hope or engine, March acreage us you'll I products newest to our whether say online. Our and XXXX, Mosaic Biosciences, Analyst in

ask Jenny? to give I'll thoughts agriculture markets. you her fertilizer on Now and Jenny

Jenny Wang

Thank you, Bruce.

a for to XXXX agriculture be expect good commodities. year We

start with crops. Let's

Fundamentals September. lower are rising has strong since to to for in most crops leading turn XXXX around Strong ratio, the demand world. in much corn which prices led of corn last is a global expectations stock-to-yields

Soybean off set prices also year. moved their last lows have

and for seed in market protein strong demand are Animal expected and very regions. oilseeds continue grain product drive robust remained to to

a time some In now. addition, for palm high oil prices have in range stayed

the to have in yield incentive farmers financial all, world's XXXX. strong in All maximize

course, that and Of bodes potash phosphate well for demand.

believe production restrictions, margins by another remain With Higher ongoing oilseeds the next phosphate. fertilizer in demand will remain global to And over including for production be standards. years for the new remember, pool the phosphate production we phosphate and to phosphate. rising tight increase biofuel on into coming battery affordable. use the market expect Chinese will combination historical stripping more remain same phosphate phosphate mean created prices with elevated is First, We limited very with export demand. supply time, and has demand factors, driven few At rising by strong. crop prices of and a of

sulfur come are term, was attractive last March even below ease. And near margins, matter anticipate price a stripping increasing, of fact, from ammonia will that to expected prices we remain spot at month. the $XX with ammonia they Regarding as prices as to concluded the in

China. strong been demand and global potash, in expected strong remain XX and oil in shipment with as mind, for just XX million to while volume years year in and Palm demand Malaysia the shipment continue. XX topping preceding to consecutive has Indonesia, million X the supporting million Bear Bruce tonnes, another mentioned, XXXX are after and solid In years Chinese record X tonnes expect application that potash we averaged XXXX, is prices in respectively. in

and demand has second corn through the very Brazil have its in soybean potash inventory season. seen the addition, In much through we worked crop, of for strong

shipments XXXX for another to set As record we a potash. result, expect

is more they Belaruskali and produce lower would that this XXXX, in and in guiding last likely X outputs largest year to producers tonnes. constrained Supply Uralkali announced than both the to fewer be China due to

production sinkholes. and is as how available there uncertainty significant inflows issues to additional be from will Laos much Additionally, mine given with continued

we result, believe improving, potash a market are As very constructive. are

into Now insight I will Luciano pass the call our over to financial for performance.

Luciano Pires

Bruce, Well, your thank and thanks you, to Jenny, welcome. warm you, for

be. to strategy, X balance responsible clear good months, I've of finance Mosaic our think sheet Coming strong where for most has can it's Mosaic place, examples. give a a is So you in, BBB, I IT. financial several foundation. mature, strategic I now efficient direction, CFO The is for been

years, We over in after the past has years have almost reduced a by lots yes, of funding Share And something that count place. doesn't market cost options XX% few maybe been believe of momentum moment. a fully appreciate. in confident there's initiatives. the I'm And reach $XXX target, inflation, it, this the million in will control we'll I we cost discuss and good the

also we in address continue on its CapEx control. about under to are CapEx have commitment years. $XXX expenditures Capital Mosaic flat will This reduce delivered to some year. we challenges, to but year reliability last million future CapEx by reduce

privileged step to in already with much I'm so So accomplished.

performance. most This understand meaningful forward. some numbers detailed a is our little to some my to you is new, to it and on and the of on model give our goal I'll comments drivers for the statements able be and you performance but financial going color of

complicated, So I'll net events. it's Obviously, start nonrecurring comments lots by of with income.

between former the see million one, of on venture, the the difference And in on one. date of closing the the exchanged this stake gain venture. for the is First we shares joint market the to this on you shares $XXX value Ma'aden. And value our our of stake joint the book the a of MWSPC

and in $XX another gain market between value financials. the now those the the this forward, And going increase of But you then XX. will in you reflected see stock date million, is the mark-to-market our price shares the closing and of of the December of have

be is recurring. this going So to

Net million in press XX%, denominated fourth our in that in by table to release. is currency also to both a U.S. fourth notables exchange loss the income in foreign quarter, That was $XXX U.S. Brazilian from balance They're dollars. large U.S. Canada. and the sheet, intercompany impacted the the the from the which world. comes issue from the quarter, the this loans lot is And during real Brazil worst-performing weakened the by in

And also a sheet increased similar local balance debt by so Brazilian the amount.

a sheet And by the loss. Canadian weakened also faced balance so X%, dollar the Canadian also

up effects go these of the and consolidated a So as they into financial whole. the negative quarter statements were huge in Mosaic

performance Brazilian more the payables EBITDA open between one. our business again, This and adjusted in payables pay in U.S. Well, goes goes given time, businesses, And Brazil. Mosaic reals is Brazilian at but are we of statement. The into story foreign in than older product. this the which now income And exchange payables recognize the into obligations, finished a dollars. have themselves difference The we we current more expensive. the exchange the also into rate, Fertilizantes in most importantly, local and the in any EBITDA The distribution in dollar, loss as expensive EBITDA. buys

quarter impact hedging. There quarter, million the have the reduced by in and EBITDA losses million payables. 'XX in $XX to the all old this And that may through we adjusted FX are all, continue Brazil working and other around first just in because for still smaller $XX of have in

I am after quarter was in why these fact $XX saying to Brazil the attention our charges. And I this? the call that million. to But Because want was that all adjusted fourth of EBITDA for your all

see our back $XX underlying loss. need So to you this to million add performance,

are territory. of printed to in 'XX the the is adjusted And once things see payable onwards. million number instead $XX million these So we second you're going from EBITDA, gone, $XXX that's of of the quarter

ongoing. higher to improvements So even be it's the given cost going actually

now first, million cost EBITDA? now we're Well, is why X really for into strong. this performance territory For $XXX So plus factors.

already recurring million only $XX As reduction part Brazil. in million of program, $XXX captured we the cost savings

already rock our give Just we example, $XX expensive. cost XXXX. initiative, annually, about much That $XX is some color. phosphate importing was only by our you million change to increased we One million for and reduces we more and in rock, plans, operating in $XX changed ceased production, Brazil to mine million which captured

is The that costs. now other a rate tailwind FX the factor provides in

website. performance can you in down our down Phosphate sheet, data of that in raw So XX%, XX% compare 'XX altogether, fourth period. if phosphate which fourth in is of quarter costs with and the costs 'XX, quarter see this you are conversion are

very about So Fertilizantes going forward. confident

million XXXX. another includes in SG&A. highlight $XXX you is million largely it is flat one compare But on in $XXX receivables. So XXXX $XX XXXX, loss million to when a

significant a that defaulted. remember retailer You'll Brazilian

without would have $XX been like, X% have So would of or this SG&A been a less, year-over-year reduction. million loss, million instead $X less

saved And the million considering that $XXX And other say part as insurance got we've this been we have way, SG&A savings. debt. already on noncash factors, the of by nonrecurring in $XX $XX can million cost intrinsic million on

the some in at bad of majority So loss revert debt. we point, expect this to

project more $XX our from been X How costs the quarters. MOP potash and to down it we tonnes will average, a later Hydrofloat edge produce we products about more which, to past largely $XX as about earn online the But improve standard have which make should flat, with products. than Esterhazy, $XX in phosphates? coming The and is tonne mine, In also potash, year. as efficient $XX more on margin this granular most

QX discussed. the the But cost Phosphates, plants -- recovery In per will in cost being in in due actually will the the hurricanes tonne. 'XX, idle the to dilute following we volumes increased

than And we're $XXX reductions. in for more already looking cost million

So about benefit. bring acceleration this $XX in we that digital million should have program

Day from recovery attend. on on additional Brazil. million of we invite discuss we'll a March to all better plan Analyst you upcoming and you is which of our in mass this Araxa Patrocinio XX, $XX complex coming have will and for at mine and Another all I detail news in And our

in to million I fully middle And capital $XXX discussing benefits got of to and in shares. I I'm Patos the deal reallocate actually committed in hands deal. be also to conclusion come sure right with of $X.X my Q&A. shareholders. I'm the was we're Ma'aden the program the in with going capital allocation the worked billion lucky the the of And very to

received And were final We've discontinue monthly decided particularly you releases. one some helpful, price note, than noise we've feedback more our signal. releases these from to not and volume that

discontinuing it. we're So

to Bruce. the So to call that, with want I back you, turn

Bruce Bodine

weather Mosaic To delivered a market operational Thank you, summarize, year challenges. solid Luciano. despite considerable and

the well market outlook is Our to for profiles excellent benefit our positioned lower and we XXXX improving Mosaic conditions operational cost With performance, ahead. positive. foundation. from is financial strong see

from Now, the operator, we'd like to take questions audience.

Operator

Chris And first Parkinson today question Instructions] your come Wolfe with from [Operator will Research.

Christopher Parkinson

of release, were prepared your your XXX,XXX mentioned your In press it's and you that phosphate, remarks. mentioned belief processed tonnes for your in some sacrificed in you this 'XX

X.X So 'XX. that you would for leave midpoint about at the

So acid on the the tonnes. number anyway? that? you best be way that throw get it's about And could Wouldn't very would XXX,XXX if guidance, 'XX comments, midpoint the phos think to what's you for turnaround some that just half-on-half helpful. at about Or

Bruce Bodine

deal we kind Thanks, Chris. due due had other of you the about that some to things get you events X.X, as to to kind those said. and X, weather in with of tonnes to XXX,XXX Yes, extraordinary XXXX,

it we've the pandemic The if several been sequencing. and really think you're and understand that might Chris, been is catch-up really upside-down on for be talking got work, the that I turnaround, of I years where last phos coming And about going, the right. a turnarounds that on sulfuric the focused we've that out acid

But had production towards X production, is we on you what -- hurricane of would the went maybe back, the kind to we years sulfuric quarters turnaround of December if years. last yes, -- we So in and of add those into our one best as as kind actually, said, have December the in X-year we've impact were cycles. found

So accelerator behind our chance we put to of down some of had given the sulfuric issues that are kind largely a us.

year Central the sulfuric lingering of And half need on in in our first we the New of this Louisiana. in acid, CapEx money Florida of more that we part our little and facilities putting did in phos at downstream some staying reason bottlenecks find particularly deal a And address. a with we're of is couple that flat is some of the effects to of year to these Wales, here

the So look to Chris, talking that is about, and difference you're that maybe half-over-half what for.

to quarter which Bartow was going week. So kind always one of be next as quarter turnaround, should the we wrapping up a given be announced, challenged

some suck rate. run is got bit little at that up New turnaround in this half the we're we've our year. of additional was phosphoric that work year that's reliability then the other capital schedule. more in second And now work But to forward in max some going at capacity Wales so that normal order a accelerating acid

see half, reliability pull some a work will issues second address to half, that those between of really you that difference So in acid. phosphoric forward we're first doing given lingering

Operator

Your Wong question Capital Markets. next with RBC Andrew from will today come

Andrew Wong

of obviously, very have and So Patos with Mosaic, interesting Ma'aden assets a Minas. monetization de

assets other might that the that notable are should period? we monetize transaction, be Is Carlsbad. just there And be regarding mentioned that investment there what Ma'aden ways wondering lockup thinking then Just anything be about? might the You else considered? before to

Bruce Bodine

Yes, Andrew, no, thanks.

been on to of over and minute think of turn it highlighted prerecorded some Luciano I'm in the as consistent, we've the to section. kind going pretty talk about he I details that to a

our are it As if generates that asset to portfolio we're acceptable. at looking returns every see within

of Some in you mentioned, if XXXX, But looking the examples, as as another of of Ma'aden kind Streamsong the was was our example of tip that you transaction back at even portfolio. XXXX. we close -- -- go that iceberg the to this

Carlsbad. have in a at the have idled to optimistic was said, may an some we positively. as process to had weeks for that news announce opportunity And are very upcoming contributes ongoing that Andrew, and do Minas mine, an The mine, Patos sell something that de you we which

we've And turn is be that to Analyst continue that, of on we'll are think it opportunities asset those looked to at. if March got about Day in things a you. opportunities But at. even every And being consider XX. divesting talking over I'll we're to to look maybe that more differently going our about lot detail Luciano, in that, to So

Luciano Pires

ask pointed we be lot There there's stone the going Bruce, given way on specifics being unturned. Analyst Street of we're the -- going. the No, be And ongoing. with very We as studies Day. because said Bruce Carlsbad, a from patience are to will things is for left No Investor out, it all. it's the at you optimistic

expect So as news important maybe for QX. we news, you some as should early

regards are there shares, as And to yes, Ma'aden beforehand. to ways it monetize

into because do are We expect it. I But it. entire size -- the shouldn't third something, parties simply it, there liquidity the constraints, to shareholding say, looking of are constraints, you like do would to on because

have Lots we're decisions very made. know That's as as soon again, of comes something carefully. to upon looking going that let ideas. we very, out, news you But we're as

Operator

Steve your Your next Steve, will today muted. Bank be line question Byrne come America. may from of with

Steve Byrne

to the Slide Yes, you for about your chart shipments. understand sorry on that. global XX. have It's I'm struggling outlook phosphate

you much you something and You look greater than would before forecast your for the project and end period at XXXX, 'XX. at that look XX-year the of low

have for curve in this? this which BioPath yield isn't there it's last phosphate where like crops. really what greater a these one the products, there with in the is of release than to these soil? is there potential longer immobilized been Has discretionary, just And if PowerCoat growers Why a few been drag term use from most this can flatten and in needed? soil? not happened has by more, case material being Is there So excess application from phosphate extension, rates has It's removed years? your

Bruce Bodine

of I'll complement yield the going for kind your and application the give say question -- into and it specifics then a And in of to then and it Jenny remarks thanks to couple opening phosphate, end the question. off Biosciences. on to the kick over I'm get Steve, up on and of

$XXX for see in growth supply ] demand is for price stripping limitation it's -- $XXX is stayed limited actually that But we're kind constructive by of stripping marketplace margins have given even just north advantages. supply-side to and on why stripping is our that And I $XXX that tonne, so long. a point seeing above [ think $XX which a so margins for we of Mosaic, the realized to There margins phosphates. what $XX

So coming the constraints it tightness export largely of the on and constructiveness the really China. exports the by and is of the discipline out market driven

going constraint this So much, And And our just the we isn't Steve. greenfield supply phosphate probably to outside to farmers good continue there to such which is are improvements don't changing that actually on that where actually, molecules get with allow see for Biosciences that of competition yield case. to new constraint complementary pure-play announced just supply significant even are actually is phosphates, continue agriculture to capacity until with time LFP. the

through compound we So a But over Jenny, is rate I expect to X.X% you. to growth X% decade. think, would phosphates, in what the it forward annual going turn I'll

Jenny Wang

think at raised Thanks, X%. a Bruce. over last X% between question. stay growth should years. I happen But demand the it globally for good phosphate very right, you're line couple to didn't exactly project We trend Sure. of you a Steve, the actually

Bruce supply. really constrained As it's mentioned, by

it's margin As quite a prices. it, of supportive to and the result stripping

phosphate impact answer to application rate questions that might related to and -- would also mention the I the like to how your to yield.

plant don't applied crops. taken meaning, on As ground general, in phosphorus least of know, the is only the probably of applied know, or phosphorus many people the used of efficient one by actually nutrients, XX% are or --

there big meaning being applied soil. in of phosphate So stayed a is the amount and

couple to With we of may reduced yield. the last impact years, application rate of underlying over the see some the

much tied higher, make turn more to increases. use, should for in to which PowerCoat have, bacterials yield be organic use biological help microbials, X X efficiency crops BioPath, the like to the brands that the out which to help that good phosphorus you which Some for soil mentioned, of examples actually could thank and the are available calling help these and flagship asset, make to you phosphate to we the the products, generate

have from going on pipeline. X actually Thanks. more tuned, the talk more to and that Day stay Analyst products XX. we come, flagship have, apart advanced we we're our brands on So March even And in to the more

Operator

Your next today Jackson BMO Capital come question Joel with will from Markets.

Unknown Analyst

Anthony on surprises could range you production question for a look to Joel. compared maximum if potash. the provided on is Maybe demand upside to this potash global guidance year? This What like just the

Bruce Bodine

Thanks, Anthony.

I week. what analyze think call mean, swing and maximum of I think running upside full from We there's talk We our probably have rate limited last prior they on least as But about I at we're will on at continue full even Canadian Esterhazy, and be rate And right I Belle It always happened use us. Plaine. at think, to on kind production, to running the Colonsay that. producers, Nutrien you at to now. running think that facility. probably is

incremental that's was there on the the fringes, I the there's is more out more side to: is the more it on For side of our it rail capacity tonnes? just to if a given sure, of and actually of gets -- probably, get high at upside, not Canada. well, think fluidity, there significant on take But can out probably But down significantly capacity supply getting limit ports Canada chain high range. the

of guidance trend. the add the side that and anything the well would, constraint to said, that? Jenny, limiting as that So our supply of very chain I think becomes higher works assumes end high that demand to I on is really the and

Jenny Wang

not I the apart see producers, of capacities the from do Canadian covered rest Bruce. we really guess, any you major in world. I think it, spare

their on we this also had X out then this earlier to long As very the we -- due the producers see in production largest production in needed our major their that year reduction last due turnaround. announcement the China low producers cut on inventories -- the announced of And FSU mentioned they seen commentary, to year plants. have their of

water Laos, sinkhole out the very around And uncertain the inflow. of push issues out the to can addition they lastly, the country it's of more how much and due supply of

year. we all, in to do capacity all any see really really for out So to not for extra be meaningful this get able potash

Operator

Your Stanley. from question next Morgan will Vincent Andrews come with today

Vincent Andrews

right capital. on CapEx If these the is? the much And and do levels where a could the level CapEx how of about been I you last working Luciano, you just capital you at you've Are seat you think opportunities next there. Obviously, think this you working will there is could now? any ask Can do talk the how you few if then could in flat level? know for ask And comfortable view the you of whether few it's sort in CapEx with consumes. maintenance years. months. talk down versus just I CapEx couple But think about on stay maybe particular, over are And I years? business the working capital, Fertilizantes

Luciano Pires

we have especially the years. where over probably shave $XXX of level throughout the you. and We thank to years are can Vincent, the reduce to sustaining million of the few So with it million do target Starting is, by $XXX a maybe CapEx. happy we that today. not We're next CapEx CapEx level

few have the to reliability come maintenance issues. $XXX like the over the like opportunity million, the where $XXX Hydrofloats, about million put to And we mostly year, are some do said, need are very discussed, accretive maybe work. We $XXX Bruce into already MicroEssentials, compaction, which is to million year were CapEx forward we continue ones to every on spending projects but next fix CapEx. will reduction that targeting. years what That's this As would more like we perhaps maintenance

there business is As its working for this capital, year, because especially in working resuming growth. build-up be second a capital just the will in half, the

And So -- with will phosphates the year. same that Brazil than in is direction. we volumes in sales to point the half, potash grow. greater Palmeirante second much will year in target larger our coming last for in Brazil in in, this and thing continue have

in capital. all it consumer a working all, will of So be

And actually, our outlook this year. flow plays this out in for cash

because expect, of more levels flows production, of than given the the half stronger capital strong in 'XX, this 'XX build-up. should cash say, would second just You I even same of working

part financed. an That's business. of I would the is well intrinsic, It say,

have of a we to fund access options it. lot So short-term to

is. So the the bit this despite is generate build-up a that's there's way a more of good a the half, because it in half. cash half. in the But still second Like build year, thing. second first up we We growth, little of flow which cash the generation in the

Operator

from come Your with next question today will Garchitorena Wells Fargo. Richard

Richard Garchitorena

in Solid you've seen on 'XX. and structure at cost million from the million $XXX Fertilizantes, the the come progress savings $XX that obviously, of

Just is wondering, how Fertilizantes? coming be that for Is from going to of SG&A? from XXXX, from the million, the rest remaining to cost much $XXX be the savings going

Brazil And market to the that from if you you've that then done what saw credit just anything downside? 'XX general, maybe That you're some protects in ensure what potential further continue? in would in doing could won't great. been color be terms issues give that And of that -- you you you've on maybe

Bruce Bodine

Richard, thanks.

recognition appreciate on the -- the Just on I the cost reduction.

from half As of is remainder different a come And going areas. said, we number the that rate from to been of a standpoint. that's run already of delivered

and tonnes production to cost volume million start of The benefits fixed South going production -- America we see got growing some cost some that production reliability to North As absorption fixed phosphates absorption and We're cost million you X.X improvements as America. get said, capture. in savings that extra bring SG&A in tonnes in in benefits to to of still as going then well. to are

then about. doubling all over more. turning the has cost Luciano going hard more more But to talked savings of over, down business. it him in the turn even talk think I'll is -- corners and to looking to at there's we're really And on stones I But Luciano reductions that

there. And about him. answer doesn't But Brazil. Luciano? on talk to I'll maybe Jenny we'll issues it in to -- turn Luciano over that and credit if over the then more first it So

Luciano Pires

Well, thank in bag $XXX you, anything fact, phosphates that. be will by going just probably be Bruce. the of to it's top much Fertilizantes in else in The pretty in potash. side million, in cost And dilution on and the

million, we so you $XXX the can achieve coming what will And to put already are in some numbers we addition and soon. aggressive crafting

was Fertilizantes think -- this because a little FX effect. clouded also We I of this performance appreciate of the

So that I've in of spend at really, performance. precisely pardon forward, because But confident the business to really it -- the too discussing performance of much time going got me are I initially. this we the cost reemphasize if

mentioned one things back briefing. to in which to of going I'm I the the And go

to have example, in The mine For up is this Araxa life mine Patrocinio. we XXXX.

So from substantial. by 'XX for accessing plan, areas, to recovery example, in XX mass the mine 'XX, changing the much mine years better by high-grade we're yes, is and life shortening improvement maybe

rate we're to in USD XX So get only this 'XX. at particular site, million another going January run starting

performance to So encourage the there's watch to Fertilizantes this line from forward. extract business out business. for of I a the going you lot of

Operator

Your next from Lucas Beaumont come UBS. will with question today

Christopher Perrella

It's on Lucas. Chris for Perrella

first that prices the up Could potash quarter, in potential with expand just benefit tariffs. demand on tariffs have commentary, on ahead the first the think up do XQ? you the there's And were in a realize of potash would bit and pop pricing up you XQ trade price you Following in potential quarter, flows? a or on on what and Canadian

Bruce Bodine

Lucas, we a Richard's I'm question credit mic here, to half had got second Brazil. to -- didn't because I'm your to going down. answer in get of on answer issue going I question the

your in want then issue. demand we'll do hit to So you and that talk trade let's about Jenny, the first, and Brazil? flows tariffs credit

Jenny Wang

in been to managing choices and our risk. in credit risk Brazil. issues your we've between credit and volume tough business very Richard, diligent Yes. made some margin the in Brazil, the We question on

lower-risk focusing our end with margin, battery farmers, it, businesses the very result traditional b, we traders, on the As users, who good business Brazil green mega to, have on more towards a And have farmers; and of a, lastly, in from the traders, away co-ops. focusing our really customers. we've retailers shifted been on

customers with very we solid -- do the this and So credit quality, insurance business this a year. continue us solid so -- in on to the assurance will have of given lot

Bruce Bodine

have watching it. Lucas, very the our attention organization dynamic know I It's March topic on we even this all many paying question, numerous facets But a these working that's to closely. tariff tariffs. reconfirmed of a So and as across jure that yesterday, corners we're obviously, in on situation, of the teams de functions one in and XX% globe.

customers Mosaic. see when, it's of the if downstream the imposed, that But end by be or of are day, borne to tariffs listen, going at we

demand So the of With U.S. potash the that. in unfortunate, coming is of it's from to reality replace to XX% that's but XX% it the that just Canada, situation. hard

to so And that customers of again, are the going brunt the bear downstream cost.

The top it. prices commodity for good is is an general, prices significant corn today wheat that and to on issue and XX%, you affordability of the in at even affordability in of XX% news, look that given increase side ag want general if good potash or on the tariff of news of and not lining, silver the a with potash affordability the

season The tonnes, other in much already that place, in U.S. baked is -- space in the North spring and pretty advantage in spring demand is

So spring don't the on impacts see immediate side. for any downstream

to discussion reinforce our be And they had cost were are Jenny even of And And that, tariff something additional out -- a not around that honest, impact lot the cooperative. customers worried asked to concerned. one just they're of and Ohio, about. with and sentiment I is of farmers. The of we large and not a

not the gets the a And in transfer a the at farm bit, goes on big to just that confidence surprised show to of market, little basis acre it scheme pricing the again, honest, it on in the farm significant affordability, me of down in affordability, gate, be the but and that the and things. cost to which, is per

to with huge a So profitability having for the the and see do don't impact demand. on tariffs Mosaic. anything

U.S. domestic the greater seen the in in or marketplace, at we prices higher December the than good than point, look of price appreciation, you of even Brazil since Now and tonne $XX year, a turn China. on 'XX potash the to to that up your tariffs, if and any have prior in

So the globe. there is momentum good price around

momentum And this some in of a seen good magnitude of couple we've of the years. first price

to that, where turn over realize standpoint. rev rec So a we'll Jenny from I'll that

Jenny Wang

be in price selling and very I QX. of the believe and in them market of will ourself much some reflected mentioned, Lucas, momentum, as is QX are reflected the Bruce just between different. Sure. because more in will Canpotex It domestic cycle be

are in in that higher So you come QX. from price to QX a guidance and we guiding should our see more

Operator

come will today question Jeff Zekauskas from with JPMorgan. next Your

Jeffrey Zekauskas

in quarter $XXX that Your in your you year-end cash and EBITDA the million generated $XXX flows were million, low cash. in for roughly was and fourth almost the XXXX quite

with cash You CapEx expect from and weren't there able to cash cover this you large the your operating dividend do CapEx your dividends flow flow. events next down? to in flow? that something And cover Was pushed cash currency operating year year and

Bruce Bodine

Yes, around and had good a discussion something Jeff, question we've of lot ourselves.

I'm get of So the it to into over turn going details to to Luciano that.

Luciano Pires

in forecast. was sales volumes Jeff, and indeed, a especially the not half, generated the shortfall shortfall cash in the which second and in flows, volumes production in

cash So that true the the the and yes, CapEx. cover dividend it's didn't flows

just estimate at can shortfalls You shortfalls the in around multiplying the by margins. perhaps $XXX production by million the

cost quarter fourth an the in additional the just see with you in give another water like as hurricanes, in And remove example, we ARO to quarter the uptick $XX brought million the so in AROs, I'll by an involved, you spent the well. and just

the some to did. to is funding we or cash either the in dividend, have year, capital But cover some CapEx, that to the Yes, working even the and excess minimum roll for situation back this we order of distribute shareholders expect do additional different.

Operator

with will And today question your Edlain from Mizuho. next come Rodriguez

Edlain Rodriguez

I a all, of clarification. mean first just

you for should number like be gave In is sales from what same terms of? or of that it expect the the we model and potash and think assumptions phosphate, volumes you provided volume Mosaic, do to production you

everything say, so pay can to the for in look I willing December corn despite of are the those If as that's level couple potash, ago corn price question, at when it mean my it's potash talked for more tariffs. why affordable else and last will the real if case, about prices, you almost if months through the outlook, you potash But the didn't farmers again, a is -- remain now. and same year 'XX, farmers increases, producers push

So for willing for higher factor, potash didn't were it if prices essentially? if not farmers corn to why pay a were so prices the push producers

Bruce Bodine

We catch sales guidance. for But the did we to guidance at have full all give Yes, year. being. our for the clarity to that leave I'll time are. Edlain, we where on And sales guidance on question. thanks aren't it Good nuance as better and production you provide decide the for for something guidance don't providing

commodities. the But production continues of things changed. side thing, mean the I pricing to corn well some the grain the one a supply December of late significant of tightened since price other appreciate as And one the of constraints. On couple as has was that is market. the announcement other

pushed? say, say, where was, It really much September, get as as changed phenomenon November. global you'd from a October, supply-and-demand into So prices didn't it was why that going

down, about domestic announcements changed the million And effects that our from their with announcements particularly now in the Belaruskali sinkholes could be Uralkali Laos announcement -- going and and with the X.X of in production side, more out what from December tonnes the the outages. come the to is on significant forecast, or on and supply in issues maintenance have China with with what

last on over down weeks. we've appreciation fundamentals why the really seen comes it price to S&D on that several back So

Operator

with Your from Theurer Ben next question come today Barclays. will

Benjamin Theurer

AgroGalaxy. as up, down rate, Brazil. I flagged items third that you much just back think those it gain you've expect X% with the it, just timing for in X.X% more some X% on normalized to just just level I these insurance from call then talked was was costs And something comment that how like you we've go in seen really fourth obviously, as be, back And out. to level reclaims, taken the now the wanted about follow you've you you and beyond not quarter we of what SG&A in Luciano, million. we would And of quarter? the to if to it that about the of of that related? a low about maybe on some the XXXX wondering we run But to FX modeling if the in saw come think XQ $XX anything losses right in expect and how forward, Fertilizantes can

Luciano Pires

and costs phosphate sheet conversion costs, non-GAAP in mining and even costs we look unaudited Brazilian Okay. I potash performance would you costs, do at say our provide real. if data,

forward. exchange whatever would want you ceiling model, just to rate those the as, going say, of So think I levels

a reduce reals. Brazilian the trying even we're you before, here. to parameter as So have said I But those in

So that's for one.

it that of types will they quarter, precise confident we be processes, recover take the don't AgroGalaxy, I'm long. this for sure, year. as As Cannot for pretty these about but

we're get So back cash going that flows confident the to we're this year.

Operator

Your Kristen next will Oppenheimer. from question come Owen with today

Kristen Owen

more second the us Sort The to that bit a you color million follow-up granular. sort run performance of outlined can the underlying of $XXX a as half, little of question first half? business, of quarterly here, a give bit little Fertilizantes rate you that

the demand distribution perspective, we opportunity there the And an toward recovery half a challenges of back co-ops. half should channel? some sort the year? of to Is to gradual customers an how direct the about the just underlying you're in thinking about and Or refill of year from given think the increase back the shift then of in your larger or

Bruce Bodine

question. the for thanks Kristen,

a shape to underlying flows, maybe a the then performance cash timing how turn on effects. One, things that X bit unpack little and anything Let's on on on financial sides. Jenny, over Luciano of it I'll

Jenny Wang

that selection between segments, Kris, happened. your move or different Sure. has Thanks. question customer To on the

with, we we've So made do place And we business are over this solid good think move. in we last a to with more towards we're profile. a actually, to the that that year credit year, much the customers going

major change -- to volume from I second necessarily a half. first half the So see from to don't QX

pretty comfortable of I we going anticipate, of are going the record new from where view, a is to we go point we market we the if view, year a, shipment growth customers' as credit forecasted today. point as point view. to of B, hit from from feel market on, a volume is demand would what say this going much and to is depend the profile

And major see change half. from so to just don't half we the second to summarize, first

Luciano Pires

that that right, the question gave from floor not we I convey to going we want from so $XXX message yes, we're Yes. the results And the positive prior example you're million of side, expect the -- will there. And rate the Fertilizantes the run again, exactly is in million, you $XXX should an that's the onwards. for QX that upside And that about start is those something just on in showing cost forward. performance

Operator

our to concludes I turn Bodine back session. would the Bruce This for any like remarks. over question-and-answer conference to closing

Bruce Bodine

key by you, reiterating call few a close And the our thank I'll of messages. Well, operator.

the is First, improved, incentive of market providing plenty promising. Global fundamentals to have backdrop for farmers maximize agriculture yields.

we're strategic at progress. making Mosaic, meaningful Second,

the to business. production in phosphate historic levels our and and is we've restore all segments high-return to well, of distribution production work proceeding Our completed enhance to low-cost, projects

And third, our We've better news to efforts to reallocate about to in we're capital returns pursuit have fruition, we and and that. expect excited or the more announced of coming near completed is future. in several transactions,

we All in XXXX positive and a have conditions. for all, a outlook path strongly well-defined benefit to market good from

and your have a day. call, So and all thank great for you joint safe

Operator

today's now has for attending concluded. conference Thank you The presentation.

disconnect. You now may

The Mosaic Company (MOS) 28 Feb 252024 Q4 Earnings call transcript