TROX - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Tronox Holdings plc Q2 2020 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] This conference now is being recorded. I would now like to turn the conference over to Jennifer Gunther, Vice President of Investor Relations. Please go ahead.

Jennifer Gunther

to quarter welcome and conference and webcast. you our XXXX second call Thank today Chairman Chief Jeff Officer; our Chief are On call Quinn, Officer; Tim Chief Officer; Financial Officer. Strategy Jean-Francois Operating and John and Romano, Commercial and Carlson, Turgeon, Executive Chief

listening using already you have Internet will them. Those be through call. our as slides We broadcast move through we today's of by should website

already, listening For website if you so can telephone, done our access by those at haven't investor.tronox.com. on them you

made comments on that this reminder today's our represents certain SEC a uncertainties, X, Slide not to in based subject and judgment to the best including and presentation statements and limited our provided filings. and the our on This information various forward-looking Moving information. on call include risks specific information to but in that factors our are website summarized

these may uncertainties. to or revise on However, any no actual Company based obligation statements. risks results undertakes update and forward-looking vary The

financial certain of in call, conference accompanying business are the During in provided presentation. management useful nearest of performance. to release U.S. to are in in evaluating and and their GAAP we we terms GAAP our believe Reconciliations investors earnings refer appendix to will use Company's the the our non-U.S. the terms will that the

compared release, assist our second in the As both you quarter earnings discussion a performance. to to basis saw XXXX of in results we performance on our XXXX and provided forma our quarter a reported pro second of basis

on operations and reconciliations, statement presentation adjusted are earnings XXXX. our our will understanding and basis markets. second our the pro results the including release your forma forma this adjusted performance EPS of of the pro the Our of of appendix of for primary and in quarter to trends EBITDA a focus be on and In call a accompanying comparison the on underlying enhance business

X, call Quinn. the it over my pleasure is Jeff? Moving to Jeff to Slide now to turn

Jeff Quinn

you the demand for pandemic. delivered joining in everyone with despite in COVID-XX and associated financial Jennifer. challenges results quarter morning Good thank the and solid Tronox other us reduction you, Thank to the today. significant the

sequentially lower This XX% the was pandemic outlook I discuss capital. highlights Our dive. at the first and decline of briefly our to due driven various of cost the of quarter. team for COVID-XX quarter the economic to all reduction members quarter volumes the favorable revenue my results impact due regions. outlook over release, set and working TiOX turning the to quarter and reflect quarter consistent quarter to will with compared expectations pricing it Revenue transaction the crystal ago two of mix. some second of product our by first were in prudent parsley year in demand by initiatives, the sales while XX% world consistent a provided in and synergies, volumes of our profile with for time volumes and versus timing zircon management slightly deeper pricing were declined a favorable shipment to the before other sales the our earnings

of the of month volumes the was TiOX quarter. full quarter, the when before the felt low May, at significantly was best June, impact the Within reached which in in point recovering lockdown

economic million his Jean-Francois focus third little these that margin bit to of to transaction both $XX million the and to adjusted we moment. $XX a XX% quarter. will which commentary thunder, our on operational results Certainly, our and targets carry million EBITDA contributors other our and and year. We of $XXX target the a EBITDA EBITDA for the in We of synergies. minutes. million excellence. into discuss Cristal our synergy reflected synergies in for achieving very will But in Adjusted we of anticipated tax year-to-date, a on attributable total and a in the from achieved strong the huge the of delivery is synergies momentum remain was what at financial the very few than continued to forward the difference expect a synergies in more market we for on ability are a situation acquisition market the was to Cristal different deliver in making $XXX was transaction the John from provide anticipated quarter the Romano was our performance. steal completed, but time

well a is of and have As $X.XX I the generation would as which better sales predecessor company tax the tax own. quarter volumes losses jurisdictions much in effective Adjusted of rate higher on was before, is allowances. we for EPS storm either by much valuation than said the combined impacted companies have of weathering as an unusually done to stronger lower due the the their in

Our Carlson, further Tim in this minutes. discuss CFO, a in few will detail

more liquidity We is any $X.X our which have through over sufficient in than situation. billion available to business sustain

a by also requirements synergies. for and Eramet us is increasing TiZir position. better agreement pigment from acquire reducing will lower serve definitive feedstock even business During meet with which opportunity customers fully operating internally the vertical our third-party $XXX facility by our highly reduce previously acquisition, costs strategy the presents signed we titanium integration capacity, feedstock reliance to cost will million. production our an feedstocks for and we to enabling our TTI The strategic as further an quarter, on our This more our a and announced, costs thereby

provide enhancing likelihood will further TTI of Jazan, there and for costs. success support only lowering increasing even technology vertical the integration our our addition, In

associated customary with We acquisition. the TTI are process through closing and work continuing to the other regulatory conditions approval

of Speaking Jazan.

During technical resources will to facility, and working our restrictions amendment call. box half of some associated All with earnings in first some travel very late COVID-XX, XXXX. towards we to all, startup it to project quarter briefly that sustainable experienced good AutoTech The the has advance QX service to due as XXXX an allow for This project, entered Tronox. are of addressed the time. to but in continues that as we the and increase in to was the amendment a related and AMIC we in devoted call technical into operations to project delays the agreements Tronox with also quarter, managerial

Solid the operating results advancements. situation these truly results, the our quarter. strategic men and in with challenges given and several delivery have significant us of am I unprecedented the given a overcame pleased women shown

an colleagues virus remained all proactively implement protecting, for the and to to As on minimized facilities focused health business worldwide the preserved at safety locations the operations, our foundation organization, future. our ongoing and safeguards our other our The our ability employees, we laying our my and have of managing of and the strengthening relentlessly of preserving efforts have access effective operate. of the at protocols spread and

our our the customers' despite a we waver continued focus half year. the as trends global do the to to As back John to will Commercial we Officer, Romano, This in will call have economic climate are the I turn seeing Strategy now over who markets. our the needs John? will the and not of on meet environment. Chief comment improves and result, performance in the commercial

John Romano

Jeff. Thanks,

million than for Revenue take pro million focuses year across Moving to which quarter you decline comparison volume the lower of year-on-year by were purposes. of million numbers $XXX demand to the the COVID-XX global the XX% following of due COVID-XX XX% driven forma impacts first, comparison, pandemic. regions, sales through reflecting year quarter, pandemic. $XXX lower, ago the ago TiOX the of the was Slide for on all Jennifer weaker for primarily of XX%, pigment said, X, $XXX onset I'll sales

on stable in the in larger impact sulfate volumes, significant pandemic or in sales relative has though selling has the local XXXX adjusted pricing a TiOX currency. some X% stable. relatively on when pricing X% had lower a movements were lower been QX. While in for be has basis appear improving remained to with declines sulfate currency pricing Pricing prices

lower million than prices XX% zircon, volumes XX% XXXX, to ago. Zircon to year selling driven than market when a and softer sales sales lower, conditions lower of a were globally, Moving of were ago. year $XX QX XX% compared by were

into may quarter. impact quarter this zircon first and a early actually recall had demonstrates on the quarter, trend pricing quarter mix As the our you fourth favorable late Product from roll-forward so declined comparison of year-over-year pricing discussion, the first on this the a in comparison.

decline mandated the and CP of year-over-year sales in million And comparison. and associated $XX other significant the feedstock slowdown. sales to lower less was to of products, the QX lack the Cristal due Slag sales than remedy transaction the global economic due declined So, the with XX%, largely for iron

were million zircon quarter XXXX, attributable XX% $XXX lower feedstock of pigment sales $XXX the of with both quarter were significantly $XXX a the to TiOX offset of million sales were of million. to first be XX% prior and month discussed expectations higher versus revenue TiOX our by and Moving on from sequential demand, U.S. partially basis, quarter. due June selling lower to lower in revenues. products and on low the declined in volumes prices other on local lower and first best and June our call. currency XX% compared May, COVID-XX to Sales line in recovered that the to off dollar we leading quarter Sales vines level comparison both the

product spot to by by timing sales I X% the and repeat QX sales QX. million other QX that lower to sales due X% due to of expected sales quarter as products shifted QX, slag mix. in outlook, an mandated And favorable in sale zircon, representing $XX pig sales feedstock excess due our no result volumes CP are into previous of $XX opportunistic mentioned previously, did ilmenite in from were increased prices some to slightly volumes also shipment X% above XX% of a in declined finally, the up increased and selling Moving were and that quarter, million not COVID-XX iron as that

the believe quarter. the the will demand continue market, began slide, paint second to saw in seeing region by we're markets DIY speak in construction the social continued next quarter. halfway how we into later the conditions which transitions to QX. I'd We've North America, professional in those improving lifting turning and In see the and with strengthen we trends to restrictions like quarter, seeing through to QX third Now into

While quarter. began Europe, some and country by will impact experiencing the basis. quarter any believe which could that QX the listing reasons, on U.S. recovery in restriction and not recovery, the through of seen social is demand country on significant a into cases resurgence the in Similarly midway continue a we have influence

June. a we began started see greater and Our customers in to reopen result, in May, a demand operation as poll to

the We into are that continuing holiday the in to Europe in I we period. to QX. improving continue slowdown factoring due seasonal normally recovery see will see demand believe the

Central of and were remains recover but to the QX also curve number to of a not Volumes TiOX of have beginning in point. but seen during and but country, reasons. America a we excess increasing Despite seen cases and orders given full India for to like the region in most in impacted region, South not signaling in quarter relative this not QX South the there the lockdown began June. in yet Central America the challenged. continues have cases to an recovery. have another complete pullback the an seen remain up demand the and behind inventory recover, saw surge early in reopening China significant other we a

vary however, the demand. diligently country. started mixed will QX. inventory of signals to we monitor And of and a remains by to Asia recovery tightening rest of Pacific into have The levels We see continue and increasing significantly

I the China and anticipate in referenced performance JF. improving the and are of relative TiOX demand QX relative quarter, in expect to quarters. JF zircon, earlier to line offset end the to in will through remain anticipate QX. in that to largely our as quarter continue southern to the level will to India opposed the expected over are will For of improve sailed remain shipment with the with second relatively down market we first with the we call lower for operating Zircon demand quarter. quarter. several continue I to last volumes in the profitability the to slightly volumes Europe to We turn And due QX now quarter review demand third a

Jean-François Turgeon

John. you, Thank

adjusted Slide Moving to forma first adjusted pro year-on-year of ago review was year Adjusted EBITDA lower EBITDA the of $XXX X, quarter. EBITDA let's the million comparison. XX% than

cost EBITDA the remaining as XX% well wide of million by the feedstock million Rand call. impact African stuck $XXX benefit on the our operation smelting net quarter the was impact and demand as and lockdown by condition. defer of quarter partly South This costs the XX was slowdown of QX with the other XXXX, incremental business mentioned, country increased and discussed from combined mining essence wide synergy down $XX global offset from the of Australian the We the achieved shut the fourth in John net in This South African mining volume, the operation of by African margin $XXX the country benefits decreased primarily exchange then million QX ago the rate. costs clear higher and African QX versus favorable and XX-day by South across synergy, shutdown driven and of during associated the for of offset relining the from decreased Sequentially adjusted products favorable rate quarter costs on sales exchange period in As with period economic $X million lockdown days declines were versus driven year improve primarily foreign South this operation. TiOX the costs.

we million EBITDA. million reflected synergy in of in EBITDA, We in Slide of synergy which other of tax will million the amounting our achieved targets EBITDA to reflected total and to balance be to total with on for synergy in year million or $XXX in track $XXX X, million achieve $XX $XXX year-to-date synergy. QX, $XX Turning the in in remain

reminder, saving, the coming the of are majority not volume. cost a anticipated through targeted synergy As from and

therefore achieve stable my which Overall, team the This for I macro our we the our is world. to positive quarter, confident reality. Thank we this a in particularly and many despite this making feel to our accomplishment a a owe always the figure backdrop. operations ability been employees operating and the thanks is have in in uneventful which So you. operating. considering are great environment in

our implementing high or identify financial I in this tool, Carlson opportunity. the increased Program be Tim have service fixed have planning costs our a continues business will to of Same to our ton. we on and Our Excellence impact our from review expect focus executing reduction of reduction of turn to cost Using program a on while customer to our our now providing absorption Tim. over cost on are satisfying needs mitigate customers' the Tronox per cost for Operational level integrated call grown position.

Tim Carlson

Slide at we've On X, liquidity JF. resources quarter. are of Thanks, end outlined capital the the and

We have in $XXX billion million cash liquidity $X.X equivalents. total of including available over cash and

cash no in The equivalents to track our amongst of any operations, million and Our restricted cash is cash an related million acquisition. $XX of is global million we appropriately distributed cash have excludes which jurisdiction. cash $XXX escrow $XX and of the TTI

Our optionality current acquisition preserve to fund is sufficient TTI liquidity business. our and for the

On next our the the to Turning X, we slide. highlight Slide sheet. balance strength of

Our $X.X and our billion current debt $X.X net is billion. debt is total

XX pro trailing on is leverage net times current a Our basis. X.X months forma

our maturities term loans or until We on bonds have XXXX. no

our have bonds. term also on financial We no loans covenants or

policy allocation remains capital Our unchanged.

mine, a capital the development of anticipate Atlas seamless in continue Capital amortization newTRON the the QX, mine, were to year $XX $XXX and increase capital $XX Capital million spending expenditures to depreciation, expense to the capacity the expenditures We deleveraging projects capital next $XX million two half million and return billion. and debt second coal to prepare the succeeding high in for and level to disciplined half of our due initiative which for leverage phase was prioritize net projects depletion a to three We the million. expenditures Jean expected our of on to and $XXX totaled QX critical year. a transformation first business in snapper gross million of targeted times including year. out $X.X with quarter our and back transition is

for million, capital working quarter improvements. the Our by driven was free flow $XX cash

current impact causes our mid-July don't XX% on was so that concern. any aging I in see Our accounts us receivable balance

Turning outlook. up next discuss slide, to the our I'll

the As to relatively John mentioned, to last versus quarter the improve markets continue compared we QX anticipate third several anticipate XXXX volumes TiOX we stable remain and as zircon quarters.

the we planning to the capabilities amount through of increase we As continue We'll result mentioned, managing our capital. a continue not as system. in inventory, But JF operations, which utilizing a customer the to integrated of working impact mentioned year, until tax satisfy rest like its are business way higher needs, reduction initiative fixed the inventory cost for will the to that while would we're slight in the comment in ensure also absorbed the focus be would cost to JF the margins works greater. managing resulting costs prudently saving our through on income our I expense.

by allowance tax losses took million. $XX with mix We full rate. in has XXX% different income our jurisdictional to income million anticipate effective was in $XX statutory $X our Saudi jurisdictions expense be year income rate influenced full and we of valuation tax allowances. Arabia our valuation UK rates charge quarter, million A and to than This tax

million, an previous million As our maintain $XXX synergy JF EBITDA. target we of of also said, $XXX be which will

million million, Moving expenditures of onto previous $XXX from million $XX cash million, million Working million. $XXX to our of million current $XX million. $XX Capital These at remains $XX taxes $XX previous interest and anticipate reduced million. uses unchanged reduced million capital $XXX market $XX XXXX $XXX $XX upon expectation of to our million expense year to slightly Cash of million to cash million. our increase million expectations our for estimates of we the from net $XX to full contributions represent pension of for our cash, $XX $XXX and which of expectation outlook. from based

provide and Q&A. manage free to cash over to to confident turning remarks closing the generation. for the With I'd We cash that, Jeff? we And strong the remain to back have flow year. turn like ample maintain to ability levers generate to call flexibility our Jeff call before in

Jeff Quinn

the profile for news just Tim the the cash our through outlays latest current year based macro the you Thank on the walk for economic situation. you, upon quarter Tim. demand

strong While us. and information there remain believe about we the continue initiatives have differentiated to of model. business in could remains. markets to to The a diligent uncertainly outlook environment. our very and of actions results is there optimism current This appears cost our We is our and we implemented be monitoring developed ability the further assets decline global globally and on recovery quickly. if the have adapt network to have identified more I have integrated the economic other taken available that vertical in be reduction based status

most sustainable Our leaders around to business allow deliver to to the continue lower presented. enable to our customer I The I provide tackle leading would colleagues us base. industry to define the service proud times I step continue world. that continue and new resilient, their now us continue our am safe, us delivery thank senior to to will our low thank adaptable, my the as and teams TiOX furthering cost model for to performance. for to to challenge our quality, strategy any is leadership next like financial world in of costs improved will especially want customers. acquisition, commitment around integration vertical our industry as the TTI

our the with the of the time they more provided Thank time strong, With even steward Tronox, while have and who operator, turn I'd have values. shareholders ensuring like We to very this employees level with for make the your have day. of matter, in Grant, Tronox to our prepared expect you. the Leadership good grateful this This every remarks to a our customers team safety During concludes back questions. morning. providing so. like privilege remain capital. positive our this of for being call a from consistent that, I'm to of grown high on service possible focused working and this our same leadership does this

Operator

is Instructions] Fermium Please Frank first [Operator from go Research. ahead. question Mitsch Our posed with

Aziza Gazieva

Hey, with Frank. Chinese that announcing how guys, impacts for sense seeing it? it's increases. regional associated was. actually to and seeing playing any My a on get question you're first And price been Aziza We've out producers just of

Jeff Quinn

address to want you John, that?

John Romano

Yes. Yes, sure Jeff.

direction, of the up. on we believe exited So, has prepared comments. to in China expect as over in quarter we pricing implementing some upward move the sulfate midst and been seeing have I mentioned as do start out the -- We we bottomed side we to in second are pricing see pricing the

Aziza Gazieva

level know might we you might and And volume are I trends. step track, a returned a be there synergies if mentioned guys you irrespective have Okay. of where when you Is and think to up on been guys still normal? ex-coronavirus

John Romano

the volumes synergies in As synergies were related at to not of general, I think most those all.

with I rest do the target we as volumes in, that as synergies significant year the would not We half There's So, with the expect the that will this little bit. number. but the sort upside some through to change through on I realized get as we a said see before slight of remain be improve in pandemic in there buckets back think, in a of what a we increase perhaps progress year. as

Operator

come Our Barclays. with from next Duffy Please will Fisher question go ahead.

Duffy Fisher

Yes. Good morning.

question the your down First plastic of the volume side In out your down high-XXs. looks already. aggregate, with they're customers it like come TiOX versus that kind paint side and high-teens their some is, of numbers on

you the do versus the was think customer more industry? kind And real your volumes level? second can at were think, So, triangulate consumption where you off quarter of than in you industry volume

Jeff Quinn

just to want that? you John,

John Romano

the at think about do purchases, believe inventory do believe being customers a weren't industry a on lost we've down our that draw any I with don't so much. second that could little higher well, the be that I'd the speak we as early an XX% than on down to in we in so was volume, bit to say that. quarter-over-quarter as anticipate Early had really they there of quarter, quarter, back so buying but that I whole, When Yes, on lot we comparison can't share. pulling

guidance I the low downside XXs from teens on was high to our think QX.

I we're COVID-XX what market on think the happening with So based in in we on know, what was line believe based I sentiment. the

Duffy Fisher

are would cash more working the throws Okay. being doubling you cash And the usually downs than expect. for off the with second question, needed volumes capital of on working capital, just

thought happening needs to what's so some much Why original. the that you consume cash dynamics more So, there?

Jeff Quinn

want you address do John, that? to

John Romano

an inventory in Hey as Duffy, the of in was of in QX, decline thanks demand. the It significant more for result question. increase a

we, little we operations QX, anticipated. and we're bit build customer to a in prudently capital little As bigger adjust but our was it more working in bit than QX meet managing demand. QX a

Operator

will with come Alembic Hassan Our Please from Ahmed ahead. next Global. go question

Hassan Ahmed

Over the on see beyond, last couple sort momentum industry guys of high particularly through Did QX? that develop seeing the things, ore grade we that? quarters, see started some of continuing And reacting side the what's of the pricing and ore. you how to you the and outlook QX do

Jeff Quinn

address you of terms Yes. on Frank. JF, ore what Thanks side? want in to that we're seeing

Jean-François Turgeon

Yes. ore stable. I'd been quite price say, Hassan that has the

as there I up, a to stopped, was they first because and we are the moving in loan-term quarter those know, and momentum time contracts think hasn't momentum take you react. enter that as that price

But And that moving the so, and of very will react price this pause up. look, high a still stuff to that high-grade COVID-XX the fact that I'd think because say we lower to some demand. seen have was that, like I shortage, has route of tile in everybody

a more going high-grade will forward. so, And feedstock we balanced have

Hassan Ahmed

stable mean, helpful. shifts within side again, last you the share I mostly are market market-wise. quarters, guys see side in those we very additive mostly market Did sort understood, on behind fixed seen, a us? the Understood, share? of And follow-up, the over relatively end things, particularly certain had pigment the few industry in of as

Tim Carlson

Yes.

out to we've a we we where ourselves at situation with than with fair get if strategy think, moving aligning to that, product from our certain we viewpoint, that remain there a our for wasn't the consistent say same I our getting the and there's value not been products to customers faster maintained growing we strategic in on shares, from are adjusted. saw that market we least need market. direction believe value the haven't focus that produce So, But pricing the

that consistent line. So, would I say, we're on

Operator

question SunTrust. next from will comes Jim Sheehan Our ahead. go Please with

Jim Sheehan

seeing in far and talked change you about to there, July, June your rate improvement What Could year-over-year you're about, the what year-over-year in was just so volumes? relative You in TiOX curious talk July? June. decline what is about your

Tim Carlson

break similar as look worst the by we May We're was rebounded June I of had had April comments. range significantly. prepared the to is, in at what And when months. to month going what not But obviously. was July, same we tell in saw the quarter July in we you we down the kind in can June. quarter down is in the

think haven't into that when QX quarter, resurgence or at in they of which we're no assuming that were moving in or about in we we volumes economies, that's So, in slowed be the lockdowns QX. this why change, pretty there's COVID-XX time, seen confident point significant in will our North where

Jim Sheehan

we ahead, when I'm go TiOX, And sorry.

anytime capacity there industry might So, be you talk producers pressures in high soon? on what down TiOX about, Do China to high-cost the can cost the shutting and in China, they be under? you any expect

John Romano

in always at We my Chinese producers down, sustainable it's some plants actually the pricing opinion, happen. always to there's actually Look, market could or not in possible in I our clearly particular out of opinion China levels about coming as a analysts closing this that And talked that. third-party Those are close get expecting down that dropped. risk a and that were stage, company. those think of had

have in as is where issue the liabilities standpoint pricing environmental can the So factoring up, up that plants restrictions moves and was, from and the in changing you are anything possibility pricing else I start to a Jeff. permanently, but you time, be if seen. it's close add another definitely to those as know could it's But close yet again. typically sulfate don't of that they China, on this that

Jeff Quinn

pressure sort and favor continuing fact of the environmental of mean I that's economic and exactly is think of about regulations with coupled falling there I out bit. a John, in No, is up pressure the right. enforcement sulfate

will is extreme I certainly marginal a to producers under pressure. said be some be think of there lot that the

John Romano

today When higher that compare about is in range, the than was pricing ilmenite pricing you $XXX down it to and to significantly last where is, dropped pricing is Chinese this where time which still ilmenite to think level. $XXX prices the

significant. that we more more have I China. is a time a mean, there in the And So we around into pressure plant bit this because visibility have

Operator

next from Bank Spitz will question with Our come Roger of America.

Roger Spitz

design activity advisory servicing were more should up the than be you'll Given that take additional are away we previously there of? smelter this you aware doing, that agreement smelter regarding issues starting

Jeff Quinn

are I issues, No, Roger. think there don't more

I resources it set that, the circumstances, time no up significant And time in was we the acquisition, more to shown there of process think us is place the that the is the there's it opportunities Cristal make developed, make as is, reason where but a and similar has real difference. ago. are identified, what experience several this at a put expertise have of and

by And involved, being more whatnot. do project think, so we management technical only and we bring services, bring our our skills not I

So is enhancement where that new any was there not likelihood success, I something it's a of but increasing not lightened it's certainly issues. Jazan, risk. the always as really there mean, and of just being identified

so as the there? think sort success. is to leading your you increasing overall effort very of And on Jean-Francois, likelihood our this perspective comment we of man prudent want and manner a of do

Jean-François Turgeon

the the how put what make that all likelihood we and to some is and being clear we mentioned And really project our good Yes, and more modifications are to with Tronox could at that have skills, that is increase our and agreement just about. success. help people Jazan experience, I technical management the it made that think the dedicate it global moment discipline of footprint and immense that's

getting also the with in readiness. for operation the involved have Autotech to more ready we're will smelter when So modify

and last operator, of we're of going operate to time involved preparation the preparation will how training, the be up ramp around. in more So

to have what help our commitments So, explained mean, increase. our There's hasn't on side. changed. the financial I risk all of will we hopefully that, our success and to changed on you, haven't side of probability a

that I On possible contrary, for higher the think the gain Tronox.

Roger Spitz

great. That's

can to cost compare comparison any your Norwegian mines? South thoughts Secondly, position to of ilmenite nearby you ilmenite the the and ilmenite operations? African and And Tronox's regarding the Australian quality relatively your to

Jeff Quinn

use on effects in of you that can maybe at up. planning entire JF, all, most overall I of where want I'll and we TTI we'll various guess, the in able do But comment mean cost with portfolio. our Europe, output improve relative feedstocks our comment to follow capabilities, to I the get JF all of plants the and sources? TTI the you be business the I to ilmenite, can competitiveness integrated think, the

Jean-François Turgeon

emphasize be is Sure. to technology us is is, increase TTI best us, a big the that that's that chance And a most TTI the the driver for of one to strategically Jazan of obviously Jazan I technology. the to acquiring want And to the Norway in asset. use that similar element way smelter look, because Roger successful

being successful. could increase So hud we of Jazan of the

So element. that's first the

the is And as clean element on stability in as big the big it Norwegian a And with world. of that most power it's Itanium we the energy. the use a hydropower one see source so is which Another highest the smelter advantage costs, smelter make that of a power.

will is to look be Cristal just we plants, pigment a between only identified so, look, what asset, that like an plus minus Africa what that us advantage synergy we in real, but our there's And have capabilities the and as synergy Africa. view, comparative cost we have identify structure And exchange having see from all, was there gain South with cost to all -- we Norway. And Eramet in with a has as good are in in technology South point portfolio. or the that this the very of

Jeff Quinn

internalize there and will to clear. this of the competitive even production think and a costs. of more Jeff world pigment. TiOX I cost is an And make us Yes, asset. our the producer number patient lower been class a And years. position reduce we've that's for majority customer our ability And This from

Operator

with Our next from go Markets. will Please Capital ahead. Instructions] BMO John McNulty question [Operator come

John McNulty

being morning. Colton This is John. on for Hey, good

earlier. I that the to was pricing guess asked So, question

a So, that something of North a starting number crises to look up prior American that modestly coatings guys you be TiOX possibility? in more said of Is quarters. the coming producers to

Jeff Quinn

address John, want that? do you to

John Romano

pricing nothing We too and quarters. didn't Yes, mentioned pricing, Americas that, what six on now, give moving in much right to specificity sure. a I state have last seeing regards seen has I remained about again, course bit variability, our the but into with mean, of third quarter. on what of talking but prepared the we're the we comments,

there's would quarters possibility a I could the that coming in obviously, say, improvement. So, see yes, price we

at pricing down Chinese quarters aware, With not there. sulfate think the as significantly of quarter, last were and today, of going on TiOX we lot we're the products during movement. in the far to Moving to out that I with back we into we line to are call Pricing where in a China, where as half least mentioned the of there quarter. we second with more about been move in for the has six provide significantly regards at guidance volatility some least China regard all are

we’re quarter, into the our see that again, QX. entering third starting to bit a price So, on average lower. And is sulfate

Colton Bina

Okay.

of Okay. back more kind sequential mentioned I longer-term zircon of you audio just some to premium was That's real of helpful. quality wondering, the guys mix. zircon starting one and mean, possibly is are I question. any up in you pick pickup just And, the to that see break]?

Jeff Quinn

amount makes was fair the break] of China. part quarter. so early first [audio into in the quarter variants Yes, There the of in second that and a

of some producers product didn't Chinese who upgrade And that concentrate those have available. material

they us products. grade of some So, our higher gave with

we're this moving say be may into seeing wouldn't I So, at sustainable, but QX. in that long-term a that, it as -- stage significant QX, similar was particular

Operator

you. Thank

final from Edwards will go Travis question Our from Goldman Sachs. come Please ahead.

Travis Edwards

Birdy is This morning. Good Travis. Ray for

around sufficient will TTI be Could Just Jazan, your now announced the acquisition to provided vertical that you vertical what to on us the get quick your a two integration level? those you few is integration guidance questions. and remind projects target optimal

Jeff Quinn

third-party on, and will at depending But Jazan think then pigment Jazan remain in TTI, that upon that reach a to vertical less grow XX% certainly little important And that ability go to in bit, say But the will to level. very a have of year to and the a we're we of out the stage sort portfolio demand come still integration increase and when it's manner. Currently, I increase integration. with vertical of of be increase there's full able purchases. Jazan course, a vertical comes Plus, reach high we we'll feedstock when comes on, as full a might Yes. range through towards as sort will integration. will

fully may mix and be the just Jazan, third some we party feedstocks for be TTI always in vertically mix will there with effectively So integrated. profile. the But

Travis Edwards

And think pick last secondly, the among saw of a producers? we be of one follow expect we past demand as to as the material up, distributed about And to major recovery, we year. how TiOX up pigment share get should producers mock as

Jeff Quinn

to address want you John, that.

John Romano

heart sorry. a repeat there bit was broken. more Could you I I'm please? time, one question Yes, the

Travis Edwards

that. sorry Sure, about

So distributed cases? as how we you producers demand segment about And think expect past we saw up one to share TiOX market recovery, of in material be pick up to year. among the as give major last should

John Romano

Look I can't competitors guidance so one our they are it's share, quarter give shared you employees. on obvious our was what doing. the earlier. a moving clear our different maintain into in our lost had to intent competitors as of I that mentioned That had program with

business plan projects, time. over our consistent with be been growing to our Our is how we've

the to that market are with develop so question? the than growing Does ourselves faster as the we grows. can customers continue aligning market gain answer So that share and that

Travis Edwards

much. very you Thank Yes.

Operator

to to back any This closing turn will for I remarks. Jeff session. over Chairman like now would the conference our Quinn, question-and-answer CEO, and conclude

Jeff Quinn

it's forward able engage Grant. time. all We for to here in this your you of and to months thanking months Thanks, morning person re update by continued in you unprecedented being to on of your a to speaking I to to look in time interest just want with look the in an third conclude forward Tronox. Certainly, with and the quarter. come. you few We many you

the very state back is strong. start some business, world to As of economies I Tronox get and around think the

continue cap and No, managing eye position turning the strength come our But about very expenditures. quarters will of in you Solid it's capital we important think guys operating a position fully performance participate to prudently to future recovery managing not forward the future. to in to working blind our talking Company look a working that. capital and that the from we with cash,

very you great a Everyone thank much. day. have So

Operator

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

now may disconnect. You

Tronox (TROX) 1 Aug 202020 Q2 Earnings call transcript