TROX - Earnings call 4 2023 | Tronox Holdings plc

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Operator

Good morning, ladies and gentlemen, and welcome to the Tronox Holdings Q4 2023 Earnings Call. [Operator Instructions] I will now turn the call over to Jennifer Guenther, Chief Sustainability Officer and Head of Investor Relations. Please go ahead.

Jennifer Guenther

Thank you, and welcome to our fourth quarter and full year 2023 conference call and webcast.

Turning to Slide 2. are John and and Srivisal, Officer. today Executive Turgeon, Chief call and Officers; Senior our John Jean-Francois Romano Co-Chief Financial On Vice President

will through we We slides call. move using be today's as

presentation can on You the our at investor.tronox.com. website access

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

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

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

please that Additionally, made a year-over-year financial during basis note unless comparisons noted. are call otherwise the all on

pleasure John? now to call is John the Romano. my It to over turn

John Romano

with result in Red outage compared expected Thanks, the TiOX some than anticipated and to Slide quarter. in Europe. key some line our third this quarter. delayed as shipment experienced messages due line sales stock good We top more X% America everyone. of from the volumes in the approximately cover slightly quarter delivered North morning we Jennifer, Volumes expectations. to congestion and were Botlek that transfers lower a seasonality X We'll Sea in than also in begin performance delays the morning, declined on with some to fourth quarter

than was TiOX compared was the pricing guide. better third quarter, down only previous our to Our which X%

communicated third earnings on Our higher and expected the than call. our zircon volumes increased last quarter, XX% versus

unfavorable compared product Zircon which products and negatively was other Asia for some X% our the rare due experience did well margin the adjustments regional some opportunistic iron, and South business. tailing our ilmenite to Africa, in mix mix, primarily to deposit quarter earths impacted we and as of higher However, of sales of sales also down portion quarter. Pacific. as additional pig a Revenue in rare third due our was pricing regional earths key of pricing a which from strategy funding to our in part is product

million our Our from was stemming adjusted lower supplier EBITDA $XX below for costs from This delayed of rates. guided at running restart primarily and in driven range. by at the downtime came a unanticipated steam fourth quarter Botlek higher our

under and than more $XX the downtime. due the our costs control situation longer saw While to Botlek in is up we million suppliers approximately running, and now back forecasted

Importantly, not demand other our able were our to to customer outage Europe. reposition our meet supplier demand ability we from assets did to disrupt global as fulfill inventory in customer

second half XXXX the a the XXXX. at We in of expect at least proceeds million to as Botlek $XX result insurance of downtime in in recover

of represents ran flow record market challenges cash free incurred and manage the in inventories in rates at demand. on while we In to X provide at to the continue head amount around are in light to This working of last order service to addressing months supplier XXXX. challenges experienced on The the hold lowest to not uninterrupted costs operating standard these outage. our we're we the the indicative Tronox, we utilization ourselves in customers XXXX, lower and the

on Tronox This through step the power change market the our operating to our high-cost currently recovery we balance into look set work will sheet. earnings in after we inventory rights a As adjusting up support underway. XXXX, realize we're the to remaining

free flow our cash the lower-than-forecasted the initiatives. in expected $XX earnings despite higher than cash management owing million to quarter Our for came at

of and for inflow had from later year-end has proud call. sheet sheet, I'm how with in XXXX, proactively liquidity balance through balance the the team positive million where sufficient time prepared debt but the in considering lower of bolster from very and a we're on a for positioned we Despite the our numbers saw action we the we'll from run discuss very today, nearly variety especially of as working well took I'll which $XX at key We a team bit projects little we we more ensure capital scenarios -- the XXXX planned the liquidity. let Tronox the our John is market a demand, stand we comfortable right position. capital quarter. to are and

to few Slide X. initiatives. now Turning review on key updates of the I'll a some sustainability

in of our Africa's in from We we develop one of to are nearing power is solar the partnership This project SOLA XX% the of project with conversion the Group. helped South installations. significant solar South largest Africa power

gas expect journey We the key zero receive globally reduce achieving the Renewable power XXXX. projects in first to reduction carbon mark XX%. energy will net which of emissions to our step efficiency months, significant and significantly in power XXXX to emissions are and our coming on target greenhouse our

mark a significant to excited we're So such milestone.

underway our to project provide we landfills. hope renewable soon. details in towards initiatives to development external various targets in waste stated our have Also Africa reducing on to We that are another more South achieve

including for in water uses waste alternative cement, chemicals. exploring treatment base, includes opportunities, a road and bricks of number This

forward rare on our the call the and metals we've from to We are detail. in including made excited progress John? turn and John opportunities you of our to use for updating to to to more the I'll journey. to also evaluate about minerals look continuing continuing scandium, now vanadium. We're financials quarter over some valuable extract earths, and waste

John Srivisal

John. you, Thank

an increase X. product $XX other prior to from million. year, sales. of represented zircon Turning This the Revenue primarily $X X% X% the million loss We increased quarter. due compared higher operations from the reported a relative product to million Income other to of to and and $XXX sales. was Slide net in TiOX of quarter prior

quarter earnings was tax we rate as before XX%. in we in NOL Africa, the than paid quarter majority are the a effective we expected where or rare taxes, realized owing in other in higher $XX our jurisdictions, portion to sales Our of South a sale million of generating of paid income higher a In loss the zircon our our loss taxes Despite in either tailing net had have the positions. of taxes deposit. the earths majority

our diluted was result, share a $X.XX. a per adjusted earnings As loss of

quarter adjusted EBITDA adjusted $XX XX.X%. margin in $XX million, and flow the the generated was was Free our As previously discussed, our million. was EBITDA cash in quarter

revenues mix to Now decreased by John by decrease to volumes ago year, compared from in pricing average favorable $XXX the the XX%. X%. product rare tailings zircon of Zircon saw selling that and increased previously of to versus Slide XX% by increase ilmenite unfavorable ago FX Revenue a quarter, was commercial year driven driven and We performance. X% prior our review let's XX% and move TiOX quarter pig higher the a iron, a other of sales compared lower X%. prices XX% was increase million, in mentioned. earth an impact year X of a sales X% for from volume, of impact products

performance now Turning will X. review for operating to the quarter. our Slide I

represents rates This and lower driven lower and and costs. decline a XX%, tailwinds was freight by lower Our and Sequentially, costs mix, EBITDA to partially product $XX rates. lower improved lower pricing. This favorable and and lower operating adjusted XX% product adjusted costs. of EBITDA improvement operating rate year-on-year, offset volume higher sales higher by to freight average tailwinds offset decreased mix, partially rate prices production in exchange costs driven product million by exchange by due due selling production was sales volume

absorption order we an cost which As operating of the down unfavorable our we fourth production across impact previously, Quarter-over-quarter, and in mentioned manage the and $XX to our year. cash, in million increases brought market costs. had costs inventory on facility and quarter production rates to with $XX cost $X included higher due idle costs million of charges lower or rates associated higher mining higher input of million $XX of costs, million lower and and lower

our quarter total of net of I'll position. with billion. debt $X.X and XX. Slide review debt the financial to Turning We $X.X ended billion now

the Our end X.Xx was at of December a net leverage on trailing basis. XX-month

the and expenditures. critical vertical While than we debt loan year incremental million raised prior with liquidity the of our reinforced year, $XXX balance ahead ended third the the strength capital quarter higher anticipated bolstered available integration-related of term the in of sheet

nearest significant term our loans financial XXXX, have bonds. Our no term remains covenants and or on we maturity

Our rate in X.XX%. was weighted average QX interest

with and are the approximately that interest We maintained of approximately through through XXXX, of XXXX such aligning fixed XX% term our fixed our are from XX% XXXX loan. swaps interest maturity rates rate

of interest to million, rate QX result, see generated equivalents, not quarter. XX the in Total we do in liquidity our levels a increase in average significantly the million positive from as was an owing including December year. and cash cash $XXX cash and As to improvement $XXX expect our available

We've Capital quarter. outlook. $XX some and back million growth the of year for We'll million turn quarter. to comments to expenditures for now was totaled $XX the the in strategic in on this and was John and $XX our XX% expense call quarter. safety dividends the Romano shareholders of the over form ahead DD&A John? returned was million projects. the for in Approximately maintenance XX% for

John Romano

Thanks, John.

year. were XXXX see books. market the reversal strong, and we is March of seeing begun trends demand XX market. a to positive February would the already this in We've TiOX pickup a past last months at than strengthening in for sales expect We the that order on see and January the for of see more -- several of time we're for to normally the continued

expect the XXXX. trough downward realized its the in also from trend magnitude somewhat be volumes will we of as We dependent up through zircon makes are market. China Zircon and XXXX. XX% The to improve recovery the as continuing move total July to TiOX on levels it of of improve pricing reverse

shift we're seeing demand However, even that without in China, recover. significant

running on operating normalized to of in last at XXXX, impact I've of between assets high-cost the will headwinds have quarter. each already rates market soft we side, our positive million operational our which should $XX demand. to the our $XX rates levels. revert the quarter which business manufacturing by a significant XXXX carry we beginning year. In have partially in second with incurred second margins the We and more half cost our we're in utilization On anticipate increase low due inventory will still to in year, as We absorption line move But mentioned the we cost. through to into demand, see incurred fixed previously, costs million from

we as ramp to which deploy will to continue at improve sites cost technology We up. efficiencies our improve and also position costs our reduce

to a investing projects are integration growth as profitability. our R&D and product perspective, innovation enhance in efforts We well. key on capital From our sustain to process focused vertical remain

in we're rare continuing the space. Additionally, earths explore opportunities to

in rare opportunities earths -- Africa heavy we these after are sands value and in present As the sought-after we are already mineral to as highly these South increase continuing to explore Australia, mine minerals.

We And ourselves we'll continue only drive operate, critical are preserving also leader regard. to to initiatives, Tronox's a sustainability but also to which privilege challenge are be not proposition. our our to support in continuing this to value

as lower of TiOX are in XXXX spend more expected integrated that for be to $XXX these market to mining These South to XXXX. reaching to replace key is will industry's year, $XXX relative to Africa investing of lives. XX. advantage in to are end the for delayed we'll demand. maintain our and to X like capital than which a in the our cash some vertically IRRs were Tronox's critical Slide our leading Moving strategy in excess projects projects our the maintain to position producer enhance performance. market pricing X investments feedstock. time of Investment These will key million in given projects financial XX%. Each preserve existing I'd continue leading reviewing generate their project ton mines, This projects a

quarter in the Slide more Turning review year detail. our I'll for to the and ahead outlook XX,

expect On for increase TiOX first volumes increase to to XX% 'XX, XX% the both we zircon quarter. volumes compared XX% to and fourth to quarter to XX% the

to pricing in zircon and quarter. TiOX both expect flat the relatively remain We

be on costs headwind operating sales some rights. this by to we expect higher due will While products, and a from improvement nonrepeating our fixed other offset

EBITDA margins result, a adjusted million to in EBITDA the XXXX expecting to As $XXX $XXX million adjusted be be we're and QX to mid-teens.

year providing our EBITDA While we're want our not guidance, cash to view uses. we provide expectations did full on for 'XX a

year. the to million for Our capital be expenditures approximately are $XXX expected

$XX than million to Our net the are be as cash significant are in expected expenditures Africa taxes South less capital deductible.

be capital the expecting this interest magnitude the and million, be to we're net the that depend of tailwind significant working expense will Our market and on to tailwind -- a recovery significant cash expected $XXX how is year.

remains largely year. our investments level, vertically business critical portfolio. integrated strategy we unchanged. in driving at value Our that strategy to and flow the are Even free expect prioritizing to the generate We're positive investment for this our from cash furthering

-- the look and our to as see will on recovers, bolstering liquidity, will we We paydown. we'll be also resume market debt focused

Q&A we We will high-growth we'll will key updated prepared focusing keep the rare the we're call. conclude continue they space, to remarks, Currently, our evaluate market will to of portion on as move and opportunities strategic arise. developments. on the any earths now That and

Operator? to operator So call I'll hand the the to over back facilitate.

Operator

BMO Capital Instructions] question with comes Markets. [Operator first McNulty John from Your

John McNulty

the be is volume terms about TiOX on to the kind think a of as you're look of is you've normal demand? guess we where or broad? first just in should any we -- geographic relatively Or that positive first it How quarter, outsized would above front outlook relatively seeing got I So deviation that? one the there of

John Romano

the Yes. for Thanks question.

in in to we seeing little fourth up We're it's the see it more market, market a across sectors. quarter the the American pick We more. -- the in saw all North seasonality bit the broad. we relatively American starting first mentioned and that bit So North we're a look, quarter, didn't

and sales, pretty typically QX QX in be similar. increase that QX So normally, would

more that patterns. based seeing the we're in and on its confident run our destocking confidently customers, course, we seeing believe moving what customers restocking do we're field into from we're that has normal -- we're the really and largely -- buying So and

the historically, has a, a we business for recovery, kind having and additionally, outlook on really in a of and the think impact year. entire is front believe I we're I'd do and end economic of led our transitions, more of positive this our on say, out

John McNulty

Got it.

maybe Okay. speaking absorption And then Fair year. enough. cost fixed the to just this

$XX hit. slides, highlighted in million per million the of one to You a $XX quarter

about levels we I So a what million for which like $XXX guess, to what that that chunky. need in mean, about absorption we is should headwind to to there volume of be we're completely you think we way is the million pretty like need kind of I down? see erase of where kind talking that? -- is $XXX there year, or to Or cost XXXX rule thinking thumb a as fixed dies

John Romano

and it. a great That's you question. maybe I'll start, John, can to add on

think, So clock back row we were, a XX we in consistently XX%. the EBITDA historically, I below XX% something just months wind above quoted And X quarters, margins.

So utilization, run back where full what the about also to, which assets, margin, running and EBITDA again, we've we that we to that the running up would got historically made I'd at been to mid- through ever right capacity we normal up say we've than ramping point say, that move rates that to we're first that rates believe through. ramping get which, we at, but it's we're lower at we'll on not as run, should the we're now, think I to get have inventory quarter, to And start volumes. we've the the work capacity, us

quarter. to the EBITDA probably that's lot work balance we've when work those we to year, going the through We're get in of run margin. on probably should the got call second of So the price. low- you kind its movement to second mid-XX sheet. going without think I to And a that. normal half that of But It's on reference the inventory rates start about halfway made on have through to the on way

Jean-François Turgeon

'XX. our that remember, slow capacity our to on that, we are significant business, add smelter full at back our operations, would drop last of that in we we're I side to year, mining running the cost and mentioned was John, fixed assets and mine down so the And that had mine those to high --

Operator

Your Deutsche next question Bank. comes Begleiter from with David

David Begleiter

the think do customers? will first in pricing end ] TiOX John, higher what in and this by you mentioned year. [ for What you markets prospects region manifest

John Romano

view lot to do suspect in give of as all we're the be see But flat, pricing first if rollovers lot talking a are a be quarter we're We've could into start got happens, mentioned and we see additive and of zircon on to we're generally it there's -- as both talking of would is provisional seeing across right to these first about TiOX. right about at but we'll about input of move don't it that indicate would typically XXXX. Antidumping, actually expect of out the in, start in -- gets lot that hopeful regions. pricing I that, quarter now quarter, did questions we we It's we're QX. the would to right? I market And some that And the that and to start a migrate come moving nothing the antidumping, on relatively -- the first activity. quarter, this. and antidumping. I Everything to first we'll we movement what look now has would opportunities not all with but So just in is what move regional duties the see up. signs going on would something of largely into to pricing indicators we sort start what was

David Begleiter

the the yet line what's because are -- perspective here? [indiscernible] act seeing this time on the for EC you to any how behavior John, And antidumping, of And change investigation? in your from

John Romano

Yes.

November that coalition quarter. expect on to investigation in We time commission, recommendation -- quarter. fourth the was filed. conclude was dumping the second the from happened in the formal And this maybe process, 'XX when what final the was under coalition So happen would formed the the formal investigation a line, won't of the suit the back was the until

duties there as sometime put yet as to be the early could could place second provisional in that be However, a get but seen. that's possibility quarter

As significant. on little EU. we There's some, was as significant I'd dumping a far as seeing I'd what a filed export real seeing say in are have buying expected would with activity change, nothing we're we bit, suit line that's in but going say, any that's

Operator

Josh Your comes Spector from with question UBS. next

James Cannon

This for Josh. is on James Cannon

gotten in the color -- doing we've mining go back on back not I moving now just if we forward behind comments to last give it with be the little like require Just you stage? the kind year, kind the at a with there gave come CapEx additional opposed system of and having of in rationale steady once you're of lift mean maybe state. would Africa? a capacity as to kind to the more elsewhere the you to down of as projects this Can rates that mining to project them seems rates South

John Romano

so the year, a -- was delayed both Look, further One along we little last projects other Africa. South projects one. bit those in than

on So earnings. term we mining the projects longer and the have require run actually quarterly than our do a long view business to

mentioned the of these their call, the the that assets what to specific these our ability feel we because end the lives. invest spent that was did of to we end coming time sure delay an replacing appropriate purpose it year are make in mines on we that as for So bolstering last had are to actually the some year. last that day, liquidity at We I

and zircon feed maintain to our So to the projects. if our ilmenite long-term these we are smelters, volumes want

XX-year got like for our to manage a mining. And a plan more but business, plan X-year our TiOX we've

maintain appropriate, doing can make needed not we're what that only particular is this at stage long-term feel we to our business. it's we sure So

James Cannon

some with producing those as you then to on there those anticipate when start drag or And be whether start Okay. those will timing on can give on any and not you -- or up? OpEx commentary just do absorption

John Romano

mind mines, as basically both of from a So the to new previous mines there of one transition the a in be of the -- one. those both to the transition end will

body one. of a be out move lag in, lead we'll lot timing we So or moving of all be there moving of one another as ore, into it's time shouldn't

that shouldn't there little equipment, bringing bit don't could be we're we be as a to transition. up of Obviously, mining drag. a So but of the expect lot be a there of some transition,

John Srivisal

we do the value as mines, to those on optimize would lines see we think I when and start obviously, online some expect higher bring new there, positive we whole come ore resource the out to there's benefit. earlier so

Operator

comes Fischer question next from Your with Duffy Sachs. Goldman

Patrick Fischer

If -- you year for assumption this your could CapEx is million. $XXX

flow last year million. cash Your $XXX operating was

cash positive Can How grow how flow year, you free million year. So buckets be just to statement be improvement you plus? an in much $XXX of Anything over cash would little through be things flow cash get in would operating activities of before would EBITDA? this you much on this a that walk that your that $XXX to through? at working need of operating means see improvement those How the that us kind capital. coming like flow million else the

John Srivisal

And thanks aren't guiding for question. full the Duffy, for year. we Yes. that

ultimately, drivers. So our of an positiveness, year-over-year from the perspective, size and but million, market an to as improvement and you there. $XXX But both are perspective, less be capital flow, scope the on dynamics $XX of $XXX that's negative depend And earnings cash million. positive. CapEx and expect capital we will the guided a capital earnings free million, that and on so working obviously from than working mentioned, cash optimistic, are free do working we we expect expect taxes Obviously, biggest interest, flow we

see obviously are sales be line expect as that inventory be as We obviously, we year. the play building hurt, all on cash of do capital is do the as are well payables -- -- inventory, see are some going throughout we do managing source a we AR to working perspective, capital to a good there. that working a AR we up, And From and that actively going is inventory depend will use sales growth. top and with but

where of free flow. are we kind that's on So cash

John Romano

started XX% about again, running as of utilization even numbers -- And think for times up just thrown at we've and we we generically, to into capacity a the first year. from side, move I talked little early those teething a you lower couple -- over operating And ramp last assets as of start the up December year rates. a obviously, as up as early from those quarter, to

super when about running a where -- we So to absorption, that think million so due talked million now it that smooth start you wasn't about $XX to are are to to today. we'll to similar cost negative results. see get assets But a quarter we as those fixed $XX

we And some will outages these of unplanned have that be added on to that.

So significant that. portion there'll a be of

So price are normalized about mentioned with an more in driver a when as profitability. in we which our think going be running on the to big rates our I it's at seen we've a EBITDA historically but is is before, margins, opportunity growth, obviously, assets at line what that level, are

Patrick Fischer

then kind you stuff And any that. have union? kidnapping industry both been of other Africa with you Okay. operations fighting and or X some unions Or any and with operations South at single guess, seeing issues in a been I of several South those And of TiOX larger are you in have your of there's, the like unions there your of Africa? Do operation? are kind out so again, their reports the mining then of

Jean-François Turgeon

we our be community, are to our all the in always have about South approach a and where our they lucky with worker, and that mine that our worker tell rivality workers where I like that have they're we're are and mine. our mean, and huge located, South stated I are don't you, smelter we area dynamic in to Africa Africa where remote work have issue and no there member those we can one union. is issues to heard an Look, community local, Austal, are our case, related Duffy, the makes remote difference not we that is no often, in only between of issue in the with and are union at

Operator

comes question Jeff next JPMorgan. Zekauskas with Your from

Jeffrey Zekauskas

think do over each 'XX. you volume XX% year. industry? is think and you the past years down the I X How compared about shrank the do your industry TiOX How for to XXXX did overall

John Romano

Jeff. Thanks, right. Yes. Look, you're

think look the X down you last XX%. our If were -- volumes our at years, over I roughly

pretty out significant year And obviously much a importer lot taken a the a specifically grew. know China significant just not of China. So China. Chinese Asia accurate. to Pacific. coming of XX% Asia attention a of lot in of a material, India take growth, an Pacific, you has is paying exports China so in interest has become in I

So think not competitive. we've lost I was bit feel little I to where it like think do we've that share over on of and time, based Chinese, a that the done we probably

were there's to some bit That the that to I the us about is being said, market the compete has that years. think capacity are over still would heard Chinese, our already I said, in took But that we think manage others the going being talked last provided suspect of China with some efforts European a growth lots of that That the of probably were, share than a feel trying more of the on. disproportional Chinese I growing. like our couple opportunity chloride -- that. an avoid can we with directly market. We've

Jeffrey Zekauskas

stand? you much a how more sort Where give NewTRON, still can And is report spent? that the of does status Okay. just that us of savings could the on And is, And to all Project savings what what been? be be? have

John Romano

Yes.

we've XXXX, million about to got So for $XX still spend.

of going in this year. So of S/XHANA additional as launches through Pacific Asia July we're early as some

system. think little talk upsides -- are control seeing information as some being more All what extract don't more know, our process still toys, we're there you the we an I automated operational that about working which And to of out assets. a we're may are Tronox's process. John, as far So bit is those through utilized things of opportunity. But

we there that which a additional I of seen was amount think volume, early on, fair haven't coming from was value yet.

that. would probably say we to year I'd more towards end of into see this start early the So and But John? next.

John Srivisal

over $XXX on John, masked per right. as from bringing But from we to escalation those going from big years. of that we We somewhat up the mean did assets. we're quoted are the savings, by benefits exactly hold. that that it was accelerate But although had NewTRON. we do we we've ton. couple $XXX portion believe in will that's still frankly, those said a significant that to procurement see historically Yes. volume the capture are already I of benefits a our of And some think perspective, past we at

do only have we be that range. to as within Asia in Obviously, mentioned, expect Pacific. So still deployed, we John

from a enhancements we of need other systems at but operating from So some -- to will multiple perspective, the deployed sites. have we

we see those volume expect a do benefits to So from perspective.

Jennifer Guenther

And Jennifer. this is

Just I add. can if

seeing deployment site are process the some of a We of like control. automated level technologies the at from benefits

for example, comparison on we're producing. efficient example, tons When because a just emissions. produced, bit intensity more you consumption coke seeing a It we're like-for-like GHG positive reduced look reduced the operating of did this that So we're the volumes for masked have rates it's run our low for a on our effect the at our chlorinators. at. we're because in But

should we ramp materials our in consume P&L. of the per capturing the not benefits, are as the this all of benefits them P&L. would the and on translate ton But We're necessarily of assets back POX lower raw to side sustainability our like on to coke up, we them chlorinators expect we So seeing on business.

Jeffrey Zekauskas

benefits. relatively ... should So there $XX is Is more ramp the go, the the as to but up, see or essentially that small, spending million something you done we is general

John Romano

implementation And that we we one Yes, the entire whole year, mean, I that's about process last to automated idea all finalized control have on system. point, correct. the system. the chlorinators, that And our XX think of of I across the across Jennifer's just

the ramp we'll assets, as to noted. of a start start we lot to Jennifer more as up again, that get value, So

Jeffrey Zekauskas

about question. what if more year? and one can Can sneak Maybe I the with in you going chlorine on talk expect what's prices for you

John Romano

So what is continued the a prices have move our downside. direction I can in say chlorine that to on positive

depending different very is upon region. chlorine the So

QX on reduction Australia, chlorine is So positive what as purpose-built QX say In which and -- and buy would seen in going we've prices, own we our chlorine I But Arabia, merchant have of in a is well. we in a America, Saudi we chlorine. plants. impact lot significant have in to North make a

Operator

Mike from Your Barclays. with comes next question Leithead

Michael Leithead

you expecting pricing question, a zircon First what outlook? are from

John Romano

I in on pricing. quarter comments, or the my a we in first fourth the I or -- think mentioned saw prepared So previous -- the rollover for quarter,

in actually So QX up to but slight that's mix. QX, bump a QX from all price -- there from was

first XXXX sales the shipment or the we've QX going on market how in in depend to point, comments, We XX%. bulk but additional and very So look, and July lot that or to big to of the first flat improve. market has quarter, the is low not. with pricing was the evolve. a whether was is of bottom, continue continues -- we're go increase to swing seeing up it forecasted going to quarter in XX% seen XX% lot actually this prepared do quarter, a were the big QX a to that a

market. the is industry All growth the is about back XX% of China, the growth ceramic of of on much that which in not in

the are So we're run Customers in has again, we seeing starting that Even applications, China We destocking started market its to uplift. the nonceramic see we're restocking to believe and an occur. see course. in buying recover.

course So its we has destocking believe run as there well.

should year, but that as to a early of forecast to clear on all positive in zircon it's provide little we yet. bit start that move we movements would a that see the through So too pricing, indicate

Michael Leithead

the expecting agreement again? was I technical then, full Jazan? service again, it if repayment but missed it, I apologize the on the extended off? And get roll update what's Or to And in Are you did latest Great. still kind?

John Romano

Yes.

is look, So Jazan. debt working with we're in 'XX. The January of due still

to -- stage. and not in with this payment of the them much and our change agreement of in debt is at the going towards slag We actually lieu particular slag there's that get continue

So still down debt. slag to continuing the getting work . is with And them. we're to pay going down largely that

Operator

Your from Global. question comes Ahmed Hassan Alembic with next

Hassan Ahmed

integrated the the I sit EBITDA 'XX change talk as global question enjoy globally. I'd Obviously, look, just think about in that you competitors plus them curves in call well, of the around are, thank being obviously, I down XX%, now. percent. as I you of Quick sort guys sort like about your levels guys of of and north XX of you margin to relative cost you this cost reported QX it see from and as as margins QX, there XX% mean, curves, to you a QX, right and premium mean as

So chunk that is maybe at to a right? breakeven that margins, EBITDA large there's like I'd industry to think the of even negative

mean moves does industry And to these then in for I'm of EBITDA of sort I get margin mid-teens And sort guidance that sort given? sense where have to EBITDA of that giving mean, to are you direction, industry are the that you've margins. sustainable that you industry? of margins I you is, make trying XXXX the guiding and just conservative sit are potentially beginning I get maybe industry of in guys of the margins. a if -- there about the guidance positive mean, being the the breakeven-to-negative for I given sort think

John Romano

I for Thanks, Hassan. just we that doesn't the think a that in would quarters expect QX. which to bit move, we guidance XX question is expect margin the capacity XX where by our ran it increases. be And we we moving, going mid- the will but see move, earlier for EBITDA Look, a if our midyear, we of lot improve XXs. we've let's XXs. price margins say months -- that price do didn't was gave And as back a high the to, We -- our about margin to business said in mid-teens got

but said, -- our them, because publicly get going our On So EBITDA actually vertical of integration going do us they're normalized to assets pricing just margins. to to it's just competitors, going what available. exactly publicly put is information our aside, their speak to I'm you not to running is

you the money. margin I Chinese wouldn't majority significant we that the that not And I with made. the them EBITDA anywhere. with believe are of do believe disagree comments losing are similar boat in making

are are margins ultimately, we EBITDA And we Negative very can't much where a So sheets better to people -- have support year. to going don't sustainable going balance not and a is margins be improve, that to 'XX don't our place long that. to do believe for as you because an be. is industry

Hassan Ahmed

enough. almost potentially for mean, to is it could it's material to could assume assume like producers? mean, I European go I whole of XXX,XXX sort revisit is takes. if whatever I XXX,XXX direction And the up entirely of and ruling fair that to final the Fair Western a things. towards Commission fair grabs tons of antidumping as follow-up, is of that the side sort it that

John Romano

-- -- behavior before the investigation of grabs end sooner it's sure. in won't to it for the complete. end of that. once And if the But other option them the I going be some I'm a until typically first think said, for I to price. that duties different Like is is duty place, for at producer, formal first way look I Look, up to Yes. could be guess, I days. that, is process raise year the will quarter, and early is the it. mean, the the Chinese end a quarter would than then But drive come their Provisional

-- coalition of of by again, this suppliers. kind that just led we're was was something So a

exact where of just are data have we good we pretty what's it yes, going I have determine we idea think a on volume if would the there's definitely is to -- a bit pretty pricing So going but what do not happening, it's on get shift or implemented. good to a process. It's duty and some feel to, to early don't we and it's some that in opportunity. were be But if like that

Operator

next question from Andrews Stanley. with comes Vincent Your Morgan

Your Roger of Spitz next from Bank question with comes America.

Roger Spitz

questions. Two

you, potential to cash other in whether insurance casual XXXX restructuring CapEx, think recovery. million that what other The there cash items Are or items, in we first identified, addition one to flow a that other items free other you've $XX when should for XXXX, I EBITDA, any operating your so-called is have for refer as you about, identified flow?

John Srivisal

anything don't we insurance have mentioned. than or recovery this you expected that Roger, forecasted other the No. at point

Roger Spitz

second to stuff but is, days, early Got it's it. And I the in on model. then fill I just know want

to mining more talked back that South about cash XXXX, level is Same think should For XXXX? tax CapEx XXXX? rate perhaps African how with the you different? normal operations. to we XXXX, in in Does or relation rate? And cash repeat about a tax that Or

John Romano

Yes.

to Africa, still that would And So extent spending don't be we're the South be look, but the for it going slightly comment forecast we on. what still you other But can We complete a got have. will have John, than yet, money XXXX deductible. capital some probably lower projects we on mining in tax.

is it's be. with So tax early going little to come what a our to up

John Srivisal

spending that, Africa, multiyear. I -- will be John. agree in X-year not South is a with this we it's And as investment

that expenses in capital on we be those 'XX. deductible South Africa So would would spend in

Operator

from comes question with John next Your BMO McNulty Capital Markets.

John McNulty

one just Sorry, follow-up.

over years, at and it's the last look about the in years. that it's on hit of So when capital I couple your inventory had working the last million X $XXX

drag I in, where can normal kind the I up that you to how clean middle whatever, more to inventory it rates you guess of you long inventory, realistically funds all reverse year, see at return If from source that to very operating take work through this will of of a could a could years? the not X with that to how all of it, mining sure think about could side, you recapture Is hey, this guess quickly take X inventory? long how time? this how look, and just lost some I'm

John Srivisal

good a point. it's John, Yes,

As a chain. we supply we have mentioned, long

So down and some the while in mines months sites we past down feedstock We inventory. flat our slow or so, XX out our relatively did pigment inventory. were to running that brought build

inventory, And a negative on out capital swing historically that capital and at we that's you the look expect inventory. on owing to as we've a If is that. We do that actually working positive do a -- to bigger do see guided, lot was working cashing change. reversing what take XXXX, expect of we be driving

John McNulty

years? last kind million inventory $XXX headwind million reverse Or I able the there guess, don't mean X And that $XXX the I a we Or is there some -- reason for or new level you just from back? that should why I one case? are full reason another? can of the to be 'XX. is -- in get at be you won't

John Romano

Not over We recover would we would that expect Yes. 'XX. in that time.

Operator

comes question Vincent next from with Morgan Stanley. Your Andrews

Turner Hinrichs

markets that February are above touching tracking This January seeing? is slides, for strength are strong in Vincent. In and movement what or on mind the you're your March mentioned that Do levels channels order you Turner books on driving sales. end inventory Hinrichs you and

John Romano

-- so those entire basically across it's Look, are the Yes. market.

that the fourth we first every and to back regions referenced we're I also So seeing I'd -- a say, pick quarter. it North America We we're additional in again, as a the quarter, a stronger it's, saw much up seeing bit slower the up. little little other in more bit we're picking didn't America mentioned seasonality as region bit think North little volumes, I but drop seeing --

across particular to board, it's the say and I'd So any segment. it's specific not end

it's So and coatings, plastics, paper specialty.

Turner Hinrichs

also macro if Great. across additional those Do and have on Makes what as affecting And you're it details the freight to trends? be mind relates the some trends seeing great. color you you export regions, providing any that import sense. they're underlying would cost, or if for

John Romano

on and you're referring imports Any specific or exports reason to generically? just

Turner Hinrichs

that it would both of about Generally, antidumping also given hear Chinese interest. imports the and exports export trends Chinese interesting be would European broadly, or be to probe

John Romano

Yes.

over China, considering in we have an December, But there say actually say, couple suit antidumping we was was I'd and see to surprising, last filed. of which January an numbers don't continued November I'd a yet. the months, So uptick, not,

Europe exports out Sea. exports we've market congestion the as on coming some going imports So and -- to China. Europe in bringing obviously activity we've in in a big Red the referenced for and some -- material from additional far of is I with areas, some China issues seen of the due And other as

But getting shipping. they're of significant benefit where from So for depending change in they're located there's I they're where that, upon a Europe, I little wouldn't say think in that actually producers are activity. bit and

is, East. some forecast. we happening bit XX But -- of a the say, the in Now higher some although moves rates the now, those been, as to of in the a tailwind than starting Sea freight our months, and us put activity say, significantly, freight, we about short-term on I'd up seeing negatively have Red rates we're the where course gone rates see we some say, the of to happening in our of impacted we anomaly think I'd last historically, I'd forecast Middle abate, freight. some a right due are seeing spot more have What's are 'XX we're what for those over on and that that's positive that's,

Operator

John now turn will call to the Romano, Co-CEO. over I

John Romano

continue Look, term -- projects our a Thank upgrading vertical confident very the for integration we you, where in of in lot operator. the remain XXXX, Tronox, the value strategy, advantage. we're to the from sustainable are our into and will long we're with we believe, including We short our and doing, moving solutions. company provide that mining competitive optimistic creation

So great I'd you day. like . to support, a and have your and Tronox thank your all for interest in

Operator

lines. thank your and your disconnect ask We conference that Ladies you this participating please concludes you call and today. for for gentlemen,

Tronox (TROX) 16 Feb 242023 Q4 Earnings call transcript