Thanks, John.
XXXX years, and XX% already X the the demonstrated half our recovery we the reversal TiOX approximately has to compared zircon a of increased So of trends approximately continue.
On anticipate volumes prior from first a volumes up prior that XX%, to through some our the QX, of and year. were basis year-to-date
on we XXXX to this was back demonstration year are for normalized demand. either is indeed volume trough a TiOX zircon, not Although volume that a improvement yet the year levels or
announced EU will Chinese a in short-term Brazil of each underway. and also to and we've month recovery, these the we have anti-dumping notably, the to impacts last seen from believe addition India be provisional investigations. several medium imports, launch the continue Most efforts announcements. long-term, the these monitor the will We on duty while and investigations benefit In a
our side XXXX. meet the we've up been year, demand operational assets ramping customer to the over On increased this
lower in $XX the to resolved able second higher indicated incurred To third as challenges our our quarter footprint, been half anticipated remaining put a were these quarter, XX% than utilization our and customer QX similar breadth for we in to operational context, outlook.
These in to challenges of were million had continue that we the QX expect challenges As were our up, costs resolved, what million our geographic across operating in the impact QX ramping included the impacted July we and previously meet short-term to experienced rates we into our in the range. per in startup we to sites, some which impact. utilization in quarter, and this come rates roughly costs to half we average $XX targeted, by QX. that higher lower led now business Due and in to rates resulted which impact is have of demand the and issues.
We caused
half up will year, QX. result through cost We expect in continue of which in earnings step our to and second in lower this momentum at the rate running the a
ramp-up, the improve we the we're to deployed costs and of efficiencies. As at benefits technology to see sites reduce we've our continuing
integration. expenditures, last As of side in in million primarily business we vertical in the sustain to mentioned investing the mining in quarters, Africa South the we're $XXX capital X
sourced per $XXX approximately feedstock earth for investments of profitability a we African to South ensure As in total expansion $XXX opportunities focused innovations our East on maintain enhance OFS. rare product space. expect explore the and process projects, ton to metric R&D a to growth to million a we're invest perspective, continuing reminder, XXXX, mining our advantage internally.
From remain our X our Namakwa and in and $XXX the efforts the in will Fairbreeze we These
now to Slide I'll review XX, outlook. Moving our
expected is expects considerable XXXX the the backdrop of While to be to than continue macro to less XXXX. Tronox has robust to anticipated, compared and to realized half second previously realize growth
norms For the the third of to quarter, line compared an seasonal to the we to the increase in compared volumes expect XXXX. by X% X% approximately second third decline in quarter. TiOX range This represents quarter teens high to with
as anticipate the the has TiOX we expect the stable And represent third QX, XXX% are our to our which the increase trough into cost, in pricing manufactured compared realized quarter. an marginally in this and sold cost in we zircon, year.
We profitability in impact anticipate range. tons to to increase stable.
On been quarter the we remain Regarding zircon quarter will second factored volumes approximately of quarter, prices third pigment to levels the relatively compared TiOX -- third would tons higher the these last of
current Additionally, a be to rates, in slight based FX exchange expect QX. we on headwind
third and a million, expect million we result these and adjusted margin factors $XXX in and our quarter assumptions, to to high of teens. between be $XXX be adjusted EBITDA the EBITDA As
of our referenced, the expectations at expect range, our and XXXX costs an a through cash, improvement average result in as year. sequentially quarter.
On that we are in in unchanged step the previously are now half This to rates fourth would and momentum manufacturing the XX% As up and remain in pigment continue for follows. running utilization second earnings
million $XXX approximately be the to year. expected are for expenditures capital Our
taxes cash the million, Africa less as expected Our capital deductible. expenditures significant $XX South are are to net than be in
tailwind. net second to depend expected Our the be a cash trends inflow we're half. magnitude will expecting in The be cash the of is market million, $XXX on and working interest the to capital
I'd briefly XX, to turning allocation questions. remind of capital before priorities Slide to to over our investors Turning like
allocation capital has Our not changed. strategy
for vertically essential in to a continue that strategy integrated maximizing value investments We and prioritize the are business advancing business. for our
growth we'll debt opportunities priority.
And We as strategic finally, our and earth and remain on continue also moment. the focused a remains this market for including move portion as strengthening liquidity space, our will the the provide dividend call. which pay assess resuming developments projects.
That of they is an to high the rare recovers, down updates and conclude with active remarks the more these to Q&A we'll at happen prepared now as on We'll the focus us emerge,
hand So I the facilitate back to over Operator? call that. to will the operator
