TROX - Earnings call transcript Q3 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Tronox Holdings plc Q3 2024 Earnings Call. [Operator Instructions] This call is being recorded on Friday, October 25, 2024.

I would now like to turn the conference over to Jennifer Guenther, Chief Sustainability Officer, Head of Investor Relations and External Communications. Please go ahead.

Jennifer Guenther

to quarter welcome and conference and webcast. you, our XXXX third call Thank

X. today President, our Chief to On Turning Slide call and Srivisal, Officer. Executive John are Senior Financial Vice Chief Officer; Romano, John

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

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

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

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

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

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

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

John Romano

and with morning, morning some Thanks, quarter. this Jennifer, X good everyone. key Slide the on begin We'll messages from

a our in pace in was as Latin while the recovery of North the the year, prior and met America our softer recovery the expectations we of Europe Orders the month Asia conditions demand in demand to in demonstrated quarter. compared third and in late last Pacific continued quarter. below results than the Tronox's quarter forecasted though slowed ultimately, expectations, softer-than-anticipated America of came as result market

outside of competitive shift from by was demand, behaviors. Our September, guidance TiOX X% compared and pronounced decrease. X% a lower in more antidumping X% influenced short-term our a impacts which to The to QX, in declined sequentially volumes was

orders XX% into the declined and relatively demand guidance volume weaker-than-expected volumes that rolled below sequentially, our of flat to QX China. versus Zircon due quarter second in

operations the rate targeted On in of we side, achieved pigment the average utilization quarter. approximately our XX% successfully

However, we begun flowing to benefit weaker due the than to inventory bottom through the to lower the not of cost yet bottom -- see the in forecasted to line have the quarter. demand

with and would EBITDA This below had million, adjusted XX%. our well demand environment have $XXX in we guided of market line range. approximately of an of an range million, guidance, weaker slightly adjusted our delivered demand a resulted If previously our million to $XXX EBITDA margin in been $XXX within

a seen recovery. are seeing We up trough recovery in are now demand a basis, up year-to-date XX% but XXXX Zircon year-to-date we volumes from TiOX are have levels. basis. the volumes a on XX% continuation on the in slowdown

term, we we'll There net the China antidumping rate are in the be the mid- the will need and tailwinds, We a investigations these including term. Saudi in are various cuts firmly short and EU, continue In interest long navigate in U.S., most believe demand. Arabia. positive seeing stimulus India in recently, to to in moderation to in Brazil,

detail. call discuss for the bit call, financials to in the little John? John a the but will of in over We some I'd turn in further review macros later now these like to the quarter detail more to

John Srivisal

Thank you, John.

$XX to from volumes. XX% of million Tronox loss reported prior increase other TiOX, $XXX higher million. million, to We net in to the operations by and of driven sales compared year, Income an zircon product Slide quarter, $XX was generated Turning we revenue X. and the attributable of primarily

assets. generated quarter the existing taxes accrue and we our in million income $XX was in tax are utilizing where expense tax as deferred Our we jurisdictions

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

quarter the cash in of EBITDA EBITDA adjusted our was million is flow mentioned, million. was quarter $XX million, a CapEx was and the $XXX $XXX the margin in Free for adjusted our previously use XX.X%. John As quarter.

Now our and came QX performance. mix. X to from to X% trough in let's recovery XXXX year versus partially levels, see the improved guided quarter but as a TiOX decline by move ago commercial increased the for continued review below to expectations. product of XX%, Slide our XX% sales a due revenues offset price

Europe a and decreased than regions where This recent offset more by years. a declined a by were of softer pricing as demand X%, sequential revenues driven volume basis, anticipated. was Asia price improvement TiOX had On partially decline X% in from Pacific X% in in

the as mix. XXXX increased volumes XX% XXX%, revenues and revenues a zircon a increased headwind volumes and XX% driven Sequentially, in offset mix. price headwind QX product over Zircon from XX%, XXX% sales trough partially decrease and product levels X% declined by from by price a of

Revenue heavy mineral from sales year, increased Sequentially, revenues XX%. product other products increased ilmenite to of and XX% tailings. concentrate the compared partially opportunistic to other prior due

revenue a was for favorable comparisons FX euro for year-on-year and both sequential movements. with tailwind

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

million, assets. EBITDA we cost as by zircon driven partially inflationary by utilization the costs and a improved an higher Year-on-year volumes product $XXX of driven These to absorption by represented adjusted other offset our started TiOX, of were and costs. impacts. were lower production increase million Our XX% fixed year-on-year, improvement of rates production improvement $X

exchange inflation. year Additional headwinds labor versus rates prior other including costs, and company include

costs, were than higher production costs. and Sequentially, commercial adjusted Favorable higher XX%. declined more by impacts offset freight unfavorable FX EBITDA

as cost the that manufactured $XX in million Production costs the of well higher The the the demand, second sold selling third quarter-over-quarter. related This we million costs. were higher which communicated. lower in quarter by quarter, had tons as $XX tons amount in maintenance the weaker driven remaining previously cost was pigment the of higher produced as delayed quarter benefit market to was third

port strike. of U.S. saw Freight costs the strategically increase products we slight repositioned a also as ahead

African dollar headwinds realized the from rand. South also We and the Aussie

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

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

During the loan This new other and capital XXXX. term third with in X-year our following loan completed extended March successful September maturity repricing term due quarter, further term refinanced optimized a the our XXXX extension profile tranche, our structure, our transaction loan debt we April. existing which due of and we

our With debt our the until refinancing, is maturity significant completion latest XXXX. of not next

strong remains liquidity with of continued integration-related critical capital Our ahead balance sheet expenditures. vertical ample

QX such interest XXXX. our average weighted in swap, was Our X.XX%, approximately rate rates XX% we that of fixed interest through rate interest maintained and are

of was $XXX including that equivalents globe. $XXX end well the the at cash and million million, are in liquidity September available Total across cash distributed

maintenance $XXX previously million heavily and XX% and strategic which totaled disclosed. of growth projects, was safety of this approximately quarter, on CapEx for XX% weighted business, the we mining for in the the side

demand higher relatively Weaker-than-expected QX. our AP inventory market higher. neutral balances. was good capital in balances offset Working AR was drove This finished lower and by

the John? $XX shareholders quarter. in to on our in the returned to comments I over Romano dividends of will the the the form John We and for million turn outlook. call market now back

John Romano

John. Thanks,

zircon. the over Although back are we normalized or improvement yet we either have demand TiOX XXXX, significant volume to seen levels on market not

provisional opportunities significant currently interest market to antidumping in indicators mentioned, for investigations stimulus see such announced, and that and in the there rate been as duties the positive As are Tronox, we U.S. the in that previously have long-term China. cuts in mid-

antidumping. To an give on the update

of to of addition provisional In in XX. October that imports duties place, be duties to provisional as duties authorities titanium just to applied China. the provisional from approved EU are The Brazil effective trade were dioxide

Additionally, the India is still investigation an officially X. on underway, and launched investigation Saudi October antidumping in Arabia

these measures. not have We trade seen benefit yet the defense of

start we XXXX. roll see as impacts the However, positive into to we should

the QX. a average headwinds On to during in tailwind range, which quarters lower on and the these at to up the result related operational enter step-up we reliability assets now and ramping running in previous will the utilization with a and earnings efficiency, we focus in X momentum XX% our costs as expect we were expected in into XXXX. are operational to rates side, a rates, experienced QX The continue be

so invest the the expenditures expansion our in year's projects, are Fairbreeze our maintain our that with we assets sustain this significant ensure our to to mining a Namakwa $XXX of to of African we East can vertical South OFS, the of current advantage portion that will We investments for integration ton These internally. and $XXX level. X sourced dedicated extensions continuing a feedstock

to focused remain to product perspective, on innovations process process and profitability, in and we growth continue innovations, our sustainability-related space. enhance the rare and explore products R&D opportunities a From efforts

XX. Slide review now outlook. Moving I'll to our

the to Europe current sentiment. quarter, to the Looking we volumes XX% ahead expect XX% anticipate seasonal higher China and quarter. experience on fourth America, demand we, will TiOX And declines into third North based the in customer from decline therefore,

relatively the flat to We third expect zircon compared to demand quarter. remain

for expectations improvement competitive and zircon our quarter our previous to moderated have dynamics. the anticipate from Additionally, pricing forecast, relatively TiOX fourth flat, slightly We and to demand reflecting pricing current our be pricing be in down.

will to rates selling cost tons in and through the benefit range from the our see start the operating XX%. drive will our fixed This cost primarily we an in remain expect We absorption, structures, in of cost quarter. of improvement to lower the

of our in adjusted rate of moves, EBITDA be unfavorable and be to quarter these market the the range. exchange operational teens $XXX margin range assumptions, to with our and million high $XXX to million, adjusted a result combined in As the expect recent we fourth EBITDA

the to to regards at our for following cash net unchanged With remain cash, we the year: $XXX million. interest expect

$X to projects expenditure Our be Africa expected less in taxes South million, now capital deductible. than are net cash as is significant for

are into million, quarter. we approximately inventory now by expecting driving demand cash goods had of approximately as working in fourth be to higher be finished some a million driven $XXX the seen year weaker-than-expected $XX capital And $XXX levels million XXXX. to capital for market Our expenditures shift capital to use are the the early we expected

the full the to we as our the owing our flow We levels outlook. be tailwind For in expect to now use, slight do free recovers. to shift a inventory from market year, cash market a see expect

I'd before briefly allocation Turning to to questions. turning investors like capital XX, of remind priorities Slide to our

Our capital allocation strategy has not changed.

prioritize our our from value vertical are essential maximizing business strategy advancing to for in integration. and continue We investments the that

dividend remains remain strengthening also priority. as liquidity our We a and paydown recovers, our and the on debt market resuming focused

finally, earth the of And opportunities at assess to rare time. high-growth focus active strategic space, as emerge, including an they which continue is we'll ours area the

on an happen. We will as any provide they developments update

move call. now the we'll the that, of with Q&A And portion to

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

Operator

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

John McNulty

were in you when of couple side things XXXX a to. So lower a at that And would those is I you'll you that had levels cost were I start because downtime some that puts in you're guess the running a out bridge inventory? to be had reverse lot be that Can you quantify rates. running there that second XXXX. of the inventory to takes. utilization look has you you and are in stand through now 'XX, all efficiency there help 'XX how terms XXXX work operational alluding issues to that cost of into were kind of guess and on benefit, One high the and at to some through higher high-cost

John Romano

John. Thanks, Yes.

LCM downside, I'll previously. lot So the calling We've whether million at about these roughly of of idles. standpoint $XX an a a maybe running -- we the rates, the just from the issues referenced that's some start things operational lower quarter of with or on talked

So piece it. that's a of

more doing made this operational sole months. CEO and to some X about also started reliability. last I've about I've spend can I'd my operating actually I working try that XX% role assets of And the we're -- of spent, to more probably on some now out volume. I time the the on been work And say, the efficiency to do what reference absence in extract with about of in to for think our focusing time of team we

some elements we when about were benefits from were all neutron, could about there neutron, If we you talking of talking volume. the from neutron spent that a that time of to come were going and lot remember, come

the is control, the predictive we're routine operational we've this by doing and lower through our using management neutron that improve supported position. focusing we're to ultimately that automated what that uptime this that work lower will lead implementation Now process to through work technology efficiency maintenance and the on will advanced done better reliability and cost costs,

our as a put on providing it. on will that sizing of be we'll believe it We're to bit but that of process the be lot a in on what We're more can time that color team a and that and and out operational sizable We that. come ready spend that, confirm little not number opportunity. improvement, with a we line time is, I do

John McNulty

sorry, you be worked of enough. Fair per that Okay. quarter, you high-cost having what the And -- to million benefit was would -- just through on part was about were of talking what I'm the the what the inventory that be clear? $XX

John Srivisal

on to low $XX end, quarter. $XX and John previously, we've million up $XX the million mentioned mentioned, to $XX million -- a as million as

John Romano

think talk at about lower you again, capacity running we about those when roughly utilization. So running those at rates, XX%

So you size that a million X. can to $XX by a opportunity and million to multiply $XX quarter

John McNulty

Yes. it. Got

Okay. guess would just I the be then No, tariffs. fair. that's question And second around

this put the in earlier had place ones you've EU So year.

And telling out? EU us to then playbook think how of now. that them how You've and play about if out should for the you're the the will maybe in EU changes what some Brazil around got Brazil seeing I tariffs help play yet XXXX? the is about behavior, in there you can guess, us

John Romano

So EU specific to the first.

states would November to come So the EU that then And EU voting the in once early will member through the go have happens, out we that duty. what process. a would as expect recommend final they with

in of So early the of ultimately the probably in quarter first solidified being final early duty kind February. year, is January,

the So the recommending is that work yet. come been with an regards EU's to to but what should duty, on final final not end have duties implemented the process

those of eggs on as think they're are When markets. these not those before doing and duties affected or midterm, to the they going profile some duties is absorbing China or to duty sales about continue decision or export what they figure tariffs those trying adjust out to we areas, what their a make final potentially they're in whether to

seeing -- the of when implications what So and has some some I have now, seeing we're we're not reference -- fourth quarter statements that to in really are. we some of out is with more that even China, We're little probably it repositioning In would we're the volume now. fair we that -- volume, not a the we expected competitive say made of I seeing prepared Chinese bit right amount that I that. activity. are would seen We're have do in think areas, that from -- there some duty of in a the

duties. they of place perspective out that came I about Brazil. And not provisionals months we're think be. into So They in that's going up ultimate typically just duty announced provisional with just dissimilar that, to the early for process, October. to from Europe, what before Brazil duties with the come their is those in stay X

that bit some we we of on to we to So it's term, comment with there. XXXX, a as should mid- And this volume the term, why happening these But we positive be -- it's duties I roll going that made see are long improvement. that that's a choppy start think made us. into to it's for short out what's

Operator

Josh Your UBS. next with question Spector comes from

Joshua Spector

I quarter. to of question on ask had similar on but a specifically fourth side, wanted kind cost the I

look do mean, offsetting sequentially? be just why as sequentially, is makes clearly, So you the as sense, some what's that really down you we're case? not benefit I that. with earnings bridge back. But volume the your along guide, seeing Or down, with the you that that's of bridge maybe to cost come Can it

John Romano

But we thought. And lower you but again, through quickly cost so as let have maybe to John, roll books, I'll we start on moving inventory can tons would and seeing not the then have that's add I'll as we it. are

a be we the bit we in guide thought X% our be expected. in quarter fourth going little if were I We seasonality to to fourth on We're was bit on of assuming that little would more we when than call, last remember you seasonality seeing Again, quarter. provided XX%. what we think -- the a

So now could XX% be to we're that saying seasonality XX%.

longer inventory. So it's taking work high-cost that of to through for us some

factored as of to end as John? inventory back lower and into start on higher line into should latter of probably say cost quarter of I'd guide, and we going the some -- December. it's the should part November enter start the that the we that -- see, we Although that the bottom

John Srivisal

well in think cost see seeing Yes. other of some you're some is as your I that we announces, No, do higher the here. Josh, gap

we currency. a are for So example, seeing in headwind

other significant mentioned much Additionally, do are the more to of in And being freight some as just some QX. not revenue in we being available lanes rates the quarter here. of you have due the that then

John Romano

maybe that, million color just million. on little between somewhere that and And FX number a $XX is $X

Joshua Spector

just be That to Okay. guess operational sense. specific side. on the makes I

seems sequential like go headwind. but mean $XX gets doesn't it I million it entirely it away. So the better,

John's that's fair? $XX something like it $XX million, Or answered -- with Is you quarter. differently? would that range that there's million maybe quarter, you questions fourth a $XX So characterize million in still

John Srivisal

right That's range. about the

Joshua Spector

Okay. means And of follow-up points between and not John's if staying share around the maybe dynamics. any I'm some you share Europe. China. material gain that again, assume said I in other repositioning I square additional to competitive could and what home trying seeing say there some just or one maybe in movement taking off

maybe or of more So buying buyers mean some that does the Western Chinese versus you more what that material expected? capturing other producers share are

John Romano

of be looking in place, it's a but there because, not piece as China lot it duties think a it's because absorbing both, predominantly forever. long that buying are the again, customers that I of at as mixture the are they're put may

We recall, made think some quarter actually it quarter did get that our around have on price we increases moving quarter, a the we into of lot quarter. did when I was competitive that last choppy, improvement. you get comment forecast upon that fourth but had I in And we There said, some if activity, call, depends implemented in -- were the third the third the price -- were would the like some I in the mix. region. was improvement first price we

had we ago, competitive that, were able the fourth quarter. which muted months assumptions that we are to And increases any roll much the pretty we X some some activity, into quarter. implement seeing And that would in fourth price

the see think is pattern to customers when have to that, So moving buying now up as would say, And think tailwind are I'd that's you we start getting, going that that had would price a that typically about them little pricing buying moving -- related demand a we if up, inventory bit had competitive bit more would we price a that a we're ahead increase. pricing there not have activity, not is is of that improvement. and going expected

hope I question. that the answers

Operator

question comes from Begleiter next Bank. David with Deutsche Your

David Begleiter

the mean at cost through the and some efficiency does costs to, looking point, John, plan takeout that initiatives, on this lead you're assets at this related assets? indirect these more and working TiOX a to formal direct could

John Romano

that time line Yes. program what time a will Well, make that actually achievable, a together. of we some I to attached with that place have out team. sure we're operational said, in a want and we close target will again, and Again, our cost a having to point I'm to -- identifiable, in we've that tell you like lot with that's specific at is. got it. come I spending I internally, put for time I'm

was around what there of the we technology through to at the piece a we enhancements whole get us process of better say, again, of to was going allow through neutron communicating, when that purpose neutron, doing length I'd of But were volume. that cost went is, and

process we get what better reliability improved through our going Now portion control, was same previously through efficiency, that our working get assets. -- that can reliability, through what do through in identifying about were to and volume come we're of our process maintenance automated a through working thinking we

short we come what the question with out is a a and answer is So to specific will a with line. that more your on number target time

that out Just today. to not put ready of as

David Begleiter

layer lower with the in production to maybe for us 'XX does it. EBITDA? that cost And to neutron help is Got bridge of another mean 'XX savings well the as to addition

John Romano

the that okay, million saying on I in Yes. so it's we But volume. it's it's I'm were another talked we saying going attached I'm neutron the advantages neutron, $XXX -- again, not get to the So to number but about come initiative to were to neutron. neutron, million we not -- that of the that from same would to say top neutron going attached that $XXX right?

reliability seeing operating place, put going of work, saying to volume, to in that to more work piece through which doing get would that a that allow we're assets our we're not that a use that technology, same What is us the we're we're efficiently. efficiency process all

color will we'll a plan XXXX. into factor We it and factor when put time have provide into that specific don't and -- but we have So on line, it more XXXX, together. a will solid

John Srivisal

that think to expect we don't But I important it's also capital achieve savings. in significant to order those note

John Romano

very a you. This to a It's throw at capital to point. number that's Yes, another going isn't we're be that good John. big going point, great

to what put is what how operate going and think can do strategy already assets. we implementation with we've we're different of those This in a the we around place

Operator

question next Sachs. with from Duffy comes Goldman Your Fischer

Patrick Fischer

of couple price. on a Just questions

first, those the then X for do you then where we're prices on ore see third see where indirect China, geographies going going year, U.S.? do the negotiations that, as And through And one relative year? you, moving? see for do the you where Europe next pricing you but between now for the more prices just next today, it's relative the and So

John Romano

Thanks for question. the Yes.

there's what a we that more lot China So historically don't competitive pricing would low. activity competitive say is in pricing, Europe. been activity typically China. but always has regional in There's I provide

we're almost we would board say, volume volume, -- gained a where every I in of operate the market last, the win share. And have we had of a the competitive it's the that questions course to several end year. we we've period going over a lose to I'd year, say months quiet and around we prior activity. Look, into some loss

used share. There's share. lost price areas There's areas to where where So where gained there's we've areas we've we've protect share.

part, talked protect that a of right latter that been that the in probably duty in XX,XXX East active Middle price a in Saudi very and a We East, about more Middle is obviously part duties Middle some launched not is to some because Europe lot focused is now. -- the East, -- market. the have say share it's would Asia. ton the -- the it's had a had duty biggest it's and a in using The I And Arabia an -- there. area investigation It's about not we that the plant Arabia. of Saudi only we've on market

That being said, the into. Middle East is to a pretty moving active be area for volume China

So I'd in but sure. say any activity I'd it's regionally been hasn't price Europe change, our competitive Americas than significant mixed, and and there say, in more profile, the Asia for

Patrick Fischer

on And then views ore?

John Romano

ore as the expect market move up. prices start Yes. would up, picks to to Look, you

ore between and at this the think into China, into I'd we saw stage to And but end in done end about significant XXXX, change demand now expect We're of stimulus have much moving So the we any, generate patterns going at we when say, about it talked do that expecting stable. recovery. we been quarter, particular again, relatively the this hasn't help. year, -- will we in -- prices although slowdown a that's the of the

of the a Housing ago, you've that was see so housing a days market got is coatings we Journal Wall since part big Street worst think, I business, XXXX. pickup. reported, should cuts, rate that X Interest our the

to They've pretty to all producers running stable higher up. XXXX. through would you TiOX start So at to market market suppressed been relatively prices -- move long customers ore rates, year as the in up, start starts a our expect pick

Patrick Fischer

just then And enough. Fair last one, if I one could.

build you the with And in then higher running selling expectations you're volumes quarter. TiOX you're in than well? as inventory, How the inventory On guidance? build this also your we will much zircon

John Romano

I'll you start made there. maybe volumes, of zircon We I'll give that so -- little So bit reference a color.

be third an second were the indication quarter, quarter, were we going the gave XX%. to we that and flattish to we in So down

it, what tons. call So to X,XXX That's means. X,XXX kind XX%, XX% of

China. demand half that other to was half in of that the About QX, from were weaker rolled and orders QX

So flat in we quarter. fourth forecasted the sales

zircon So there's a on not not lot of of movement. lot the a We're inventory building side.

in build the previously On to inventory to going X% TiOX, the seasonal XX% from that between between XX%. XX% we indicated now delta what largely demand, is

it's, not above So It's expected call X% amount. material would what a it, have previously. to we X%

what we recovery as than quarter start the the it's we in saw XXXX, big a first going be fourth in don't about significantly again, we the first XXXX, of think of to quarter the And to which in I saw think -- bump. different

Again, see our of a we're there's feeling getting and that to quarter we can't choppy, I lot -- economy. should feedback maybe we based can the although are into housing, this the that is control pretty control first the bit recovery. on we things can't we confident influence. a I customers but as control move start XXXX, from a

Operator

Your from next question comes John Roberts Mizuho. with

John Ezekiel Roberts

just you're that actually it? are at the It's of so Chinese not they're customer anticipation In you buying building customers the tariffs and/or level? think inventory duties, do seeing

John Romano

the for customers don't their don't thanks are I changing behavior buying look, I the significantly. -- -- our question. that think think

were a I I buyer, if and knew I duties was that be material. buying out think I there, the would that

they're they historically. have buying amounts I than would think similar

you much that difference their Western use if they price there's in suppliers, versus also a how to formulation. Remember, in about a significant to limit China a also of continue lot think in there's is pricing quality. is can There the a and other where difference

front it? a go should buy in into volumes they believe duties those So believe be they I our volumes need because that from producers. they're of buying that place, of there's significantly buying as eat volume portion into absolutely they significant to don't I could that quality inventory are. higher

John Ezekiel Roberts

yet in XXXX? range capital do for have spending you Okay. And a

John Romano

$XX the mentioned we shifting but speed is be that and just the We're down to our track, a being million, the are to with on first quarter of cash nothing our was projects has about with spend which just going spending So some capital XXXX it's and implemented. in that into do event.

I working we'll some that projects we'd coming, because some gave we've around think that last we call got $XXX guidance be on. are still on that be million the

on. You've got that's Australia coming capacity in

of million, million, in to $XXX but expect is start tail in shift only that that's XXXX. going that And maybe into we XXXX, spend to to $XXX million $XXX say, we get to XXXX, now capital $XX million to $XXX from off were the we the XXXs. into going attached a even spend high to So million extra XX% as $XXX would million range, getting

Operator

comes Your with Vincent question Andrews Morgan Stanley. from next

John Romano

Vince?

Operator

Zekauskas next Your with from Jeff question comes JPMorgan.

Jeffrey Zekauskas

look very changed they compare were, in they them at much? you you prices to May, September European If TiOX say, and where have

John Romano

a changed On average, prices lot, some mix haven't there Jeff, but has shift. been

of we was regions that been some the has actually improvement, get mentioned, activity. some quarter third competitive did one in price there the I as So but where

Europe, When and no Middle move expecting East Again, competitive third kind QX there our on about the kind was fourth we of of has all and we significant some into a similar flat one transition pricing but grouped relatively we activity, go into as region, the the it downside. in and to been Africa, we're -- think QX, quarter.

we said, would to But make maintain we're offsetting our on sure best And we we adjustments doing pricing, share. being that as to need we we're making and protect define that going what the where competitive there can region. is in some strategic that, but to, activity

Jeffrey Zekauskas

export China How Brazil much does TiOX to annually?

John Romano

market of out tons that's a XXX,XXX XXX,XXX tons. About

Jeffrey Zekauskas

Can you Malaysian And seems pressure. that Is production lastly, under just or are overall? that prices about what then from? or that's production Great. zircon it Chinese stemming talk

John Romano

I'd mix I the we just different and we variety there for say, is zircon, zircon of of mixture because but that one say, would sell. lower bigger X, demand of have a grade some all grades is, It's a strictly

grade So push zircon. than grade a say, zircon there's lower there is for, I'd higher bigger

comes zircon in in it form But to and a your back typically lower point, goes out into more that market China price. there that the bit the then is concentrate some of is

is there some competitive So pricing.

just seeing We in going There actually quarter. on price the some mix. not are is fourth reduction

quarter demand we at China to this consumer again, portion of some a demand downside was on And talking but of haven't sales, the a quarter the in And is that driving great, that. that's about big we it's actually the volume into and any our real of not did is we the lot saw third stage. fourth a as that that pickup is China. seen mention zircon, in stimulus, related reflecting big but China

will generate an that causing it, -- it's going So And there's -- mix into a is on. we're a different it. I of result impact move bit there's the we next hopeful a a on think demand as implementation activity competitive grade But those positive there's grade results having as that's efforts year. more or demand, little

Jeffrey Zekauskas

And growing in lastly, there TiOX other maybe a percent growing think then to down overall do TiOX be do but be growing see up? is you the And China, seem demand you It the this year? U.S., in Do few to seem growing doesn't be are demand seem flat you that? doesn't doesn't areas. that to How is market in coatings Europe. think or or

John Romano

be $XXX our to regards going it's you can the we at million. out There's a quarter, Well, I put tell that. EBITDA range we can to the which in volume saying see if numbers, we -- get what look to into million obviously fourth we spread look at with in So right? that $XXX that we the

be of to our low volumes the going to the XX% are at prior even range, XX% up And year. from the end

seeing QX in are end year. we It's just to as the even a the of it front So we entered that QX, slow started down, And came was lot of an improvement. softer. in

Jeffrey Zekauskas

That in growing market is overall global just market global demand. mean TiOX XXXX. I the But

John Romano

significantly. growing been robust It's slightly up a global India But has very it say basis, I would to not in on and that flattish.

Operator

Alembic Ahmed with from Your next Hassan comes question Global.

Hassan Ahmed

Europe you about release, demand experience guys will sort declines how press higher North guys talked China, mentioned the customer of America, on based In QX, of sentiment. sort regions, you and the in

of is TiOX things inventory of that lean so on was I So commodities, mean, to sort destocking running the relative the mean, severe customers thesis one side other ridiculously were both that, levels. the, obviously, at TiOX of within I

what would customer So I but thought maybe expect and will you off that the sentiment that expect to at inventory is? not industry Should in maybe customer Has new totally sentiment inventories? we such aspect, paradigm I demand run changed we levels? reconcile not snap Should trying would forever? snap very a seen that understand back back? mean, a of just I So this lean have I'm to -- seasonality significant have understand declines? based

John Romano

X% this the what we And it's second Hassan, -- And XX% have in go of great the in recovery, indicative what would a first quarter, the we was year, pickup saw quarter. early again, back pickup to that question. seen I'll the said of the was in we it end front and was.

back is. different made customers a companies again, the are. we started the ours, slow to I we coatings housing our not the as this say lot market And than about that where they're of got reference I'd And year, are of big saying, things into things of down. And half

rates I So slowing a have them would really this positive bit. recovery we Interest expected would to. as is not say, have a taken,

TiOX, So in America, of heavily Because in inventory coatings slurry on that. U.S. of the or the maybe capability our let's pre-dispersed a form inventory. and where a North you point to lot only your to of sold in have are weighted about talk we're certain sales amount

of about customers year, their lot our working at going It's to at be looking are my up belief the forever. that inventory, at moving load year, to their looking balance than goods big going into piled backlog so the and a be that's TiOX sheet, a drawdowns the more inventory finished of capital, next talking where end of we're a they've managing

a would say goods. we I So buildup there's don't in think that finished been big inventory

about mean a XXXX, that just As uncertainty. you I earlier I we when the that's it, were sentiment world. economists year more China, and it's in around in the move unprecedented elections reported Europe think into bit this there XX think

economy what into that. and think to of going recover. minds influence. a the to manage paradigm But that people's that Again, lots have confident don't still can the do. will try we around So what we are I is things I there's that market can't I what control playing can I'm there's shift.

as recover. just our as although it's delayed, longer market a as has but do happen. we many investors are don't frustrated I we're paradigm only cycle how expected, think for and around where we've and that I'll recovery will to than we been believe age I is going there's this that why it cycles shift, been have believe is use the and a And absolutely would taken through. many reference Again, my of

Hassan Ahmed

would was as side Fair side number enough. the tons antidumping And was you volume the enough. of that quarter, on correctly Fair that Saudi things. India. clear. EU, and follow-up sort right? around Very recently And another tons, if as a Brazil gave the the mean, on it XX,XXX things I I ballpark if the And last of recall Arabia adds call, XXX,XXX you I've heard play. be in this of of correctly,

into So how capture? play, to measures let's guys of mean, that these correct actually understand, number, in XXX,XXX I'm assume is -- the if tons second we how could when, as do trying much you think about just effect. of all I and And go for Tronox a should at could that is you

John Romano

It's a your Only China right. Saudi is XX,XXX, that, Arabia about in great it. and I market math said XX,XXX question, is has of

XXX,XXX, tons So about the in tons-ish in That's right tons-ish XXX,XXX number, India, though. XXX,XXX XXX,XXX the EU. call in it Brazil, XXX,XXX

$XXX and weren't it, up pigment, if $X,XXX percentage you They if again, dollar range all duties of basis, per go amount $XXX of make to but those ton it's Brazilian reference tons, ton. I a So insignificant. not finished know, into to XXX,XXX the from or don't duties per place didn't a

are significant again, the for provisional a determination final and is. those before be X duties. they'll make months place are provisionals, So And in there on duty now what they as

those a with of That's let's X% got China use impact an -- tariffs to year see. you the X TiOX There's tons market duty a the as XXX Trump in that top on added are XXX,XXX was million-ton a kind Americas place. on in always example. should it. XX,XXX We've there, just XX% the imports that. of U.S. So into

Operator

[Operator next Leithead with comes Instructions] Mike from question Barclays. Your

Michael Leithead

Great.

on seems Just level? get back say, of the time million a It added about, one is inventory. to trapped plan to years, I like cash game in frame few over the that's $XXX inventory. the past question what you've that normal guess or

activity I downstream And is your part because that of pigment relatedly, ore assume the the inventory, dynamic mismatch utilization. temporary right, and of mine in

to So is term? there cash shorter selling or of thought harvest that any position help to some

John Srivisal

past question. we that for recognize, have up over years. significant you several as Mike, a thanks built inventory And the

that, As because integration have mentioned -- we a you have. the and that that than we most frankly, the And different previously, of saw ore of in do QX. we others vertical profile

was but raw So there, feedstock relating we assets. did end up to materials building it inventory our

we feedstock, that the QX, build And we goods but finished inventory then in did did up end using there.

up, volumes per is even going are going though ton we also our seeing, are So cost down.

a building are we much inventory, there. at cost it's So better but

get able portion over years But the will on look look to would that. might be you build, couple we as frankly, at market from expect in it value cash So more we -- we depend expect environment. do significant when of you extract back of to if to a back inventory, a

John Romano

And maybe of on We that million this color do quarter. we mean occasionally, ilmenite. ilmenite sold the ore from sell $X category just I a little side. the other more inventory worth bit in

mineral heavy concentrate. some also We sold

a So be out in what -- the like -- market. the and a big it's strategy formulating those lot are availability to integration but and a we ore of are for. seller on done a is vertical we on based go not basis spot more That's of

$XXX that $XXX -- to advantage through own integration have supply the having vertical due ore a high-grade and Again, we to our $XXX feedstock.

that planning supplier of was us. accretive and go acquisition the to develop market. that a Cristal of the to strategy process something out We've reasons We were or that's for made the and So we're to Cristal we change a through going acquisition one actually supplier. the it's not the been we're where before be

Operator

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

Roger Spitz

TiOX be heard to Jeff, XXXX. that up Global volumes flat versus You correctly. XXXX slightly if to you only up your that earlier to I XX% XX% to expect said up, industry

in doing seeding What producers? you're you're or to there. do who it right of questions the is secondly, the it in markets that right sort market market And take the the place Chinese is think share? X you So Is just share?

John Romano

we is. consultants our It's a don't go of for. question. the on -- I'll a demand to good complete global what have I That's back what for the use lot visibility TiOX

up. to slightly flat So up to I'd say

that I are the team, good ourselves customers strategy faster our to done than us, And than every align that our that growing for is we've aligning of with ourselves say think reasonably will I a growing are We But faster job market. commercial do in with market. the customers with the region.

yourselves you've And price by because people, customers. using to gain without doing share can attached that, right the naturally, the right you

believe team majority So are that has done at the customers, right And our of those I job the growing are ones commercial of looking the who I that's right think are why rates. very a who at volume. good our

And it some a we which range than in little the different the we bit you seeing the to adjustment XX%, be said of get again, XX% But of again, [ also we're that. ], to could higher seasonal XXX that not of range quarter, were expecting. fourth

right our total going growth and So better I as, what regions, is that globe. get a on We'll into we it. quarter the first our right don't growing, customers are clear the those with this have alignment view Bob, ones in be the to the year it's customers. have the number is visibility as have But the next on year, that for

Operator

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

Tronox (TROX) 25 Oct 242024 Q3 Earnings call transcript