SQM - Earnings call transcript Q4 2021 | Sociedad Química y Minera de Chile S.A.

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Operator

Good day, and welcome to the SQM Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Kelly O'Brien, Head of Investor Relations. Please go ahead.

Kelly O'Brien

morning. Good joining XXXX for Conference Fourth SQM's you Earnings Quarter Call. Thank and call webcasted will conference is be This recorded being live.

where uploaded Our earnings of our a been summary the webcast. with presentation also website link to to press release the and results a you find can a have

and on today Pablo of President Iodine Ricardo answer be of the business; and will Speaking Executive also Ramos, and Vice Officer; the Vice Executive the Diaz, business Chief Illanes, Executive call Altimiras, available President questions. Gerardo any Financial be will Chief Nitrates Officer; Carlos Lithium to

public in sustainable by Commission Ramos. including made future with result I be to update Exchange our information, our in press and that Before business you that in other developments stated statements we line begin, anticipated other under our let statements, statements, from with factors. me such Risks, assume to and successfully We forward-looking securities not development currently statements implement new economic the synergies are issued such earnings the judgment statements as otherwise, results leave future CEO, that yesterday anticipated conference except remind now of federal Securities profitability, company's and those uncertainties and a SQM as affect service facts accuracy estimates materially you and could the items, to risks, no these cause together expenses factors are filings considered ability or or Ricardo laws. are actual statements that financial growth, concerning release required Any with information a of is or the in performances, in on reflecting statements historical of term revenues, statements should are this outlook, identified the law. the light plan. uncertainties forward-looking and best whether cost U.S. could factors involve obligation product differ as based other of and those number of defined forward-looking available our such forward-looking

Ricardo Ramos

Thank today. morning, thank you, for you the call Kelly. and Good joining

XXXX by prices Our earnings during driven sales lines. period earnings the higher considerably volumes were than last quarter during almost same These higher year. fourth all results our and reported the across were business significantly of

For believe previous than will in net year. same net the reasons, income be in was saw XXXX reported considerably that the Xx our prices during markets prices prices fertilizer in average reported XXXX. XXXX average and over higher during increase we the The XXXX, higher income the than

of potassium almost the the chloride in metric line business quarter over prices in prices when had approximately XXXX decade. during haven't line fourth has an average pricing impact higher reached seen nitrate. ton, during And This Our SPN our that a environment global potassium XX% on also the was in to $XXX compared been business per the price quarter fourth the average prices when was pricing the XXXX XXXX. to compared the equilibrium. a seen the of trend supply-demand surpassing over result the This to environment tight pricing same XXXX Positive with in quarter during led expecting the during continue XX% year, market quarter increasing upward iodine of recovery strong fourth to third prices the as We're XXXX. period levels. a in news pre-pandemic with strong also

the approximately tons is to $XX,XXX us capacity quarter the met XXXX, metric fourth tons with And We will to tons. price metric begin over sold seawater operations X,XXX approximately they volumes sales when during per year. records of during working XXX,XXX Orcoma the the expected it metric our In the X,XXX market, XX,XXX new an and surpassed in for average are operations. specific period. on the during of a Pampa we an at capacity iodine a ceilings. tons leaching volumes fixed lithium price during of XXXX. We XX% expanding or using price additional working on sales on bring Project are to with Approximately our Tarapacá increase by expect at and Region, ton sell variable allow effective In XXXX to parallel, next the contracted are floors capacity we the metric in

While approximately have are important for sales have of the XX% to a between linked will volume variable to contracted lag open. a see XX% our we indices. The volumes It's that we specific price market remember of XXXX prices remaining variable be of first prices because significantly the the contracts. the prices prices realized of reported that fourth XXXX and second than our during our the XXXX. quarter higher will believe We price structure average in prices of and our still quarter

the that during XXXX. years, of the metric of about recent volumes of grow We're in successful and extremely believe metric Our we will during completed the XX,XXX proud XXX,XXX expansion tons to schedule. tons lithium expansion of be hydroxide XXX,XXX to XXXX, half carbonate Additionally, ahead metric of should sales tons first

new a to metric with facility Lithium in project, announced capacity lithium at Chile [Technical XXX,XXX this project was that We expand Difficulty] will we and tons, XX,XXX further metric and our have working hydroxide lithium Carmen on tons our begun carbonate respectively.

We an Next be previously Atacama. only to that goal reduce usage water of development, remind of and committed approximately CapEx million. de and, goals environmental and strong with $XXX this I CapEx improvements, brine yield Salar engineering after our production teams. $X to met in CapEx effort was of This CapEx possible growth carbon our become was our previously the included you to that research a extraction, expected course, plans expertise year, low and relatively years billion by remain in the have footprint announced and disclosed. not with

Kelly O'Brien

now Operator, questions. go to we'll

Operator

[Operator Instructions].

with Cesar Perez-Novoa BTG question comes from first Pactual. The

Cesar Perez-Novoa

I that would end. clear, example, the in to your pricing. Could the from couple for please indexation, for is fixed In the that year. Salar. current And facility can spot. a roll to there of example, XX for some the of would that state XX%, the release, the to of question is quarter the you side $XXX understand. questions. referenced may, benchmark December, theoretical XX% And $X what stellar of Congratulations And be provide for press be would Or my tied conduct remaining be And Also is, million clear separate so, the will regulatory that may is to question perhaps time would that go a a total you entail, benchmark? billion production we you program? to upgrade? XX% volume SQM a example you this days And whatever the program out questions pricing parameters, this? XX% if my any to to other a spot? XXX,XXX XX% to academic and If would and XX Could provide hurdles certainly that I ton on open when priced have disclosure final goal what expansion added pass-through have in you the days, Chilean certainly that market. filed around year. late that lithium part announcement are Is this yesterday's per Those expansion? My

Ricardo Ramos

your you Thank question. for

make to of try You a lot questions. -- I your answer will all

natural to market of world-recognized administrative due contract-linked think -- our the we the we a prices. follow all, actual obviously, And indices, the price different is prices, to well, operational First or reason: lag represent there our which to reason. we're world closely contract, according

XXX. regarding are very that So market -- the selling we asked with try market. we And -- variable capacity, to product for to for We're close year, and lithium our hydroxide capacity that expect are in lithium we to middle lithium carbonate with expanded Salar expansion follow the the in our following. and carbonate that expanding we lithium and the the this of you

the that completed time, our in will this And expand expect early complete we already to the at So that we capacity year. middle next working year. be expect in we of But are to it XXX,XXX. same

Cesar Perez-Novoa

metric in do Okay. for hydroxide, But XX,XXX XX,XXX that is the Are that this for you December this separate to of you total XXX? carbonate, lithium are tons, as of to a going is expansion? a for this going made in stages? incremental work filed production Or you part XX,XXX

Ricardo Ramos

asking. Okay. the permit are All are expansion of our that part environmental

Operator

Our next from Jackson with Joel call comes BMO.

comes Corinne with question from Bank. next the Blanchard disconnected, caller Deutsche the As

Corinne Blanchard

good on Congratulation quarter. a

Just if expect for a maybe that you we range on we any can or can like lithium increase go the XXXX? color could or back provide any pricing, year-over-year

Ricardo Ramos

contract, Since open, the XX% or this is final year. variable price still forecast we price XX% cannot know for under is

with we that during say fourth can quarter compared first last However, the of the year. higher half, will be significantly price

Corinne Blanchard

to That's you -- on you benchmark you well? do? or to Okay. negotiation, intend question remaining you Do the what Or be export XX% will One fair. follow-up pricing, doing Will prices? still as index on intend for more actually. do do like you -- do like up the would been

Ricardo Ramos

to the going And that. to decide still this to indices. formula our to reviewing is and if obviously a a on We're try later according maximize that, we're going fixed or on we margin market be

Corinne Blanchard

if throughout some inflation I question for expect industries. related Or just you seeing what on a see coming cost. on can, most like impact mentioned Last maybe XXXX? do comment the Can through last how to most calls you of you did it the maybe CapEx? And had quarter, to for

Gerardo Illanes

of are and increased because raw all of over world is cost this Corinne, inflationary the of the course, Gerardo labor. Illanes. materials there Well, some happening pressures

Of be cost course, on we are But rate how any see will also change and positively we significant that strategy. exchange affected by there the looks. sometimes don't it our

Operator

Ben from comes question next The Scotiabank. Isaacson with

Benjamin Isaacson

approach to ask from you quarter. pricing great different it again, way. the on and a again going a Congrats try I'm question

So from pricing ceiling, with be? your prices contracted and a so excluding right are XX% change or XX% we whole is know variable, for now, XX%, yet. what year XX% where not If selling what they if would didn't that fixed the average variable price and today just

Ricardo Ramos

-- want price to speaking. about we that question have fixed disclosure that it's I there's I that clients some question said probably of reason don't some But if with confidential. good Ricardo, very now Ben, today know of prices. to that And course, prefer that, will the with won't lithium. I that, fixed price to know answer. agreements and environment, -- yes, why price I if nothing not the the don't you is I the answer a And very price are

the to going that probably be is Just than today's different price prices.

price today, XX are means indices, before. the price course, XXXX You see this these it they close that But the last it even year our is XX% realized and in going because contracts, price It higher continue today and And the we even price. than to though use would indices as days. high. though sales means our reflect year be -- very trend all the the significantly the will we will indicators reflect the would of to be with is for pricing the today, if price

Benjamin Isaacson

of have no with Number very left. is where different maybe course. do in And actually selling? I what's just on just And you about any sales feedstocks, and there, what questions overall. one you to you assets I about just Ukraine But talk three Maybe, Europe? Europe? quick sell Europe to to those have and happening risk sales make you your and do you believe in have Ukraine? don't in Russia talk Can you exposure Europe. are are

Ricardo Ramos

something. But amount key It for important amount not sell suffering. the issue terms people first, the situation Belarus. of moving Ukraine. Ben, and company us the to Russia. of deeply small the market. your in can very very and this situation point. first in have that We in solved Europe as business. the The small question, short But Ukraine, markets Russia current is who regret mentioned, say not relevant in be time. are very in let hope fertilizers of of me support will -- for our for We Ukraine we Ukraine market course, current be We it's a to tragic or begin Russia That's you an for means us, fertilizers in our are

affecting recession going sales right expanded, almost or on if going don't are It market the I the our strong of is Europe it The about. Europe impact. the will direction. if I'm only price outlook it's of have strong. Ukraine The rest what agriculture our that you to Russia are future. and no, difficult in very But fertilizer up, award far, have and focused very Europe, you maintain today, about market is the this But and in have is means in a no without So is talking an course, business, strong. Belarus, in situation have you know for very Europe moving today,

Benjamin Isaacson

new that And we think just supply? leave see in there how Maybe question supply or were $XX of you ones. terms said quick Number at new the coming and you I'm not more Can I'll means is? timing $XX, iodine what about of prices two one, potential tight on supply mistaken. if talk actually the not? I $XX just Can about in of terms

Pablo Altimiras

you great are speaking. is And we to situation that we we activity last supply. we With the a saw Altimiras recovery were information not to is today, we not in Pablo that lot have supply. high iodine, demand. on the as explaining, year, regard seeing have of the But according saw the actually, price a seen that more level

So remains price at despite enter the quickly to the the a of project that for while cannot market. level, so

capability have end to we we short in the put that of But the at don't suppliers the the more So different depend we will on term. see product.

the year. -- expect the that's why the we will we in continue prices So current that growing is that situation expect something

Benjamin Isaacson

Can the again But in potash, stay it to flow allocated? immense about I'm is, of I that, free last program year. get cash how question, iodine, whatever going you're out free flow -- lithium amount sizable cash a mean lithium, And this this a spot you allocate just talk that in how not does if then spot CapEx price flow? sneak we trying after you. to from at got my would you generate and year. But cash you've free

Ricardo Ramos

Definitely, order CapEx. in to very to our good cash finance flow it's have

because, dividends. because significantly the finally, will -- both our we an receivables. to cash the continue X volumes and -- will That considering the will working hope that. best company great I the we And are the we of our above have CapEx, will are used the And very this amount accounts we think, is last very of great. or the work We And we will we pay account going in the years, important will finance good are are future receivables hard past we of some That's increase portion we for pay dividends. the be working sales good. some I increasing shareholders, flow we flow, do of will in with We course, and and doing our CapEx better, cash capital will shareholders. in of reduce to the and debt. for be dividend. these our do we X are because usually, company. our And additional for our A year higher, very better be we finance prices

Operator

with Our Citigroup. comes next question P.J. Juvekar from

Patrick Cunningham

Patrick Cunningham is on for This P.J.

share? an that, gain market sort demand enough, serious the as the high market demand a million question there I Could prices see and my you more can this think then up, competitors if on to grow kind us on So side opportunity supply to first is you of outlook could go for -- underlying is and give delay expansion, risk forecast you start over than see destruction? lithium keep aggressive broadly. to XXXX. by and X mean from yourself you're just demand And of where on faster you of tons see your starting flip would

Ricardo Ramos

speculation Well, going But in don't our best X of X close in next ago, XX,XXX. know to remember course, are what's we we capacity, we that Chile, only or question. X a were there's Means, or to not to your our year of doing lot years. happen increase years next really

XXX,XXX. the moving months now few in the to are We next

increasing during answer move capacity. in for we're will XXX,XXX. great We increase the That's next demand. doing this year first Meaning a to job the

working our in with Australia. Second, very we are partners hard

producing XX,XXX go expect will stage. the the a have in and to we project in metric stage, first next to interesting We Australia, very tons be probably

is lot total go metric this tons. close an that XXX,XXX get means the way It potential to demand. best us. the to to important, the our doing the for increase of of to next We are we Australia to project a trend positive stage And expect is benefits capacity

in main now to the best lithium, our provide It electric customers. of means because in to raw course, less will even or production we to demand but best logistics of XX,XXX is only And to not quantity focus yes. XX considering the but price means far, the the that means and -- ago, main, more plus term. than XX,XXX of trend is lithium the expensive, moving -- lithium, not X affected metric XX,XXX lot, produce are because the So be our positive cost expensive, don't years -- XXXX, materials XX the tons strong lithium the going clear from today, plus, is considering example into of it trend all that if a this near be more we're year of the to and the foresee as cars, quality demand, is

venture and Of more benefits a moving Australia, the that. course, lithium we're getting joint the in our to provide forward. is steadily in the XX,XXX best to Means order is but doing lithium market of

Patrick Cunningham

And on mentioned long that take opportunity you production? -- that XXX,XXX potentially. What that? to timeline How to venture go volumes, would get joint on to be there's those the an would tons to to

Ricardo Ramos

do summary, smartphone if rough will be to a What's know your Australia years, meeting and just for the us, I is the working in it's in X next the I living what we're near us future project room. was what our give X please? step? with about he's point view, in you here or of what overview, Mark Today going Mark, Australia in project. ask don't From the says, going do to he in think SQM to

Unidentified Company Representative

Thanks, Ricardo.

it's only also great industry. very the our this It's to Western for like important itself, battery Australia that not important mention for future partners, project relevant Wesfarmers. is First, partners, I'd for also SQM

already in fine the the well. half of infrastructure well in non-processing near first in is today product it The the of the have That's has a XXXX. mine it's as the and started first we continue of ever stakeholders growing having advancing is pipeline, of where today. received billion in both as products very partners. construction capital expectation Holland of Today, our refinery the concentrator many to mine. affecting split very important. of continue So hydroxide Mt. $X.X the project see in estimation the and very second X concentrator this between already project Australia, is The the expenditure lithium plant. we project Kwinana, Refinery with same with we And

we're the of that, in avoid is not, our course we expenditure inflationary We with world. Even the subject [indiscernible] that capital we with cannot are we project same However, continue -- every today current mentioned. pressure the expectations. already the And take and as we any estimation. world between today X build the working the Expansions decision as you X on years when upon expansion, made. in is plant will to

made yet, expansion present are when to to we not presenting the Board have time for and the comes. We documentation the that decision preparing

Patrick Cunningham

and then this question but less little And is and maybe one one one pricing specific another for on last a SPN.

a markets that we off direction plant Obviously, the Ukraine, should in Help show think quarter. plant fertilizer tremendous supply perhaps how and on specialty maybe eases bit. your If nutrition? pretty time As either up we prices price? specialty come So Russia extended move, me of pricing and underlying SPN how to saw to in your prices will spot this prices start for fertilizer risk nutrition think prices? swing about kind that tension affect about in what's lag or in overall

Pablo Altimiras

don't but food Ukraine is as see price you and it what will because of of could actually situation know also situation potentially, XXXX really such will doesn't that because is are the happen also that and prices important where Russia situation the already The pressure and The we the disclosed that pressure also is And is speaking. much will we know is affect products. happen, that good, cost of we up the the in things increase situation is we Well, We now, some that price prices. believe supply good. the Altimiras the trend that put influenced in SPN following potash -- regarding Pablo today potash continue. happening right Okay. good.

continue in the our trend way. So a that is price will positive expectation

Operator

comes Our next with from question Lucas JPMorgan. Ferreira

Lucas Ferreira

two. have I

kind of year. is follow-up your of increase the capital in one last first quarter a of The second

been I the think increase market one M&A, was quite be seeing in of we've active capital for the potential for the M&A reasons recently. and to ready

interesting went interesting question growth there investing opportunity from allowing of in prices, And could plate So expect prices to bit the to world? up. develop you're question. organic M&A, project more So my -- the second in or Chile, guys future? anywhere the any is still yields we That's your your the because if Should little or to probably else you you to if apart my in just Holland as if first opposed question understand is, to seeing any increase -- improving that for to asset is also what be in brines in in Mt. yields Chile. a production is you is

if extraction improving respecting So go with the right, for enough CORFO? your limits, just potential beyond capacity in if even is wondering there is technology more limits future, you you to have

Ricardo Ramos

or Lucas, businesses exploring new our about alternatives conservative We're Ricardo buying always for the value companies. company M&A we're and in Ramos quite or generate speaking. that shareholders, Yes.

that to our are to current lose doing in be that mind if today not, active good projects. focus priority If we our We can alternative not in is M&A, is find create going and value. an very keep

have projects our very past We were very are important -- complex. projects, complex

again. a -- second Carlos About the doing to product doing to it. are our to and we think of think that R&D keep the things again of focus we And we schedule the invest essential will in because That's of do of our can order keep the future delivering are what projects efforts the in today on it mainly in we explain game. for keep I lot market. a order ahead are We why question about

Carlos Diaz

plant and improve hydroxide in have doing of side, in we what to our to lot brine. R&D how and One and Yes, our regardless lithium Atacama yield Antofagasta. a say in in Salar we research carbonate are de

a one X of years, that improving develop and for been increase working X have that now, lot reduce on brine yields. have our working on been And to have our still we for we we to side huge in the lithium. projects or but our opposite because the we productions have to is successful time challenge continue we last our and So extraction

we our challenge, to So huge yield. have our successful that continue but expect and been now, increasing we is until

Operator

Our comes next BMO. from [indiscernible] question

Joel Jackson

you me? Do hear

Ricardo Ramos

and Loud clear.

Joel Jackson

Good. Joel Jackson, BMO.

I you earlier. want about at achieve have full maximum them had I'm Sorry, you a and what in problem carbonate could I questions. and ask if by one production Can out? to talk what you going produce wanted lithium you a one. to you XXXX to -- XXXX, few if capacity, go what LCE, can

Ricardo Ramos

It Joel, as that during be we metric press will the we the at to explained XXX,XXX months. the release, start increased the operating we next new in few capacity. tons expect means

to surprises very the start-up Day XXX,XXX little to new will But XXX,XXX tons That's be will some again the little we in bit production, the we we better last year. Carlos increase last are think probably means X mind high-quality much expected high-quality production, our Day things order will and need facilities. products XXX,XXX during at able not to close want hope conservative our we we the to in a this increase our deliver of to going X. this lithium But so mentioned working products of anyway, we very expect have I previously, to moving our going story. in will so and volumes, everything are XXX,XXX of mean So just of inventories I increase. increase is we we is in producing important have this This increase to is more the -- XX% XXX,XXX success XXX,XXX this just than that far If to sold a metric be of in from Keep carbonate. as our that with this year. years, course, are had To #X, capital, on. bit customer, the than kind the year deliver tons to final sell in direction tons target successful production. year, that we that XX% right year. be inventories far, more the we're we can metric sales. producing I XXX,XXX, customer we be But a probably, see. increase to from lithium metric to

review means position tons third XXX,XXX possible. Yes, is metric ready will Next year, XXX,XXX, market, depend the a is demand, because decision XXXX we on increased I'm already And be we be to will on to it It depend that are something next about completely market to close more least possible, the metric you. the that plus tons set that metric going everything. in XXX,XXX market sales quarters we I to the from be during fourth year. and the this production tons year to it in supply at capacity additional final will sure some supply, this be would it conditions, will the the But ready. if XXX,XXX that additional mentioned the probably than probably if request coming

year. capacity last see is clear XX is we the us months, market to end, during that and conditions our But We in lithium on the increase need review will will we our depend as One a end of this quality. fluid market, quarter. improve at we will the we will the is you will for can It's The quality market. do our to try the And that, it strategy best. that best. very thing review every extremely

to best And have And be will of our be be the quantity best to according our terms one to see. in we continue will year But business one. the we even We strategy increasing where will continue during better. will been the capacity, market next conditions. we

Joel Jackson

then the $XXX this be next to be, is exactly capital need -- Atacama XX,XXX kind you a And million? How million much be, $XXX would incremental CapEx to expectation of then million question total seemed what had CapEx would question to tons My would by to spend that the second $XXX small do go what get the second My million, the X is questions. CapEx from to of And XXXX out CapEx much intensity? now Okay. plan XXX,XXX? to from your to XXXX, versus how 'XX? billion what you $X year rise then $XXX to 'XX

Gerardo Illanes

$X.X expansion is Gerardo. tons announced for to The CapEx $X XXX,XXX XXXX $X and for year. year, of nitrate rest and And include on our was metric going top breakdown lithium maintenance expansion, this of and billion were a last that billion the iodine of $XXX said for for billion of to reach CapEx. tons the Joel, CapEx that that the last total we Well, XXXX, is million is was $XXX hydroxide in million metric the lithium approximately lithium expansion and XX,XXX programs CapEx. announced related to carbonate be we total

also year, in capacity. this also by in sorry, and carbonate, X,XXX it total are the project going a XXX end CapEx is ago, expanding set from Mark of projecting this million, by also our tons expanding metric that metric X,XXX the capacity, of XXX lithium -- XXX,XXX within lithium is to For this be the around that we to XXX to capacity Australia $XXX nitrate projects, tons again, in but from mentioned developing expanding minutes next the lithium year and year expanding few our hydroxide, of nitrate end XXX

XXXX. All -- of that $X.XX it, in the included billion CapEx from we call can XXXX is to now

Joel Jackson

Okay.

additional what saying, ton, $X,XXX tons coming is a XX,XXX on I that, if be than less the So you're going on for expansion, correct? at up just hydroxide Atacama, to ignoring following LCE understand

Gerardo Illanes

That is right.

Ricardo Ramos

Yes, that's correct.

Joel Jackson

Glad do it. I Glad I can math. asked

growth a If be my in going you'll decade, 'XX, So plans in so on on goes of back little. the at what's 'XX, down Holland. Australia a We growth, I more. and them, capacity half is know more we -- question Australia. executing 'XX, your think with look Wesfarmers capacity XXXX, after very you the about But adding really have your you're add growth to that, if Mt. big you've bit little last that, volume potential Atacama,

capacity growth your growing buy assets? an prepared sheet go lithium or keep you using to other acquire resource to are go to sheet you have to producers So more are by balance your acquire producers? new your urgency balance upstart assets, use Like, now

Ricardo Ramos

means alternatives. It are exploring right. new that we You're always

We We good in Yes, are looking team lithium we a the committed have very business. in for business. very think we alternatives. that are the lithium

We looking will continue for alternatives.

lithium, looking It's are profit good the and if grow grow. course, to the company, good have projects to working for going will we're going team company, it. it complete that for be And to shareholders. we hard alternatives. are on creating value with be very for Of for potential new Growth in just we not

on is involved want if in terms we company a conservative shareholders. sale, are buy are everything that and to going we be We get to we good something buy but the that to in it's don't for ready to think business,

Joel Jackson

bracket. on the lithium question. to greedy one think your could or per cost this a price and probably is margin let's going ton, your over more ask lithium highest to a I ton be -- and be If And going up, When pick I it's of year number, be more. $XX,XXX

we How So you're on price. should CORFO costs cost going progressing XX% rate The flattish part, XX% to plus per pay that ton non-royalties. to see XXXX lithium your in royalty for affecting balancing inflation -- additional non-royalty volume. are more the

it an is offset? So

Gerardo Illanes

to is and high we CORFO are -- very, there course, with we payments a mentioned, make that is well, CORFO. that to of not continue prices high making to that them. Joel, to Gerardo first, is important payment is We're will spend think a this to very them, we important foreseeing consider -- These that I again. which factor very is make you lease

P&L. is that line our our the So first thing. cost reflected on That's on

issues us the let we these other hand, there additional putting that our pressure are plant operations of materials of and we capacity there over are or letting course, the produce other to improvements on some some on inflationary me is produce we our the that world, larger buy offset in in And different of pressures. and all industries. pressures cost. our some the lithium the seeing are costs labor raw inflationary as with are Second, associated and But reduce say,

the we be to that the upcoming we royalties, quarters. make royalties lease quite the excluding or cost stable CORFO, the payments So not expect that in should

Operator

over for any Kelly session. to question-and-answer back to turn closing the I concludes the O'Brien This conference like remarks. would

Kelly O'Brien

today. the joining call forward joining time. to look for next you Thank you We

Operator

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

disconnect. You may now

Sociedad Química y Minera de Chile (SQM) 3 Mar 222021 Q4 Earnings call transcript