Nick Zarcone: Yes, this is not a play for 2023 or even 2025, perhaps this is a 10-to-15-year play, right? And what, ultimately, we believe is it’s pretty well documented that there’s not enough lithium being mined to produce all these batteries that are going to go on the EVs that folks are anticipating going to be on the road. And so, recycling the key elements out of existing EV batteries can become critical. We don’t have the technology to do that. We recycle parts, but we don’t know how to recycle chemical elements, right? But that’s where Korea Zinc comes in. I mean, they are truly a world-class organization when it comes to reclaiming and recycling all sorts of various non-ferrous metals. And we believe that’s a combination of their ability and process technology on the one hand was our ability to source cores and batteries on the other hand is a — it could be a great partnership.
Now, it’s a memorandum of understanding, right? It’s not a joint venture yet. The goals over the next couple of years to figure out and work together to develop a plan that could be profitable for both companies. But it’s moving us into the next generation of mobility and we’re very excited about it. And we think Korea Zinc will be a terrific partner for us.
Bret Jordan: Great. Thank you.
Operator: Your next question comes from the line of Brian Butler from Stifel. Your line is open.
Brian Butler: Good morning, guys. Thank you very much for taking my questions.
Nick Zarcone: Good morning, Brian.
Brian Butler: Just on the first one on the guidance. When you think about the $975 million in cash flow, I mean, it sounds like that’s kind of the minimum. And if you were to try to back up into an EBITDA number using the conversion of the 55% to 60%, that kind of puts you at $1.77 billion, kind of just under 13% margins. Is that kind of the right way to think of the low end of EBITDA?
Rick Galloway: Yes. So, we — the way we’re looking at it — thanks for the question. The way we’re looking at it is 55% is the minimum of where we’re sort of guiding on the conversion piece of it. So, as we’re driving into this thing, the mix between what happened year-over-year in the earnings with the interest payments, the tax payments coming down and the capital expenditures, I would — I think we’ve got a gap, call it, 50 plus or minus, we kind of gear right in that range. That’s where I would kind of look on the free cash flow piece. And then, backing into that, we’ve guided 55% to 60%. We think that’s a pretty reasonable approach, where we hit the 60% in the prior year 2022, bringing that down a little bit with the CapEx expenditures in 2023 is how we end up getting to that $975 million.
Brian Butler: Okay. But just think — I mean, again, just kind of backing it into trying to guess on the EBITDA, I mean, as that gets to the 60%, you would expect the EBITDA to also be higher as well. Is that a fair way to look at it?
Rick Galloway: Yes, that’s a fair way. Yes.
Brian Butler: Okay. And then, on a follow-up question. When you think about the CapEx, the additional spend that kind of move from 2022 into 2023, I mean if you kind of even that out over the two years, you kind of were at $1 billion based on your guidance…
Rick Galloway: That’s exactly…
Brian Butler: It will be about $1 billion guidance. So…
Rick Galloway: Yes, that’s exactly.
