Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Q4 2022 Earnings Call Transcript

And again, lithium hydroxide is very, very important, as you already mentioned. But finally, over the few years, we hope to start investing in new technologies means we are working very hard in Salar Futuro, we will put some money during this year in all the new technology but we know that some of this new technology are so good in some terms that we can recover the investment in the medium term. And I think that the investment that are included until 2025 may allow us to further increase our production capacity in lithium, that’s something we’re working now. But of course, using new technology goes in the right direction in order to have a better outcome in the lithium production. That’s why we have a significant investment in these new technologies mainly in the year ’24, ’25?

Carlos Diaz: With respect to your question about the demand growth. Well, I wish at the beginning of the year, we expect the slowdown in demand due to do the Chinese New Year. And now we’re seeing that a b seller hub now pick up on at a similar pace that we have at the end of last year, so and I mentioned, Felipe mentioned before, we recently knew the one of the leader carmaker now announcing all was double is they say that they production they have this most compatible with last year. So, we’re really confident that they remind will grow more than 20%, probably in a range of 25 or something like that. And what would you say at the beginning where we’re preparing for that, adding more capacity from Chile and China and Australia.

And regarding to the production, the lithium coming from . We really don’t have actually any information about the extra capacity and less than the how how’s the quality or the sustainability of that production. So, we really, we don’t — we cannot comment too much about that.

Lucas Ferreira : Perfect. Thank you very much.

Operator: Our next question will come from Javier Martinez, with Morgan. You may now go ahead.

Javier Martinez : Sorry guys, my questions were already taken. Thank you.

Operator: Our next question will come from Cesar Perez-Novoa, with BTG Pactual. You may now go ahead.

Cesar Perez-Novoa: Good afternoon, everyone. And congratulations for the results. Two questions here. On production targets for 2023. You already mentioned sales volume of around 200,000 metric tons of which China would account for roughly 10%. Is the volume sent for tolling in the Sichuan refinery in China going to pay the same royalty scheme as carbon produce in Chile? And my second question goes back to the CapEx program. Essentially, how would this be financed and with this figure, contemplate additional possible partnerships or earnings like your recent agreement with a Sichuan mineral site? If I heard correctly, Ricardo mentioned some sort of additional exploration and looking for potential projects at the beginning of the presentation? Thank you.

Ricardo Ramos: Okay, regarding to the lithium production what I mentioned at the beginning that our targets to where our capacity this year or it’s going to be 180,000 as a little totally in Chile religion originally today will have a capacity of 20,000 to 30,000 in China and at the end of the year, the spodumene production in Australia. So, in today’s around 200,000 – 210,000 as capacity. How much is going to sell it’s going to depend on the supply and demand balance. So, we’re not saying that we’re going to sell in that trend. You were just saying that we will have the capacity ready for supply into the market. And regarding to the China production well, the plan now is continue to produce according to the plan and we’ll be ready soon to study the commission and start product producing. And respect to the royalty is the same agreement they produce according to the lithium hydroxide royalty, not lithium carbon according to, it’s already agreed with Golf.