Denise Dignam : I think I would go back to what I had said earlier, John, is that a way to think about it is we make changes every day really on our ore blends and what production we’re running. I think it really evolves as the market evolves for the year and again how we run our plants. So it’s a key. I really can’t give you any more clarity around that for the rest of the year other than we’re going to make the best decisions as we run our plants and what ores we use as we run our facilities.
Operator: Our next question comes from Josh Spector from UBS Financial.
Josh Spector: I wonder, if you just talk about TiO2. I know you don’t have a full year guide here, but as you ramp your capacity, can you bring on more volumes into 3Q?
Denise Dignam : Yes. I mean, we have the capability to bring on more volume for sure. I’m not sure, Josh. Is there a follow-up question to that?
Josh Spector: I guess the other piece I’d ask to follow-up is just as you think about TSS margins longer term here, you’re talking about growth in 2 phase and other markets. What about another corpus expansion? Since it seems like that margin delta versus your JV is quite large, should we expect an investment there and what would be the timeline?
Denise Dignam : I would say, when we look at expansions, we’re always trying to evaluate what’s the right decision whether we build ourselves or we build with a partner. We’ve not yet made any decision on future additional capacity. We’re really focused on this 40% expansion and then we’ll, as things progress and we make decisions, we certainly will share those.
Operator: Our next question comes from Arun Viswanathan from RBC.
Unidentified Analyst: This is Adam on for Arun. Thanks for taking my question. If we were to look out the curve a little bit in TSS, assuming a reasonable market recovery by the time some of those 2 phase products are commercialized. What do you think the earnings contribution could be? Or that is to say, what do you think potentially mid cycle EBITDA could be for TSS a couple of years out?
Denise Dignam : I would say we’re committed to the long-term trajectory. The mid to high-single-digit growth through the end of the decade and the greater than 30% margin. This is a disruptive technology and we’re going to have new capacity that comes on in 2026. So it is difficult to say. This is a large market and we’re talking about a $3 billion TAM. It’s a pretty diverse ecosystem. There’s going to be lots of technologies. Our technology, we believe, has the best value proposition. So we believe we’re going to be a very sizable participant, but it really depends on how quickly it evolves. Again, we’re going to have commercial capacity in 2026, a little bit hard to project that going out much farther, Adam.
Unidentified Analyst: And maybe more short-term, I know you guys have a big outflow of some of the restricted cash coming this quarter. I think it was something on the tune of $600 million. Is that most of the remaining outflows for this year? And how much of that restricted cash could we expect being like baseline level going forward?
Matt Abbott: So, yes, we do expect that restricted so the restricted obviously, the fund was funded in 2023, right? So from an accounting perspective, it’s sitting there as restricted cash. Following the final judgments, you’ll see that flow through the cash flow statement here in the second quarter. As we look out, we will continue to do our fundings to the MOU fund under the terms of the MOU with the other parties. And then from an overall cash perspective, as I indicated, we think we’ll be sort of flattish to the midpoint of the year and then we expect a source of cash rather as we go through the second half of the year.
Operator: Our next question comes from Mike Leithead from Barclays.
Denise Dignam : Hi, Mike. Do you have a question?
Operator: Our next question comes from Hassan Ahmed from Alembic Global Advisors.
Hassan Ahmed: Question on TT. I know there are a bunch of moving parts and uncertainty and the like with regards to the European Commission’s investigation on antidumping. But could you just broadly talk about potentially what the opportunity could be, if those antidumping measures are indeed go through in Europe.
Denise Dignam : So first of all, I guess what I want to say is we are really focused in TT on controlling what we can control and working towards taking a long-term view of being one of the lowest cost producers. We really, you can see in our results the benefit of our TT transformation plan and that work continues. I think that depending on what happens there could be some share shift. Again, it might be transitory depending on what happens with the antidumping case. But again, we’re just focused on what we can control, making sure that we can compete in any environment and being low cost. As well as being phenomenal partners with our customers. We need to be reliable suppliers and then have true partnership.
Hassan Ahmed: And a question around the guidance. I’m obviously cognizant of the fact that you’re not giving full year guidance. But you guys did $193 million in Q1 EBITDA and you’re guiding to around $222 million in Q2. Obviously, there are a bunch of moving parts, seasonality, in terms of a headwind, but tailwinds wise maybe an economic recovery, cost cutting and the like. But if I were to just assume for a second that there really is no recovery and you guys really don’t benefit that much from cost cuts. And I just straight line the $222 million for Q3 and Q4, I get to like roughly an EBITDA of $860 million for the full year. Clearly, there is going to be some sort of recovery. Clearly, you guys are going to benefit from cost cuts and the like. So, is it just fair to assume that at the very least, you’ll do $900 million in EBITDA in ’24?
Denise Dignam : As I said, I’m not going to give guidance for the full year. But I think going back to your point, I mean, certainly we’re going to see benefits to our cost cuts. We’ve already seen that dramatically in TT and we’re going to continue that focus. And again, we’re going to control what we can control. The market is going to do what the market is going to do. We are in every one of our business. We’re leading players in those markets. Whatever happens in the market, we’ll participate in. We’ll do the right make the right business decisions and continue to drive our productivity.
