SQM REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 |

Santiago, Chile, May 22, 2024 /PRNewswire/ — Sociedad Química y Minera de Chile SA (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) – announced today net loss⁽⁽¹⁾⁾ in three months completed March 31, 2024, With (869.5) million dollars, ($3.04) per share. After excluding the net effect of accounting adjustments due to payments of special purpose tax on mining activities related to the exploitation of lithium, the net profit for the three months ended March 31, 2024together $228.1 million ($0.80 per share), which is a decrease of approximately 69.6% compared to $749.9 million ($2.63 per share).

Gross profit achieved $368.5 million (34.0% of revenues) for the three months ended March 31, 2024lower than $1,065.6 million (47.1% of revenues) recorded for the three months ended March 31, 2023. Revenue sum $1,084.5 million in three months completed March 31, 2024which is a decrease of approximately 52.1% compared to $2,263.9 million reported for the three months ended March 31, 2023.

General Director of SQM, Ricardo Ramosstated: “We are pleased with the positive year-on-year growth in sales volumes across all our core businesses. In the first quarter of 2024, we achieved record quarterly sales volumes in the iodine segment, higher by almost 9% compared to the same period last year. Sales volumes in our specialty nutrition and potassium business lines were approximately 20% higher year-on-year, while sales volumes lithium were over 30% higher in the first quarter of 2024 compared to the same period. last year, this increase was offset by lower realized year-on-year average sales prices in these business lines, resulting from lower market prices in the first quarter of 2024.”

He continued by saying: “We believe the strong demand growth in the lithium market seen year-to-date is likely to continue for the remainder of the year, with total lithium demand expected to exceed 1.1 million tonnes in 2024. Given this positive demand trend growth, especially in China which accounts for almost 75% of global lithium demand, and from our updated sales volume forecasts for this year, we believe our sales volume could reach 200,000 metric tons in 2024.”

Mr. Ramos added: “We continue our expansion plans in Chile and abroad. Our iodine and nitrate expansion project in Pampa Blanca is progressing successfully and we expect to deliver 1,300 tonnes of iodine from this new facility in 2024. In recent months, we have started construction of a seawater pipeline that will supply seawater to our plants, enabling us to increase our production capacity and supply freshwater to our neighboring communes.

In the lithium industry, as described below, we have completed a new expansion of our lithium carbonate plant in Chile, reaching 210,000 metric tons per year, and continued to work on a number of efficiency, quality and process improvement initiatives to increase this production capacity to 240,000 metric tons per year in 2025, thus adding an additional 30,000 metric tons of lithium carbonate capacity per year. Our lithium hydroxide (lithium carbonate processing) production capacity has reached 40,000 tonnes per year and we remain on track to increase our total lithium hydroxide production capacity in Chile up to 100,000 tonnes per year in 2025

“Following the signing of a non-binding memorandum of understanding with Codelco late last year, we continued negotiations to define the final terms and documents for the joint operation in the Salar de Atacama, which we hope to deliver by the end of this year.”

He concluded by saying: “In China, after several years of development of the lithium sulfate refinery project, which involved redesigning and modifying the Dixin chemical plant to convert lithium sulfate from the Salar de Atacama into lithium hydroxide for batteries, we are proud to announce that this process ended this month with SQM purchasing 100% of the plant. The Dixin plant, with a design capacity of 20,000 tonnes per year and first production archived at the end of last year, is fundamental to our strategy to at least double our production. production of lithium hydroxide from lithium sulfate in the coming years.

Finally in Australiathrough a 50/50 joint venture with Hancock Prospecting Pty (Hancock), we completed the acquisition of 60% of the Andover lithium project through the acquisition of 100% of the shares of Azure Minerals Limited for a total consideration of approximately $350 million (SQM share). We look forward to working with Hancock on what we believe to be a significant global lithium project. Combining our mining and lithium expertise with Hancock’s experience in project development and mining operations in AustraliaWe expect to build a strong and mutually beneficial partnership.”

Total capital expenditures for 2024 are expected to plateau $1.3 billionincluding capital expenditures related to the above-mentioned initiatives to increase our lithium carbonate production capacity by approximately $70 millionAcquisition of the Dixin factory worth approx $140 millionand maintenance approx $150 million. The total amount of investment expenditure does not include approx $350 million paid to acquire the Andover lithium project.

About SQM

SQM is a global company, listed on the New York Stock Exchange and on the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). SQM develops and produces a variety of products for several industries essential to human progress, such as health, nutrition, renewable energy and technology through innovation and technological development. Our goal is to maintain our leading global position in the lithium, potassium nitrate, iodine and thermal salts markets.

For more information, please contact:

Gerardo Illanesa / [email protected]
Irina Axenova / [email protected]
Isabella Bendeck /[email protected]

For media inquiries, please contact:
Maria Ignatius Lopez / [email protected]
Pablo Pisani / [email protected]

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “anticipate,” “plan,” “believe.” , “estimate”, “expect”, “strategy”, “should”, “will” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding the implementation of the Memorandum of Understanding and potential partnership with Codelco, the development of the Salar Futuro project, the Company’s capital expenditures, financing sources, the Sustainability Plan, business prospects and demand, future economic performance, projected sales volumes , profitability, revenues, expenses or other financial items, anticipated cost synergies and product or service line development.

Forward-looking statements are neither historical facts nor guarantees of future performance. Instead, these are estimates that reflect SQM management’s best judgment based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors beyond our control that could cause actual results to differ materially from those in such statements, including our ability to successfully implementation of the Sustainable Development Development Plan. Therefore, you should not place undue reliance on any of these forward-looking statements. Readers are referred to SQM’s filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 20-F, which identifies other important risk factors that could cause actual results to differ from those contained in the forward forecast – looking statements. All forward-looking statements are based on information available to SQM as of the date hereof and SQM undertakes no obligation to update such statements, whether as a result of new information, future developments or otherwise, except as required by law.

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⁽⁽¹⁾⁾ Includes the net effect of accounting adjustments for mining-specific tax payments on lithium exploitation as at date March 31, 2024in fact $1,097.6 million. More details can be found in note (1) to the Q1 2024 earnings release.

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SOURCE Sociedad Quimica y Minera de ChileSA (sq m)