智利化工礦業 (SQM) 2023 Q3 法說會逐字稿

Good day, and welcome to the SQM Third Quarter 2023 Earnings Conference Call.

美好的一天，歡迎參加 SQM 2023 年第三季財報電話會議。

(Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Irina Axenova, Head of Investor Relations. Please go ahead.

（操作員說明）請注意此事件正在被記錄。現在我想將會議交給投資者關係主管伊琳娜·阿克塞諾娃 (Irina Axenova)。請繼續。

Thank you, Dave. Good morning. Thank you for joining SQM's Earnings Conference Call for the Third Quarter of 2023. This conference call will be recorded and is being webcast live. Our earnings press release and the presentation with a summary of the results have been uploaded to our website, where you can also find a link to the webcast.

謝謝你，戴夫。早安.感謝您參加 SQM 2023 年第三季財報電話會議。本次電話會議將進行錄音並進行網路直播。我們的收益新聞稿和結果摘要簡報已上傳到我們的網站，您也可以在其中找到網路廣播的連結。

Ricardo Ramos, our Chief Executive Officer, will be speaking on the call today. Gerardo Illanes, our Chief Financial Officer; Carlos Diaz, Executive Vice President of Lithium; Felipe Smith, Commercial Vice President of Lithium; Mark Fones, Vice President of Strategy and M&A Lithium; and Juan Pablo Bellolio, Commercial Vice President of Iodine and Industrial Chemicals, will be also available to answer any questions.

我們的執行長里卡多·拉莫斯 (Ricardo Ramos) 將在今天的電話會議上發表講話。 Gerardo Illanes，我們的財務長； Carlos Diaz，鋰業執行副總裁； Felipe Smith，鋰業務副總裁； Mark Fones，鋰業策略與併購副總裁；碘和工業化學品業務副總裁 Juan Pablo Bellolio 也將隨時回答任何問題。

Before we begin, I would like to remind you that statements made in this conference call regarding our business outlook, future economic performance, anticipated profitability, revenues, expenses and other financial items, along with expected cost synergies and product or service line growth are considered forward-looking statements under federal securities laws. These statements are not historical facts and may be subject to changes due to new information, future developments or other factors. We assume no obligation to update these statements, except as required by law. For a complete forward-looking statement, please refer to our earnings press release and presentations.

在開始之前，我想提醒您，本次電話會議中有關我們的業務前景、未來經濟表現、預期盈利能力、收入、費用和其他財務項目以及預期成本協同效應和產品或服務線增長的聲明均已考慮在內聯邦證券法下的前瞻性陳述。這些陳述並非歷史事實，可能會因新資訊、未來發展或其他因素而改變。除非法律要求，否則我們不承擔更新這些聲明的義務。有關完整的前瞻性聲明，請參閱我們的收益新聞稿和簡報。

I now leave you with our Chief Executive Officer, Ricardo Ramos.

現在請您談談我們的執行長里卡多·拉莫斯。

Thank you, Irina. Good morning. Thank you for joining the call today. Yesterday, we reported our third quarter 2023 earnings. And on this call, I would like to focus on the key drivers in each of the business behind our performance during this quarter.

謝謝你，伊琳娜。早安.感謝您今天加入通話。昨天，我們公佈了 2023 年第三季財報。在這次電話會議上，我想重點討論本季業績背後的每項業務的關鍵驅動因素。

In the lithium business, we reported close to $1.3 billion in revenues, approximately 10% lower than compared to the previous quarter this year, primarily as a result of significant lower realized sales prices, partially offset by record high sales volumes over 43,000 metric tonnes during the quarter. We will observe a downward price trend that commenced at the beginning of this year and could continue for the remainder of 2023 -- signs the majority of our sales contracts are linked to price indices, which move with the market, our realized sales prices have followed the same trend with a small delay, and it is reasonable to expect that they should continue to reflect market price dynamics in the upcoming months.

在鋰業務方面，我們報告的收入接近13 億美元，比今年上一季下降約10%，這主要是由於實現的銷售價格大幅下降，但部分被2017 年超過43,000 噸的創紀錄高銷量所抵消。該季。我們將觀察到從今年年初開始的價格下降趨勢，並可能持續到2023 年剩餘時間——這表明我們的大部分銷售合約都與價格指數掛鉤，價格指數隨市場變化，我們的實現銷售價格也隨之變化相同的趨勢，但略有延遲，可以合理預期它們應繼續反映未來幾個月的市場價格動態。

We continue to see strong fundamentals behind long-term growth of lithium demand supported by EV production and sales volume and [emission] reduction targets worldwide. In the short term, however, the excess of inventories along chemicals and battery material supply chains as well as additional supply, which entered the market this year have been negatively affecting customer purchasing activity. As a result, we expect to see quarter-on-quarter similar or lower sales volumes during the fourth quarter this year.

我們繼續看到鋰需求長期成長背後的強勁基本面，這得益於全球電動車產量和銷量以及[排放]減排目標的支持。然而，從短期來看，化學品和電池材料供應鏈的庫存過剩以及今年進入市場的額外供應對客戶的採購活動產生了負面影響。因此，我們預計今年第四季的銷售將與上一季持平或較低。

In the iodine business, we reported over $210 million in revenues for the third quarter 2023, driven by a strong pricing environment with sales prices close to $70 per kilogram with year-to-date higher volumes than last year. This is supported by increased demand from x-ray contrast media segment, albeit some reduction in demand coming from other price-sensitive applications. We believe that SQM remains the only iodine producer to increase its supplies this year, while we keep on increasing our capacity.

在碘業務中，我們報告 2023 年第三季的收入超過 2.1 億美元，這得益於強勁的定價環境，銷售價格接近每公斤 70 美元，今年迄今的銷量高於去年。儘管其他價格敏感應用的需求有所減少，但 X 光造影劑領域的需求增加也支持了這一點。我們相信，SQM 仍然是今年唯一增加供應的碘生產商，同時我們將繼續增加產能。

Moving to fertilizer business. Our revenues in specialty plant nutrition and potassium business segments reached almost $300 million during the third quarter as a result of positive demand growth, which began during the third quarter this year and is expected to continue into 2024.

轉向化肥業務。由於今年第三季開始的積極需求成長，預計將持續到 2024 年，我們在特種植物營養和鉀業務領域的收入在第三季達到近 3 億美元。

In the Industrial chemicals business, during the third quarter, we completed solar salts delivery to the concentrated solar power plant project in the Middle East, with a total of more than 430,000 metric tonnes of solar salts produced and shipped between 2020 and 2023. This mission proved to be challenging, particularly as the majority of the deliveries occurred amidst the global pandemic, which has changed both our production capabilities and logistical conditions. We are proud of our accomplishments and the successful completion of this contract.

在工業化學品業務方面，第三季度，我們完成了向中東聚光太陽能發電廠專案的太陽鹽交付，2020年至2023年期間總共生產和運輸了超過43萬噸太陽鹽。事實證明，這具有挑戰性，特別是因為大部分交付是在全球大流行期間進行的，這改變了我們的生產能力和物流條件。我們為我們的成就和成功完成這份合約感到自豪。

I will also like to comment our progress with our expansion plans, both in Chile and abroad. Our lithium carbonate capacity in Chile has reached the 200,000 metric tonnes per year, and we expect to complete the expansion to 210,000 metric tonnes in the beginning of 2024, almost a year earlier than anticipated. This gives us a space to focus on production cost optimization and to ensure that we remain one of the most cost-efficient lithium producers in the world.

我也想評論我們在智利和國外的擴張計劃的進展。我們在智利的碳酸鋰產能已達到每年 20 萬噸，我們預計在 2024 年初完成擴建至 21 萬噸，比預期提前了近一年。這為我們提供了專注於生產成本優化的空間，並確保我們仍然是世界上最具成本效益的鋰生產商之一。

In Australia, the first production of spodumene concentrate on Mt. Holland is expected during this quarter. While in China, we have started lithium hydroxide production from lithium sulfate. As we continue our progress toward more sustainable operations and other very significant milestone reached last quarter was an international recognition from IRMA of our commitment to becoming the world's most sustainable source of lithium. Our operations in the Salar de Atacama received the highest score to date of IRMA 75, reflecting our dedication to transparency and community engagement, while there is a considerable amount of work ahead of us in collaboration with our communities and stakeholders. We will persist in the collective efforts to achieve our sustainable objectives.

在澳大利亞，預計本季將在 Mt. Holland 首次生產鋰輝石精礦。而在中國，我們已經開始用硫酸鋰來生產氫氧化鋰。隨著我們在更永續的營運方面不斷取得進展，上季實現的其他非常重要的里程碑是 IRMA 對我們致力於成為世界上最永續的鋰來源的國際認可。我們在阿塔卡馬鹽沼的業務獲得了迄今為止IRMA 75 的最高分，這反映了我們對透明度和社區參與的奉獻精神，同時我們在與社區和利益相關者的合作中還有大量工作要做。我們將堅持集體努力，實現我們的永續目標。

Thank you, operator, and we will now open for the line to questions.

謝謝您，接線員，我們現在開始接受提問。

(Operator Instructions) Our first question comes from Joel Jackson with BMO Capital Markets.

（操作員說明）我們的第一個問題來自 BMO 資本市場的 Joel Jackson。

Ricardo, I'm going to ask a few questions one by one. First, you previously said -- SQM previously said that you would produce about 185,000 tonnes -- 185,000 tonnes this year. It looks like your sales on be more 150,000 tonnes. So am I correct in assuming that, that production number is the same, you're building inventory this year of 20,000 tonnes to 30,000 tonnes. And a follow-up on that is, does SQM feel the need to be disciplined and hold back production in 2024 or for a little while, we're seeing other producers pull back production? And if you do run at the capacity you say you have in 2024, your sales volume would be up maybe 30% next year, would seem to be above market growth. So do you need to be disciplined? So in -- question is inventory build right now, and we'll be building more inventory next year and we'll be disciplined?

里卡多，我要一一問幾個問題。首先，您之前說過 - SQM 之前表示您今年將生產約 185,000 噸 - 185,000 噸。看來你們的銷售量超過15萬噸了。那麼，我的假設是正確的嗎？產量是相同的，你們今年的庫存量為 20,000 噸到 30,000 噸。後續問題是，SQM 是否認為有必要在 2024 年遵守紀律並暫停生產，或者在一段時間內，我們看到其他生產商縮減生產？如果你確實按照你所說的 2024 年產能運行，明年你的銷量可能會成長 30%，似乎高於市場成長。那你需要遵守紀律嗎？那麼問題是現在庫存增加，明年我們將增加庫存並且我們將受到紀律處分？

Hello, Joe. This is Carlos Diaz, the Vice President of the Lithium Division. Thank you for your question. Well, first of all, we have to -- we have seen this type of distortion in the market in the past, a lot of [times] in our different divisions, including lithium in the different SQM division. But due to our leadership position in cost, quality and sustainability, our structure has been and will be continuing to be to produce at the maximum capacity in our plant, I mean in Chile, while we are producing in China and Australia. And the idea is to be prepared when inventories return to the normal level and customer purchase are reactivated. Therefore, our production strategy is continue to work producing, like what I said before, at the maximum capacity. We are not changing that.

你好，喬。我是卡洛斯‧迪亞茲 (Carlos Diaz)，鋰事業部副總裁。謝謝你的問題。嗯，首先，我們必須——過去，我們在不同的部門（包括不同 SQM 部門的鋰部門）多次看到市場上的這種扭曲。但由於我們在成本、品質和永續性方面的領先地位，我們的結構已經並將繼續在我們的工廠（我的意思是在智利）以最大產能生產，同時我們在中國和澳洲生產。我們的想法是在庫存恢復到正常水平並且客戶採購重新啟動時做好準備。因此，我們的生產策略是繼續生產，就像我之前說的，以最大產能進行生產。我們不會改變這一點。

Okay. So do you expect to be building inventory in the next bunch of quarters, correct? And have been building inventory? Is that fair?

好的。那麼您是否預計在接下來的幾個季度內建立庫存，對嗎？並一直在建立庫存？這樣公平嗎？

Yes. What I said before, this is something that we have done in the past, and we are prepared for that. We are building inventory, having in our warehouse in different places, yes, we will be prepared for that.

是的。我之前說過，這是我們過去做過的事情，我們已經準備好了。我們正在建立庫存，在不同地方的倉庫中都有庫存，是的，我們會為此做好準備。

Okay. My next question is obviously a sensitive one, but we need to address. To the extent that you're able to talk about maybe some potential range of outcomes with your discussions with Codelco, there's been some numbers on around this week, again, it's sensitive. Maybe I'd like to ask in any sort of arrangement you may come up to, how fast could Atacama production be pushed to? Can you get us -- if there were no constraints, no quotas, nothing with Corfo, could you get to 300,000 tonnes? Could you get to 400,000 tonnes of LCE out of Atacama? How long it would take you to do that? And do those discussions focus very heavily in your discussions with Codelco for what are reasonable expectations for an SQM down the road?

好的。我的下一個問題顯然是一個敏感問題，但我們需要解決。如果您能夠在與 Codelco 的討論中討論一些潛在的結果範圍，那麼本週左右就會出現一些數字，這同樣是敏感的。也許我想問一下，無論您能想到什麼安排，阿塔卡馬的生產速度可以推到多快？可以告訴我們嗎——如果沒有限制，沒有配額，沒有Corfo，你能達到30萬噸嗎？您能從阿塔卡馬獲得 40 萬噸 LCE 嗎？你需要多長時間才能做到這一點？這些討論是否主要集中在您與 Codelco 的討論中，即對未來 SQM 的合理期望是什麼？

So Ricardo Ramon speaking. As you know, I'm directly responsible for the negotiation with Codelco. I think a couple of days ago, we issued statements, SQM, about some news on the press that was not right. It was not correct. It's very difficult to answer your question because we have to consider all the restrictions, environmental restrictions, our environmental goals in the Salar de Atacama, which is the country goals in the Salar. That's why talking about what is the maximum capacity without any of the restrictions makes no sense because we do have restrictions, and it doesn't matter who operates the Salar, it will have restrictions.

里卡多·拉蒙正在講話。如你所知，我直接負責與 Codelco 的談判。我想幾天前，我們就媒體上的一些不正確的新聞發表了聲明，SQM。這是不正確的。回答你的問題非常困難，因為我們必須考慮阿塔卡馬鹽沼的所有限制、環境限制、我們的環境目標，也就是鹽沼的國家目標。這就是為什麼在沒有任何限制的情況下談論最大容量是沒有意義的，因為我們確實有限制，而且無論誰運營 Salar，它都會有限制。

That's why when you think about the future operation of the Salar de Atacama, you should think about what is the most efficient way to do it from an environmental point of view, from a social responsibility point of view, with the relation with the community, according to all the Chilean restrictions. That's why it's not -- there's nothing that you can have a different answer, just trying to forget about what is the goals, environmental goals.

這就是為什麼當你考慮阿塔卡馬鹽沼未來的運作時，你應該從環境的角度、從社會責任的角度、與社區的關係來思考最有效的方式是什麼，根據智利的所有限制。這就是為什麼它不是——沒有什麼可以有不同的答案，只是試圖忘記什麼是目標，環境目標。

For us, the environmental goals in the Salar de Atacama is a must, is a competitive advantage to be a producer, sustainable producer in the Salar. That's why having a huge amount of production if we affect our sustainability and our environmental goals, of course, we don't expect to do so. That's why, as we have said in the future, we don't expect significant increase in production in the future plans of Codelco -- sorry, in Salar de Atacama.

對我們來說，阿塔卡馬鹽沼的環境目標是必須的，是成為鹽沼生產者、永續生產者的競爭優勢。這就是為什麼如果我們影響我們的永續發展和我們的環境目標，那麼我們當然不希望進行大量生產。這就是為什麼，正如我們在未來所說的那樣，我們預計 Codelco 的未來計劃不會大幅增加產量——抱歉，是在阿塔卡馬鹽沼。

We were very clear in our Salar Futuro presentation, I think, in a couple of years ago that maybe depending on the technology and so on, you can reach close to 300,000 metric tonnes, but it will depend on the different environmental restrictions, environmental permits and our environmental goals internally. But considering that you are asking about the Codelco, I want to be very clear about this negotiation process. First, I want to add a couple of things that I think are quite important in this process.

我們在 Salar Futuro 的演示中非常清楚，我認為，幾年前，也許根據技術等，你可以達到接近 300,000 公噸，但這將取決於不同的環境限制、環境許可以及我們內部的環境目標。但考慮到你問的是Codelco，我想非常清楚地了解這個談判過程。首先，我想補充一些我認為在過程中非常重要的事情。

First one, in my opinion, and let me give my opinion about that, Codelco, that is the one we are having the negotiations now the company, is a great company. I have a very good opinion about Codelco. They have an outstanding professional team and of course, like any large company in the mining and natural resources area, of course, Codelco faces important challenges in the short term in their businesses, like everyone. SQM, like any other large company, also facing challenges.

第一個，在我看來，讓我對此發表我的看法，Codelco，也就是我們現在正在談判的公司，是一家偉大的公司。我對 Codelco 的看法非常好。他們擁有一支出色的專業團隊，當然，就像採礦和自然資源領域的任何大公司一樣，Codelco 和所有人一樣，在短期內也面臨著重要的業務挑戰。與其他大公司一樣，SQM 也面臨挑戰。

We started conversation with Codelco, as you know, about 6 months ago. I'm not so sure it was 6 or 5, whatever, something close to that. And a significant part of the meetings at the beginning and -- we have had so far have been focused on explaining in detail our lithium businesses. The technology we have developed, the production process, the different initiatives we're working on, it is important to remember that in the -- we have the largest lithium production site in the world in the Salar de Atacama, along with the largest integrated lithium refinery capacity in the world located near the city of Antofagasta. It's a big, big business. It's complicated, it's complex, it's great, it's beautiful. It's the best one in the world, but of course, takes a lot of time to explain to a high professional group of people from Codelco, all the big -- all the main details of our operation. They have to understand that.

如您所知，大約 6 個月前，我們開始與 Codelco 進行對話。我不太確定是 6 還是 5，無論如何，接近這個數字。到目前為止，一開始的會議的很大一部分都集中在詳細解釋我們的鋰業務。我們開發的技術、生產流程、我們正在進行的不同舉措，重要的是要記住，我們在阿塔卡馬鹽沼擁有世界上最大的鋰生產基地，以及最大的綜合鋰生產基地。世界上最大的鋰精煉廠位於安託法加斯塔市附近。這是一樁非常非常大的生意。它很複雜，它很複雜，它很棒，它很美麗。這是世界上最好的，但當然，需要花費大量時間向 Codelco 的高級專業團隊解釋我們營運的所有重要細節。他們必須明白這一點。

On top of this, we have spent a significant amount of time sharing visions over the Salar Futoro project. That was your question. Of course, discussing the different alternatives we have in order to develop this Salar for the future. The importance in our opinion, and we have an agreement with Codelco about that, that the successful execution of this project has over the sustainability of the operations in the Salar de Atacama.

除此之外，我們還花了大量時間來分享對 Salar Futoro 計畫的願景。那是你的問題。當然，我們會討論不同的選擇，以便未來發展這個撒拉族。我們認為該計畫的成功執行對阿塔卡馬鹽沼營運的可持續性至關重要，而且我們與 Codelco 就此達成了協議。

We both agreed that having a sustainable operation in the long term is the most important target we face in the Salar de Atacama development. Investment required are significant. We reviewed the investment, all the technologies we are developing to achieve the goal of aiming to reach what we expect to be a (inaudible) neutrality in the Salar de Atacama basin. Keep in mind that we, as SQM, been working probably 2.5 years, maybe close to 3 years in what we call the Salar Futuro project. We have been working very hard with new technology, new process, new alternatives, and we have been working very hard with Codelco now trying to explain to them, trying to share with them all the advance of SQM in this project. It's very, very important to do it during this process.

我們一致認為，長期永續營運是我們阿塔卡馬鹽沼開發面臨的最重要目標。所需投資龐大。我們審查了投資以及我們正在開發的所有技術，以實現我們期望在阿塔卡馬盆地實現（聽不清楚）中立的目標。請記住，作為 SQM，我們在我們所謂的 Salar Futuro 專案中工作了大約 2.5 年，甚至接近 3 年。我們一直在努力研究新技術、新工藝、新替代方案，我們一直在與 Codelco 努力合作，現在試圖向他們解釋，試圖與他們分享 SQM 在這個專案中的所有進步。在這個過程中要做到這一點非常非常重要。

At the same time, it is important also to remember that whatever potential agreement, if we have an agreement in this negotiation, has to be for the benefit of Chile, for the benefit of the Antofagasta region, the local communities, Codelco and, of course, SQM. And clearly, an agreement must be based on a shared vision of the challenges and opportunities this operation has for all stakeholders. Please keep rest assured that we will inform the market on a timely manner through our own channels of communication of any significant development in this negotiation. Thank you.

同時，重要的是要記住，無論達成什麼潛在協議，如果我們在這次談判中達成協議，都必須有利於智利、有利於安託法加斯塔地區、當地社區、Codelco 和當然， SQM。顯然，協議必須基於對該行動給所有利益相關者帶來的挑戰和機會的共同願景。請放心，本次談判如有任何重大進展，我們將透過自己的溝通管道及時向市場通報。謝謝。

The next question comes from Lucas Ferreira with JPMorgan.

下一個問題來自摩根大通的盧卡斯費雷拉。

I have 2 questions. The first one on your lithium production for next year. So, what allowed you guys to anticipate the ramp-up to 210,000 tonnes a challenge at the Carmen plant level that was overcome? And then you made some comments about the cost. So can you also give us a view of how your costs per tonne should evolve once these capacities ramped up? So will you be diluting more fixed costs with the production at 210,000 tonnes? So could we expect good performance or even a reduction in the cost per tonne? And if you can comment about soda ash contracts for next year, so how to think about your cost per tonne in 2024? That's the first question.

我有 2 個問題。第一篇關於明年的鋰產量。那麼，是什麼讓你們能夠預見卡門工廠層面的挑戰已被克服，產能將增加至 21 萬噸呢？然後你對成本發表了一些評論。那麼，您能否向我們介紹一下，一旦這些產能增加，您的每噸成本又會如何改變？那麼，你們會用 21 萬噸的產量來稀釋更多的固定成本嗎？那麼我們是否可以期待良好的性能，甚至每噸成本的降低？如果您可以評論明年的純鹼合同，那麼如何考慮 2024 年的每噸成本？這是第一個問題。

And the second question, I don't know how much you're also going to be able to comment about Azure, but the tender to -- announce a tender to the Azure shares, what's your expectations in terms of timing of that to be fully approved? And then what are you guys planning to achieve there in terms of production in the future, size of production, timing for this production? If you can share with us some initial expectations about timing and size of lithium production in LCE terms?

第二個問題，我不知道您還能對 Azure 發表多少評論，但是宣布對 Azure 股票進行招標，您對招標的時間表有何期望完全批准？那麼你們計劃在未來的製作、製作規模、製作時間上實現什麼目標？您能否與我們分享一些關於以 LCE 計算的鋰生產時間和規模的初步預期？

Hello, Lucas, this is Carlo Diaz. Thank you for your question. Regarding to the production of lithium, as we mentioned in the press release -- sorry, we already reached a total capacity of 200,000 metric tonne during the month of October, and this is because we have been working so far in order to debottleneck all the processes and so on. And at the same time, we have been working hardly in increasing our quality and reducing our carbon and [water] footprint. And for the beginning of next year, we expect to reach 210,000 tonnes.

你好，盧卡斯，我是卡洛·迪亞茲。謝謝你的問題。關於鋰的生產，正如我們在新聞稿中提到的——抱歉，我們在 10 月的總產能已經達到 20 萬噸，這是因為我們迄今為止一直在努力消除所有的瓶頸。流程等。同時，我們一直在努力提高品質並減少碳和[水]足跡。明年初，我們預計產量將達到 21 萬噸。

For the other side, I have to mention that we have been working hard to produce lithium sulfate in Salar de Atacama that later on go to China to the conversion. So that gives you an additional capacity in total, all this product coming from the Salar de Atacama. Part of those -- the main part of those is converted in our Antofagasta plant near to -- near to Antofagasta sorry, and the other part, the lithium sulfide converted in China. That is the plan that we have for the lithium.

另一方面，我不得不提的是，我們一直在阿塔卡馬鹽沼努力生產硫酸鋰，然後運往中國轉換。因此，這為您提供了額外的總容量，所有這些產品都來自阿塔卡馬鹽沼。其中一部分——其中大部分是在我們靠近安託法加斯塔的工廠轉化的，抱歉，另一部分是在中國轉化的硫化鋰。這就是我們對鋰的計畫。

Regarding cost.

關於成本。

Regarding -- well, Luca, this is Gerardo. Regarding Azure, unfortunately, given the nature of the transaction and the jurisdiction in which this transaction is happening, at this moment, we cannot share more details on what was informed through a press release a few weeks ago. When we have more information that we can share, rest assure that you'll get it along with the rest of the market.

關於－－好吧，盧卡，這是赫拉爾多。不幸的是，關於 Azure，考慮到交易的性質以及交易發生的司法管轄區，目前我們無法分享幾週前透過新聞稿獲知的更多細節。當我們有更多可以分享的資訊時，請放心，您會與市場上的其他人一起了解這些資訊。

Super clear. Just maybe a quick follow-up on the cost. If it's fair to assume the cost declining or growing less in inflation next year because of the cost dilution?

超級清晰。也許只是對成本進行快速跟進。由於成本稀釋，假設明年的成本下降或通膨成長放緩是否公平？

So as soon as -- as we've already finished our expansion, now we're focusing obviously on reducing our costs, increasing the yield. I don't know if you know, but we have been reducing our brine extraction according to our sustainability plan defined in November 2020. So that means we have less brine, and I will have for the other side, the challenge to keep producing more. So that is a huge challenge. But at the same time, we have been increasing the yield in our chemical plant, so that will mean less cost in the coming year, but we still need to analyze that in the coming months for the -- when we made the budget for next year.

因此，一旦我們已經完成了擴張，現在我們顯然會專注於降低成本、提高產量。我不知道您是否知道，但根據2020 年11 月制定的可持續發展計劃，我們一直在減少鹽水提取。這意味著我們的鹽水減少了，而另一方面，我將面臨繼續生產更多鹽水的挑戰。所以這是一個巨大的挑戰。但同時，我們一直在提高化工廠的產量，因此這意味著來年的成本會降低，但我們仍然需要在未來幾個月內進行分析——當我們制定下一年的預算時年。

The next question comes from Ben Isaacson with Scotiabank.

下一個問題來自豐業銀行的本‧艾薩克森。

Two questions. One on the market in general. We see that the futures market is showing $16,000 or $17,000 per tonne. Can you reflect on that price level. How liquid do you think that market is? Who is actually selling at those prices? And are you concerned that prices will stay in that area for all of 2024? And my second question is the Salar Futuro program that you announced a couple of years ago, how is the DLE tracking? When can we expect the first tonnes to come out from DLE? And how will that change your cost profile?

兩個問題。市場上一般都有一款。我們看到期貨市場價格為每噸 16,000 美元或 17,000 美元。您能考慮一下這個價格水平嗎？您認為該市場的流動性如何？誰實際上以這些價格出售？您是否擔心 2024 年全年價格都會保持在該區域？我的第二個問題是您幾年前宣布的 Salar Futuro 計劃，DLE 追蹤情況如何？我們預計什麼時候可以從 DLE 產出第一批噸產品？這將如何改變您的成本狀況？

Hello, Ben, this Felipe Smith. Let me comment a little bit about the market, first of all. So well, the demand fundamentals remain solid in the long term. We are convinced about that, with an annual average growth above 20% for the next 5 years, okay? We expect EV sales of around 14 million units this year, which represents still a growth of around 35% compared to last year. So that is a first as an introduction. Now we have seen some softening of the demand outside China, which, coupled with higher-than-expected supply, has resulted in some excess of inventories accumulated in the whole battery supply chain. And this is what is resulting in prices showing downward pressure today, okay?

你好，本，我是費利佩史密斯。首先讓我對市場進行一些評論。因此，從長遠來看，需求基本面依然穩固。我們對此深信不疑，未來5年年平均成長20%以上，好嗎？我們預計今年電動車銷量約 1,400 萬輛，較去年仍成長 35% 左右。這是第一個介紹。現在我們看到中國以外的需求有所疲軟，再加上供應高於預期，導致整個電池供應鏈累積了一些過剩的庫存。這就是導致今天價格呈現下行壓力的原因，好嗎？

So what will happen in the future? Well, it's difficult. Prices are at the end, the result of supply and demand. But as part of our commercial strategy, we'll continue to be contracting volumes following market indices during 2023. We have been able to strengthen further the relationship with our customers. We have entered into several new long-term supply agreements. And that at the end -- and those long-term agreements also are based on these indices.

那麼未來會發生什麼事呢？嗯，這很難。價格最終是供需關係的結果。但作為我們商業策略的一部分，我們將在 2023 年繼續根據市場指數收縮銷售量。我們已經能夠進一步加強與客戶的關係。我們已經簽訂了幾項新的長期供應協議。最後，那些長期協議也是基於這些指數的。

So basically, SQM will always follow whatever the market is. And we are very confident on the fact that we are a cost leader. So our leadership position in cost, quality and sustainability allow us to be very confident that we will always be there in the market.

所以基本上，無論市場如何，SQM 都會跟隨。我們對自己是成本領先者這一事實非常有信心。因此，我們在成本、品質和永續性方面的領先地位使我們非常有信心，我們將永遠在市場上佔有一席之地。

Sorry, about DLE, and as you know, we have been working, as I already explained a couple of minutes ago, we are now working in what is going to be the technology and process and everything about Salar Futuro. And of course, if we reach -- if we reach an agreement with Codelco, and we have a project together with them, of course, we will be very clear and very specific about all the technologies and that -- and process we expect to implement in the Salar de Atacama. And of course, one of the alternatives, we have many different technical alternatives, technological alternatives with DLE. But so far, we'll announce if we have something for clear.

抱歉，關於 DLE，正如您所知，我們一直在努力，正如我在幾分鐘前解釋的那樣，我們現在正在研究有關 Salar Futuro 的技術和流程以及一切。當然，如果我們與 Codelco 達成協議，並且我們與他們合作了一個項目，當然，我們將非常清楚、非常具體地了解我們期望的所有技術和流程。在阿塔卡馬鹽沼實施。當然，作為替代方案之一，我們有許多不同的技術替代方案，即 DLE 技術替代方案。但到目前為止，如果我們有明確的消息，我們會宣布。

But anyway, we have been advancing in the technology point of view in order to have a new technology available to SQM. I will ask Mark, if you can comment on what we have been doing in terms of M&A in order to have more DLE knowledge and experience.

但無論如何，我們一直在技術方面不斷進步，以便為 SQM 提供新技術。我會問 Mark，您是否可以評論一下我們在併購方面所做的工作，以便獲得更多 DLE 知識和經驗。

Thanks, (inaudible). So yes, as you mentioned, we continue to be active in M&A, not only in the resource base, but also in further downstream technologies, both in processing and also in -- starting from DLE technologies. So in the last quarter, so Q3 of this year, we have made an investment to acquire a percentage stake on a French company called Adionics. And this is a French developer on DLE technology. And we're looking forward to continue now working together with them in engineering and developing industrial scaling for this kind of technology into the future. This is in addition also to other ventures and innovations and investments we perform in the SQM lithium ventures that we also tackle entrepreneurship and innovation in that area.

謝謝，（聽不清楚）。所以，是的，正如您所提到的，我們繼續積極進行併購，不僅在資源基礎上，而且在更下游的技術方面，無論是在加工方面還是從 DLE 技術開始。因此，在上個季度，也就是今年的第三季度，我們進行了投資，收購了一家名為 Adionics 的法國公司的部分股權。這是法國的DLE技術開發商。我們期待繼續與他們合作，在未來設計和開發此類技術的工業規模。除了我們在 SQM 鋰企業中進行的其他企業、創新和投資之外，我們還致力於該領域的創業和創新。

The next question comes from Isabella Simonato with Bank of America.

下一個問題來自美國銀行的 Isabella Simonato。

Thank you. Good afternoon, everyone. My question is on SPN. I think it's interesting that you guys are calling for the bottom on prices, right? When we look at the potash prices you guys had in the quarter and the spot prices for potash, right, it seems that there is downside to potash from now on. But on the other hand, as you're expecting more flattish SPN or some recovery on prices from now on, can we assume that the premium widened from Q3 levels going forward? I mean if you could give us a little bit more color on how are you seeing the dynamics of prices between one and another, I think it could be helpful.

謝謝。大家下午好。我的問題是關於 SPN 的。我認為你們呼籲價格觸底很有趣，對嗎？當我們查看本季的鉀肥價格和鉀肥現貨價格時，對吧，從現在開始鉀肥似乎存在下行趨勢。但另一方面，由於您預期 SPN 會更加平穩或價格從現在起會有所回升，我們是否可以假設未來溢價會較第三季水準擴大？我的意思是，如果您能給我們提供更多關於您如何看待彼此之間價格動態的信息，我認為這可能會有所幫助。

Hi, Isabella, Ricardo Ramos speaking. Yes, it is right that MOP prices being in a more stable environment, I think, in the last quarter. If you consider the prices of last year was very high in the MOP. Now we see during third quarter, and we do expect during fourth quarter to have similar price environment in the MOP that seems like we are reaching a stable price environment. That's quite good in order to have something for sure.

嗨，伊莎貝拉，我是里卡多·拉莫斯。是的，我認為上個季度澳門幣價格處於更穩定的環境是正確的。如果你考慮到去年的價格在澳門幣中是非常高的。現在我們看到在第三季度，我們確實預計第四季度 MOP 會有類似的價格環境，看起來我們正在達到穩定的價格環境。為了有確定的東西，這很好。

You never know fertilizer prices always being quite volatile, but the trend seems to be quite stable in the last, I don't know, 4 to 5 months. If you go to the specialty plant nutrition, the good news is that starting the year, the demand was very, very affected and was very low maybe because the prices were too high, coming from 2022 and some of the user and farming, especially in Europe, was affected about that and the lack of energy in order to produce. But nowadays, we foresee during the last quarter and again, in the last 2 quarters, a positive environment in volumes.

你永遠不知道化肥價格總是波動很大，但最近（我不知道）四到五個月的趨勢似乎相當穩定。如果你去專業植物營養，好消息是，從今年開始，需求受到了非常非常大的影響，而且非常低，可能是因為從 2022 年開始價格太高，一些用戶和農業，尤其是在歐洲受到了這一問題以及缺乏生產能源的影響。但如今，我們預計在上個季度以及最後兩個季度，銷售量將出現積極的環境。

We are very positive about fourth quarter. Our first idea about fourth quarter is going to be a record. It means it would be very high in terms of volumes, and we do expect, and we are very positive moving forward to the year 2024 in specialty plant nutrition, especially we're talking about potassium nitrate.

我們對第四季非常樂觀。我們對第四季的第一個想法將是創紀錄。這意味著產量將會非常高，我們確實預計，並且我們非常積極地邁向 2024 年特種植物營養領域，尤其是我們正在談論的硝酸鉀。

Pricing is always difficult, as I said before, with the MOP to say what is going to be the future price. But today, price is more stable than probably 6 months ago. We think that keeping pricing at today levels, maybe slightly lower because the volume increase in different areas is a reasonable assumption.

正如我之前所說，定價總是很困難，由 MOP 決定未來的價格。但今天的價格可能比 6 個月前更穩定。我們認為，將定價保持在當前水平，甚至可能略低，因為不同地區的銷售增加是一個合理的假設。

But again, fertilizer pricing, it's volatile and the fertilizer market being under a lot of pressures moving up and down in the last 2 years, and thus we need to be very careful, having long-term projections about pricing in the fertilizer. But we think that today, the environment is more positive in terms of volumes and probably more stable in terms of pricing.

但同樣，化肥價格波動較大，過去兩年化肥市場承受著很大的上下波動的壓力，因此我們需要非常小心，對化肥定價進行長期預測。但我們認為，現今的環境在銷售方面更加積極，在定價方面可能更加穩定。

This concludes our question-and-answer session. I would like to turn the conference back over to Irina Axenova for any closing remarks.

我們的問答環節到此結束。我想將會議轉回伊琳娜·阿克塞諾娃 (Irina Axenova) 發表閉幕詞。

Thank you for joining our call today, and we look forward to having you in our next call. Goodbye.

感謝您今天加入我們的電話會議，我們期待您下次參加我們的電話會議。再見。

Yes, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

是的，會議現在已經結束了。感謝您參加今天的演講。您現在可以斷開連線。