SQM have just reported.. Sociedad Química y Minera de Chile S.A....

SQM have just reported..



Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange:
SQM-B, SQM-A) reported earnings today for the six months ended June 30, 2017 of US$204.4
million (US$0.78 per ADR), an increase from US$141.6 million (US$0.54 per ADR),
representing a 44.3% increase compared to the earnings reported for the six months ended
June 30, 2016. Gross profit reached US$357.8 million (35.0% of revenues) for the six
months ended June 30, 2017, higher than US$260.5 million (29.6% of revenues) recorded for
the six months ended June 30, 2016. Revenues totaled US$1,023.9 million for the six
months ended June 30, 2017, representing an increase of 16.2% compared to US$881.5
million reported for the six months ended June 30, 2016.
The Company also announced earnings for the second quarter of 2017, reporting net
income of US$101.2 million (US$0.38 per ADR) compared to US$83.1 million (US$0.32 per
ADR) for the second quarter 2016. Gross profit for the second quarter 2017 reached
US$179.9 million; higher than the US$146.9 million recorded for the second quarter 2016.
Revenues totaled US$505.7 million, an increase of approximately 3.3% compared to the
second quarter 2016, when revenues amounted to US$489.6 million.
SQM's Chief Executive Officer, Patricio de Solminihac, stated, "We are pleased with the
results we published today. The EBITDA for this first half of the year was US$433
million. Sales volumes in the specialty plant nutrition business line were the strongest
reported in recent history. As anticipated, the sales volumes in the potassium chloride
business line were down compared to the second quarter last year; we are still expecting
that sales volumes in this business line will be between 1.2 and 1.3 million MT this year
as we maximize lithium production. Also as anticipated, potassium chloride prices have
stabilized at higher levels than last year."
"In the lithium market, we continue to see strong demand growth. We expect the average
price in the second half to be higher than the average price seen during the first half
of this year. We continue to move forward with our new projects; in Chile, the lithium
hydroxide expansion and the lithium carbonate expansion are expected to be completed by
the middle of 2018. In Argentina, we are working on the hydrogeological model with the
corresponding drilling, a key component of the final development stage. Finally, during
July, we announced a 50/50 joint venture with Kidman Resources to develop a 40,000 MT
lithium project in western Australia, the high-quality Mount Holland project. These
initiatives are in line with our strategic plan to continue developing lithium projects
where our competitive advantages and expertise add significant value to a growing and
attractive market."
"In the iodine market, we have been working over the past several years to increase our
sales volumes in line with our corporate strategy and operational plan. This year our
market share should return to levels seen before the price boom period. During the first
half of 2017, we saw sales volumes reach the highest levels reported during any six-month
period. As anticipated, these higher sales volumes have come with lower prices, but given
our current cost position, margins are healthy. Because of the higher sales volumes we
have seen in recent quarters, and expectations that this trend will continue in the
future, we are adding new iodine capacity in Nueva Victoria. We expect that this
expansion will bring our total capacity to approximately 14,000 MT, and it is expected to
be operational in mid-2018."
About SQM
SQM is an integrated producer and distributor of lithium, iodine, specialty plant
nutrients, potassium-related fertilizers and industrial chemicals. Its products are
based on the development of high quality natural resources that allow the Company to be a
leader in costs, supported by a specialized international network with sales in over 110
countries.
SQM's business strategy is to be a mining operator that selectively integrates the
production and sales of products to industries essential for human development, such as
food, health and technology. The strategy is built on the following six principles:
-- strengthen internal processes to ensure access to key resources required
for the sustainability of the business;

-- extend lean operations (M1) to the entire organization to strengthen our
cost position, increase quality and ensure safety;

-- invest in the development of a specialty fertilizer market, including
product differentiation, sales channel management and price optimization;

-- recover the iodine market share, seek consolidation and vertical
integration opportunities; invest in the development of industrial
nitrate applications;

-- search and invest in lithium and potassium assets outside of Chile to
leverage our operational capabilities, take advantage of the current
lithium market appeal and ensure access to raw materials for our
potassium nitrate production; and

-- seek diversification opportunities in gold, copper and zinc projects in
the region to leverage our mining operating capabilities and provide
business continuity to our exploration program.
The business strategy's principles are based on the following four concepts:
-- build an organization with strategic clarity, inspirational leaders,
responsible personnel and strong values;

-- develop a strategic planning process that responds to the needs of our
customers and market trends, while ensuring coordination between all
segments of the business, including sales and operations;

-- develop a robust risk control and mitigation process to actively manage
business risk; and

-- improve our stakeholder management to establish links with the community
and communicate to Chile and worldwide our contribution to industries
essential for human development.