Sociedad Química y Minera de Chile S.A.

SQM did not give consolidated revenue, EPS or gross margin figures in the transcript. Lithium sales volumes in Q1 2026 increased 25% year over year to approximately 69,000 metric tons LCE, and average lithium sales price was roughly $18/kg versus $10/kg in Q4 2025. Management said Novandino Lithium generated more than $530 million in contributions to the Chilean state in the first quarter through CORFO payments, taxes and transfers to local governments. For the full year, SQM raised lithium sales volume guidance to about 15% growth versus 2025, raised Specialty Plant Nutrition sales volume guidance to about 10% growth versus 2025, and kept iodine volume guidance broadly in line with last year or slightly higher. Management also said Q2 lithium prices are expected to be higher than Q1, Q2 lithium volumes should be strong, and the Mount Holland expansion review is targeted for early Q3 2026, with $200 million of SQM share CapEx planned for 2027 for that project. Salar Futuro was estimated at about $3 billion of investment, with environmental study filing expected in the next few months, final approval expected during 2029, and investment start targeted for 2030.

Ricardo Ramos struck an upbeat tone, calling the quarter strong and emphasizing that SQM is operating at full capacity while investing for future growth. He framed the first full quarter of the Codelco partnership as a milestone for both SQM and Chile, highlighting more than $530 million of state contributions in the quarter. He also pointed to supportive market conditions in lithium, specialty plant nutrition and iodine, and said the company is positioned to keep delivering solid results.

Gerardo Illanes said cash and cash equivalents were higher than at year-end, mainly due to stronger lithium, iodine and nitrate pricing, but noted that cash will be used for dividends, CORFO and other tax-related payments. He said the company pays 50% of prior-year net income as dividends and is still assessing whether to make any interim dividend this year. On taxes, he explained that the lithium business faced a higher accrued mining tax because profitability rose; he said the mining tax ranges from 0% to 14% and is currently around 11% to 12% of profit, excluding CORFO payments. He also said upcoming cash needs are elevated because of higher state payments and a high CapEx program across Chile and International Lithium.

Analysts focused on lithium pricing, the use of potential windfall cash, the durability of SPN demand gains from China export restrictions, iodine supply risk, Salar Futuro returns, Mount Holland timing, and higher taxes. Management said Q1 lithium pricing averaged about $18/kg and expects Q2 to be higher, but remains cautious on predicting prices beyond Q2 because the market is still highly volatile. On capital allocation, management said it has not decided on any special dividend and must first weigh dividend policy, CORFO payments and CapEx; on Salar Futuro, management said inflation may raise project cost but should also lift commodity prices, leaving returns intact in their view. On iodine and SPN, management said demand is strong, supply is tight, and China export restrictions plus war-related input costs are supporting prices.