Sociedad Quimica y Minera S.A.

Good day everyone and thank you for standing by. Welcome to the SQM second quarter 2026 conference call. At this time all participants are in a listen only mode. After the presentation there will be a question and answer session. To ask a question you will need to press star 1 1 on your telephone. You will then hear a message advising your hand is raised. To withdraw the question press star 1 1 again. Please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to Megan Suter with Investor Relations. Please proceed.

Good day and thank you for joining SQM's Earnings Conference Call for the second quarter of 2026. This call is being recorded and webcast live. Our earnings press release and the accompanying results presentation are available on our website where you can also find a link to the webcast. Today's participants include Mr. Ricardo Ramos, Chief Executive Officer, Mr. Gerardo Illanes, Chief Financial Officer, Mr. Carlos Diaz, CEO of Novandino, Mr. Pablo Altimiras, CEO of the Iodine and Plant Nutrition Division, and Mr. Mark Fons, CEO of the International Lithium Division. Also joining us today are members of our commercial and business intelligence teams, Mr. Felipe Smith, Commercial Vice President of Novandino Mr. Pablo Hernández, Vice President of Strategy and Development of Novandino Mr. Juan Pablo del Olio, Commercial Vice President for Plant Nutrition and Specialty Products Mr. Alvaro Araya, CFO of the International Lithium Division Mr. Andrés Fontanaz, Commercial Vice President of the International Lithium Division and Mr. Max Vial, Head of Studies of the International Lithium Division. Before we begin, please note that statements made during this 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 U.S. federal securities laws. These statements are not historical facts and are subject to risks and uncertainties that could cause actual results to differ materially. We assume no obligation to update these statements except as required by law. For a full discussion of forward-looking statements, please refer to our earnings press release and presentation. With that, I will now turn the call over to our Chief Executive Officer, Mr. Ricardo Ramos.

Thank you. Good morning and thank you for joining us today. I'm pleased to report SQM's second quarter results, which reflect a strong performance across our main business lines. I would like to start by highlighting an important milestone for our lithium operations in Chile. In July, Novandino Lithio, our association with CODELCO, submitted the environmental and technical documentation for the SALAR Futuro project to the authorities. Salar Futuro represents the next stage in the transformation of our operations in the Salar Atacama, subject to the required approvals. The project contemplates approximately $3 billion of investment over seven years and is designed to increase production while significantly reducing the environmental footprint of our operations. I would also like to highlight the contribution that our operations make to Chile. During the first half of this year, SQM and its subsidiaries accrue more than 1.6 billion in payments to the Chilean government, including taxes, contribution to local governments, and payments to Corfo. Moving to the lithium market, we achieve record quarterly sales volumes of more than 84,000 metric tons of lithium carbonate equivalent from our operations in Chile through Novandino Lithium and in Australia through Covalent Lithium. As anticipated in our previous earnings report, lithium prices increased during the second quarter, supported by a strong than expected market demand. We now expect global lithium demand to exceed 2.1 million metric tons in 2026. We continue to expand our production capabilities in both Chile and Australia. In Chile, we expect Nova Andino Lithium to produce between 280,000 and 290,000 metric tons of lithium carbonate equivalent this year, and to have approximately 300,000 metric tons of production capacity by next year. In Australia, together with our partner with farmers, we recently announced the expansion of the Moon Holland mine and concentrator, which is expected to double its podium in concentrate production capacity to approximately Thank you very much. Robust market demand and favorable pricing. We expect demand to remain robust. Our seawater pipeline is currently in its commissioning phase and will provide additional flexibility to optimize our production and respond to market conditions. We are now producing iodine from our four different operations and we expect total iodine production to reach approximately 15.5 thousand metric tons this year. We continue to expect full-year sales volumes to increase by approximately 10% compared to 2025. Market conditions have benefited from supply constraints in certain markets, and we expect these conditions to gradually normalize toward the end of the year. Finally, We have updated our capital expenditure outlook. We now included 2028 and we expect approximately total capital expenditures of approximately 3 billion over the three years 26-28 period. This investment is mainly focused on supporting future growth and enhancing the competitiveness of our operations through lower production costs. Overall, We are encouraged by the performance delivered during the first half of the year and remain focused on executing our growth plans and creating long-term value from our shareholders. With that, I will turn the call and we can go operator to the Q&A. Thank you.