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    Emerson Vieira • Goldman Sachs

    Emerson Vieira's questions to Sociedad Quimica y Minera de Chile SA (SQM) leadership

    Emerson Vieira's questions to Sociedad Quimica y Minera de Chile SA (SQM) leadership • Q2 2025

    Question

    Emerson Vieira of Goldman Sachs requested an updated assessment of the portion of global lithium supply currently operating 'underwater' at prevailing prices. He also asked for an update on the company's CapEx forecast for 2026 and 2027.

    Answer

    Pablo Hernández Mac-Donald, VP of Strategy & Development, responded that SQM believes some competitors still have costs higher than current prices, suggesting long-term prices need to be higher. CFO Gerardo Illanes stated that a full CapEx plan review will be updated in the Q3 call, reminding that the vast majority of the previously guided ~$1 billion annual CapEx is for growth, with maintenance at ~$250 million per year.

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    Emerson Vieira's questions to Sociedad Quimica y Minera de Chile SA (SQM) leadership • Q2 2025

    Question

    Emerson Vieira of Goldman Sachs requested an updated view on the lithium cost curve and the percentage of supply currently underwater, as well as an update on the CapEx outlook for 2026-2027.

    Answer

    Pablo Hernández, VP of Strategy & Development, stated that some competitors' costs are still likely above current prices, suggesting long-term prices need to be higher. CFO Gerardo Illanes indicated that a full CapEx plan update for the coming years will be provided during the third quarter earnings call, reiterating that the vast majority of the previously guided ~$1B annual spend is for growth.

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    Emerson Vieira's questions to Ternium SA (TX) leadership

    Emerson Vieira's questions to Ternium SA (TX) leadership • Q2 2025

    Question

    Emerson Vieira of Goldman Sachs Group Inc. sought clarification on the $300 million cost reduction target, asking for the comparison baseline and whether it includes Usiminas. He also questioned the impact of lower Mexican imports on steel prices and the potential for further price hikes in Q3, and asked for more detail on Mexico's specific trade measures.

    Answer

    CEO Máximo Vedoya clarified the $300 million cost reduction target is for 2025 compared to 2024, excluding raw material price effects and not including Usiminas. He stated that Mexican steel prices might see a mild improvement but not a radical one. He elaborated that the trade measures involve closing loopholes for temporary imports and dumping, with the government enhancing its capacity to analyze new anti-dumping cases.

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    Emerson Vieira's questions to Ternium SA (TX) leadership • Q2 2025

    Question

    Emerson Vieira of Goldman Sachs Group, Inc. sought clarification on the $300 million cost reduction target, asking for its comparison basis and whether it included Usiminas. He also questioned if lower imports in Mexico would support further price increases and asked for more detail on the nature of Mexico's recent trade measures.

    Answer

    CEO Máximo Vedoya clarified that the $300 million cost reduction target is benchmarked against 2024 performance, excludes raw material effects, and does not include Usiminas, which has a separate plan. He anticipates only a 'mild improvement' in Mexican prices, with the primary benefit being market share gains. Vedoya described the trade measures as closing loopholes and enhancing anti-dumping case analysis rather than new quotas.

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