Yushin Park's questions to Posco Holdings Inc (PKX) leadership • Q2 2024
Question
Yushin Park from HSBC requested an update on capital expenditures for the current and next year, including the impact of cash from restructuring, and asked for an outlook on when the lithium business might reach its break-even point given market oversupply.
Answer
An executive stated that this year's CapEx plan was slightly reduced due to market conditions, with next year's plan projected around KRW 10 trillion. Cash from restructuring is earmarked for shareholder returns and growth investments. Regarding lithium, management believes prices have bottomed but recovery is uncertain (2026-2028). The current focus is on ramping up production to be ready for a market rebound rather than a specific break-even date.