• SQM reported net income(1) for the twelve months ended December 31, 2022 of US$3,906.3 million compared
to US$585.5 million for the same period the year before. Earnings per share totaled US$13.68 for the first twelve
months ended December 31, 2022, significantly higher than the US$2.05 reported for the same period of 2021.
• Revenues for the twelve months ended December 31, 2022, were US$10,710.6 million.
• During the twelve months ended December 31, 2022, contributions to the Chilean treasury surpassed US$5.0
SQM will hold a conference call to discuss these results on Thursday, March 2, at 10:00am ET (12:00pm Chile time).
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Santiago, Chile. March 1, 2023.- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock
Exchange: SQM-B, SQM-A) reported today earnings for the twelve months ended December 31, 2022, of US$3,906.3
million (US$13.68 per ADR), an increase from US$585.5 million (US$2.05 per ADR) for the twelve months ended
December 31, 2021.
Gross profit(2) reached US$5,736.6 million (53.6% of revenues) for the twelve months ended December 31, 2022, higher
than US$1,090.1 million (38.1% of revenues) recorded for the twelve months ended December 31, 2021. Revenuestotaled
US$10,710.6 million for the twelve months ended December 31, 2022, representing an increase of over 274% compared
to US$2,862.3 million reported for the twelve months ended December 31, 2021.
The Company also announced earnings for the fourth quarter of 2022, reporting net income of US$1,151.0 million
(US$4.03 per ADR) compared to US$321.6 million (US$1.13 per ADR) for the fourth quarter of 2021. Gross profit(2) for
the fourth quarter of 2022 reached US$1,641.9 million, higher than the US$542.8 million recorded for the fourth quarter
of 2021. Revenues totaled US$3,133.6 million, an increase of approximately 189% compared to the fourth quarter of 2021,
when revenues amounted to US$1,084.3 million.
SQM’s Chief Executive Officer, Ricardo Ramos, stated: “We are well pleased with the extraordinary results that the
company delivered in 2022. While the positive price environment during the year contributed to the record earnings that
we published today, our long-term view of the lithium market, the investments we made in new capacity, the risk we took
and the operational success, all of that well positioned us to benefit from the market conditions seen last year.”
He continued, “The successful public-private alliance we have with CORFO is also yielding great results, allowing us to
contribute more than US$5 billion to the Chilean treasury, along with important contributions to local governments and
SQM S.A. 4Q2022 Earnings release 2
He went on by saying, “As electric vehicle sales continue to grow, we now expect the lithium demand to reach almost 1.5
million metric tons by 2025. This strong demand growth expectations give us confidence as we remain focused on
expanding our lithium production capacity. In Chile, we have reached a run-rate of 180,000 metric tons of high-quality
lithium products while working to further expand our lithium carbonate and lithium hydroxide capacity. With our lithium
project in Australia in construction, we expect to be producing spodumene from the Mt. Holland site by the end of the year
and lithium hydroxide during the first half of 2025. The Sichuan refinery is expected to be completed in the second quarter
this year while we continue to invest in lithium exploration. Our 2023-2025 revised capital expenditure plan reflects our
growth plans during this period.”
The CEO closed by saying, “Last year, we announced our vision for the sustainable future of lithium mining operations
in the Salar de Atacama. Our team is fully dedicated advancing on the technical documentation that we expect to submit
for evaluation to the Chilean authorities in 2024. We remain very optimistic about the Salar Futuro project, which when
implemented, will ensure that the lithium products from the Salar de Atacama are produced in the most sustainable way,
setting new standards, not just for the lithium industry, but for the mining industry as a whole.”
CAPEX plan 2023-2025
We expect our capital expenditure for the 2023-2025 period to reach approximately US$3.4 billion, including maintenance.
As we continue with lithium capacity expansion in Chile, we expect to invest approximately US$1.4 billion to increase
our lithium capacity to 210,000 metric tons, including 100,000 metric tons of lithium hydroxide capacity. Our investment
in the Mt. Holland project during this period is expected to be close to US$450 million. Nitrates and iodine capacity
expansion will require a total capex of approximately US$1.2 billion, including maintenance. Maintenance capex during
this period is expected to be approximately US$180 million per annum. We expect the total capex for 2023 to be close to
US$1.2 billion, including maintenance.
In line with our sustainability goals, during 2022, we continued with IRMA certification process and completed on-site
certification audit (phase 2) in the Salar de Atacama operation. We expect to receive final report in the coming months.
In 2022, we participated in the Dow Jones Sustainability Indices (DJSI) assessment and were accepted into the MILA and
Chile indices for the third consecutive year and were included in the Sustainability Yearbook 2023. Additionally, we
evaluated ourselves in Carbon Disclosure Project (CDP) where we obtained category B, which is in the management band,
higher than the South American region average (C) and higher than the Chemicals sector average (-B).
During 2022, we completed the phase 2 of ISO 14001 and 45001 certification process in Salar de Atacama and the Carmen
chemical plant, and continued with the implementation process of ISO 50001 in the Salar de Atacama and Nueva Victoria
to support decarbonization goals associated with energy management systems.
Lithium and Derivatives
Revenues for lithium and derivatives totaled US$8,152.9 million during the twelve months ended December 31, 2022, an
increase of 770.9% compared to US$936.1 million recorded for the twelve months ended December 31, 2021.
Revenues for lithium and derivatives during the fourth quarter of 2022 increased 457.8% compared to the fourth quarter
of 2021. Total revenues amounted to US$2,525.1 million during the fourth quarter of 2022, compared to US$452.7 million in the fourth quarter of 2021.
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