UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2017.
Commission File Number 33-65728
CHEMICAL AND MINING COMPANY OF CHILE INC.
(Translation of registrant’s name into English)
El Trovador 4285, Santiago, Chile (562) 2425-2000
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F: x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
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SQM Los Militares 4290 Piso 6, Las Condes, Santiago, Chile Tel: (56 2) 2425 2485 Fax: (56 2) 2425 2493 www.sqm.com |
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Santiago, Chile. November 24, 2017.- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) held a conference call to discuss the third quarter 2017 results, which were published on November 22, 2016. The following items were discussed by executive management as part of the conference call:
We posted our results for the first nine months of the year; our net income reached US$317.2 million, an increase of over 60% when compared to the first nine months of last year.
Our results were very positive based on several factors seen during the first nine months of the year, higher sales volumes in potassium nitrate, higher prices in lithium market, and record sales volumes in the iodine market. These numbers were supported by the fact that we once again were able to prove our flexibility and ability to respond to market needs and changes. Our operations teams in both the Salar de Atacama and Nueva Victoria were able to ramp up production in order to accommodate market needs, specifically for iodine, potassium nitrate and lithium.
In the lithium market, our sales volumes exceeded 12,700 MT during the third quarter. These volumes coupled with average prices of over US$13,000 led to a contribution to gross profit from lithium totaling 61%. We are still on target to sell around 50,000 tons of lithium this year, and believe average prices during the second half of the year will exceed lithium prices seen during the first half of 2017.
In the specialty plant nutrition business line, our nitrates expansion project continues to move forward and with good reason. Our sales volumes were over 9% higher during the first nine months of this year, compared to the same period last year as a result of strong demand growth along with decreased supply from our competition. We will ensure that we are fully available to meet the growing demand of the future.
Our 2017 capital expenditure should total US$170 million this year. In Argentina, the project Minera Exar will invest around US$60 million in 2017, of which, US$30 million will come from us.
Our cash generation capacity has allowed us to report a very strong balance sheet in the third quarter, with a NFD/EBITDA of less than 0.3x. We announced last night that we will pay a dividend equivalent to 100% of the net income of the results of the third quarter; this will be paid on December 14, 2017.
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About SQM
SQM is an integrated producer and distributor of lithium, iodine, specialty plant nutrients, potassium-related fertilizers and industrial chemicals. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 110 countries.
SQM´s business strategy is to be a mining operator that selectively integrates the production and sales of products to industries essential for human development, such as food, health and technology. The strategy is built on the following six principles:
| • | strengthen internal processes to ensure access to key resources required for the sustainability of the business; |
| • | extend lean operations (M1) to the entire organization to strengthen our cost position, increase quality and ensure safety; |
| • | invest in the development of a specialty fertilizer market, including product differentiation, sales channel management and price optimization; |
| • | recover the iodine market share, seek consolidation and vertical integration opportunities; invest in the development of industrial nitrate applications; |
| • | search and invest in lithium and potassium assets outside of Chile to leverage our operational capabilities, take advantage of the current lithium market appeal and ensure access to raw materials for our potassium nitrate production; and |
| • | seek diversification opportunities in gold, copper and zinc projects in the region to leverage our mining operating capabilities and provide business continuity to our exploration program. |
The business strategy´s principles are based on the following four concepts:
| • | build an organization with strategic clarity, inspirational leaders, responsible personnel and strong values; |
| • | develop a strategic planning process that responds to the needs of our customers and market trends, while ensuring coordination between all segments of the business, including sales and operations; |
| • | develop a robust risk control and mitigation process to actively manage business risk; and |
| • | improve our stakeholder management to establish links with the community and communicate to Chile and worldwide our contribution to industries essential for human development. |
For further information, contact:
Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com
Kelly O’Brien 56-2-24252074 / kelly.obrien@sqm.com
Irina Axenova 56-2-24252280 / irina.axenova@sqm.com
For media inquiries, contact:
Carolina García Huidobro / carolina.g.huidobro@sqm.com
Alvaro Cifuentes / alvaro.cifuentes@sqm.com
Tamara Rebolledo / tamara.rebolledo@sqm.com (Northern Region)
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “plan,” “believe,” “estimate,” “expect,” “strategy,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make concerning the Company’s business outlook, future economic performance, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, specifically the most recent annual report on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CHEMICAL AND MINING COMPANY OF CHILE INC. | |
| (Registrant) | |
| Date: November 24, 2017 | /s/ Ricardo Ramos |
| By: Ricardo Ramos | |
| CFO & Vice-President of Development |
Persons who are to respond to the collection of information contained SEC 1815 (04-09) in this form are not required to respond unless the form displays currently valid OMB control number.
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