SQM
Sociedad Quimica Y Minera de Chile S.A. - ADR
Industrial/Transportation
12/16/2021
Presented
| Date | 12/09/2021 |
| Price | $57.36 |
| Market Cap | $8.19B |
| Ent Value | $15.45B |
| P/E Ratio | 48x |
| Book Value | $11.49 |
| Div Yield | 0.96% |
| Shares O/S | 142.82M |
| Ave Daily Vol | 1,361,968 |
| Short Int | N/A |
Current
| Price | $38.89 |
| Market Cap | $5.55B |
| Sociedad Quimica y Minera de Chile SA engages in the production and distribution of fertilizers, potassium nitrate, iodine, and lithium chemicals. It operates through the following segments: Specialty Plant Nutrients, Iodine and Derivatives, Lithium and Derivatives, Industrial Chemicals, Potassium, and Other Products and Services. The Specialty Plant Nutrients segment produces potassium nitrate, sodium nitrate, sodium potassium nitrate, and specialty blends. The Iodine and Derivatives segment manufactures iodine and iodine derivatives, which are used in a wide range of medical, pharmaceutical, agricultural, and industrial applications. The Lithium and Derivatives segment covers lithium carbonate for electrochemical materials for batteries, frits for the ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals, and lithium derivatives. The Industrial Chemicals segment comprises industrial chemicals including sodium nitrate, potassium nitrate, and boric acid. The Potassium segment produces potassium chloride and potassium sulfate. The Other Products and Services segment deals with other fertilizers and blends. The company was founded on June 17, 1968 and is headquartered in Santiago, Chile. |
Publicly traded companies mentioned herein: Albemarle Corp (ALB), Sociedad Química y Minera de Chile SA (SQM), Tesla Inc (TSLA), Tianqi Lithium Corp (002466 CH)
Highlights
The presenter is long shares of Sociedad Química y Minera de Chile SA (SQM), a diversified producer of chemicals based in the Atacama Desert that is also the world's largest lithium producer. He is broadly bullish on lithium and the ability of producers to grow volumes and capture value while demand grows as a function of the growth of the EV sector. The average battery pack for an EV these days has a capacity of around 45 kilowatt hours and Tesla is pushing battery capacities upwards of 100 kwh. As the industry sets higher standards on battery capacities, the EV sector is projected to require up to 2MM tons of lithium by 2030 for an industry that had only 200k tons a few years ago. These tailwinds, as well as a sum of the parts evaluation of the company’s ancillary businesses (i.e., associated chemicals to the lithium mining process), lead the presenter to a case for a $100 price target.
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