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Chemical & Mining Co. of Chile Inc. Message Board

  • jeepcreep111 jeepcreep111 Jul 30, 2013 1:57 PM Flag

    Potassium products are 25% of SQM Revenue

    This is gonna hurt....still you can't trust anything coming out of Russia...or China....or our own White House for that matter. I will probably be buying more.....Lithium is gold

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    • Revenue per 1st Quarter 2013 report in thousands of U.S. dollars:

      Specialty plant nutrition $ 196,739
      Iodine 147,898
      Lithium 41,887
      Industrial Chemicals 70,884
      Potassium 152,945
      Other 13,044
      Total 623,397

      So lithium is only 6.7% of SQM's revenue and SQM is roughly 35% of world market for lithium so lithium is not as important to SQM as I believe most of us were thinking.

      Sentiment: Hold

      • 1 Reply to rogers2308
      • Or you could say that SQM has a dominant position in a market for a nascent product. Broad use of Lithium in batteries is relatively new. I just bought a lithium powered lawn appliance and you might argue that cars (despite the relative growth of Hybrids are still in the early adopter phase.

        I don't understand how SQMs specialty ag products might differ from the commodity POT products. True some of them contain potassium, but is there enough differentiation in their formulation that they sell. They seem to have higher margins (24% vs 18%) so I wonder if there's enough differentiation there that they won't be hit as hard by the cartel breakup. That would isolate the profit hit solely to the potassium business (you could give the speciality ag business sales a a 12.5% (50% of 25%) margin haircut for good measure.

        Admittedly Lithium is a small piece of the world, but it will grow and the world has to eat. If this stock offered LEAPs I'd be very interested. It'd be nice to double down with a 3 year horizon.

    • "Potassium products are 25% of SQM revenue"

      More like 50% (when include all plant/potassium products)... but still think it a good buy right now...

      Sentiment: Buy

    • Me too. How often can you buy a Great Lithium etc Producer for half price and right b4 the Ex;Div date

      Sentiment: Strong Buy

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