Q2 2024 CSN Mineracao SA Earnings Call (English, Portuguese) Transcript
Key Points
- CSN Mineracao SA (BSP:CMIN3) achieved its best production performance since 2016, with a record 10.4 million tons produced in Q2 2024.
- The company reported a significant increase in EBITDA margin to 49%, driven by a better product mix and reduced production costs.
- CSN Mineracao SA (BSP:CMIN3) generated a solid cash flow of BRL1.2 billion, resulting in a net cash position of BRL2.8 billion at the end of the quarter.
- The company exceeded its production growth target, achieving an increase of 2.94 million tons compared to the first semester of 2023.
- CSN Mineracao SA (BSP:CMIN3) maintained a strong capital structure with a net debt/EBITDA ratio of 0.32 times, supporting growth projects and dividend payments.
- The unit net revenue decreased by 5.4% to USD58.6 per ton due to a drop in ore prices and adjustments in exported products.
- Freight costs increased by $1 compared to the previous quarter, reaching $25.2 in Q2 2024.
- The company experienced a negative impact on net working capital, with a reduction of BRL136 million to BRL566 million negative.
- There is a continued challenge with the quality of ore, which is impacting margins and requires improvement.
- The CapEx increased by 60.9% in Q2 2024, indicating higher investment needs to maintain operational capacity and advance expansion projects.
Good morning, and thank you for waiting. Welcome, everyone to CSN Mineração conference call to present the results of the second quarter 2024. Today we have with us the company's executive officers.
We would like to inform you that this event is being recorded. (Operator Instructions) Today's event can be accessed on the CSN Mineração investor relations website at ri.csnmineracao.com.br, where the presentation is also available. The replay of this event will be available right after its conclusion.
Before proceeding, we would like to declare that some of the statements herein are mere expectations or trends and are based on current assumptions and opinions of the company's management. And future results, performance, and events may differ materially from those expressed herein, which do not constitute projections [to be fact].
Actual results, performance, and events may differ materially from those expressed or implied by forward-looking statements as a result of several factors such as the general and economic conditions in Brazil and other countries; interest rate and
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