A Word from the Chairman
Eduardo Guilisasti Gana
Chairman of the Board of Molymet
Dear Shareholders, Employees and everyone who has played a part in Molymet’s growth.
In my first message as Chairman of the Board, I would like to not only present this annual report and the financial statements for the year, but also convey the company’s spirit and the foundations of its past, present and future development, which are key to its success.
Since Molymet’s origins, we have understood the value of our surroundings. Bear in mind that the company was founded by two immigrants who looked to the land and water to build their future in Chile, a place far from their roots.
They also soon learned the value of involving others to build their dreams and that hard work, effort and innovation could make their dreams come true. From the outset, they knew that development came from adding value. The passage of time has proven them right.
That’s how Molymet was created, with solid roots grounded in concern for communities, an entrepreneurial spirit and appreciation of employees, which are the backbone of our entire operation. Those roots have evolved to include caring for the environment and the sustainable development of Molymet and its stakeholders.
Each of these elements of Molymet’s culture helped define the path taken by the company in 2021, a year filled with challenges for all companies worldwide. Given our origins, we transformed these challenges into opportunities, despite clearly limited raw material supplies.
Industries around the world suffered from the supply chain crisis that strongly disrupted foreign trade, with major hardships to ship exports and consumables because of vessel, container and port personnel staffing shortages. However, the Molymet team’s sharp ability to analyze the market enabled us to overcome the difficulties, properly manage logistics and deliver our products to our customers, fully meeting contractual commitments and consolidating our leading position in the molybdenum and rhenium industry.
As a result, molybdenum oxide was one of Chile’s main export products in 2021. Without a doubt, Molymet played an important role in that figure. Furthermore, our innovation capacity and entrepreneurial vision led to a change in our sales strategy designed to favor more liquid, more profitable markets.
This shift coincided with a brisk recovery in molybdenum consumption in western markets, which began at US$ 10.2 / lb and closed the year at US$ 18.6. As a result, our working capital requirements increased and, thanks to Molymet’s robust financial position, we placed approximately US$190 million in corporate bonds in the Mexican market with very good financial conditions. For the year, sales reached US$1,453,44 million, giving us EBITDA of US$193.20 million and profit of US$97.19 million. In light of our favorable financial performance, the Board agreed in December to distribute interim dividend No. 90 of US$0.20 per share.
In a context of contracting investments and economic uncertainty generated by the effects of the COVID-19 pandemic and looming changes to our judicial system, Molymet is forging ahead with the most important investment in sustainability and environmental matters made by the company in the last five years, totaling around US$60 million. Over the next few years we will complete works to modernize gas washing systems at MolymetNos, which will help us voluntarily reduce SO2 emissions by 40% and make a tangible contribution to our surroundings.
Internally, we continued to make strides to protect people from COVID-19 and to build working environments where everyone feels involved, recognized and appreciated for their work. In order to strengthen our culture and provide clarity to employees, in 2021 we decided to work on a new Code of Conduct and develop a series of internal policies to strengthen our strategy and foster sustainability, productivity, innovation and the commitment of our entire team at Molymet.
In this spirit, I can proudly say that in 2021 we have remained faithful to the purpose we defined one year ago: To create value for the evolution of humanity through products developed by people who think about the well-being of the planet.
Before I close, I must thank our employees, whose effort and constantly challenged creativity spurred the company forward on its outlined route, despite the complex times in which we live and will certainly experience in the future. To our shareholders, I am grateful for the support they have given us, backing investment decisions that will help us continue to innovate in the market. Finally, at a time of prevailing mistrust, I thank the communities that have believed in and worked with us to create shared value everywhere Molymet operates.
Having concluded 2021, based on the company’s good financial results the Board of Directors has agreed to propose to shareholders a dividend of US$ 0,40 per share, which represents 54,74% of profit for the year. If approved, it will be paid on April 28, 2022, less the amount already paid in interim dividends.
