Loma Negra Compania Industrial Argentina Q4 2024 Earnings Report

Loma Negra Compania Industrial Argentina EPS Results

• Actual EPS: N/A
• Consensus EPS: -$0.11
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Loma Negra Compania Industrial Argentina Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $166.00 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Loma Negra Compania Industrial Argentina Announcement Details

• Quarter: Q4 2024
• Date: 3/6/2025
• Time: After Market Closes
• Conference Call Date: Friday, March 7, 2025
• Conference Call Time: 10:00AM ET

Loma Negra Compañía Industrial Argentina S.A. is Argentina’s leading cement producer, offering a comprehensive portfolio of building materials and construction solutions. The company operates a network of integrated cement plants, quarries and distribution centers across the country, supplying high-quality clinker, cement, concrete, mortar and lime products. With its headquarters in Buenos Aires and primary manufacturing facilities in San Juan, Olavarría, Zapala and Catamarca, Loma Negra plays a critical role in infrastructure, residential and industrial projects throughout Argentina.

Founded in 1926 by industrialist Alfredo Fortabat, Loma Negra has grown from a single cement plant in San Juan Province into a diversified construction-materials group. Over the decades, the company expanded its footprint through strategic acquisitions, including the Calera San Martín lime business and various aggregates operations. In 2016, Loma Negra became part of the InterCement Group, strengthening its access to global technologies, proprietary process improvements and sustainable manufacturing practices.

Today, Loma Negra’s product suite includes Portland cement, specialty cements, ready-mix concrete and pre-blended mortars, serving an array of end markets such as highways, bridges, residential complexes and industrial facilities. The company also produces quick-lime and hydrated lime under the Calera San Martín brand for steelmaking, environmental and agricultural applications. While its core market is domestic, Loma Negra maintains export channels to neighboring countries, including Uruguay, Paraguay and Chile, further diversifying its customer base and optimizing plant utilization.

Loma Negra is led by Chief Executive Officer José Manuel Capdevila, who heads a management team focused on operational excellence, cost efficiency and sustainability. Under his leadership, the company has implemented energy-saving initiatives, waste-heat recovery systems and alternative-fuel programs to reduce its environmental footprint. Through ongoing investments in plant modernization and digitalization, Loma Negra aims to bolster its competitive position, support Argentina’s construction industry and drive long-term value for its stakeholders.

Loma Negra Compania Industrial Argentina Q4 2024 Earnings Call Transcript

Key Takeaways

• Despite a 14% year-over-year volume decline in Q4, Loma Negra expanded its EBITDA margin by over 600 basis points to 29% and maintained flat per-ton EBITDA at $39.
• Full-year adjusted EBITDA reached $198 million with a 25.9% margin (+211 bps), while net debt fell by $20 million in Q4 to $157 million, pushing net debt/EBITDA below 1x.
• The company cut its scope 1 and 2 GHG intensity by 3% to 506.96 kg CO₂ per ton and reduced water extraction by 31%, advancing its 2030 sustainability commitments.
• Industry volumes improved from a 31% H1 decline to 14% in Q4, and January 2025 dispatches rose 9%, underpinning a forecast of double-digit volume growth in 2025.
• After completing a $22 million project for 25 kg bag capacity, 2025 CapEx will be limited to maintenance ($55–60 million), supporting strong free cash flow generation.

Presentation

[Operator]

Good morning, and welcome to the Loma Negra Fourth Quarter twenty twenty four Conference Call and Webcast. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Also, Mr. Sergio Feifman will be responding in Spanish immediately following an English translation.

[Operator]

Please note, this event is being recorded. I would now like to turn the conference over to Mr. Diego Heron, Head of IR. Please, Diego, go ahead.

[Diego Jalón, IR Manager at Loma Negra]

Thank you. Good morning, and welcome to Lumanera's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Feifman, our CEO and Vice President of the Board of Directors and our CFO, Marco Jardin. Both of them will be available for the Q and A session.

[Diego Jalón, IR Manager at Loma Negra]

Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward looking statements and I refer you to the Forward Looking Statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances. This conference call will also include discussion on non GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release.

[Diego Jalón, IR Manager at Loma Negra]

Now, I would like to turn the call over to Sergio.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Thank you, Diego. Hello everyone and thank you for showing us this morning. I would like to start my presentation by discussing the highlights of the quarter. Then, Marco will take you for our market review and financial result. Following that, I will share some final remarks before opening the call to your questions.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Starting with slide two. We are pleased to present Loma Negra fourth and final quarter of the year. 2024 was a year of challenges that stressed our capitalilty and once again we demonstrated what we can achieve, I mean a downturn in the construction industry that reduced demand for our products. We navigated multiple obstacles. While facing moments of uncertainty, we reaffirming our resilience, adaptability and commitment to continued improvement, further solidifying our leadership in Argentina cement market.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

In terms of our fourth quarter performance, we take great pride in delivering strong results, despite the difficult environments. One of the key highlights of the quarter was the significant expansion of our EBITDA margin by over 600 basis points even with lower volumes. We have mentioned this challenging year as an opportunity to enhance efficiency, staying true to the one of our core principles constantly pushing over the same to improve. Bulk volumes continued their gradual recovery narrowing the year over year gap. The decline in dispatch for the quarter impacted our top line.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Despite this, we delivered an assessment EBITDA of $50,000,000 up 2.4% in peso tons. Our EBITDA margin reaching 29%, a substantially improvement from 22.8% in the same quarter of 2023. On a per ton basis, EBITDA was $39 remaining nearly flat year over year but increasing 10 sequentially. For the full year 2024, we achieved an EBITDA of $198,000,000 with a margin of 25.9%, improving by two eleven basis points. On the financial side, both this quarter and throughout the year, we strengthened our balance sheet.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

During the quarter, net debt declined by an additional $20,000,000 reaching $157,000,000 and lowering our net debt ratio to below 1x. Please turn to slide three for a review of our ESG highlights for the year. We take great satisfaction in releasing a new addition of the Loma Negra sustainability report, aiming to share our journey and dedication to sustainable development with all stakeholders. This report is aligned with our 2,030 goals and the work of the Entrel company guides by senior management commitment to sustainable development. It has been prepared based on the non financial information disclosure standard of the Global Reporting Initiative and the Sustainability Accounting Standard Boards. For the second years, we have audited 13 share I indicators by an external consulting firm.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Environmental sustainability is one of the main pillars of which our growth and volume creation are basis. That is why we work every day on the continuous improvement of our operation by optimizing the use of energy and water, preserving oil quality and biodiversity and implementing actions aimed at reducing our carbon footprint. Regarding this matter, our total greenhouse gas emission intensity scope one and two stood at 506.96 kilograms of CO2 per ton of cementitious materials, reflecting a 3% year over year decrease. On emission per ton of the cement equivalent, the reduction was 1.16%. This translates to an absolute emission reducing of 907,000 tons of CO2 equivalent compared to 2023.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Aligned with our 02/1930 sustainability commitments, we also achieved a 31% reduction in water extraction, while our solid waste valorisation rate reached 84%. On the social side, we are convinced that through a strategic partnership we can transform reality to ensure a more inclusive future. We maintain the implementation of our program in different territories of the country, benefiting almost 90,000 people directly and 57,000 people indirectly. Guide Power principle: We are all Loma. We held the second diversity and inclusion week.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

This year 15 employees from different Loma Negra plants share their experience of inclusion and diversity in the company. Regarding the governance pact, we have a new code of ethical and conduct where we incorporate a chapter of commitment to sustainability with clear goal to reduce our environmental impact and promote sustainable development in our whole operation. We continue trying our people on the company integrity program where we cover 100% of our employees reinforcing the commitment to ethical and transparency. We also held the compliance week for the first time which was an opportunity to reforest and message and share content related to ethical and integrity using, antitrust ethical line, ethical behavior and cybersecurity. We are committed to the principle guiding our actions inclusive of our purpose of transforming people's life by promoting sustainability growth.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

This report reflects such parts. I invite you to read it to know the most outstanding results of our company. I will now hand off the call to Marco Gradin who will walk you through our market review and financial results. Please, Marcos, go ahead.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

Thank you, Sergio. Good morning, everyone. Please turn to slide five. When analyzing the evolution of monthly sales across the industry, we can clearly see an improvement between the first and second half of twenty twenty four as represented by the red line. While the first half of the year saw a 31% decline, the second half narrowed the year on year gap to minus 17%.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

Furthermore, the fourth quarter continued this trend with a 14% year over year drop, closing the year with December volumes just 5% below of the same month in 2023. Similarly, January 2025 saw nearly 9% growth in dispatches, marking the first year over year increase since March 2023 and breaking a streak of over a year of negative results as shown in the bottom right chart. Although rainy weather is expected to impact February, we anticipate this positive trend to continue. Bulk cement dispatches continue to show greater resilience, declining less than the industry average, while bulk cement remained the most affected mode of dispatch. As large private construction projects and public works represents its primary market, bulk cement ended the year with low activity levels, but is expected to regain momentum in 2025.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

While 2024 was a challenging year for the industry with volumes declining 24%, we believe the most difficult period is now behind us. The Central Bank's Markets' Expectation Report also suggests an improved economic outlook, projecting positive growth in the fourth quarter of twenty twenty four and a 4.6% expansion in 2025. This forecast combined with the expected impact of credit availability and renew interest in large scale projects will likely drive a recovery in cemented budgets throughout 2025. The consolidation of economic policies is expected to support the industry's reactivation, and lay the groundwork for a long new cycle of sustainable growth. Turning to Slide six for a review of our top line performance by segment.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

The fourth quarter top line declined 19.5%, primarily due to a weaker performance in the segment segment, followed by declines across the other business segments. The cement, masonry cement online segment saw a 19.9% drop with volume contracting 14.1% year over year, coupled with softer pricing. Bulk cement continues to show greater resilience declining 9% year over year, outperforming the industry average, while bulk cement remained the most affected category. Concrete revenues fell 26.9% in the quarter with volumes down 14.4% and prices impacted by a more competitive market in the segment. On the positive side, the decline in sales volume was repronounced than in bulk cement sales for the ready mix concrete sector, supported by increased infrastructure activity and renewable energy projects in Buenos Aires Province, which helps support concrete operations.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

Similarly, the aggregate segment recorded a 34.2% revenue decline with sales volume down just 3.1%, supported by increased road construction activity in Buenos Aires Province. However, persistently low overall activity levels weighed on price dynamics. This effect was further amplified by a shift in the sales mix with a higher proportion of final aggregates, which have a lower average price. Railroad revenues experienced a moderate decline of 3.2% in the quarter. Hydro transported volumes of up 3.1% helped offset softer pricing.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

The increase in grain transport helped compensate for the decline in Construction Materials, but negatively impacted the average price as grain generate lower revenues per kilometer transported. Finally, for the fiscal year 2024, consolidated revenues declined 23.9% to ARS691 million, down from ARS119 billion in 2023 with seven volumes contracting 23.7%. Moving on to slide eight. Consolidated gross profit remained stable, aging up 0.1%, while gross margin expanded by six forty basis points year over year, reaching 32.6% despite lower volumes. In the cement segment, cost management once again play a key role in mitigating the impact of a weaker top line in fourth quarter, supported by lower depreciation expenses.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

The fourth quarter marks the end of the winter seasons typically associated with higher energy costs. Regarding energy inputs, the company began leveraging new thermal energy contracts that benefit from year over year reduction in tariffs, including short term agreements linked to oil production. On the electricity side, despite higher cost from a shift to more expensive generating sources With less hydro and nuclear and more thermal, the company secured short term contracts with Renewal Energy's producer, allowing it to partially offset the impacts by utilizing some plus generation. Margins also expanded in the railroad segment, supported by cost controls and higher volumes, though they remain in negative territory. On the other hand, concrete and aggregates saw margin contractions more affected by market conditions.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

Finally, SG and A expenses fell 3.9%, primarily due to lower turnover tax and freight costs driven by lower volumes as well as reduced insurance and service expenses. As a percentage of sales, SG and A stood at 12%, up 195 basis points from 10%, mainly due to the decline in revenue. For fiscal year '20 '20 '4, gross profit declined 18.9%, though gross margin expanded 166 basis points to 26.7%. Please turn to Slide nine. Our consolidated adjusted EBITDA for the quarter stood at US50 million dollars while in pesos it reached US50.6 billion dollars up 2.4.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

This increase was primarily driven by a stronger performance in the segment segment, which boosted the consolidated EBITDA margin to 29%, expanding six twenty three basis points year over year. The segment's adjusted EBITDA margin surged to 33.7%, up eight fifteen basis points, driven by tight cost management and improved energy inputs. Meanwhile, the Concrete segment saw its adjusted EBITDA margin contracted by seven sixty basis points, turning negative at minus 6.1% compared to 1.5% in the fourth quarter twenty twenty three as cost control efforts were not enough to offset revenues declines. In the aggregate segment, the adjusted EBITDA margin dropped to minus 8.9%, down from 14.2% in the fourth quarter of twenty twenty three. While higher volumes helped narrow the year over year gap, a highly competitive market and an unfavorable product mix weight on profitability.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

The railroad segment saw an adjusted EBITDA margin improvement of three seventy two basis points, reaching minus 0.4% compared to minus 4.2% in fourth quarter twenty twenty three. More rate growth in transported volumes primarily from increased grade shipments supported performance. However, the higher share of grains negatively impacted the average price as they generate lower revenue per kilometer. Effective cost control has mitigate this effect, improving overall performance. For fiscal year twenty twenty four, adjusted EBITDA totaled US198 million dollars or US181 billion dollars down 17%, but we have a margin expansion of two eleven basis points to 25.9%. Nine %.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

Moving on to the bottom line on Slide 11, this quarter net profit attributable to owners of the company totaled ARS22.4 billion compared to a net loss of ARS43 billion in the fourth quarter of last year. The stronger operational performance despite lower volumes were further supported by an improved financial result. On the financial side, the main reason of the evaluation was the impact of the devaluation in December 2023 that affected the pace of comparison. We posted a net financial gain of ARS 900,000,000.0 for the quarter compared to a financial cost of ARS81.3 billion in the same period last year, primarily due to the lower impact of exchange rate differences. Additionally, lower net financial expenses driven by decline in interest rates and a reduced debt position further strengthened financial recovery.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

However, these impacts effects were partially offset by a lower gain on net monetary position reflecting a weaker impact of inflation adjustments. For the full year 2024, net income attributable to the owner reached ARS153.8 billion, up from ARS22.4 billion in fiscal year twenty twenty three. Moving on to the balance sheet, as you can see on slide 12, we ended the quarter with a net debt of ARS162 billion, reducing our net debt to EBITDA ratio to 0.89 times, down from 1.4 times at the end of twenty twenty three. Cash flow from operating activities reached ARS 47,800,000,000.0 compared to ARS 57,000,000,000 in fourth quarter twenty twenty three, primarily due to a less favorable impact from working capital. We invested ARS 21,200,000,000.0 in capital expenditure this quarter with approximately 40% allocated to the 25 kilogram bags projects and the remaining primarily toward maintenance CapEx.

[Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra]

During the quarter, the company used ARS31.2 billion in financing activity mainly for the repayment of borrowings and interest payments. In dollar terms, net debt stood at $157,000,000 with valuation of almost a year, reflecting a $20,000,000 sequential reduction. Dollar denominated debt accounts for 91% of our total debt with the remainder in pesos. The company's debt maturity profile remains well balanced with no bond maturities until fourth quarter of twenty twenty five. Now for our final remarks, I'll hand the call back to Sergio. Thank you.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Thank you, Marcos. Now to finalize the presentation, I please ask you to time to slide 14. We are very proud of the results achieved in 2024. As we mentioned before, this was a particularly challenging year for the construction sector as it is in key economic variables impacted by the cement consumption. This effect was halted in intensity by the suspension of many public works as awaiting the establishment of the new framework.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

We view 2024 as a transition year for the industry on that it's a more established economic environment now has a solid foundation for the future growth. Challenging difficulties for us mean opportunity. Opportunity to rethink our approach, drive improvements, next to be the most efficiency company we can be. Always guided by our strong corporate principles. Looking ahead, 2025 is poised for the growth.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

This year is set to deliver two digit growth. Its forecast for the Argentine economic materials, its passion supported by renewed rules for credits and the emission of risky projects could further boost cement consumption. Cement consumption per capita hit historical lows in 2024, while the ten years average remaining among the lower compared to similar economies. This presents significant room for the globe, while a substantial housing and infrastructure gap to bridge. In the same year, we have made significant investments in capacity, positioning us to play a major role in Argentine development.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

We are ready. I would like to thank all our employees for their commitment and effort throughout the year. I also want to express my gratitude to our stakeholders. Staying close and supporting each other, especially in challenging times, it was defined as. This is end of our prepared remarks.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

We are now ready to take questions. Operator, please open the call for questions.

[Operator]

Thank you. We will now conduct a question and answer session. The first question is from Alexandra Obregon with Morgan Stanley. Please go ahead.

[Alejandra Obregon, Analyst at Morgan Stanley]

Hi, good morning. Loma Negra team, thank you for taking my question. I would like to talk about pricing and how you're thinking about it for 2025. So on one side, we have demand troughing and starting to look a little bit better. But also as we look at inflation, it looks like it appears to be slowing down.

[Alejandra Obregon, Analyst at Morgan Stanley]

So how should you think or how should we think of strategies for pricing into 2025? And if you can also talk about competitive dynamics, do you think that is still supportive of pricing action into 2025? Thank you.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Good morning, Alejandra. Thank you for your question.

[Moderator]

In 2025, we believe that the pricing dynamic is going to be similar to the one we saw in the last couple of years. Maybe with deceleration of inflation, we're going to have more space between price increments. Similar to the years that we have in the past with low inflation. But we are foreseeing a scenario where the prices go along with inflation. And always supposing that inflation is going to be above the devaluation of the peso.

[Moderator]

Possibly, if we have an event of a major devaluation, then the price adjustment would be above the inflation.

[Alejandra Obregon, Analyst at Morgan Stanley]

Got you. That was very clear. Thank you very much.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

You're welcome.

[Operator]

The next question is from Marcelo Furlan with Itau BBA. Please go ahead.

[Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA]

Hi, everyone. Good morning. Thanks for taking my question here. My question is just a follow-up also for 2025, if you guys could please give a little bit more color related to volumes. I mean, volumes in the industry declined by 24% to 25% in last year.

[Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA]

So I'd like to hear from you guys what we expect from volume this year. So this is my follow-up. And my question here is related to capital allocation. So once maybe 2025 would be a better year in comparison to 2024 in terms of volumes, prices, margins and so on. If you guys see room for dividend distributions in 2025 as we saw in 2023. So this is my question as well. Thank you.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Marcelo. Thank you for the question.

[Moderator]

For 2025, we're expecting an increase of two digits year on year. Basically, if we maintain the volumes that we had in the last part of 2024, that will give us this two digit expansion. Additionally, we are seeing some private projects that may start in the last couple of months. Could be starting in the next few months. Can you repeat the second part of the question because we didn't get it right?

[Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA]

Yes, sure. The second part of the question is related to dividends for 2025. If we could expect dividends for this year, this is all the question.

[Moderator]

It's about dividends, sorry, we didn't get it.

[Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA]

Yes, it is about dividends, yes.

[Moderator]

Okay. If you look years back and we still are analyzing the best way to allocate our capital. In 2022 and 2023, we paid dividends because we consider it was the best way to return value to shareholders. During 2024, with the drop in volumes, especially in the first semester and the uncertainty behind that, the Board decided not to move forward on paying dividends. And additionally, there was this process with our controlling shareholders, so we decided not to move forward in 2024.

[Moderator]

With a more clear scenario in terms of volume for 2025, we are analyzing with the world the best ways to go in terms of capital allocation for 2025.

[Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA]

Okay. Thank you so much, guys.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

You're welcome.

[Operator]

The next question is from Daniel Rojas with Bank of America. Please go ahead.

[Analyst]

Buenos dias. My question is regarding your cost structure for 2025. I was just curious did you see any points of pressure and if you could compare it to 2024, do you see any sources of opportunity to increase margins further or where should we be concerned for the next year? Thank you.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

Good morning, Daniel. Thank you for the question.

[Moderator]

Yes, we are seeing we saw it by the end of twenty twenty four and continues in this year. We have seen some improvements in terms of energy inputs. And we are working very hard in terms of efficiency and cost management. And we do believe that the margins that we show in the fourth quarter are sustainable. Furthermore, if we start seeing some improvements in volumes, we are going to see some improvements in margins as well. We have to consider that we are working almost at 50 of our capacity and with no major CapEx, we can absorb future growth.

[Analyst]

And along those lines, for 2025, could you guide us on CapEx? And since you are working at 50% capacity and you can ramp up quickly, do you have any large maintenance or should we expect a nice bump in cash flow as a consequence? Thank you.

[Moderator]

Basically for this year, we have only maintenance CapEx. We are also finalizing the projects of the ships to 25 kilogrammes bags that's going to start we are going to start dispatching them in July.

[Moderator]

Once finalized this project, we are not expecting any further disbursement in CapEx, just the maintenance CapEx.

[Analyst]

Could you give us a ballpark number, an estimate of how much in maintenance for 2025, just to give us an idea?

[Moderator]

Between all the business, between $55,000,000 60 million dollars approximately.

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

You're welcome.

[Operator]

The next question is from Esteban Arreta with Balance. Please go ahead. Esteban, your line is open on our end, perhaps it's muted on yours.

[Esteban Arrieta, Equity Analyst at Balanz Capital]

Hi, good morning. Sorry, I was mute. My question is also on CapEx. What is the remaining CapEx to complete the 25 kilo impact project? Thanks.

[Moderator]

The remaining CapEx for the 35 kilo rands spec project is approximately $22,000,000

[Sergio Faifman, Vice-President of Board & CEO at Loma Negra]

You're welcome.

[Operator]

And this concludes our question and answer session. I would like to turn the conference back over to Diego Jerlon for any closing remarks.

[Moderator]

Thank you very much for joining us this morning. We really appreciate your interest in our company, and we expect to meet you again in our next call. Thank you very much.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Analysts

• Diego Jalón, IR Manager at Loma Negra
• Sergio Faifman, Vice-President of Board & CEO at Loma Negra
• Marcos Isabelino Gradin, Chief Financial Officer at Loma Negra
• Alejandra Obregon, Analyst at Morgan Stanley
• Moderator
• Marcelo Furlan Palhares, Equity Research Analyst at Itau BBA
• Analyst
• Esteban Arrieta, Equity Analyst at Balanz Capital