Good morning everyone who's sharing with us. I see that we have people connected online. Today I'm going to be your host. My boss, Nicolás, is in Japan at the moment, so he won't be able to be here. We haven't met for about two months by now. Say that we have been working on what we have been a little bit different these last two months. We have certain news from the last two months. We're going to be inspecting the financial markets. The losses in the last year were reduced, and the current losses are related and are explained by the mining business and in the industrial segment. Since the industrial segment is quite better than how it was in past periods.
We have been suffering with the experience of phase V of Los Colorados. That's the reason behind the current results. Now, CMP reported losses of $5.9 million. That compares with $5.6 million positive in last year. This was impacted by the contingency at Los Colorados and the lower market prices in the last quarter. In the industry segment, we saw a loss of $19.8 million. That was compared with the $49.5 million in the previous year. From those, about nearly 20, 10 are related with the expenses by Huachipato. This is significantly less than the last quarter. Huachipato started dividing its expenditure. Huachipato has this fixed expenses that.
It's going to require some time to reach ATM. We are hoping to see in 2027 a more positive perspective. What are we hoping to see on the market? It's incredible to see how the iron prices has established. We thought it was going to be reduced after Liberation Day, but iron has been quite resilient. It is quite below the price of the same year, the same volume the last year, but it makes sense. Regarding macro, it has stabilized. Remember that it isn't really relevant because we're building through a Syncback. This was stabilized and after 3 years of decline, it has established and has remained in below historical levels. Good news here.
Despite this, Syncback refocused its efforts and refocused its business, and it's having better margins and better results on the bottom line compared to last year. The other positive point is that we have been seeing an increased interest in mining. We might be seeing problems regarding choosing the projects that we want to do. Regarding the financial results, we are going to do a very broad overview and a bit consolidated bit decreased from CLP 112.8 million to CLP 107.9 million, mainly explained due to mining segment that had lower shipments. It was a reduction of production and shipments. We had a delay on a couple of ships, and we also faced lower prices. On the industrial segment, the EBITDA has improved.
I wanted to highlight this due to the increased efforts and performance by Cintac, which is an increase on $3.2 million and from Huachipato as well. This is partially offset by TASA. As I will mention later, Argentina isn't having the recovery that we saw forecasted, but the margins have been tighter. They have been removing tariffs. The steel cost was reduced, and the margins are then lower than expected. Considering that we haven't seen the volumes we expected so far, we have lower margins. What are we hoping to do on the way forward? Well, I already mentioned this. This can't change. We need to solve the contingency at Los Colorados, and we are going to detail this further down the presentation.
Secondly, we need to keep working on building our 2030 execution project. This has to do with enabling growth, and we need to continue on in Los Colorados, obtaining the environmental permits for Aclara. We're going to discuss this later. We have been working on a good step, and we closed the contracts for our CapEx by April 2022, where we signed these contracts. We have been discussing the developing potential. We have been working also on Huachipato 2.0, working with all four offers and working on logistics and docking processes. Okay. Let's go to the highlights. I'm going to propose you, just like in earlier sessions, earlier versions, we hope that you can take note of your questions, and we can solve them at the end of the presentation.
The highlights. What can we highlight here from these two months? Well, as I mentioned before, we closed the buy of 49% of our stock from Mitsubishi, so we had 100% participation of the company. This was done through a credit operation with Bank Itaú. This is a sustainable project, and it received the first Blue Bond certification in Chile. This is a first for a Chilean company and for a bank in Chile to manage that. This has been provided to organizations that are looking to protect the oceans and to have sustainable use of water. This is very well in line with our strategy of being a leader in the handling waters and keeping with the energy transition.
We also have been working on a deeper level here. We want to reflect that CAP is officially in a new stage. We have been breaking all the patterns where the company, Compañía de Aceros del Pacífico, which is a very antique company. Now, Grupo CAP is a different company that has a lot of different synergies that point towards different operations and strategies. This reveals, I would say, this change of direction that we have been seeing so far. This is a sign. Third, we have been working with Huachipato. We made significant agreements here on limestone and coal. We also have been working on optimizing the use of ports and of docks and mining operations. On where that would change the mining operation in order to increase its short-term income.
This is on a small operation that doesn't work 24/7, and it doesn't need such a high scale, so we improved the benefits of income. It's hopeful that we see a higher level of demand here. Okay. What happened in the market? I think I already mentioned a bit of this. Well, you can see here the Fe price, the Fe cost. You can see here quarter-over-quarter. What we have been seeing so far is that the Fe 65% fell 14%. Slightly more than the Fe 62%, which is 16%. This is over 103. Even though Liberation Day was April 1, this was after. After this, the value is still somewhat higher. A higher 100. It's sustained so far.
We hope to see it holding there, considering that China might provide stimuli to the economy because this has increased slightly less than expected. We can expect to see changes here in the future. We have already shared this so far. This hasn't changed in the first quarter. We have been seeing here the investment in construction and mining. We should see an increase of, like, at least 15%. Mining also is going to have an increase. We have been seeing this so far on mining. In construction, this is a more similar increase. What can we highlight here? A slight improvement of limestone in the first quarter. Promet is having the record activity here during the first quarter, and this has been pushed by mining and the demand for modular solutions.
Hopefully, we'll see everything come forth, and this is going to have. We're going to see this comparable improvement as with Cintac. In Argentina, things haven't changed as we expected from last year, where we see a relevant comparison with the construction and steel. This is an improvement compared to last year, considering rates and fees. This is relevant, but this is low compared with all the normal years. The margins have been tighter, and this has to do with a lot of different elements, but the steel prices have been reduced. This and the market expects to see a reduction in costs on different products, but we don't work with certain products from steel. Let's go to the point here for financial results. What happened here? What are the results of the financial reports? What are those?
The EBITDA fell 8%, quarter-over-quarter, but the income has improved from -22% to -13%. We hope to see these improvements in the future. What are the most important explanations here? First is that the smaller EBITDA has to do with the mining sector that fell 7.9% year-over-year. This is explained due to a decrease in prices quarter-over-quarter, and also by smaller shipments that has to do with the contingency in Los Colorados. To be more precise, there is less production from Los Colorados and due to less shipments. We had to stop to tackle that. Well, we have been facing the impact in Los Colorados. We hope to see that solved in the future. This is a temporary offset.
We have been seeing a very bad market, bear market, but this has improved here. We have -154 year-over-year, -54% last year, which was negative, but we have 7.7 here. In the industrial segment, we see a higher EBITDA compared to last year, or plus CLP 3.3 million year-over-year. This is mainly due to a higher EBITDA in Cintac, which as I mentioned before, there's a change in trends and plus CLP 3.1 million in modular segments. Huachipato, which is no longer losing money in the steel segment. As I mentioned, we have a set of fixed costs related with the hectares that we need to cover with new businesses, and that's part of the work we have been doing so far.
Regarding Tasa, it's facing some difficulties, but we have a good forecast here. We have been developing with Tasa, the sales for large duct projects. We have the certifications to work on that, so we hope to see a better future there. In the bottom line, we have an improvement because we didn't have steel production this year, and this makes an important difference. Let's see. Let's delve deeper into the results. Let's see the income if you want, if you wish. As we mentioned, mining had lower results. In the industry segment, we have an improvement at 10% of the income, basically. We have an increase of Cintac, the sales of Cintac and Tasa. Tasa improved compared to last year, but we have been seeing the results compared to the, an earlier year. We have lower average prices.
Oh, sorry. Here we can see the details that I mentioned so far. Total revenue, CLP 432 million, which has increased 8% compared to last year. In mining, we see a slight increase that has to do with the impact in spot market and mine costs. Okay. I'm going to see this slide, and then we're going to go later. We have the consolidated EBITDA. The most significant explanation here is, it has to do with mining, where we see a reduction from 101 to 93, and this has to do with higher expenditures. We have 56.6 tons compared with 47.8 due to Guarello. We saw the dedication for price, and we believe that the production is going to be around 16 tons.
This is going to be maintained and sustained. The cash cost is going. In cash flow, we should see the $52-$57 per ton. We are going to see a higher level here, and it's going to see a stabilization in the middle of the year. In the industrial segment, we have good news. This is higher, and it has to do with Cintac. We have been working on added value margins. We have been seeing changing initiatives, seeing the cost and sales, and we have been seeing here an improvement. In Cintac, we have been pushing for an increase of the line of flotation, which is going to be a significant change. In infrastructure, we see a slight difference that we have been seeing on the next semester.
Accumulated losses of $30 million in all these countries the same term last year. One hits us. Here we have on the mining side, because we have $12 million less import and export, but also, take a look and see what's the battle. Usually speaking, we have $49 million, now we have -$20 million. We're gonna be increasing that, this $20 million and a half interest between companies. These are cleaner, less, and this is gonna be united. The logistics business is going up. It's gonna be covering all these areas and those, all these things. How are we doing finally? The cash position, we are quite similar to what we were in December, and this does not reflect the 30 of March.
We did not pay the 30 of March the proceeds of the 49. This happens. In April, that helps. We are in a very strong position. We continue in a cash-strong position. I would say that. We're gonna be careful the rest of the day planning and being defensive, really taking care of that. The other thing that still happened, someone said something about a couple of months ago. We continue working on this debt. We have volatility, and we're going to continue with that. We are convinced that we have to play a bit more, being more defensive, and we have to move that. We've been moving for a long time the curve of the. It's increasing the duration.
If you see here on the left that increase of $431, and these are the credits that CMP uses, and these are credits that are more cheaper and like in a structured debt. It's like a short term. This is gonna be cheaper. It's a structural cost that is cheaper than the bond because that's the reason why we use these measures. This is to play defensive from the structural cost of view, of course. This is the increase of the debt of $1,740, and this is approximately, especially done by the financing that we have for CAP. Also due to an increase of $65 million in prices that CMP had.
CMP, it's part of an increase of the debt, and during the year, the debt is going to increase in the second half, that is different. How are we doing is part of the debt of the agreement. If that increased a bit more, and it's gonna increase a bit different, because at the end of the year, most probably it should be returning. Right. Our covenant here, more than covenant, it's what we all try to take care of that is not go over four times. We like the number two, but in this month that we have here, it's always gonna be under that. It's part of what, well, you wanna make it. This is like a. It's part of the mining. The net income, right?
Is that part of the shipments and also the production. This is explained by the Los Colorados and the price. This has to fall. This is something related with the market and these cases, the increase and the cash cost increases with two things. There's another level of dilution, and this is the great really important comparison. It's like 100 tons of production really, and it is part of the budget. This is related because we had to replace some ideas. The mill number two that seems to be ready at the end of the year and the ramp-up of that had the bumps and remained operationally in March. This is part of the production and for the 24% probably, and it's larger than it seems.
These two things, they were not part of the cash flow. How was that? The mix here, I would add two things. Here you can see the fall down of production and the deliveries for the reasons I already explained. There's another relevant thing. Pay attention that increased the pellets percentage that we are selling. We always said that the additional cost of turning that cost into pellets is not giving anything because we said, "Okay, that was paid." That was paid and then we send more pellet, but I don't know if that is going to continue the rest of the year. But if the business is profitable, that is gone, we can make it. But how much was that? I mean, if not, the business doesn't continue, we're going to continue with the previous percentage. Okay? Okay then.
This is the one that is always of interest. What happens with the cash costs? First thing on the graph here, you can see that the quarter is compared with the first quarter of this year, and things increase, and a great part of this is related to the dilution of the fixed costs. We have also had a cost of energy and due to the contracts that we have, but in general, this is a fixed cost. If we compare the last quarter versus this one here, we are arriving to that level of execution in spite of the lower level of dilution that we have.
These are initiatives that have cost reduction, less movement, and optimization of certain activities, and this is something that we are living, experiencing, and trying to control the costs. Okay, let us move on. Are you all taking pictures? This is available in case you want it, so don't worry. Industrial business. Here you see a bit what happens. EBITDA increases and -4 and +4, and the losses that they fall down. That is very good. I don't like about the losses. I want this to be positive and it's gonna take some time. In Cintac, the volumes increased 7%, and in the rates it's 74%. It seems that last year was a disaster.
In spite of that 74%, the levels of volumes, they are like under another level. The market has to be regulated and the margins improved and the expenses of administration and costs decreased and went up to $7 million. Quite the relevant thing for Cintac, right? When they're in a turnaround, what happens? For the lower prices, we should take a look at this. They fell down in a 47%. The price was very expensive last year in the first quarter. They came back with the first half 2024 with high prices. The first quarter last year had special margins that were quite high.
We're looking at some margins that probably they're more realistic than what we expect, maybe half a percent improvement and maybe they're decreasing some areas. Here, we have the Brazilian competition that really has the low-cost level. Huachipato, finally. Huachipato is starting the reconversion, but showed some results that are positive. Not net results, but this is good news. This is something that we are pushing and pushing today. We're pushing everything, but this is the one that financially is quite all right. Infrastructure. Infrastructure of the business that we love and, like for example, this is a business that started being a support for the mining business, and we have realized that there's a good opportunity. We have some strategic assets and we can take some value out of there.
It's always online of helping that concentration and that's part of a sustainable world, a more sustainable world. This is one of the reasons that we are getting in Aguas CAP, where we want to boost the power to third parties. We have some strategies that we can leverage and put as we name it. We have some costs that were environmental during the first term on the one-time, and this is a matter of in which part of the year am I going to execute them. The Cintac that improved the one-time of P&L but that shouldn't be repeated after all. That's about financial results. I wanna share now some additional things with you that are gonna help you to understand where are we going.
Let's move to the strategy 2030 and the progress that we have had. This is just a reminder of something that you've seen. It's always important to remember as a company, where are we going? Where are we heading? To remember that ourselves and our operational companies and our ecosystems of suppliers and, customers. CMP pushing towards the iron ore of high quality, and it's essential for the transition of steel that is gonna take a look at our transition and the margins of the iron of high quality that are going to increase. Over what we have today and the NMO for low quality. This happens if this goes in a much more clearer way as HBI. This clarifies, we have seen this in the rare earths of everything that's going.
I'm gonna give you a date, some piece of data. There are two markets, there's the Chinese one and the rest of the world. The problem is that in China. The price of the dysprosium, that is one of the rare earths that he wants, changing Europe in spite of all these things. This is very, very interesting. We're looking at it right now. Cintac is focused and that are environmentally efficient of construction, that are motorized. This is the reason why it is a permit. These are exceptional solutions, and I told you this one time. They sometimes need to work on the snow conditions, extreme conditions, and we cannot have problems that needs an exceptional thing. This is part of the hotel services.
It is distinguished from those things, and it's able to adapt that to the mining sector. This is really important. Everything that is infrastructure supports that. They're also good news that give us flow stability. This is the reason why we like it so much. Other news. What's going on with Los Colorados? There it is. What is happening with Los Colorados? Los Colorados, last time I told you that we have had this board of experts that are geologists, that are specialists of the world. Each of them is exceptional in their field. They recommended that we made a sort of studies. Studies that give us the information, focus on different disciplines, either geological, geotechnical, et cetera. That moves on. It has been moving on.
In June, during the first week of June, we are going to review again the results that we have from those surveys, how to say it? Well, those taken. The fact that we take those studies. Possible recommendation. These are finished. We have not achieved anything. I mean, we still need information, and we have to take samples. This is in order not to create false expectations. In June, we're gonna have something to tell you. Please think about the doctors, the general doctors. One asks for a blood sample, another X-ray, another decision. I don't know. Someone has to take a decision, Han. Someone has to ask for a diagnosis, and this is what the expert board is going to be about. What about that?
I mean, what are we doing? We're moving on to the phase VI. This is a phase that is up there, and it's part of the plan. It was always part of the plan, the phase VI . What we were trying to do is to accelerate that somehow and to cover the production that is for that, and to send the less body of the mine. The first term, that was a bit complicated. The amount that you take, for example, 100,000 tons less of production. What we want to avoid is that it's not that bad for. What are we doing moving forward? This is not like this. It's part of the plan. I told you the first half is going to be different and the second half we're gonna recover production.
We're gonna have the update of the Algarrobo plant. Today doesn't have the possibility to take that decision. The new permit is going to allow to increase the production, and that should be released at the end of June. The second thing, we're going to optimize the grinding in series, and this part is going to increase the flow of production. We're going to increase the production of Los Colorados. That will help you to have a higher flow and stability. We will have the purchase of minerals that is going to complement and support the potential of a deficit. We have all of these things that come forward. This is part of Algarrobo, Pleito, and we have the Tasa, and we have the CNN.
We hope that almost the quarter may lead us to the fourth part. We have to wait for the diagnosis of that area. In June, we're going to be able to tell you something about it. In here, this is Aclara is a business that we like a lot because we have the rare earths, and we believe about the potential. This is essential for the magnet, a permanent magnet. I'm not gonna be able to have any turbines of generation, any machines without any magnet. So, it's something essential. It's like something very, very important. And here what we're doing, we are getting the permit.
We see the timeline, and that's part of the reception of the observations of the different bodies where you can send your observations, and we would like that through SEA. Still, the addenda número dos is not there, so we know about the main observations. This is something important. This is a good advance, and we have some organizations that do agree. They don't have any observation. Some of them, they have less. We're receiving some other observations of SEA. We don't see any that is specifically complex or difficult. We have to continue as well with the participation, the citizen participation, and obviously, it has to continue with the indigenous consultation. We're positive.
We're positive because this is moving on quite all right, depending on the deadlines that it has to advance with. We're moving on, so I wanna transmit that good news. What other things?
What else is relevant in Aclara? The price or-
The price of shares
Stocks. China is not going to keep selling for clients or doesn't want to share with the Western world. This isn't being reflected in the prices from different companies. We can see here an increase on prices from its announcement of tariffs from the Liberation Day. What's the reason behind this? It's due to this. The price of dysprosium in Europe. This is news that was released a while ago. It jumped from $850 per kilogram to $3,000 per kilogram. This is brutal, and it has nothing to do with China's prices. If you see Bloomberg and the prices of China for dysprosium are the same.
The thing that's happening here is that we have a different market from the market of the West, and this is quite positive for us. This is a project that fits our strategy and becomes quite important in terms of Chile and the world, and we hope to see it for us as well. Okay, Huachipato. We are working on the four hubs, the four lines of action that we mentioned last time. The logistics hub. It's becoming a relevant actor and agent in the logistics and dock industry in the Southern Cone. Territorially speaking, we also are interested in being relevant in the Bio Bio region. We have the docks, and we also have the facilities, the early facilities for storage and logistics.
We also have a connection with the train lines. We have everything needed to become a relevant actor in the national scenario. In the industrial hub, we have been working to develop the industries that maximize the value of our current assets. We have steel, for example. We had an agreement with Aclara to develop REE alloys in order to work on past agreements with rare earths and steel with rare earths alloys. We have also projects that are SMS steels with SMS, which is a German specialist in this area, with that word, Sungreen Steel. We are still in an embryo stage at this point with this agreement. We are quite certain this will become quite relevant in the future.
Regarding the innovation hub, it's quite interesting because we have been working with authorities and universities in order to transform part of our facilities in Huachipato in an innovation hub. Naturally, we want to be involved in this innovation that comes in line with our strategic objectives. This is part of our strategy and innovation. Lastly, our commitment with the region of Biobío is holding on, and we have been working with 450 hectares, and we are looking to have a strategy that is coherent with the idea of developing Biobío. We have been working with worldwide world-level specialists in order to work with the government and the local authorities for these developments and with the academia as well.
This has been working quite fine up to this point. What have we managed to do in the last 2, 3 months is that we, in logistics, we secured agreements in limestone and coal and, my apologies, and copper to maximize port facilities. We have been offering integrated storage services, and we have been looking to work with the territory in the area to make more agreements. We are looking to increase the bulk cargo volumes and increase the utilization of our existing infrastructure. Regarding the industry area in Guarello, we have been transforming our model. We are looking to make Guarello more profitable with a lower volume. After Huachipato appeared and we saw a lower level of yields from Guarello, this has been working on so far.
Still on industry, we have been working on REE alloys and working on rare earth materials. Now on innovation. We have been working with entrepreneurs, public institutions and universities in order to design and to apply this self-sustaining innovation hub in what was before the Huachipato Casino. This is going to feed and generate good initiatives for our business. These are my last words. These are my words to wrap up here. We need to keep working on our projects, and we need to tackle the contingency at Los Colorados, and this can come from different paths. We can recover Los Colorados.
We can recover partially, but we have to consider that Los Colorados is in the final stage of its production. It had about 2 million tons there, but it doesn't go much further. 2 million tons are able to be recovered till 2028. This is to say, this is hitting us currently, but the potential impact in the Black Swan event is quite limited. This is going to happen, and we are going to keep striving with the same energy and strength on different projects, on different areas. That's it. Okay, let's open the floor for the questions. Please, I'm very bad with names, so I want to learn all of your names. Please state your name at the beginning and the business who you work for.
I know some of you, but I want to hear everyone's name before stating your questions. Please share the microphone in order for people online to hear you.
Can you hear me?
Yes.
Thank you, Felipe, for your presentation. I'm Rubén Álvarez from BCI Investments, and I have three questions, two related with CMP. Regarding Los Colorados, it has an effect and has a lot of this uncertainty, and this makes difficult to commit to a particular schedule. Regarding stage six, I'm concerned on the additional capacity that is required and what's the schedule for the operation of phase VI.
Regarding the Elqui Valley, I just wanted to know, because we have the mail, I am aware of that, but has that been transferred to the second quarter or not?
Regarding the financial debt from the bidder, well, you mentioned that this has increased from the first semester, and it should be reduced afterwards. That reduction at the end of the year, are we going to see it on 2025, or is it going to go up towards the end of the year? Okay, let's go per point. If phase VI was already considered, this will not change on the plan because the contingency happened during phase V .
We were working on in the phase VI already, but what's happening here is that we accelerated this process, and we started working on phase VI. There are certain restrictions where we can't really work with the mineral because you need to move and handle a lot of mineral and waste beforehand. I would say that the phase VI was always considered. The only difference here is that we want currently to reach it on a quicker manner to the more potent part of the mineral. We have. In terms of cash costs, we have to consider the grade of the ore, but this was part of the plan. We don't have any news here. We have been working on this, and we need to make it quicker. That's it.
On the second question, well, the mills have certain trips. We had this conditioning process, and we had to change certain spare parts, and we worked it, and we started working on March. We have a ramp up in order to reach its production level on design. I don't know the details, but I wouldn't find it weird to see a degree of ramp up that could help you. This is operative from March. The impact, if you see it in this next quarter, we're going to see a difference here. We aren't changing mills consistently. We needed to do this, but this was due to certain failures that we saw, and we needed to do these repairs.
Regarding the bidder, we are aiming at reaching 3 towards the end of the year, but we might be over that. We are preparing for that for the near future.
Okay. Hi, good morning. Tomás Araidan. I have a question regarding Los Colorados. Is this contingency might put at risk the post-operational process for 2033?
No, it shouldn't. No. I'll state it clearly. It's not going to affect that. The impact is going to be, I insist, on a short-term level. It's the impact it should be on 2035, 2036.
We hope to return soon by the end of the year, but we don't have yet the results of the studies, and we need to have the board of experts meeting, which are the analogue of the doctors here, and we need to meet here.
I'm Sandra from Investor Relations, but I was thinking about cash costs, which, because they were flat considering the last quarter, but with the publicly available information, you take this, the motivation and the volumes, you see a cash cost of $165 per ton. I wanted to better understand what's the difference between the calculations that you report with the publicly available information that you can use to do this calculation. Because it's a significant difference from $75 against $157.
Well, that question, I can't answer it off the cuff, but I can say that but we have a very specific formula in mining which has certain costs. This is different from the balance results. I would like to see your numbers, Sandra. Please send it to me. You can calculate this with the public information available, or is there data that is not accessible? Well, you typically need certain internal information. That's the issue. I'll gladly send it to you, so don't worry.
Good morning. I'm Constanza González from Quest Capital. I have a question related to Huachipato.
Well, Felipe mentioned that next year we should be seeing certain costs, fixed costs for next year, because this is quite relevant because we need to consider the financial costs that can have an impact on the income. We need to make a decision where we maintain our intercompany expenditures. Consolidated, it's deliverable. It looks uglier at Huachipato's level.
Yes, sure. I'm going to give you some info. Just we pay a brutal amount of money for the lease costs for the space. We usually don't need 450 hectares for a port and a logistics hub. This is quite relevant. We need to have a
To do this perspective, we need to analyze the projects that are here and that can be done together with the community. We have an example here that was consistently brought up, which is the project of Ombilbal, where we have the. We see a very connected company with society. This is an effort that you need to do as a country level. We need to fight for it, for that. Considering these fixed costs that are related to taxes and land taxes, we need to analyze the thing that the next year we're going to reach our land rate of breakeven, where we'll see in the third or fourth quarter we might see that land rate of 0, and then we should be over 0. Even considering these brutal costs on taxes that I mentioned so far.
$15 million per trimester, approximately? No, not 15. I would say I said 10 per year. Yes. Yearly. Sorry, I'm talking about the year. Yes. It is not that big. Yes. Regarding Huachipato, is there any dismantling that we might see before the end of the year operationally speaking? No. We're not going to see that. We need to see a decision in the future regarding the load and the volumes regarding modifying the depth of the docks. Because this is a good business and because we have the contracts already. Operationally speaking, no, we shouldn't see anything of the sort. Can it be considered in CapEx? Probably. In the future? Yes. The dock, for example.
This is a choice that we need to do regarding, considering whether it's profitable or not. We tend to make the decisions considering profit first, not last. Well, Sandra.
I have further questions regarding Los Colorados. I understood that on phase V we have 2 million tons to be recovered, and in phase VI, this phase necessarily will have a lower grade? Yes. You start with the stage, and you need to do where you need to remove a rock and take it to a landfill. So that's still, and then you need to start it. You have a grade benchmark where you need to analyze before working. So this takes some time. It's part of the mining plan in order to obtain the better grade and the better costs.
It's similar to a phase V, right? How much time would you think this will take? I'll need to see the documents. phase VI is quite long. I can answer what's the tonnage, but I can't remember at the moment. phase Six even has its own sub-phases. I remember the map that had there several tracks. Yes, it has different stages. Regarding phase Five, what's the deadline? What's the end time for phase V? 2026, right? Near 2027. You are on phase VI, and we would see this. We should see this compensation, right? If we don't manage to reach phase V we would see a neutral level in 2026. This will make production levels similar to those from this year.
If we see this scenario where we can't return, which is the 15.6 million tons. 15.5, 16. We usually don't measure looking at the lower figures, but we tend to benchmark towards that. Regarding third parties, should we see the costs that are increased here? We tend to discuss the idea of having third parties. The question here is how much do you buy the price and the opportunity cost for your mineral. We have been gathering stock grade which means it's less costly. It has lower costs, so this is less than ideal. You need to complement here.
Just to give a message here, the other point that we might see change in the forecast is the mix of products that we might produce. This is quite relevant here, because if you have a lower grade in mineral, you can have a better ore, and you can have Pellet Feed. You have this flexibility here where you can play with regard to the production. This is quite useful. Lastly, on the CapEx that's defined for this year is the same, right? Yes. It doesn't change. Two months have passed. I would be very ashamed of changing that.
Okay. My name is from Bice Compass. I just wanted to see the cash flows of the company regarding the changes this year.
I wanted to see the CapEx and the changes of the CapEx here.
We have been taking care of everything we can, Guillermo. We saw an increase of CMP on the first semester that we have a change of PPMs. We are taking care of everything related to inventory. We are paying a lot of attention for inventory and payable bills. Regarding the care of this capital materials, we do call this attention. We're doing all efforts available to work on that. We want to transform the highest level of EBITDA possible. We have been seeing here this estimation that we saw on total CapEx for the year. This hasn't changed so far despite the situation.
That has been related with the pre-stripping. Have we had the idea of high-grading the mine? That's high-grading, a miner that goes to the best part of the material to do development there. That's very bad because in the following years you won't be able to recover from that. This is a mixture. You need to keep working on that. We can't reduce it. It will be bad business in medium- to long-term. It shouldn't be here just on 2025, and we should be looking for 2030 and beyond. I don't know what else to answer.
We are on top of this translation from EBITDA to generation of operational cash flows and working to with cash flow staying here, not just going to CapEx.
This is part of the daily life, Chilean centers. It would be like to flourish the mind. We don't have any chats on the chat, so that's it. There's a question over here in the room.
Yes. Hello, good morning. I'm Jael Contreras from Invercap. Just to resuming the subject of Los Colorados and the decrease that we have in the mark-to-market. How do you project this adjustment concerning the volatility of the prices and the rest of the years?
Yes, in terms of budget, we do not project the mark-to-market. It's impossible. It would be like having a crystal ball and considering how we're going to move that every month and every moment, those prices. What do we expect for the prices for the rest of the year? I do not dare to say that.
We have to look at the market, and the market would expect that they fall down. We had the consensus that would be 95, that we're still not moving them. We are on the 110, and we expect as much more volatility. I don't have any answers. We need to take a look at the market and take the consensus out. We are not projecting the mark-to-market. It would be like hearing like talking about which market is going to win. It would be like saying that. There's a question here. It is related to the mark-to-market. It's going to be similar to what you say, but they're asking us if this delay it would be concerning the mark-to-market in the second quarter. It depends on the condition of closure of those contracts.
Every contract, remember that it defines the conditions of the closure, break. It would be for time. Every one is different. I don't have the detail of their sequence. There's no impact considered. We don't see any clear impact going up or down. We are, like considering that this is gonna fall down. We have maintained the prices. We don't see that this is going to increase. We shouldn't have so much impact. Let's see. We're gonna have to analyze that. There's no more questions, Felipe. We are ready to close the session then. Thank you. Thank you all very much. I would like to leave you two messages. Maybe the first one, we have a splendid future ahead us, but it has a bump. It has some bumps.
To make a cake, we have to break some eggs, and we're gonna overcome this bump. It's a limited scope. It doesn't affect the limits. It doesn't affect the perspective of being a relevant actor for the electrification. Let's hope you are all with us in this wonderful path that we're going to go through. Thank you all very much for coming.