Good morning. My name is Lidia, and I will be your conference operator today. At this time, I would like to welcome everyone to Befesa Q1 2021 Results Presentation. After the speakers' presentation, there will be a question and answer session. I would now like to turn the call over to Rafael Pérez, Director of Investor Relations and Strategy. Please, sir, go ahead. Good morning, and welcome to the Q1 2021 Results Conference Call of Befesa. I am Rafael Pérez, Head of Strategy and Investor Relations of Befesa. Today, as usual, we have with us Javier Molina, CEO of Befesa, and Wolf Lehmann, CFO of Befesa. Javier Molina will start with an executive summary of the Q1, covering the main highlights of the period. Wolf will review the full year financials in total and by business units, as well as the cash flow. Javier will close this presentation providing an update on our growth projects, as well as an outlook on 2021. Finally, we will open the line for the Q&A session. Before getting started, let me remind you that this conference call is being webcasted live. You can find the link to the webcast, as well as the Q1 2021 results presentation on our website, www.befesa.com. Now, let me turn this call over to our CEO. Javier, please. Thanks, Rafael. Good morning, and thank you for attending this conference call. The Q1 of 2021 has been the best quarter in the history of Befesa. We have achieved nearly EUR 49 million of EBITDA, which is an increase of 46% compared to last year, but also 15% better than the previous quarter. This shows that the recovery that we have started to see already in the Q3 last year is fully confirmed, and we are back to pre-COVID-19 levels. As such, we expect 2021 to be a year of a strong earning growth, as I will explain in more detail later in the presentation. The main driver for this increase has been a favorable market price environment in the Q1, with a recovery in the price of zinc and aluminum, as well as favorable zinc treatment charge for 2021. In the Q1, LME zinc price has been EUR 2,279, up 18% compared to last year. In the case of aluminum alloys, the average price during the quarter has been EUR 1,982, up 38% compared to the same period of last year. Regarding treatment charge for zinc, the benchmark treatment charge has been settled at $159 with no escalators, compared to $300 in 2020. This difference of $140 per ton is very positive for Befesa and will definitely contribute positively to the earning growth we will achieve in 2021. All these favorable price elements have resulted in a combined price effect of 41% compared to last year. During the Q1, we have also taken the opportunity of favorable price to extend our hedging book further up to January 2024 at attractive price. Today, we enjoy nearly three years of hedging going forward, which provides high visibility and predictability. Wolf Lehmann will provide more details later in the presentation. Plant utilization has been strong during the quarter, reaching pre-COVID levels of 90% in the case of steel dust, 94% in the case of salt slag, and 100% for secondary aluminum. The market environment in the main industries where we operate has seen a positive level of activity during this quarter, continuing the recovery territory already experienced in the last quarter of 2020. The production of steel in Europe in the Q1 of this year has increased 33% compared to 2020. The automotive industry in Europe has shown signals of recovery in the Q1 as well. Car registrations increased in this quarter 3% compared to last year, with an increase in March of 87%. The generation of cash during the quarter has been very strong, and this has enabled us to finish the Q1 with EUR 164 million of cash on hand, an leverage ratio of 2.8x. Our growth plans in China continue as planned on schedule and on budget. The construction of the plant in Jiangsu is now completed, and the commissioning of the plant is currently underway. We expect to start processing steel dust in the coming weeks and start with commercial operations in the second half of the year. We also continue the construction works of our second plant in Henan, which we expect to be finished after the summer of this year. Regarding the outlook for this year, we expect strong growth supported by continued favorable price environment, as well as a recovery on the underlying industries where we operate, like steel production and automotive. Based on this, we expect full year 2021 EBITDA to be between EUR 165 million and EUR 190 million, which means between 30%-50% growth year-over-year. I will provide more details on the full year guidance later in the presentation. Finally, on ESG, following the publication of our 2020 annual report in March, today we have published our 2020 ESG progress update, which provides an insight into the developments achieved in ESG during the year, and an update on the main ESG performance indicators. As a vital part of the circular economy, we are very committed to making a strong contribution towards creating a more sustainable world. Our business strategy is fully aligned with our ESG strategy, and is rooted in an increased contribution to the circular economy as we deploy our business model in new markets and geographies. Now, Wolf Lehmann will explain the financials in more detail. Wolf, please. Good morning. Please turn to page six, the Q1 2021 consolidated financial highlights. As explained by Javier Molina, Befesa delivered a new record quarterly EBITDA of EUR 48.8 million in Q1 2021, up 46% from Q1 2020. The highest so far was Q4 2018, with EUR 47.1 million. The main drivers of the year-over-year EUR 15.3 million EBITDA improvement are as follows. A positive EUR 16.6 million price effect, where we benefited from a favorable market price environment with the following components. EUR 5 million from higher zinc LME prices at EUR 2,279 per ton, up 18% year-over-year. EUR 8 million due to the reference zinc treatment charge settled favorably at $159 per ton versus $300 in 2020. Slight -EUR 1 million from lower zinc hedging prices, partially offset the zinc LME market price increase. A positive EUR 4.5 million from higher aluminium alloy FMB prices, which averaged 1,982 EUR per ton, up 38% year-over-year. A minor EUR 1.3 million volume impact negative, mainly due to the lower volumes treated in salt slags and spent pot lining as a result of the U.K. plant closure last year. Other than this, volumes were at pre-COVID-19 levels, with strong plant utilization levels at or above 90%. On cost and other, no net impact year-over-year. We are executing and tracking our operational excellence projects, project by project and month by month, those efficiencies are, like in previous years, supporting to offset any inflationary or other pressures. In summary, net- net, Befesa delivered high pre-COVID-19 plant utilization levels at above 90% overall, and benefited from a favorable market price environment in Q1 2021, which enabled us to deliver our best quarter ever at EUR 48.8 million EBITDA and 25% EBITDA margin. Aligned with EBITDA, net profit was up 69%, or up EUR 10 million year-over-year, to achieve EUR 24.8 million in Q1, equal to EUR 0.73 earnings per share. We achieved strong cash, net debt, and leverage results, which I will explain later on page nine. Turning to page seven, the Steel Dust Recycling Services results. Steel Dust Recycling Services achieved EUR 36.5 million EBITDA in Q1, up EUR 10.6 million or 41% year-over-year. The achieved EBITDA margin is 36%. The price level was positive by EUR 11 million year-over-year, being the main driver behind the positive EBITDA development, slightly offset by a minor -0.5 volume impact, including the stainless operations. Looking at selected operational metrics on the lower part of the page. Volume for electric arc furnace steel dust throughput remained approximately stable at 181,000 tons, only slightly below Q1 last year. Overall plant utilization levels are back at pre-COVID levels of around 90%. The average zinc LME market prices stood at EUR 2,279 per ton in Q1, up 18% year-over-year. Our zinc hedging prices in Q1 were slightly lower year-over-year, as well as compared to the spot average prices in Q1 2019. Combined, the resulting zinc blended price came in at EUR 2,237 per ton, up EUR 123 per ton or 6% year-over-year. The positive EBITDA effect from the higher zinc LME market prices of gross EUR 5 million was slightly offset by a -EUR 1 million due to the slightly lower hedges. Resulting net in a positive EUR 4 million effect. The zinc treatment charge reference was settled at $159 per ton for 2021. TCs are valid from 1st of January and favorably impacted our Q1 EBITDA by EUR 8 million. The net price effect in Q1 2021 was approximately 41% year-over-year. Steel Dust Recycling Services delivered EUR 36.5 million EBITDA in Q1, with a strong 36% EBITDA margin and around 90% plant utilization, clearly back at pre-COVID levels. Going now to page eight, the results of our Aluminium Salt Slags Recycling Services segment. Aluminium Salt Slags Recycling Services achieved EUR 12.3 million EBITDA in Q1, up EUR 3.7 million or 43% year-over-year. The EBITDA increase was primarily driven by the price lever, with aluminum alloy Free Metal Bulletin market prices showing a 38% year-over-year increase, which drove a positive EUR 4.5 million EBITDA effect year-over-year. This was slightly offset by a minor, -EUR 0.8 million year-over-year impact in volume. Salt slags and spent pot lining volume treated amounted to 104,000 tons in Q1, down 16% year-over-year. This development was primarily due to the plant in the U.K., which contributed during 2020 and was permanently shut down since year-end 2020. Excluding or adjusting for the U.K., overall plant utilization rate remained resilient at 94% of the latest installed annual recycling capacity of 550,000 tons, and at pre-COVID-19 levels. Secondary aluminum volume produced was 51,000 tons in Q1, up 7% year-over-year, with plants running at full capacity. Overall, Aluminium Salt Slags Recycling Services delivered a strong EUR 12 million EBITDA in Q1, with EBITDA margin for the Salt Slags and spent pot lining hazardous waste recycling core segment back at 30%. Overall plant utilization recovered to pre-COVID-19 levels at above 90%. Turning to page nine, the cash flow, net debt, and leverage results. On the EBITDA to total cash flow bridge, starting with EUR 48.8 million EBITDA on the left hand and working to the right. Working capital was slightly up by EUR 13 million year-over-year, mainly seasonally driven by higher quarter-over-quarter sales and increased receivables, including adjusting for the favorable and lower reference zinc treatment charges. Interest, as expected, up -EUR 6 million, with the first of the two biannual term loan B interest payments made in January. Taxes, EUR 3 million, also as expected, resulting in a strong operating cash flow of EUR 26.5 million, up EUR 18.1 million year-over-year, more than 3x higher versus the EUR 8.4 million at Q1 last year. Note that on a 12-month LTM basis, the operating cash flow amounts to EUR 111 million, well above the pre-COVID levels. We spent maintenance CapEx of approximately EUR 4.5 million, plus gross CapEx of approximately EUR 23.5 million, totaling EUR 28 million CapEx, of which EUR 12 million was funded through the China local loans for our two plants at Jiangsu and Henan, resulting in a total cash flow of a positive EUR 9.4 million in the Q1 of 2021. The EUR 9.4 million total cash flow improved cash on hand from EUR 154.6 million at year-end 2020 to EUR 164 million at Q1 closing. Cash on hand of EUR 164 million, together with our entirely undrawn EUR 75 million revolving credit line, provides Befesa with a strong liquidity of EUR 240 million. Net debt stood approximately stable at EUR 395 million, and with the last 12 months rolling, EUR 142 million EBITDA results in a 2.8 net leverage, reduced from 3.1 at year-end 2020. Please note on the last six-month view, net leverage stands lower and is at 2.2x leverage, similar to the moderate leverage levels back in 2018. We continue to be compliant with all debt covenants and have no applicable covenants. The capital structure remains unchanged and long-term, all set to July 2026, we cannot be charged more than 2% interest rate. Summarizing, the backbone of Befesa is strong and we continue to manage conservatively. The three main levers of this backbone are, number one, the capital structure, long-term, all set up to mid-2026, at efficient rates, as we cannot be charged more than 2% interest. Secondly, cash. We manage cash and liquidity conservatively. Even at the peak of COVID-19, we held more than EUR 100 million cash, and now more than EUR 160 million cash on hand at Q1 closing. Number three, hedging. Our strong and long-term hedge book reaching out to January 2024, so that's for the next three years. I will explain on the next page in more detail. Those three levers form the strong backbone of Befesa's financial and capital structure and serve us very well in crisis situations like the COVID-19 pandemic. This allowed and allows us to continue to go full speed ahead on our growth expansion in China and stay on budget and time. Turning to page 10 on hedging. In Q1 2021, we continued our hedging rigor and extended our zinc hedge book further up to and including January 2024. For this year, 2021, next year, 2022, and for 2023, the Q1, Q2, and Q3 of 2023, we are fully hedged at the targeted 23.1 thousand tons per quarter or 92,400 tons annually. The Q4 2023, November, December, and January 2024, we have a first tranche of 4,500 tons on the books already and are working the remaining tonnage. Overall, more than two and a half years hedges on the books. 2021 is hedged at around EUR 2,150 per ton sold forward prices, 2022 at around EUR 2,200 per ton, and 2023 at EUR 2,300 per ton. The hedging provides Befesa with improved pricing, earnings, and cash flow visibility to allow to fund our growth initiatives organically. Our hedging strategy remains unchanged. We hedge one to three years out. We target 60%-75% of our zinc equivalent volume. The majority, about 80%, is in EUR, the rest in KRW. No collateral. The risk is transferred entirely to our hedging partners. Referring to Q1, the lower left section on page 10. In Q1 2021, the average zinc LME market price was EUR 2,279 per ton. Our hedges were locked in at EUR 2,201 per ton on average, slightly below the strong spot prices in Q1. Overall, the blended zinc price in Q1 averaged at EUR 2,237 per ton, up 6% or EUR 123 per ton year-over-year. Summarizing the financial section before we turn to growth and the outlook, three points. Number one, Befesa delivered in Q1, the highest quarter in the history of the company at EUR 48.8 million EBITDA, up 46% over last year, and had a great start to the year in terms of operating cash flow, cash, and leverage. Secondly, our financial backbone is strong. We extended our hedges out to January 2024. Our capital structure is efficient and long-term, resulting in a stable and strong liquidity. Three, based on this strong backbone, we funded our expansion in China, even during this challenging pandemic, full speed. In China, we are on schedule and budget. Back to Javier. He will provide you the latest on our China expansion and our full-year guidance. Thanks, Wolf. I would like to finish the call providing some more details and thoughts on the outlook for this year. 2021 is an exciting year for Befesa and truly an important milestone in the development of the company as we are completing the construction and start operations of our first two steel dust recycling plants at the Jiangsu and Henan province in China. At Jiangsu province, we have completed the constructions, as you can see from the pictures on the presentation. We are right in the middle of the commissioning of the plant, we expect to start the ramp-up in June. We have invest around EUR 42 million in each of the two plants, and we have closed the long-term local financing of 50%. Regarding the ramp-up for Jiangsu, as you know, we reserved the entire first half of this year for commissioning, pilot batch, and commercial contract negotiation. We plant for commercial output and a positive earnings contribution in the second part of the year. We have already secured the steel dust volume from customers to do the trials, which will start over the coming weeks. Our second plant in the province of Henan is developing as planned, on budget and on time, and with a schedule around six months after the Jiangsu plant. We expect to complete the construction by the end of the summer. Moving now to the market environment. We have seen over the Q1 a recovery of the steel production industry in Europe, and we expect the current level of steel production to be maintained throughout this 2021, which will represent a higher production over last year. The automotive industry in Europe is also showing some signs of recovery, and we will see how this develops over the rest of the year. As you know, a positive development in the automotive industry will support our secondary aluminum as well as our salt slags volumes. Let me now explain some details on the outlook for this year. As explained at the beginning of the call, for the full year 2021, we expect a total EBITDA between EUR 165 million and EUR 190 million. At the lower end of the guidance range, we expect to achieve around EUR 165 million of EBITDA, which is higher than the EUR 160 million we achieved in 2019 before COVID started. This is based on a moderate recovery from COVID-19, with an overall capacity utilization around 85%, and China ramping up and delivering commercial output in the second half of the year on schedule. From the price environment point of view, this lower part of the guidance considers that zinc and aluminum market price will be slowing down in the second part of the year compared to the strong levels achieved in the Q1 of 2021. The high end of the guidance at EUR 190 million would represent a new historical record for our company. This scenario is based on a continuation of the strong recovery from COVID-19 seen already in the Q1, representing an overall capacity utilization around 90%-95%. Similarly, China ramping up and delivering commercial output in the second half of the year on schedule. From the metal price environment, this scenario considers that the strongest levels achieved during the Q1 are maintained for the rest of the year, with zinc LME around EUR 2,750 per ton and aluminum alloy around EUR 2,000 per ton. Let me say that today the zinc price is EUR 100 above this figure. In both low and higher scenarios, the treatment charge referenced that has been considered is the same at $159 per ton. Cash flow generation is expected to be strong in 2021, and we expect to end the year with leverage ratio between 2.1x and 2.5x. We expect total CapEx around EUR 75 million - EUR 90 million, of which around EUR 50 million - EUR 60 million will be dedicated to growth in China, the remaining EUR 25 million - EUR 30 million will go to regular maintenance. On dividend, we will continue to carefully manage dividend stability and dividend yield, cash flow, leverage, and the funding of the organic growth. For this year, we want to propose a dividend distribution of EUR 40 million, which means EUR 1.17 per share, which would basically mean distributing 50% of the net profit on a two years view. Finally, on ESG, I would like to stress once again that we are doing a lot of efforts to make sure that the market understands how Befesa is part of the circular economy and contributes with its business to environmental protection by recycling more than 1.5 million tons of hazardous waste refuse annually and producing more than 1.3 million tons of new materials, reducing the consumption of natural resources. This has been the backbone of the business since the company started more than three decades ago. Thank you very much. Thank you, Javier. We will now open the line for your questions. Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press zero one on your telephone keypad. Thank you. The first question comes from Benjamin Pfannes-Varrow from Berenberg. Good morning. Just a few from me, please. Firstly, maybe on the throughput levels in Q1, could you give us an update on the development by end market for the steel dust business and also the target utilization then for each end market, for the full year, just to get a picture of the development? Thanks, Benjamin. Regarding the steel production in the Q1, the figures we have today is that Europe has grown 3.1% compared to the previous year. China 15.6%, South Korea 3.8%, and Turkey 9.5%, while the U.S. declined 6.3%. Well, the second part of your question is our forecast for the full year, Benjamin? Please. Yeah. Sorry. Yes, exactly. More so for the throughput, in each of your end markets, so how that developed in Q1, and your expectation then for each end market for throughput, for the full year. We don't have a forecast for the full year. We expect that the market will do better than in the previous year. I think we will achieve pre-COVID levels, we will be more in the range than the figures we saw in 2019. I don't know if this answered your question, Benjamin. Yeah, sure, thanks. Looking at China. Could you give us some detail on what you're factoring into guidance for China output or earnings contribution? Is that the same in both the lower end and the upper end guidance scenarios? Okay. Well, basically we are considering the same volume in China, both in the low and the highest scenarios of our guidance. We consider that, taking into account our situation today, we have a very good visibility about what is going to happen in China, at least in terms of volume. In terms of volume, what we are considering in China is that we will start operations in Jiangsu in the second part of the year. That means, commercial production, let's say around July. Based on that, we expect to achieve a volume between 60%-70% of the capacity of the plant in the second part of the year. Considering that the plant has a capacity of between 100,000 and 110,000 tons, so divide by two and multiply by 60% or 70%. Considering in Henan, the commercial production will be very small as we are going to start the ramp up after the summer. The second part of the year will be for commissioning, trials, et cetera. The big question regarding China is, we have two or three open questions as of today, which is collection fee, transport costs, and zinc contained in the dust. It's not very easy to forecast which will be the earning contribution for China in this year. Any case, no matter how strong the contribution of China in 2021, it's not going to affect dramatically the profit of the company during 2021. Okay. That's clear. Thanks. Last one, just on China again. With the contract negotiation, do you expect to secure those before you start the commercial production in the second half of the year? We don't have any doubt that we will get the volumes that we need to hit the plan during the year. We are today in the middle of the negotiation with, let me say, all our future customers. This negotiation is an individual negotiation, and it depends on the distance from our plant. It depends on the quality of the dust. It depends on different factors. We are now in the negotiation. So we know we see the volume in front of us in the area. I think for us, the important point is not to get contract signed before we start operations. The important is to get the volume to start operations. That is what we are working on really. Okay. Thank you. Thank you, Benjamin. Thank you. The next question comes from Ingo Schachel from Commerzbank. Please go ahead. Yeah. Thanks for taking my question. The first one would be on China, too. Now that you've completed the commissioning, I was just wondering whether you can tell us whether you experienced any, let's say, technical challenges on the commissioning phase or anything which was, let's say, different in terms of technical ramp up from what you've seen in Turkey, for example, or whether the commissioning was very smooth from a ramp-up perspective. The second on China would be just regarding quality of steel dust. I guess you have already seen a few samples and received a bit of information from your Chinese dust suppliers. Is there anything that surprised you with regards to quality of the dust so far, both in terms of zinc content as well as with regards to, for example, country specific impurities? Thanks, Ingo. Two very good questions. From the technical point of view, the commissioning is going very well. In a commissioning, you never know what is going to happen until the commissioning is totally finished. So far, we are not seeing any relevant issue in front of us. It seems that we will have a smooth commissioning, let's say. Well, in case we need to finish until the last day, as I said before. We don't expect any major problems. In the quality of the steel dust, well, this is a big point for us. We have explained several times that we have done samples, but one thing is to get a sample from the steel dust of a steel maker, and a very different thing is to treat 1,000 tons every month from the same customer. Our first expectation is that the quality of the dust, so the zinc contained in the dust, at least in the first year of operation, will be slightly below the zinc content we are achieving in Europe and even in Turkey. We expect that in the next years, we will see a clear improvement in the quality of the dust. There are some Chinese steel makers that are not using 100% of scrap in their electric arc furnace because the availability of scrap is growing every day. We expect to start with lower zinc content than in, basically our European plant. In the next years, we expect to grow and to improve the quality of the dust. Okay. That's a good point with regards to scrap availability. Just one more on the secondary aluminum segment, if I may. I think the performance has been very impressive and you've probably also been surprised by the strong rebound of profitability there and also the strong rebound of utilization. I was just wondering for example, Bernburg, I guess it's already running at high utilization. The trend towards more aluminum and passenger vehicle is probably accelerating. You even have a few green fields, automotive plants in proximity to your Bernburg plant. Do you see any scope to debottleneck the plant to increase output? Should we rather assume that the capacity is fixed and then if demand improves, you would rather focus on improving margins further in the secondary aluminum segment rather than trying to increase volumes. Okay. As you said, it has been an excellent quarter for our secondary aluminum business. I'm sure that has been our record year in the history. It has been based in the fantastic performance of the automotive industry in Europe in the Q1. Well, we are not totally convinced that the rest of the year will be at the same high level that we have seen in the first part of the year. I'm sure many of you are more expert than us in the automotive industry, so I would like to be prudent talking about that. Well, there are some signs that a slight, let me say, decrease in the production of cars in Europe in the Q2 compared to the Q1. Regarding Bernburg, well, Bernburg is perfectly well located. It's in the middle of the most relevant area of Europe in terms of automotive production. In that sense, it's a great location. Today, we are running at full capacity. The possibility to increase the capacity of the plant is something that we have with our mind. On the other hand, we should be prudent. We would like to be more confident in the evolution of the automotive industry in Europe in the next years. Okay. Very clear. Thank you. Thank you. Thank you, Ingo. Thank you. The next question comes from Olivier Calvet from Kepler Cheuvreux. Please go ahead. Yes. Hi, good morning. I would have a few questions. I'll take them one by one, a few remaining. I was just wondering in China, the zinc content in the dust that you are seeing. Can you give us a timeline of the first few batches that you will see from steel makers in the country? Because now I understand you mostly saw samples, but what about the first, let's say, two tons of dust? Okay. Well, which is the program we have in front of us. Now we are doing the commissioning. You know that the first part of the commissioning is called cold commissioning, and then later you have the hot commissioning. The hot commissioning should be done with raw material, so with dust. The focus in that part, in the commissioning is not in the quality of the dust we are treating. The focus in the commissioning is in the performance of the different equipment of the plant, to achieve and to get the levels of productivity, efficiency, et cetera. When we will see really the quality of the dust? That will be the real moment. Once you start to get 1,000 tons from the different customers. It's something that happens in Europe. We have customers in Europe with more than 30% of zinc in the dust, and we have customers in Europe with 10%. At the end, it's an average. The reason why it's difficult to forecast the average zinc content in the dust is because each customer will have a different zinc content. We need to see which are the customers we are closing contract with, which is the zinc content in this dust, and then we will get an average at the end of the year. Really, probably at the end of this year, Olivier, we will be in a position to say, hey, the zinc content in the dust in China will be in this range at least for the next year. Okay? Yeah. Okay. That makes a lot of sense. Okay. I'm just wondering if you can give us a sort of indication in terms of the assumption you are making on EBITDA contribution for China over the full year? Well, I answered this question to Benjamin at the beginning. Basically, we are considering a very stable situation in China, which is that in the Jiangsu plant, we will achieve a total load factor in the second six months of the year between 60%-70%. Practically, a very marginal contribution from Henan, you can say near zero. The total contribution of China this year is not going to be more than 30,000 tons, 40,000 tons. Considering the question marks we have around quality of zinc, collection fee, et cetera, the EBITDA of this year is not going to change dramatically because if the Chinese contribution is slightly higher or lower. That will happen really next year, where we will have two plants running at full capacity or near full capacity. Okay. That makes sense. I'm just wondering if you are seeing any competition start on the ground, beyond the players you invoked before. Not really. We don't have any real competition in front of us. When I say real competition, I'm referring to companies with the quality, let me say, from environmental point of view of Befesa. We don't know any projects of any new recycling plant based on best available technology and doing a complete recycling end process. In practice, we have competition. What we have is local competition. It's something that we have seen in the past in Europe many years ago, or in South Korea some years ago, at the beginning. Until the market is, let me say, complete or organized, you will see local people doing some kind of recycling operation. People who are really needed, because somebody needs to treat the steel dust in the best possible way until you have a good number of projects that could do a proper recycling. Yeah. Okay. So far we didn't see any, let's say, foreign company or a strong local group starting the construction of a recycling plant. Okay. Thanks. Then a couple left. One is, what is the average zinc and aluminum prices that you are assuming for the full year in the lower end of your guidance? That would be the first one. In the lower end of the guidance, we are considering, I don't want to make a mistake, but I think in the lower part, we are considering price of zinc around $2,500 per ton. Aluminum price of EUR 1,600 per ton. I think these are the considerations. In the higher part, we are considering zinc price of around $2,750 per ton. Today, well, I didn't see it this morning, but yesterday, the zinc price finished the day more than $100 above that figure. That would be a buffer for Befesa, no? Yeah. Okay. Yeah. Sure. The last question I have, just a technical one. Can you come back on the TC receivables, and how long it typically takes for the smelters to compensate you once the benchmark TCs are defined? Now we are closing the contract with our customers. What we basically, or every year we get, is that we follow totally the benchmark. In that case, the $159 per ton. Normally, we are able to get something better. It's a small amount of two, three, $4, no more than that. Right now we are closing this contract that will take effect from the beginning of this year. You can consider that this treatment charge will be our treatment charge for the full year. No, sure. I was talking about in terms of, t his is slide nine, you are talking about on your cash flow, the effect of TCs in terms of the working capital change and other. Okay. I was. Wolf, don't you mind to answer this question? No, absolutely. Correct, Olivier. What you saw is that working capital went up. This is seasonal. The sales in the Q4 were EUR 158 million, and in the Q1, EUR 193 million. You had quarter-over-quarter EUR 35 million more sales. The treatment charges are backdated to 1st of January. They are now affected or already reflected in the sales accrual. As such, the working capital, a good chunk of that is really receivables, because if you look at receivables, the balance is up EUR 24 million quarter-over-quarter or from year-end to Q1-end. Inventory basically was flat, and half of the receivables impact was offset through higher payables, obviously from our growth projects. You have net about EUR 12 million, EUR 13 million working capital impact and the back charging of treatment charge is part of that. Does that explain the question, Olivier? I was just trying to get at how much it is and how fast smelters typically pay these back. Well, it's standard, quite frankly, Olivier, as every year, these types of accruals are then adjusted and as part of the regular receivables billing. There's no issue around that. Okay. All right. Thanks. Mm-hmm. Thank you. Thanks, Olivier. Thank you. Ladies and gentlemen, just a reminder, in order to ask a question, please press zero one on your telephone keypad. The next question comes from Oscar Val Mas from JP Morgan. Please go ahead. Good morning. I had two questions. The first one was on the U.K. plant closure. Can you remind us what happens to the volume that you were treating there and why you can't treat that in your existing plants in Germany? Are there any one-off closing costs or will you sell that U.K. site? That's the first question. The second question is on treatment charges. There's a big improvement this year. Can you remind us internally when you run your forecast, what is your long-term treatment charge level that we should be thinking about in the long term? Thank you. Thank you, Oscar. Regarding the first question, the U.K. plan. The plan is totally shut down, and all the cost has been accounted in 2020. We don't expect any additional cost to be accounted this year. Regarding the volumes. One of the reasons to shut down the plan is that we lost a big contract with a traditional customer in U.K. What we are trying to do is to be able to treat the remaining tons in our German plants. That means that we have been suffering some problems, some of them linked with Brexit, et cetera, because to get the different permit, et cetera, has been really very painful during the first part of the year. I can say that as of today, we are starting to treat the remaining volume in our German plant. We expect at the end of this year to treat 23,000-30,000 tons of salt slag that we were treating in U.K., in our German plants. Regarding treatment charge. This year, a very difficult question. Traditionally, the treatment charge, if you analyze the average treatment charge during the last, I would say 15 years, has been in a range between 9%-11% compared to the LME zinc price each year. That range changed in 2018 when the treatment charge went down to levels of 6%, something like that, and changed in a totally different direction in 2020, where the treatment charge went to levels of 14%-15% of the zinc price. This year, we are again in low levels, around let's say we would be today around 6% or something like that. It's really difficult to forecast a long-term treatment charge. What we do internally is we use the average percentage of treatment charge during the last 10-15 years. We will be more in levels of 9%-10%, but let's see what happens. Okay, great. No, I understand it's very difficult. It's just useful to understand how you think about that long term. Okay. Thank you very much. Thank you, Oscar. Thank you. The next question comes from Michael Hoffman from Stifel. Please go ahead. Hi, good morning. Thanks for taking the questions. Javier, could you share a little bit of what your assumptions are for the macro environment? What would we need to see in the economy that would push your guidance to the low end, versus what would we need to see in the economy to see it push to the high end? You made a very good question, Michael. Well, let me different in steel and aluminum. In steel, I think we have a more stable situation in front of us. At least we have a very clear view for the first six months of the year. Where we see a very unstable market, high level of productions, recovery levels, et cetera. We see more uncertainty in the aluminum business, but based in the uncertainty that we see in the automotive industry. Q1 of automotive industry has been very strong, I think worldwide, at least in the market we know better, which are Europe and Asia. We are not totally sure that the Q2 will be in the same level and let's see what's happening in the second part of the year. Based on that, what we are forecasting is that in the lower part of the range, we will be more in load factors around 85% or slightly above 85%. In the high part of the range, we will be more in levels of near 95%. To define more how we see the macro will be difficult. Any case, we are not forecasting in our guidance a dramatic change in the current situation. We think that during this year, as I said before, we will be in load factors or in utilization levels between 85% to 94%. No? Okay. Is some of your concern on auto less about demand than it is the disruptions related to the chips and the supplies and plants having to take downtime because they can't get the chips? Is it a demand concern? Well, this is one of the concerns. We have, for example, in this Q2, we are suffering some change in the orders we get from the automotive industry in Europe based on shutdowns because the chips situation. Well, everything at the end of the day will affect the market. Taking into account, as you know very well, Michael, that steel dust represents near 80% of our P&L. Well, I don't think that any change in the automotive industry, so in our aluminum business, will affect dramatically our P&L. Today, I would say that we should be taking into account the situation we have in front of us. I feel that we will be more in the high part of the range than in the lower part of the range. Okay, fair enough. Javier, I always have to ask this, as you're starting up China, when do we start layering in hedges for China? To start with the hedging in China, we need to be totally convinced about the levels of production that we are going to get. On the other hand, we are learning that hedgings in China will not be totally similar to the situation we have in the rest of the world. Based on the first part of the answer, next year, we could start to hedge in China. Probably the levels of hedging that we are going to do in the first year are not going to be 70%. We can start with lower levels just to be sure. On the other hand, we need to definitively learn about the hedging market in China. We need to find counterpartners in China, and probably we will need to hedge in the Shanghai Futures Exchange instead to doing the London Metal Exchange. We are now in the middle of this process. Okay. Wolf, what is your assumption for the full year and your cash flow for working capital? Is it a source, a use, or is it neutral? Thank you, Michael. As usual, Michael, you can pencil in the buffer on working capital as something like EUR 10 million usage, EUR 10 million-EUR 15 million as we grow. Then, as you know, we had years where we really didn't need that buffer, but I would put in EUR 10 million-EUR 15 million just to be conservative. Okay. Terrific. Thank you very much. Nice start to the year. Thank you. Thank you. Thank you. The next question comes from Jaime Escribano from Banco Santander. Please go ahead. Hello. Good morning. I had a question regarding margins. The margin has been around 25%. Out of that, Steel Dust around 36%, 30% in salt slags, and around close to 8% in secondary aluminum. My question would be, how should we think about these margins per division and going forward in Q2, Q3, Q4, and particularly to understand the salt slags. This 30%, I guess, is due to the shutdown of U.K. and probably high aluminum prices, and also in secondary aluminum. I just want to know if there is any seasonality where margins came better than expected, like in secondary aluminum, or is this something that we should expect in following quarters? Thank you. Thank you, Jaime. Well, for us, it's extremely difficult to precise the margin quarter- by- quarter. Considering the full year, I think that 25% of average margin for the full year for us is an excellent margin. I think the better margin we have achieved in the past has been 40/24, on average 24.something. To get 25 on average will be great. Regarding the different business, 36% in Steel Dust is something that we have seen in the past, and 30% in the Salt Slag as well. 8% in secondary aluminum is a very good margin. Summarizing, for us to achieve in the full year, a full margin of 20% or 25% or pretty close, 25%, would be an excellent year. Okay. Very good. Thank you. Thank you, Jaime. Thank you. Thank you. Ladies and gentlemen, there are no further questions. I will now give back the floor to our speakers. Thank you. Thank you all for your questions. You can also contact the investor relations team of Befesa for any further clarification. We will now conclude the conference call and the Q&A session. Let me remind you that you can find the webcast and the dial-in details to access the recording of this conference call on our website, www.befesa.com. Thank you very much to all.