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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to ___________
1-35573
(Commission file number)
TRONOX HOLDINGS PLC
(Exact Name of Registrant as Specified in its Charter)
England and Wales98-1467236
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
263 Tresser Boulevard, Suite 1100
Stamford, Connecticut 06901
Laporte Road, Stallingborough
Grimsby, North East Lincolnshire, DN40 2PR
United Kingdom 
Registrant’s telephone number, including area code: (203) 705-3800
Securities registered pursuant to Section 12(b) of the Act:
Title of each className of each exchange on which registered
Ordinary Shares, par value $0.01 per shareNew York Stock Exchange
Trading Symbol: TROX
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of April 22, 2024, the Registrant had 157,838,526 ordinary shares outstanding.




2



3

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended March 31,
20242023
Net sales$774 $708 
Cost of goods sold654 575 
Gross profit120 133 
Selling, general and administrative expenses79 71 
Income from operations41 62 
Interest expense(42)(33)
Interest income4 3 
Other (expense) income, net(1)2 
Income before income taxes2 34 
Income tax provision(11)(9)
Net (loss) income(9)25 
Net income attributable to noncontrolling interest 2 
Net (loss) income attributable to Tronox Holdings plc$(9)$23 
(Loss) Earnings per share:
Basic $(0.06)$0.15 
Diluted$(0.06)$0.15 
Weighted average shares outstanding, basic (in thousands)157,331 155,175 
Weighted average shares outstanding, diluted (in thousands)157,331 156,641 
See accompanying notes to unaudited condensed consolidated financial statements.
4

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
(Millions of U.S. dollars)
Three Months Ended March 31,
20242023
Net (loss) income$(9)$25 
Other comprehensive income (loss):
Foreign currency translation adjustments(41)(13)
Pension and postretirement plans:
Actuarial loss, (net of tax benefit of nil and $1 million in the three months ended March 31, 2024 and 2023, respectively)
 1 
Total pension and postretirement gain 1 
Realized (gains) losses on derivatives reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statement of Operations (net of tax benefit of nil and $1 million in the three months ended March 31, 2024 and 2023, respectively)
(1)3 
Unrealized gains (losses) on derivative financial instruments, (net of tax benefit of nil and $2 million for the three months ended March 31, 2024 and March 31, 2023, respectively) - See Note 12
10 (6)
Other comprehensive loss(32)(15)
Total comprehensive (loss) income(41)10 
Comprehensive (loss) income attributable to noncontrolling interest:
Net income 2 
Foreign currency translation adjustments(1)2 
Comprehensive (loss) income attributable to noncontrolling interest(1)4 
Comprehensive (loss) income attributable to Tronox Holdings plc$(40)$6 

See accompanying notes to unaudited condensed consolidated financial statements.
5

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions of U.S. dollars, except share and per share data)
March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$152 $273 
Restricted cash2  
Accounts receivable (net of allowance for credit losses of $5 million and $3 million as of March 31, 2024 and December 31, 2023, respectively)
378 290 
Inventories, net1,403 1,421 
Prepaid and other assets214 141 
Income taxes receivable10 10 
Total current assets2,159 2,135 
Noncurrent Assets
Property, plant and equipment, net1,804 1,835 
Mineral leaseholds, net639 654 
Intangible assets, net243 243 
Lease right of use assets, net134 132 
Deferred tax assets915 917 
Other long-term assets128 218 
Total assets$6,022 $6,134 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$398 $461 
Accrued liabilities240 230 
Short-term lease liabilities22 24 
Short-term debt4 11 
Long-term debt due within one year27 27 
Total current liabilities691 753 
Noncurrent Liabilities
Long-term debt, net2,780 2,786 
Pension and postretirement healthcare benefits103 104 
Asset retirement obligations176 172 
Environmental liabilities48 48 
Long-term lease liabilities105 103 
Deferred tax liabilities156 149 
Other long-term liabilities38 39 
Total liabilities4,097 4,154 
Commitments and Contingencies - Note 15
Shareholders’ Equity
Tronox Holdings plc ordinary shares, par value $0.01157,838,425 shares issued and outstanding at March 31, 2024 and 156,793,755 shares issued and outstanding at December 31, 2023
2 2 
Capital in excess of par value2,070 2,064 
Retained earnings 655 684 
Accumulated other comprehensive loss(845)(814)
Total Tronox Holdings plc shareholders’ equity1,882 1,936 
Noncontrolling interest43 44 
Total equity1,925 1,980 
Total liabilities and equity$6,022 $6,134 
See accompanying notes to unaudited condensed consolidated financial statements.
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TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of U.S. dollars)
Three Months Ended March 31,
20242023
Cash Flows from Operating Activities:
Net (loss) income$(9)$25 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion and amortization72 71 
Deferred income taxes 11 (1)
Share-based compensation expense6 6 
Amortization of deferred debt issuance costs and discount on debt2 2 
Other non-cash items affecting net (loss) income 16 16 
Changes in assets and liabilities:
Increase in accounts receivable, net of allowance for credit losses(94)(41)
Decrease (increase) in inventories, net11 (83)
Decrease in prepaid and other assets16 2 
Decrease in accounts payable and accrued liabilities(49)(68)
Net changes in income tax payables and receivables(3)2 
Changes in other non-current assets and liabilities(8)(10)
Cash used in operating activities (29)(79)
Cash Flows from Investing Activities:
Capital expenditures(76)(93)
Proceeds from sale of assets 2 
Cash used in investing activities(76)(91)
Cash Flows from Financing Activities:
Repayments of short-term debt(6)(26)
Repayments of long-term debt(5)(4)
Proceeds from short-term debt 152 
Dividends paid(1)(2)
Cash (used in) provided by financing activities(12)120 
Effects of exchange rate changes on cash and cash equivalents and restricted cash(2)1 
Net decrease in cash and cash equivalents and restricted cash(119)(49)
Cash and cash equivalents and restricted cash at beginning of period273 164 
Cash and cash equivalents and restricted cash at end of period$154 $115 
Supplemental cash flow information:
Interest paid, net$52 $34 
Income taxes paid$3 $7 
See accompanying notes to unaudited condensed consolidated financial statements.
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TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
(Millions of U.S. dollars, except for shares)
For the three months ended March 31, 2024
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
Tronox
Holdings
plc
Ordinary
Shares
(Amount)
Capital
in
Excess
of par
Value
Retained EarningsAccumulated
Other
Comprehensive
Loss
Total
Tronox
Holdings plc
Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Balance at December 31, 2023156,794 $2 $2,064 $684 $(814)$1,936 $44 $1,980 
Net income— — — (9)— (9)— (9)
Other comprehensive (loss) income— — — — (31)(31)(1)(32)
Share-based compensation1,050 — 6 — — 6 — 6 
Shares cancelled(6)— — — — — — — 
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at March 31, 2024157,838 $2 $2,070 $655 $(845)$1,882 $43 $1,925 
See accompanying notes to unaudited condensed consolidated financial statements.
8

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
(Unaudited)
(Millions of U.S. dollars, except for shares)
For the three months ended March 31, 2023
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
Tronox
Holdings
plc
Ordinary
Shares
(Amount)
Capital
in
Excess
of par
Value
Retained EarningsAccumulated
Other
Comprehensive
Loss
Total
Tronox
Holdings plc Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Balance at December 31, 2022154,497 $2 $2,043 $1,080 $(768)$2,357 $46 $2,403 
Net income— — — 23 — 23 2 25 
Other comprehensive (loss) income— — — — (17)(17)2 (15)
Share-based compensation2,221 — 6 — — 6 — 6 
Shares cancelled(1)— — — — — — — 
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at March 31, 2023156,717 $2 $2,049 $1,083 $(785)$2,349 $50 $2,399 
See accompanying notes to unaudited condensed consolidated financial statements.
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TRONOX HOLDINGS PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Millions of U.S. dollars, except share, per share and metric tons data or unless otherwise noted)

1.    The Company
Tronox Holdings plc (referred to herein as "Tronox", the "Company", "we", "us", or "our") operates titanium-bearing mineral sand mines and beneficiation operations in Australia and South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high purity titanium chemicals, including titanium tetrachloride, and Ultrafine© titanium dioxide used in certain specialty applications. Our strategy is to be vertically integrated and produce enough feedstock materials to be as self-sufficient as possible in the production of TiO2 at our nine TiO2 pigment facilities located in the United States, Australia, Brazil, UK, France, the Netherlands, China and the Kingdom of Saudi Arabia (“KSA”). We believe that vertical integration is the best way to achieve our ultimate goal of delivering low cost, high-quality pigment to our coatings and other TiO2 customers throughout the world. The mining, beneficiation and smelting of titanium bearing mineral sands creates meaningful quantities of zircon, pig iron and the rare-earth bearing mineral, monazite, which we also supply to customers around the world.
We are a public limited company listed on the New York Stock Exchange and are registered under the laws of England and Wales.
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.
In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, considered necessary for a fair statement of its financial position as of March 31, 2024, and its results of operations for the three months ended March 31, 2024 and 2023. Our unaudited condensed consolidated financial statements include the accounts of all majority-owned subsidiary companies. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the manner and presentation in the current period.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that the effect on the financial statements of a change in estimate due to one or more future confirming events could have a material effect on the financial statements, including, among other things, any potential impacts on the economy as a result of macroeconomic conditions, inflationary pressures, political instability, and supply chain disruptions.
Recently Issued Accounting Pronouncements
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In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures". The amendment requires additional disclosures by public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items for each reportable segment. The guidance applies to fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating any incremental disclosures required as a result of this standard.
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The amendments in this update apply to all entities that are subject to Topic 740, Income Taxes. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The amendments in this update are effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. We are currently evaluating any incremental disclosures required as a result of this standard.
2.    Revenue
We recognize revenue at a point in time when the customer obtains control of the promised products. For most transactions this occurs when products are shipped from our manufacturing facilities or at a later point when control of the products transfers to the customer at a specified destination or time.
Contract assets represent our rights to consideration in exchange for products that have transferred to a customer when the right is conditional on situations other than the passage of time. For products that we have transferred to our customers, our rights to the consideration are typically unconditional and only the passage of time is required before payments become due. These unconditional rights are recorded as "Accounts receivable" in the unaudited Condensed Consolidated Balance Sheets. As of March 31, 2024, and December 31, 2023, we did not have any material contract asset balances.
Contract liabilities represent our obligations to transfer products to a customer for which we have received consideration from the customer. From time to time, we may receive advance payment from our customers that is accounted for as deferred revenue. Deferred revenue is earned when control of the product transfers to the customer, which is typically within a short period of time from when we received the advanced payment. Contract liability balances as of March 31, 2024 and December 31, 2023 were $1 million and less than $1 million, respectively. Contract liability balances were reported as “Accounts payable” in the unaudited Condensed Consolidated Balance Sheets.  All material contract liabilities as of December 31, 2023 were recognized as revenue in “Net sales” in the unaudited Condensed Consolidated Statements of Operations during the first quarter of 2024.
Disaggregation of Revenue
We operate under one operating and reportable segment, Tronox. We disaggregate our revenue from contracts with customers by product type and geographic area. We believe this level of disaggregation appropriately depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors and reflects how our business is managed.
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Net sales to external customers by geographic areas where our customers are located were as follows:
Three Months Ended March 31,
20242023
North America$192 $189 
South and Central America46 42 
Europe, Middle-East and Africa309 282 
Asia Pacific227 195 
Total net sales$774 $708 

Net sales from external customers for each similar type of product were as follows:
Three Months Ended March 31,
20242023
TiO2
$605 $560 
Zircon88 72 
Other products81 76 
Total net sales$774 $708 
Other products mainly include pig iron, TiCl4 and other mining products.
During both the three months ended March 31, 2024 and 2023, our ten largest third-party customers represented 37% of our consolidated net sales. During the three months ended March 31, 2024 and 2023, no single customer accounted for 10% of our consolidated net sales.
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3.    Income Taxes
Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.
Income before income taxes is comprised of the following:
Three Months Ended
March 31,
20242023
Income tax provision$(11)$(9)
Income before income taxes$2 $34 
Effective tax rate550 %26 %
Tronox Holdings plc, a U.K. public limited company is the parent company for the business group, and the statutory tax rate in the U.K. at both March 31, 2024 and 2023 was 25% and 19%, respectively. The statutory rate in the U.K. changed to 25% effective April 1, 2023 and a weighted average of 23.5% was applied for the full year 2023. The effective tax rates for both the three months ended March 31, 2024 and 2023 are impacted by a variety of factors including income and losses in jurisdictions with valuation allowances, non-taxable income and expense items, prior year accruals, and our jurisdictional mix of income at tax rates different than the U.K. statutory rate.

At each reporting date, we perform an analysis to determine the likelihood of realizing our deferred tax assets and whether any valuation allowances are required. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. Our analysis takes into consideration all available positive and negative evidence, including prior operating results, the nature and reason for any losses, our forecast of future taxable income, utilization of tax planning strategies, and the dates on which any deferred tax assets are expected to expire. These assumptions and estimates require a significant amount of judgment and are made based on current and projected circumstances and conditions.

We continue to maintain full valuation allowances related to the total net deferred tax assets in Australia and the United Kingdom, as we cannot objectively assert that these deferred tax assets are more likely than not to be realized. Until these valuation allowances are eliminated, future provisions for income taxes for these jurisdictions will include no tax benefits with respect to losses incurred and tax expense only to the extent of current tax payments. Additionally, we have valuation allowances against specific tax assets in South Africa and the United States.

The Company currently has no uncertain tax positions recorded. We believe that we have made adequate provisions for income taxes that may be payable with respect to years open for examination or currently under examination. With regard to years under examination, the ultimate outcome is not presently known and, accordingly, adjustments to our provisions may be necessary and/or reclassifications of noncurrent tax liabilities to current may occur in the future.

During the year ended December 31, 2023, the United Kingdom enacted legislation consistent with guidance from the Organization for Economic Co-operation and Development ("OECD") for the implementation of the Global Anti-Base Erosion Model Rules (Pillar Two). Additionally, various other jurisdictions have now implemented domestic minimum taxes which are also effective for 2024. Neither the UK multinational top-up tax nor any jurisdiction's domestic minimum tax are expected to have a material impact on our income tax provisions for 2024.
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4.    Income Per Share
The computation of basic and diluted income per share for the periods indicated is as follows:
Three Months Ended March 31,
20242023
Numerator - Basic and Diluted:
Net (loss) income$(9)$25 
Less: Net income attributable to noncontrolling interest 2 
Net (loss) income available to ordinary shares$(9)$23 
Denominator - Basic and Diluted:
Weighted-average ordinary shares, basic (in thousands)157,331 155,175 
Weighted-average ordinary shares, diluted (in thousands)157,331 156,641 
Basic net (loss) income per ordinary share$(0.06)$0.15 
Diluted net (loss) income per ordinary share$(0.06)$0.15 
Net (loss) income per ordinary share amounts were calculated from exact, not rounded net (loss) income and share information.  Anti-dilutive shares not recognized in the diluted net income per share calculation for the three months ended March 31, 2024 and 2023 were as follows:
Shares
Three Months Ended March 31,
20242023
Options4,397 265,376 
Restricted share units1,285,008 2,798,108 

5.    Accounts Receivable Securitization Program

On March 15, 2022, the Company entered into an accounts receivable securitization program (“Securitization Facility”) with a financial institution ("Purchaser"), through our wholly owned special purpose bankruptcy-remote subsidiary Tronox Securitization LLC (“ SPE”). In November 2022, the Securitization Facility was amended (the "First Amendment") to include receivable generated by our wholly-owned Australian operating subsidiaries Tronox Pigment Pty Ltd., Tronox Pigment Bunbury Ltd. and Tronox Mining Australia Ltd. In June 2023, the Company entered into an additional amendment (the “Second Amendment”) to further include receivables generated by our wholly-owned European operating subsidiaries Tronox Pigment Holland BV and Tronox Pigment UK Limited. Neither the facility limit nor the program term were changed as a result of the Second Amendment, which remained at $200 million and November 2025, respectively.
In March 2024, we entered into a Securitization Facility technical amendment (the "Third Amendment"), to increase the percentage of certain receivables eligible for sale to the Purchaser. In April 2024, we again amended the Securitization Facility (the "Fourth Amendment"), to increase the Facility Limit from $200 million to $230 million. The Fourth Amendment had no impact to financial position or financial results at and for the three months ended March 31, 2024.
As the Company does not maintain effective control over the sold receivables, we derecognize the sold receivables from our unaudited Condensed Consolidated Balance Sheet and classify the cash proceeds as source of cash from operating activities in our unaudited Condensed Consolidated Statement of Cash Flows.
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The program is structured on a revolving basis under which cash collections from receivables are used to fund additional purchases of receivables at 100% face value, not to exceed the facility limit. As of March 31, 2024 and December 31, 2023, the total value of accounts receivables sold under the Securitization Facility and derecognized from the Company's unaudited Condensed Consolidated Balance Sheet was $200 million and $186 million, respectively. Additionally, at March 31, 2024 and December 31, 2023, we retained approximately $171 million and $129 million, respectively, of unsold receivables which we pledged as collateral for the sold receivables.
The following table sets forth a summary of the receivables sold and fees incurred under the program during the related periods:
Three Months Ended March 31,
20242023
Cash proceeds from collections reinvested in the program$222 $144 
Incremental accounts receivables sold236 138 
Fees incurred1
3 2 
1 Amounts relate to monthly utilization of the Securitization Facility and are recorded in "Other (expense) income, net" in our unaudited Condensed Consolidated Statement of Operations.

6.    Inventories, Net
Inventories, net consisted of the following:
March 31, 2024December 31, 2023
Raw materials$342 $352 
Work-in-process141 141 
Finished goods, net682 688 
Materials and supplies, net238 240 
Inventories, net$1,403 $1,421 
Materials and supplies, net consists of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of our products.
At March 31, 2024 and December 31, 2023, there was approximately $60 million and $57 million, respectively, of inventory that is not expected to be sold within one year and as such, has been recorded in "Other long-term assets" on the Condensed Consolidated Balance Sheets.
At March 31, 2024 and December 31, 2023, inventory obsolescence reserves primarily for materials and supplies were $44 million and $42 million, respectively. Reserves for lower of cost or market and net realizable value were $27 million and $50 million at March 31, 2024 and December 31, 2023, respectively.
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7.    Property, Plant and Equipment, Net
Property, plant and equipment, net of accumulated depreciation, consisted of the following:
March 31, 2024December 31, 2023
Land and land improvements$236 $237 
Buildings401 404 
Machinery and equipment2,524 2,530 
Construction-in-progress325 319 
Other61 60 
Subtotal3,547 3,550 
Less: accumulated depreciation(1,743)(1,715)
Property, plant and equipment, net$1,804 $1,835 
Substantially all of the property, plant and equipment, net is pledged as collateral for our debt. See Note 11.
The table below summarizes depreciation expense related to property, plant and equipment for the periods presented, recorded in the specific line items in our unaudited Condensed Consolidated Statements of Operations:
Three Months Ended March 31,
20242023
Cost of goods sold$56 $54 
Selling, general and administrative expenses1 1 
Total$57 $55 

8.    Mineral Leaseholds, Net
Mineral leaseholds, net of accumulated depletion, consisted of the following:
March 31, 2024December 31, 2023
Mineral leaseholds$1,249 $1,260 
Less: accumulated depletion(610)(606)
Mineral leaseholds, net$639 $654 

Depletion expense relating to mineral leaseholds recorded in “Cost of goods sold” in the unaudited Condensed Consolidated Statements of Operations was $7 million and $8 million during the three months ended March 31, 2024 and 2023, respectively.
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9.    Intangible Assets, Net
Intangible assets, net of accumulated amortization, consisted of the following:
March 31, 2024December 31, 2023
Gross CostAccumulated
Amortization
Net Carrying
Amount
Gross CostAccumulated
Amortization
Net Carrying
Amount
Customer relationships$291 $(255)$36 $291 $(250)$41 
TiO2 technology
93 (45)48 93 (44)49 
Internal-use software and other208 (49)159 201 (48)153 
Intangible assets, net$592 $(349)$243 $585 $(342)$243 
As of March 31, 2024 and December 31, 2023, internal-use software included approximately $131 million and $125 million, respectively, of capitalized software costs which are not being amortized as the software is not ready for its intended use.
The table below summarizes amortization expense related to intangible assets for the periods presented, recorded in the specific line items in our unaudited Condensed Consolidated Statements of Operations:
Three Months Ended March 31,
20242023
Cost of goods sold$1 $1 
Selling, general and administrative expenses7 7 
Total$8 $8 
Estimated future amortization expense related to intangible assets is $24 million for the remainder of 2024, $35 million for 2025, $21 million for 2026, $24 million for 2027, $23 million for 2028 and $116 million thereafter.
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10.    Balance Sheet and Cash Flow Supplemental Information
Accrued liabilities consisted of the following:
March 31, 2024December 31, 2023
Employee-related costs and benefits$99 $111 
Related party payables9 1 
Interest4 16 
Sales rebates43 36 
Taxes other than income taxes12 6 
Asset retirement obligations12 14 
Other accrued liabilities61 46 
Accrued liabilities$240 $230 
Additional supplemental cash flow information for the three months ended March 31, 2024 and 2023 and as of March 31, 2024 and December 31, 2023 is as follows:
Three Months Ended March 31,
Supplemental non cash information:20242023
Operating activities - Chloride slag inventory purchases made from AMIC (including VAT)$18 $ 
Operating activities - MGT sales made to AMIC$2 $1 
Investing activities - In-kind receipt of AMIC loan repayment$18 $ 
Financing activities - Repayment of MGT loan$2 $1 
March 31, 2024December 31, 2023
Capital expenditures acquired but not yet paid$43 $67 

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11.    Debt
Long-Term Debt
Long-term debt, net of an unamortized discount and debt issuance costs, consisted of the following:
Original
Principal
Annual
Interest Rate
Maturity
Date
March 31, 2024December 31, 2023
Term Loan Facility, net of unamortized discount (1)
1,300 Variable3/11/2028$899 $898 
2022 Term Loan Facility, net of unamortized discount(1)
400 Variable4/4/2029389 390 
2023 Term Loan Facility, net of unamortized discount(1)
350 Variable8/16/2028346 347 
Senior Notes due 2029 1,075 4.625 %3/15/20291,075 1,075 
Standard Bank Term Loan Facility (1)
98 Variable11/11/202660 64 
Australian Government Loan, net of unamortized discountN/AN/A12/31/20361 1 
MGT Loan(2)
36VariableVariable23 25 
Finance leases42 43 
Long-term debt2,835 2,843 
Less: Long-term debt due within one year(27)(27)
Debt issuance costs(28)(30)
Long-term debt, net$2,780 $2,786 
_______________
(1)The average effective interest rate on the Term Loan Facility (including the impacts of the interest rate swaps), the 2022 Term Loan Facility, the 2023 Term Loan Facility, and the Standard Bank Term Loan Facility was 5.7%, 9.0%, 9.2% and 10.6%, respectively, during the three months ended March 31, 2024. The average effective interest rate on the Term Loan Facility (including the impacts of the interest rate swaps), the 2022 Term Loan Facility and Standard Bank Term Loan Facility was 5.3%, 8.4% and 9.7%, respectively, during the three months ended March 31, 2023. As of March 31, 2024, the applicable margin on the Term Loan Facility, 2022 Term Loan Facility and 2023 Term Loan Facility was 2.50%, 3.25%, and 3.50%, respectively.
(2)The MGT loan is a related party debt facility. The average effective interest rate on the MGT loan was 6.0% during both the three months ended March 31, 2024 and March 31, 2023.

Long-Term Debt
On May 1, 2024, Tronox Finance LLC (the “Borrower”), Tronox Holdings plc (the “Company”), certain of the Company’s subsidiaries, the incremental term lender party thereto and HSBC Bank USA, National Association, as Administrative Agent and Collateral Agent, entered into Amendment No. 4 to the Amended and Restated First Lien Credit Agreement (the "2024 Amendment"). The 2024 Amendment provides the Borrower with a new five -year incremental term loan facility ("the 2024 Term Loan Facility") under its credit agreement in an aggregate initial principal amount of $741 million. The proceeds of the 2024 Term Loan Facility were used to repay in full the Company's outstanding 2022 Term Loan and 2023 Term Loan.
Short-Term Debt
Insurance premium financing
In August 2023, the Company entered into a $27 million insurance premium financing agreement with a third-party financing company. The financing balance requires a 33% down payment and will be repaid in monthly installments over 9 months at
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an 8% fixed annual interest rate. As of March 31, 2024, the financing balance was $4 million and is recorded in "Short-term debt" in the Condensed Consolidated Balance Sheet.
Debt Covenants
As of March 31, 2024, we are in compliance with all financial covenants in our debt facilities.
12.    Derivative Financial Instruments
Derivatives recorded on the Condensed Consolidated Balance Sheets:
The following table is a summary of the fair value of derivatives outstanding at March 31, 2024 and December 31, 2023:
Fair Value
March 31, 2024December 31, 2023
Assets(a) Accrued Liabilities Assets(a)Accrued Liabilities
Derivatives Designated as Cash Flow Hedges
Interest Rate Swaps $28 $ $18 $ 
Natural Gas Hedges$ $1 $ $1 
Total Hedges $28 $1 $18 $1 
Derivatives Not Designated as Cash Flow Hedges
Currency Contracts $1 $ $1 $1 
Total Derivatives $29 $1 $19 $2 
(a) At March 31, 2024 and December 31, 2023, current assets of $29 million and $19 million, respectively, are recorded in prepaid and other current assets on the Condensed Consolidated Balance Sheets.
Derivatives' Impact on the Condensed Consolidated Statement of Operations:
The following table summarizes the impact of the Company's derivatives on the unaudited Condensed Consolidated Statement of Operations:
Amount of Pre-Tax Gain (Loss) Recognized in Earnings Amount of Pre-Tax Gain (Loss) Recognized in Earnings
Cost of Goods SoldOther (expense) income, netCost of Goods SoldOther (expense) income, net
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Derivatives Not Designated as Hedging Instruments
Currency Contracts$ $(6)$ $(7)
Derivatives Designated as Hedging Instruments
Currency Contracts $ $ $(2)$ 
Natural Gas Hedges$(1)$ $(1)$ 
Total Derivatives $(1)$(6)$(3)$(7)
Interest Rate Risk
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As of March 31, 2024, the Company maintains a total of $950 million of interest rate swaps with the objective in using the interest-rate swap agreements to add stability to interest expense and to manage the Company's exposure to interest rate movements. These interest rate swaps have been designated as cash flow hedges and involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Fair value gains or losses on these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into interest expense in the same periods during which the hedged transactions affect earnings.
At March 31, 2024 and December 31, 2023, the net unrealized gain of $28 million and the unrealized gain of $18 million, respectively, was recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet. For the three months ended March 31, 2024, the amounts recorded in interest expense related to the interest-rate swap agreements were $8 million, of which $2 million for each period was reclassified from "Accumulated other comprehensive loss" to interest expense. For the three months ended March 31, 2023, the net amounts recorded in interest expense related to the interest-rate swap agreements were $4 million.
Foreign Currency Risk
From time to time, we enter into foreign currency contracts used to hedge forecasted third party non-functional currency sales for our South African subsidiaries and forecasted non-functional currency cost of goods sold for our Australian subsidiaries. Historically, we have used a combination of zero-cost collars or forward contracts to reduce the exposure.  These foreign currency contracts are designated as cash flow hedges. Changes to the fair value of these foreign currency contracts are recorded as a component of other comprehensive (loss) income, if these contracts remain highly effective, and are recognized in net sales or costs of goods sold in the period in which the forecasted transaction affects earnings or are recognized in other (expense) income, net when the transactions are no longer probable of occurring. As of March 31, 2024, we had no outstanding amounts to reduce the exposure of our Australian subsidiaries’ cost of sales to fluctuations in currency rates or to reduce the exposure of our South African subsidiaries' third party sales to fluctuations in currency rates. At December 31, 2022, there was an unrealized net loss of $4 million recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet, of which $2 million was recognized in earnings during the three months ended March 31, 2023.
From time to time, we enter into foreign currency contracts for the South African Rand, Australian Dollar, Euro, Pound Sterling, and Saudi Riyal to reduce exposure of our subsidiaries’ balance sheet accounts not denominated in our subsidiaries’ functional currency to fluctuations in foreign currency exchange rates. Historically, we have used forward contracts to reduce the exposure.  For accounting purposes, these foreign currency contracts are not considered hedges. The change in fair value associated with these contracts is recorded in “Other (expense) income, net” within the unaudited Condensed Consolidated Statement of Operations and partially offsets the change in value of third party and intercompany-related receivables not denominated in the functional currency of the subsidiary. At March 31, 2024, there was (i) 971 million South African Rand (or approximately $51 million at March 31, 2024 exchange rate), (ii) 138 million Australian dollars (or approximately $90 million at the March 31, 2024 exchange rate), (iii) 48 million Pound Sterling (or approximately $61 million at the March 31, 2024 exchange rate), (iv) 7 million Euro (or approximately $8 million at the March 31, 2024 exchange rate), and (v) 88 million Saudi Riyal (or approximately $23 million at the March 31, 2024 exchange rate) of notional amounts of outstanding foreign currency contracts. At December 31, 2023, there was (i) 837 million South African Rand (or approximately $44 million at the March 31, 2024 exchange rate), (ii) 153 million Australian dollars (or approximately $100 million at the March 31, 2024 exchange rate), (iii) 45 million Pound Sterling (or approximately $57 million at the March 31, 2024 exchange rate), (iv) 45 million Euro (or approximately $49 million at the March 31, 2024 exchange rate) and (v) 67 million Saudi Riyal (or approximately $18 million at the March 31, 2024 exchange rate) of notional amounts of outstanding foreign currency contracts.
13.    Fair Value
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standards also have established a fair value hierarchy, which prioritizes the inputs to valuation techniques used in measuring fair value into three broad levels as follows:
Level 1 -Quoted prices in active markets for identical assets or liabilities
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Level 2 -Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly
Level 3 -Unobservable inputs based on the Company’s own assumptions
Our debt is recorded at historical amounts. The following table presents the fair value of our debt and derivative contracts at both March 31, 2024 and December 31, 2023:
March 31,
2024
December 31,
2023
AssetLiability AssetLiability
Term Loan Facility— 903 — 903 
2022 Term Loan Facility— 393 — 394 
2023 Term Loan Facility— 350 — 351 
Standard Bank Term Loan Facility— 60 — 64 
Senior Notes due 2029— 966 — 956 
Australian Government Loan— 1 — 1 
MGT Loan— 23 — 25 
Interest rate swaps28  18  
Natural gas hedges 1  1 
Foreign currency contracts1  1 1 
We determined the fair value of the Term Loan Facility, the 2022 Term Loan Facility, the 2023 Term Loan Facility, and the Senior Notes due 2029 using quoted market prices, which under the fair value hierarchy is a Level 1 input. We determined the fair value of the Standard Bank Term Loan Facility utilizing transactions in the listed markets for identical or similar liabilities, which under the fair value hierarchy is a Level 2 input. The fair value of the Australian Government Loan and MGT Loan is based on the contracted amount which is a Level 2 input.
We determined the fair value of the foreign currency contracts, natural gas hedges and the interest rate swaps using inputs other than quoted prices in active markets that are observable either directly or indirectly. The fair value hierarchy for the foreign currency contracts, natural gas hedges and interest rate swaps is a Level 2 input.
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term debt approximate fair value due to the short-term nature of these items.
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14.    Asset Retirement Obligations
Asset retirement obligations consist primarily of rehabilitation and restoration costs, landfill capping costs, decommissioning costs, and closure and post-closure costs. Activities related to asset retirement obligations were as follows:
Three Months Ended
March 31,
20242023
Beginning balance$186 $161 
Additions5 1 
Accretion expense5 4 
Remeasurement/translation(7)(2)
Other, including change in estimates (3)
Settlements/payments(1)(3)
Balance, March 31,$188 $158 
March 31, 2024December 31, 2023
Current portion included in “Accrued liabilities”$12 $14 
Noncurrent portion included in “Asset retirement obligations”176 172 
Asset retirement obligations$188 $186 
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15.    Commitments and Contingencies
Purchase and Capital CommitmentsIncludes obligations for purchase requirements of process chemicals, supplies, utilities and services entered into in the ordinary course of business. At March 31, 2024, purchase commitments were $280 million for the remainder of 2024, $170 million for 2025, $161 million for 2026, $157 million for 2027, $286 million for 2028, and $1,431 million thereafter.
Letters of Credit—At March 31, 2024, we had outstanding letters of credit and bank guarantees of $102 million, of which $63 million were letters of credit, of which $48 million is related to the sale of Hawkins Point as discussed below, and $39 million were bank guarantees. Amounts for performance bonds were not material.
Environmental Matters—It is our policy to record appropriate liabilities for environmental matters when remedial efforts are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flows. The timing of cash expenditures depends principally on the timing of remedial investigations and feasibility studies, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties.  Included in these environmental matters is the following:
Hawkins Point Plant.  Residual waste mud, known as Batch Attack Mud, and a spent sulfuric waste stream were deposited in an onsite repository (the “Batch Attack Lagoon”) at a former TiO2 manufacturing site, Hawkins Point Plant in Baltimore, Maryland, operated by Cristal USA, Inc. from 1954 until 2011. We assumed responsibility for remediation of the Hawkins Point Plant when we acquired the TiO2 business of Cristal in April 2019. On December 21, 2022, we sold the Hawkins Point Plant to the Maryland Port Administration ("MPA"), a state agency controlled by the Maryland Department of Transportation. Pursuant to the terms of the transaction, MPA became the lead party in developing and implementing appropriate measures to address, treat, control, and mitigate the environmental conditions at the property under the regulatory oversight of the Maryland Department of the Environment ("MDE"). Under MPA ownership, the Hawkins Point Plant will be utilized for storage and beneficial reuse of dredged material from the Port of Baltimore. In exchange for transferring ownership of the site to MPA, Tronox has agreed to make scheduled, annual payments to MPA which together with scheduled, annual contributions from MPA will be used to remediate the property. The sale of the property to MPA did not have a material impact to the Consolidated Statement of Operations. As of March 31, 2024, we have a provision of $42 million included in "Environmental liabilities" in our Condensed Consolidated Balance Sheet for the Hawkins Point Plant consistent with the accounting policy described above.
Other Matters—We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, prior acquisitions and divestitures, including our acquisition of Cristal, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:
UK Health and Safety Matter. In February 2024, we received a summons from the UK Health and Safety Executive alleging non-compliance with UK health and safety legislation at the Stallingborough pigment plant resulting from an incident involving an employee in August 2022. Based on our current understanding, we do not believe the enforcement action with regards to this incident will have a material adverse effect on our business, financial condition and results of operations.
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16.    Accumulated Other Comprehensive Loss Attributable to Tronox Holdings plc and Other Equity Items
The tables below present changes in accumulated other comprehensive loss by component for the three months ended March 31, 2024 and 2023.
Cumulative
Translation
Adjustment
Pension
Liability
Adjustment
Unrealized
Gains
(Losses) on
Hedges
Total
Balance, January 1, 2024$(729)$(92)$7 $(814)
Other comprehensive (loss) income(40) 10 (30)
Amounts reclassified from accumulated other comprehensive loss  (1)(1)
Balance, March 31, 2024$(769)$(92)$16 $(845)

Cumulative
Translation
Adjustment
Pension
Liability
Adjustment
Unrealized
Gains
(Losses) on
Hedges
Total
Balance, January 1, 2023$(710)$(78)$20 $(768)
Other comprehensive (loss) income(15)1 (6)(20)
Amounts reclassified from accumulated other comprehensive loss  3 3 
Balance, March 31, 2023$(725)$(77)$17 $(785)
Repurchase of Common Stock
On February 21, 2024, in connection with the expiration in February 2024 of the Company's previous share repurchase program, the Company's Board of Directors authorized the repurchase of up to $300 million of the Company's stock through February 21, 2027. During the three months ended March 31, 2024, we made no repurchases of the Company's stock.
17.    Share-Based Compensation
Restricted Share Units (“RSUs”)
2024 Grant - During the three months ended March 31, 2024, the Company granted both time-based and performance-based awards to certain members of management. A total of 806,893 of time-based awards were granted to management which will vest ratably over a three-year period ending March 5, 2027. A total of 806,900 of performance-based awards were granted, of which 403,450 of the awards vest based on a relative Total Shareholder Return ("TSR") calculation and 403,450 of the awards vest based on certain performance metrics of the Company. The non-TSR performance-based awards vest on March 5, 2027 based on the actual 2026 annual return on invested capital (ROIC). Similar to the Company's historical TSR awards granted in prior years, the TSR awards vest based on the Company's three-year TSR versus the peer group performance levels. Given these terms, the TSR metric is considered a market condition for which we used a Monte Carlo simulation to determine the weighted average grant date fair value of $21.68. The following weighted average assumptions were utilized to value the TSR grants:
2024
Dividend yield %
Expected historical volatility47.9 %
Risk free interest rate4.46 %
Expected life (in years)3
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The unrecognized compensation cost associated with all unvested awards at March 31, 2024 was $46 million, adjusted for estimated forfeitures, which is expected to be recognized over a weighted-average period of approximately 2.3 years.
During both the three months ended March 31, 2024 and 2023, we recorded $6 million of stock compensation expense.
18.    Pension and Other Postretirement Healthcare Benefits
The components of net periodic cost associated with our U.S. and foreign pension plans recognized in the unaudited Condensed Consolidated Statements of Operations were as follows:
Pensions
Three Months Ended March 31,
20242023
Net periodic cost:
Service cost$1 $1 
Interest cost4 4 
Expected return on plan assets(5)(5)
Total net periodic cost$ $ 
The components of net periodic cost associated with our postretirement healthcare plans recognized in the unaudited Condensed Consolidated Statements of Operations were as follows:
Other Postretirement Benefit Plans
Three Months Ended March 31,
20242023
Net periodic cost:
Interest cost1 1 
Total net periodic cost$1 $1 
During the three months ended March 31, 2024, the Company made contributions to its pension plans of $1 million. The Company expects to make approximately $7 million of pension contributions for the remainder of 2024.
For the three months ended March 31, 2024 and 2023, we contributed $1 million and $1 million, respectively, to the Netherlands Multiemployer Plan, which was primarily recognized in “Cost of goods sold” in the unaudited Condensed Consolidated Statement of Operations.
19.    Related Parties
Tasnee / Cristal
At March 31, 2024, Cristal International Holdings B.V. (formerly known as Cristal Inorganic Chemical Netherlands Cooperatief W.A.), a subsidiary of Tasnee, continues to own 37,580,000 shares of Tronox, or a 24% ownership interest.
On May 9, 2018, we entered into an Option Agreement with AMIC which is owned equally by Tasnee and Cristal. Under the terms of the Option Agreement, AMIC granted us an option (the “Option”) to acquire 90% of a special purpose vehicle (the “SPV”), to which AMIC’s ownership in a titanium slag smelter facility (the “Slagger”) in The Jazan City for Primary and Downstream Industries in KSA will be contributed together with $322 million of AMIC indebtedness (the “AMIC Debt”). The AMIC Debt would remain outstanding debt of the SPV upon exercise of the Option. The Option may be exercised if the Slagger achieves certain production criteria related to sustained quality and tonnage of slag produced (the “Option Criteria”). Likewise, AMIC may require us to acquire the Slagger on the same terms if the Option Criteria are satisfied. Furthermore,
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pursuant to the Option Agreement we lent AMIC $125 million for capital expenditures and operational expenses to facilitate the start-up of the Slagger (the “Tronox Loans”).
On May 13, 2020, we amended the Option Agreement (the "First Amendment") with AMIC to address circumstances in which the Option Criteria cannot be satisfied. Pursuant to the First Amendment, Tronox has the right to acquire the SPV in exchange for (i) our forgiveness of the Tronox Loans principal and accrued interest thereon, and (ii) the SPV's assumption of $36 million of indebtedness plus accrued interest thereon lent by AMIC to the SPV. Under the First Amendment, the SPV would not assume any of the AMIC Debt.
On May 10, 2023, AMIC and Tronox further amended the Option Agreement (the “Second Amendment”). In the Second Amendment the parties acknowledged that the Option expired on May 10, 2023 without being exercised but agreed to continue negotiating until September 30, 2023 (the "Renegotiation Period") as to whether, and under what circumstances, Tronox may acquire the Slagger. Subsequent to September 30, 2023, the parties continued to negotiate as to whether, and under what circumstances, Tronox may acquire the Slagger and on February 21, 2024 the parties again amended the Option Agreement (the “Third Amendment”), which extended the Renegotiation Period until the earlier of the repayment of the Tronox Loans or December 31, 2024, subject to certain early termination rights. The Third Amendment also provided that from the date the parties entered into the Second Amendment and through December 31, 2023, all chloride slag produced by the Slagger was delivered to Tronox as repayment in-kind of the Tronox Loans at a price based on a widely published index for feedstock less a nominal discount (the “Slag Price”). Thereafter and until the end of the Renegotiation Period, 65% of all chloride slag produced by the Slagger will be delivered to Tronox as repayment in-kind of the Tronox Loans based on the Slag Price and Tronox will purchase via cash settlements the remaining 35% at the Slag Price. Full repayment of the Tronox Loans is required by January 2025 in either cash or in-kind through chloride slag deliveries. During July 2023, we also entered into an agreement with AMIC to act as their sales agent with regard to sales of slag fines to customers outside of the Kingdom of Saudi Arabia for an agreed upon commission fee to be paid.
The following table shows the outstanding balance of the Tronox Loans, which at March 31, 2024 and December 31, 2023, is recorded on the unaudited Condensed Consolidated Balance Sheet in "Prepaid and other assets" and "Other long-term assets," respectively:
March 31, 2024December 31, 2023
Principal balance6580
Accrued interest income balance1012
Total outstanding balance7592
The following table shows the interest income earned on the Tronox Loans, which is recorded in "Interest income" on our unaudited Condensed Consolidated Statement of Operations:
Three Months Ended March 31,
20242023
Interest income11
The following table shows the amount of feedstock purchased from the Slagger, which is subsequently recorded in "Cost of goods sold" on our unaudited Condensed Consolidated Statement of Operations:
Three Months Ended
March 31,
20242023
Settled as in-kind repayment of Tronox Loans16  
Settled in cash8 43 
Total chloride slag purchases24 43 
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The following table shows the amounts due to AMIC at period-end regarding the purchase feedstock purchased from the Slagger, which are recorded in "Accrued liabilities" on our unaudited Condensed Consolidated Balance Sheet:
March 31, 2024December 31, 2023
Amount due to AMIC for slag purchases8  
In addition, on March 15, 2018 Tronox and AMIC entered into a Technical Services Agreement (the "Original Technical Services Agreement"), which was subsequently amended on May 13, 2020, May 10, 2023 and February 21, 2024 (the "Restated Technical Services Agreement"). Through September 30, 2023 we provided technical advice and project management services, however AMIC and its consultants were still responsible for engineering and construction of the Slagger. As compensation for these services, Tronox received certain fees, including a management fee. In the unaudited Condensed Consolidated Statement of Operations and shown in the table below, the management fees per the Original Technical Services Agreement were recorded within "Other (expense) income, net." From and after October 1, 2023, we no longer receive a management fee and the scope of services we provide is more limited, for which we receive cost reimbursement plus a nominal margin.
Three Months Ended
March 31,
20242023
Management fees2
Outstanding balances for these fees receivable are shown below, which are recorded within “Prepaid and other assets” on the unaudited Condensed Consolidated Balance Sheet:
March 31, 2024December 31, 2023
Management fees and other technical support fees1
On December 29, 2019, we entered into an agreement with Cristal to acquire certain assets co-located at our Yanbu facility which produces metal grade TiCl4 ("MGT"). Consideration for the acquisition is the assumption by Tronox of a $36 million note payable to Cristal (the "MGT Loan"). MGT is used at a titanium "sponge" plant facility, 65% of the ownership interests of which are held by Advanced Metal Industries Cluster and Toho Titanium Metal Co. Ltd ("ATTM"), a joint venture between AMIC and Toho Titanium Company Ltd. ATTM uses the TiCl4, which we supply by pipeline, for the production of titanium sponge, a precursor material used in the production of titanium metal.
On December 17, 2020 we completed the MGT transaction. Repayment of the $36 million note payable is based on a fixed U.S. dollar amount per metric ton quantity of MGT delivered by us to ATTM over time and therefore the ultimate maturity date is variable in nature. If ATTM fails to purchase MGT from us under certain contractually agreed upon conditions, then at our election we may terminate the MGT supply agreement with ATTM and we will no longer owe any amount under the loan agreement with Cristal. We currently estimate the ultimate maturity to be between approximately four and five years, subject to actual future MGT production levels. The interest rate on the note payable is based on the SAIBOR plus a premium. The note payable is recorded within "Long-term debt, net" and "Long-term debt due within one year" on the unaudited Condensed Consolidated Balance Sheet.

March 31, 2024December 31, 2023
Note payable, due within 1 year77
Note payable, due longer than 1 year from now1618
Total outstanding note payable2325

Amounts regarding loan repayments for the MGT loan, which are recorded on the unaudited Condensed Consolidated Statement of Operations within “Net sales,” are shown below:
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Three Months Ended
March 31,
20242023
Loan Repayment via MGT delivered to ATTM21

As a result of these transactions we have entered into related to the MGT assets, Tronox purchases chlorine gas from ATTM for use in the production of MGT and such transactions are reflected as follows:
Three Months Ended
March 31,
20242023
Purchases of chlorine gas11

These purchases are subsequently recorded within “Cost of goods sold” on the unaudited Condensed Consolidated Statement of Operations. Amounts due at period end, which are presented below, are recorded within “Accrued liabilities” on the unaudited Condensed Consolidated Balance Sheet.
March 31, 2024December 31, 2023
Amount due related to purchases of chlorine gas11

As Tronox delivers MGT product to ATTM, amounts are recorded within “Net sales” on the unaudited Condensed Consolidated Statement of Operations, as shown below:
Three Months Ended
March 31,
20242023
MGT sales made to ATTM as product is delivered1311

Amounts related to MGT deliveries that are outstanding at period end are recorded in “Prepaid and other assets” on the unaudited Condensed Consolidated Balance Sheet, as shown below:
March 31, 2024December 31, 2023
Due from ATTM for MGT deliveries89
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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with Tronox Holdings plc’s unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023. This discussion and other sections in this Quarterly Report on Form 10-Q contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, and actual results could differ materially from those discussed in the forward-looking statements as a result of numerous factors. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements also can be identified by words such as “future”, “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “predicts”, “will”, “would”, “could”, “can”, “may”, and similar terms.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains certain financial measures, in particular the presentation of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, which are not presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). We are presenting these non-U.S. GAAP financial measures because we believe they provide us and readers of this Form 10-Q with additional insight into our operational performance relative to earlier periods and relative to our competitors. We do not intend for these non-U.S. GAAP financial measures to be a substitute for any U.S. GAAP financial information. Readers of these statements should use these non-U.S. GAAP financial measures only in conjunction with the comparable U.S. GAAP financial measures. A reconciliation of net income to EBITDA and Adjusted EBITDA is also provided herein.
Overview
Tronox Holdings plc (referred to herein as "Tronox", the "Company", "we", "us", or "our") operates titanium-bearing mineral sand mines and beneficiation operations in Australia and South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high purity titanium chemicals, including titanium tetrachloride, and Ultrafine© titanium dioxide used in certain specialty applications. Our strategy is to be vertically integrated and produce enough feedstock materials to be as self-sufficient as possible in the production of TiO2 at our nine TiO2 pigment facilities located in the United States, Australia, Brazil, UK, France, the Netherlands, China and the Kingdom of Saudi Arabia (“KSA”). We believe that vertical integration is the best way to achieve our ultimate goal of delivering low cost, high-quality pigment to our coatings and other TiO2 customers throughout the world. The mining, beneficiation and smelting of titanium bearing mineral sands creates meaningful quantities of zircon, pig iron and the rare-earth bearing mineral, monazite, which we also supply to customers around the world.
We are a public limited company listed on the New York Stock Exchange and are registered under the laws of England and Wales.
Business Environment
The following discussion includes trends and factors that may affect future operating results:
First quarter revenue increased 9% compared to the prior year, driven by higher sales volumes of TiO2 and zircon. For the first quarter of 2024 as compared to the first quarter of 2023, TiO2 volumes increased 18% whereas TiO2 average selling prices declined 10% including product mix impact. Zircon volumes increased 43% partially offset by a decline of 21% in average selling prices. Revenue from other products increased 7% from the first quarter of 2023 to the first quarter of 2024 primarily due to increased volumes across various products. Gross profit decreased for the first quarter of 2024 as compared to the first quarter of 2023 due to the unfavorable impact of selling prices, including product mix partially offset by favorable impacts of sales volumes, improved absorption from higher production volumes and foreign currency.
Sequentially, revenue increased 13% in the first quarter of 2024 compared to the fourth quarter of 2023 primarily due to higher sales volumes of TiO2 and Zircon. TiO2 volumes increased 18% partially offset by a decrease of 1% in average selling prices, including product mix. Revenue from Zircon increased 54% sequentially driven by an increase of 54% in sales volumes while pricing remained flat to the prior quarter. Other product revenues decreased 26% from the fourth quarter of 2023 to the first quarter of 2024 mainly due to the opportunistic sales of ilmenite and a portion of a rare earths tailings deposit in South Africa that occurred in the fourth quarter of 2023, but did not repeat in the first quarter of 2024. Gross profit
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increased from the fourth quarter of 2023 to the first quarter of 2024 primarily due to higher sales volumes partially offset by lower average selling prices of TiO2, Zircon and pig iron. Gross profit was also favorably impacted by improved absorption from higher production volumes and the absence of non-repeating charges in the fourth quarter of 2023.
As of March 31, 2024, our total available liquidity was $629 million, including $152 million in cash and cash equivalents and $477 million available under revolving credit agreements. As of March 31, 2024, our total debt was $2.8 billion and net debt to trailing-twelve month Adjusted EBITDA was 5.2x with approximately 64% of our interest rates fixed through 2028. The Company has no financial covenants on its term loan or bonds and only one springing financial covenant on its Cash Flow Revolver, which we do not expect to be triggered based on our current scenario planning. Refer to Note 11 of notes to condensed consolidated financial statements for further details.
Condensed Consolidated Results of Operations
Three Months Ended March 31, 2024 compared to the Three Months Ended March 31, 2023
Three Months Ended March 31,
20242023Variance
Net sales$774 $708 $66 
Cost of goods sold654 575 79 
Gross profit120 133 (13)
Gross Margin15.5 %18.8 %(3.3) pts
Selling, general and administrative expenses79 71 
Income from operations41 62 (21)
Interest expense(42)(33)(9)
Interest income
Other (expense) income, net(1)(3)
Income before income taxes34 (32)
Income tax provision(11)(9)(2)
Net (loss) income$(9)$25 $(34)
Effective tax rate550 %26 %
EBITDA (1)
$112 $135 $(23)
Adjusted EBITDA (1)
$131 $146 $(15)
Net (loss) income as a % of Net Sales(1.2)%3.5 %(4.7) pts
Adjusted EBITDA as % of Net Sales16.9 %20.6 %(3.7) pts
_______________
(1)EBITDA and Adjusted EBITDA are Non-U.S. GAAP financial measures. Please refer to the “Non-U.S. GAAP Financial Measures” section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of these measures and a reconciliation of these measures to Net (loss) income.
Net sales of $774 million for the three months ended March 31, 2024 increased by 9%, compared to $708 million for the same period in 2023. The increase is primarily due to higher sales volumes of TiO2 and Zircon.
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Net sales by type of product for the three months ended March 31, 2024 and 2023 were as follows:
Three Months Ended March 31,
20242023VariancePercentage
TiO2
$605 $560 $45 %
Zircon88 72 16 22 %
Other products81 76 %
Total net sales$774 $708 $66 %
For the three months ended March 31, 2024, TiO2 revenue was higher by 8% or $45 million compared to the prior year quarter primarily due to an increase of $102 million in sales volumes partially offset by a decrease of $59 million in average selling prices, including product mix. Foreign currency positively impacted TiO2 revenue by $2 million primarily due to the strengthening of the Euro. Zircon revenue increased $16 million primarily due to a 43% increase in sales volumes partially offset by a 21% decrease in average selling prices. Other products revenues increased $5 million from the year-ago quarter primarily due to increased volumes across various products.
Gross profit of $120 million was 15.5% of net sales compared to 18.8% of net sales in the year-ago quarter. The decrease in gross margin is primarily due to:
the unfavorable impact of 9 points primarily due to a decrease in TiO2 and Zircon selling prices, including product mix, partially offset by
the favorable impact of 2 points due to changes in foreign exchange rates, primarily as a result of the South African Rand and Australian dollar,
the favorable impact of 2 points due to zircon volume growth substantially exceeding TiO2 volume growth during the comparable period, and
the favorable impact of 1 point due to improved absorption from higher production volumes.

Selling, general and administrative expenses increased by $8 million or 11% during the three months ended March 31, 2024 compared to the same period of the prior year primarily driven by a $6 million increase in employee costs. The remaining net increase was driven by individually immaterial amounts.

Income from operations for the three months ended March 31, 2024 was $41 million compared to $62 million in the prior year period. The decrease of $21 million was primarily due to the lower selling prices of TiO2 and Zircon as well as higher SG&A expenses as discussed above.
Adjusted EBITDA as a percentage of net sales was 16.9% for the three months ended March 31, 2024 as compared to 20.6% from the prior year primarily due to the lower gross margin as a result of lower selling prices as discussed above.
Interest expense for the three months ended March 31, 2024 increased by $9 million compared to the same period of 2023 primarily due to the increase in the effective interest rates on our long-term debt facilities and higher average outstanding debt balances period over period.
Other (expense) income, net for the three months ended March 31, 2024 primarily consisted of approximately $3 million of fees associated with the utilization of the Securitization Facility partially offset by $2 million of net realized and unrealized foreign currency gains. The remaining amount was driven by other individually immaterial amounts.
We continue to maintain full valuation allowances related to the total net deferred tax assets in Australia and the United Kingdom.  The provisions for income taxes associated with these jurisdictions include no tax benefits with respect to losses incurred and tax expense only to the extent of current tax payments. Additionally, we have valuation allowances against other specific tax assets.
The effective tax rate was 550% and 26% for the three months ended March 31, 2024 and 2023, respectively. The effective tax rates for the three months ended March 31, 2024 and 2023 are impacted by a variety of factors including income and losses in jurisdictions with valuation allowances, non-taxable income and expense items, prior year accruals, and our jurisdictional mix of income at tax rates different than the U.K. statutory rate.
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Other Comprehensive Loss
Other comprehensive loss was $32 million in the three months ended March 31, 2024 as compared to other comprehensive loss of $15 million in the three months ended March 31, 2023. The change is primarily due to the unfavorable foreign currency translation adjustments of $41 million in the three months ended March 31, 2024 as compared to unfavorable foreign currency translation adjustments of $13 million in the prior year period. In addition, we recognized a net gain on derivative instruments of $9 million in the three months ended March 31, 2024 as compared to a net loss on derivative instruments of $3 million in the prior year period.
Liquidity and Capital Resources
The following table presents our liquidity as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
(Millions of U.S. dollars)
Cash and cash equivalents$152 $273 
Available under the Cash Flow Revolver335 343 
Available under the Standard Credit Facility 53 55 
Available under the Emirates Revolver63 64 
Available under the SABB Facility20 20 
Available under the Bank Itau Facility$$
Total$629 $761 
Historically, we have funded our operations and met our commitments through cash generated by operations, issuance of unsecured notes, bank financings and borrowings under lines of credit. In the next twelve months, we expect that our operations will provide sufficient cash for our operating expenses, capital expenditures, interest payments and debt repayments, however, if necessary, we have the ability to borrow under our short-term credit facilities (see Note 11 of notes to consolidated financial statements). This is predicated on our achieving our forecast which could be negatively impacted by items outside of our control, including, among other things, macroeconomic conditions, inflationary pressures, political instability including the ongoing Russia and Ukraine and Middle East conflicts and any expansion of such conflicts, and supply chain disruptions. If negative events occur in the future, we may need to reduce our capital spend, cut back on operating costs and other items within our control to maintain adequate liquidity.
Working capital (calculated as current assets less current liabilities) was $1.5 billion at March 31, 2024 and $1.4 billion at December 31, 2023.
As of March 31, 2024, the non-guarantor subsidiaries of our Senior Notes due 2029 represented approximately 17% of our total consolidated liabilities and approximately 40% of our total consolidated assets. For the three months ended March 31, 2024, the non-guarantor subsidiaries of our Senior Notes due 2029 represented approximately 45% of our total consolidated net sales. For the three months ended March 31, 2024, the non-guarantor subsidiaries of our Senior Notes due 2029 represented approximately 44% of our consolidated EBITDA (as such term is defined in the 2029 Indenture). In addition, as of March 31, 2024, our non-guarantor subsidiaries had $699 million of total consolidated liabilities (including trade payables but excluding intercompany liabilities), all of which would have been structurally senior to the 2029 Notes. See Note 11 of notes to unaudited condensed consolidated financial statements.
At March 31, 2024, we had outstanding letters of credit and bank guarantees of $102 million. See Note 15 of notes to unaudited condensed consolidated financial statements.
Principal factors that could affect our ability to obtain cash from external sources include (i) debt covenants that limit our total borrowing capacity; (ii) increasing interest rates applicable to our floating rate debt; (iii) increasing demands from third parties for financial assurance or credit enhancement; (iv) credit rating downgrades, which could limit our access to additional debt; (v) a decrease in the market price of our common stock and debt obligations; and (vi) volatility in public debt and equity markets.
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During the three months ended March 31, 2024, our credit rating with Moody’s remained unchanged at Ba3 stable outlook. Our Standard & Poor's rating and outlook remained the same at B positive and stable, respectively. See Note 11 of notes to unaudited condensed consolidated financial statements.
Cash and Cash Equivalents
We consider all investments with original maturities of three months or less to be cash equivalents. As of March 31, 2024, our cash and cash equivalents were invested in money market funds and we also receive earnings credits for some balances left in our bank operating accounts. We maintain cash and cash equivalents in bank deposit and money market accounts that may exceed federally insured limits. The financial institutions where our cash and cash equivalents are held are highly rated and geographically dispersed, and we have a policy to limit the amount of credit exposure with any one institution. We have not experienced any losses in such accounts and believe we are not exposed to significant credit risk.
The use of our cash includes payment of our operating expenses, capital expenditures, servicing our interest and debt repayment obligations, cash taxes, making pension contributions and making quarterly dividend payments. Going forward, we expect to continue to invest in our businesses through cost reduction, as well as growth and vertical integration-related capital expenditures including projects such as newTRON and various mine development projects, continued reductions in our debt, continued dividends and share repurchases.
Repatriation of Cash
At March 31, 2024, we held $152 million in cash and cash equivalents in these respective jurisdictions: $19 million in Europe, $35 million in the United States, $32 million in Australia, $22 million in Brazil, $18 million in South Africa, $10 million in Saudi Arabia, $15 million in China and $1 million in India. Our credit facilities limit transfers of funds from subsidiaries in the United States to certain foreign subsidiaries.
At March 31, 2024, Tronox Holdings plc had foreign subsidiaries with undistributed earnings. Although we would not be subject to income tax on these earnings, we have asserted that amounts in specific jurisdictions are indefinitely reinvested outside of the parent's taxing jurisdictions. These amounts could be subject to withholding tax if distributed, but the Company has made no provision for tax related to these undistributed earnings. In 2022, the Company removed its assertion that earnings in China are indefinitely reinvested, and since then, the withholding tax accruals for potential repatriations from that jurisdiction are reflected in the effective tax rate.
Stock Repurchases
On February 21, 2024, in connection with the expiration in February 2024 of the Company's previous share repurchase program, the Company's Board of Directors authorized the repurchase of up to $300 million of the Company's stock through February 21, 2027. During the three months ended March 31, 2024, we made no repurchases of the Company's stock.
Debt Obligations
At March 31, 2024 and December 31, 2023, our long-term debt, net of unamortized discount and debt issuance costs was $2.8 billion and $2.8 billion, respectively. At March 31, 2024 and December 31, 2023, our net debt (the excess of our debt over cash and cash equivalents) was $2.7 billion and $2.6 billion, respectively. See Note 11 of notes to unaudited condensed consolidated financial statements.
On May 1, 2024, Tronox Finance LLC (the “Borrower”), Tronox Holdings plc (the “Company”), certain of the Company’s subsidiaries, the incremental term lender party thereto and HSBC Bank USA, National Association, as Administrative Agent and Collateral Agent, entered into Amendment No. 4 to the Amended and Restated First Lien Credit Agreement (the "2024 Amendment"). The 2024 Amendment provides the Borrower with a new five -year incremental term loan facility ("the 2024 Term Loan Facility") under its credit agreement in an aggregate initial principal amount of $741 million. The proceeds of the 2024 Term Loan Facility were used to repay in full the Company's outstanding 2022 Term Loan and 2023 Term Loan.
Off-Balance Sheet Arrangements
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On March 15, 2022, the Company entered into an accounts receivable securitization program (“Securitization Facility”) with a financial institution, through our wholly owned special purpose bankruptcy-remote subsidiary, Tronox Securitization LLC (“SPE”). The Securitization Facility permitted the SPE to sell accounts receivable up to $75 million.
In November 2022, the Company amended the receivable purchase agreement to expand the program to include receivables generated by its wholly-owned Australian operating subsidiaries, Tronox Pigment Pty Ltd., Tronox Pigment Bunbury Ltd. and Tronox Mining Australia Ltd. which increased the facility limit to $200 million and to extend the program term to November 2025.
In June 2023, the Company entered into an additional amendment (the “Second Amendment”) to further include receivables generated by our wholly-owned European operating subsidiaries Tronox Pigment Holland BV and Tronox Pigment UK Limited. Neither the facility limit nor the program term were changed as result of the Second Amendment, and remain at $200 million and November 2025, respectively.
In March 2024, we entered into a Securitization Facility technical amendment (the "Third Amendment"), to increase the percentage of certain receivables eligible for sale to the Purchaser. In April 2024, we again amended the Securitization Facility (the "Fourth Amendment"), to increase the Facility Limit from $200 million to $230 million. The Fourth Amendment did not impact the three months ended March 31, 2024.
See “Note 5 – Accounts Receivable Securitization Program” in notes