Core Viewpoint - Algoma Steel Group Inc. is set to release its first quarter financial results for 2025 on April 29, 2025, followed by a conference call on April 30, 2025, to discuss the results and recent developments [1][2]. Company Overview - Algoma Steel, based in Sault Ste. Marie, Ontario, is a leading Canadian producer of hot and cold rolled steel products, including sheet and plate [3]. - The company aims to provide customer-driven product solutions across various sectors such as automotive, construction, energy, defense, and manufacturing [3]. - Algoma is the only producer of discrete plate products in Canada and operates one of the lowest-cost hot rolled sheet steel producers in North America through its Direct Strip Production Complex [3]. Transformation and Sustainability - Algoma is undergoing a transformation by modernizing its plate mill and adopting electric arc technology, which focuses on recycling and environmental stewardship to reduce carbon emissions significantly [4]. - The company is committed to investing in its workforce and processes to become a leading producer of green steel in North America [4][5].

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA loss of CAD 60.3 million for Q4 2024, with cash used in operating activities amounting to CAD 76.9 million [14] - Total shipments for Q4 2024 reached 549,000 tons, a 6.3% increase compared to the same quarter last year, while net sales realization averaged CAD 976 per ton, down from CAD 1,079 per ton in the prior year [15] - For the full year 2024, the company shipped 2 million net tons, down from 2.1 million net tons in the previous year, with net sales realizations averaging CAD 1,107 per ton, a decrease of 5.6% [18] - Steel revenue for Q4 2024 was CAD 536 million, a decline of 3.8% year-over-year, while the cost per ton of steel products sold averaged CAD 1,032, similar to the prior year [16][19] Business Line Data and Key Metrics Changes - Plate shipments for Q4 2024 reached approximately 82,000 tons, up from 73,000 tons in Q3 2024, with expectations for Q1 2025 plate production to be directionally higher [5] - The company is dynamically adjusting its product mix between plate and coil products based on market conditions and contractual obligations, focusing on higher-margin products [6] Market Data and Key Metrics Changes - The company noted that the Canadian market is currently oversupplied with coil and undersupplied with plate, which may lead to price increases for plate products [37] - The implementation of tariffs on Canadian steel and aluminum imports has introduced uncertainty into the North American steel market, but the company expects a rational dialogue to restore normal trade [11] Company Strategy and Development Direction - The company is focused on completing its electric arc furnace (EAF) project, with first steel production expected in April 2025, which is anticipated to enhance operational efficiency and cost structure [8][25] - The transition to EAF steelmaking is seen as a long-term strategy to strengthen the company's position in the market and improve its ability to navigate uncertainties [11][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenging market conditions due to tariff uncertainty, soft demand, and other macroeconomic factors affecting customer behavior [4] - Despite these challenges, the company remains optimistic about the upcoming EAF operations and the potential for increased production and market share in the plate segment [25][72] Other Important Information - The cumulative investment for the EAF project was CAD 740 million as of December 31, 2024, with expectations to complete the project within 5% of the upper budget range [10] - The company expects to release approximately CAD 100 million of working capital from March 2024 to March 2025 [17] Q&A Session Summary Question: Clarification on the Blast Furnace outage duration and costs - The outage lasted a couple of days to a week due to extreme weather conditions, with no significant costs involved [31][32] Question: Impact of tariffs on EBITDA generation - The company indicated that with current pricing, it could break even or generate a small profit despite the 25% tariff on shipments to the US [34][35] Question: Canadian sheet prices and potential oversupply - The Canadian market is currently oversupplied with coil and undersupplied with plate, which may lead to price increases for plate products [37] Question: Mitigation strategies in response to tariffs - The company is focused on cost reduction initiatives and transitioning to EAF production as a primary strategy to lower costs [45][46] Question: Expected insurance payout and timing - The company expects around CAD 100 million from insurance, with CAD 20 to CAD 25 million anticipated in the next month [52][54] Question: Volume expectations for 2025 - The company anticipates total shipments for the year to be between 2.1 million to 2.2 million tons, with a focus on increasing plate production [98]

Core Insights - Algoma Steel Group Inc. reported its financial results for the three and nine month periods ended December 31, 2024, with a focus on its transformative Electric Arc Furnace (EAF) project, expecting first steel production in April 2025 [1][5][15]. Financial Performance - Consolidated revenue for Q4 2024 was $590.3 million, down from $615.4 million in Q4 2023 [6][7]. - The company experienced a consolidated loss from operations of $124.8 million in Q4 2024, compared to a loss of $36.9 million in the prior-year quarter [6][8]. - Net loss for Q4 2024 was $66.5 million, an improvement from a net loss of $84.8 million in Q4 2023, attributed to foreign exchange gains and changes in fair value of liabilities [6][9]. - Adjusted EBITDA for Q4 2024 was a loss of $60.3 million, compared to a loss of $1.0 million in the prior-year quarter, resulting in an Adjusted EBITDA margin of (10.2%) [6][10]. - Shipments increased by 6.3% to 548,802 tons in Q4 2024, compared to 516,068 tons in Q4 2023 [6][10]. Yearly Comparisons - For the full year 2024, revenue totaled $2,461.7 million, down from $2,852.6 million in 2023 [11]. - The company reported a consolidated loss from operations of $217.8 million for 2024, compared to income of $185.9 million in the prior year [12]. - Net loss for the full year 2024 was $139.0 million, compared to net income of $56.8 million in 2023 [13]. - Adjusted EBITDA for the full year 2024 was $22.3 million, significantly lower than $319.0 million in 2023, with an Adjusted EBITDA margin of 0.9% [14]. EAF Project Update - The EAF project is nearing its first arc milestone, with expectations for first steel production in April 2025 [5][15]. - As of December 31, 2024, the cumulative investment in the EAF project was $740.2 million, with contracted commitments totaling approximately $880 million [16]. - The transition to EAF steelmaking is anticipated to reduce annual carbon emissions by approximately 70% and match the facility's raw steel production capacity of about 3.7 million tons [17]. Market and Tariff Environment - The company is navigating ongoing macroeconomic uncertainties and tariff-related challenges impacting the North American steel market [5][18]. - Recent tariff actions by the U.S. government could have a material adverse impact on the company's financial position, although specific financial impacts are currently being assessed [18]. Liquidity Position - At the end of the quarter, the company had cash of $266.9 million and unused availability under its Revolving Credit Facility of $361.8 million [19]. Dividend Declaration - The Board declared a quarterly dividend of US$0.05 per share, payable on April 10, 2025 [20]. Conference Call Information - A conference call to discuss the results and recent events is scheduled for March 13, 2025 [21].

Core Viewpoint - Algoma Steel Group Inc. will release its financial results for the three and nine months ended December 31, 2024, on March 12, 2025, following a change in its fiscal year end from March 31 to December 31 [1] Financial Results Announcement - The financial results will be announced after market close on March 12, 2025, with a subsequent conference call scheduled for March 13, 2025, at 11:00 a.m. Eastern Time [1] - The conference call will include a review of the results, discussion of recent events, and a question-and-answer session [1] Company Overview - Algoma Steel is a fully integrated producer of hot and cold rolled steel products, including sheet and plate, based in Sault Ste. Marie, Ontario, Canada [3] - The company serves various sectors such as automotive, construction, energy, defense, and manufacturing, and is the only producer of discrete plate products in Canada [3] - Algoma's Direct Strip Production Complex is noted as one of the lowest-cost producers of hot rolled sheet steel in North America [3] Transformation and Sustainability Efforts - Algoma is modernizing its plate mill and adopting electric arc technology to lower carbon emissions and enhance environmental stewardship [4] - The company is focused on becoming one of North America's leading producers of green steel through investments in its people and processes [4] Community and Industry Position - As a founding industry in its community, Algoma aims to provide a secure steel supply and contribute to a sustainable future [5]

Core Viewpoint - Algoma Steel Group Inc. is actively participating in the BMO 34th Global Metals, Mining & Critical Minerals Conference, showcasing its commitment to the steel industry and its future initiatives [1]. Company Overview - Algoma Steel Group Inc. is based in Sault Ste. Marie, Ontario, Canada, and is a fully integrated producer of hot and cold rolled steel products, including sheet and plate [3]. - The company aims to deliver customer-driven product solutions across various sectors such as automotive, construction, energy, defense, and manufacturing [3]. - Algoma is the only producer of discrete plate products in Canada and operates one of the lowest-cost producers of hot rolled sheet steel in North America through its Direct Strip Production Complex [3]. Transformation and Sustainability - Algoma is undergoing a transformation journey by modernizing its plate mill and adopting electric arc technology, which emphasizes recycling and environmental stewardship to significantly reduce carbon emissions [4]. - The company is investing in its workforce and processes to position itself as one of North America's leading producers of green steel [4]. Community and Industry Position - As a founding industry in its community, Algoma leverages its rich steelmaking tradition to provide a secure steel supply and promote a sustainable future for North America [5].

Core Viewpoint - Algoma Steel Group Inc. is actively participating in the BMO 34th Global Metals, Mining & Critical Minerals Conference, showcasing its commitment to the steel industry and its future initiatives [1]. Company Overview - Algoma Steel Group Inc. is based in Sault Ste. Marie, Ontario, Canada, and is a fully integrated producer of hot and cold rolled steel products, including sheet and plate [3]. - The company aims to deliver customer-driven product solutions across various sectors such as automotive, construction, energy, defense, and manufacturing [3]. - Algoma is the only producer of discrete plate products in Canada and operates one of the lowest-cost producers of hot rolled sheet steel in North America through its Direct Strip Production Complex [3]. Transformation and Sustainability Initiatives - Algoma is undergoing a transformation journey by modernizing its plate mill and adopting electric arc technology, which emphasizes recycling and environmental stewardship to significantly reduce carbon emissions [4]. - The company is investing in its workforce and processes to position itself as one of North America's leading producers of green steel [4]. Community and Industry Position - As a foundational industry in its community, Algoma leverages its rich steelmaking tradition to provide a secure steel supply and promote a sustainable future for North America [5].

Core Viewpoint - Algoma Steel Group Inc. anticipates total steel shipments for Q4 2024 to be between 545,000 to 550,000 tons, with an expected Adjusted EBITDA loss ranging from CAD ($55) million to ($65) million, reflecting ongoing market challenges but solid operational execution in specific segments [2][3]. Company Overview - Algoma Steel Group Inc. is a leading Canadian producer of hot and cold rolled steel products, including sheet and plate, and is the only producer of discrete plate products in Canada [4]. - The company is based in Sault Ste. Marie, Ontario, and serves various sectors such as automotive, construction, energy, defense, and manufacturing [4]. Operational Highlights - The company reported solid operational execution in its plate business, with production continuing to rise despite macroeconomic uncertainties in the steel sector [3]. - The Electric Arc Furnace project has reached a significant milestone with the start of cold commissioning activities, and the company expects to produce its first steel by the end of Q1 2025 [3]. Strategic Initiatives - Algoma is undergoing a transformation to modernize its plate mill and adopt electric arc technology, aiming to significantly reduce carbon emissions and position itself as a leading producer of green steel in North America [5]. - The company emphasizes its commitment to environmental stewardship and recycling principles as part of its modernization efforts [5]. Market Position - Algoma is recognized for its ability to provide a secure steel supply and is focused on delivering customer-driven product solutions, enhancing its value proposition in the North American market [6].

Core Viewpoint - Algoma Steel Group Inc. is actively participating in the B. Riley Securities Energy Convergence Conference, showcasing its commitment to innovation and sustainability in steel production [1] Company Overview - Algoma Steel Group Inc. is based in Sault Ste. Marie, Ontario, Canada, and is a fully integrated producer of hot and cold rolled steel products, including sheet and plate [3] - The company aims to deliver customer-driven product solutions across various sectors such as automotive, construction, energy, defense, and manufacturing [3] - Algoma is the only producer of discrete plate products in Canada and operates one of the lowest-cost producers of hot rolled sheet steel in North America through its Direct Strip Production Complex [3] Transformation and Sustainability Efforts - Algoma is undergoing a transformation journey by modernizing its plate mill and adopting electric arc technology, which emphasizes recycling and environmental stewardship to significantly reduce carbon emissions [4] - The company is investing in its workforce and processes to become one of North America's leading producers of green steel [4] Community and Industry Position - As a founding industry in its community, Algoma leverages its rich steelmaking tradition to provide a secure steel supply and promote a sustainable future [5]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $4 million, reflecting an adjusted EBITDA margin of 0.6% [25] - Steel revenue was $539 million, down 19% compared to the prior year period [26] - Steel shipments totaled 520,000 net tons, a decrease of 5.2% year-over-year [26] - Net sales realization averaged $1,036 per ton, down 14.6% from the previous year [27] - Cash generated from operating activities was $25.4 million, with cash at quarter end of $452 million and total liquidity of approximately $800 million [26][28] Business Line Data and Key Metrics Changes - Plate shipments in Q2 2025 were approximately 73,000 tons, up from 61,000 tons in Q1 2025 [12] - Production was in line with expectations at approximately 90,000 tons [12] - The company aims to ramp up plate production towards an expected annual run rate capacity of over 650,000 net tons [13] Market Data and Key Metrics Changes - Market conditions remained challenging, with steel pricing touching year-to-date lows during the quarter [11] - The company was able to grow market share despite poor market conditions [13] - The North American steel market is experiencing depressed demand and pricing, particularly ahead of the U.S. election [30] Company Strategy and Development Direction - The company is focused on completing its transformative Electric Arc Furnace (EAF) project, with commissioning activities expected to start by the end of the calendar year [17] - The EAF project is expected to increase shipping capacity to approximately 3 million tons per year, a 35% increase from current production levels [18] - The company is committed to enhancing its environmental footprint and transitioning to greener steel production methods [32] Management's Comments on Operating Environment and Future Outlook - Management noted that current prices are expected to generate headwinds on earnings performance due to a lagging contract order book [31] - There is optimism that steel prices will improve post-election, supported by recent tariffs on Chinese steel and aluminum [30] - The company remains focused on operational safety, customer service, and capturing market opportunities as they arise [31] Other Important Information - The company announced a change in fiscal year-end from March 31 to December 31, starting this year [7] - Cumulative investment in the EAF project reached $672 million, with committed contracts totaling approximately $870 million [21] - The company expects to release at least $100 million of total working capital by March 2025 [28] Q&A Session Summary Question: Clarification on working capital buildup - The company expects a lower buildup of working capital due to the EAF start-up timing and existing inventory management [36][39] Question: Timing and total insurance proceeds - The company anticipates receiving over $60 million for property damage, with more than 50% of business interruption losses expected to be recovered [43][44] Question: Dilution from warrants - The maximum dilution is estimated at one-third if the share price reaches $18, due to the cashless settlement option [51][52] Question: Plate ramp strategy - The company is strategically rebuilding inventories rather than destabilizing the market, focusing on high-demand products [55] Question: EAF project budget changes - The company feels confident that the project budget will not change significantly, with most work contracted and tracking as expected [58][59] Question: Cost per ton trends - Costs are expected to trend slightly lower as the company stabilizes production and uses more of its own coking coal [60][62]

Core Insights - Algoma Steel Group Inc. reported a consolidated revenue of CAD 600.3 million for the fiscal second quarter ended September 30, 2024, a decrease from CAD 732.6 million in the prior-year quarter, primarily due to lower steel shipments and realized prices [2][4] - The company experienced a consolidated loss from operations of CAD 83.6 million, compared to an income of CAD 36.8 million in the prior-year quarter, and a net loss of CAD 106.6 million compared to a net income of CAD 31.1 million in the prior-year quarter [2][6] - Adjusted EBITDA was CAD 3.5 million with an adjusted EBITDA margin of 0.6%, significantly down from CAD 81.0 million and 11.1% in the prior-year quarter [2][7] Financial Performance - Revenue from steel was CAD 539.0 million, down from CAD 665.8 million in the prior-year quarter, with revenue per ton of steel sold decreasing to CAD 1,153 from CAD 1,334 [4] - Shipments totaled 520,443 tons, a decrease of 5.2% from 548,998 tons in the prior-year quarter [7] - Cash flows generated from operations were CAD 25.5 million, down from CAD 57.2 million in the prior-year quarter [2] Operational Developments - The company is on track to begin commissioning activities for its Electric Arc Furnace (EAF) project by the end of calendar 2024, with steel production expected by the end of the first quarter of 2025 [3][8] - The cumulative investment in the EAF project reached approximately CAD 672.3 million, with contracted commitments totaling around CAD 870 million [8][9] - Algoma's EAF project is eligible for reimbursement under Ontario's Emissions Performance Program, which is expected to reduce the project's net cash costs [9][10] Strategic Changes - Algoma announced a change in its fiscal year end from March 31 to December 31, effective December 31, 2024, to better align its reporting calendar with industry peers [13] - The company declared a quarterly dividend of US$0.05 per share, payable on December 27, 2024 [12] Balance Sheet and Liquidity - As of September 30, 2024, Algoma had cash of CAD 452.0 million and unused availability under its Revolving Credit Facility of CAD 342.8 million [11] - Total assets amounted to CAD 3,095.9 million, with total liabilities of CAD 1,682.1 million, resulting in shareholders' equity of CAD 1,413.8 million [25]