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]

Core Viewpoint - Algoma Steel Group Inc. is set to release its fiscal 2025 second quarter financial results on November 6, 2024, followed by a conference call on November 7, 2024, to discuss the results and recent events [1]. 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 producers of hot rolled sheet steel 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 [4]. - The company is committed to investing in its workforce and processes to become a leading producer of green steel in North America [4]. Community and Industry Position - As a foundational industry in its community, Algoma leverages its steelmaking tradition to provide a secure steel supply and promote a sustainable future [5].

Core Insights - Algoma Steel Group Inc. expects total steel shipments for fiscal 2025 second quarter to be between 510,000 to 520,000 tons, with Adjusted EBITDA projected to range from $5 million to negative $5 million, including an estimated recovery of insurance proceeds of approximately $20 million [1][2] Company Overview - Algoma Steel is a leading Canadian producer of hot and cold rolled steel sheet and plate products, based in Sault Ste. Marie, Ontario, and is the only producer of discrete plate products in Canada [3][4] - The company aims to deliver customer-driven product solutions across various sectors, including automotive, construction, energy, defense, and manufacturing [3] Operational Performance - The company’s operations are performing in line with expectations despite challenging market conditions for steel demand and pricing [2] - Algoma is on track with its Electric Arc Furnace (EAF) project, with commissioning activities expected to begin by the end of the calendar year, marking a significant step towards becoming one of the most environmentally sustainable steel producers in North America [2][4] Environmental Commitment - Algoma is modernizing its plate mill and adopting electric arc technology to significantly lower carbon emissions, emphasizing its commitment to recycling and environmental stewardship [4]

Core Points - Algoma Steel Group Inc. held its virtual annual meeting of shareholders on September 24, 2024, where all nominees for the board of directors were elected [1] - The appointment of Deloitte LLP as the Company's auditors for the 2024 fiscal year was approved by a majority of votes at the meeting [2] - A non-binding advisory resolution on executive compensation was also approved by a majority of votes [3] Voting Results - Mary Anne Bueschkens received 62,437,350 votes for and 77,698 votes withheld, totaling 62,515,048 votes [2] - Sean Donnelly received 62,484,960 votes for and 30,088 votes withheld, totaling 62,515,048 votes [2] - Eric S. Rosenfeld received 59,574,000 votes for and 2,941,048 votes withheld, totaling 62,515,048 votes [2] Company Overview - Algoma is a fully integrated producer of hot and cold rolled steel products, including sheet and plate, based in Sault Ste. Marie, Ontario, Canada [5] - The company aims to deliver customer-driven product solutions across various sectors, including automotive, construction, energy, defense, and manufacturing [5] - 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 [5] Transformation and Sustainability - Algoma is modernizing its plate mill and adopting electric arc technology to lower carbon emissions significantly [6] - The company is committed to becoming one of North America's leading producers of green steel, focusing on recycling and environmental stewardship [6] - Algoma emphasizes its role as a key supplier of steel products in North America, ensuring a secure steel supply and a sustainable future [6]

Company Overview - Algoma Steel Group Inc. is a leading Canadian producer of hot and cold rolled steel sheet and plate products, based in Sault Ste. Marie, Ontario [3] - The company is a fully integrated producer and a key supplier of steel products in North America, being the only producer of discrete plate products in Canada [3] - Algoma's Direct Strip Production Complex (DSPC) is recognized as one of the lowest-cost producers of hot rolled sheet steel in North America [3] Recent Developments - Algoma will participate in the Jefferies 2024 Industrials Conference on September 4 and 5, 2024, and will post its presentation on its investor relations website [1] - The company is undergoing a transformation journey, modernizing its plate mill and adopting electric arc technology to significantly lower carbon emissions [4] Strategic Focus - Algoma is committed to building a greener future and delivering customer-driven product solutions across various sectors, including automotive, construction, energy, defense, and manufacturing [3][4] - The company emphasizes its role in providing a secure steel supply and sustainable future for North America, drawing on its rich steelmaking tradition [4]

SAULT STE. MARIE, Ontario, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, announced today that the Toronto Stock Exchange (the “TSX”) has approved the Company’s intention to renew its normal course issuer bid (“NCIB”) for a portion of its common shares (“Shares”) and a portion of its warrants (“Warrants”) to purchase shares as appropriate opportunities arise fr ...

SAULT STE. MARIE, Ontario, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today congratulates PUC (Transmission) LP (“PUC Transmission”) and Hydro One Sault Ste. Marie LP (“Hydro One”) on each obtaining authorization pursuant to the Ontario Energy Board Act to construct a new 230kV transmission line and related transformation components in Sault Ste. Marie. The ...

Financial Data and Key Metrics Changes - Algoma Steel reported adjusted EBITDA of CAD 37.7 million for Q1 2025, reflecting an adjusted EBITDA margin of 5.8% and cash generated from operating activities of CAD 12.5 million [18] - Steel revenue was CAD 597 million, down 20.8% compared to the prior year, with shipments of 503,000 net tons, a decrease of 11.6% [19] - The average net sales realization was CAD 11.87 per ton, down 10.4% year-over-year, while the cost per ton of steel products sold averaged CAD 10.69, up 12.5% [19][20] Business Line Data and Key Metrics Changes - Plate shipments in Q1 2025 were approximately 61,000 tons, with expectations to ramp up to close to 90,000 tons in Q2 2025 as the modernization project is completed [12][13] - The company has exited the wide coil market, allowing it to prioritize plate production, which is expected to enhance margins [14] Market Data and Key Metrics Changes - The North American steel market has experienced price weakening, with signs of stabilization noted since late July [23] - The company noted that the current market conditions reflect ample spot supply and cautious buying during the slower summer season [23] Company Strategy and Development Direction - Algoma Steel is focused on the transition to electric arc furnace (EAF) steelmaking, with commissioning of Unit 1 expected in Q4 2024 [10][16] - The company aims to become one of the greenest steel producers in North America, with a target shipping capacity of approximately 3 million tons per year from the EAF [16][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by lower shipments and softer steel prices, but emphasized a strong liquidity position to support ongoing projects [11][10] - The company remains optimistic about the EAF project and its potential to unlock significant shareholder value despite current market headwinds [24] Other Important Information - Algoma Steel completed a USD 350 million notes offering, enhancing its liquidity to over CAD 800 million [10][21] - The company is working on insurance recovery related to a coke-making corridor collapse, expecting an advanced payment of CAD 25 million [22] Q&A Session Summary Question: Duplicate costs during the hybrid phase of EAF - Management indicated that labor costs will remain similar during the transition, but per ton costs will decrease as production ramps up [27] Question: Headcount reduction and transition costs - Management confirmed that the most significant headcount reductions will occur when the blast furnace is no longer operational, with clear visibility on associated costs [31] Question: Risk of going over budget on the EAF project - Management expressed confidence in completing the project within the CAD 875 million budget, with a focus on managing time and material contracts closely [34][35] Question: Plate ramp-up expectations - Management expects a ramp-up to 90,000 tons in Q2 2025, with market conditions being the main challenge [40] Question: Use of NCIB and liquidity - Management stated that the reinstatement of the NCIB provides flexibility for capital allocation while ensuring the completion of the EAF project [46] Question: Tax benefits from EAF commissioning - Management confirmed that cash taxes will be lower due to accelerated depreciation benefits [52] Question: Status of power line approval - Management expects final approval from the Ontario Energy Board by early September, which is crucial for future EAF operations [55]