Investment and Collaboration - ArcelorMittal S.A. announced a $5-million investment in Utility Global through its XCarb Innovation Fund, which focuses on decarbonizing steel production [1] - The investment is part of Utility Global's $53 million Series C funding round, led by Ontario Power Generation [1] - A collaboration agreement was established to expedite the adoption of Utility Global's technology, including plans for pilot projects at ArcelorMittal facilities [2] Technology and Innovation - Utility Global developed a patented reactor that processes variable industrial gases into high-purity hydrogen and a concentrated CO2 stream, which can replace natural gas in steelmaking [1] - The concentrated CO2 stream aids in cost-effective carbon capture and storage, essential for reducing emissions in the steel industry [1] - The XCarb Innovation Fund emphasizes the need for cost-effective and scalable solutions for decarbonizing hard-to-abate sectors like steel, with Utility Global's eXERO technology meeting these criteria [2] Market Performance - ArcelorMittal's stock has increased by 1.1% over the past year, contrasting with a 6.4% decline in the industry [3] - The company currently holds a Zacks Rank of 3 (Hold) [4] Comparisons with Peers - IAMGOLD Corporation, Eldorado Gold Corporation, and Carpenter Technology Corporation are better-ranked stocks in the Basic Materials space, each holding a Zacks Rank of 1 (Strong Buy) [4] - IAMGOLD's current-year earnings estimate is 41 cents per share, reflecting a 355.6% increase year-over-year, with a stock surge of nearly 165.7% in the past year [5] - Eldorado Gold's earnings estimate is $1.35 per share, indicating a 136.8% rise year-over-year, with shares increasing by approximately 103.3% [5] - Carpenter Technology's earnings estimate is $6.09 per share, showing a 28.5% year-over-year rise, with a stock increase of nearly 135.9% [5]

ArcelorMittal’s XCarb® Innovation fund invests in Utility Global to progress its gas processing technology 25 September 2024, 16:00 CET ArcelorMittal (the ‘Company’) today announces it has invested $5 million in Utility Global through its XCarb® Innovation Fund. The Fund, launched in 2021, invests in companies developing disruptive technologies that have the potential to support the decarbonisation of steelmaking. The investment is part of Utility Global’s $53 million Series C fundraising round, led by Onta ...

Event highlights India’s position as world’s fastest growing steel market and AM/NS India’s vision to become the benchmark for quality, scale and sustainability in Indian steelmaking 25 September 2024, 11:30 CET ArcelorMittal today hosted an investor day at AM/NS India’s flagship plant in Hazira, Gujarat. The event provided members of the investment community with the opportunity to witness first-hand the progress AM/NS India – a 60/40 joint venture between ArcelorMittal and Nippon Steel – is making with th ...

Core Viewpoint - ArcelorMittal demonstrated resilience in Q2 2024 with an EBITDA of $1.5 billion despite lower steel prices, and while a decline in EBITDA is expected in Q3, signs of market stabilization and strategic investments position the company for a potential rebound [2][4][10] Financial Performance - The Q2 EBITDA of ArcelorMittal was approximately $1.5 billion, aligning with analyst consensus expectations [4] - The company anticipates a sequential decline in EBITDA in Q3 due to lower steel prices and weak demand [4][10] - ArcelorMittal's net debt stood at about $5.2 billion at the end of Q2, with a projected net debt of $5 billion by the end of 2024, indicating a net debt/EBITDA ratio of 0.8x [4][6] Market Conditions - Steel prices have faced downward pressure due to high Chinese exports, weak macroeconomic conditions, and falling input costs, but are believed to have reached a cyclical low [5] - Indicators of market correction, such as trade protections and potential production cuts in China, suggest a possible recovery in the steel market [5][10] Strategic Investments - ArcelorMittal is progressing on its strategic capex plan, with over 75% of investments completed by the end of 2024, particularly in Brazil and India, expected to drive a 25% increase in EBITDA in the coming years [5][10] - The company has maintained a balanced approach to capital allocation, spending approximately $11 billion on share buybacks and dividends since 2021 while investing around $7 billion in strategic capital expenditures [6] Valuation - A residual earnings model estimates the fair implied value of ArcelorMittal's equity at around $44 per share, indicating an upside potential of approximately 83% [7][10] - Sensitivity analysis suggests that under various scenarios, ArcelorMittal's stock remains undervalued [8]

Deutsche Bank analyst Bastian Synagowitz upgraded Arcelor Mittal NY MT to Buy from Hold and raised the price target from $29 to $31.Per the analyst, 75% of Arcelor Mittal’s steel earnings are tied into attractive markets that trade at a premium to the company.Despite this, valuation multiples of 3-4x EV/EBITDA are (wrongly) held hostage by the European business (literally priced at zero), the analyst writes.Synagowitz writes, weaker developed markets and a slowing Chinese sector have led to a significant co ...

ArcelorMittal (MT) Brazil has signed contracts for developing two solar energy projects with a combined capacity of 465MW, which is equivalent to 14% of its current electricity requirements.The first project builds on ArcelorMittal Brazil's existing relationship with Casa dos Ventos, one of Brazil's largest developers and producers of renewable energy projects, with whom it signed a joint venture deal in April last year for the development of a 554MW wind power project that is scheduled to be commissioned b ...

StefanoZaccaria Dear readers/followers, It's time for another update on steel company ArcelorMittal (NYSE:MT). This is a business I've been covering for a number of years at this point, and have been investing in for some time as well. While I've already established a position, I believe the time has come for me to expand on that position even further. The reason? Valuation - the company has now dropped to levels where I would definitely consider the company not only cheap, but very cheap, and definitel ...

Acquisition Details - ArcelorMittal S.A. has acquired 65,243,206 shares of Vallourec, representing approximately 28.4% equity interest, for a total consideration of approximately €955 million (roughly $1,043 million) at €14.64 per share [1] - The acquisition followed the signing of a Share Purchase Agreement on March 12, 2024, and received necessary approvals from antitrust authorities and foreign investment regulations [1] - Post-acquisition, Genuino Magalhaes Christino and Keith Howell from ArcelorMittal will join Vallourec's board, with Aditya Mittal taking on the role of observer [1] Strategic Intent - ArcelorMittal does not plan to launch a tender offer for the remaining shares of Vallourec in the next six months but will update the market if this changes [2] - The company views Vallourec as a leading producer of high-quality tubular products, particularly in a market segment expected to grow due to emerging clean energy markets [2] - The acquisition is seen as a strategic addition to ArcelorMittal's investment portfolio, with a commitment to support Vallourec's management in enhancing performance [2] Growth Strategy - The acquisition aligns with ArcelorMittal's broader growth strategy, which includes recent acquisitions in Brazil and the U.S. that are yielding strong results [3] - The company is making significant progress on various organic growth projects, many expected to complete this year, which will enhance product capabilities and earnings capacity [3] - ArcelorMittal revised its projection for global steel consumption growth (excluding China) to 2.5-3% for 2024, down from 3-4% [3] Financial Outlook - The company forecasts capital expenditures for 2024 to be between $4.5 billion and $5 billion, with $1.4 billion to $1.5 billion allocated to strategic growth projects [3] - A $1.6 billion investment in working capital made in the first half of 2024 is expected to reverse by year-end, supporting a positive outlook for free cash flow generation [3] - Completion of strategic growth projects is anticipated to lead to structurally higher EBITDA and investable cash flow in the future [3]

06 August 2024, 07:30 CET ArcelorMittal today announces that following the signature of a Share Purchase Agreement on 12 March 2024, and after the approval of relevant antitrust authorities and clearances under foreign investment regulations, it has completed the acquisition of 65,243,206 shares, representing c.28.41% equity interest in Vallourec, for €14.64 per share from funds managed by Apollo Global Management Inc., for a total consideration of approximately €955 million, subject to successful completio ...

06 August 2024, 07:30 CET ArcelorMittal today announces that following the signature of a Share Purchase Agreement on 12 March 2024, and after the approval of relevant antitrust authorities and clearances under foreign investment regulations, it has completed the acquisition of 65,243,206 shares, representing c.28.41% equity interest in Vallourec, for €14.64 per share from funds managed by Apollo Global Management Inc., for a total consideration of approximately €955 million, subject to successful completio ...