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Algoma Steel Secures C$500 Million Liquidity Support from Governments of Canada and Ontario
Globenewswireยท 2025-09-29 13:00
Core Viewpoint - Algoma Steel Group Inc. has secured C$500 million in liquidity support to navigate trade uncertainties and advance its business transformation [1][3][10] Financial Support - The liquidity support consists of C$400 million in loan facilities from the Government of Canada and C$100 million from the Province of Ontario [1][4] - The loan facilities will have a seven-year term with interest set at CORRA + 200 basis points for the first three years, increasing by 200 basis points each subsequent year [4] Government Involvement - Key government officials, including the Minister of Jobs and Families and the Minister of Finance, participated in the announcement of the financial support [2] - The support is seen as recognition of Algoma's critical role in Canada's industrial base and its transition to Electric Arc Furnace (EAF) steelmaking [9][10] Operational Adjustments - Algoma is adjusting its production strategy to align with domestic demand due to the ongoing 50% tariff on Canadian steel, which has effectively closed the U.S. market [3][7] - The company plans to exit traditional blast furnace operations and transition to EAF steelmaking, with an estimated project cost of approximately C$987 million [8][9] Strategic Focus - Algoma intends to focus on producing as-rolled and heat-treated plate products primarily for the Canadian market [9] - The company aims to enhance its sustainability efforts by adopting EAF technology, which is expected to significantly lower carbon emissions [12]
Algoma Steel (ASTL) - 2025 Q2 - Earnings Call Presentation
2025-07-30 15:00
Financial Performance - Shipping volume for Q2 2025 was 472K NT, a slight increase from 470K NT in Q1 2025 but a 6% decrease from 503K NT in Q2 2024[21] - Steel Revenue in Q2 2025 reached $534 million, up 15% from $463 million in Q1 2025 but down 11% from $597 million in Q2 2024[21] - Adjusted EBITDA for Q2 2025 was $(32) million, an increase of $15 million from $(47) million in Q1 2025 but a decrease of $70 million from $38 million in Q2 2024[21] - Net Income in Q2 2025 was $(111) million, down $86 million from $(25) million in Q1 2025 and down $117 million from $6 million in Q2 2024[21] - Adjusted EBITDA margin for Q2 2025 was -55%[21, 22] Strategic Initiatives - The company is progressing with its Electric Arc Furnace (EAF) transformation, with the first heat achieved in July 2025[39] - The EAF project is expected to reduce emissions by 70% and improve GHG performance[39] - Algoma commenced quarterly dividend of $005 per share[39] Market Factors - Increased US tariffs of 50% on imported steel and aluminum have disrupted global steel markets[36] - Tariffs on imported pig iron into the US are also expected to impact market dynamics[36]