Financial Performance & Outlook - Cleveland-Cliffs reported revenues of $4.9 billion for Q2 2025[6] - Adjusted EBITDA for Q2 2025 was $97 million, with expectations for continued improvement from Q2 to Q3[6] - The company released over $200 million in inventory working capital during Q2 2025[6] - Cleveland-Cliffs expects to reduce steel unit costs by approximately $160 per ton over three years[55] Steel Shipments & Market Dynamics - Record quarterly steel shipments of 4.3 million net tons were achieved in Q2 2025[6] - Steel shipments increased by 150,000 tons from the prior quarter[11] - The average selling price (ASP) increased by $35 per ton due to higher index pricing, partially offset by lower slab pricing[11] Asset Optimization & Cost Savings - Flat-rolled optimization is expected to yield approximately $145 million in annual savings[15] - Repositioning away from non-core assets is projected to generate around $165 million in annual savings[15] - The company announced the idling of several facilities, including Riverdale, Conshohocken, and Steelton, resulting in approximately $90 million, $45 million, and $30 million in expected annual savings, respectively[16] Trade & Tariffs - Tariffs on steel imports from various countries, including Canada, Brazil, and Mexico, have increased to 50%[18] - Imports of light vehicles from Japan and South Korea are down by more than 30% year-to-date[22] Capital Expenditure & Debt Management - The 2025 capital expenditure guidance has been lowered to approximately $600 million[57] - The company has a liquidity of $2.7 billion[6]

Financial Data and Key Metrics Changes - In fiscal 2024, the company reported over $40 million in revenue and $15 million in EBITDA, with expectations for higher numbers in the current year as operations transition to higher-grade ore [6][7] - For Q3, the company produced just under 4,700 ounces, with revenues of $12.5 million, gross profit of approximately $4.5 million (35% margin), and adjusted EBITDA of $4 million, all showing improvement compared to previous periods [23][24] - The cash cost per ounce in the study was reported at $1,000, with an all-in sustaining cost (AISC) of around $1,200, although Q3 cash costs were higher due to the grade profile processed [8][24] Business Line Data and Key Metrics Changes - The company is currently processing at a capacity of 2,000 tonnes per day, with plans to expand to 3,000 tonnes per day as part of the PEA roadmap [8][12] - The production mix for the quarter was 25% oxide and 75% sulfide, with expectations to transition to 100% sulfide in the future [80] Market Data and Key Metrics Changes - The company realized gold prices of over $3,100 per ounce, with sales reaching over $3,300 in recent transactions, benefiting from high gold prices [23][24] - The company entered negotiations with the Bank of Tanzania to sell a minimum of 20% of local gold production, which will reduce the royalty rate from 7.3% to 4% for domestic sales [26][29] Company Strategy and Development Direction - The company aims to self-fund growth through cash flow generated from operations, with a focus on expanding the plant and developing underground mining [17][49] - The PEA outlines a straightforward business plan that includes expanding the plant, developing the underground mine, and continuing exploration [14][66] - The management team emphasizes the importance of optimizing working capital ratios to align with market comparables and improve financial metrics [32][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting the potential for increased production and profitability as higher-grade ore becomes accessible [16][21] - The company is focused on addressing working capital issues and improving liquidity to support ongoing operations and expansion plans [31][34] Other Important Information - The company has successfully expanded its processing capacity three times in three years, currently operating at 2,000 tonnes per day [37] - The management team is actively working on optimizing the plant to improve recovery rates and reduce costs [41][47] Q&A Session Summary Question: What is the expected trend for throughput in the coming quarters? - Management indicated that the installation of a pre-leach thickener is expected to transition the plant to 100% sulfide, improving head grades [80][82] Question: What is the timeline for recovery improvements? - Recovery improvements are expected to be seen in the next few quarters, with significant enhancements anticipated within 12 to 15 months [85][86] Question: How does the company plan to handle surface material and oxide versus sulfide mining? - Management noted that while there is potential to process oxide material, the focus will remain on higher-grade sulfide material once plant optimizations are complete [102][104] Question: What are the main bottlenecks for increasing production beyond the projected 62,000 ounces per year? - The main bottlenecks include mill capacity and the need for additional underground infrastructure, which will require careful engineering and planning [112][116]

Financial Data and Key Metrics Changes - In fiscal 2024, the company reported over $40 million in revenue and $15 million in EBITDA, with expectations for higher numbers in the current year as operations transition to higher-grade ore [5][6]. - Q3 financial results showed revenue of $12.5 million, gross profit of approximately $4.5 million (35% margin), and adjusted EBITDA of $4 million, all improved relative to the prior period [20][21]. - The company produced just under 4,700 ounces in Q3, significantly more than in Q2, benefiting from record gold prices, realizing over $3,100 per ounce [20][21]. Business Line Data and Key Metrics Changes - The company is currently processing at a capacity of 2,000 tonnes per day, with plans to expand to 3,000 tonnes per day as part of the PEA roadmap [6][12]. - The cash cost in the PEA study is projected at $1,000 per ounce, with an all-in sustaining cost (AISC) of around $1,200 per ounce, which is comparable to current operations [6][7]. Market Data and Key Metrics Changes - The company entered negotiations with the Bank of Tanzania to sell a minimum of 20% of local gold production, benefiting from a reduced royalty rate of 4% on domestic sales compared to 7.3% on exports [23][24]. - The agreement with the Bank of Tanzania allows the company to use local currency for operating costs, enhancing cash flow and working capital [24][25]. Company Strategy and Development Direction - The company aims to self-fund growth through cash flow generated from operations, with a straightforward business plan focused on expanding the plant and developing the underground mine [15][42]. - The PEA outlines a scalable business plan, with significant blue-sky potential for increasing plant capacity and discovering higher-grade ounces [10][16]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational ramp-up and the potential for significant value creation, emphasizing the importance of returning to drilling activities in fiscal 2026 [16][62]. - The company is focused on rightsizing its working capital ratio to improve financial metrics and align with market comparables [26][59]. Other Important Information - The company has successfully expanded its processing capacity three times in three years and is currently operating at full capacity [31]. - The management team is experienced and has a proven track record in executing business plans effectively [62]. Q&A Session Summary Question: What is the expected trend for the oxide and sulfide mix in throughput? - Management indicated that the current mix is 25% oxide and 75% sulfide, with plans to transition to 100% sulfide by the end of the calendar year [64][65]. Question: What are the expected recovery improvements and timelines? - Recovery improvements are anticipated with the installation of a pre-leach thickener by the end of the year, aiming for a low 80% recovery rate in the next couple of quarters and high 80s to low 90s over the next eighteen months [70][74]. Question: How does the company plan to handle surface material and oxidized material? - Management is assessing opportunities for oxidized material while prioritizing sulfide processing, indicating potential for additional production from oxidized sources if economically viable [82][85].

Financial Data and Key Metrics Changes - The company generated net sales of $116 million in Q1 2025, a decrease of 14% compared to $135 million in Q1 2024 [6][16] - Adjusted EBITDA for Q1 2025 was $3 million, down from $15.5 million in the same period last year [6][16] - Operating expenses decreased by $5 million year-over-year [5][10] - Gross profit margin declined to 26% in Q1 2025 from 31% in the previous year [18] Business Line Data and Key Metrics Changes - Metem sales increased by 14% year-over-year, while Diamond sales rose by 17% due to increased peanut acreage [8][9] - The absence of a previously canceled herbicide product negatively impacted sales [16] - The company faced challenges in the Mexican agave market and drought conditions in Australia, affecting overall performance [8][16] Market Data and Key Metrics Changes - Inventory levels at distributors are down nearly 23% compared to the previous year, indicating a prolonged destocking period [24] - Corn plantings are at historically high levels, which may positively impact demand for the company's products [24] - The company noted a competitive pricing environment, particularly in the fungicide and herbicide categories [56][58] Company Strategy and Development Direction - The company is focused on cost containment and improving net working capital, with a goal of achieving a 15% adjusted EBITDA margin over the long term [10][48] - A transformation plan is in place to streamline operations and improve financial results [26] - The company is exploring options for a longer-term capital structure to replace its current credit agreement [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a recovery in demand as inventory levels are at historic lows [23][62] - The company has adjusted its full-year adjusted EBITDA target range to $40 million to $44 million, down from $45 million to $52 million [12] - Management highlighted the importance of executing the transformation plan to position the company for a cyclical upturn [22][26] Other Important Information - The company faced delays in filing its 10-K and 10-Q due to internal control matters and the need for a detailed review of major assets [13][15] - The company is working on a remediation plan to address identified material weaknesses in internal controls [15] Q&A Session Summary Question: Can you elaborate on the year-over-year top line performance? - Management noted that the removal of the Dactyl product significantly impacted top line sales, along with challenges in the agave market and drought in Australia [31][32] Question: What are the expectations for cash taxes this year? - The company expects cash taxes to be in the range of $4 million to $5 million due to international obligations [43] Question: Can you provide details on pricing pressures and competitive environment? - Management indicated that competitive pricing was influenced by inventory levels and not necessarily by specific product competition, with expectations for improvement in the future [56][58]