Financial Data and Key Metrics Changes - The fourth quarter Adjusted EBITDA was a loss of CAD 95.2 million, reflecting an Adjusted EBITDA margin of -20.9% and cash used in operating activities of CAD 3 million [13][14] - For the full year 2025, Adjusted EBITDA was a loss of CAD 261.4 million, representing an adjusted EBITDA margin of -12.5%, compared to a gain of CAD 22.4 million and a margin of 0.9% in 2024 [18] - The company finished the quarter with CAD 77 million in cash and CAD 195 million available under its revolving credit facility [14] Business Line Data and Key Metrics Changes - Shipments in the fourth quarter were 378,000 net tons, down 31% year-over-year, primarily due to the impact of U.S. tariffs [14][15] - For the full year, total shipments were 1.7 million net tons, compared to 2 million net tons in 2024 [17] - Net sales realizations averaged CAD 1,080 per ton for the full year, down from CAD 1,107 per ton in the prior year [17] Market Data and Key Metrics Changes - The Canadian dollar strengthened approximately 5% over 2025, moving from CAD 1.44 per USD at year-end 2024 to CAD 1.37 at December 31, 2025 [12] - Plate pricing remained resilient, with a premium over hot-rolled coil, while sheet pricing was approximately 40% lower than the index [36] Company Strategy and Development Direction - The company is pivoting its commercial strategy towards the Canadian market, exiting blast furnace and coke oven operations, and focusing on high-value products [6][11] - A binding MoU with Hanwha Ocean Co., Ltd. was announced, with a potential value of CAD 250 million, indicating a strategic shift towards defense and industrial supply chains [10][11] - The company aims to optimize for margin quality rather than volume, reducing exposure to tariff-distorted global markets [11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged 2025 as a challenging year due to the 50% U.S. Section 232 tariff, which fundamentally altered the business model for Canadian steel producers [20] - The company is committed to exploring product diversification initiatives and applauded government measures to support the Canadian steel industry [22][23] - Management expressed confidence in the company's direction and the foundation for long-term value creation [24] Other Important Information - The company absorbed CAD 225 million in direct tariff costs for the full year, reflecting a structural shift in the industry [8] - Accelerated depreciation and stranded inventory costs were captured in the cost of sales during the quarter [16] Q&A Session Summary Question: What are the expectations for full year shipments? - The company expects total shipments between 1 and 1.2 million tons for the year, with a ramp-up in capacity at EAF [26] Question: What is the expected mix between plate and sheet? - The mix is anticipated to be roughly 50/50 between plate and sheet products [28] Question: How exposed are energy costs to the current spot market? - The company generates power from its own natural gas-fired power plant and consumes power from the grid, which is subject to Ontario's spot rate pricing [29] Question: What is the current status of plate pricing in Canada? - Plate pricing is holding up better than sheet pricing, with government initiatives helping to stabilize the market [36] Question: What are the critical milestones for the beam mill project? - The company is working on engineering, cost estimates, and timelines for the beam mill project, with demand in Canada exceeding supply [40] Question: What is the expected CapEx for the full year? - The company does not expect any change in the total project budget for the EAF, with sustaining CapEx expected to be around CAD 80 million a year [42]