Algoma Steel sees 2Q24 adjusted EBITDA C$75M-C$85M

Q2 total steel shipments are expected to be in the range of 540,000 to 550,000 tons. CEO Michael Garcia commented, “Our operations have run in line with our expectations in Q2. Our Plate Mill modernization project reached a key milestone, as we commenced cold commissioning and ran trial plates through our heavy gauge inline shear. Hot commissioning continues and an expected ramp towards higher plate production is planned for the end of the calendar year. We are closely monitoring the evolving United Auto Workers union’s work stoppages at certain North American auto manufacturing facilities and the impact they are having on steel markets, including lower than expected realized pricing for recent steel shipments. In the meantime, we expect to perform our normal annual steel making vessel reline, along with other planned seasonal maintenance during the fiscal third quarter. On the Electric Arc Furnace project, work has advanced as expected during the quarter, with additional scope committed and priced as we continue to de-risk the project and work towards our expectation of a late calendar 2024 commissioning.”