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Legato Merger (ASTL)

Participants
Michael McQuade Former Chief Executive Officer, Current Board Member
Michael Garcia New Chief Executive Officer
Rajat Marwah Chief Financial Officer
Michael Moraca Treasurer, Investor Relations Officer
David Gagliano BMO Capital Markets
David Ocampo Cormark Securities
Anoop Prihar VIII Capital
Ahmad Shaath Beacon Securities
Alexander Jackson RBC Capital Markets
Kirk Ludtke Imperial Capital
Call transcript
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Operator

Greetings! And welcome to Algoma Steel Group Inc.'s Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to conference like host, to now Mr. would turn over this your I and Relations Moraca, Investor Michael Treasurer Officer. sir. you, Thank

You may begin your presentation at this time.

Michael Moraca

Good Steel and our Group Michael Garcia earnings welcome Rajat Executive Officer to Marwah, quarter Former New Board McQuade, and today's XXXX Member; Current Michael Leading conference morning, fiscal Officer. call. Chief Chief Chief are our our Financial and Inc.'s, everyone, fourth call Algoma Executive Officer

the today made materially comments and this www.algoma.com. on reminder, recorded call statements from assumptions is Actual the inherent available applicable Algoma of statements for of call may later to I contain uncertainties. made remind at made be the a As today. you and meaning Steel's within involve replay being in today's laws, risks differ like which may securities website and section Investor will forward-looking results corporate would

Canadian assumptions the on analysis. presentation and are currency U.S. statements addition, and website. earnings In outlined GAAP read slides two as that accordance discussion in for presentation, IFRS, presentation an The everyone quarter in our today's earnings the non-IFRS slide Steel's XXXX U.S. which today's section can to the note are our prepared in from certain we accompanying management's risks call to posted Algoma I ask financial differs dollar mind, discussion to references remarks. in of functional our our and the corporate to found refer today's prepared investor statements that accompany currency. in the our includes evening of be Last measures. legal on disclaimers our and the With to fiscal with and would prepared call today Please also as financial dollar fourth

March call in referred XX note our unless three Canadian on Our today's otherwise XX, noted. XX runs statements ended been prepared to the are months to Please all X fiscal financial amounts and for have and March from April year XXXX. dollars

the prepared to Board question-and-answer Former Following Executive will turn Chief call over conduct will now McQuade. Current our a our Mike. and we remarks Member, Michael session. I Officer

Michael McQuade

morning! substantial year quarter continued you, XX, Algoma for safety March employees. we joining Thank will XXXX. call full as to fiscal and addressing our focus most has we resulted in my believe without I Welcome you the our do, Good for our ended us, fourth Steel’s always compromise truly comments what and thank Mike. and by At Algoma, of matters safety was team earnings start achieving of to injury in fiscal in our say year employees proud pursue as relentlessly at year and I commend for is zero priority continued last collective goal safety the our ever. of diligence entire our improvement frequency lost-time over the our injuries. success we rate. our workplace our top that and I'm XXXX decade Algoma’s Algoma safest The

my for Algoma course entire and these of did over most Transformational stakeholders into my comments, challenges, come CEO getting to tenure achieved not Steel, my some express their rewarding without and like the been new I’d for to gratitude will have chart they years. we while trust support specific as last of our Algoma during the Before and family all my the X.X of a career. milestones certainly years

and be look and will to the never a hand Mike of I As with the I confidence tremendous he board. Garcia, know a reins amount of great role brighter company. steward Algoma’s into to life, leaving I participation been via forward my I move continued next phase future the on of I'm this my has as

during on the our point we in in focusing and you having told last we an have, to We at for position change cash that not capital allocation. period profound cash industry, the on that future. marked expect some management XXXX results that outstanding of enviable options means the fiscal for us Our of that company and a put quarter financial time realize prudent the

cycle. We the make CADX.X we term sheet foundational drove by building operations achieved including and why by the steel balance have as the remain revenues have on generated our results, value throughout amount can seen We facilities. billion year. investment blocks which is focused highly shipments us entire transformative several we the financial have the safe million cyclical a fronts creating of Algoma efficient drive X.X simultaneously. fiscal place today. be management, tons, and will over in CADX.X and shareholders execution I’m long adjusted positioned billion, work successful CADX.X Still us a value that team put EBITDA capital enviable proud have of of results Relentless of markets by of to term billion put laser of of volatile in operating last we are our into of and for quarters, pricing activities we've exceptional through creation two long achieving an evidenced on our Those particularly prudent strong what combination cash

our we our million SIB Substantial a of cap. On Bid potential the quarterly a SIB one-third to repurchases capital new return Issuer current or $XXX dividend. share and over side, issuer The approximately bid announced our market last of course that normal regular night existing has and represent above is

of of Northern our results advantage green with construction Ontario supplies EAF, steel commitment producers term and power front, leading and emitting needs customers and in budget. expected electricity completing as we Northern pursue steel program one announced This grid of energy in project. our to time their industrial our to as supports EAF that of to all combined regard energy was quarter backdrop We the is When with and intend province the transition long arc to Subsequent gives program. transformative clean the visibility end, in North of carbon the decision Ontario warrants, Ontario’s advancing security proud of making. America. one Ontario return America. significant our capital our become to North is the lowest On to into furnace are advancing as electric known against and across continued shareholders to

transform cycle. to a being that the team major a normally throughput in to all available grid you for while to government. company, EAF times so on how sustainability and becomes the The carbon by who market we across poised of milestone to from without followed steel support quick The successful It's able are of of lower our capital will X.X The capacity. by the transformational operate, combined million come AFs fully a testament able give production, transition as return emissions portfolio the being annual we execution a existing expected entails from project supply a we finishing dual furnace steel assets steel increased provincial as online are a two will we in life the the how Given and excited during is tones, matching project, reminder be about away XX% operationally project the I'd continued that It a our next are maker, are downstream designed by company operate construction of our the project. to shareholders. with of to meaningful like fundamentally production, all phases why positioning to the our blast approximately operational. generation focused when of are steel furnaces our of by XXXX, raw power it unprecedented impact

As and I time it's before, Algoma. said exciting future for an bright a

prepared and the quarter financial the fiscal Now, go our to results Rajat? for remarks. before the call the out Mike over pass our I'll strong over new CEO, to closes Rajat year Garcia

Rajat Marwah

Thanks call. you morning, thank Mike. all for joining and Good the

fiscal are remind expressed otherwise again impressive generating potential noted. in fourth all numbers continue demonstrate to Our cash Canadian results dollars quarter Algoma. that of I'll you the unless

Our margin undrawn which were of adjusted income and from highlighted CADXXX facility. CADXXX.X unrestricted of XX.X% of the adjusted finished million million. remained generated quarter cash quarterly on by results operating revolving We reflects activities and CADXXX.X cash, million, million, EBITDA of with an EBITDA of the credit CADXXX.X net

drivers and is secured long a remaining our down compared XXX,XXX the term to X% the repaid net debt Diving the debt quarter, in key balance as of XX% of to year prior performance, You'll and last in linked the all our million $XXX quarter, sequentially long we result outstanding we our recall fully as capital sheet tons on projects. form senior shipped loans, term into the only government of quarter.

supply As related revenues. prior chain down operations, expected constraints averaged we of previously logistical versus COVID we the down our due slowdowns of X,XXX levels quarter, as XX% lower period. flow up The book XX% of year. announced, than to but our ton, CADXXX XX% outside reflects were and shipments through quarter increase sales prices up year customer's, last sequentially, revenue including impact in per XX% resulted the the at million but versus the of higher year realization Net sequentially, prior same challenges. order in increased steel lag issues various contract our positive This versus the the

select sequential versus the over goods per this related ton prior period of up in of CADXXX the sold increases the public Algoma’s averaged on main and flat The On side, historic a as performance price to prior sharing increased higher a SG&A material of commodity being for base the result cost raw profit includes and inputs, our drivers basis cost cost year quarter, increase year a company. XX% employee period.

million X.X compared tons fiscal up realization versus Looking the CADX,XXX full year. as last net ton, X% per the year, results, of for revenue steel up shipped average for year. resulted the we prior to This XXX% year. at XXXX in prior billion, CADX.X up Net sales our year XXX%

versus public sharing Algoma’s ton On side year, higher sold the being drivers increase for the the increases increase for raw select this $XXX XX% and an related of SG&A prior main prior cost include goods material price company. to commodity The cost year. year of over the employee profit based per a cost again increased inputs, averaged period of

cash through night. with Our release our strong record are the capital fortress SIB which positioned allocation. generation, sheet fiscal us generating XXXX well Mike of highlighted our layer all story we was to a allocation cash profile, another by positioned add earlier evaluating and adjusted announced described around as and options capital to we EBITDA year balance last Armed in continue

currently Russian first mid-cycles. operations start of the for our the expect at through turning to but book well our fiscal quarter, is range to impact off Based as to Michael previously our coincided the month their adjusted stage. invasion like our attractive new Garcia, the commissioning planned come outage provide Ukraine, month, we disciplined this includes to guidance This steel million of expectations market in mill quarter EBITDA approach prices remains market quarter, conditions modernization the CADXXX for for on most end of end the levels, quarter, the to-date in of one highs strong the to and disclosed, our and with fiscal recent our that capital order above outlook from EBITDA that the in first million. CADXXX our past Now CEO, still our to Mike. have deliver call I’d of current now over turn allocation. to balanced and on the color plate

Michael Garcia

Thanks, Rajat.

me start his McQuad saying Mike Mike thank continuing stellar mentorship am Board how joined on the through Algoma to Directors. throughout I Let of the from excited our ongoing have X.X guidance look forward leadership to for years. by to I his last position and and team,

the to state near American higher years, of result of of spike as the point signs showing in prices levels a pricing the any pricing. prior time steel a those April, record fourth Since double to quarter saw than the stabilizing and last for fiscal at those at off the have of Russian of market North and in highs the levels Ukraine. approximately two largely dramatic levels today, beginning second from historically the still are mid-cycle invasion XXXX come Looking

we book. near where in a and remain should optimistic by about the find to that market level we to in supported pricing expect continue our shake We equilibrium out, the order see fundamentals and term

and book We year. percentage These opportunities diverse approximately Canada across servicing that currently XX% our U.S., a sell per selling a plate of on have the sell include wide customers quickly. or compared traditionally customer in XXX operations price of lagging a some that of provides roughly commitments help offerings coil. We target and rolled a up as and of to stability the mechanics when currently enjoy calendar experienced to volume provide order high price which shift and steel sales smooth to $XXX prices contract We a approximately premium of products, down the our base range contract. hot volatility ton

Canada's are plate our in investments given producer of only discreet well, that service products. maintained mill always have should plate and We we treater heat

term wrapping commissioning industries have with fourth economic intermediate Our intensive X factors positioned phase we demand and seen we pricing modernization controls the Phase globe, positive around imports. and uncertainties project remains planned through during We industries, remain and work include benefit equipment potential as on will steel at today to completion being going underlying levels. on and construction reasons and quarter. the near automotive, of remain in the first construction, new for calendar of of hot a EAF project. up to number even Despite track, attractive market these favorable These other the the gas the believe operationally, across well well and oil the as as from the conditions execute strong

let me about our Now talk allocation policy. capital

that the Algoma That discipline term operational leadership at solidifies value McQuade, provides focus on our of our project, stakeholders. EAF our to North Mike from ushering America. excellence delivering the execute financial forefront production endeavor and of company creation to ability the position green prudent our future our primary steel in long next foundation As for you phase for is the our and defines ensure heard of

cost market to that we We transition fronts. from sheet pricing return strengthen proud afforded on operation to we strong benefit steps have have three green to capital as to steel also company, the our a taken shareholders opportunity to us low and are the to the position even balance

Mike last was normal money have to long to stated capital free means, view My substantial program, spend our continuously Our generator significant quarterly term, didn't within announced is board. the McQuade’s not $X.XX evaluate the allocation bid course issuer per a bid we will and live over cash and Algoma, line, expect immersing of myself we business, my and familiarizing share first expect to to with approach our two realize myself approach. operations, and and dividend, our consistent policy be or the million we been for night. their our regular $XXX board's, down at the through, with issuer our that sentiments. in specifics our the do am of in processes best In their desire the Algoma happy the team all to pride what's The and across weeks in attitudes business of people I to and stakeholders. echo among shines his sense of our and have I with meeting

on my feel financial markets, that strong to taken The achieved efforts. exciting fiscal build from. past about quarter the end to on employees. extensive several a getting I EAF of potential further platform we that help robust allocation we and of over can was the of construction confident transformative strong our the return years started, our background results, have very to first for While our really build only legacy I a tremendous project, large commencement just specifically in grow secured public thoughts projects I'm of operations a experience, the at foundation. team's year upon historically and are to my a Algoma, opportunity. and commend results safety most capital steps fourth importantly, and the a will which debt, senior program the strong our continued include our our achievement start the retirement EAF of management

even existing more our Sault will benefits operations As safe, while dual manufactured we change more competitive be is EAF I designed as Ste. forever resilient. how on strong a assured our investment business relentless of continue Marie, that the facilities, making of focus the and reliable, the enjoy we steel to facilities, efficient greener, reins, in generational take advance our to markets,

for session. We interest value very we Operator, your the Thank compelling forward At continue to build future your Algoma Q&A our holds. take you the what for all position for instructions to Steel. We much and Algoma happy point, proposition questions. this upon continued stakeholders. in of our please be would as will a to this look give

Operator

Instructions]. [Operator

the Markets. line from question BMO David first with Gagliano Our comes of Capital

You question. may with your proceed

David Gagliano

and significant I have question the and and mean transition taking the top some thank for term all, I on questions, results, SIB. of first, on my the really thanks near basic, some first just the – operating solid questions. Right, congratulations at

on guide, the all the a in embedded quarter, within the down quarter, plate the mix of first embedded expectations break you of EBITDA First in upcoming and give guide, rolled upcoming and the us of volumes volume the can for that that's my hot for question.

Rajat Marwah

thanks for David, So compliment. your

capital and on good I a think a quarter really allocation. was based it great outcome

important which the know EBITDA, number what and we to know providing you absolutely you're guidance the the go for would on overall are guidance, think like are we provide EBITDA volume. just right. The and that of more is is the So we I and you part the giving are and market, not numbers meaningful and

David Gagliano

on Okay. devices. Alright, follow-up ahead. operative the I'll Go just

Rajat Marwah

we that on outage only would time last in had here that’s we – that I sorry The other set the thing is that month mill right have commissioning add space finishing one David, something the off is and now. that plate a

David Gagliano

Okay.

when, to Just know and for March government the switching end could if you spend, for EAF you the refunds, was the the EAF of through process applying in etc. the much, the CapEx etc., just how quarter, talk over what us

Rajat Marwah

Sure.

So quarter. March CapEx by of we the X% X% roughly to the spent

this from the it normally and as the XX% that's spend you a spend the then and where you said mechanism you get there's XX% reimbursement this quarter to when you money a the it's running. really which and to get a lag process spending, spend perspective, So when fiscal money is money. we to year, apply From earlier, expecting reimbursement back year in for a you

David Gagliano

pressures spend – Is assumption reasonable project, inflationary question. there, last etc., given is etc. EAF that out the obviously CADXXX for my just expected is a the the this total and still the Okay, million

Michael Garcia

that's Mike Yes, our This estimate. current still David! Garcia. is Hi

David Gagliano

for Alright, turn well the I'll Thanks thanks to it else. taking and over answers. somebody

Operator

comes line Our David next the of Securities. question from with Cormark Ocampo

proceed question. may You your with

David Ocampo

to back last strategic would down morning a out wanted the that on door. on investment quarter every a everyone! piece that but third just Like not the other you're – Thanks! circle of dollar I think by ratchet fund Good the the I the it, you the piece guys for government funding. mentioned portion, putting

do get million how guys guys you you'll past? to you total think that $XXX that the So at were alluding much in about

Rajat Marwah

go down right. shareholders. the So will capital it’s – on based so you're by one-third allocation towards It of

we include the So on how the the and on are basis, subject NCIB include that’s has SIB a that NCIB dividend will will and the quarterly much be paying to that pick-up. number disclosed it happened

So if it CADXXX be will it of $XXX one-third one-third and counted. of is it, million that’s million

So of the take loan the available. for not most of as will everything gets if when – planned be year, you executed rest the CIB

Michael Garcia

David, that's an I say because of value story is compelling of SIB. Mike. this exciting would the the

we’re that really was the we're – believe the CIB, So we're flows SIB the attractive, or strong I'm was sorry, in about and although that the executing. generating faith about excited very SIB cash really – have we

David Ocampo

on would much number How it a Okay, A that's be that of the of guys fixed in I’m presuming locked be at I could helpful. at contracts. then of is you CapEx, announced – helpful breakdown even and your know rates. $XXX now million

Rajat Marwah

Sure.

off XX% so – percentage has off last down our locked contingency available, over balance know CapEx we to up time over grown So to the we is you opened. XX% contingency We of is around of still from topped the the when have the most XX%. have XX%, and XX%,

and you is know done. locked getting it's balance XX% up still So over the

David Ocampo

you can have you employee gun the I as at jumping may helpful on as time? guys for that's this Okay, disclose update upcoming the any agreement and do here, be much

Michael Garcia

XX expires both employee you're here discussions and unions, one specifics, a about correct we the Algoma being I that everybody can would at in in The conversations that share are currently Yes, July. engaged the unions with upcoming agreement. the are Without years. David! to we we you plus that of any at tell haven't Hi work in with productive end experienced stoppage remind current able

productive expect we weeks So come. in the to to continue conversations

David Ocampo

over. line the hand I’ll Thanks guys. questions. my much that's so Okay,

Rajat Marwah

David. Thanks

Operator

Anoop Our comes Prihar VIII question with next of Capital. the from line

your You may question. proceed with

Anoop Prihar

to Just was million breakdown a EAF morning! that for Good a rough Of in on back how terms, the dollar and the how sec. you can give the much quarter the $XX us much plate the spent, you mill initiative? was CapEx guys

Rajat Marwah

not Most plate much, of this plate quarter. mill spent it – getting is the mill is

be the will it So EAF.

Anoop Prihar

majority So that EAF? was of the

Rajat Marwah

absolutely right. That's

Anoop Prihar

I understand Okay. your I comments, make of And previous giving math. just breakdown remaining, then to back when the to just were Rajat you the the want contingency sure

You XXX you your have mean I that XX% have does you is is should that thinking the the about way about that's of in remaining, – XX% left, said the remaining spend? buffer that so be

Rajat Marwah

not No, of CapEx remaining the its that's XX% contracted yet.

I of So for contingency the plus contracted XX% been not as much has budget said used. been has on and

we in balance where XX%. a available, contingency is huge the So over which are a has stage

Anoop Prihar

I'm its little So confused, a of XX%, what? XX% when say you

Rajat Marwah

XX% the of out XX% of XXX. remaining to spend

Anoop Prihar

Got you.

Thank it great. for That Okay, me. you. was

Rajat Marwah

Okay.

Operator

comes Shaath the line question of from next Ahmad with Securities. Our Beacon

You may question. proceed with your

Ahmad Shaath

the oil Yeah, guys! a one on I morning had good incident. quick spill just

Just if insurance color maybe of cover that guys is authorities in potential how any? that. Are on that finds it on expecting some the with discussions front any on and to you

Michael Garcia

Thank the incident steps were officials that's really I the through and safely have size would very would you be was be all share all spill working next and the about of you required a the also don't can't determination It final finds those was carriers. we with the insurance We potential for but of say discussions what I any disappointing share anything and now, had appropriate thank that finds. our or we're and around contained the source what yet Ahmad! have the can question. notified, I may right the all color and

Ahmad Shaath

you. then front. And contingency on that. problem, maybe appreciate No the back I thank

the did and was percentage from remind you much total that contingency how contingency? So just spend the us again, of what

Rajat Marwah

of of that not the we’ve XX.X% contingency. not project was spent – and it So total much we have

spend, XX% remaining. lets the say XXX available of of which So is the is remaining XX% much that and that represents of over contingency

Ahmad Shaath

guys. tracking it, within Perfect, budget. hear. That's ahead perfect! of Thanks the to you’re great So well

Operator

next RBC from Our of Alexander Markets. line comes Jackson question the Capital with

your with proceed may You question.

Alexander Jackson

for costs, my impacts seeing pressures, you I'm guys question. and play to any where you and just Thank that are quarter what thanks taking Yeah, be as from feeling well. quarter-over-quarter you. last if the into current, might there's be guys might curious on offsetting any coming

Rajat Marwah

pressure a natural From all perspective cost Alex. increase you sits the now, continues to power. it commodities, inflationary refractory due Sure the in it's gas where know alloys, right whether

this we to have other same pressure impacting in is us well. quarter earlier coal CADXXX only I this on made as point year-over-year much expect continuing better onward. that from The increase start have the So have on is as than the based coal quarter market would still which I It’s will where make, a which the that well, contracts pricing done, currently. we coal the

and working producing will definitely affect we and strip cost as continuing downtime that in on mill, progress to on side, and this out floor. see plate the thing the the be only keeping the will point we well, we’ll have and more the So capital pressure other quarter it in is that as this material

Alexander Jackson

maybe one it, that’s And then follow-up. helpful! Got just

CADXXX able your dollars coal per ton impact operating increase dollar impact quantify the ton steel specifically? are on of costs per ton On you from that on to per increase, your a

Rajat Marwah

to XX% cost. That’s that the goes to coal roughly XX% of

Alexander Jackson

Okay.

per increase ton coal of CADXX So increase? the at per steel from basically ton

Rajat Marwah

Yes.

Alexander Jackson

very all That’s much guys. Thanks from it. Got me.

Rajat Marwah

Thanks Alex.

Operator

Imperial with Capital. question from of Kirk next Our comes line Ludtke the

with proceed question. your may You

Kirk Ludtke

leaving congratulations You’re done! And Michael! shape. everyone! Well Algoma great to in Hello

Michael McQuade

– thanks sorry. Alex Kurt, you, Thank

Kirk Ludtke

it shares? as can you provide bit in sized the to overhang a up maybe bid, substantial respect is think more the it issuer enough to to clean of how cleans and you With up specifically, do you – little it any big background

Rajat Marwah

Sure.

to So generating talked the know means, Mike will sizing back about, that the our not generated, we a I’ll Mike from have future. which in perspective, cash that is within that you be and living principles go allocating we

pursuing, use the you we we as cash de-risk March the and what for considering stock looked possible, are we looked much at with to is overhang. operations is spend which CapEx, need and at we using as end, cash balance allocate keeping and our to where So, is at much how are to how EAF us the best mentioned to

the are stock. buying back think I we

So number overhang that’s as as the is how came far concerned. about

all this it’s know take to or of say not. You difficult the will overhang whether care

Kirk Ludtke

it. Thank helpful. that’s Got you,

You mentioned that a a some and your of and Can more specifically end you’re give you’re us markets; bit? oil market down color across that Maybe number by seeing little gas. you construction, seeing strong auto? end demand what auto, break in

Michael Garcia

is think Kurt! is, have supply for particular these than, lot details in more produce instance to a of example I units. it facing Hi some order struggling This industries, in of maybe they their is some perfect it even chains other of issues of of Mike. though part with Don’t you for auto are that a

the auto example the unmet the what like. I’m talking as as As the consumers you the that cars, of used order industries we look on bullish the automobiles new see can books demand, that at well fundamental demand those for demand for by in market. the products, and we car of for pretty remain in looks healthiness

of their demand, optimistic and beyond view of help? that to current our continue try demand. we markets our their fundamental to several and that our inform helps steel these important are into So Does customers that to look markets

Kirk Ludtke

does. It very Thank talk you you out far orders? about much. Can taking you’re how

Michael Garcia

Yes.

our weeks, more with we book So order lead in is versus which a ago. line few times as our were months I would characterize traditional roughly where six

Kirk Ludtke

completion the old you? new thank facility to buy mill? get that Can that lastly, the downtime take Okay, before of downtime taking, to more does you in time you’re much And have the how the you you. like that

Rajat Marwah

which to off from finish the the quality on year month-long mill, taking downtime increase is of taking, end are perspective, to upgrade we’ll to be towards we a the that and plate downtime volume. downtime this another So is the mill plate the

end project, we mill well different into this of then XXX,XXX and modernization markets volume to are So improving improving tons. by is the quality plate our where part going as to go

in side upgrade So other time. later this this we plate the are mill then point year, and on no specific contemplated and taking upgraded another downtime at

Kirk Ludtke

you very Thank Great! much.

Operator

[Operator Instructions].

BMO next of Our the Markets. David with comes from Gagliano line question Capital

may with your You question. proceed

David Gagliano

just quick have I Thanks. couple a of follow-ups. Hi!

that the all, my plate, between can lead break coil hot-rolled on down six the right difference First of That’s and is first time, between now? the times you and weeks terms if the question. lead of in so, average two

Michael Garcia

average the book. anything it’s share order beyond But it’s and roughly that. right our really the can’t of David, average I

David Gagliano

apologize, you okay. SIF assuming was terms I SIF a And then the I the there the how I explain it Dutch obviously that interplay but can loan auction the forgivable that happens, if affect thought it, mention, missed just part loan? of and have Okay, between one does, of clarification. SIB, does in the might

Rajat Marwah

not affect loan mentioned, go loan used affects contemplated and is as cash It this is the there loan of drawn only is That loan. and we that does drawn. where the situation it not kind Mike loan a to as be along. supposed CIB something SIF that where will getting So be getting more the generated

affects So loan. it million. loan, It the SIF the CIB only CADXXX not the does affect

David Gagliano

it. fine, alright. that’s Thanks. appreciate Okay, Alright, I

Rajat Marwah

Thanks David.

Operator

with line from Our question of Ahmad comes Beacon Securities. the Shaath next

with You your questions. may proceed

Ahmad Shaath

You the know plate project. just I on had modernization follow-up a

like November. its looks So by set to complete

ramping the following we the up to should when from shipments with added you start the expect customers, volume? qualification So

Michael Garcia

on depend or will really volume the project. comes with the added that comes steel steel the additional the Ahmad, EAF that excess

two we’re for us the a and and was - investment to and improvements quality plate other the quality of and current allows offer the of think plate. descaling plate these address in in us market before our position challenge terms the in in really I that levelness making mill phases,

making, in the modernization of already we’re be jump quality excited of really seeing we’re to able ramp-up still – additional that indications So But the project, comes the steel. or excess we’re the of from with bring additional we’re recent the plate this about opportunity market to outage. much excess the going the really volume even or will and very the we’re really early the plate quality with though most to EAF

Ahmad Shaath

the for you Thank Perfect! clarification.

Operator

end we Michael call gentlemen, to I this question-and-answer back and over remarks. would today’s turn have the like Ladies Garcia for Mr. of reached to session. closing

Michael Garcia

quarter look continued forward progress Laura. fourth to Algoma And in again summer. earnings fiscal later updating our our in and your results and you We we on conference you report you, thank fiscal Thank our for quarter your participation fourth call results this Steel. when interest for XXXX

Operator

concludes conference. This today’s

of time. You this for disconnect enjoy rest your your lines participation, day. and at may the you your Thank