Algoma Steel Group Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Katja Jancic - BMO Capital Markets - Analyst : Hi. Thank you for taking my questions. Maybe starting on the working capital just to clarify. Raj. I think you said that in this current quarter, the build is not going to be as much as in the recent past. Can you talk more about what's driving that? Because I would assume that it would be higher given the EAF start?

Question: Katja Jancic - BMO Capital Markets - Analyst : And can you maybe talk about how to think about that build up for the EAF sign?

Question: Katja Jancic - BMO Capital Markets - Analyst : And you said the side build is 30 to 40 million. Is that correct? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 4:00PM, ASTL.OQ - Q2 2025 Algoma Steel Group Inc Earnings Call I if I may, one more, on, I think Mike, you initially mentioned that for the current quarter, you expect volumes to increase a bit sequentially what will drive that increase? Because typically right in the December quarter, the the environment is a little softer. So we see most of your peers are talking about lower volumes.

Question: David Ocampo - Cormark Securities - Analyst : Thanks, thanks everyone. Rajat or Mike, maybe you could take this, but I was hoping you could comment on the timing and total insurance proceeds that remains to be delivered to you guys both from the damages to the property as well as the lost production that that occurred in the quarter. And then also in terms of timing and and total proceeds that could come from the Ministry of Environment Program.

Question: David Ocampo - Cormark Securities - Analyst : Okay. And, and just, just so I have my numbers right. I have you guys having paid 54 million in calendar 22? Does that line up with your numbers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 4:00PM, ASTL.OQ - Q2 2025 Algoma Steel Group Inc Earnings Call

Question: David Ocampo - Cormark Securities - Analyst : That, that was a cumulative so 22.

Question: David Ocampo - Cormark Securities - Analyst : Okay. That, that's helpful that really helps us from a modeling standpoint and then maybe just a last one for, definitely goes to you, but it does look like the diluted share count is equal to, to the basic share count this quarter. That's probably just because of the negative income. But in the past, if you look at the quarters, it did include all the warrants in the diluted share count. But I know the warrants can be settled on a, on a cashless basis and they're called about at 18. So what, what's the right way to think about the maximum dilution for everyone that's trying to model this one out?

Question: David Ocampo - Cormark Securities - Analyst : Okay. But those are my two questions. I'll hop back in the queue. Thank you, everyone. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 4:00PM, ASTL.OQ - Q2 2025 Algoma Steel Group Inc Earnings Call

Question: Ian Gillies - Stifel - Analyst : I asked about this last quarter. I'm going to ask again. The plate ramp, are you putting any additional thought or are you thinking about slowing that down at all or changing the mix in the near term? Just given that market seems to be a little over saturated at the moment. Pricing isn't great, etcetera.

Question: Ian Gillies - Stifel - Analyst : Understood that, that's helpful with respect to the EAF and the new cost budget put out just to confirm. But is there much left that could change in the updated budget or do you feel like you're kind of pretty much tied down there? And this is a final, final number?

Question: Ian Gillies - Stifel - Analyst : Understood that's, that's very helpful. And I guess last one for me, are you able to provide any context and how you think cost per ton may trend over the next couple quarters as you start to use more of your own cooking coal rather than some of the third party you've had probably a purchase and sitting in inventory?

Question: Ian Gillies - Stifel - Analyst : No, that's helpful and it's just a matter of us figuring out where plates, how much plate you're going to be putting out the door. So, anyways, thanks very much.