The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: David Ocampo - Cormark Securities Inc - Analyst
: Thanks for taking my questions, everyone. I guess my first one is just on shipments for the June quarter. I mean that's running below the normal
run rate, even though Plate shipments seem pretty solid at 65,000 tons. Just curious what the lower volumes are attributed to?
Is it is it mainly just weaker industry conditions or is there some other factors that are contributing to that?
Question: David Ocampo - Cormark Securities Inc - Analyst
: Let me maybe for you as well, just on the CapEx in the quarter, I think it was close to $120 million and $50 of that one to the EAF. Curious what the
other $70 million was attributable to that some of that CapEx leak into the coke ovens that you guys had to do repair?
Question: David Ocampo - Cormark Securities Inc - Analyst
: Okay. So the CapEx potential recovery from insurance providers, that's on top of the $120 million to $130 million of lost EBITDA that you guys are
trying to call back?
Question: David Ocampo - Cormark Securities Inc - Analyst
: And then just a last one for me. Before I hand the call over, I mean, you guys are nearing the completion of your EAF projects. Just curious when
we think about the range of outcomes for the total costs, what are the risks that are still out there that would push you guys above the top end of
your guidance.
And then on the flip side, what would cause you guys to coming closer to that $825 number, just given that the $800 million does appear to be
locked in contract prices already?
Question: David Ocampo - Cormark Securities Inc - Analyst
: Yes, I guess those two pieces of contracts that are left to be awarded, is that $25 million or $50 million or what's the order of magnitude that needs
to be contracted still.
Question: David Ocampo - Cormark Securities Inc - Analyst
: Okay, that's helpful. I'll hand the call over.
Question: Ian Gillies - Stifel Nicolaus Canada Inc - Analyst
: Could you as we get closer to the start-up of the EAF. Could you is there any update you can provide around the scrap strategy and where you
think you're at on that front as it could be a potential pinch points?
Question: Ian Gillies - Stifel Nicolaus Canada Inc - Analyst
: Okay. That's helpful.
On the on the Plate side, the ramps obviously can be pretty material over the next call it four to six quarters. Can you talk a little bit more about
how your commercial team is capturing market share and tends to cap or capture market share there? Because the input price has been quite weak
in recent weeks?
Question: Ian Gillies - Stifel Nicolaus Canada Inc - Analyst
: Okay. That's helpful. With that, I'll turn it back over.
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Thank you for taking my questions. Maybe starting off on the CapEx for fiscal year '25, can you provide an update what the total expected CapEx
is going to be?
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Is there still an incremental from the coke ovens that's going to spill into?
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Okay. And then maybe on the volume side, currently, what is the normalized volume you're seeing per quarter you can reach in a more normalized
environment?
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Maybe on that, how quickly do you think you can ramp up the EAF or how quickly can it stabilize?
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Okay. So just to confirm, during the startup basically the blast furnace will operate as usual or as normal. So it should be reaching normal production
levels. In other words, [550], let's say per quarter?
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JUNE 21, 2024 / 3:00PM, ASTL.OQ - Q4 2024 Algoma Steel Group Inc Earnings Call
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: And then maybe just one more, if I may, Mike, I think you said this quarter or in the first quarter. The Plate production is about 65,000 tonnes and
did I understand correctly next quarter if you are to 90?
Question: Katja Jancic - BMO Capital Markets Equity Research - Analyst
: Okay. Thank you.
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