Q3 2025 Algoma Steel Group Inc Earnings Call
Speaker Change: Greetings and welcome to Algoma Steel Group's third quarter 2025 earnings call. At this time, all participants are in listen-only mode. Every question and answer session will follow today's formal presentation.
If anyone should acquire operative assistance, please press star zero from your telephone keypad.
It's a reminder, this conference is being recorded [inaudible]
Speaker Change: It's now my pleasure to introduce Michael Moraca, Vice President Corporate Development and
Sir, you may now begin
Speaker Change: Good morning, everyone, and welcome to Algoma Steel Group Bank's earnings conference call for the three- and nine-month periods and a December 31, 2021-24.
Speaker Change: I would like to remind you that comments made on today's call may contain forward looking statements within the meaning of applicable securities law, which involve assumptions and inherent risks and uncertainties.
Speaker Change: Actual results made differ materially from statements made today. In addition, our financial statements are prepared in accordance with IFRS Accounting Standards, which differs from US GAP, and our discussion today includes references to certain non-GAAP financial measures.
Speaker Change: Last evening we posted an earnings presentation to a company today's prepared remarks.
Speaker Change: The slides for today's call can be found in the investor section of our corporate website.
Speaker Change: With that in mind, I would ask everyone on today's call to read the legal disclaimers on slide two of the accompanying earnings presentation and to also refer to the risks and assumptions outlined in the management discussion analysis for the three and nine month periods and at December 31st.
Speaker Change: Please note that our financial statements are prepared using the US dollar as their functional currency and the Canadian dollar as their presentation currency. [inaudible]
Speaker Change: As previously reported, the company has changed its fiscal year end from March 31 to December 31, resulting in a nine-month fiscal reporting period ended December 31, 2024.
Speaker Change: For ease of comparison, we will focus our comments today on the three and twelve month periods and the December 31st, 2024 and 2023.
Speaker Change: Please note, all amounts referred to on today's call are in Canadian dollars unless otherwise noted. Following our prepared remarks, we will conduct a question and answer session.
Speaker Change: I will now turn the call over to our chief executive officer Michael Garcia. Mike?
Speaker Change: Thank you, Mike, and good morning, everyone. Thank you for joining us to discuss our fourth quarter and full year calendar 2024 results.
Speaker Change: Employee safety remains our foremost priority at Algoma Steel. I'm pleased to report significant improvements in our lost time injury performance throughout 2024.
Speaker Change: With our electric art furnace project, approaching first art and first steel expected in April , our site continues to be a hub of activity, making our safety focus more critical than ever.
Speaker Change: Before diving into the details, I want to highlight three important themes.
Speaker Change: Our quarterly results reflect the continued challenging conditions across global steel markets, particularly due to tariff uncertainty, which led to lower realized prices during the
Speaker Change: Our balance sheet and liquidity position remains strong, with over 267 million in cash at quarter end and total liquidity of 630 million.
Speaker Change: We are well-funded to complete our transformative EAF project on budget and on schedule.
Speaker Change: We are in the final stages of E.A.F. commissioning and expect first steel production in April .
Speaker Change: Our fourth quarter results aligned with our previously disclosed guidance for both shipments and adjusted EBITDA. These results reflect the challenging market conditions we've experienced, particularly in the second half of 2024.
Speaker Change: Steel Pricing was affected by U.S. election uncertainty, interest rate concerns, soft demand, and tariff and trade war tensions, all of which have influenced our customers by behavior.
Speaker Change: In summary, softer real-life steel prices and higher cost more than offset higher shipments.
leading to an overall decline in revenues.
Speaker Change: as well as adjusted EBITDA and cash flow generation compared to the prior year.
Speaker Change: Our plate shipments for Calendar Q4 2024 reached approximately 82,000 tons, up from 73,000 tons in Calendar Q3 2024.
Speaker Change: Looking ahead, we expect our Q1 2025 plate production to be directionally higher as we look to capitalize on our position as Canada's only discrete plate producer and execute a steady ramp up towards our expected annual run rate capacity of over 650,000 net tons.
Speaker Change: We are evaluating market conditions as they are changing rapidly, and we are dynamically adjusting our product mix between plate and coil products where possible based on capacity and contractual obligations.
Speaker Change: This approach continues to provide mixed benefits as we focus on higher margin products.
Speaker Change: Now for an update on our Transformational Electric Art Furnace Project.
Speaker Change: Despite the harsh winter, including particularly heavy snowfall in November and December , cold commissioning activities began in the 4th calendar quarter of 2024 and are progressing in the 1st quarter of 2025.
Speaker Change: These activities include the installation, testing, and validation of critical equipment and systems to ensure operational readiness.
Speaker Change: including EAF charging cranes, as well as the fume treatment plant and water treatment plant.
Speaker Change: This phased approach allows for thorough assessment and adjustments before transitioning to hot commissioning.
Speaker Change: With work advancing as planned, first steel production is expected in April 2025, marking a significant milestone in the project's execution.
Speaker Change: We have no changes to our expected final budget on our excited to begin EAF operations in 2025, and despite navigating challenging market conditions, we remain well positioned with our ballad sheet and liquidity profile.
Speaker Change: When both furnaces are up and running, we expect to see improved operational efficiency and overall cost structure as we steadily ramp our shipping capacity to approximately 3 million tons per year, matching steel production to our downstream finishing capacity.
Speaker Change: As of December 31st, 2024, cumulative investment for our EAF project was at $740 million, including 68 million during the calendar fourth quarter of 2024.
Speaker Change: All material aspects of the project have been contracted and we anticipate completing the remainder of the project, including those structured as time and material agreements, within 5% of the upper end of the previously announced budget range.
Speaker Change: Regarding the evolving tariff situation between the US and Canada and its potential impact on our business, the implementation of tariffs on Canadian steel and aluminum imports has introduced even more uncertainty into the North American steel market.
Speaker Change: We expect the Canadian government's swift and appropriate response will support the industry as we weather the impact of tariffs.
Speaker Change: Given the deeply integrated North American supply chain, we believe rational dialogue will prevail between these two close allies, restoring normal steel trade between Canada and the U.S.
Speaker Change: While we expect these tariffs to pose a significant challenge, we expect that our transition to EAS steel making will strengthen our cost structure and enhance our ability to navigate market uncertainties over the long term.
Speaker Change: In summary, despite very challenging market and weather conditions, we've maintained our focus on the safe operation of existing facilities, continued our ramp in plate production, and achieved the final steps toward the first steel production at the EAS.
Speaker Change: As I've said before, the near-term uncertainty in steel markets and uncertainty around tariffs cannot diminish our excitement for what's happening at our site, and a tremendous step forward it represents at our company and community.
Speaker Change: I'd like to once again thank all of our employees for their hard work, dedication and professionalism.
Speaker Change: Thank you, and I will now turn the call over to Rajat for a deeper dive into our financials. Rajat, thanks Mike, good morning and thank you all for joining the call.
and cash used in operating activities of 76.9 million.
and 362 million under our evolving trade facility.
Speaker Change: Now let me dive into the key drivers of our results.
Speaker Change: We shipped 549,000 tons in the quarter, up 6.3% versus the prior year quarter.
Speaker Change: Net Sales Realization Average, 976 Patan, compared to 1079 Patan in the prior period.
Speaker Change: The decrease versus the prior year level reflects weakening market conditions partially offset by improvement in value added mix as a proportion of sales.
Speaker Change: Flight pricing continued to enjoy premium relative to heartroll co-ocular in the quarter.
as the lower realized prices, more than offset hardships.
Speaker Change: On the cos side, Algoma's cosperton of steel products sold average 1032 in the quarter, very similar to the prior year period.
Speaker Change: Cash used in operations total 77 million for the quarter compared to a use of 47 million in the prior year period.
Speaker Change: Inventories at the end of December 2024 were 8.79 million compared to 8.87 million at the end of December 2023.
Speaker Change: Looking forward, we remain on track to release approximately 100 million of working capital from March 24 to March 25.
Now let me run through the full calendar year comparisons.
Speaker Change: Bishop 2 million net tons for the full year 2024 compared to 2.2 million net tons in the prior year.
Speaker Change: Next sales realizations average 11 or 7 per turn down 5.6% versus the prior year reflective of softer market conditions on average across the calendar year.
Speaker Change: Partially offset by improvements in value-added product mix as a proportion of steel sales.
Speaker Change: This resulted in steel revenue of 2.2 billion compared to 2.6 billion in the prior year.
Speaker Change: On the cross side, Algoma's cost of steel product sold average 10.54 per tonne for the year, an increase of 7.4% over the prior year.
Speaker Change: The main drivers of this increase were higher variable cost on account of greater consumption of purchase coke and lower shipment volume.
Speaker Change: The adjusted a bit of for the full year was 22.3 million, representing an adjusted a bit of margin of 0.9% compared to adjusted a bit of 319 million and an adjusted a bit of margin of 11.2% in calendar 2023.
The decrease was mainly attributable to lower shipments.
Lower Price, Realization, and Higher Cost
Speaker Change: Cash flow from operating activities for calendar 2024 was 82 million compared to 269 million in calendar 2023.
The decrease year over year was primarily due to factors previously discussed.
Speaker Change: We remain focused on driving down working capital levels and continue to expect a release of working capital as we transition to EF.
Speaker Change: Also on the cash flow front, we expect to receive an advance on insurance payouts directed to the futility corridor and blast furnace outage a year ago, with the balance of payout expected by year end.
Speaker Change: Before I turn it back to Mike, let me make a few comments on our calendar first quarter 2025 results today. Due to persistently weak market demand on account of trade uncertainty, we reduced our auto boom during the current quarter.
Speaker Change: Couple with a brief unplanned outage at a blast furnace in February , we expect shipmen in this quarter to be sequentially lower than the fourth quarter.
Lightly in the mid-400,000-ton range.
Speaker Change: Along with lower pricing, this is expected to result in adjusted a beta that is sequentially lower as compared to calendar 4th quarter 2024.
Speaker Change: Despite the near-term weakness and trade uncertainty, steel pricing has jumped the last several weeks and we expect those price improvements will start to be reflected in our results next quarter.
Michael Garcia: I'll now like to turn the call back to Michael Garcia for closing comments, Mike.
Michael Garcia: Thanks, Rajat. In summary, despite very challenging market and weather conditions, we've maintained our focus on the safe operation of existing facilities, continued our ramp in plate production, and achieved the final steps toward the on-time first arc of the EAF project.
Michael Garcia: 2025 represents an exciting time in the story of Algoma, as we expect to commence first Steel in April , with a rampant production and first arc at the second furnace coming at the end of the year.
Michael Garcia: This will usher in the next phase of our company that defines the future of Algoma, provides the foundation for long-term value creation for our stakeholders and solidifies our leadership position at the forefront of green steel production in North America.
Michael Garcia: As I've said before, the near-term uncertainty in steel markets and concerns around tariffs cannot diminish our excitement for what's happening at our site and the tremendous step forward it represents for our company and community.
Michael Garcia: Thank you very much for your continued interest in Algoma Steel. At this point we would be happy to take your questions.
Operator, please give the instructions for the Q&A session.
Speaker Change: Thank you. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad and a confirmation tone will indicate your line in the question queue.
Michael Garcia: You may press star two if you'd like to withdraw your question from the queue.
Michael Garcia: For participants that are using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.
Michael Garcia: One moment, please, we'll be pulled for our first question. Thank you
Speaker Change: Thank you. Our first question is from the line of David Ocampo with Cornmark's Curities. Please receive your questions.
David Ocampo: Hi, thanks for taking my questions. Just a first one here, Rajat. Maybe you can clarify a little bit, I think, quite catch it on the blot's brightness outage that happened in the quarter. How many weeks was it out for and what's the expected cost of bringing that back online?
Rajat: Yeah, it was, it was not out for a long time, it was, you know, a couple of days to a week and
Rajat: It was regular. It was not a significant issue that led to it, so not significant cost involved with it. It was more to do with the heavy snow, the extreme weather condition that we faced.
Speaker Change: Okay, and then maybe just turning the page to Taros, which I imagine.
Speaker Change: We'll be front and center for you guys but when we look at crew prices and think about your cost profile as a blast from this operator, are you guys still able to generate positive EBITDA or at least break even EBITDA with a 25% tariff on your shipments to the US?
Speaker Change: When you start looking at where the pricing is, right now actually it's going to 9.50 as you see the print on CRU.
Speaker Change: You know, it starts breaking even to a little bit money on the on the on the current cost side on the on the coils that are that go into into the U.S. So so your assumption is right that it's
It's gone higher than than what we were saying and
Speaker Change: David, this is my plates also gone up even more than coil, I think since inauguration day both products are up 30 to 35 percent.
Gauta, then that's, you know, for...
Speaker Change: At least for the index that we're seeing through prices and maybe that pertains more to the U.S. But I'm curious what you guys are seeing for Canadian sheet prices, especially given that there could be a potential oversupply with clubs moving from the Stelco's shipments down to the U.S. to avoid those tariffs.
David, you're right. The Canadian market has
Speaker Change: I would say oversupplied with coil right now and undersupplied with plate so that the announcements by Canada yesterday, putting a tariff on U.S.
Speaker Change: Steel will help. There's about 3.5 million tons of U.S. Steel in the...
Speaker Change: Canadian Market over the last 12 months. That's an opportunity for both coil but more so even to start moving up and price in the Canadian market.
I guess if you had a crystal ball like me.
Speaker Change: How much of a discount do you think Canadian cheap prices will be versus the crew index once those tariffs do come into place? I know it's a bit of a tougher question to answer, but perhaps you can provide some color there.
Speaker Change: When you leave the dynamics on products and customers and preferences, if you simply look at the math.
Speaker Change: if Canada is oversupplied and there is 25% tariffs, so you will at least see closer to the 25% variation in the price in US versus Canada because there's more sheet available in Canada
Speaker Change: You know specific type of heartrolled or you know little value add preference customer wise and and other things so it will range from let's say 22 25 maybe 28% but again just a guess nobody knows how the market will settle
Speaker Change: But logically, that's how the math works [inaudible]
Thank you.
Speaker Change: Okay, I'll hop back in the key, I'll let other people ask some questions.
of course. Thanks, David. Thanks.
Speaker Change: Our next questions are from the line of Katja Jancic with BMO Captain Markets. Please
Katja Jancic: Hi, thank you for taking more questions. Maybe staying on the tariff. If the tariff stick, and you just mentioned at 950 crew price, you're essentially breaking even.
Speaker Change: Are you thinking of taking any mitigating impact effects? For example, are you looking at potentially lower in cost? Is there anything you can actually do at this point?
to mitigate what's going on.
Michael Garcia: Hi, Katja. This is Mike. Obviously, lowering cost is always our focus, and with the, you know, being a couple of weeks away from EAS production, that is the, you know,
Michael Garcia: Biggest lever that we have to lower cost as a company and as we ramp up that EAF production and eventually decommission our blast furnace and...
Michael Garcia: and Cokeov and that will reset our cost basis significantly. With that being said, we've been pursuing an aggressive cost reduction plan for really several months now, even before tariffs were...
Michael Garcia: The threat that they are now, and we've realized gains, there's more cost savings initiatives that we're pursuing, so that's kind of an ongoing thing at all costs, or at all times I would say.
Michael Garcia: and just on the numbers, the numbers keep changing so quickly from the market perspective and
Michael Garcia: Follin and US and you know we've been working on a lot of cost reduction but assuming that where it is I mean the math is easy to do on what it will cost us or how much money we'll make on what pricing.
Michael Garcia: and that's only for the sheet side, without where you add and without plate.
Just to clarify, you said 650 is the all-in cost.
for ACRC right now, for heat.
Yeah, you're joking.
Michael Garcia: and then maybe just on the insurance comment, can you remind us how much you're expecting to get in and maybe more specifically what the timing of that is?
month or so.
Michael Garcia: and thereafter we expect everything to get settled during this calendar year.
Speaker Change: and how much of the 100 million is in the next month?
for your term. Anywhere from 20 to 25 million?
Speaker Change: And then I think Rajat, you mentioned before on the Working Capsule Reliefs.
Can you just remind us?
How much and the timing?
Speaker Change: And continuing on that path, we'll see more reduction coming as we transition to EF as the stock of iron ore and coal and coke comes down and we put scrap in, but that probably will become alert.
Speaker Change: over this year and next, most of it coming in the next year.
Speaker Change: and the towers do not change the $100 million that you're expecting to release in this quarter.
No.
Okay, I'll hop back into the queue. Thank you.
Thanks. Thank you, Katja.
Speaker Change: Our next question is from the line of Ian Gillies with Steeple. Please receive your questions.
Morning, everyone.
Good morning.
Speaker Change: Just a clarifying comment, you mentioned break even at 9.50 C.R.U. Is that on the consolidated?
Speaker Change: on a consolidated sales basis, or is that only on the US-related sales?
Speaker Change: So, I did say, and I just want to clarify that, that…
Speaker Change: 25% RF. So, that's just to clarify, and the cost will be 650 for us, for Hartroll
Speaker Change: and played definitely the cost will be higher but the pricing is substantially higher.
Understoy. Does that clarify?
Yeah, that's helpful. Thank you.
Speaker Change: As it pertains to toggling between H.R.C. and Plate, can you maybe talk a little bit about...
Speaker Change: Where you think you could get plate production to this year in the event that tariffs happen for the entirety of the year and how you can go about really toggling that piece just because there's been a bit of push and pull the last year on
Speaker Change: What you thought you might actually produce in calendar year 25.
Speaker Change: The Quarters to come. You know, our next kind of intermediate.
Goal for play is reaching the 40,000.
Speaker Change: Chun per month level. I think that we're very confident of that. It takes a combination of
Speaker Change: You know, and you get this this typical debate in a in a steel company is you know, do we have to?
Speaker Change: Have the operations and demonstrated capability first or do we have to have the sales first and the ops guy will say well we have the sales I'd be there and the sales guy would be well if we had what the customer wants we would be there so I think you actually both almost simultaneously you have to demonstrate great
The
The delivery performance, the quality.
and the reliability as a supplier to the customer.
Speaker Change: at the same time that you kind of need sales to put in, you know, in front of your meal to ramp up.
Speaker Change: We feel very confident about getting to this next intermediate step of 40,000 tons and then going beyond that as the year progresses. It's the plate market in Canada is...
Rapidly Changing, we're the only discrete plate producer in Canada.
Speaker Change: But even with that being said, and it's not a humongously large market, but in the last 12 months...
Speaker Change: There was more U.S. sold plate in the Canadian market than Algoma sold plate so that gives us a great opportunity with the ad tariffs that the Canadian government announced yesterday.
Speaker Change: to go out and capture more market share and more plate sales in Canada. We've already in the last 24 hours you know had discussions with
Speaker Change: The folks in the supply chain for the two Canadian ice-breaker ships that were announced. We've made lots of marine plate in Algoma's history, we've made armor plate, so to the extent
Speaker Change: The defense spending and shipbuilding starts to ramp up in the Canadian market. We see that as a great opportunity especially if the government implements a buy Canadian requirements for that build.
So, I think that's how we see the plate...
Speaker Change: Ramp up here at the company. Again, it's a really important opportunity for us and we're focused on it, especially during this uncertain time of tariffs.
Speaker Change: Understood, that's helpful. There's been a lot of commentary in and around the Canadian government supporting the steel industry.
Speaker Change: I'm just curious as to whether it becomes something more than just retaliatory tariffs.
Speaker Change: and whether you think something more along the lines of government loans or government grants may become available, not just to Algoma to the broader steel industry and whether that would be something you're amenable to.
Speaker Change: You know, vocal support that we're going to, you know, we're going to protect
Speaker Change: Canadian workers will have their bat and I'm trying to channel my inner Doug Ford here but we've seen the same comments and I can tell you that we have already engaged in
Speaker Change: One-on-one discussions with government officials at both the provincial and the federal level at exactly what that means and what mechanism or what form that
Speaker Change: Pledge of support might take, so there's nothing I can disclose now, but those discussions are ongoing.
Speaker Change: Understood. Last one for me in the event tariffs get worse from here and they move
and you think about...
Speaker Change: the operating platform for the business or the operating parameters. He had continually, continue running the furnace at close to or near to 100% utilization, just to keep it full and so on and so forth. And stockpile inventory or do you try and reduce throughput and?
that manage your sales volumes that way.
Speaker Change: Well, I mean, as you know, Ian, when you're running a blast, it's very...
It's very difficult to-
Model A Better Financial Result
Speaker Change: with a blast furnace that you aren't running at full capacity utilization so you know that's
That's what we're dealing with, at least for the next
You know, 12 to 18 months while we ramp up the E.A.F.
Speaker Change: So then your question was about inventory. It's difficult to just build a stock of coil inventory without a customer because
Speaker Change: You know, there isn't great amounts of standard spec hot-rolled coil that you can just put on the ground and have a high degree of comfort that...
Speaker Change: You're going to sell that coil, you know, easily in the spot market or, you know, with customers with plate. We're certainly going to take the opportunity because plate is so important to us this year.
Speaker Change: We need to rebuild our plate slab stock a little bit.
Speaker Change: in stock, finished plate without customers assigned yet and we sell out of that so we'll make sure that both the inventory levels in those two items are where they need to be to support the opportunities on the plate side of our business.
Speaker Change: You know, but in general, you know, we're not going to put thousands of tons of coil on the ground and in the hope that, you know, the tariff go down and we can then start shipping coils into the U.S. to customers that, you know, that we have or would go acquire. [inaudible]
Speaker Change: Does that help? Understood. Yeah, I know that helps. And it lasts from for me and likely at the margin, but just curious whether you anticipate receiving any carbon tax rebates in 2025.
Thank you. Thank you.
Speaker Change: for surely to come. And the second one is under discussion, so we will see how it goes through, but we are expecting 7.5 million to come this year.
Speaker Change: Understood. Thank you very much. I'll turn the call back over.
Thank you.
Speaker Change: Are these questions that are followed from the live David O'Campo with Caremark or Mark Security, please just see with your questions.
David Ocampo: Thanks. I just wanted to circle back on my previous question about Canadian discount prices that's happening in the market. But
David Ocampo: More specifically that you guys have a pretty large contract in order book and I think that's all based on crew prices. So are your customers or Canadian customers giving any pushback if you know spot prices in Canada are at a 20 to 25% discount relative to crew?
David Ocampo: David, most of the contracts that we have are in U.S.
David Ocampo: very little in Canada, Canadian market mostly works on spot and that's why you're seeing this kind of anomaly also happening in Canada. So Canadian pricing are lower and most of it is spot, the US guys are in contract and it goes through CRU.
Speaker Change: Okay, and then just a last one, just on the EAF ramp, first production, expected in April but I was hoping you guys could provide it a little bit more color on how much production you guys can expect on a quarter by quarter basis until you're fully ramped in 12 months.
Sure. So, in our plan for the full year, the remaining...
Yes.
Speaker Change: 9 months is around just over 200,000 tons of EAF production. The majority of that will be on EAF, the first EAF that we're starting up in a couple weeks, and it'll be a
Speaker Change: a pretty, a relatively steep ramp on the towards the back half of the year.
Speaker Change: You know, we want to be making our first EAS Steel.
Speaker Change: The plan is in April , as we shared, there won't be significant amounts of steel produced in the second calendar quarter, but then there'll be more in the third and I would say much more in the fourth if that helps.
Speaker Change: Okay, and then, Rajat, you think the 650 break-even that's on a combined basis between the EAF and Bloss furnace, or is that one or the other?
So that's that's this year on the blast furnace, EF
Speaker Change: EF will be, as I mentioned we have most of the fixed costs on the EF, barring some so the additional tonnage that's coming.
from the EF, the GIF contribution.
Speaker Change: because most of the fixed costs are there, so that will be scrap and other variable cost.
Speaker Change: Electrodes and others and a lesser selling price. So it will be on contribution. Once it's done, as we said, EF will be Scrap plus 220 for us, 200 to 220 U.S. for us for full conversion and that's how it will play out.
Okay, that's perfect. That's all from me. Thank you.
Thanks David.
Speaker Change: Our next questions are followed from line of Katja Jancic with BMO Capital Markets. Please or see your third question.
Hi, thank you for seeing my question again.
Speaker Change: on the volume for this year. So if we have 200,000 tons from the EIF, how to think about it and the first...
Q, you already submit 400 in reds.
Speaker Change: How to think about the volume in the rest of the year from the blast furnace overall, and then also how to think about the split between plate and H or C given that maybe there's a little more opportunity on the plate side.
Speaker Change: Correct, so it will be, you know, anywhere from 2 million to 2.2 million tons on the, in the total, I mean you can take 2.1 to 2.2 just to, just to narrow the range, from overall shipment for the calendar year.
35
Speaker Change: or for the balance of the year 35 or 1000 tons a month, 240,000 tons a month. So that will be a shipment on the plate side and overall 2.1 to 2.2.
Okay, thank you.
Speaker Change: Thank you. At this time, I would like to turn the floor back to Michael Moraca for closing remarks.
Speaker Change: Thank you again for your participation in our calendar fourth quarter, 2024 Earnings Congress call and your continued interest in Algoma Steel. We look forward to updating you on our results and progress when we report our calendar first quarter results later this spring.
Thank you.
Speaker Change: This does conclude today's conference. You may disconnect your lines at this time. We thank you for your participation and have a wonderful day.