Q3 2025 Cleveland-Cliffs Inc Earnings Call

October 20, 2025

Your conference facilitator today.

My name is Donna and I am your conference facilitator today, I would like to welcome everyone to Cleveland Cliffs third quarter 2025 earnings Conference call.

Operator: Ladies and gentlemen, my name is Donna and I am your conference facilitator today. I would like to welcome everyone to Cleveland-Cliffs Inc. Q2 2025 Earnings Conference Call. All lines have been placed on mute to prevent background noise. After the speaker's remarks, there will be a question-and-answer session. The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially. Important factors that could cause results to differ materially are set forth in the reports on Forms 10-K and 10-Q, and news releases filed with the SEC, which are available on the company website.

I'd like to welcome everyone to Cleveland Cliffs third quarter 2025 earnings conference call. All lines have been placed on mute to prevent background noise. After the Speakers' remarks, there will be a question and answer session.

All lines have been placed on mute to prevent background noise. After the Speakers' remarks, there will be a question and answer session.

The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward looking within the safe Harbor protections of the private Securities Litigation Reform Act of 1995, although the company believes that its forward looking statements are based on reasonable assumptions such statements are subject to re.

Such statements are subject to risks and uncertainties that could cause actual or actual results to differ materially important factors that could cause results to differ materially are set forth in reports on forms 10-K, and 10-Q and news releases filed with the SEC, which are available on the company website.

<unk> and uncertainties that could cause actual or actual results to differ materially important factors that could cause results to differ materially are set forth in reports on forms 10-K, and 10-Q and news releases filed with the SEC, which are available on the company website.

Today's call is also available and being <unk>.

Today's conference call is also available and being broadcast at Cleveland cliffs Dot com at the conclusion of the call. It will be archived on the website and available for replay. The company will also discuss results excluding certain special items reconciliation for regulation G purposes can be found on the earnings.

Operator: Today's conference call is also available and being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay. The company will also discuss results excluding certain special items. Reconciliation for Regulation G purposes can be found on the earnings release, which was published this morning. At this time, I would like to introduce Lourenco Goncalves, Chairman, President, and Chief Executive Officer.

It kept at Cleveland cliffs Dot com at the conclusion of the call. It will be archived on the website and available for replay. The company will also discuss results excluding certain special items reconciliation for regulation G purposes can be found on the earnings release, which was published this morning at this time.

Release, which was published this morning at this time I would like to introduce Lorenzo consulted chairman President and Chief Executive Officer.

I would like to introduce Lorenzo Gonsalves, Chairman, President and Chief Executive Officer.

Thank you Donna and good morning, everyone.

Lourenço Gonçalves: Thank you, Donna, and good morning, everyone. Our Q3 results were a clear indication that a significant rebound in domestic steel demand has started, and the automotive sector is leading the way. It's now widely accepted and understood that tariffs are here to stay, particularly the Section 232 tariffs on steel, autos, and derivative products. These tariffs are not a negotiating tool, and the only effective way to avoid tariffs is manufacturing in the United States. With all that, Q3 was our best auto steel shipment quarter since Q1 2024. That's a very encouraging sign for what's coming in 2026 and beyond. Over the past quarter, Cleveland-Cliffs was able to lock in three-year agreements with all major automotive OEMs covering higher sales volumes and favorable pricing through 2027 or 2028. These are not small renewals.

Lourenco Goncalves: Thank you, Donna, and good morning, everyone. Our Q3 results were a clear indication that a significant rebound in domestic steel demand has started, and the automotive sector is leading the way. It's now widely accepted and understood that tariffs are here to stay, particularly the Section 232 tariffs on steel, autos, and derivative products. These tariffs are not a negotiating tool, and the only effective way to avoid tariffs is manufacturing in the United States. With all that, Q3 was our best auto steel shipment quarter since Q1 2024. That's a very encouraging sign for what's coming in 2026 and beyond. Over the past quarter, Cleveland-Cliffs was able to lock in three-year agreements with all major automotive OEMs covering higher sales volumes and favorable pricing through 2027 or 2028. These are not small renewals.

Our third quarter results were a clear indicator.

Our third quarter results were a clear indication that a significant rebound in domestic steel demand has started.

A significant rebound in domestic steel demand has started.

And the automotive sector is leading the way.

It's now widely accepted and understood that tariffs are here to stay.

Particularly the section 232 tariffs on steel autos and derivative products.

Particularly the section 232 tariffs on steel.

And derivative products.

These tariffs are not a negotiating tool.

And the only effective way to avoid tariffs is manufacturing in the United States.

With all that third quarter was our best auto steel shipment quarter since the first quarter of 2024.

That's a very encouraging sign for what's coming in 2026 and beyond.

Speaker #1: Hey, affiliation for Regulation G purposes can be found on the earnings release that was published this morning. At this time, I would like to introduce Lorenzo Goncalves, Chairman, President, and Chief Executive Officer.

Operator: Reconciliation for Regulation G purposes can be found on the earnings release, which was published this morning. At this time, I would like to introduce Lourenco Goncalves, Chairman, President, and Chief Executive Officer.

That's a very encouraging sign for what's coming in 2026 and beyond.

Over the past quarter, Cleveland cliffs was able to Lockheed.

Over the past quarter, Cleveland cliffs was able to lock in Georgia, three year agreements with all major automotive Oems hoovering higher sales volumes and favorable pricing through 2027 or 2028.

Your agreements with all major automotive Oems Hoovering higher sales volumes and favorable pricing through 2027 or 2028.

Speaker #2: Thank you, Donna, and good morning, everyone. Our third-quarter results were a clear indication that a significant rebound in domestic steel demand has started.

Lourenco Goncalves: Thank you, Donna, and good morning, everyone. Our third-quarter results were a clear indication that a significant rebound in domestic steel demand has started, and the automotive sector is leading the way. It is now widely accepted and understood that tariffs are here to stay, particularly the Section 232 tariffs on steel, autos, and derivative products. These tariffs are not a negotiating tool, and the only effective way to avoid tariffs is manufacturing in the U.S. With all that, the third quarter was our best auto/steel shipment quarter since the first quarter of 2024. That's a very encouraging sign for what's coming in 2026 and beyond. Over the past quarter, Cleveland-Cliffs Inc. was able to lock in two or three-year agreements with all major automotive OEMs covering higher sales volumes and favorable pricing through 2027 or 2028. These are not small renewals.

These are not is more renewables.

These are not is more renewals these agreements represent a strategic commitments to domestic steel sourcing by the most relevant auto Oems.

Speaker #2: And the automotive sector is leading the way. It's now widely accepted and understood that tariffs are here to stay, particularly the Section 232 tariffs on steel, autos, and derivative products.

Agreements represent strategic commitments to domestic steel sourcing by the most relevant auto Oems.

Lourenço Gonçalves: These agreements represent strategic commitments to domestic steel sourcing by the most relevant auto OEMs. Many of these customers have told us directly that they want to reduce their exposure to tariffs and to foreign volatility. They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and widths, Cliffs is the natural partner for the car manufacturers expanding production in the United States. President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant. They are fundamental to national security. Rebuilding these strengths is essential to sustain America's industrial independence and to improve our national defense readiness.

Lourenco Goncalves: These agreements represent strategic commitments to domestic steel sourcing by the most relevant auto OEMs. Many of these customers have told us directly that they want to reduce their exposure to tariffs and to foreign volatility. They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and widths, Cliffs is the natural partner for the car manufacturers expanding production in the United States. President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant. They are fundamental to national security. Rebuilding these strengths is essential to sustain America's industrial independence and to improve our national defense readiness.

Many of these customers have told us directly that they wanted to reduce their exposure to tariffs and two foreign volatility.

Many of these customers have told us directly that they want to reduce their exposure to tariffs and two foreign volatility.

Speaker #2: These tariffs are not a negotiating tool. The only effective way to avoid tariffs is manufacturing in the United States. With all that, the third quarter was our best auto steel shipment quarter since the first quarter of 2024.

They want stability.

They want stability and resilient supply chains.

Resilient supply chains.

With a total of nine outdoor motive grade galvanized steel plants.

With a total of nine outdoor motive grade galvanized steel.

<unk> been designing to produce exposed parts in all respects and with cliffs is the natural partner for the car manufacturers expanding production in the United States.

Five of them designed to produce exposed parts in all respects and with cliffs is the natural partner for the car manufacturers expanding production in the United States.

Speaker #2: That's a very encouraging sign for what's coming in 2026 and beyond. Over the past quarter, Cleveland-Cliffs was able to lock in two- or three-year agreements with all major automotive OEMs, covering higher sales volumes in favorable pricing through 2027 or 2028.

President Trump's trade agenda has the steel and automotive as part of its core.

These two sectors are not just economically relevant they are.

These two sectors are not just economically relevant they are fundamental to national security.

Fundamental to National security.

Rebuilding this strength is essential to sustain America's industrial independence and to improve our national Defence readiness.

Speaker #2: These are not small renewals. These agreements represent strategic commitments to domestic steel sourcing by the most relevant auto OEMs. Many of these customers have told us directly that they want to reduce their exposure to tariffs and to foreign volatility.

Lourenco Goncalves: These agreements represent strategic commitments to domestic steel sourcing by the most relevant auto OEMs. Many of these customers have told us directly that they want to reduce their exposure to tariffs and to foreign volatility. They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and widths, Cleveland-Cliffs Inc. is the natural partner for the car manufacturers expanding production in the U.S. President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant, they are fundamental to national security. Rebuilding these strengths is essential to sustain America's industrial independence and to improve our national defense readiness.

The same industrial base that builds advanced vehicles and powertrain for civilian use supported by domestic steel production can also provide the engineering capability supply chain depth and logistics expertise required to support the American mills.

Lourenço Gonçalves: The same industrial base that builds advanced vehicles and powertrains for civilian use, supported by domestic steel production, can also provide the engineering capability, supply chain depth, and logistics expertise required to support the American military. There is no question that the resurgence of the US auto sector, supported by domestic steel, is a matter of great urgency. While other steel companies are still building or promising to build new capacity to be ready in 2028, 2029, or later, Cliffs is ready for 2026. Our state-of-the-art automotive-grade galvanized steel plants, Spartan and Dearborn in Michigan, Middletown, Cleveland, and Columbus in Ohio, and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana, are all up and running.

Lourenco Goncalves: The same industrial base that builds advanced vehicles and powertrains for civilian use, supported by domestic steel production, can also provide the engineering capability, supply chain depth, and logistics expertise required to support the American military. There is no question that the resurgence of the US auto sector, supported by domestic steel, is a matter of great urgency. While other steel companies are still building or promising to build new capacity to be ready in 2028, 2029, or later, Cliffs is ready for 2026. Our state-of-the-art automotive-grade galvanized steel plants, Spartan and Dearborn in Michigan, Middletown, Cleveland, and Columbus in Ohio, and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana, are all up and running.

Speaker #2: They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and widths, Cleveland-Cliffs is the natural partner for the car manufacturers expanding production in the United States.

Terry.

There is no question that the resurgence of the U S. Our sector supported by domestic steel is a matter of great urgency.

There is no question that the resurgence of U S. Outdoor sector supported by domestic steel is a matter of great urgency.

While others two companies are still building, our promising to build new capacity to be ready in 2028 2029 or later clips is ready for 2026.

Speaker #2: President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant; they are fundamental to national security.

Our state of the art automotive grade galvanized steel plants.

Barton and Dearborn, Michigan Mirror town, Cleveland, and Columbus, Ohio, and Rockport, Indiana Harbor, Burns Harbor, and new Carlyle in Indiana are all up and running.

Barton and Dearborn, Michigan, Millers town, Cleveland, and Columbus, Ohio, and Rockport, Indiana Harbor, Burns Harbor, and new Carlyle in Indiana are all up and running.

Speaker #2: Rebuilding these strengths is essential to sustain America's industrial independence and to improve our national defense readiness. The same industrial base that builds advanced vehicles and powertrains for civilian use, supported by domestic steel production, can also provide the engineering capability, supply chain depth, and logistics expertise required to support the American military.

Cliffs has plenty of capacity right now.

Lourenco Goncalves: The same industrial base that builds advanced vehicles and powertrains for civilian use, supported by domestic steel production, can also provide the engineering capability, supply chain depth, and logistics expertise required to support the American military. There is no question that the resurgence of the U.S. auto sector, supported by domestic steel, is a matter of great urgency. While other steel companies are still building or promising to build new capacity to be ready in 2028, 2029, or later, Cleveland-Cliffs Inc. is ready for 2026. Our state-of-the-art automotive-grade galvanized steel plants—Spartan and Dearborn in Michigan, Middletown, Cleveland, and Columbus in Ohio, and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana—are all up and running. Cleveland-Cliffs Inc.

Lourenço Gonçalves: Cliffs has plenty of capacity right now, and the multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full deployment levels. This quarter also reminded the automotive OEMs why steel, and Cliffs steel in particular, is irreplaceable. When lightweighting became a major trend several years ago, some automakers jumped on the aluminum bandwagon, chasing immaterial and expensive lightweighting gains, while ignoring very meaningful technological advances in the production of high-strength steels and, more importantly, the enormous supply chain risks they were assuming. A huge fire at the nation's largest automotive aluminum-producing mill this past quarter revealed the fragility of that shift. Vehicle models that were years ago moved away from steel and toward aluminum are suffering the most.

Lourenco Goncalves: Cliffs has plenty of capacity right now, and the multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full deployment levels. This quarter also reminded the automotive OEMs why steel, and Cliffs steel in particular, is irreplaceable. When lightweighting became a major trend several years ago, some automakers jumped on the aluminum bandwagon, chasing immaterial and expensive lightweighting gains, while ignoring very meaningful technological advances in the production of high-strength steels and, more importantly, the enormous supply chain risks they were assuming. A huge fire at the nation's largest automotive aluminum-producing mill this past quarter revealed the fragility of that shift. Vehicle models that were years ago moved away from steel and toward aluminum are suffering the most.

And the multiyear contracts, we have signed with our automotive clients should give us did demand we need to make all these plants work at full capacity and our food.

And a multiyear contracts, we have signed with our automotive clients should give us did demand we need to make all these plants work at full capacity and at full employment levels.

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This quarter also reminded the automotive Oems, while steel and cliffs steel in particular.

Yes.

This quarter also reminded delta motive Oems, while steel and cliffs steel in particular.

Speaker #2: There is no question that the resurgence of the U.S. auto sector, supported by domestic steel, is a matter of great urgency. While other steel companies are still building or promising to build new capacity to be ready in 2028-2029 or later, Cleveland-Cliffs is ready for 2026.

Is irreplaceable.

When light weighting became a major trend several years ago. Some automakers jumped on the aluminum bandwagon chasing immaterial and expensive light weighting gains, while ignoring very meaningful technological advances in the production of high strength steel.

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Speaker #2: Our state-of-the-art automotive-grade galvanized steel plants—Spartan and Dearborn in Michigan, Middletown, Cleveland, and Columbus in Ohio, and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana—are all up and running.

And more importantly.

The enormous supply chain risks they were assuming.

A huge fire at the nation's largest automotive aluminum producing mill this past quarter reveal differ agility of that shift.

A huge fire at the nation's largest automotive aluminum producing new this past quarter revealed the fragility of that shift.

Vehicle models that were years ago moved away from steel and toward aluminum are suffering the most.

<unk> models that were years ago moved away from steel and toward aluminum are suffering the most.

Speaker #2: CLIF has plenty of capacity right now. The multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full employment levels.

Lourenco Goncalves: has plenty of capacity right now, and the multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full employment levels. This quarter also reminded the automotive OEMs why steel, and Cleveland-Cliffs steel in particular, is irreplaceable. When lightweighting became a major trend several years ago, some automakers jumped on the aluminum bandwagon, chasing immaterial and expensive lightweighting gains, while ignoring very meaningful technological advances in the production of high-strength steels and, more importantly, the enormous supply chain risks they were assuming. A huge fire at the nation's largest automotive aluminum-producing mill this past quarter revealed the fragility of that shift. Vehicle models that were, years ago, moved away from steel and toward aluminum are suffering the most.

The silver lining is that switching back to steel is now under serious consideration by the most affected Oems.

The silver lining is that switching back through steel is now under serious consideration by the most affected Oems.

Lourenço Gonçalves: The silver lining is that switching back to steel is now under serious consideration by the most affected OEMs. Recent trials of conforming parts with our steel, using equipment originally designed for aluminum, are showing very promising results. This is a huge win for American-made steel and a validation of everything we have been saying for years. Domestic steelmaking, and particularly Cleveland-Cliffs steel, is the backbone of the American automotive supply chain. We fully expect that aluminum's participation in the automotive space will continue to shrink, with Cleveland-Cliffs being the biggest beneficiary of the trend. The resurgence of U.S. manufacturing, enabled and supported by the Trump administration, has made Cleveland-Cliffs very attractive to a number of major global steel producers. These steelmakers supply steel within their respective countries to important clients, and these clients are now moving production to the United States. Exporting steel into the U.S.

Lourenco Goncalves: The silver lining is that switching back to steel is now under serious consideration by the most affected OEMs. Recent trials of conforming parts with our steel, using equipment originally designed for aluminum, are showing very promising results. This is a huge win for American-made steel and a validation of everything we have been saying for years. Domestic steelmaking, and particularly Cleveland-Cliffs steel, is the backbone of the American automotive supply chain. We fully expect that aluminum's participation in the automotive space will continue to shrink, with Cleveland-Cliffs being the biggest beneficiary of the trend. The resurgence of U.S. manufacturing, enabled and supported by the Trump administration, has made Cleveland-Cliffs very attractive to a number of major global steel producers. These steelmakers supply steel within their respective countries to important clients, and these clients are now moving production to the United States. Exporting steel into the U.S.

Recent trials of conforming parts with our steel using equipment. Originally designed for aluminum are showing very promising results.

As a huge win for American made steel and a validation of everything we have been saying for years.

This is a huge win for American made steel.

And a validation of everything we have been saying for years domestic steelmaking and particularly glimpses steel is the backbone of the American automotive supply chain.

Domestic steelmaking and particularly glimpses steel is the backbone of the American automotive supply chain.

We fully expect that aluminum participation in the automotive space will continue to shrink.

We fully expect that aluminum participation in the automotive space will continue to shrink with cliffs being the biggest beneficiary of the trend.

With cliffs being the biggest beneficiary of the trend.

The resurgence of U S manufacturing enabled and support by the Trump administration has made cliffs very attractive to a number of major global steel producers.

The resurgence of U S manufacturing enabled and support by the Trump administration.

Has made cliffs very attractive to a number of major global steel producers.

Steelmakers supply steel within their respective countries two important clients and these clients are now moving production to the United States.

This is steelmakers supply steel within their respective countries two important clients and these clients are now moving production to the United States.

Lourenco Goncalves: The silver lining is that switching back to steel is now under serious consideration by the most affected OEMs. Recent trials of conforming parts with our steel using equipment originally designed for aluminum are showing very promising results. This is a huge win for American-made steel and a validation of everything we have been saying for years: domestic steelmaking, and particularly Cleveland-Cliffs steel, is the backbone of the American automotive supply chain. We fully expect that aluminum's participation in the automotive space will continue to shrink, with Cleveland-Cliffs being the biggest beneficiary of the trend. The resurgence of U.S. manufacturing, enabled and supported by the Trump administration, has made Cleveland-Cliffs very attractive to a number of major global steel producers. These steelmakers supply steel within their respective countries to important clients, and these clients are now moving production to the United States. Exporting steel into the U.S.

Exporting steel into the U S is no longer a viable option for these foreign these two companies.

Lourenço Gonçalves: is no longer a viable option for these foreign steel companies. Like their steel-consuming customers, these folks need a physical presence in the United States. Cliffs is a fully integrated steel company, starting from mining iron ore and going all the way downstream to the production of high-end finished products, and that is all based in the United States. This foreign interest in Cliffs is fully aligned with President Trump's agenda of strengthening America's industrial base and attracting foreign investments. With all that, a few months ago, we were approached by a major global steelmaker who wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients moving production from their country of origin to the United States.

Lourenco Goncalves: is no longer a viable option for these foreign steel companies. Like their steel-consuming customers, these folks need a physical presence in the United States. Cliffs is a fully integrated steel company, starting from mining iron ore and going all the way downstream to the production of high-end finished products, and that is all based in the United States. This foreign interest in Cliffs is fully aligned with President Trump's agenda of strengthening America's industrial base and attracting foreign investments. With all that, a few months ago, we were approached by a major global steelmaker who wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients moving production from their country of origin to the United States.

Like there is still consuming customers this folks need a physical presence in the United States.

Cliffs is a fully integrated steel company is starting from mining iron ore and going all the way downstream to the production of high end finished the products and that is all based in the United States.

Cliffs is a fully integrated steel company is starting from mining iron ore and going all the way downstream to the production of high end finished products and that is all based in the United States.

This foreign interest in cliffs is fully aligned with president Trump's agenda of strength America's industrial base and attracting foreign investment.

With all of that a few months ago, we were approached by a major global steelmaker wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients moving production from their country of origin to the United States.

With all that a few months ago, we were approached by a major global steelmaker wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients moving production from their country of origin to the United States.

<unk> steelmakers supply steel within their respective countries to important clients and these clients are now moving production to the United States.

During the third quarter, we entered into a memorandum of understanding with this global is to make it and.

During the third quarter, we entered into a memorandum of understanding with this global is to make it <unk>.

Lourenço Gonçalves: During Q3, we entered into a memorandum of understanding with this global steelmaker, and we expect to make a formal announcement in the next few months. I will not take any questions on this subject today. Separately, we have made excellent progress selling FPT assets that no longer fit into our production footprint. I am pleased to report that we are under contract or agreements in principle for eight of these sites, with a combined total value of $425 million. The proceeds of these sales will go directly toward that reduction. As for our larger operational asset sales process run by J.P. Morgan, this is currently being deprioritized, given the comprehensiveness of our MOU with the global steelmaker. We are not quite pencils down on this process, but advancing our negotiations under our MOU is now our top priority. While our U.S.

Lourenco Goncalves: During Q3, we entered into a memorandum of understanding with this global steelmaker, and we expect to make a formal announcement in the next few months. I will not take any questions on this subject today. Separately, we have made excellent progress selling FPT assets that no longer fit into our production footprint. I am pleased to report that we are under contract or agreements in principle for eight of these sites, with a combined total value of $425 million. The proceeds of these sales will go directly toward that reduction. As for our larger operational asset sales process run by J.P. Morgan, this is currently being deprioritized, given the comprehensiveness of our MOU with the global steelmaker. We are not quite pencils down on this process, but advancing our negotiations under our MOU is now our top priority. While our U.S.

And we expect to make a formal announcement in the next few months.

Exporting steel into the U S is no longer a viable option for these foreign these two companies.

And we expect to make a formal announcement in the next few months.

Lourenco Goncalves: is no longer a viable option for these foreign steel companies. Like their steel-consuming customers, these folks need a physical presence in the United States. Cleveland-Cliffs is a fully integrated steel company, starting from mining iron ore and going all the way downstream to the production of high-end finished products, and that is all based in the United States. This foreign interest in Cleveland-Cliffs is fully aligned with President Trump's agenda of strengthening America's industrial base and attracting foreign investment. With all that, a few months ago, we were approached by a major global steelmaker who wants to leverage our footprint in the U.S. to enable a smooth onboarding for their downstream industrial clients, moving production from their country of origin to the U.S.

I will not take any questions on this subject today.

We'll not take any questions on this subject today.

Like there is still consuming customers this folks need a physical presence in the United States.

Separately, we have made excellent progress selling profits that no longer fit into our production footprint.

Yes.

Separately, we have made excellent progress selling profit that no longer fit into our production footprint.

I am pleased to report that we are under contract or agreement in principle for eight of these sites.

I am pleased to report that we are under contract or agreement in principle for eight of these sites with a combined total value of $425 million.

With a combined total value of $425 million.

This foreign interest in cliffs is fully aligned with president Trump's agenda of strength America's industrial base and attracting foreign investment.

The proceeds of these sales will go directly towards debt reduction.

As for our larger operational asset sales process run by J P. Morgan. This is currently being deep prioritized given the comprehensiveness of our Mou with the global Steelmaker.

We are not quite pencils down on this process that advancing our negotiations under our Mou is now our top priority.

We are not quite pension was down on this process that advancing our negotiations under our Mou is now our top priority.

Lourenco Goncalves: During the third quarter, we entered into a memorandum of understanding with this global steelmaker, and we expect to make a formal announcement in the next few months. I will not take any questions on this subject today. Separately, we have made excellent progress selling profits that no longer fit into our production footprint. I am pleased to report that we are under contract, or agreements in principle, for eight of these sites, with a combined total value of $425 million. The proceeds of these sales will go directly toward debt reduction. As for our larger operational asset sales process run by JPMorgan, this is currently being deprioritized, given the comprehensiveness of our MOU with the global steelmaker. We are not quite penciled down on this process, but advancing our negotiations under our MOU is now our top priority. While our U.S.

During the third quarter, we entered into a memorandum of understanding with this global is to make it.

While our U S business is on a clear path to recovery.

And we expect to make a formal announcement in the next few months.

While our U S business is on a clear path to recovery, we complete on November 1st our first year of ownership of the Canadian steel companies Stelco.

Lourenço Gonçalves: business is on a clear path to recovery. We complete on 1 November our first year of ownership of the Canadian steel company Stelco. The picture in Canada remains disappointing. Roughly 9% of our total sales come from Stelco in Canada, and that market continues to lag our expectations. There's only one cause to the problem: the Canadian government has been completely unwilling to act against dumping the steel into Canada. Import steel penetration into the Canadian market stands at a ridiculous and absurd 65%. The Canadian government could easily resolve the problem by replicating what the United States has done under Section 232: impose meaningful tariffs, close loopholes, and enforce the implementation of these anti-dumping countermeasures. With other regions of the globe moving in the right direction, even the European Union has recently tightened its quota and tariff regime. Canada stands alone in doing nothing.

Lourenco Goncalves: business is on a clear path to recovery. We complete on 1 November our first year of ownership of the Canadian steel company Stelco. The picture in Canada remains disappointing. Roughly 9% of our total sales come from Stelco in Canada, and that market continues to lag our expectations. There's only one cause to the problem: the Canadian government has been completely unwilling to act against dumping the steel into Canada. Import steel penetration into the Canadian market stands at a ridiculous and absurd 65%. The Canadian government could easily resolve the problem by replicating what the United States has done under Section 232: impose meaningful tariffs, close loopholes, and enforce the implementation of these anti-dumping countermeasures. With other regions of the globe moving in the right direction, even the European Union has recently tightened its quota and tariff regime. Canada stands alone in doing nothing.

We complete on November 1st our first year of ownership of the Canadian steel companies telco.

I will not take any questions on this subject today.

Separately, we have made excellent progress selling profits that no longer fit into our production footprint.

The picture in Canada remains disappointing.

Roughly 9% of our total sales come from telco in Canada and that market continues to lag our expectations.

Roughly 9% of our total sales come from telco in Canada and that market continues to lag our expectations there.

I am pleased to report that we are under contract or agreement in principle for eight of these sites with a combined total value of $425 million.

There is only one cause to the problem. The Canadian government has been completely unwilling to act against dumped steel into Canada.

Theres only won't cause to the problem. The Canadian government has been completely unwilling to act against dumped steel into Canada.

The proceeds of these sales will go directly towards debt reduction.

Important as steel penetration into the Canadian market is stands at a ridiculous and absurd 65%.

Importantly, still penetration into the Canadian market is stands at a ridiculous and absurd 65%.

As for our larger operational asset sales process run by J P. Morgan. This is currently being deep prioritized given the comprehensiveness of our Mou with the global Steelmaker.

The Canadian government could easily resolve the problem by replicating what United States has done under section 232.

Impose meaningful service close loopholes and enforced the implementation of these antidumping countermeasures.

We are not quite pencils down on this process that advancing our negotiations under our Mou is now our top priority.

Impose meaningful tariffs close loopholes and enforced the implementation of these antidumping countermeasures.

With other regions of the globe moving in the right direction, even the European Union has recently tightened its quarter end tariff regime.

With other regions of the globe moving in the right direction, even the European Union has recently tightened its quarter in tariff regime.

While our U S business is on a clear path to recovery will complete on November 1st our first year of ownership of the Canadian steel companies telco.

Lourenco Goncalves: business is on a clear path to recovery, we complete on November 1 our first year of ownership of the Canadian steel company Stelco. The picture in Canada remains disappointing. Roughly 9% of our total sales come from Stelco in Canada, and that market continues to lag our expectations. There is only one cause to the problem: the Canadian government has been completely unwilling to act against dumped steel into Canada. Imported steel penetration into the Canadian market stands at a ridiculous and absurd 65%. The Canadian government could easily resolve the problem by replicating what the U.S. has done under Section 232: impose meaningful tariffs, close loopholes, and enforce the implementation of these anti-dumping countermeasures. With other regions of the globe moving in the right direction, even the European Union has recently tightened its quota and tariff regime. Canada stands alone in doing nothing.

Again at that.

<unk> alone doing nothing.

Canada is stands alone in doing nothing.

A bailout loan as the one given by the Canadian government and the province of Ontario to Algoma one of our Canadian competitors is not a fix for the problem.

The picture in Canada remains disappointing.

Lourenço Gonçalves: A bailout loan, as the one given by the Canadian government and the province of Ontario to Algoma, one of our Canadian competitors, is not a fix for the problem. Trying to weaken Section 232 in the United States just to bring back Canadian steel into the American market is even worse. Stelco, under our ownership, does not want to and should not depend on selling steel into the United States for its survival. Stelco could thrive exclusively by selling steel in Canada. While I confess my inability to convince the several Canadian government officials I regularly speak with, I continue to expect Prime Minister Carney to make a move in the right direction. Let's see how long it takes, or if I will need to be more persuasive. Meanwhile, the U.S. government continues to grow as our partner.

Lourenco Goncalves: A bailout loan, as the one given by the Canadian government and the province of Ontario to Algoma, one of our Canadian competitors, is not a fix for the problem. Trying to weaken Section 232 in the United States just to bring back Canadian steel into the American market is even worse. Stelco, under our ownership, does not want to and should not depend on selling steel into the United States for its survival. Stelco could thrive exclusively by selling steel in Canada. While I confess my inability to convince the several Canadian government officials I regularly speak with, I continue to expect Prime Minister Carney to make a move in the right direction. Let's see how long it takes, or if I will need to be more persuasive. Meanwhile, the U.S. government continues to grow as our partner.

Roughly 9% of our total sales come from telco in Canada and that market continues to lag our expectations.

Trying to weakened section two <unk> in the United States just to bring back Canadian steel into the American market is even worse.

Trying to weakened section 232 in the United States just to bring back Canadian steel into the American market is even worse.

There is only one cause to the problem. The Canadian government has been completely unwilling to act against dumped steel into Canada.

It's still under our ownership does not want to and should not depend on selling steel into the United States for its survival.

Important as steel penetration into the Canadian market is stands at a ridiculous and absurd 65%.

Is telco could thrive exclusively by sale lease deal in Canada.

Is telco could thrive exclusively by Sally still in Canada.

The Canadian government could easily resolve the problem by replicating what United States has done under section 232.

While I confess my inability to convince the several Canadian government officials I regularly you speak with I continue to expect Prime Minister Kearney to make a move in the right direction, let's see how long it takes or if we need to be more virtual.

Impose meaningful tariffs close loopholes.

In forest the implementation of these antidumping countermeasures.

With other regions of the globe moving in the right direction, even the European Union has recently tightened its quarter end tariff regime.

Ziv.

Is it.

Meanwhile.

The U S government continues to grow as our partner.

Canada is stands alone in doing nothing.

During the quarter, we were awarded a five year $400 million.

Lourenco Goncalves: A bailout loan, as the one given by the Canadian government and the province of Ontario to Algoma, one of our Canadian competitors, is not a fix for the problem. Trying to weaken Section 232 in the U.S. just to bring back Canadian steel into the American market is even worse. Stelco, under our ownership, does not want to and should not depend on selling steel into the U.S. for its survival. Stelco could thrive exclusively by selling steel in Canada. While I confess my inability to convince the several Canadian government officials I regularly speak with, I continue to expect Prime Minister Carney to make a move in the right direction. Let's see how long it takes, or if I will need to be more persuasive. Meanwhile, the U.S. government continues to grow as our partner.

A bailout loan as the one given by the Canadian government and the province of Ontario to Algoma one of our Canadian competitors is not a fix for the problem.

Lourenço Gonçalves: During the quarter, we were awarded a five-year $400 million fixed-price contract by the Defense Logistics Agency of the US Department of Defense. This contract covers up to 53,000 net tons of grain-oriented electrical steel, which the US government intends to store for national security purposes. The award underscores Cleveland-Cliffs' position as the only US producer capable of supplying this critical material, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation's defense and energy infrastructure. Also, we recently learned that our two projects receiving grants from the Department of Energy at Middletown, Ohio, and Butler, Pennsylvania, were not included on the cancellation list that ended more than 200 other projects.

Lourenco Goncalves: During the quarter, we were awarded a five-year $400 million fixed-price contract by the Defense Logistics Agency of the US Department of Defense. This contract covers up to 53,000 net tons of grain-oriented electrical steel, which the US government intends to store for national security purposes. The award underscores Cleveland-Cliffs' position as the only US producer capable of supplying this critical material, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation's defense and energy infrastructure. Also, we recently learned that our two projects receiving grants from the Department of Energy at Middletown, Ohio, and Butler, Pennsylvania, were not included on the cancellation list that ended more than 200 other projects.

Fixed price contract by the Defense Logistics agency of the U S Department of War.

Trying to weakened section 232 in the United States just to bring back Canadian steel into the American market is even worse.

This contract covers up to 53000 net tons of grain oriented electrical steel.

With the U S government intends to store for National security purposes.

It's still under our ownership does not want to and should not depend on selling steel into the United States for its survival.

With the U S government intends to store for National security purposes.

The award under underscores cliffs' position as the only U S producer capable of supplying this grid co material growth grain oriented electrical steel further reinforcing the strategic important importance of our electrical steels to the nation.

The award under underscores cliffs' position as the only U S producer capable of supplying this grid co material growth grain oriented electrical steel.

Is telco could thrive exclusively by Sally still in Canada.

Reinforcing the strategic important importance of our electrical steels to the nation's defense and energy infrastructure.

Defense and energy infrastructure.

Also we recently learned that our two projects receiving grants from the department of energy at Middletown, Ohio in Butler, Pennsylvania.

Also we recently learned that our two projects receiving grants from the department of energy at Middletown, Ohio In Butler, Pennsylvania were not included on the constellation list that ended more than 200 other projects.

Is it.

Were not included on the constellation list that ended more than 200 other projects.

Meanwhile.

The U S government continues to grow as our partner.

Lourenco Goncalves: During the quarter, we were awarded a five-year, $400 million fixed-price contract by the U.S. Defense Logistics Agency. This contract covers up to 53,000 net tons of grain-oriented electrical steel, which the U.S. government intends to store for national security purposes. The award underscores Cleveland-Cliffs' position as the only U.S. producer capable of supplying this critical material, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation's defense and energy infrastructure. Also, we recently learned that our two projects receiving grants from the Department of Energy at Middletown, Ohio, and Butler, Pennsylvania, were not included on the cancellation list that ended more than 200 other projects.

During the quarter, we were awarded a five year $400 million figure.

As such we will proceed with the Butler project on schedule and we will also continue to work with the Doe.

Lourenço Gonçalves: As such, we will proceed with the Butler project on schedule, and we will also continue to work with the DOE on the new scoping of the Middletown project, which is critically important as that blast furnace will be relied on in the next 4 to 5 years. Last but not least, the growing strategic value of rare earth elements has prompted us to revisit this potential within our mining portfolio. We view this effort as both an opportunity and as our responsibility. Comprehensive reviews of our ore bodies and tailings basins have identified 2 sites, one in Minnesota and one in Michigan, where geological surveys show evidence of rare earth mineralization. We continue to assess our potential on both sites, advancing this initiative, which positions Cliffs squarely within the nation's pursuit of critical material self-sufficiency.

Lourenco Goncalves: As such, we will proceed with the Butler project on schedule, and we will also continue to work with the DOE on the new scoping of the Middletown project, which is critically important as that blast furnace will be relied on in the next 4 to 5 years. Last but not least, the growing strategic value of rare earth elements has prompted us to revisit this potential within our mining portfolio. We view this effort as both an opportunity and as our responsibility. Comprehensive reviews of our ore bodies and tailings basins have identified 2 sites, one in Minnesota and one in Michigan, where geological surveys show evidence of rare earth mineralization. We continue to assess our potential on both sites, advancing this initiative, which positions Cliffs squarely within the nation's pursuit of critical material self-sufficiency.

Fixed price contract by the Defense Logistics agency of the U S Department of War.

On the new scoping of the Middletown project, which is critically important as that blast furnace will be realigned in the next four to five years.

On the new scoping of the Middletown project, which is critically important as that blast furnace will be relied in the next four to five years.

This contract covers up to 53000 net tons of grain oriented electrical steel.

Last but not least the growing strategic value of rare Earth elements has prompted us to revisit this potential within our mining portfolio.

With the U S government intends to store for National security purposes.

We view this effort is both an opportunity and as our responsibility.

Comprehensive reviews of our ore bodies and tailings basis have identified two sites, one in Minnesota, and one in Michigan, where geological surveys show evidence of rare Earth.

Defense and energy infrastructure.

Also we recently learned that our two projects receiving grants from the department of energy at Middletown, Ohio in Butler, Pennsylvania.

Mineralization.

We continue to assess our potential on both sites.

Were not included on the constellation list that ended more than 200 other projects.

Advancing this initiative will position Cleveland cliffs is squarely within the nation's pursuit of critical material self sufficiency, We believe America's Industrial Foundation must never depend on China or any other foreign source for essential minerals.

Lourenco Goncalves: As such, we will proceed with the Butler project on schedule, and we will also continue to work with the Department of Energy on the new scoping of the Middletown project, which is critically important, as that blast furnace will be reliant in the next four to five years. Last but not least, the growing strategic value of rare earth elements has prompted us to revisit this potential within our mining portfolio. We view this effort as both an opportunity and as our responsibility. Comprehensive reviews of our ore bodies and tailings basins have identified two sites, one in Minnesota and one in Michigan, where geological surveys show evidence of rare earth mineralization. We continue to assess our potential on both sites. Advancing this initiative would position Cleveland-Cliffs squarely within the nation's pursuit of critical material self-sufficiency.

As such we will proceed with the Butler project on schedule and we will also continue to work with the Doe.

Lourenço Gonçalves: We believe America's Industrial Foundation must never depend on China or any other foreign source for essential minerals. CLIFFS and CLIFFS are committed to contributing to our independence from foreign powers on critical materials. With that, I will turn to our CFO, Celso Goncalves, for his remarks.

Lourenco Goncalves: We believe America's Industrial Foundation must never depend on China or any other foreign source for essential minerals. CLIFFS and CLIFFS are committed to contributing to our independence from foreign powers on critical materials. With that, I will turn to our CFO, Celso Goncalves, for his remarks.

On the new scoping of the Middletown project, which is critically important as that blast furnace will be reliant in the next four to five years.

Global on cliffs is committed to contributing to our independence from foreign powers on critical materials.

Last but not least the growing strategic value of rare Earth elements has prompted us to revisit this potential within our mining portfolio.

With that I will turn to our CFO social gonsalves for his remarks.

Thank you and good morning, everyone.

Our third quarter results were driven by steady operational execution and much better than expected pricing supported by automotive strength.

Operator: Thank you, and good morning, everyone. Our Q3 results were driven by steady operational execution and much better-than-expected pricing, supported by automotive strength. Our Adjusted EBITDA on the quarter improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix. Our steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market. Fortunately, as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1,032 per net ton, up $17 per net ton over the prior quarter. This improvement in price is entirely driven by automotive shipments moving from 26% to 30% share and coated volumes moving from 27% to 29% share.

Celso Goncalves: Thank you, and good morning, everyone. Our Q3 results were driven by steady operational execution and much better-than-expected pricing, supported by automotive strength. Our Adjusted EBITDA on the quarter improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix. Our steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market. Fortunately, as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1,032 per net ton, up $17 per net ton over the prior quarter. This improvement in price is entirely driven by automotive shipments moving from 26% to 30% share and coated volumes moving from 27% to 29% share.

Our third quarter results were driven by steady operational execution and much better than expected pricing supported by automotive strength.

We view this effort is both an opportunity and as our responsibility.

Our adjusted EBITDA in the quarter improved to $143 million, a 52% increase over the prior quarter driven by margin expansion from higher realized prices and improved mix.

Comprehensive reviews of our ore bodies and tailings basis have identified two sites, one in Minnesota, and one in Michigan, where geological surveys show evidence of rare Earth.

Our steel shipment volumes were 4 million tons in the quarter a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market.

Mineralization.

We continue to assess our potential on both sites.

Fortunately as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1032 per net ton up $17 per net ton over the prior quarter.

Lourenco Goncalves: We believe America's industrial foundation must never depend on China or any other foreign source for essential minerals. Cleveland-Cliffs is committed to contributing to our independence from foreign powers on critical materials. With that, I will turn to our CFO, Celso Goncalves, for his remarks.

This improvement in price is entirely driven by automotive shipments moving from 26% to 30% share.

Global on cliffs is committed to contributing to our independence from foreign powers on critical materials.

In coated volumes moving from 27% to 29% share.

On the cost side, we continued to deliver great results as our unit costs adjusted to the much richer automotive mix.

With that I will turn to our CFO social gonsalves for his remarks.

Operator: On the cost side, we continue to deliver great results as our unit costs adjusted to the much richer automotive mix. Our continued cost performance was almost entirely driven by the footprint optimization activities we announced earlier this year and have fully implemented at this point. Q3 was the first full quarter we operated with these operational efficiencies in place, and our projected annual savings of $300 million from these maneuvers remain on track. We also continue to take further action to reduce both SG&A run rate and capital expenditure budgets. Our CapEx budget for 2025 is now $525 million, down from our original expectation to begin the year of $700 million. This is reflective of dramatically reduced spend at Stelco as well as the now changing DOE project at Middletown.

Celso Goncalves: On the cost side, we continue to deliver great results as our unit costs adjusted to the much richer automotive mix. Our continued cost performance was almost entirely driven by the footprint optimization activities we announced earlier this year and have fully implemented at this point. Q3 was the first full quarter we operated with these operational efficiencies in place, and our projected annual savings of $300 million from these maneuvers remain on track. We also continue to take further action to reduce both SG&A run rate and capital expenditure budgets. Our CapEx budget for 2025 is now $525 million, down from our original expectation to begin the year of $700 million. This is reflective of dramatically reduced spend at Stelco as well as the now changing DOE project at Middletown.

Our continued cost performance was almost entirely driven by the footprint optimization activities, we announced earlier this year and have fully implemented at this point.

Celso Goncalves: Thank you, and good morning, everyone. Our third-quarter results were driven by steady operational execution and much better-than-expected pricing, supported by automotive strength. Our adjusted EBITDA on the quarter improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix. Our steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market. Fortunately, as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1,032 per net ton, up $17 per net ton over the prior quarter. This improvement in price is entirely driven by automotive shipments moving from 26% to 30% share and coated volumes moving from 27% to 29% share.

Thank you and good morning, everyone.

Our continued cost performance was almost entirely driven by the footprint optimization activities, we announced earlier this year and have fully implemented at this point.

Our third quarter results were driven by steady operational execution and much better than expected pricing supported by automotive strength.

The third quarter was the first full quarter, we operated with these operational efficiencies in place and our projected annual savings of $300 million from these maneuvers remain on track.

Our adjusted EBITDA in the quarter improved to $143 million, a 52% increase over the prior quarter driven by margin expansion from higher realized prices and improved mix.

The third quarter was the first full quarter, we operated with these operational efficiencies in place and our projected annual savings of $300 million from these maneuvers remain on track.

We also continued to take further action to reduce both SG&A run rate and capital expenditure budgets.

Our steel shipment volumes were 4 million tons in the quarter a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market.

We also continued to take further action to reduce both SG&A run rate and capital expenditure budgets.

Our capex budget for 2025 is now $525 million.

Fortunately as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1032 per net ton.

Down from our original expectation to begin the year of $700 million.

This is reflective of dramatically reduced spend at stelco as well as the now changing do project at Middletown.

This is reflective of dramatically reduced spend at stelco as well as the now changing do projects at Middletown.

Up $17 per net ton over the prior quarter.

This improvement in price is entirely driven by automotive shipments moving from 26% to 30% share and coated volumes moving from 27% to 29% share.

In addition, full year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million.

Operator: In addition, full-year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million. These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions. Another upcoming item to highlight is the 9 December expiration of our onerous slab contract. For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index. That index no longer reflects the real cost or value of American steel, much less the value of our automotive-grade slabs produced at Indiana Harbor. With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

Celso Goncalves: In addition, full-year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million. These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions. Another upcoming item to highlight is the 9 December expiration of our onerous slab contract. For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index. That index no longer reflects the real cost or value of American steel, much less the value of our automotive-grade slabs produced at Indiana Harbor. With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions.

Celso Goncalves: On the cost side, we continue to deliver great results as our unit costs adjusted to the much richer automotive mix. Our continued cost performance was almost entirely driven by the footprint optimization activities we announced earlier this year and have fully implemented at this point. The third quarter was the first full quarter we operated with these operational efficiencies in place, and our projected annual savings of $300 million from these maneuvers remain on track. We also continue to take further action to reduce both SG&A run rate and capital expenditure budgets. Our capital expenditure budget for 2025 is now $525 million, down from our original expectation to begin the year of $700 million. This is reflective of dramatically reduced spend at Stelco, as well as the now changing Department of Energy project at Middletown.

On the cost side, we continued to deliver great results as our unit costs adjusted to the much richer automotive mix.

Another upcoming item to highlight is the December 9th exploration of our onerous slab contract.

Our continued cost performance was almost entirely driven by the footprint optimization activities, we announced earlier this year and have fully implemented at this point.

For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index.

The third quarter was the first full quarter, we operated with these operational efficiencies in place and our projected annual savings of $300 million from these maneuvers remain on track.

That index no longer reflects the real cost or value of American steel much less the value of our automotive grade slabs produced at Indiana Harbor.

With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

We also continued to take further action to reduce both SG&A run rate and capital expenditure budgets.

Our Capex budget for 2025 is now $525 million down from our original expectation to begin the year of $700 million.

This past quarter. We also took advantage of the strong high yield market and refinance the entirety of our remaining bonds maturing in 2027, leaving us with a runway of more than three years with no upcoming bond maturities.

This past quarter. We also took advantage of the strong high yield market and refinanced the entirety of our remaining bonds maturing in 2027, leaving us with a runway of more than three years with no upcoming bond maturities.

Operator: This past quarter, we also took advantage of the strong high-yield market and refinanced the entirety of our remaining bonds maturing in 2027, leaving us with a runway of more than three years with no upcoming bond maturities. Our next bond maturity is not until March of 2029, and those notes can be redeemed at par starting in March of next year. Together with the outstanding balance on the ABL, we have plenty of prepayable debt to pay down with the incoming proceeds of property asset sales and future free cash flow. Our gross debt amount remains elevated, but we will have ample opportunity to pay it down over the coming quarters. That said, the composition of our debt and maturity runway leaves us with plenty of flexibility going forward.

Celso Goncalves: This past quarter, we also took advantage of the strong high-yield market and refinanced the entirety of our remaining bonds maturing in 2027, leaving us with a runway of more than three years with no upcoming bond maturities. Our next bond maturity is not until March of 2029, and those notes can be redeemed at par starting in March of next year. Together with the outstanding balance on the ABL, we have plenty of prepayable debt to pay down with the incoming proceeds of property asset sales and future free cash flow. Our gross debt amount remains elevated, but we will have ample opportunity to pay it down over the coming quarters. That said, the composition of our debt and maturity runway leaves us with plenty of flexibility going forward.

This is reflective of dramatically reduced spend at stelco as well as the now changing Doe projects at Middletown.

Our next bond maturity is not until March of 2029.

Celso Goncalves: In addition, full-year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million. These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions. Another upcoming item to highlight is the December 9 expiration of our onerous slab contract. For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index. That index no longer reflects the real cost or value of American steel, much less the value of our automotive-grade slabs produced at Indiana Harbor. With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

In addition, full year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million.

And those notes can be redeemed at par starting in March of next year.

Together with the outstanding balance on the ABL, we have plenty of pre payable debt to pay down with the incoming proceeds of property asset sales and future free cash flow.

These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions.

Our gross debt amount remains elevated, but we will have ample opportunity to pay it down over the coming quarters.

Another upcoming item to highlight is the December 9th exploration of our onerous slab contract.

That said the composition of our debt maturity runway leaves us with plenty of flexibility going forward.

That said the composition of our debt and maturity runway leaves us with plenty of flexibility going forward.

For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index.

The primary end markets that we serve transportation manufacturing and construction have been experiencing recession like conditions over the past 12 months.

Operator: The primary end markets that we serve, transportation, manufacturing, and construction, have been experiencing recession-like conditions over the past 12 months. We have navigated this with our operational improvements, footprint optimizations, and reductions in overhead and capital costs. The construction and general manufacturing sectors still remain relatively weak, but if history is any guide, those sectors will follow the trajectory of the automotive sector, which is now tracing upward. We have finally started to see a bit of restocking activity in the distributor and end-user markets, an indication that the new tariff reality for those buyers is setting in. The signs of a real recovery are forming, and we need consistent demand and stable policy to keep it going.

Celso Goncalves: The primary end markets that we serve, transportation, manufacturing, and construction, have been experiencing recession-like conditions over the past 12 months. We have navigated this with our operational improvements, footprint optimizations, and reductions in overhead and capital costs. The construction and general manufacturing sectors still remain relatively weak, but if history is any guide, those sectors will follow the trajectory of the automotive sector, which is now tracing upward. We have finally started to see a bit of restocking activity in the distributor and end-user markets, an indication that the new tariff reality for those buyers is setting in. The signs of a real recovery are forming, and we need consistent demand and stable policy to keep it going.

That index no longer reflects the real cost or value of American steel much less the value of our automotive grade slabs produced at Indiana Harbor.

We have navigated this with our operational improvements footprint optimizations and reductions in overhead and capital costs.

With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

The construction and general manufacturing sectors still remained relatively weak, but if history is any guide those sectors will follow the trajectory of the automotive sector, which is now tracing upward.

We have finally started to see a bit of restocking activity in the distributor and end user markets an indication that the new tariff reality for those buyers are setting in.

We have finally started to see a bit of restocking activity in the distributor and end user markets an indication that the new tariff reality for those buyers is setting in.

Our next bond maturity is not until March of 2029.

The signs of a real recovery are forming our forming and we need consistent demand and stable policy to keep it going.

And those notes can be redeemed at par starting in March of next year.

Together with the outstanding balance on the ABL, we have plenty of pre payable debt to pay down with the incoming proceeds of property asset sales and future free cash flow.

Once these policy changes give us the demand boost that we need the foundation that we have laid with these operational improvements will propel us further to amplified EBITDA and cash flow.

Operator: Once these policy changes give us the demand boost that we need, the foundation that we have laid with these operational improvements will propel us further to amplified EBITDA and cash flow. With that, I'll now turn it back to Lourenco for his closing remarks.

Celso Goncalves: Once these policy changes give us the demand boost that we need, the foundation that we have laid with these operational improvements will propel us further to amplified EBITDA and cash flow. With that, I'll now turn it back to Lourenco for his closing remarks.

Our gross debt amount remains elevated, but we will have ample opportunity to pay it down over the coming quarters.

With that I'll now turn it back to Lorenzo for his closing remarks.

Thanks, Social Q3 showed the first clear signs that the tide is beginning to turn.

That said the composition of our debt maturity runway leaves us with plenty of flexibility going forward.

Thanks, Social Q3 showed the first clear signs that the tide is beginning to turn.

Lourenço Gonçalves: Thanks, Celso. Q3 showed the first clear signs that the tide is beginning to turn. Automotive is rebounding. Our cost actions are working, and trade policy is delivering measurable results. But we are not declaring victory yet. We can and will do better. Our onerous slab contract will soon go away. Our automotive volumes will continue to increase, and we will finish what we have started. That includes the execution of the final agreement and the beginning of the work which will follow our transformational memorandum of understanding with our major global steelmaker partner. With that, I'll turn it back to Donna for questions.

Lourenco Goncalves: Thanks, Celso. Q3 showed the first clear signs that the tide is beginning to turn. Automotive is rebounding. Our cost actions are working, and trade policy is delivering measurable results. But we are not declaring victory yet. We can and will do better. Our onerous slab contract will soon go away. Our automotive volumes will continue to increase, and we will finish what we have started. That includes the execution of the final agreement and the beginning of the work which will follow our transformational memorandum of understanding with our major global steelmaker partner. With that, I'll turn it back to Donna for questions.

Automotive is rebuilding our cost actions are working and trade policy is delivering measurable results.

The primary end markets that we serve transportation manufacturing and construction have been experiencing recession like conditions over the past 12 months.

Automotive is rebuilding our cost actions are working and trade policy is delivering measurable results.

While we're not declaring victory yet, we can and will do better.

But we are not declaring victory, yet, we can and will do better.

We have navigated this with our operational improvements footprint optimizations and reductions in overhead and capital costs.

Our onerous as lab contract will soon go away.

The construction and general manufacturing sectors still remain relatively weak, but if history is any guide those sectors will follow the trajectory of the automotive sector, which is now tracing upward.

Our automotive volumes will continue to increase.

And we will finish what we have started.

That includes the execution of the final agreement and the beginning of the work, which will follow our transformational memoranda of understanding with our major global Steelmaker part partner.

That includes the execution of the final agreement and the beginning of the work, which will follow our transformational memoranda of understanding with our major global Steelmaker partner.

We have finally started to see a bit of restocking activity in the distributor and end user markets an indication that the new tariff reality for those buyers is setting in.

With that I will turn it back to Don for questions.

The signs of a real recovering our farmers are forming and we need consistent demand and stable policy to keep it going.

With that I will turn it back to Don for questions.

Thank you the floor is now open for questions.

Celso Goncalves: Once these policy changes give us the demand boost that we need, the foundation that we have laid with these operational improvements will propel us further to amplified EBITDA and cash flow. With that, I will now turn it back to Lourenco for his closing remarks.

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Once again, that is star one to register a question at this time. Our first question today is coming from Nick Giles of B. Riley Securities. Please go ahead.

I'd like to ask a question. Please press star one on your telephone keypad at this time a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

Once these policy changes give us the demand boost that we need the foundation that we've laid with these operational improvements will propel us further to amplified EBITDA and cash flow.

With that I'll now turn it back to Lorenzo for his closing remarks.

Lourenco Goncalves: Thanks, Celso. Q3 showed the first clear signs that the tide is beginning to turn. Automotive is rebounding, our cost actions are working, and trade policy is delivering measurable results. We are not declaring victory yet. We can and will do better. Our onerous slab contract will soon go away, our automotive volumes will continue to increase, and we will finish what we have started. That includes the execution of the final agreement and the beginning of the work which will follow our transformational memorandum of understanding with our major global steelmaker partner. With that, I will turn it back to Donna for questions.

Thanks, Social Q3 showed the first clear signs that the tide is beginning to turn.

Once again that is star one to register a question at this time.

Our first question today is coming from Nick Childs of B Riley Securities. Please go ahead.

Automotive is revolving our cost actions are working and trade policy is delivering measurable results.

Our first question today is coming from Nick Childs of B Riley Securities. Please go ahead.

Thank you very much operator.

But we are not declaring victory, yet, we can and will do better.

So good morning.

Nick Giles: Thank you very much, Operator, Lourenco. Celso, good morning, and really nice to see all of these updates. Cleveland-Cliffs has been a national champion in the U.S. metals and mining industry for over a century, so it's really good to see you taking the initiative on the rare earth side. My question is really, how quickly could you produce products in this vertical, and could you look to be a vertically integrated producer, or would you look for a partner? Thank you very much.

Good morning.

Really nice to see all of these updates.

Really nice to see all these updates.

Clisis International champion in the U S metals and mining industry for over a century. So it's really good to see you taking the initiative on the <unk> side. My question is really how quickly could you produce products in this vertical.

Our owners is lab contract will soon go away.

Clisis.

In our national champion in the U S metals and mining industry for over a century. So it's really good to see you taking the initiative on the <unk> side. My question is really how quickly could you produce products in this vertical and.

Our automotive volumes will continue to increase.

And we will finish what we have started.

That includes the execution of the final agreement and the beginning of the work, which will follow our transformational memoranda of understanding with our major global Steelmaker partner.

Could you look to be a vertically integrated producer would you look for a partner. Thank you very much.

Thanks, Nick for the question look we have the opportunity to.

Lourenço Gonçalves: Thanks, Nick, for the question. Look, we have the opportunity to develop the mining, assuming that all these original studies will play out as we expect, and we'll go from there. It's very clear that the US government is very quickly realizing the importance of having an industry for this type of minerals inside the borders of the United States. And that's also, in my opinion, an opportunity for cooperation with Canada, another unexplored opportunity that we can develop with our northern neighbor. So there are several ways to go with this thing, and the important thing is that the geographical location would be good for both. We can do it inside the United States. We can do it in Canada because we're very close, across the pond, across the Great Lakes. So it's very easy to work within the United States or with Canada.

Lourenco Goncalves: Thanks, Nick, for the question. Look, we have the opportunity to develop the mining, assuming that all these original studies will play out as we expect, and we'll go from there. It's very clear that the US government is very quickly realizing the importance of having an industry for this type of minerals inside the borders of the United States. And that's also, in my opinion, an opportunity for cooperation with Canada, another unexplored opportunity that we can develop with our northern neighbor. So there are several ways to go with this thing, and the important thing is that the geographical location would be good for both.

With that I will turn it back to Don for questions.

Develop the mining assuming that all of this.

Thank you the floor is now open for questions.

Or is no studies will play out as we expect and we will go from there.

Original studies will play out as we expect and we will go from there.

It's very clear that the U S government.

Very quickly realizing the importance of having an industry for this type of minerals inside the borders of the United States and Thats also in my opinion opportunity.

Very quickly realizing the importance of having an industry for this type of minerals inside the borders of United States and Thats also in my opinion opportunity.

Once again that is star one to register a question at this time are.

Our cooperation with Canada, another unexplored opportunity that we can develop with our northern neighbor. So there are several ways to go with this thing and the important thing is that the geographical location would be good for both we can do it inside the United States we can.

Our first question today is coming from Nick Childs of B Riley Securities. Please go ahead.

Our cooperation with Canada, another unexplored opportunity.

We can develop with our northern neighbor. So there are several ways to go with this thing and the important thing is that the geographical location would be good for both we can do it inside the United States, we can do it in Canada.

[Analyst]: Thank you very much, Operator. Lourenco, Celso, good morning, and really nice to see all of these updates. Cleveland-Cliffs has been a national champion in the U.S. metals and mining industry for over a century, so it's really good to see you taking the initiative on the rare earth side. My question is really, you know, how quickly could you produce products in this vertical, and you know, could you look to be a vertically integrated producer? Would you look for a partner? Thank you very much.

Thank you very much operator.

Good morning.

Really nice to see all these updates.

<unk>.

And the National champion in the U S metals and mining industry for over a century. So it's really good to see you taking the initiative on the <unk> side. My question is really how quickly could you produce products in this vertical and.

Do it in Canada.

Lourenco Goncalves: We can do it inside the United States. We can do it in Canada because we're very close, across the pond, across the Great Lakes. So it's very easy to work within the United States or with Canada. But these are the two options I see going forward.

Because we're very close across the point across the great Lakes. So it's very easy to work with data in order to sustain so with Canada, but these are the two options I see going forward.

Because we're very close across the point across the great Lakes. So it's very easy to work with data in that state So with Canada, but these are the two options I see going forward.

Could you look to be a vertically integrated producer would you look for a partner. Thank you very much.

Lourenço Gonçalves: But these are the two options I see going forward.

Okay. Thanks for that detail, maybe just as a follow up.

Okay. Thanks for that detail, maybe just as a follow up I mean, what what resources have been brought in to date to explore the opportunity in.

Lourenco Goncalves: Thanks, Nick, for the question. Look, we have the opportunity to develop the mining, assuming that all these original studies will play out as we expect, and we'll go from there. It's very clear that the U.S. government is very quickly realizing the importance of having an industry for this type of minerals inside the borders of the United States. That's also, in my opinion, an opportunity for cooperation with Canada, another unexplored opportunity that we can develop with our northern neighbor. There are several ways to go with this thing, and the important thing is that the geographical location would be good for both. We can do it inside the United States, we can do it in Canada, because we're very close, across the pond, across the Great Lakes, so it's very easy to work within the United States or with Canada.

Thanks, Nick for the question look we have the opportunity to.

What resources have been brought in to date to explore the opportunity in.

Nick Giles: Elgie, thanks for that detail. Maybe just as a follow-up, I mean, what resources have you brought in to date to explore the opportunity, and when is kind of the first mile marker in terms of a potential product mix or any economics? Should we be thinking about something early next year? Appreciate any color.

Nick Giles: LG, thanks for that detail. Maybe just as a follow-up, I mean, what resources have you brought in to date to explore the opportunity, and when is kind of the first mile marker in terms of a potential product mix or any economics? Should we be thinking about something early next year? Appreciate any color.

Develop the mining assuming that all of this.

One is kind of the first mile marker in terms of a potential product mix or any economics should we be thinking about something early next year I appreciate any color.

One is kind of the the first mile marker in terms of a potential product mix or any economics should we be thinking about something early next year I appreciate any color.

Original studies will play out as we expect and we will go from there.

It's very clear that the U S government.

Okay.

We've identified two sites that have the most promising.

Lourenço Gonçalves: Look, we've identified two sites that have the most promising. We are working with geologists to assess whether these deposits could become commercially viable. That's where we're at. And don't forget, as you said, we are a mining company, so this is not new territory for us. We understand mining into these lands more than anyone because we have been doing it for a long, long time. And we will see how we'll go from there. But that's a potential that we will not let go without putting a lot of effort and a lot of ingenuity into getting this done inside the United States or in partnership with Canada, that has experience in mining these not-so-rare elements that are called rare earths.

Lourenco Goncalves: Look, we've identified two sites that have the most promising. We are working with geologists to assess whether these deposits could become commercially viable. That's where we're at. And don't forget, as you said, we are a mining company, so this is not new territory for us. We understand mining into these lands more than anyone because we have been doing it for a long, long time. And we will see how we'll go from there. But that's a potential that we will not let go without putting a lot of effort and a lot of ingenuity into getting this done inside the United States or in partnership with Canada, that has experience in mining these not-so-rare elements that are called rare earths.

Very quickly realizing the importance of having an industry for this type of minerals inside the borders of United States and Thats also in my opinion, an opportunity for cooperation with Canada. Another unexplored opportunity that we can develop with.

We are working with the geologists to assess whether these deposits deposits could become commercially viable that's where we're at and.

Don't forget.

Said, we are a mining company. So this is not new territory for us we understand.

Our northern neighbor. So there are several ways to go with this thing and the important thing is that the geographical location would be good for both we can do it inside the United States, we can do it in Canada.

Mining into dos Lance more than anyone.

<unk>.

Mining into these lands more than anyone.

We have been doing for a long long time.

And we will see how it will go from there, but thats a potential that we will not let go without putting a lot of effort and a lot of.

And we'll see how we'll go from there, but thats a potential that we will not let go without putting a lot of effort and a lot of.

Because we're very close across the point across the great Lakes. So it's very easy to work with the Donuts stage, So with Canada, but these are the two options I see going forward.

Ingenuity into getting this done.

Lourenco Goncalves: These are the two options I see going forward.

Ingenuity into getting this done.

Inside the United States or in partnership with Canada that has experience in mining.

<unk> stage or in partnership with Canada that has experience in mining.

[Analyst]: LG, thanks for that detail. Maybe just as a follow-up, what resources have you brought in to date to explore the opportunity, and when is kind of the first mile marker in terms of a potential product mix or any economics? Should we be thinking about something early next year? Appreciate any color.

Okay. Thanks for that detail, maybe just as a follow up.

There is not so rare elements at our core.

What resources have been brought in to date to explore the opportunity in.

Not so rare elements at our core.

<unk>.

When is the first mile marker in terms of a potential product mix or any economics should we be thinking about something early next year I appreciate any color.

<unk>.

Okay. Thanks again really appreciate the update this morning and continued best of luck.

Nick Giles: Elgie, thanks again. Really appreciate the update this morning, and continue best of luck.

Nick Giles: LG, thanks again. Really appreciate the update this morning, and continue best of luck.

Thanks, Nick.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

Lourenço Gonçalves: Thanks, Nick.

Lourenco Goncalves: Thanks, Nick.

Lourenco Goncalves: Look, we've identified two sites that are the most promising. We are working with the geologists to assess whether these deposits could become commercially viable. That's where we're at. Don't forget, as you said, we are a mining company, so this is not new territory for us. We understand mining into these lands more than anyone, because we have been doing it for a long, long time. We will see how we go from there, but that's a potential that we will not let go without putting a lot of effort and a lot of ingenuity into getting this done inside the U.S. or in partnership with Canada that has experience in mining these not-so-rare elements that are called rare earths.

Okay.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

We've identified two sites that have the most promising.

Operator: Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead. Mr. Harris, please make sure your phone is not on mute. We'll move on to the next question. The next question is coming from Lawson Winder of Bank of America. Please go ahead.

We are working with geologists to assess whether these deposits deposits could become commercially viable that's where we're at and don't forget.

Mr. Harris, Please make sure your phone is not on mute.

Said, we are a mining company. So this is not new territory for us we understand.

We'll move on to the next question. The next question is coming from Lawson Winder of Bank of America. Please go ahead.

<unk>.

Thank you very much operator, and good morning, Lorenzo and sell so thank you for today's updates.

Mining into these lands more than anyone because we have been doing for a long long time.

Thank you very much operator, and good morning, Lorenzo it's also.

Lawson Winder: Thank you very much, Operator. Good morning, Lourenco and Celso. Thank you for today's update. Could I ask just about your decision to deprioritize the asset sale process? How has that process gone to date, and then has there been any interest, and if so, in what assets?

Thank you for today's updates.

I ask just about your decision to deep prioritize the asset sale process. How is that process done to date and then has there been any interest in and if so in what assets.

Can I ask just about your decision to deep prioritize the asset sale process. How has that process gone to date and then has there been any interest in <unk> and if so in what assets.

And we will see how we go from there, but thats a potential that we will not let go without putting a lot of effort and a lot of.

We look at.

Ingenuity into getting this done.

Like I said the price.

We did not stop by any stretch actually we closed on.

Like I said the process, we did not stop by and stretch actually we closed on.

Lourenço Gonçalves: Well, look, like I said, the process we did not stop by any stretch. Actually, we closed on a portion of the sale of FPT during the weekend. So we have, during the close, we have a signed contract. I misspoke. It's not a closing yet, but it'll be a short closing. And the portion that we sold on FPT is not even a site that we explore for our own EBITDA. So it doesn't change at all the EBITDA that you generate from FPT. So we're very pleased that we had more than one part interested on that specific portion of FPT, including the Florida assets. And we are very excited with the opportunity to continue to sell the remaining portions of FPT as we go. The other asset, Lawson, that we're considering selling would be our direct reduction plant in Toledo, Ohio.

Lourenco Goncalves: Well, look, like I said, the process we did not stop by any stretch. Actually, we closed on a portion of the sale of FPT during the weekend. So we have, during the close, we have a signed contract. I misspoke. It's not a closing yet, but it'll be a short closing. And the portion that we sold on FPT is not even a site that we explore for our own EBITDA. So it doesn't change at all the EBITDA that you generate from FPT. So we're very pleased that we had more than one part interested on that specific portion of FPT, including the Florida assets. And we are very excited with the opportunity to continue to sell the remaining portions of FPT as we go. The other asset, Lawson, that we're considering selling would be our direct reduction plant in Toledo, Ohio.

Inside the United States or in partnership with Canada that has experience in mining.

A portion of the sea of RPT.

There is not so rare elements at a core called rare Earths.

During the weekend. So we we have with <unk>, we have a signed contract.

During the weekend, so we we have with <unk>.

Have a signed contract.

[Analyst]: LG, thanks again. Really appreciate the update this morning and continue best of luck.

Okay. Thanks again really appreciate the update this morning continued textbook.

I misspoke.

Our closed yet, but it will be a short closing and the portion that we sold on MPT is not even a site that we explore for our own EBITDA. So.

Our closed yet, but it will be a short closing.

Lourenco Goncalves: Thanks, Nick.

Thanks, Nick.

And the portion that we sold on MPT is not even a site that we explore for our own EBITDA. So it.

Operator: Thank you. Our next question is coming from Michael Dwayne Harris of Goldman Sachs. Please go ahead. Mr. Harris, please make sure your phone is not on mute. We'll move on to the next question. The next question is coming from Lawson Winder of Bank of America. Please go ahead.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

It doesn't change at all the EBITDA that you generate from SPT. So we're very pleased that we had more than one.

It doesn't change at all the EBITDA that you generate from SPT. So we're very pleased that we have more than one.

Mr. Harris, Please make sure your phone is not on mute.

Interest Don on that specific portion of the <unk>, including the Florida assets and we are very excited with the opportunity to continue to to sell.

We'll move on to the next question. The next question is coming from Lawson Winder with Bank of America. Please go ahead.

[Analyst]: Thank you very much, Operator. Good morning, Lourenco and Celso. Thank you for today's update. Could I ask just about your decision to deprioritize the asset sale process? How has that process gone to date, and has there been any interest, and if so, in what assets?

Thank you very much operator, good morning, Lorenzo and also thank you for today's update.

The remaining portions of our PT as we go the other asset that we are considering selling.

The remaining portions of their PT as we grow the other asset that we are considering selling.

Can I ask just about your decision to deep prioritize the.

Asset sale process, how is that process done to date, and then has there been any interest and if so in what assets.

Would be our direct reduction plant in <unk>, Ohio, because as you might conclude on your on your own but I will reiterate here.

Would be our direct reduction plant into lead Ohio, because as you might conclude on your on your own but I will reiterate here we have no interesting in building.

Lourenço Gonçalves: Because, as you might conclude on your own, but I will reiterate here, we have no interest in building a flat-rolled mini-mill ourselves. I was keeping that HBI plant to supply Big River in case we had the opportunity to acquire U.S. Steel, which did not play out. So as we did not acquire Big River through the acquisition of U.S. Steel, I don't see any specific strategic value of keeping a direct reduction plant producing HBI with the strict goal of supplying a flat-rolled mini-mill producing more of a high-end type of flat-rolled products. That's not my problem anymore. So we still have a lot of interest in that specific plant, but this discussion with the MOU and the subsequent work that we're doing with our partner is showing that we might be doing other things with that plant, which I will not elaborate at this point.

Lourenco Goncalves: Because, as you might conclude on your own, but I will reiterate here, we have no interest in building a flat-rolled mini-mill ourselves. I was keeping that HBI plant to supply Big River in case we had the opportunity to acquire U.S. Steel, which did not play out. So as we did not acquire Big River through the acquisition of U.S. Steel, I don't see any specific strategic value of keeping a direct reduction plant producing HBI with the strict goal of supplying a flat-rolled mini-mill producing more of a high-end type of flat-rolled products. That's not my problem anymore. So we still have a lot of interest in that specific plant, but this discussion with the MOU and the subsequent work that we're doing with our partner is showing that we might be doing other things with that plant, which I will not elaborate at this point.

Lourenco Goncalves: Like I said, the process, we did not stop by any stretch. Actually, we closed on a portion of the sale of FPT assets during the weekend. We didn't close. We have a signed contract. I misspoke. It's not a closing yet, but it will be a short closing. The portion that we sold on FPT assets is not even a site that we explore for our own EBITDA. It doesn't change at all the EBITDA that we generate from FPT assets. We're very pleased that we had more than one party interested in that specific portion of FPT assets, including the Florida assets, and we are very excited with the opportunity to continue to sell the remaining portions of FPT assets as we go.

We look at.

We have no interesting in building.

Like I said the process, we did not stop by any stretch actually we closed on.

Flat rolled minimill ourselves.

Flat rolled mini mill ourselves hours, keeping that hei plant to supply Big River in case, we had the opportunity to acquire U S steel, which did not play out so as we did not acquire.

A portion of the sea of RPT.

Keeping that hei plant to supply Big River in case, we had the opportunity to acquire U S steel, which did not play out so as we did not acquire.

During the weekend. So we we have with <unk>, we have a signed contract.

I misspoke.

Our closed yet, but it will be a short closing.

Big River through the acquisition of where steel.

Big River through the acquisition of <unk> steel.

The portion that we sold on MPT is not even a site that we explore for our own EBITDA. So it.

I don't see any specific strategic value of keeping direct reduction plant producing <unk> with the street it's strict.

I don't see any.

Specific strategic value of keeping.

It doesn't change at all the EBITDA that you generate from SPT. So we're very pleased that we have more than one.

Direct reduction plant producing <unk> with the street it's.

Our goal of supply flat rolled minimill producing.

Strict.

The goal of supply flat rolled minimill, producing more of a high end type of flat rolled products. That's not my problem anymore. So we still have a lot of interest in in that specific plant but.

Interest Don on that specific portion of the of equity, including the Florida assets and we are very excited with the opportunity to continue to to sell.

More of a high end type of flat rolled products. That's not my problem anymore. So we still have a lot of interest in in that specific plant, but this discussion with the Mou and the subsequent to work that we're doing with our <unk>.

The remaining portions of our PT as we go the other asset losses that were considering selling.

This discussion with the Mou and the subsequent to work that we're doing with our own.

Lourenco Goncalves: The other asset, Lawson, that we're considering selling would be our direct reduction plant in Toledo, Ohio, because, as you might conclude on your own, but I will reiterate here, we have no interest in building a flat-rolled mini-mill ourselves. I was keeping that HBI plant to supply Big River in case we had the opportunity to acquire U.S. Steel, which did not play out. As we did not acquire Big River through the acquisition of U.S. Steel, I don't see any specific strategic value of keeping a direct reduction plant producing HBI with the strict goal of supplying flat-rolled mini-mill producing more of a high-end type of flat-rolled products. That's not my problem anymore.

With our partner.

And with our partner ensure.

Ensuring that we might be.

Would be our direct reduction plant into lead Ohio, because as you might conclude on your on your own but I will reiterate here we.

Doing other things with that plant, which I will not elaborate at this point so.

Im kind of.

We are still considering alternatives, but deep prioritizing that because the Mou.

Lourenço Gonçalves: So I'm kind of still considering alternatives, but I'm deprioritizing that because the MOU trumps (no pun intended) trumps the opportunity of selling itself as a standalone unit, the Toledo plant.

Lourenco Goncalves: So I'm kind of still considering alternatives, but I'm deprioritizing that because the MOU trumps (no pun intended) trumps the opportunity of selling itself as a standalone unit, the Toledo plant.

We are still considering alternatives, but deep prioritizing debt because the Mou.

We have no interest in building.

Flat rolled mini mill ourselves, our us keeping that <unk> plant to supply Big River in case, we had the opportunity to acquire U S steel, which did not play out so as we did not acquire.

Pumps, no pun intended trumps the opportunity of selling itself.

As a stand alone unit the Toledo plant.

Okay understood that's very clear if I could just follow up on your comment on FTE.

Nick Giles: Okay, understood. That's very clear. If I could just follow up on your comment on FPT, should we be looking for some sort of announcement on that sale of a portion or partnership?

Lawson Winder: Okay, understood. That's very clear. If I could just follow up on your comment on FPT, should we be looking for some sort of announcement on that sale of a portion or partnership?

Big River through the acquisition of <unk> steel.

Really looking for some sort of announcement on that.

I don't see any.

Sale of a portion of our partnership.

Specific strategic value of keeping.

Just made it we.

Just made it with.

We are under agreements to sue.

Direct reduction plant producing <unk> with the street strict.

Lourenço Gonçalves: I just made it. We are under agreement to sell the Florida assets to SA Recycling. And that's the deal. So it's out. I just said it to you.

Lourenco Goncalves: I just made it. We are under agreement to sell the Florida assets to SA Recycling. And that's the deal. So it's out. I just said it to you.

We are under agreements to sell.

Phil.

The Florida assets too.

Strict.

SA recycling.

Our goal of supply flat rolled minimill, producing more of a high end type of flat rolled products. That's not my problem anymore. So we still have a lot of interest in in that specific plant but.

A recycling.

So that's the deal so.

Its out I, just said it to you.

I just said it to you.

Can you provide any detail on economics at this point is it too early.

Lourenco Goncalves: We still have a lot of interest in that specific plant, but this discussion with the MOU and the subsequent work that we're doing with our partner is showing that we might be doing other things with that plant, which I will not elaborate at this point. I'm kind of still considering alternatives, but I'm deprioritizing that because the MOU trumps, no pun intended, trumps the opportunity of selling itself as a standalone unit, the Toledo plant.

Nick Giles: Can you provide any detail on economics at this point, or is it too early?

Lawson Winder: Can you provide any detail on economics at this point, or is it too early?

No.

Okay.

<unk>.

Okay, but okay.

This discussion with the Mou and the subsequent to work that we're doing with our own.

Lourenço Gonçalves: No.

Lourenco Goncalves: No.

Thank you for that which is good.

Thank you for that it's good if you apply a multiple to a site that generates zero EBITDA you can pick one.

Nick Giles: Okay.

Lawson Winder: Okay.

Multiple to a site that generates zero EBITDA you can pick one.

Lourenço Gonçalves: But it's good.

Lourenco Goncalves: But it's good.

Nick Giles: Thank you for that.

Lawson Winder: Thank you for that.

Lourenço Gonçalves: It's good. And if you apply a multiple to a site that generates zero EBITDA, you can pick one. So it doesn't change the economics of the rest. That's the importance of this sale. That's why I'm disclosing. That was an asset that, for me, was always completely relevant because I'm not going to put a mini-mill in Florida to produce rebar or anything else. So that was not a site that I was interested in from the get-go. It came as an addendum to what I was really interested in having, the real FPT, the FPT around Detroit and around prime scrap. And that's completely preserved. And there are other companies, more than one, actually, interested in acquiring the rest. And they both have the same thing in common. They don't want Florida. So we moved Florida.

Lourenco Goncalves: It's good. And if you apply a multiple to a site that generates zero EBITDA, you can pick one. So it doesn't change the economics of the rest. That's the importance of this sale. That's why I'm disclosing. That was an asset that, for me, was always completely relevant because I'm not going to put a mini-mill in Florida to produce rebar or anything else. So that was not a site that I was interested in from the get-go. It came as an addendum to what I was really interested in having, the real FPT, the FPT around Detroit and around prime scrap. And that's completely preserved. And there are other companies, more than one, actually, interested in acquiring the rest. And they both have the same thing in common. They don't want Florida. So we moved Florida.

With our partner.

Ensuring that we might be.

Okay. So it doesn't change the economics of the rest that's the importance of this sale Thats why im disclosure there was an asset that form you as always.

Okay. So it doesn't change the economics of the rest that's the importance of this sale. That's why we disclosed there was an asset that for you as always.

Doing other things with that plant, which I will not elaborate at this point so.

Im kind of a.

We are still considering alternatives, but deep prioritizing that because the Mou.

Please irrelevant because.

I'm not going to to put.

Im not going to to put.

Any view in Florida to produce rebar or anything else. So there was not a site there was interest from the get go with Kim.

Many of you in Florida to produce rebar or anything else. So there was not a site. There was interest from the get go which came as a.

Pumps, no pun intended trumps the opportunity of selling itself.

As a stand alone unit the Toledo plant.

And addendum to what I was really interested in having the <unk> deputy around Detroit and their own prime scrap and that's completely preserved and there are other companies more than one actually interested in acquiring the rest.

[Analyst]: Okay. Understood. That's very clear. If I could just follow up on your comment on FPT, should we be looking for some sort of announcement on that sale of a portion or partnership?

Okay understood that's very clear if I could just follow up on your comment on FTE.

We'd be looking for some sort of announcement on that.

Sale of a portion of our partnership.

Lourenco Goncalves: I just made it. We are under agreement to sell the Florida assets to SA Recycling, and that's the deal. It's out. I just said it to you.

Just made it we are under agreements to sell.

They both have the same thing in government. They don't want Florida, So we moved Florida, but we're not going to reveal the number but the number is extremely good and you'll see in our liquidity going forward, but.

The Florida assets too.

They both have the same thing income and they don't want Florida. So we moved Florida, but we're not going to reveal the number but the number is extremely good and you'll see in our liquidity going forward.

A recycling.

So that's the deal so.

Lourenço Gonçalves: But we're not going to reveal the number, but the number is extremely good, and you'll see liquidity going forward. But you got to wait because this is just a signed agreement. It's not closing yet, so we can't disclose the number.

Lourenco Goncalves: But we're not going to reveal the number, but the number is extremely good, and you'll see liquidity going forward. But you got to wait because this is just a signed agreement. It's not closing yet, so we can't disclose the number.

I just said it to you.

You got to wait because this is Justin.

[Analyst]: Can you provide any detail on economics at this point, or is it too early?

Can you provide any detail on economics at this point is it too early.

We got to wait because this is just us.

Signed the agreements are closing yet so we can't disclose the number yet.

Sign the agreements are closing yet so we can't disclose the number yet.

Lourenco Goncalves: No.

<unk>.

Yes understood.

[Analyst]: Okay.

Okay.

Lourenco Goncalves: It is good.

Yes understood.

[Analyst]: Thank you for that.

Alright, thanks, very much for your responses I appreciate it thanks Lawson.

Lourenco Goncalves: It's good. If you apply a multiple to a site that generates zero EBITDA, you can pick one.

Thank you for that it's good if you apply a multiple to a site that generates zero EBITDA you can pick one.

Nick Giles: Yeah, understood. All right. Thanks very much for your responses. I appreciate it.

Lawson Winder: Yeah, understood. All right. Thanks very much for your responses. I appreciate it.

Alright, thanks, very much for your responses I appreciate it thanks a lot.

Thank you. The next question is coming from Phil Gibbs of Keybanc capital markets. Please go ahead.

Lourenço Gonçalves: Thanks, Lawson.

Celso Goncalves: Thanks, Lawson.

Thank you. The next question is coming from Phil Gibbs of Keybanc capital markets. Please go ahead.

[Analyst]: Okay.

Okay. So it doesn't change the economics of the rest that's the importance of this sale that's why I'm disclosing there was an asset that from you as always.

Lourenco Goncalves: It doesn't change the economics of the rest. That's the importance of this sale. That's why I'm disclosing. That was an asset that, for me, was always completely relevant because I'm not going to put a mini-mill in Florida to produce rebar or anything else. That was not a site I was interested in from the get-go. It came as an addendum to what I was really interested in having, the real FPT, the FPT around Detroit and around Prime Scrap, and that's completely preserved. There are other companies, more than one actually, interested in acquiring the rest, and they both have the same thing in common. They don't want Florida, so we moved to Florida. We're not going to reveal the number, but the number is extremely good, and you'll see in our liquidity going forward.

Operator: Thank you. The next question is coming from Phil Gibbs of KeyBanc Capital Markets. Please go ahead.

Hey, good morning.

Sure.

Hey, good morning.

Morning, Joe.

Good morning, Joe.

Philip Ross Gibbs: Hey, good morning.

Philip Gibbs: Hey, good morning.

Question is on the auto contracts in any of the new contracts kick in during during this quarter.

Lourenco Goncalves: Morning, Phil.

Lately relevance because.

Philip Ross Gibbs: Question is on the auto contracts. Did any of the new contracts kick in during this quarter, or do any of the new contracts kick in during Q4?

Philip Gibbs: Question is on the auto contracts. Did any of the new contracts kick in during this quarter, or do any of the new contracts kick in during Q4?

Im not going to too.

Or do any of the new contracts kick in during the fourth quarter.

Many of you in Florida to produce rebar or anything else. So there was not a site. There was interest from the get go which came as a.

Or do any of the new contracts kick in during the fourth quarter.

We have some kicking in October one.

Lourenço Gonçalves: Yeah, we have some kicking in October 1st. I'm simplifying when I'm saying 2026 because it's a short quarter. Q4, particularly in automotive, is not a quarter that we are excited about because, you know, we're going to have shutdowns through the end of the year. That's normal course. Sometimes we have, I'm not sure about this year because they are really busy, but it's normal course for them to shut down around Thanksgiving as well. But we are going to see a lot of activity coming from these contracts as the year turns to 2026. So we're super excited with everything that's happening with General Motors, Ford, and Stellantis with this big announcement of $13 billion bringing back the plants that we were, by far, the largest supplier. So all these things are coming to us at this point. We have Ford. We have Hyundai. You have Honda.

Lourenco Goncalves: Yeah, we have some kicking in October 1st. I'm simplifying when I'm saying 2026 because it's a short quarter. Q4, particularly in automotive, is not a quarter that we are excited about because, you know, we're going to have shutdowns through the end of the year. That's normal course. Sometimes we have, I'm not sure about this year because they are really busy, but it's normal course for them to shut down around Thanksgiving as well. But we are going to see a lot of activity coming from these contracts as the year turns to 2026. So we're super excited with everything that's happening with General Motors, Ford, and Stellantis with this big announcement of $13 billion bringing back the plants that we were, by far, the largest supplier. So all these things are coming to us at this point. We have Ford. We have Hyundai. You have Honda.

Im simplify what I'm, saying.

Im simplify what im seeing too.

And at the end to what I was really interested in having the <unk> deputy around Detroit and their own prime scrap and that's completely preserved and there are other companies more than one actually interested in acquiring the rest.

2026, because it says.

2026, because you know.

Short quarter.

It is a short quarter.

No.

Fourth quarter, particularly in automotive is not a quarter that we.

Fourth quarter, particularly in automotive is not a quarter that.

We are excited about because who are going to have shut down through the end of the year that's normal course.

Tom you have.

Sometimes you have.

I'm not sure about this year because they are really busy but it's normal course for them to shut down Thanksgiving as well, but we're going to see a lot of activity coming from these contracts as the year turns to 2026. So we're super excited with everything Thats happening with General Motors Ford stay Lantus.

I'm not sure about this year because they are really busy but it's normal course for them to shut down things Thanksgiving as well, but we're going to see a lot of activity coming from these contracts as the year turns to 2026. So we're super excited with everything that's happening with General Motors Ford still Lantus.

Lourenco Goncalves: You have to wait because this is just a signed agreement, it's not closing yet, so we can't disclose the number.

We got to wait because this is just us.

Sign the agreements are closing yet so we can't disclose the number yet.

[Analyst]: Yeah. Understood. All right. Thanks very much for your responses. I appreciate it.

Yes understood.

Alright, thanks, very much for your responses I appreciate it thanks a lot.

With this big announcements of $13 billion, bringing back the plants that we were by far the largest suppliers. So all these things are coming to us at this point.

Lourenco Goncalves: Thanks, Lawson.

This big announcements of $13 billion, bringing back the plants that we were by far the largest suppliers. So all these things are coming to us at this point.

Operator: Thank you. The next question is coming from Philip Ross Gibbs of KeyBank Capital Markets. Please go ahead.

Thank you. The next question is coming from Phil Gibbs of Keybanc capital markets. Please go ahead.

[Analyst]: Hey, good morning.

Hey, good morning.

Lourenco Goncalves: Morning, Phil.

We have four do we have.

Morning, Joe.

We have four do have Hyundai you have Honda, we have Toyota in North America.

[Analyst]: Question is on the auto contracts. Did any of the new contracts kick in during this quarter, or do any of the new contracts kick in during the fourth quarter?

Today, you have Honda, we have Toyota in North America. These are all happening and the good thing.

Question is on the auto contracts in any of the new contracts kick in during during this quarter.

Lourenço Gonçalves: We have Toyota in North America. These are all happening. The good thing, Phil, is that the car manufacturers finally realize that it's not a good thing to wait and wait and wait and see that the Trump administration is not changing their tune. I think Secretary Lutnick was very clear when he said the United States will be first in producing automobiles. Canada can be second. That shows resolve. I like to see that, and that helps us in terms of getting our business moving in the right direction. We are good.

Lourenco Goncalves: We have Toyota in North America. These are all happening. The good thing, Phil, is that the car manufacturers finally realize that it's not a good thing to wait and wait and wait and see that the Trump administration is not changing their tune. I think Secretary Lutnick was very clear when he said the United States will be first in producing automobiles. Canada can be second. That shows resolve. I like to see that, and that helps us in terms of getting our business moving in the right direction. We are good.

These are all happening and the good thing.

Or do any of the new contracts kick in during the fourth quarter.

Is that the car manufacturers finally realized that it's not I would think to wait and wait and wait and see that the Trump administration is not changing their tune I think secretary, let Nick was very clear when he said.

Is that the car manufacturers finally realized that it's not.

Lourenco Goncalves: Yeah. We have some kicking in October 1. I'm simplifying when I'm saying 2026 because, you know, it's a short quarter. The fourth quarter, particularly in automotive, is not a quarter that we are excited about because, you know, we're going to have shutdowns through the end of the year. That's a normal course. Sometimes we have, I'm not sure about this year because they're really busy, but it's a normal course for them to shut down around Thanksgiving as well. We are going to see a lot of activity coming from these contracts as the year turns to 2026. We're super excited with everything that's happening with General Motors, Ford, Stellantis, with this big announcement of $13 billion bringing back the plants that we were by far the largest supplier. All these things are coming to us at this point.

We have some kicking in October one.

I think to wait and wait and wait and see that the Trump administration is not changing their tune I think secretary, let Nick was very clear when he said.

Im simplify what I'm, saying.

2026, because it sells.

Short quarter.

No.

Stacy will be first in producing alpha automobiles, Canada can be.

<unk> fourth quarter, particularly in automotive is not a quarter that we.

Your next steps would be first in producing alpha automobiles, Canada can be.

So thats shows resolve so I'd like to see that and Thats.

We are excited about because who are going to have shutdowns through the end of the year that's normal course.

So thats shows resolve so I'd like to see that and that helps us in terms of getting our.

Help us in terms of getting our.

Tom you have.

I'm not sure about this year because they are really busy but it's normal course for them to shut down around Thanksgiving as well, but we're going to see a lot of activity coming from these contracts as the year turns to 2026. So we're super excited with everything that's happening with General Motors Ford stay Lantus.

Our.

Business moving in the right direction. So we're good.

And then just a follow up on the cost side, what is what does the guidance imply for further unit cost reductions in the in the fourth quarter and should we expect.

And then just a follow up on the cost side, what is what does the guidance imply for <unk>.

Philip Ross Gibbs: And then just to follow up on the cost side, what does the guidance imply for further unit cost reductions in Q4, and should we expect any more momentum in the first part of 2026? Thank you.

Philip Gibbs: And then just to follow up on the cost side, what does the guidance imply for further unit cost reductions in Q4, and should we expect any more momentum in the first part of 2026? Thank you.

Further unit cost reductions in the in the fourth quarter and should we expect.

With this big announcements of $13 billion, bringing back the <unk>.

Any more momentum.

In the first part of 'twenty six thank you.

<unk> that we were by far the largest suppliers. So all these things are coming to us at this point.

In the first part of 'twenty six thank you.

I will let social handle just one field resource.

Lourenço Gonçalves: I'll let Celso handle this one, Phil. Please, Celso.

Lourenco Goncalves: I'll let Celso handle this one, Phil. Please, Celso.

Yeah, sure Hey, Phil.

Yes, sure Hey, Phil.

Lourenco Goncalves: We have Ford, we have Hyundai, we have Honda, we have Toyota in North America. These are all happening. The good thing, Phil, is that the car manufacturers finally realized that it's not a good thing to wait and wait and wait and seeing that the Trump administration is not changing their tune. I think Secretary Lednik was very clear when he said the U.S. will be first in producing automobiles. Canada can be second. That shows resolve. I like to see that, and that helps us in terms of getting our business moving in the right direction. We are good.

We have four do we have.

If you look at the cost performance in Q3 adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix.

Philip Ross Gibbs: Yeah, sure. Hey, Phil. If you look at the cost performance in Q3 adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix. You can see in our track record achieving cost reductions dating back to 2023. We achieved an $80 a ton cost reduction in 2023. We were down another $30 a ton in 2024. And then now in 2025, our unit costs are still expected to be down $50 a ton. So we're not changing the guide there. Just as it relates to other Q4 kind of talking points and general guidance that I can give you, shipments should be similar as Q3, around 4 million tons. You have to consider seasonality with the holidays, offsetting improved demand. Auto shipments are expected to be similar.

Celso Goncalves: Yeah, sure. Hey, Phil. If you look at the cost performance in Q3 adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix. You can see in our track record achieving cost reductions dating back to 2023. We achieved an $80 a ton cost reduction in 2023. We were down another $30 a ton in 2024. And then now in 2025, our unit costs are still expected to be down $50 a ton. So we're not changing the guide there. Just as it relates to other Q4 kind of talking points and general guidance that I can give you, shipments should be similar as Q3, around 4 million tons. You have to consider seasonality with the holidays, offsetting improved demand. Auto shipments are expected to be similar.

If you look at the cost performance in Q3 adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix.

Today, you have Honda, we have Toyota in North America. These are all happening and the good thing.

You can see in our track record of achieving cost reductions dating back to 2023, we achieved an $80 per ton cost reduction in 'twenty. Three we were down another $30 a ton in 'twenty four and then now in 25 of our unit costs are still expected to be down $50 a ton.

Stacy will be first in producing alpha automobiles, Canada can be.

So we're not changing the guide there.

So thats shows resolve so I'd like to see that and Thats.

So we're not changing the guide there.

Just as it relates to.

Other Q4 kind of talking points in general guidance that I can give you.

Helps us in terms of getting our.

Other Q4 kind of talking points in general guidance that I can give you.

Our.

Shipments should be similar as Q3 around 4 million tons.

Our.

Shipments should be similar as Q3 around 4 million tons.

Business moving in the right direction. So we're good.

You have to consider seasonality with the holidays.

[Analyst]: Just a follow-up on the cost side. What does the guidance imply for further unit cost reductions in the fourth quarter, and should we expect any more momentum in the first part of 2026? Thank you.

And then just a follow up on the cost side, what is what does the guidance imply for further unit cost reductions in the in the fourth quarter and should we expect.

Offsetting improved demand.

Auto shipments are expected to be similar.

And then in terms of pricing.

You probably have all the pieces that you need to calculate the ASP for Q4.

Philip Ross Gibbs: And then in terms of pricing, you probably have all the pieces that you need to calculate the ASP for Q4. So relative to Q3, Q4 costs should be relatively similar to Q3. Thank you.

Celso Goncalves: And then in terms of pricing, you probably have all the pieces that you need to calculate the ASP for Q4. So relative to Q3, Q4 costs should be relatively similar to Q3. Thank you.

You probably have all the pieces that you need to calculate the ASP for Q4.

Any more momentum.

In the first part of 'twenty six thank you.

So relative to Q3 Q4.

Lourenco Goncalves: I'll let Celso handle this one, Phil. Please, Celso.

I will let social handle this one fuel resource.

<unk> should be relatively similar to Q3.

[Analyst]: Yeah, sure. Hey, Phil. If you look at the cost performance in Q3, adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix. You can see in our track record achieving cost reductions dating back to 2023. We achieved an $80 a ton cost reduction in 2023. We were down another $30 a ton in 2024. Now in 2025, our unit costs are still expected to be down $50 a ton. We're not changing the guide there. Just as it relates to other Q4 kind of talking points and general guidance that I can give you, shipments should be similar as Q3, around 4 million tons. You have to consider seasonality with the holidays, offsetting improved demand. Auto shipments are expected to be similar.

<unk> should be relatively similar to Q3.

Yes, sure Hey, Phil.

If you look at the cost performance in Q3 adjusted for the increased automotive mix, we still expect costs to be down $50 a ton year over year when adjusted for this mix.

Thank you.

Thanks Bill.

Thank you. Our next question is coming from Carlos de Alba of Morgan Stanley. Please go ahead.

Lourenco Goncalves: Thanks, Phil.

Thank you. Our next question is coming from Carlos de Alba of Morgan Stanley. Please go ahead.

Operator: Thank you. Our next question is coming from Carlos De Alba of Morgan Stanley. Please go ahead.

Yes, good morning, <unk>. So thanks for the update just on <unk>.

Yes, good morning <unk>. Thanks.

You can see in our track record achieving cost reductions dating back to 2023, we achieved an $80 per ton cost reduction in 'twenty. Three we were down another $30 a ton in 'twenty four and then now in 25, our unit costs are still expected to be down $50 a ton.

Carlos De Alba: Yeah, good morning, Lourenco and Celso. Thanks for the update. Just following up on the auto contracts, can you maybe give us some comments on the volume growth implicit in these new agreements and potentially an indication of how much pricing may be moving up or down or staying flat? Definitely a very important piece of the business going forward.

For the update just on <unk>.

Following up on the auto contract.

Can you maybe.

Give us some comments on that.

Give us some comments on <unk>.

Volume growth complicit in this.

Volume growth in <unk> in this.

Payments and potentially an indication of how much pricing may be moving up or down or staying flat.

Womens and potentially an indication of how much pricing may be moving up or down or staying flat.

So we're not changing the guide there.

Just as it relates to.

Definitely very important piece of data.

Other Q4 kind of talking points in general guidance that I can give you.

Looking forward.

Going forward.

Look.

We.

Shipments should be similar as Q3 around 4 million tons.

We.

Directionally this contract to generate.

Lourenço Gonçalves: Look, directionally, these contracts will generate a lot more margin for us, including margin per ton. That's all I can share at this point with you. These are good contracts. But we realize the one thing, Carlos, that probably has been missed throughout this entire conversation. I'm trying to, in my prepared remarks, and now using your question, so thanks for the question, explain a little bit about what Cleveland-Cliffs really is in terms of the automotive industry. We hear a lot about market share in automotive, gaining market share, losing market share. Let's understand one thing.

Directionally this contract to generate.

You have to consider seasonality with the holidays.

A lot more margin for us, including much per ton and that's all I can share at this point we do.

Lot more margin for us, including much per ton and that's all I can share at this point we do.

Offsetting improved demand.

Auto shipments are expected to be similar.

[Analyst]: In terms of pricing, you probably have all the pieces that you need to calculate as the ASP for Q4. Relative to Q3, Q4 costs should be relatively similar to Q3.

These are good contracts, but we realized one thing Carlos that probably has been missed throughout this entire conversation.

And then in terms of pricing.

These are good contracts, but we realized one thing Carlos that probably has been missed throughout this entire conversation.

You probably have all the pieces that you need to calculate the ASP for Q4.

So relative to Q3 Q4.

I'm trying to.

<unk> should be relatively similar to Q3.

I'm trying to.

In my prepared remarks.

And now using your question. So thanks for the question.

Lourenco Goncalves: Thank you.

Thank you.

And now using your question. So thanks for the question.

[Analyst]: Thanks, Phil.

Thanks Bill.

I will try to explain a little bit about.

Operator: Thank you. Our next question is coming from Carlos De Alba of Morgan Stanley. Please go ahead.

Thank you. Our next question is coming from Carlos de Alba of Morgan Stanley. Please go ahead.

I will try to explain a little bit about.

What Cleveland cliffs really is in terms of the automotive industry.

[Analyst]: Yeah. Good morning, Lourenco and Celso. Thanks for the update. Just on following up on the auto contracts, can you maybe give us some comments on the volume growth implicit in this new agreement and potentially an indication of how much pricing may be moving up or down or staying flat? Definitely a very important piece of the business going forward.

Yes, good morning, <unk>, thanks for it.

We hear a lot about market share and also board of gaining market share losing market share.

We hear a lot about market share in ultra board of gaining market share losing market share.

Any update just on <unk>.

And following up on the auto contract.

Can you maybe.

Give us some comments on that.

Understand one thing.

Cliffs has so much more capacity to produce the steels that they also would have industry needs and compares with any other.

Volume growth implicit in this is Neil.

Global on cliffs has so much more capacity to produce the steels that delta would have industry needs and compares with any other.

Lourenço Gonçalves: Cleveland-Cliffs has so much more capacity to produce the steels that the automotive industry needs in comparison with any other supplier or any other wannabe supplier of automotive steel that it's not even a topic of conversation talking about market share, about these type of things. We have five plants, full plants, that are ready to supply a lot more exposed parts than we are supplying right now. Not because we lost market share, but because the car manufacturers who are producing cars in places like Mexico, Canada, South Korea, and I'm talking about American car companies, even in Japan, American car companies. So that's the absurd of the entire thing. And that's what's being corrected.

Lourenco Goncalves: Cleveland-Cliffs has so much more capacity to produce the steels that the automotive industry needs in comparison with any other supplier or any other wannabe supplier of automotive steel that it's not even a topic of conversation talking about market share, about these type of things. We have five plants, full plants, that are ready to supply a lot more exposed parts than we are supplying right now. Not because we lost market share, but because the car manufacturers who are producing cars in places like Mexico, Canada, South Korea, and I'm talking about American car companies, even in Japan, American car companies. So that's the absurd of the entire thing. And that's what's being corrected.

Agreements and potentially an indication of how much pricing moving up or down or staying flat.

Supplier.

Any other one supplier of automotive steel that is.

Playa or any other one would be supplier of automotive steel that is not easy.

Definitely very important piece of data.

Going forward.

Lourenco Goncalves: Look, directionally, these contracts will generate a lot more margin for us, including margin per ton. That's all I can share at this point with you. These are good contracts. We realized the one thing, Carlos, that probably has been missed throughout this entire conversation. I'm trying to, in my prepared remarks, I'm trying and now using your question, so thanks for the question. I will try to explain a little bit about what Cleveland-Cliffs Inc. really is in terms of the automotive industry. We hear a lot about market share in automotive, gaining market share, losing market share. Let's understand one thing. Cleveland-Cliffs Inc. has so much more capacity to produce the steels that the automotive industry needs in comparison with any other supplier or any other wannabe supplier of automotive steel that it's not even a topic of conversation talking about market share, about these type of things.

Look.

It's not even a.

We.

Topic of conversation talking.

Of course precision talking.

Directionally this contract to generate.

Above market share about these type of things we have.

The above market share about these type of things we have.

Lot more margin for us, including much per ton and Thats all I can share at this point with you.

Five plants.

Right.

Full plants.

Lance.

Full plants.

That are ready to supply a lot more.

These are good contracts.

That are ready to supply a lot more.

But we realized one thing Carlos that probably has been missed throughout this entire conversation.

Our exposed parts.

Of exposed parts.

Then we are supplying right now not because we lost market share, but because the car manufacturers who are producing cars in places like Mexico, Canada, South Korea, and I'm talking about American car companies, even in Japan American car companies so that.

Then we are supplying right now not because we lost market share, but because the car manufacturers who are producing cars.

And I'm trying to.

In my prepared remarks.

And now using your question. So thanks for the question I'll try to explain a little bit about.

In places like Mexico, Canada, South Korea, and I'm talking about American car companies, even in Japan American car companies. So that's the absurd of the entire thing and that what's being corrected so as they are being compelled.

What Cleveland cliffs really is in terms of the automotive industry.

The absurd of the entire thing and that what's being corrected so as they are being compelled.

We hear a lot about market share in ultra board of gaining market share losing market share.

Lourenço Gonçalves: So as they are being compelled, in the lack of a better term, to produce cars in North America, in certain cases like Stellantis, they are coming to senses and coming back to the reality that North America is their main market and Cliffs is their main supplier. We are seeing the business coming back and coming back extremely stronger. Just to give one set of numbers for you to think: Columbus Coatings. It's one galvanizing line ready for extra wide exposed parts that produces today something between 280,000 and 300,000 tons a year. The line itself is able, as is, to produce 450,000 tons just by putting more throughput through the line. And that is coming.

Lourenco Goncalves: So as they are being compelled, in the lack of a better term, to produce cars in North America, in certain cases like Stellantis, they are coming to senses and coming back to the reality that North America is their main market and Cliffs is their main supplier. We are seeing the business coming back and coming back extremely stronger. Just to give one set of numbers for you to think: Columbus Coatings. It's one galvanizing line ready for extra wide exposed parts that produces today something between 280,000 and 300,000 tons a year. The line itself is able, as is, to produce 450,000 tons just by putting more throughput through the line. And that is coming.

The lack of a better term to produce cars in North America in certain cases like Este lantus.

And the lack of a better term to produce cars in North America in certain cases like Este lantus.

Understand one thing.

Global on cliffs has so much more capacity to produce the steels that they ought award of industry needs and compares with any other.

Coming to sensus and coming back to the reality that North America is their main market and cliffs as their main supplier. We are seeing the business coming back and coming back. It's extremely stronger this will give us one set of numbers for you to think Columbus Goodies.

Playa or any other one supplier of automotive steel that is not even a topic of conversation talking.

Above market share about these type of things we have.

It's one galvanizing line.

Lourenco Goncalves: We have five plants, full plants, that are ready to supply a lot more out-exposed parts than we are supplying right now, not because we lost market share, but because the car manufacturers who are producing cars in places like Mexico, Canada, South Korea, and I'm talking about American car companies, even in Japan, American car companies. That's the absurd of the entire thing. That was being corrected. As they are being compelled, in the lack of a better term, to produce cars in North America, in certain cases like Stellantis, they are coming to senses and coming back to the reality that North America is their main market and Cliffs is their main supplier. We are seeing the business coming back and coming back extremely stronger. Just to give one set of numbers for you to think.

Ready for extra wide exposed parts that produced today something between 280000 300000 tons a year.

Five plants.

Ready for extra wide exposed parts that produced today something between 280000 300000 tons a year.

Food plants.

That are ready to supply a lot more.

Our exports parts.

Align itself is able to produce 450000 tons.

Then we are supplying right now not because we lost market share, but because the camera factors who are producing cars.

But putting more throughput through July and debt discount and the site itself.

In places like Mexico, Canada, South Korea, and I'm talking about American car companies.

Is perfect to double in terms of the capacity in that specific site, because we have room to put another line side by side with existing one to double from 450000 to 900000, that's a single site.

Lourenço Gonçalves: And the site itself is perfect to double in terms of the capacity in that specific site because we have room to put another line side by side with the existing one to double from 450,000 to 900,000 tons. That's on a single site. And we don't need to invest to put the new line because we have idle capacity in Dearborn. The downstream Dearborn is the most modern galvanized steel plant in the world. It was built in 2013 by Severstal and acquired by AK Steel, and then we acquired AK Steel. So Dearborn is ready for more. Middletown, same thing. Rockport. Rockport needs to be visited. It's all robotic. It's all automated. Has been like that for at least another 1 or 1.5 decades. So it's there.

Lourenco Goncalves: And the site itself is perfect to double in terms of the capacity in that specific site because we have room to put another line side by side with the existing one to double from 450,000 to 900,000 tons. That's on a single site. And we don't need to invest to put the new line because we have idle capacity in Dearborn. The downstream Dearborn is the most modern galvanized steel plant in the world. It was built in 2013 by Severstal and acquired by AK Steel, and then we acquired AK Steel. So Dearborn is ready for more. Middletown, same thing. Rockport. Rockport needs to be visited. It's all robotic. It's all automated. Has been like that for at least another 1 or 1.5 decades. So it's there.

Is perfect to double in terms of the capacity in that specific site, because we have room to put another line side by side with existing one to double from 450000 to 900000, that's a single site.

In Japan American car companies. So that's the absurd of the entire thing and that what's being corrected.

So as they are being compelled.

Andrew we don't need to invest to put the new line, because we have idle capacity in Dearborn.

And the lack of a better term to produce cars in North America in certain cases like Este lantus.

Downstream via bonds the most modern.

Downstream Dearborn is the most modern.

Galvanized two plant in the World. It was built in 2013 by Silverstone and acquired by AK Steel and then we acquired AK steel.

Coming to sensus and coming back to the reality of that.

Galvanized two plant in the World. It was built in 2013 by Silverstone and acquired by AK Steel and then we acquired AK steel.

North America is their main market and cliffs as their main supplier.

So the airborne is ready for more Middletown same thing Rockport Rockport needs to be visited it's all robotic it's all automated has been like that.

So the airborne is ready for more mirror top same thing Rockport rockport needs to be visit it's all robotic it's all automated has been like that.

We are seeing the business coming back and coming back extremely stronger.

Just to give a one set of numbers for you to think Columbus Goodies.

Lourenco Goncalves: Columbus Coatings, it's one galvanizing line ready for extra-wide exposed parts that produce today something between 280,000 and 300,000 tons a year. The line itself is able, as is, to produce 450,000 tons just by putting what you put through the line. That is coming. The site itself is perfect to double in terms of the capacity in that specific site because we have room to put another line side by side with the existing one to double from 450,000 to 900,000 tons. That's on a single site. We don't need to invest to put the new line because we have idle capacity in Dearborn. The downstream Dearborn is the most modern galvanized steel plant in the world. It was built in 2013 by Severstal and acquired by AK Steel, and then we acquired AK Steel. Dearborn is ready for more. Middletown, same thing. Rockport needs to be visited.

For at least another.

One or one five decades, so is there.

It's one galvanizing line.

One or one five decades, so it's there.

Ready for extra wide exposed parts that produced today something between 280000 300000 tons a year.

<unk> that used to be called <unk> Tec, <unk> quote by inland and Nippon steel longer ago.

And new Carlyle that used to be called <unk> Tec <unk> quote by inland and Nippon steel long ago.

Lourenço Gonçalves: New Carlisle, that used to be called I/N Tek, I/N Kote by Inland and Nippon Steel long ago, is pretty modern and pretty well equipped to produce not only hot dip galvanized and galvanized, but also electro galvanized as well as Middletown Works. So we have so, and that's just exposed. If you go to no exposed, high-end, no exposed, you have Cleveland Works. Cleveland Works is the most technologically advanced mill to produce high strength, low alloys for the structure of cars here in the United States. And we have been doing that, but we have capacity for more. So that's prevalent everywhere. Indiana Harbor Works, Burns Harbor, our joint venture with Worthington Steel, Spartan Steel Coating, same thing. So that's 9 plants ready to grow as is or adding capacity as needed in the next 3, 4, 5, 6 years.

Lourenco Goncalves: New Carlisle, that used to be called I/N Tek, I/N Kote by Inland and Nippon Steel long ago, is pretty modern and pretty well equipped to produce not only hot dip galvanized and galvanized, but also electro galvanized as well as Middletown Works. So we have so, and that's just exposed. If you go to no exposed, high-end, no exposed, you have Cleveland Works. Cleveland Works is the most technologically advanced mill to produce high strength, low alloys for the structure of cars here in the United States. And we have been doing that, but we have capacity for more. So that's prevalent everywhere. Indiana Harbor Works, Burns Harbor, our joint venture with Worthington Steel, Spartan Steel Coating, same thing. So that's 9 plants ready to grow as is or adding capacity as needed in the next 3, 4, 5, 6 years.

<unk> is very modern and pretty well equipment to produce not only a hot dip galvanized in Gulf of new but also electro galvanized as well as middle town. So we have shown and Thats just exposed if you go to no exposed to high end no exposure have Cleveland.

The line itself is able to produce 450000 tons.

Is very modern and pretty well equipped to produce not only a hot dip galvanized in Gulf of new but also electro galvanized as well as mutual town. So we have and Thats just exposed if you go to now exposed to high end no exposure have Cleveland.

Just by putting more throughput through July and debt discount and the site itself.

Is perfect to double in terms of the capacity in that specific site, because we have room to put another line side by side with existing one to double from 450000 to 900000, that's a single site and.

Cleveland works is the.

The most technological technologically advanced new to produce high strength low alloy.

Most technological technologically advanced new to produce high strength low alloy.

The structure of cars.

And we don't need to invest to put the new line, because we have idle capacity in Dearborn.

Here in the United States, and we have been doing that but we have capacity for more so thats.

Here in the United States, and we have been doing that but we have capacity for more so thats <unk>.

<unk> is the most modern.

Prevalent everywhere, Indiana Harbor brands, our joint venture with working to instill Spartan same thing so that's nine plants ready to grow.

Everywhere, Indiana Harbor brands, our joint venture with working to instill Spartan same thing so that's nine plants ready to grow.

Galvanized two plant in the World. It was built in 2013 by Silverstone and acquired by AK Steel and then we acquired AK steel.

So they are born is ready for more mirror top same thing Rockport rockport needs to be visit it's all robotic it's automated has been like that.

As this or adding capacity as needed in the next 3456 years. So this movement that was initiated by President Trump that will percolate for the next five maybe 10 years, we will be all supported by Cleveland cliffs, and I am explaining to you the capacity I am not going to.

Is this or adding capacity as needed in the next 3456 years. So this movement that was initiated by President Trump that percolate for the next five maybe 10 years, we will be all supported by Cleveland cliffs, and I am explaining to you the capacity.

Lourenco Goncalves: It's all robotic. It's all automated. It has been like that for at least another one or one and a half decades. It's there. New Carlisle, that used to be called INTECH, INQUOTE, by Inland and Nippon Steel long ago, is pretty modern and pretty well equipped to produce not only hot-dip galvanized and galvan-new, but also electro-galvanized as well as Middletown. That's just exposed. If you go to non-exposed, high-end, no-exposed, you have Cleveland. Cleveland Works is the most technologically advanced mill to produce high-strength low alloys for the structure of cars here in the U.S. We have been doing that, but we have capacity for more. That's prevalent everywhere. Indiana Harbor, Burns Harbor, our joint venture with the Washington Steel Spartan, same thing. That's nine plants ready to grow as is or adding capacity as needed in the next three, four, five, six years.

Lourenço Gonçalves: So this movement that was initiated by President Trump that will percolate for the next five, maybe 10 years will be all supported by Cleveland-Cliffs. And I'm explaining to you the capacity. So I'm not going to go into these little details on how much more the contract or this and that. These things are coming now as a wave of new business that we are ready to take right now. Sorry for the long answer. It was a good question. I decided to use it to explain details that probably are not well understood, but I hope after I made that explanation, we'll at least generate more questions that will keep us helping clarify the subject.

Lourenco Goncalves: So this movement that was initiated by President Trump that will percolate for the next five, maybe 10 years will be all supported by Cleveland-Cliffs. And I'm explaining to you the capacity. So I'm not going to go into these little details on how much more the contract or this and that. These things are coming now as a wave of new business that we are ready to take right now. Sorry for the long answer. It was a good question. I decided to use it to explain details that probably are not well understood, but I hope after I made that explanation, we'll at least generate more questions that will keep us helping clarify the subject.

For at least another one.

One or one five decades.

So it's there.

And new Carlisle that used to be called <unk> Tec <unk> quote by inland and Nippon steel long ago.

Go introduced little details on how much more in the context of diesel and that these things are coming now.

Not going to go introduce Liro details on how much more in the contract are diesel and that these things are coming now.

As a week of new business that we are ready to take right now.

Sorry for the long journey.

It was a good question that decided to use it to explain details that probably are not well understood, but I hope after I made that explanation of at least generate more questions that will.

Cleveland works is the.

The most technological technologically advanced new to produce high strength low alloy.

Keepers, helping clarify the subject.

Structure of cars.

Oh, great. Thanks for that information and then talking.

Oh, great Thanks for that.

Here in the United States.

Carlos De Alba: Oh, great. Thanks for the additional information. And then talking about the other opportunity that just came up for Cliffs on the rare earth space, are there any details or early details that you have in terms of the type of mineralization, rare earth mineralization that you may have, what type of minerals potentially you could be producing? And also, is there a timetable for a feasibility or pre-feasibility study or preliminary economic analysis assessment, sorry?

Information and then.

<unk> been doing that but we have capacity for more so thats.

Talking about the other opportunity that just came out.

Talking about the other opportunity that just came up there.

Everywhere, Indiana Harbor brands, our joint venture with working to instill Spartan same thing so that's nine plants ready to grow.

The router space.

Space.

Are there any details or early details that you have in terms of the type of mineralization retro session that you may have and what type of minerals potentially you could be producing.

Any details or early details that you have in terms of the type of mineralization Remi session that you may have and what type of minerals potentially you could be producing.

Is this or adding capacity as needed in the next 3456 years. So this movement that was initiated by President Trump that will percolate for the next.

<unk>.

And also is there.

And also is there a timetable for a.

Timetable for a visit.

Lourenco Goncalves: This movement that was initiated by President Trump that will percolate for the next five, maybe ten years will be all supported by Cleveland-Cliffs Inc. I'm explaining to you the capacity. I'm not going to go into these little details on how much more the contract or this and that. These things are coming now as a wave of new business that we are ready to take right now. Sorry for the long answer.

Video pre feasibility study or preliminary economic analysis.

Visibility of profitability study or preliminary economic analysis.

I'm sorry.

<unk>, maybe 10 years, we will be all supported by Cleveland cliffs, and I am explaining to you the capacity so I'm not going to go introduce liro details on how much more in the contract or a diesel and that these things are coming now.

Sorry.

I don't I don't think that I want to talk about the neutral dysprosium <unk> or serial <unk> Neodymium Praseodymium index score.

I don't I don't think that I want to talk about Youtube dysprosium, <unk> or serial link Daniel Neodymium Praseodymium index score.

Lourenço Gonçalves: Look, I don't think that I want to talk about yttrium, dysprosium, or terbium, or cerium, or lanthanum, or neodymium, or praseodymium in this call. But I'm a chemistry person, so I would love to, but I don't think that would be a good thing for us today, Carlos. Let's take this offline and let's discuss. The important thing is that they are there. We found them there. And we want to make it viable. We really believe that we have potential there and that it will be good for Michigan, for the Upper Peninsula primarily. And there's even one site in Minnesota that we would go. Minnesota is not very friendly to us, but we still investigate there. But we definitely will start in Michigan, in the Upper Peninsula, because we love the Upper Peninsula.

Lourenco Goncalves: Look, I don't think that I want to talk about yttrium, dysprosium, or terbium, or cerium, or lanthanum, or neodymium, or praseodymium in this call. But I'm a chemistry person, so I would love to, but I don't think that would be a good thing for us today, Carlos. Let's take this offline and let's discuss. The important thing is that they are there. We found them there. And we want to make it viable. We really believe that we have potential there and that it will be good for Michigan, for the Upper Peninsula primarily. And there's even one site in Minnesota that we would go. Minnesota is not very friendly to us, but we still investigate there. But we definitely will start in Michigan, in the Upper Peninsula, because we love the Upper Peninsula.

Yeah.

I am a chemistry person, so I would love to but I don't think that would be a good thing for us today, let's take this offline.

A week of new business that we are ready to take right now.

I am a chemistry person, so I would love to but I don't think that would be a good thing for us today, let's take this offline.

Sorry for the long.

Operator: Thank you, Lourenco and Celso.

Lourenco Goncalves: It was a good question. I decided to use it to explain details that probably are not well understood. I hope after I made that explanation, we'll at least generate more questions that will keep us helping clarify the subject.

It was a good question that decided to use it to explain details that probably are not well understood, but I hope after I made that explanation at least generate more questions that will.

Let's discuss the important thing is that they are there we found in there and.

Let's discuss the important thing is that they are there we found in there and though we want to make it viable.

We want to make it viable.

We really believe that we have potential there and that will be good for Michigan for the upper Peninsula, primarily and there is even one side the Minnesota that we would go and as such is not very friendly to us but.

Keep us helping clarify that the subject.

[Analyst]: Oh, great. Thanks for the additional information. Talking about the other opportunity that just came up for Cleveland-Cliffs Inc. on the rare earth space, are there any details or early details that you have in terms of the type of mineralization, rare earth mineralization that you may have, and what type of minerals potentially you could be producing? Also, is there a timetable for a feasibility or pre-feasibility study or preliminary economic analysis assessment, sorry?

Oh, great. Thanks for that information and then.

Talking about the other opportunity that just came out for <unk> are there.

Stacey.

We still will.

Are there any details or any details that you have in terms of the type of an arbitration decision that you may have and what type of minerals potentially you could be producing.

We still we're still.

Still.

Investigators, but we will definitely we start in Michigan in the upper peninsula, because we loved the upper peninsula.

Westgate there, but we will definitely will start in Michigan in the upper peninsula, because we loved the upper peninsula.

Alright. Thank you line is now looking for for that conversation.

Alright, Thank you Loren so looking for that conversation.

Thank you.

And also is there a timetable for a.

Carlos De Alba: All right. Thank you, Lourenco. Looking forward for that conversation on more details when available.

Thank you.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

Visibility of profitability study or preliminary economic analysis.

Lourenço Gonçalves: Yes, sir. Thank you.

Lourenco Goncalves: Yes, sir. Thank you.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

Operator: Thank you. Our next question is coming from Michael Harris of Goldman Sachs. Please go ahead.

Lourenco Goncalves: Look, I don't think that I want to talk about the erythrodisprosium or terbium or cerium or lanthanum or neodymium or praseodymium in this call. You know, I am a chemistry person, so I would love to, but I don't think that would be a good thing for us today, Carlos. Let's take this offline and let's discuss. The important thing is that they are there. We found them there, and we want to make it viable. We really believe that we have potential there and that it will be good for Michigan, for the Upper Peninsula primarily. There's even one site in Minnesota that we would go. Minnesota is not very friendly to us, but you know, we still investigate there. We definitely will start in Michigan, in the Upper Peninsula, because we love the Upper Peninsula.

Sorry.

Okay, let's try this again hopefully you can hear me this time.

Yeah.

Okay, let's try this again hopefully you can hear me this time.

I don't I don't think that I want to talk about Youtube dysprosium, <unk> or serial link Daniel Neodymium Praseodymium index score.

Michael Dwayne Harris: Okay. Let's try this again. Hopefully, you can hear me this time.

Michael Harris: Okay. Let's try this again. Hopefully, you can hear me this time.

Well Myles.

Very well Michael.

Hey, how are you guys doing.

Lourenço Gonçalves: Very well, Mike.

Lourenco Goncalves: Very well, Mike.

Just wanted to follow up on the electrical Steel award that to you all.

Michael Dwayne Harris: Hey, how are you guys doing? Hey, just wanted to follow up on the Electrical Steel Award that you highlighted. Just to kind of help us, how should we think about that? Is that more of a kind of a one-time opportunity, or is this like the first of many that come?

Michael Harris: Hey, how are you guys doing? Hey, just wanted to follow up on the Electrical Steel Award that you highlighted. Just to kind of help us, how should we think about that? Is that more of a kind of a one-time opportunity, or is this like the first of many that come?

Wanted to follow up on the electrical Steel award that you have highlighted.

Highlighted and just kind of help us how should we think about that is that more of a kind of a one time opportunity or is this like the first.

Yeah.

Any help with how should we think about that is that more of a kind of a one time opportunity or is this like the first of.

I am a chemistry person, so I would love to but I don't think that would be a good thing for us today, let's take this offline.

C J.

It's a one time opportunity, Mike, but it's a multiyear onetime opportunity.

Let's discuss the important thing is that they are there we found in there.

It's a one time opportunity, Mike, but it's a multiyear onetime opportunity.

Lourenço Gonçalves: It's a one-time opportunity, Mike, but it's a multi-year one-time opportunity. The U.S. government, the U.S. Department of Defense, made the decision to put in storage a safety reserve, a strategic inventory of this type of materials that we produce. So we are going to build that inventory together with the U.S. Department of Defense. And we are very proud of this partnership. It's extremely good in terms of economic terms and in the long-term viability. Of course, we are going to prioritize that because it's national security, and it will take years to finish. And this probably is this first move into a direction that it's clear that the Trump administration is taking in terms of protecting the country with strategic inventories of things that could be under attack in a moment that's not very peaceful in the world.

Lourenco Goncalves: It's a one-time opportunity, Mike, but it's a multi-year one-time opportunity. The U.S. government, the U.S. Department of Defense, made the decision to put in storage a safety reserve, a strategic inventory of this type of materials that we produce. So we are going to build that inventory together with the U.S. Department of Defense. And we are very proud of this partnership. It's extremely good in terms of economic terms and in the long-term viability. Of course, we are going to prioritize that because it's national security, and it will take years to finish. And this probably is this first move into a direction that it's clear that the Trump administration is taking in terms of protecting the country with strategic inventories of things that could be under attack in a moment that's not very peaceful in the world.

We want to make it viable.

The U S government as a partner of war.

Made the decision to.

<unk> made the decision to.

Is it putting storage.

We're putting storage.

Sure.

A safe to reserve strategic inventory of this type of materials that we produce so we are going to build that inventory together with.

<unk>.

Our safety reserve strategic inventory of this type of materials that we produce so we are going to build that inventory together with.

We still we're still.

The Department of War and we are very proud of this partnership.

First to get there, but we will definitely will start in Michigan in the upper peninsula, because we love the upper Peninsula.

The Department of War and we are very proud of this partnership.

Extremely good.

[Analyst]: All right. Thank you, Lourenco. Looking forward to that conversation on more details when available.

Extremely good in terms of.

Alright. Thank you. Your line is now looking for for that conversation.

Economic terms and in the long term viability of course, we're going to prioritize that because it's a national security and it will take years to finish and it's probably as this first move into a direction that is clear.

Lourenco Goncalves: Yes, sir. Thank you.

Thank you.

Operator: Thank you. Our next question is coming from Michael Dwayne Harris of Goldman Sachs. Please go ahead.

Thank you. Our next question is coming from Mike Harris of Goldman Sachs. Please go ahead.

[Analyst]: Okay, let's try this again. Hopefully, you can hear me this time.

Okay, let's try this again hopefully you can hear me this time.

Lourenco Goncalves: Very well, Mike.

Very well Michael.

[Analyst]: Hey, how are you guys doing? I just wanted to follow up on the electrical steel award that you highlighted. Just to kind of help us, how should we think about that? Is that more of a kind of a one-time opportunity, or is this like the first of CEDEC?

Hey, how are you guys doing.

The Trump administration stake in terms of protecting the country with strategic.

Wanted to follow up on the electrical Steel award that you have highlighted.

Stake in terms of protecting the country with strategic.

Just kind of help us how should we think about that is that more of a kind of a onetime opportunity or is this like the first.

Inventories of things that could be under attack.

A moment, that's not very beautiful in the world. So it's all good and we are proud of our partnership with the U S government and particularly with this specific deal.

A moment, that's not very beautiful in the world. So it's all good and though we are proud of our partnership with the U S government and particularly with this specific deal.

C J.

Lourenco Goncalves: It's a one-time opportunity, Mike, but it's a multi-year one-time opportunity. The U.S. government, the Department of Energy, made the decision to put in storage a safety reserve, a strategic inventory of this type of materials that we produce. We are going to build that inventory together with the Department of Energy, and we are very proud of this partnership. It's extremely good in terms of economic terms and in the long-term viability. Of course, we're going to prioritize that because it's national security, and it will take years to finish. This probably is the first move into a direction that it's clear that the Trump administration is taking in terms of protecting the country with strategic inventories of things that could be under attack in a moment that's not very peaceful in the world. It's all good, and we are proud of our partnership with the U.S.

It's a one time opportunity, Mike, but it's a multiyear onetime opportunity.

Lourenço Gonçalves: So it's all good, and we are proud of our partnership with the US government and particularly with this specific deal.

Lourenco Goncalves: So it's all good, and we are proud of our partnership with the US government and particularly with this specific deal.

The U S government as a partner of war.

Okay. Okay that helps and then just.

Okay. Okay that helps and then just a follow up to and I think so.

<unk> made the decision to.

A follow up to another itself just a few minutes ago someone asked the question around the.

Michael Dwayne Harris: Okay. Okay. That helps. And then just a follow-up too, and I think Celso, just a few minutes ago, someone asked a question around the cost reduction effort, and you kind of pointed out the track record. And I guess I was just curious, what we're witnessing here, is that just you guys now having the opportunity to take out maybe stranded costs from the acquisitions, or are we seeing the benefits from, I don't know, some process improvement or technological advances? Just kind of help me understand what we're witnessing with the cost reduction effort here.

Michael Harris: Okay. Okay. That helps. And then just a follow-up too, and I think Celso, just a few minutes ago, someone asked a question around the cost reduction effort, and you kind of pointed out the track record. And I guess I was just curious, what we're witnessing here, is that just you guys now having the opportunity to take out maybe stranded costs from the acquisitions, or are we seeing the benefits from, I don't know, some process improvement or technological advances? Just kind of help me understand what we're witnessing with the cost reduction effort here.

Is it putting storage.

Few minutes ago someone asked the question around the cost reduction effort and you kind of pointed out the track record and I guess I was just curious of what we witness in here is that just you guys now have an opportunity to take out maybe stranded costs from the acquisition or are we seeing the benefits from.

The cost reduction happening you kind of pointed out the track record and I guess I was just curious.

Our safety reserve.

Strategic inventory of this type of materials that we produce so we are going to build that inventory together with the.

Is that just you guys now have the opportunity to take out mid stranded costs.

The Department of War and we are very proud of this partnership.

Acquisitions or are we seeing the benefits from I don't know some process improvement or technological advances.

Extremely good in terms of.

I know some process improvement or technological advances.

Economic terms and in the long term viability of course, we're going to prioritize that because it's a national security and it will take years to.

Kind of help understand or help me understand what we are witnessing with the cost.

Help understand help me understand what we are witnessing with the cost reduction effort here.

It's an effort here.

Yes sure Mike.

Thanks for the question, Yes, I think over time, we've been proactive in terms of optimizing the footprint.

Celso Goncalves: Yeah, sure, Mike. Thanks for the question. Yeah, I think over time, we've been proactive in terms of optimizing the footprint. We became a steel company in 2020, if you remember. We acquired AK Steel. We closed that deal 13 March 2020 in the middle of the pandemic. And then we doubled down, and we acquired the ArcelorMittal USA assets in the same year, closed on 9 December 2020. And for the subsequent years thereafter, we became a major steel company sort of overnight, and it took time to optimize the footprint. It came with a lot of assets. Many of them were very good. Some of them weren't so great. So over the last few years, we've been prioritizing, optimizing the operations across all of our assets. And that's what's really driven the accomplishment on the cost side.

To finish and it's probably as this first move into a direction that it's clear that the Trump administration stake in terms of protecting the country with strategic.

We became a steel company in 2020, if you remember we acquired AK steel we closed that deal in March 13th of 2020 in the middle of the pandemic and then we doubled down and we and we acquired the Arcelormittal USA assets in the same year closed in December 9th of that year and for the subsequent years thereafter.

Inventories of things that could be under attack.

A moment, that's not very beautiful in the world. So it's all good and though we are proud of our partnership with the U S government and particularly with this specific deal.

Lourenco Goncalves: government and particularly with this specific deal.

We became a major steel companies sort of overnight and it took time to to optimize the footprint. It came with a lot of assets. Many of them are very good some of them werent. So great. So over the last few years, we've been prioritizing optimizing the operations across all of our assets and.

[Analyst]: Okay. That helps. Just a follow-up too, and I think, Celso, just a few minutes ago, someone asked a question around the cost reduction effort, and you kind of pointed out the track record. I guess I was just curious, are what we're witnessing here, is that just you guys now having the opportunity to take out maybe stranded costs from the acquisitions, or are we seeing the benefits from, I don't know, some process improvement or technological advances? Just kind of help me understand what we're witnessing with the cost reduction effort here.

Okay. Okay that helps and then just.

A follow up to and I think just a few minutes ago someone asked the question around the cost reduction happening you kind of pointed out the track record and I guess I was just curious of what we witness in here is that just you guys now have an opportunity to take out maybe stranded costs from the acquisition or are we.

That's what's really driven the accomplishment on the cost side and this year was really the completion of those efforts.

And that's what's really driven the accomplishment on the cost side and this year was really the completion of those efforts.

Celso Goncalves: This year was really the completion of those efforts.

Okay that helps thanks, a lot guys and.

And the benefits from.

Michael Dwayne Harris: Okay. That helps out. Thanks a lot, guys. Good luck and continued success.

Michael Harris: Okay. That helps out. Thanks a lot, guys. Good luck and continued success.

Good luck and continued success.

I know some process improvement or technological advances.

Good luck and continued success.

I appreciate it.

<unk> I appreciate it.

To help understand help me understand what we are witnessing with the cost reduction effort here.

Lourenço Gonçalves: Thank you, Mike. Appreciate it.

Lourenco Goncalves: Thank you, Mike. Appreciate it.

Thank you that brings us to the end of today's question and answer session I'd like to thank everyone for their participation. Today you may disconnect your lines and log off at this time and enjoy the rest of your day.

Operator: Thank you. That brings us to the end of today's question and answer session. I'd like to thank everyone for their participation today. You may disconnect your lines and log off at this time. Enjoy the rest of your day.

Celso Goncalves: Yeah, sure. Mike, thanks for the question. I think, you know, over time, we've been proactive in terms of optimizing the footprint. You know, we became a steel company in 2020, if you remember. We acquired AK Steel. We closed that deal March 13, 2020, in the middle of the pandemic. We doubled down and we acquired the ArcelorMittal USA assets in the same year, closed on December 9 of that year. For the subsequent years thereafter, we became a major steel company sort of overnight, and it took time to optimize the footprint. It came with a lot of assets. Many of them were very good. Some of them weren't so great. Over the last few years, we've been prioritizing, optimizing the operations across all of our assets. That's what's really driven the accomplishment on the cost side. This year was really the completion of those efforts.

Yes, sure Mike Thanks.

Thanks for the question, Yes, I think over time, we've been proactive in terms of optimizing the footprint.

And that's what's really driven the accomplishment on the cost side and this year was really the completion of those efforts.

[Analyst]: Okay. That helps out. Thanks a lot, guys. Good luck and continued success.

Okay that helps thanks, a lot guys and good luck.

Luck and continued success.

Lourenco Goncalves: Thank you.

Celso Goncalves: Thank you.

Lourenco Goncalves: Appreciate it.

And combined I appreciate it.

Thank you that brings us to the end of today's question and answer session.

To thank everyone for their participation today, you may disconnect your lines and log off at this time.

The rest of your day.

Okay.

[music].

Yes.

Sure.

Speaker #1: Call. All lines have been placed on mute to prevent background noise. After the speakers remarks, there will be a question and answer session. The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking, within the safe harbor protections of the private securities litigation reform act of 1995.

Speaker #1: Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #1: Important factors that could cause results to differ materially are set forth in the reports on forms 10(k) and 10(q), and news releases filed with the SEC, which are available on the company website.

Speaker #1: Today's conference call is also available and being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay.

Speaker #1: The company will also discuss results excluding certain special items. Reconciliation for regulation G purposes can be found on the earnings release, which was published this morning.

Speaker #1: At this time, I would like to introduce Lorenzo Goncalves, chairman, president, and chief executive officer.

Speaker #2: Thank you, Donna, and good morning, everyone. Our third quarter results were a clear indication that a significant rebound in domestic steel demand has started.

Speaker #2: And the automotive sector is leading the way. It's now widely accepted and understood that tariffs are here to stay. Particularly the Section 232 tariffs on steel, autos, and derivative products.

Speaker #2: These tariffs are not a negotiating tool. And the only effective way to avoid tariffs is manufacturing in the United States. With all that, third quarter was our best auto steel shipment quarter, since the first quarter of 2024.

Speaker #2: That's a very encouraging sign for what's coming in 2026 and beyond. Over the past quarter, Cleveland Cliffs was able to lock in two or three-year agreements with all major automotive OEMs covering higher sales volumes in favorable pricing through 2027 or 2028.

Speaker #2: They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and widths, Cliffs is the natural partner for the car manufacturers expanding production in the United States.

Speaker #2: President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant; they are fundamental to national security.

Speaker #2: Rebuilding these strengths is essential to sustain America's industrial independence and to improve our national defense readiness. The same industrial base that builds advanced vehicles and powertrains for civilian use supported by domestic steel production can also provide the engineering capability supply chain depth and logistics expertise required to support the American military.

Speaker #2: There is no question that the resurgence of the U.S. auto sector supported by domestic steel is a matter of great urgency. While other steel companies are still building or promising to build new capacity, to be ready in 2028-2029 or later, Cliffs is ready for 2026.

Speaker #2: Our state-of-the-art automotive-grade galvanized steel plants, Spartan and Dearborn in Michigan, Middletown, Cleveland, and Columbus in Ohio, and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana are all up and running.

Speaker #2: Cliffs has plenty of capacity right now. And the multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full employment levels.

Speaker #2: This quarter also reminded the automotive OEMs why steel and Cliffs steel, in particular, is irreplaceable. When lightweighting became a major trend several years ago, some automakers jumped on the aluminum bandwagon, chasing immaterial and expensive lightweighting gains, while ignoring very meaningful technological advances in the production of high-strength steels and, more importantly, the enormous supply chain risks they were assuming.

Speaker #2: A huge fire at the nation's largest automotive aluminum-producing mill this past quarter revealed the fragility of that shift. Vehicle models that were years ago moved away from steel and toward aluminum are suffering the most.

Speaker #2: The silver lining is that switching back to steel is now under serious consideration by the most affected OEMs. Recent trials of confirming parts with our steel using equipment originally designed for aluminum are showing very promising results.

Speaker #2: This is a huge win for American-made steel, and a validation of everything we have been saying for years: domestic steelmaking and particularly Cliffs steel is the backbone of the American automotive supply chain.

Speaker #2: We fully expect that aluminum's 's participation in the automotive space will continue to shrink, with Cliffs being the biggest beneficiary of the trend. The resurgence of U.S.

Speaker #2: manufacturing enabled and supported by the Trump administration has made Cliffs very attractive to a number of major global steel producers. These steelmakers supply steel within their respective countries to important clients, and these clients are now moving production to the United States.

Speaker #2: Exporting steel into the U.S. is no longer a viable option for these foreign steel companies. Like their steel-consuming customers, these folks need a physical presence in the United States.

Speaker #2: Cliffs is a fully integrated steel company starting from mining iron ore and going all the way downstream to the production of high-end finished products.

Speaker #2: And that is all based in the United States. These foreign interests in Cliffs are fully aligned with President Trump's agenda of strengthening America's industrial base and attracting foreign investment.

Speaker #2: With all that, a few months ago, we were approached by a major global steelmaker, who wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients moving production from their country of origin to the United States.

Speaker #2: During the third quarter, we entered into a memorandum of understanding with this global steelmaker, and we expect to make a formal announcement in the next few months.

Speaker #2: I will not take any questions on this subject today. Separately, we have made excellent progress selling profits that no longer fit into our production footprint.

Speaker #2: I am pleased to report that we are under contract or agreements in principle for eight of these sites. With a combined total value of $425 million.

Speaker #2: The proceeds of these sales will go directly toward debt reduction. As for our larger operational asset sales process run by JPMorgan, this is currently being deprioritized given the comprehensiveness of our MOU with the global steelmaker.

Speaker #2: We are not quite penciled down on this process, but advancing our negotiations under our MOU is now our top priority. While our U.S. business is on a clear path to recover, we complete on November 1 our first year of ownership of the Canadian steel company Stelco.

Speaker #2: The picture in Canada remains disappointing. Roughly 9% of our total sales come from Stelco in Canada, and that market continues to lag our expectations.

Speaker #2: There is only one cause to the problem: the Canadian government has been completely unwilling to act against dumped steel into Canada. Imported steel penetration into the Canadian market stands at a ridiculous and absurd 65%.

Speaker #2: The Canadian government could easily resolve the problem by replicating what the United States has done under Section 232. Imposed meaningful tariffs, closed-loop holds, and enforced implementation of these anti-dumping countermeasures.

Speaker #2: With other regions of the globe moving in the right direction, even the European Union has recently tightened its quota and tariff regime, Canada stands alone in doing nothing.

Speaker #2: A bailout loan as the one given by the Canadian government and the province of Ontario to Algoma one of our Canadian competitors is not a fix for the problem.

Speaker #2: Trying to weaken Section 232 in the United States just to bring back Canadian steel into the American market is even worse. Stelco under our ownership does not want to, and should not depend on selling steel into the United States for its survival.

Speaker #2: Stelco could thrive exclusively by selling steel in Canada. While I confess my inability to convince the several Canadian government officials I regularly speak with, I continue to expect Prime Minister Carney to make a move in the right direction.

Speaker #2: Let's see how long it takes, or if I will need to be more persuasive. Meanwhile, the U.S. government continues to grow as our partner.

Speaker #2: During the quarter, we were awarded a five-year $400 million fixed-price contract by the Defense Logistics Agency of the U.S. Department of War. This contract covers up to 53,000 net tons of grain-oriented electrical steel.

Speaker #2: With the U.S. government intent to store for national security purposes, the award underscores Cliffs' position as the only U.S. producer capable of supplying this critical material goes, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation's defense and energy infrastructure.

Speaker #2: Also, we recently learned that our two projects receiving grants from the Department of Energy at Middletown, Ohio, and Butler, Pennsylvania, were not included on the cancellation list that ended more than $200 other projects.

Speaker #2: As such, we will proceed with the Butler project on schedule, and we will also continue to work with the DOE on the new scoping of the Middletown project, which is critically important as that blasphemous will be reliant in the next four to five years.

Speaker #2: Last but not least, the growing strategic value of rare earth elements has prompted us to revisit this potential within our mining portfolio. We view this effort as both an opportunity and, as our responsibility, comprehensive reviews of our ore bodies and tailings basins have identified two sites: one in Minnesota and one in Michigan, where geological surveys show evidence of rare earth mineralization.

Speaker #2: We continue to assess our potential on both sites. Advancing these initiatives would position Cleveland Cliffs squarely within the nation's pursuit of critical material self-sufficiency.

Speaker #2: We believe America's industrial foundation must never depend on China or any other foreign source for essential minerals. Cleveland Cliffs is committed to contributing to our independence from foreign powers on critical materials.

Speaker #2: With that, I will turn to our CFO, Celso Goncalves, for his remarks.

Speaker #3: Thank you, and good morning, everyone. Our third quarter results were driven by steady operational execution and much better than expected pricing, supported by automotive strength.

Speaker #3: Our adjusted EBITDA in the quarter improved to $143 million, a 52% increase over the prior quarter. Driven by margin expansion from higher realized prices and improved mix.

Speaker #3: Our steel shipment volumes were $4 million tons in the quarter, a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market.

Speaker #3: Fortunately, as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1,032 per net ton. Up $17 per net ton over the prior quarter.

Speaker #3: This improvement in price is entirely driven by automotive shipments moving from 26 to 30% share. And coded volumes moving from 27 to 29% share.

Speaker #3: On the cost side, we continue to deliver great results as our unit costs adjusted to the much richer automotive mix. Our continued cost performance was almost entirely driven by the footprint optimization activities we announced earlier this year, and have fully implemented at this point.

Speaker #3: The third quarter was the first full quarter we operated with these operational efficiencies in place. And our projected annual savings of $300 million from these maneuvers remain on track.

Speaker #3: We also continue to take further action to reduce both SG&A run rate and capital expenditure budgets. Our CapEx budget for 2025 is now $525 million, down from our original expectation to begin the year of $700 million.

Q3 2025 Cleveland-Cliffs Inc Earnings Call

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