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Algoma Steel (NASDAQ:ASTL) +3.1% in Monday’s trading after issuing guidance for FQ4 ending March 31 total steel shipments of 445K-460K tons and adjusted EBITDA of $30M-$40M.
Algoma (ASTL) said it expects the unplanned outage at its Sault Ste. Marie, Ontario, blast furnace in connection with a utility corridor collapse at its coke-making facility during the quarter will cut production by 120K-150K net tons, significantly impacting adjusted EBITDA performance in the quarter.
But CEO Michael Garcia said the company expects to close out its fiscal year “on a high note, with steel production back to normal levels and our end markets looking strong,” and with a return to full production, it expects an improvement in FQ1 results.
Algoma (ASTL) said its electric arc furnace project remains on schedule and within budget, with commissioning activities expected to start by year-end 2024, as it continues to secure contracts to advance the EAF project, which now totals $788M, mostly on fixed-price terms.