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Algoma Steel Group Ord Shs T.ASTL

Alternate Symbol(s):  ASTL | ASTLW | T.ASTL.WT

Algoma Steel Group Inc. is a Canada-based integrated producer of hot and cold rolled steel products including sheet and plate. The Company delivers responsive, customer-driven product solutions for applications in the automotive, construction, energy, defense, and manufacturing sectors. It is a key supplier of steel products to customers in North America and is the producer of discrete plate products in Canada. Its plate products include AR225, Heat Treated Plate, AlgoLaser, AlgoGrip and The Heavies. Its sheet products include Hot Rolled Sheet - DSPC, Hot Rolled Sheet - 106'' Mill, AR200, Cold Rolled and Floor Plate. The Company has a raw steel production capacity of an estimated 2.8 million tons per year. Its Direct Strip Production Complex is a thin slab caster coupled with direct hot rolling in North America. In addition, its heat-treated plate facility provides a full range of heat-treated products for abrasion resistant, ballistic and other specialty plate applications.


TSX:ASTL - Post by User

Comment by mjh9413on Nov 19, 2021 1:18am
398 Views
Post# 34144177

RE:RE:RE:RE:RE:RE:Earnings

RE:RE:RE:RE:RE:RE:EarningsAnalysts concensus seems to be that prices will continue falling but, as I stated with Stelco, even if the prices receded to the mid-2022 futures price the steel companies appear to have good financial prospects, particularly if volumes do not recede say 20% or more from the ever-increasing delivery volumes currently taking place. Also negative is the cost per tonne increase (about $200 per tonne y/y last qtr) and with lower volumes this becomes exacerbated. Stelco I believe to be better bet as they already honed their production facilities and costs. I still reckon upper $40's can be supported for them and, altho I have just gone long ASTL, I do have the concerns for subsequent qtrs. With the current qtr estimates for both companies already taken into account and with the potential pricing/costs risks that exist, the investment mood for steels is negative. I have some hope, however, that the share price has been overly discounted..
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