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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

Post by stockfyon Nov 26, 2022 3:32am
531 Views
Post# 35129717

ASTL: Net Cash, Profitable and Stelco's CEO statements

ASTL: Net Cash, Profitable and Stelco's CEO statements
Many investors are so short-sighted that they are unable to read a cash flow report. Even in Q2 when the fire occurred and impacted negatively ASTL's production and revenue, ASTL ended up generating positive operating cash flow before changes in non-cash working capital.

According to the cash flow report, ASTL generated C$72 million in operating cash flow before changes in non-cash working capital:

https://ir.algoma.com/news-releases/news-release-details/algoma-steel-group-reports-fiscal-2023-second-quarter-results#:~:text=Second%2Dquarter%20revenue%20totaled%20%24599.2,%2C%20down%2019.9%25%20from%20%241%2C720.

 
Not to mention that many are even unable to realize that the fire is a non-recurring event and does not happen every quarter. 

Many do not even see that ASTL is profitable and does not have any debt problems because its net cash position is about C$365 million.

Many do not even know another tailwind for ASTL. Stelco's CEO said a few months ago that the bottom in steel prices was in July and the steel prices have stabilized and demand has returned since August:

https://www.bnnbloomberg.ca/ceo-who-dubbed-steel-market-a-falling-knife-is-calling-a-bottom-1.1809505


"Things are going to stay steady as we get to the end of the year and I don't see any further breakdown in price".


 
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