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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 Stocker46on Nov 28, 2022 4:22pm
272 Views
Post# 35134925

RE:RE:ASTL: Its EV at C$9 is 1 times the adj. EBITDA !!!

RE:RE:ASTL: Its EV at C$9 is 1 times the adj. EBITDA !!!You're living in the past Stockfy.
Algoma had some very good quarters over the past year (excluding the last quarter). Most Steel companies experienced the same due to record high product prices.

You state "Estimated adj. EBITDA for the first six months of FY 2023 was C$440 million".
This is not an estimate, it's an actual number made up of approx. $353M in 1st Q 2023 & $87M in 2nd Q 2023.
That's a drop of 75%.  At first, I thought the $87.2M was an error in the NR because it's exactly the same as their Net Earnings number.   Had to check the MD&A on Sedar to confirm it was a correct number.

As previously posted, Algoma's Net Earnings is forcast to fall even further over the next 2 quarters. EBITDA will fall as well.
I'd suggest you recalculate your EW to EBITDA at end of June 2023. (based on the trailing 12 months)

I do, in fact, like both Algoma & Stelco ... but I suspect Algoma in particular may have a rough ride over the next 2 or 3 quarters. What happens after that is uncertain at this point.


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