By Adriano Marchese

Algoma Steel Group shares rose after the company set its guidance for the fiscal second quarter.

Shares traded 4.6% higher Monday, at 14.25 Canadian dollars (US$10.26).

For the period ended Sept. 30, the Canadian producer of hot and cold rolled steel sheet and plate products said that it expects to ship between 510,000 to 520,000 metric tons.

Last year at this time the company said shipments came to 548,998 tons.

"Our operations are performing in line with expectations for the fiscal second quarter, despite operating against a backdrop of challenging market conditions for steel demand and pricing," Chief Executive Michael Garcia said.

The company expects adjusted earnings before interest, taxes, depreciation and amortization in the quarter to be as high as C$5 million and as low as a loss of C$5 million.

The figure includes initial recovery of insurance proceeds estimated at about C$20 million.

A year ago, adjusted Ebitda came to C$81 million

In late 2021, Algoma announced a project to replace its existing blast furnace and basic oxygen steelmaking operations with electric arc furnaces which would reduce its carbon emissions significantly.

Garcia on Monday said the company is on track with its Electric Arc Furnace project and commissioning activities are expected to begin at the end of the calendar year.

"This milestone will mark the beginning of Algoma Steel's transformation into one of the most environmentally sustainable steel producers in North America," he said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 28, 2024 12:04 ET (16:04 GMT)

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