Algoma Steel Group Inc. (NASDAQ:ASTL) Q3 2023 Earnings Call Transcript

Michael Garcia: Correct. But I would note that regardless of the development of grid power and the local 230 cable line, part of our project involves the installation of two new turbine generators at our Lake Superior power plant. And that will give us 115 megawatts of internal generation. And that combined with the available power we are already taking off the grid, will allow us to proceed with start-up without any type of delays.

Ahmad Shaath: Yes. For sure. Well, that’s great color and thanks.

Michael Garcia: Yes.

Operator: Our next question comes from the line of Ian Gillies with Stifel.

Ian Gillies: Hi everyone. Thanks for taking my follow-up. With respect to the remaining items to be ordered for the EAF and the $50 million contingency, do you see anything in those remaining items that need to be ordered that are €“ have undergone significant inflationary pressures since the initial cost estimate, or is that $50 million continues to see €“ still looking like a very healthy amount in the context of estimated total project cost?

Michael Garcia: That’s a great question, Ian. No, we haven’t seen any specific inflationary-based contingencies or escalations that we are expecting. But we do €“ the contingency is there. It’s almost to be spent, if you will. We are not going to be disappointed or we are not going to make shortsighted decisions in order to protect the remaining contingency. It’s there for unseen areas of factors of cost, and that’s what we will use it for. So, we do expect to contract out the remaining scope of work for this project at that $170 million, $175 million range. But if it happened a little higher, then that’s what the contingency is there for.

Ian Gillies: That’s helpful. That’s the last thing for me. I will turn the call back over. Thank you.

Michael Garcia: You’re welcome. Thanks Ian.

Operator: And we have reached the end of the question-and-answer session. And I will turn the call back over to Michael Garcia for closing remarks.

Michael Garcia: Okay. Thank you again for your participation in our third quarter fiscal 2023 conference call and for your continued interest in Algoma Steel. We look forward to updating you on our results and progress when we report our fourth quarter and full year fiscal 2023 results this spring.

Operator: And this concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.