08:52 AM EDT, 03/25/2024 (MT Newswires) -- Algoma Steel Group Inc. ( ASTL ) , down slightly in US premarket trade, on Monday provided guidance for its fiscal fourth quarter ending March 31, 2024.

Q4 2024 total steel shipments are expected to be in the range of 445,000 to 460,000 tons and Adjusted EBITDA is expected to be in the range of $30 million to $40 million. Algoma had previously announced an unplanned outage at its blast furnace in connection with a utility corridor collapse at its coke-making facility. It is expected that the outage reduced production by 120,000 to 150,000 net tons, significantly impacting Adjusted EBITDA performance in the quarter.

CEO Michael Garcia said, "We expect to close out our fiscal year on a high note, with steel production back to normal levels and our end markets looking strong."

Garcia added, "With a return to full production, we expect an improvement in our fiscal first-quarter results. Importantly, our Electric Arc Furnace (EAF) project remains on schedule and within budget, with commissioning activities expected to start by the end of 2024. We have continued to secure contracts to advance the EAF project, which now totals approximately $788 million, most of which are on fixed-price terms, reducing budget risks."

Separately, Algoma's indirect subsidiary, Algoma Steel Inc (ASI), intends to offer for sale US$350 million aggregate principal amount of Senior Secured Second Lien Notes due 2029. The Notes will be guaranteed on a senior secured basis by ASI's immediate parent company and all of ASI's subsidiaries. Pricing and closing of the offering are subject to market and other conditions. ASI intends to use the net proceeds for general corporate purposes.