12:32 PM EST, 01/03/2025 (MT Newswires) -- Algoma provided fourth-quarter adjusted EBITDA guidance in the range of -C$65 million to -C$55 million, vs. BMO/consensus estimates of -C$25 million/-C$6 million.

"Versus our estimate the miss can mainly be attributed to higher costs in our opinion (somewhat transitory)," writes analyst Katja Jancic. She notes that EAF cold commissioning has begun and despite weather-related challenges, the company still expects to produce first steel by the end of CY1Q'25.

"Overall, despite the currently challenging steel market, our longer-term thesis remains intact that the transformation to an EAF will result in higher through-cycle profitability and multiple re-rate."

Algoma is rated Outperform, with an $18 target.

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