Stelco Holdings Inc. Reports Second Quarter 2020 Results

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

Stelco Holdings Inc. second quarter 2020 highlights include:

• Revenue of $411 million for the quarter, compared to $427 million for Q2 2019
• Operating income of $16 million for the quarter, compared to $3 million for Q2 2019
• Adjusted EBITDA* of $34 million for the quarter, compared to $32 million for Q2 2019
• Shipments of 576,000 tons for the quarter, compared to 545,000 for Q2 2019

HAMILTON, ON, Aug. 12, 2020 /CNW/ - Stelco Holdings Inc. ("Stelco Holdings" or the "Company"), (TSX: STLC), a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America, today announced financial results of the Company for the three months ended June 30, 2020. Stelco Holdings is the 100% owner of Stelco Inc. ("Stelco"), the operating company.

Selected Financial Information:

(in millions Canadian dollars, except volume, per share and nt figures)	Q2 2020	Q2 2019	Change	Q1 2020	Change	YTD 2020	YTD 2019	Change
Revenue ($) ^1	411	427	(4)%	445	(8)%	856	942	(9)%
Operating income ($)	16	3	433%	7	129%	23	47	(51)%
Net income (loss) ($)	—	1	(100)%	(24)	100%	(24)	44	(155)%
Adjusted net income (loss) ($) *	10	6	67%	(26)	138%	(16)	66	(124)%
Net income (loss) per common share (diluted) ($)	—	0.01	(100)%	(0.27)	100%	(0.27)	0.50	(154)%
Adjusted net income (loss) per common share (diluted) ($) *	0.11	0.07	57%	(0.29)	138%	(0.18)	0.74	(124)%
Average selling price per nt ($) ^1, *	700	754	(7)%	705	(1)%	703	791	(11)%
Shipping volume (in thousands of nt) *	576	545	6%	621	(7)%	1,197	1,157	3%
Adjusted EBITDA ($) *	34	32	6%	20	70%	54	108	(50)%
Adjusted EBITDA per nt ($) *	59	59	— %	32	84%	45	93	(52)%

1	Certain comparative results have been adjusted to conform to the Q2 2020 presentation of revenue.
*	See "Non-IFRS measures" for a description of certain Non-IFRS measures used in this Press Release and "Non-IFRS Measures Reconciliation" below.

"Despite market headwinds during the second quarter, our business was able to once again succeed and generate Adjusted EBITDA of $34 million – an increase of 70% over the previous quarter," said Alan Kestenbaum, Executive Chairman and Chief Executive Officer. "I am proud of our team's ability to adapt our business to changing market conditions and the uncertainty created in recent months resulting from the global pandemic. As a result of the hard work we have done to date, Stelco remains one of the lowest-cost integrated producers in North America and we will improve on that position as we complete our blast furnace upgrade project this quarter, making Stelco exceptionally well positioned to participate in the economic recovery during the latter part of this year."

"On July 17th, we commenced work on the blast furnace reline project at our Lake Erie Works facility. When this 75-day project is completed, we will benefit from significant upgrades that will improve our cost structure and increase our steelmaking capacity and quality. The completion of this project will represent the third strategic milestone that we have reached in 2020. To date we have successfully increased our penetration in downstream, value-added markets and, as we announced last quarter, we secured a long-term supply of competitively priced high quality iron ore as well as an option to purchase a 25% ownership interest in the Minntac Mine - the largest and lowest cost iron pellet mine in our region. Collectively, these strategic measures further position Stelco as a low-cost producer with the ability to deploy our tactical flexibility model to take advantage of market opportunities at every point in the cycle as demonstrated by our second quarter results," continued Kestenbaum.

"I am exceptionally proud of what the Stelco team has been able to accomplish during these unprecedented times. Once again, we expect to be sold out in the third quarter, benefiting from increased demand from almost all of our key end-markets, albeit at about half of our normal shipping level due to the blast furnace upgrade project. We expect to complete this project by the end of this quarter positioning us for substantial growth in the fourth quarter in terms of production. Each and every employee has remained focused on the task at hand and as a result we have succeeded in keeping our employees, their families and the community at large safe, while at the same time meeting the needs of our customers and delivering the highest quality steel products. I am excited to see the benefits of the strategic initiatives we've undertaken and am exceptionally pleased that our business is in a position to succeed not just today, but well into the future," said Kestenbaum.

"In recent months we have all seen and heard the movement for social justice across North America. I was proud to sign the Black North Initiative CEO Pledge (www.blacknorth.ca) not only acknowledging the existence of systemic racism in our society, but committing to taking action to improve diversity, inclusion and equity for all underrepresented groups, including Black Canadians and other racialized communities. One of our missions at Stelco is to run our business successfully so that we can deliver value for our shareholders and keep our workers working, even in the most difficult times, and to offer that equally to all who are qualified. Signing this Pledge is not the complete answer but it is a positive step towards promoting equality in our workplace and promoting meaningful change in society," concluded Kestenbaum.

Second Quarter 2020 Financial Review:

Compared to Q2 2019

Q2 2020 revenue decreased $16 million, or 4%, from $427 million in Q2 2019, primarily due to a 7% decrease in average selling prices and lower non-steel sales of $8 million, partly offset by 6% higher steel shipping volumes. The average selling price of our steel products decreased from $754 per nt in Q2 2019 to $700 per nt in Q2 2020, due largely to decreases in market prices for flat steel products. Shipping volumes increased 31 thousand nt, from 545 thousand nt in Q2 2019 to 576 thousand nt in Q2 2020, mostly from higher hot rolled and coated steel product shipments, partly offset by lower other steel product sales including slabs.

The Company realized operating income of $16 million for the quarter, compared to $3 million in Q2 2019, an increase of $13 million due to higher gross profit of $13 million consisting of a decrease in revenue of $16 million, more than offset by lower cost of goods sold of $29 million.

Finance costs increased by $9 million, from $3 million in Q2 2019, due to the following: $9 million related to the remeasurement impact from our employee benefit commitment and $2 million increase in interest on loans and borrowings, partly offset by $2 million in lower accretion expense in connection with the employee benefit commitment obligation.

Other costs for the quarter include a $5 million write-down charge in connection with certain capital projects that are no longer being pursued by the Company, representing aborted construction in progress costs without future benefit to Stelco.

The Company realized net income of nil for the quarter, compared to $1 million in the second quarter of 2019, a decrease of $1 million due to the following: $13 million increase in gross profit, more than offset by $9 million in higher finance costs and a $5 million increase in other costs. Adjusted net income increased by $4 million year-over-year, from $6 million in Q2 2019 to $10 million in Q2 2020.

Adjusted EBITDA in Q2 2020 totaled $34 million, an increase of $2 million from adjusted EBITDA of $32 million in Q2 2019, which primarily reflects the decrease in revenue from average price of steel sales and reduced non-steel sales, more than offset by a decrease in cost of goods sold, increase in other income and higher shipping volumes realized during the quarter.

Compared to Q1 2020

Q2 2020 revenue decreased $34 million, or 8%, from $445 million in Q1 2020, primarily due to a 7% decrease in steel shipping volumes and 1% decline in average steel selling prices. Shipping volumes decreased 45 thousand nt, from 621 thousand nt in Q1 2020 to 576 thousand nt in Q2 2020, mostly from lower hot rolled and cold rolled steel product shipments.

Operating income increased to $16 million in Q2 2020, from $7 million in Q1 2020. Adjusted EBITDA increased to $34 million from Q1 2020 adjusted EBITDA of $20 million, which primarily reflects the decrease in revenue from lower shipping volumes realized during the quarter and reduced average price of steel sales, more than offset by a decrease in cost of goods sold and increase in other income.

Summary of Net Tons Shipped by Product:

(in thousands of nt)
	Q2 2020	Q2 2019	Change	Q1 2020	Change	YTD 2020	YTD 2019	Change
Tons Shipped by Product
Hot-rolled	423	375	13%	447	(5)%	870	892	(2)%
Coated	109	67	63%	112	(3)%	221	133	66%
Cold-rolled	15	19	(21)%	35	(57)%	50	23	117%
Other ^a	29	84	(65)%	27	7%	56	109	(49)%
Total	576	545	6 %	621	(7)%	1,197	1,157	3 %
Shipments by Product (%)
Hot-rolled	73%	69%		72%		73%	77%
Coated	19%	12%		18%		18%	12%
Cold-rolled	3%	4%		6%		4%	2%
Other ^a	5%	15%		4%		5%	9%
Total	100%	100%		100%		100%	100%

^a	Includes other steel products: slabs and non-prime steel sales.

Statement of Financial Position and Liquidity:

On a consolidated basis, Stelco Holdings ended Q2 2020 with cash of $168 million and $105 million of borrowing capacity under the ABL revolver at June 30, 2020. The following table shows selected information regarding the Stelco Holdings consolidated balance sheet as at the noted dates:

(millions of Canadian dollars)
As at	June 30, 2020	December 31, 2019
ASSETS
Cash	168	257
Trade and other receivables	163	158
Inventories	436	483
Total current assets	782	914
Derivative asset	55	—
Total assets	1,605	1,594
LIABILITIES
Trade and other payables	454	444
Asset-based lending facility	8	8
Obligations to independent employee trusts	37	35
Total current liabilities	532	521
Asset-based lending facility	118	90
Obligations to independent employee trusts	471	472
Total non-current liabilities	656	623
Total liabilities	1,188	1,144
Total equity	417	450

Stelco Holdings and its subsidiaries ended Q2 2020 with current assets of $782 million, which exceeded current liabilities of $532 million by $250 million. Non-current assets include the derivative asset representing the USD$40 million in installment payments made for the Minntac option. Stelco Holdings' liabilities include $508 million of obligations to independent pension and OPEB trusts, which includes $397 million of employee benefit commitments and $111 million under a mortgage note payable associated with the June 2018 land purchase. Non-current liabilities of $656 million as at June 30, 2020 include $471 million of obligations to independent pension and OPEB trusts. Stelco Holdings' consolidated equity totaled $417 million at June 30, 2020.

Organizational Change

Effective August 12, 2020, Mr. Monty Baker, was appointed to the Board of Directors and the Audit Committee as an independent director. 

Quarterly Results Conference Call

Stelco management will host a conference call to discuss its results tomorrow, Thursday, August 13, 2020, at 9:00 a.m. ET. To access the call, please dial 1 [phone] or 1 [phone] and reference "Stelco". The conference call will also be webcasted live on the Investor Relations section of Stelco's web site at https://www.stelco.com/investors. A presentation that will accompany the conference call will also be available on the website prior to the conference call. Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company's website for at least 90 days. A telephonic replay of the conference call will also be available from 12:00 p.m. ET on August 13, 2020 until 11:59 p.m. ET on August 27, 2020 by dialing 1 [phone] or 1 [phone] and using the code 356918#.

Consolidated Financial Statements and Management's Discussion and Analysis

The Company's unaudited interim condensed consolidated financial statements for  the  period  ended June 30, 2020, and Management's Discussion & Analysis thereon are available under the Company's profile on SEDAR at www.sedar.com.

About Stelco

Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first- rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributers of steel products.

Non-IFRS Measures

This news release refers to certain non-IFRS measures that are not recognized under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including "adjusted net income", "adjusted net income per share", ''adjusted EBITDA'', ''adjusted EBITDA per nt'', ''selling price per nt'', and ''shipping volume'' to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management uses these non-IFRS financial measures to facilitate operating performance comparisons from period-to-period, to prepare annual operating budgets and forecasts, and drive performance through our management compensation program. For a reconciliation of these non-IFRS measures, refer to the Company's "Non-IFRS Measures Reconciliation" section below. For a definition of these non-IFRS measures, refer to the Company's MD&A for the period ended June 30, 2020 available under the Company's profile on SEDAR at www.sedar.com.

Forward-Looking Information

This release contains ''forward-looking information'' within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, acquisition opportunities, budgets, operations, financial results, taxes, dividend policy, plans and objectives of our Company. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as ''plans'', ''targets'', ''expects'' or ''does not expect'', ''is expected'', ''an opportunity exists'', ''budget'', ''scheduled'', ''estimates'', ''outlook'', ''forecasts'', ''projection'', ''prospects'', ''strategy'', ''intends'', ''anticipates'', ''does not anticipate'', ''believes'', or variations of such words and phrases or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'', ''will'', ''will be taken'', ''occur'' or ''be achieved''. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances may be forward looking statements. Forward-looking statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. The forward-looking statements contained herein are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes.

Forward-looking information in this news release includes: our ability to successfully adapt to changing market conditions; our ability to continue to operate the business as one of the lowest-cost integrated steel producers in North America; expectations that we will improve our cost position following the completion of the blast furnace reline and upgrade; expectations that the Company will be well positioned to participate in any economic recovery during the second half of 2020; our advancement of strategic initiatives and our intention to continue making strategic investments in our business; expectations that upon completion of the blast furnace reline and upgrade the Company will benefit from upgrades intended to lower our cost structure and increase our steelmaking capacity and enhance our product quality; expectations that the Company's tactical flexibility business model will allow the Company to take advantage of market opportunities at every point in the market cycle; statements with respect to shipping projections for the second half of 2020; statements with respect to the timing of the completion of the blast furnace reline and upgrade; expectations that our capital projects and cost reduction initiatives will be successful; expectations that the Company's strategic initiatives will position the Company for long-term success;  expectations regarding the anticipated production and shipment timing that may be realized upon completion of the blast furnace reline and upgrade project; and expectations regarding the ongoing diversification of our product mix with respect to value-added products. Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of our ability to complete new capital projects on schedule and within budget and their anticipated effect on revenue and costs; our ability to source raw materials and other inputs; our ability to supply to new customers and markets; our ability to effectively manage costs; our ability to attract and retain key personnel and skilled labour; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; changes in laws, rule, and regulations, including international trade regulations; our ability to continue to access the U.S. market without any adverse trade restrictions; upgrades to existing facilities remaining on schedule and on budget and their anticipated effect on revenue and costs; and growth in steel markets and industry trends, as well as those set out in this press release, are material factors made in preparing the forward-looking information and management's expectations contained in this press release.

Key Assumptions Underlying Our Shipping Volume Estimates

The estimates with respect to our future shipping volumes included in this press release are based on a number of assumptions, including, but not limited to, the following material assumptions; the Company's ability to continue to access the U.S. market without any adverse trade restrictions; consistent demands for steel in North America; no significant additional legal or regulatory developments; no material failure with respect to any of our operations; no changes in economic conditions, or macro changes in the competitive environment affecting our business activities; upgrades to existing facilities and the construction of new facilities remaining on schedule and within budget and their anticipated effect on revenue and costs being fully realized; the Company's ability to attract new customers and further develop and maintain existing customers; currency exchange and interest rates; the impact of competition; and growth in steel markets and industry trends. We note that potential further changes to trade regulations in North America could materially alter underlying assumptions around anticipated shipping volumes and the steel market, generally. In addition, the effect that the COVID-19 pandemic may have on the Company's future results of operations and financial condition are highly unpredictable and it is possible that the COVID-19 pandemic may have a material adverse effect on the Company's ability to (i) operate at or near its full capacity for the third quarter of 2020, (ii) find customers that are willing to purchase our products at fair market prices, and (iii) transport and deliver our products to customers in a timely and effective fashion.

Key Assumptions Underlying the Blast Furnace Project

Statements with respect to the expected project schedule and increased production volumes regarding the planned upgrade and reline of our blast furnace at Lake Erie Works referenced in this press release are based on a number of assumptions, including, but not limited to, the following material assumptions: third party contractors and suppliers delivering, constructing and performing in accordance with agreed upon budgets, schedules and applicable performance guarantees; our ability to obtain any applicable regulatory approvals and permits required in connection with the project; expectations that, upon completion, our facilities will produce in accordance with anticipated design capacity; expectations that the market for steel does not experience a material adverse change in the short to medium term; expectations that our customers will continue to purchase material volumes of production upon completion of the project; the blast furnace project proceeding on schedule and, upon completion, performing in such a manner so as to provide molten metal to meet our production needs; and expectations that we will fully realize production levels at our Lake Erie Works facility that are equal to or better than production levels existing at our Lake Erie Works facility prior to the commencement of the blast furnace upgrade and reline project. In addition, the effect that the COVID-19 pandemic may have on the Company's ability to complete the proposed blast furnace project is highly unpredictable and is subject to many variables, including, but not limited to, the possibility that the applicable contractors' may be impeded and/or restricted from completing the work on schedule and within the budget.

Such forward-looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including: North American and global steel overcapacity; imports and trade remedies; competition from other producers, imports or alternative materials; and the availability and cost of inputs placing downward pressure on steel prices or increasing our costs; as well as those described in the Company's annual information form   dated February 18, 2020 and the Company's MD&A for the period ended June 30, 2020 available under the Company's profile on SEDAR at www.sedar.com.

There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and are subject to change after such date. Stelco Holdings disclaims any intention or obligation or undertaking to update publicly or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise, except as required by law.

Selected Financial Information

The following includes financial information prepared by management in accordance with IFRS. This financial information does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with Stelco Holdings Inc.'s Consolidated Financial Statements and MD&A for the period ended June 30, 2020, which is available on the Company's website and on SEDAR (www.sedar.com).

Stelco Holdings Inc.
Consolidated Statements of Income
(unaudited)

	Three months ended June 30,				Six months ended June 30,
(millions of Canadian dollars)		2020		2019		2020		2019
Revenue from sale of goods	$	411	$	427	$	856	$	942
Cost of goods sold		383		412		812		869
Gross profit		28		15		44		73
Selling, general and administrative expenses		12		12		21		26
Operating income		16		3		23		47
Other income (loss) and (expenses)
Finance and other income		2		2		6		5
Finance costs		(12)		(3)		(45)		(6)
Share of loss from joint ventures		(1)		(1)		(2)		(2)
Other costs		(5)		—		(6)		—
Income (loss) before income taxes		—		1		(24)		44
Income tax expense		—		—		—		—
Net income (loss)	$	—	$	1	$	(24)	$	44

Stelco Holdings Inc.
Consolidated Balance Sheets
(In millions of Canadian dollars) (unaudited)        

As at	June 30, 2020		December 31, 2019
ASSETS
Current assets
Cash	$	168	$	257
Restricted cash		10		8
Trade and other receivables		163		158
Inventories		436		483
Prepaid expenses		5		8
Total current assets	$	782	$	914
Non-current assets
Derivative asset		55		—
Property, plant and equipment, net		757		670
Intangible assets		8		7
Investment in joint ventures		3		3
Total non-current assets	$	823	$	680
Total assets	$	1,605	$	1,594
LIABILITIES
Current liabilities
Trade and other payables	$	454	$	444
Other liabilities		33		34
Asset-based lending facility		8		8
Obligations to independent employee trusts		37		35
Total current liabilities	$	532	$	521
Non-current liabilities
Provisions		6		6
Pension benefits		9		7
Other liabilities		52		48
Asset-based lending facility		118		90
Obligations to independent employee trusts		471		472
Total non-current liabilities	$	656	$	623
Total liabilities	$	1,188	$	1,144
EQUITY
Common shares		512		512
Accumulated deficit		(95)		(62)
Total equity	$	417	$	450
Total liabilities and equity	$	1,605	$	1,594

Non-IFRS Measures Results

The following table provide a reconciliation of net income (loss) to adjusted net income (loss) for the period indicated:

	Three months ended June 30,				Six months ended June 30,
(millions of Canadian dollars)		2020		2019		2020		2019
Net income (loss)	$	—	$	1	$	(24)	$	44
Add back/(Deduct):
Other costs ^1		5		—		6		—
Realized gain from commodity-based swap		2		—		—		—
Transaction-based and other corporate-related costs ^2		2		2		3		2
Share-based compensation ^3		1		1		—		3
Remeasurement of employee benefit commitment ^4		—		(9)		(1)		(16)
Tariff related costs		—		7		—		20
Separation costs related to USS support services		—		2		—		7
Carbon tax expense		—		—		—		3
Batch annealing facility startup related costs		—		1		—		1
Property related idle costs included in cost of goods sold		—		1		—		2
Adjusted net income (loss)	$	10	$	6	$	(16)	$	66

^1	Other costs primarily includes the write-down of certain capital projects that are no longer being pursued by the Company, representing aborted construction in progress costs without future benefit to Stelco.
^2	Represents certain non-routine items that include, but are not limited to, professional fees, including those connected with the acquisition of the Option during Q2 2020 and Stelco Inc.'s withdrawn proposed senior secured notes offering during September 2019.
^3	Share-based compensation consists of costs connected with share options awarded to certain members of the Company's executive senior leadership team, during the period.
^4	Remeasurement of employee benefit commitment for change in the timing of estimated cash flows and future funding requirements.

The following table provides a reconciliation of net income (loss) to adjusted EBITDA for the periods indicated:

	Three months ended June 30,				Six months ended June 30,
(millions of Canadian dollars, except where otherwise noted)		2020		2019		2020		2019
Net income (loss)	$	—	$	1	$	(24)	$	44
Add back/(Deduct):
Finance costs		12		3		45		6
Depreciation		12		15		25		23
Other costs ^1		5		—		6		—
Transaction-based and other corporate-related costs ^2		2		2		3		2
Realized gain from commodity-based swap		2		—		—		—
Share-based compensation ^3		1		1		—		3
Finance income		—		(1)		(1)		(3)
Tariff related costs		—		7		—		20
Separation costs related to USS support services		—		2		—		7
Carbon tax expense		—		—		—		3
Property related idle costs included in cost of goods sold		—		1		—		2
Batch annealing facility startup related costs		—		1		—		1
Adjusted EBITDA	$	34	$	32	$	54	$	108
Adjusted EBITDA as a percentage of total revenue		8%		7%		6%		11%

^1	Other costs primarily includes the write-down of certain capital projects that are no longer being pursued by the Company, representing aborted construction in progress costs without future benefit to Stelco.
^2	Represents certain non-routine items that include, but are not limited to, professional fees, including those connected with the acquisition of the Option during Q2 2020 and Stelco Inc.'s withdrawn proposed senior secured notes offering during September 2019.
^3	Share-based compensation consists of costs connected with share options awarded to certain members of the Company's executive senior leadership team, during the period.

SOURCE Stelco

For investor enquiries: Paul Scherzer, Chief Financial Officer, [phone], [email protected]; For media enquiries: Trevor Harris, Vice-President, Corporate Affairs, [phone], [email protected]

Related Links

https://www.stelco.com/