Algoma Achieves First Steel Production at Unit One of EAF Project

Algoma Steel Group Inc. ASTL announced its first steel production at Unit One of its new electric arc furnace (“EAF”) project. This marks a significant milestone for the leading hot and cold rolled steel sheet and plate products producer. The achievement unfolded after more than 10 days of continuous electric arc testing and tuning, including individual and tandem tests of all nine Q-One transformer modules.

The achieved milestone is a testament to Algoma’s years of planning, effort and execution. The first arc and steel production has enabled the company to produce green steel with the potential to reduce carbon emissions by up to 70%, thus better aligning with customers’ needs.

Algoma’s state-of-the-art EAF project is the largest industrial decarbonization project in Canada. Although the company remains under pressure from trade uncertainty in the region, it does not shy away from realizing new growth avenues.

The steel produced through ASTL’s EAFs is delivered under the name “Volta,” which is expected to reduce its carbon footprint by up to 70%. Powered by Ontario’s clean electricity grid, Volta offers excellent performance while pushing out dramatically lower emissions.

ASTL stock has slumped 14.3% over the past year compared with the industry’s 23.8% decline.

ASTL’s Zacks Rank & Key Picks

ASTL currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Royal Gold, Inc. RGLD, Coeur Mining, Inc. CDE and Carpenter Technology Corporation CRS. While RGLD and CDE currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s current-year earnings is pegged at $7.47 per share, indicating a 42% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. RGLD’s shares have gained 18.3% in the past year.

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 69 cents per share, implying a 283.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 136.2%.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $7.28 per share, indicating a rise of 53.6% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have gained 139.1% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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